Project Report

of

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M/s XYZ ALLIANCE LLP

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For

Term Loan for Fine Dining Restaurant

Viz. Uncle’s Kitchen

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Registered Address-
XYZ
Restaurant Address-
ABC
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Prepared by-

XXX CONSULTANCY & SERVICES,

Address- xxx

Mob- xxxxxxxxxx

Email-xxxxx@gmail.com

Prepared by- XXX Consultancy & Services

 Project at a Glance
XYZ ALLIANCE LLP's

Uncle's Kitchen - Fine Dining Restaurant

FINANCIAL ASPECTS

Funds Required for the Proposed Scheme

(Rs. in lacs)
Particulars Rs.
I) Capital Expenditure :

a) Renovation (Drainage, Toilet & Kitchen, Water Storage) 18.50

b) Interior & Furniture Decorations & Kitchen Equipments 62.55
c) Materials- Cutlery, Linens etc 4.28

Total 85.33

Total Project Cost 85.33

Particulars Rs.
Own investments proposed to be made in
the form of cash- Margin money 21.33
(Inclusive of contribution for Loan requirements i.e. Margin Money)

Term Loan 64.00

Total Funds Required 85.33

Prepared by- XXX Consultancy & Services

 Major assumptions made in the preparation and analysis
of Project Report:
✓ All the figures are rounded of in lacs.
✓ The per unit costs is calculated and shown for your reference. While calculating
costs per unit conservatism principle is assumed.
✓ Thus, costs are calculated at the rates prevailing in the market.
✓ Moratorium period is assumed to be 6 months for which no repayment of
principle is possible. But we have shown repayment of interest during the period.
✓ Average DSCR comes to 2.37 which are above the limits as expected in financial
institutions like you i.e. above 1.50.
✓ Depreciation is provided at the rates prescribed as per Income Tax Act, 1961.
✓ Income Tax is calculated as per Income Tax Rate applicable for A.Y. 2019-2020.
✓ Rate of interest is assumed to be 12.00 % respectively for Term Loan as per the
banks recent loan disbursed norms.
✓ It is assumed that balance lying at the end of every year in cash flows is going to be
used to repay extra loan and also to invest in various investments both trading and
non-trading.
✓ For calculating NPV and IRR as a one of the tool for decision making we have
adopted 13.00% as a discounting rate and Return on Re- Investments
✓ For calculating Return on Investment Profit after tax and total investments are
considered.
✓ Interest to partners is charged @ 5% on opening balance of capital.
✓ Remuneration payable to partners is calculated as follows:
Upto 3 lacs book profit Rs. 2.70 Lacs fixed remuneration and 10% of book profit
remaining after deducting interest to partners and Rs. 2.70 lacs remuneration.

Prepared by- XXX Consultancy & Services

 Particulars of Project (In Brief)
Name of the Firm : M/s XYZ ALLINACE LLP

Constitution of business : Limited Liability Partnership Firm

Office Address Location : XYZ

Restaurant Location : ABC

Details of Designated Partners : 1. Mr. X - 50%

2. Mr. Y- 50%

Date of incorporation : 28th Nov 20XX

LLP Identification No. : AAR-XXXX

Food License No. : XXXXXXX date :20/12/20XX

Shop Act License No. : XXXX date : 28/11/20XX

PAN Details : ABCDEFGHIJ

Nature/ category of the Project : New project

Proposed Activity : Fine Dining Restaurant.

Background : Service Industry

Nature of Activity : Fine Dining Restaurant

Project implementation period : Approx. 6 Months

Prepared by- XXX Consultancy & Services

 About the Promoter & Management
The proposed business activity is to be started as a LLP (Limited Liability
Partnership Firm) registered under LLP Act 2008. The registered name of the LLP is XYZ
Alliance which is established on 28 November 20XX at XXX.
The firm is starting a Fine Dining Restaurant viz. Uncle’s Kitchen under the flagship of
the firm. In order to enable them to expand in near future w.r.t. branches, franchises
the promoters have formed an LLP to have proper management on board.
The restaurant is located at an elegant residential area in EFG city. The site at which the
restaurant is located was already run by one of the promoters hence the place is already
known to public at large.
The restaurant is located at XYZ which is owned by family members of Mr. X through
ancestor’s property holding. This property will be given on rent for continuous 7 years
beginning from 1st of February 20XX.

Basic Firm Details-

Name of the Firm : M/s XYZ ALLINACE LLP
Constitution of business : Limited Liability Partnership Firm
Office Address Location : XYZ

Restaurant Location : ABC

Date of incorporation : 28th Nov 20XX

LLP Identification No. : AAR-XXXX

Food License No. : XXXXXXX date :20/12/20XX

Shop Act License No. : XXXX date : 28/11/20XX

PAN Details : ABCDEFGHIJ

Details of Designated Partners : 1. Mr. X - 50%

2. Mr. Y- 50%

Prepared by- XXX Consultancy & Services

The brief profile of each partner is given as under-

1. Mr. X, aged 47, an engineer by qualification comes from a well-established family

having a family owned business under the name Patil Telecom which provides
consultancy and setup of Office Intercom, Office Automation services to corporate
clients. He was also running a restaurant under the same name Uncle’s Kitchen few
years back and was running very well but to some personal health issues it was
closed. The main advantage is the location at which the restaurant is going to be
opened is owned by his family and cost of occupancy, lease rentals etc. issues won’t
arise. Thus, it can be said that he has good knowledge of hotel & restaurant industry
and also being coming from a well-known family known in EFG will have extra
advantage.
Mr. X, being experienced person in the restaurant industry will look after the
overall operations, procurements and staff management of the firm.

His personal details are as follows-

Full Name - Mr. X
Date of Birth - 12/01/19XX
Qualification - B.E. (Electronics)
Residential Address - XYZ
Contact - M. XXXXXXXXXX
PAN - AAAAAAAAA

2. Mr. Y, aged 44, resides at nearby area at which the restaurant is located. He is
commerce graduate by profession. He and his wife runs a few successful businesses
in EFG viz. Mukundraj Financial Consultancy which is a reputed firm in financial
industry and Shraddha Shoppe dealing in various ladies accessories and handloom
materials. He has entered into partnership with Mr. X for diversification of his
business opportunities.
Mr. Y will be looking after the matters in relation to finance and overall
management.
Prepared by- XXX Consultancy & Services
 His personal details are as follows-
Full Name - Mr. Y
Date of Birth - 11/04/19XX
Qualification - B. Com.
Residential Address -B
Contact - M. XXXXXXXXX
PAN - BBBBBBBBB

Thus, it can clearly be stated that the partners have full advantage of
previous business knowledge and the experience which they have got
over the years which can be very useful to be successful in the
proposed business.

Prepared by- XXX Consultancy & Services

Introduction to Fine Dining Restaurant &Prix Fixe Menu
What Does Fine Dining Mean?

Fine dining restaurants, also referred to as white tablecloth restaurants, are typically higher
end and fancier restaurants. As opposed to casual eateries, cafes or family-style restaurants,
fine dining caters to an upscale clientele and provides the highest quality of food. A fine
dining restaurant has a formal atmosphere, is almost always a sit-down restaurant, and has
a fancier menu than most restaurants. Fine dining restaurants offer wine lists, and
sometimes sommeliers, to help you with your food and wine pairing. They also have dress
codes in most cases.

The first thing you will notice about a fine dining restaurant is usually the decor and
atmosphere. Fine dining restaurants are not places to be loud and are not places to go in
ripped jeans or tee shirts. Usually, jeans are prohibited or discouraged in fine dining
restaurants. Collared shirts are preferred for men, and some restaurants also require a
sport jacket or tie in order to be fully dressed. For ladies, skirts or dresses or other nice
clothing are recommended. While you may not always be turned away if you go to a fine
dining restaurant dressed inappropriately, some restaurants will be strict on the dress code
so it is always better to ask in advance and to err on the side of caution and look nice.

Fine dining restaurants also generally offer more exotic or interesting menu items. Foods
such as escargot (snails), beef carpaccio (raw beef), and foie gras (liver) may appear on the
menu, so if you aren’t an adventurous eater and don’t like these things, make sure you
understand exactly what it is you are ordering. The portions at a fine dining restaurant may
also be smaller than at a more casual or family style restaurant, but the food will generally
be of a higher quality.

Finally, fine dining restaurants tend to be on the more expensive side. An entree can cost
$20 or more, in some cases and in some cities, much much more. Wine lists at fine dining
restaurants can also feature expensive bottles of wine, so make sure you look carefully at
prices in a fine dining restaurant before making a reservation.

There Are Fine Tables If Not Fine Tablecloths

White tablecloths were once the calling card of any fine dining restaurant, but that norm
has largely faded away. If a restaurant chooses to skip tablecloths, which require a huge
amount of upkeep, there is usually a reason. It may be that the restaurant does not find
them in line with its aesthetic, or it is shedding traditional ideals so that it can forge its own
identity. Many restaurateurs now view tables as a significant part of the decor, and some
are making them with wood from area trees, stone from a local quarry, or other materials
they find better suits their concept.

The term fine dining brings to mind many images, from crisp white tablecloths to waiters in
tuxedos. Fine dining, just as the name suggests, offers patrons the very best in food, service,
and atmosphere. It is also the highest priced type of restaurant you can operate.

Prepared by- XXX Consultancy & Services

Keep in mind that you may bring in a lot of money operating a fine dining restaurant, but
you also will pay out more money than if you were running a casual diner or café.

There are three main areas of focus with a fine dining restaurant: The menu, service, and
atmosphere.

Menu

Many people choose fine dining restaurants for a special occasion, so the food must not
disappoint in either selection or quality. You don’t need a huge menu, but it should be
interesting, offering unique items that patrons wouldn’t find at any other restaurant.

A hallmark of today's fine dining is locally sourced foods. A top menu trend for almost a
decade, local produce, meats, and seafood offer superb taste and instant value.

Many fine dining restaurants offer prix fixe menus. These limited menus change on a daily
or weekly basis, and the selections often depend on locally sourced foods at their peak of
freshness. Your chef will expect to exercise creativity when designing dishes to fit with the
season.

All fine dining wine and liquor selections should be on the high end. No Bud Light is needed,
although a selection of craft beers will appeal to many of your patrons. Focus on top shelf
liquors and a wide selection of cognacs, brandies, and other after-dinner drinks.

Your wine list should complement your menu. Fine dining servers should be trained to
suggest a wine or beer choice for each menu dish.

Customer Service

Customer service in a fine dining restaurant is much more attentive than in casual dining
establishments. It goes well beyond taking an order and delivering food. Many fine dining
services require staff to do any or all of the following:

• Escort patrons to the table, holding the chair for women

• Escort patrons to the restrooms
• Crumb the table between courses
• Replace linen napkins if a patron leaves the table
• Explain menu items without notes
• Serve food directly on the plate at the table

The staff must be rigorously trained and ready to answer any and all questions customers
may have about a menu or a wine. They should also be ready to make menu
recommendations if asked.

No detail is too small to pay attention to in fine dining.

Prepared by- XXX Consultancy & Services

Atmosphere

Fine dining was once synonymous with snooty waiters and French names. Today, fine dining
can be in any type of setting and feature a wide variety of cuisine, from ethnic to organic,
local fare.

Standards you should always include in fine dining are fine china, glassware, and flatware.
Tablecloths are expected.

In these flexible days, the rest of the atmosphere is up to you. You can take the traditional
route with silver candelabras and rose centerpieces, or go for hip and trendy with a bold
color scheme and modern furnishings.

Music playing subtly in the background should reflect your themes, such as classical for a
traditional room or jazz standards for something modern. Lighting should be subtle, leaning
toward dim for a romantic ambiance.

Fine dining requires a great attention to detail, but it can pay off in the end when you have
reservations months in advance.

Ultimately, customers should feel that the money they spent at your restaurant was well
worth it.

Fine Dining Restaurant Staff

Staffing a fine dining restaurant is drastically different than many other restaurant types.
Those who work in a fine dining restaurant often see it as their career high point. Thus,
those looking to hire for a fine dining establishment should seek out those with years of
experience in hospitality. They have specialist staff for several matters such as

- General Manager

- Head Cook

- Other Cook

- Helper

- Waiter

- Captain

Prepared by- XXX Consultancy & Services

Presenting a Prix Fixe Menu

Prix Fixe is a French term that means "fixed price" and refers to a type of menu featuring a
pre-selected list of dishes at a set price. Prix fixe menus are most often found in upscale fine
dining restaurants. Utilizing a Prix fixe menu is an efficient way to feed a large crowd within
a certain price range.

Why Prix Fixe Menu Are Used

Serving a prix fixe menu during busy times can help keep a frantic kitchen under control. It
allows the cooks enough time to prepare for a busy shift and can help keep a restaurant
running smoothly on traditionally busy days. A prix fixe menu can also be run alongside an
establishment's regular menu, to promote certain specials, especially seasonal ones.

They Are Good Weeknight Promotions

A prix fixe menu can also double for a weeknight promotion. For example, a restaurant may
try offering a pre-selected meal at a set price every Monday night as a way to bring in
business during an otherwise slow time of the week.

Keys to Success
To succeed in this business, you must:
✓ Create a unique, innovative, entertaining menu that will differentiate us from the
rest of the competition.
✓ Due to competitive market we must ensure to maintain cost and quality in
balance thus we need to control costs at all times, in all areas and implement a
conservative approach to growth policy.
✓ Selling the types of products that are of the highest quality, as well as keeping the
customers happy will be our priority. We shall Provide 100% satisfaction to our
customers and maintaining the level of excellent services among other
competitors.
✓ Encourage the two most important values in fast food business: brand and image,
as these two ingredients are a couple of main drivers in marketing
communications.

Prepared by- XXX Consultancy & Services

Marketing Assessment

Youthful and fresh surroundings

In this ever changing and ever demanding world the business needs to cope with huge
satisfaction from its customers. This satisfaction in food industry especially in restaurant
takes place with outlook of dining hall and the surroundings. Newer and unique the
ambience the better will customers will feel. Thus we have appointed a team of architects,
contractors to advice us on unique interior and décor so that customers will automatically
in awe of us. The best part of dine starts with great ambience and we will just provide that.

Quality food
Of course, in restaurant and hotels the food is the uttermost important aspect in business.
Being experienced promoters and well aware of food trend that’s currently been at EFG
area we will 100% assure exquisite & quality food to our beloved food lovers.

Open everyday
Our unique food menu will always be there to cater the foodies which will be opened
everyday from 07 am to 11 pm. We wish to serve from breakfast time to dinner meals.

Variety, variety, variety

A different selection of various new food items, meals will be featured once in a week on
specific day which will attract new as well as old customers to taste the distinguished items.

Restaurant Locations and Facilities

The dining restaurant is centrally located will all the vehicles access. The main advantage
being the only within the vicinity of 500 meters the famous Shoppers Stop and YPC City Mall
is located wherein there is almost 5000 footfalls in weekdays and more than 10000 on
weekends. There are only 2 to 3 fine dining restaurants in that area where the waiting is as
long as half an hour to 45 minutes will full parking. Ours being a new entrant will definitely
fetch most of the customers to taste something new and unique food which won’t be
available at other places. We have all types of seating arrangements ranging from 2 seaters,
4 seaters fine dines as well spacious 6 to 8 people group dines. Also we will be having
special AC room available luxury service.

Prepared by- XXX Consultancy & Services

Tentative Details are as under-
Location of the Project and its Detailed Information

Location Details - The proposed find dining restaurant is going to be operated at- ABC

The nearby residential areas around this location with aggregate population of more
than 1.5 Lacs are-
YRS Colony entrance (elegant residential area) 500 Mts.
Shivaji Park (elegant residential area) 750 Mts.
LAKHMIPURI (residential area) 2.3 Kms.
UDAY park (elegant residential area) 2.0 Kms.
Above-mentioned areas Collectively occupy more than 50,000 population which falls
under higher middle class and affluent category who dine at restaurants at least once a
week.
Number of tables at our restaurant and total occupancy therein-
Occupancy per table No of Tables Total Occupancy (100% capacity)
4 9 36
6 7 42
About Product Pricing and share in total revenue -

Name of Product Price (per person) % of Total Revenue

Breakfast Rs. 60 7%
Lunch Rs. 250 33%
Dinner Rs. 350 51%
While we will be serving to all class of peoples with all types of meal viz. Breakfast, Lunch
and Dinner on an average per person will be charged R. 60 to Rs. 350.

Two important aspect here we have to mention are-

a. % of Material consumed to revenue is assumed to be 40%

b. % of Labour served to revenue is assumed to be 20%

In Total overall 63% of Variable cost will be incurred for per person receipt.

Prepared by- XXX Consultancy & Services

Centralised Kitchen & Outdoor Catering

The promoter Mr. X also owns ancestors house nearby to the main restaurant which have
empty space of around 2000 sq.ft. which will be used as centralized kitchen. This will help
the main restaurant to save space as well as ready to serve sudden increase in customers or
for outside food catering.

Since this kitchen will be specifically used for food storage, food preparation in near future
we can also start outdoor catering service to cater marriage functions, corporate events,
birthday parties wherein the prepared food can be delivered directly at the various
locations.

Online Food Delivery Channel partners

Zomato, Swiggy the main food delivery channels are currently serving 1 million order per
day in India. In EFG itself more than 200+ restaurants, food outlets have been registered by
them wherein top 10 restaurants serve daily 20,000 rupees of cuisine through them. We
have predicted that collectively Rs. 11,000 per day order will itself recover our break even.
Thus, through proper food delivery channels also we can serve esteemed customers.

Customized Food

Considering the various types of needs customers, we are trying to enter into an idea of
delivering customized food to following group of people-

• Age - Youngsters, single, currently enrolled in college and high school.

• Family unit - We will be serving ideal food menu to appeal to families (young
families) with children.
• Gender - We will target both sexes, with a slight skew for males due to their lower
attention to dietary concerns.
• Income - We will appeal to the medium income individuals and to all in the lower
medium income bracket.
Our concept will have very broad appeal. It is our goal to be the hip destination for the multi
food cravings.

Prepared by- XXX Consultancy & Services

Market Segmentation

Trends in Food Service Retail at EFG city

As explained at location para, the main customer based will be of higher middle class and
from affluent area. Thus, are target will be to deliver what we have promised them and
hence we will be entering into this market with unique marketing ideas such as live
barbeque and tandoor, open dine, unique culinary display windows, great ambience etc.
EFG city is a big hub for food and hotel industry. The people of EFG are also recognized by
EFGkars’ that are so much foody so a sperate EFGi taste food is available at any restaurants
all over India. The uniqueness of being its masalas, chutneys and other ingredients make all
local food tasty that an average customer dine at least three times in a month and prefer
dine at evening or night with family. Thus we will have different la carte to offer them every
time they come to dine at us.
The huge parking space in front our restaurant will be a bigger advantage and being the
owners or property there wont be any hurdle from other shop owners.
We will also be serving to working class people in the morning and afternoon sessions. Thus
we will also offer breakfast items along-with whole day cafeteria store available to them.
In few months of time exactly opposite of our restaurant the huge EXY Apartment project
will get completed wherein more than 100 flats and commercial shops will be ready
wherein average daily footfalls of 2000 will definitely local customers.

Prepared by- XXX Consultancy & Services

BEP analysis (for first year for 330 Days)

No Details Approx. Value Ratio Per

day
1 Revenue (Sales for First Year) 88,19,800 100% 26,700
2 Variable Costs 55,56,480 63% 16,800
3 Contribution / PV Ratio - (S-V/S) 32,63,320 37% 9,900
4 Fixed Cost (inclusive of Interest, Depreciation) 13,82,319 4,200
5 BEP (in Sales) 37,36,000 11,300

Salary & Wages schedule (approx.)

Particulars No of Salary Monthly Annual Per day

person per head Salary Salary per person
wages
General Manager 1 10,000 10,000 1,20,000 370
Total 1 10,000 10,000 1,20,000 370
Meal Section
- Head Cook 2 25,000 50,000 6,00,000 925
- Other Cook 2 18,000 36,000 4,32,000 667
- Helper 2 5,000 10,000 1,20,000 185
- Waiter 5 6,000 30,000 3,60,000 222
- Captain 2 8,000 16,000 1,92,000 296
Total 13 62,000 1,42,000 17,04,000 2,296
Total 14 72,000 1,52,000 18,24,000 2,666

Interest and remuneration to Partners

Interest to partners is charged @ 5% on opening balance of capital.

Remuneration payable to partners is calculated as follows:

Upto 3 lacs book profit Rs. 2.70 Lacs fixed remuneration and 10% of book profit remaining
after deducting interest to partners and Rs. 2.70 lacs remuneration.

Prepared by- XXX Consultancy & Services

Product Mix

Breakfast
No Menu Rate For 2 persons
1 Tea/ Coffee 20 40
2 Idli/ Vada/ Pohe/ Other 40 80
3 Water 20 20
Total Rs. 140

Veg 1
No Menu Rate For 2 persons For 4 persons
1 Roti 25 50 100
2 Main Course 190 190 380
3 Rice 120 120 240
4 Dal 100 100 200
Total Rs. 460 Rs. 920

Veg 2 (inclusive of Soup, starter etc)

No Menu Rate For 2 persons For 4 persons
1 Soup 90 180 360
2 Starter 160 160 320
3 Roti 25 50 100
4 Main Course 190 190 380
5 Rice 120 120 240
6 Dal 100 100 200
Total Rs. 800 Rs. 1600

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 Non Veg 1
No Menu Rate For 2 persons For 4 persons
1 Roti 25 50 100
2 Main Course 250 250 500
3 Rice 120 120 240
4 Rassa 50 50 100
Total Rs. 470 Rs. 940

Veg 2 (inclusive of Soup, starter etc)

No Menu Rate For 2 persons For 4 persons
1 Soup 90 180 360
2 Starter 180 180 360
3 Roti 25 50 150
4 Main Course 250 250 500
5 Biryani / Rice 190 190 380
6 Rassa 50 100 100
Total Rs. 950 Rs. 1850

* The price of the products are taken from regular menu cards of various restaurant that are
providing fine dining services all exclusive of taxes.
(you can also refer the actual bills/ invoices attached of others for reference)

Prepared by- XXX Consultancy & Services