Business Plan & Cash Budget for

Dawat India

Business Profile

Dawat India is a restaurant which aims to serve and deliver best Indian cuisine available in New
South Wales. The restaurant will start its operations at Rouse Hill shopping Centre. Since the

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majority of the population near the restaurant location is Indian, the restaurant will attract a lot of
customers in a short span of time.

The restaurant is owned by 4 people from different specializations and all are from same family.
Yun has a Master’s degree in Finance and accounting, her sister works in IT and her father and
mother owns another restaurant and is familiar with how to operate a restaurant business.
Restaurant is registered as a Private limited company.

Product and Market Analysis

Dawat India will provide combos and famous dishes from different regions in India.
● Expected sales per day: approx. $3000 (when stabilized)
● Opening Hours: 10am - 10pm (12 hours total)
● Selling price per dish: $8-$18
● Estimated customers per hour: 12 customers
● Estimated revenue in Year 1 @$15.00 x 12 x 12 hrs/day x 365 days = $788400

Product Menu Highlights

North Indian South Indian Western Indian Fusion
Tandoori Chicken Cheese Dosa Tandoori Chicken Pasta
Kadhi Chawal Veggie Garlic Uttpam Chilly Pakora Basket served
with chessy dip
Amritsari Kulcha Fried Rava Idli Ras Malai Cake

Customers can choose from a wide variety of food item including the above highlighted ones.
The restaurant will also have the option of home delivery and pick up service if the customers
wish to order food online. According to market research, the similar kind of restaurants in the
area does not offer such wide variety of food options and therefore the restaurant will attract a lot
of customers from different cultures.

Customers
The main target customer group will be those who want to enjoy traditional Indian food along
with their family members. The restaurant also has a special play area for kids so people can
have a good time with their family members.

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Competitors
There are several Indian restaurants operation near the same location, however, the top
competitors are Chatkazz, Kababiya and Maya ka Dhaba. All these restaurants have limited
items on their menu as they only serve food from one state or region. For example, Chatkazz
mainly focuses on Indian street food, whereas, Maya ka Dhaba only serves north Indian food.
Dawat Indian has a vast menu as compared to its competitors.

Point of Differentiation
1. Price – Other similar restaurants charge around 20 dollars per dish, however, Dawat India
plans to keep the average price at 15 dollars per dish which would attract more
customers.
2. Musical Nights – Along with great food, the restaurant will organize musical nights for
its customers including Sufi music night, folk music night and Karaoke.
3. Weekend Bonanza – The restaurant will offer flat 20 percent discount to its first 15
customers on weekends which will attract a lot of customers.

Cash Budget

Jul/$ Aug/$ Sep/$ Oct/$ Nov/$ Dec/$

Cash
Inflows

Share 70000 0.00 0.00 0.00 0.00 0.00

capital

Sales 57,250.00 60,100.00 73,050.00 80,820.00 60,350.00 62,630.00

receipts

Total 127,250.00 60,100.00 73,050.00 80,820.00 60,350.00 62,630.00

Cash
Inflows

Cash
Outflows

Material 8800.00 9100.00 11,100.00 11,500.00 11,020.00 8,300.00

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Wages 18000.00 18000.00 18000.00 18000.00 18000.00 18000.00

Overhea 9050.00 9050.00 8,210.50 8,120.50 7,920.50 7,920.50

d

Tax 5885.00 6586.25 9828.36 11897.87 6437.61 7812.61

Non- 5340.00 0.00 0.00 0.00 0.00 0.00

current
assets

Total 47075.00 42736.25 47138.86 49500.36 43378.11 42033.11

Cash
Outflows

Net Cash 80,175.00 17,363.75 25,911.14 31,319.64 16,971.89 20,596.89

Flow

Balance 0.00 80175.00 97,538.75 123,449.89 154,769.53 171,741.42

brought
forward

Balance 80175.00 97,538.75 123,449.8 154,769.53 171,741.42 192,338.31

carried 9

Dawat Indian will be formed on 1 July 2020 with a share capital of $70,000. $5340 was
immediately invested in non-current assets, leaving $64660 cash.

Sales for the six months are estimated to be $394,200, The company anticipates the following
receipts of cash over the six months from sales:

Cash receipts

July $57,250.00

August $60,100.00

September $73,050.00

October $80,820.00

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 November $60,350.00

December $62,630.00

Total $394,200.00

●      Share Capital
To cover the cost of materials, overheads and equipments, our start-up funds is set out to be
$70,000, this is provided by owner’s 4 family members who are also partners in the restaurant
and it is registered as a company.
●      Non-current assets
The company will have to buy some fixed assets for production process such as coffee machine,
dough maker and some other equipment at the first month which will cost about $5340.
It is estimated that the non-current assets have a 10- year life, and will have no value at the end
of that time. The company has decided to depreciate these assets using the straight-line method
of depreciation. Therefore, the depreciation charge per year will be $5340/10 years=$534 per
year.
●      Materials
According to price and cost analysis above, the average direct cost per unit is about $0.80.
●      Wages
Our business has 5 staff members, including 1 cashier, 2 deliver assistant and 2 waiters. It costs
about $18,000 per month.
●      Overhead
Our overheads include electricity, water, rent and advertising. Details for each month are in the
following table. The advertising expense will decrease in the third month.
●      Tax rate
The annual tax rate applicable on a company of this size is about 27.5% and that is used in the
budget.
●      Cash Flow trend
From the first month, we start to get profits and our business would be in high demand under our
marvelous marketing plan

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Overhead Jul Aug Sep Oct Nov Dec
$ $ $ $ $ $

Electricity 500.00 500.00 500.00 500.00 500.00 500.00

Water 250.00 250.00 250.00 250.00 250.00 250.00

Advertising 800.00 800.00 700.00 600.00 500.00 500.00

Rent 7500.00 7500.00 7500.00 7500.00 7500.00 7500.00

Total 9050 9050 8950 8850 8750 8750

Statementofcomprehensive income for the six months ending

30 December 2020 for Dawat India

Income Statement $
Sales 394,200.00
Cost of sales
Materials 59820.00
Wages 108000
Gross profit 226380.00
Depreciation 534.00
Overheads 50272.00
Profit before tax 175574.00
Tax (27.5%) 48282.85
Profit after tax 127291.15
Other comprehensive income 0.00
Total comprehensive income before the year 0.00