IED REPORT On DECCAN CUISINE

(B PLAN) FMG 19 A Group 6

Submitted to Prof. Anita T. Lal

Submmitted by: Saurabh Arora (191053) Shanthan Banala(191054) Shounak Mondal(191055) Soumya Sachdeva (191056) Sulabh Jain (191057) Surbhi Grover (191058)
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Due Date : 08.03.2011 Date of Submission : 08.03.2011

Tarun Gupta (191059) Nikhil Valecha (191060) Vikas Mudgal (82044)

Executive Summary
Deccan Cuisine Restaurant is a 80 seat fine-dining restaurant. We are pleased to offer Delicious, Authentic halaal Hyderabadi food right in the heart of New Delhi. The major items include Hyderabadi Biryani, Baghare baigan, Sheek Kabab, Double ka meetha, etc. we offer the same tasty and traditional Hyderabadi dishes right here in New Delhi. The location for our restaurant Deccan Cuisine is Greater Kailash 1 near Lady Shri Ram College. The location is declared as commercial Land by Delhi government and the rent is also lower Rs 150-175 per sq. feet as compared to other areas in GK-1. The area is in need of a warm and friendly place with excellent food. A place where you always know you will get the best of everything, comfortable furnishings and decor with soothing warm tones. The major opportunity that was noticed in this sector was that majority of existing restaurants which serve Hyderabadi cusine in New Delhi are not successful. One of the main reasons behind this is that most restaurants are not able to provide the quality of Hyderabadi food as promised because they use chefs which are not of Hyderabadi origin. This is the point where we decided to differentiate by using a expert chef team from Hyderabad . The target market of our project would mainly be the middle and upper middle class. As, the Target Segment for our project is families who dine out and willing to spend more than Rs. 500 for 2, such a location is chosen which is surrounded by residential area so as to have a direct impact on the target segment. Also GK being a highly profiled area in Delhi where most of the people are businessman, the purchasing power and dine out frequency of the families living their also justifies the selection of such a location.
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The restaurant will be open six days a week. We will offer special theme nights to attract new customers to it. The restaurant will be fine dining in a cozy atmosphere with warm colors, fresh flowers, soft music, candles. This will contribute to a sense of community and give new artists a chance to show their work for a diverse clientele. The service will be relaxed, very friendly and correct. We will hire the best people available, training, motivating and encourage them, and thereby retaining the friendliest most efficient staff possible. Our management team is comprised of fresh MBA graduates and individuals whose backgrounds consist of 20 years experience in food, restaurant and hotel, catering, management.

The Business
The opportunity: The major opportunity that was noticed in this sector was that majority of existing restaurants which serve Hyderabadi cusine in New Delhi are not successful. One of the main reasons behind this is that most restaurants are not able to provide the quality of Hyderabadi food as promised because they use chefs which are not of Hyderabadi origin. This is the point where we decided to differentiate by using a expert chef team from Hyderabad .Thus we provide a complete Hyderabadi cuisine , with a fine dining experience. Company Summary : Gabri's Lounge & Restaurant will feature an outstanding Hydeerabadi menu with a touch of Southern Indian influence in an upscale and cozy atmosphere. The menu is inspired from different cuisine's specialties and will appeal to a wide and varied clientele. We will offer a three course business lunch' prix fixe and a three course dinner prix fixe in addition to the regular menu. We will be open 7 days a week. Serving lunch from 11:30 AM - 3:30 PM. And dinner between 5 PM - 11 PM. We will be open on New Years Day, Thanksgiving Day and Christmas Day to increase customer attraction. We will be open on large holidays such as Memorial Day, Fourth of July and Labor Day weekend. These are three big weekends 'down the shore' that brings many tourists to the area. The restaurant will have paintings and drawings from some of the areas most notable new artists. Once a month the lounge will feature a new artist and their work. This will give the
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art community an opportunity to show their work in a friendly and exciting atmosphere. We will send out special invitations for the opening night and attract many people and newspapers. The showing will only take place in the lounge so we can still seat people in the restaurant. Mission: Deccan Cuisine is a great place to eat, combining an intriguing atmosphere with excellent, interesting food. The mission is not only to have great tasting food, but have efficient and friendly service because customer satisfaction is paramount. We want to be the restaurant

choice for all families and singles, young and old, male or female. Employee welfare will be equally important to our success. Everyone will be treated fairly and with the utmost respect. We want our employees to feel a part of the success of Decann Cuisine and Restaurant. Happy employees make happy guests. We will combine menu variety, atmosphere, ambiance, special theme nights and a friendly staff to create a sense of 'place' in order to reach our goal of over all value in the dining/entertainment experience. We want fair profits for the owners, and a rewarding place to work for the employees. Competitive Advantage: Deccan Cuisine will leverage its two-pronged competitive edge to quickly gain market share. The competitive edge consists of an experience focus (ensuring that the customer's experience is top notch) and offering an authentic Hyderabadi cuisine dining-out alternative. Deccan Cuisine marketing effort will focus on communicating the message that it offers a convenient, healthy dining experience. This will be accomplished through a variety of ways to be detailed in the Marketing Plan section. Deccan Cuisine sales strategy will be an effort to convert potential and first-time customers into long-term customers. Most importantly it will use chefs from Hyderabad itself to recreate the same taste of Hyderabadi cuisine in New Delhi.

Management Team
The restaurant structure will be limited liability Partnership and all the nine partners have contributed equal amount as Owners Capital. They all will have the same standing in the Business. All nine of them are fresh MBA graduates with passion and zeal to work. Shanthan Banala will function as General Manager and Mr. Saurabh Arora will function as Managing director. All the major decisions will be taken by the owners collectively. An executive chef will be hired to look into day to day operation of the restaurant and all the other departments will be steered by: Mr. Sulabh Jain will work as the Marketing head for the company. Mr Shounak Mondal will work as financial head.
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Mr Tarun Gupta and Mr Nikhil Valecha will look into the decisions pertaining to Operations of restaurant. Mr. Vikas will steer the legal department. Ms Surbhi will head the HR department of the company. Ms. Soumya will head the Logistics department

Organisation Structure
The restaurant will start out as a Limited Liability Partnership (LLP) corporation. The restaurant structure will be limited liability Partnership and all the nine partners have contributed equal amount as Owners Capital. They all will have the same standing in the Business. The restaurant is structured to have checks and balances in an organized chain of command. The business belongs to the owners and they will make all major restaurant decisions. They hire a general manager and an executive chef to control the day to day operations. A front of the house manager stays on the floor and keeps communication directly with the general manager. Shift leaders are chosen by the front of the house managers for their leadership qualities and experience.

Ownership

Managing Director
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Exexutive Chef Front of the House Shift Leaders

Ownership Corporate or local owners are ultimately in control of the restaurant. They are the ones who stand to make or lose the most due to the success or failure of the restaurant. The owners usually are responsible for hiring the general manager and may also choose the executive chef. There is an expectation ownership's policy information will be passed all the way down the chain of restaurant command. General Manager
Legal Department Finance Department Operations Department HR Department Logistic Department

The general manager is responsible for the day to day decision-making of the restaurant. They are responsible for scheduling and payroll paperwork as well as sales accounting and money counting. The general manager does most of the restaurant's hiring and firing. The general manager must also stay in regular contact with ownership to both relay information and request guidance. General managers often work the most hours in the restaurant because they are key holders that work from open to close. Executive Chef An executive chef is the manager of the entire kitchen. They are responsible for the products coming into the kitchen from vendors and suppliers. Executive chefs report directly to the general manager about inventory and ordering. The executive chef is also responsible for all the meals that leave the kitchen. Executive chefs are usually consulted in the interview process for all kitchen help. They take responsibility for all the decisions made in the kitchen regarding everything from quality control to nightly specials. Front of the House The front of the house manager is an important tier in the restaurant chain of command. The term "front of the house" refers to not only the dining area but all parts of the restaurant excluding the kitchen. The job of the front of the house manager is to assist the general manager and the executive chef in customer relations and managing front of the house
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employees. They are charged with choosing and monitoring the performance of shift leaders. They are also responsible for the appearance of the staff and the restaurant. Shift Leaders Shift leaders are the last level of management in restaurants. These are usually the people in each front of the house station with the most experience. A shift leader is usually chosen for host station, bar, busing station and among the servers. Their job is to handle small problems and decisions that need to be made through the course of service. They should stay in regular contact with the floor manager for customer problems and employee disputes. Legal Structure: LLP: A corporate business vehicle that enables professional expertise and entrepreneurial initiative to combine and operate in flexible, innovative and efficient manner, providing benefits of limited liability while allowing its members the flexibility for organizing their internal structure as a partnership A Limited Liability Partnership will be incorporated from the address below : Office of Registrar, Ministry of Corporate Affairs, 3rd Floor, Paryavaran Bhawan, CGO Complex, Lodhi Road, New Delhi-110003.

Industry Analysis
According to National Restaurant Association of India (NRAI), the Indian restaurant industry is growing at a rate of 5 6% per annum with revenues amounting to sizeable Rs. 43,000 crores (organised and unorganised industry). 1. The relatively new organised segment is estimated to be between Rs.7000 8500 crores. The industry does not get share of encouragement or support either by way of legislation or enabling infrastructure.

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2. The organised segment is growing much faster than the unorganised, approximately at 20-25 per cent per annum. 3. The restaurant industry is a substantial source of tax revenue to the government. It has been estimated that additional tax revenue of Rs. 4200 crores can be generated by converting the unorganised segment to the organised segment. 4. The organised segment of the restaurant industry (around 16- 20 per cent of the total industry) is higher than many other industries. 5. According to NRAI, roughly 50 per cent of urban population regularly eat out at restaurants, and 25 per cent of them mention eating out as one of the most enjoyed activities. 6. Indian restaurant industry is bogged down by a complex maze of licensing and taxation laws which differ from state to state. There are issues of infrastructure, including cold chain, power and water supply, besides shortfall of quality, trained and employable manpower. Trends in the industry 1. Shopping malls, medical institutions, office complexes are some of the new emerging locations that are a good opportunity for the organised restaurant segment. 2. The number of food courts is poised to grow at a rate of 35- 40 per cent. 3. Expansion into tier II and tier III cities is gaining favour amongst restaurants. 4. Restaurant business in India expected to hire 20 million people by 2015. 5. By 2015, the organised sector is expected to be 45 per cent, generating revenue of 28,000 crores out of the total projected 62,500 crores. 6. The fine dining experience is becoming extremely popular in India, particularly in the larger cities. With an aspirational lifestyle today, Indians are well travelled and getting exposed to the new cuisines and culinary trends. Target market The market can be divided into two market segments, families and individuals. Families will comprise the majority of dinner-time business with individuals making up the majority of lunch time business. The lunch business is driven by individuals. Many go out to lunch to get out of the work setting. Others have business meetings at lunch. This creates a large market of potential customers that is especially attractive.
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Deccan cuisine will be operating within the fine dining segment of the restaurant industry. It will be competing against other segments within the industry such as fast food as well as more traditional sit down restaurants. The full-service restaurant market size in India is expected to be Rs. 281220 crores by 2012. Customer buying patterns typically revolve around several different factors:

Location: The restaurant is located near to work or home. Convenience: People eat out as it is quicker than preparing a meal themselves. Factors of convenience relative to sit down restaurants are the time it takes to be seated, served, and the hours of operation.

Quality: The menu items must meet minimum levels of quality for people to be willing to spend money on the food, particularly when there are so many different options available.

Competitor Analysis Deccan Cuisine faces competition from a variety of competitors:

Fast food: Offers the convenience of fast service. The food product is not competitive, but people are often willing to sacrifice quality for convenience. Take-out: Take away service allows a customer to enjoy already prepared food in their home. Sit down dining: For customers that have the time to have a leisurely meal. Food service takes longer and the menu options are more extensive. Those restaurants serving Hyderabadi cuisine are the direct competitors of Deccan Cuisine.

Sandwich/ bakery shops: Considered to be part of the fast food segment, they are
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indirect competitor of Deccan Cuisine. This competition comes primarily during lunch hours.

Grocery markets: Serving prepared foods.

Competitors There are approximately 80 restaurants (organised segment) in GK 1, Kailash Colony.

A. The only direct competitor close-by is Zaffran, in GK 1. B. The prominent indirect competitors are

Hyderabadi Biryani House, Hauz Khas Bagels and Brownies, Urban Pind, Yo! China, Moti Mahal Deluxe, Cafe Turtle, Mochas, Subway, Pizza Hut, Cafe Diva, Yum Yum Dimsum, Mad Over Donuts, Tazza, Sanjha Chulha, The Royal Kitchen, Golden Fiesta and others at GK 1 and Kailash Colony.

Advantages Because of less direct competition there is a gap in consumer market (as confirmed by our survey) and there is a market demand for authentic Hyderabadi cuisine. As Delhi is now becoming the food capital, with an array of cuisines and culinary treats, Deccan Cuisine can achieve a distinct place. Competitive Edge Deccan Cuisine will leverage its two-pronged competitive edge to quickly gain market share. The competitive edge consists of an experience focus (ensuring that the customer's experience is top notch) and offering an authentic Hyderabadi cuisine dining-out alternative. Deccan Cuisine marketing effort will focus on communicating the message that it offers a convenient, healthy dining experience. This will be accomplished through a variety of ways to be detailed in the Marketing Plan section. Deccan Cuisine sales strategy will be an effort to convert potential and first-time customers into long-term customers. Deccan Cuisine will rely on a two part competitive advantage to help it become the premier fine dining

Experience: With so many restaurants and prepared food being offered at grocery markets, the customer experience becomes extremely important as an effective way of distinguishing offerings. When a customer has a good experience at a restaurant, there is a significant chance that they will become a repeat customer. It is this experience that remains in the customer's mind well after they have consumed all of their food. This memory is what is communicated to their friends and colleagues.

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Authenticity of the cuisine: it can become an important factor in gaining favour with the target market segment. Also, in absence of direct competition, Deccan Cuisine has the early movers advantage.

OPERATIONAL PLAN
STAFFING: The labour needs depends on the capacity of the restaurant and in our case we have a sitting capacity of 50 in initial phase but can be maximised up to 80 at later stages depending on the demand. Thus currently considering a capacity of 50 people the following Labour demand is estimated.

Head Chef Chefs Trainee Staff Waiters Unskilled Labour

: : : : :

1 2 4 8 4

The head chef is required at peak hours while the rest of cooking is done by Support Chefs. The trainees generally act as supports to the main chefs helping in preparation of curries, etc. The unskilled labour is required for jobs like washing, cleaning and door keeping or security. The Labour supply is not an issue in the area as there is already an established market nearby
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with several restaurants. Also industrial contacts are very helpful in labour arrangement and also there are several labour contractors in the area from which we can get the required labour. TRAINING: IN HOUSE TRAINING: There will be an in house training for trainee staff who get on the job training in cooking by assisting the head and assistant chef in preparing the dishes. It will be a continuous process.

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CERTIFIED TRAINING PROGRAMMES: All the employees who will come in touch with the customers will be given training in customer service. And for waiters in particular a certified training program like Beginners Waiter will be organized.

DAILY OPERATIONS: The restaurant is open all round the year, it is open from 12.00 noon to 11 p.m everyday.
a. Operation managers duties and responsibilities include managing daily operations,

and organizing the use of materials and employee resources. They are responsible for generally managing the facility.
b. They must ensure that all materials used in food preparation and serving are working

properly.
c. They may order new refrigerators, cookers or blenders or order repair services. d. They often play an active role in marketing the restaurant and devising promotional

programs.
e. Operation managers interact with customers and vendors and ensure that their needs

are met in a timely and satisfactory manner.

f. They are responsible for managing inventory and keeping financial records of

purchases and sales and work with the human resources department to train, develop, hire, retain and fire employees. QUALITY CONTROL:
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General: We ensure that we meet all the rules and regulations related to the safety and health of our clients. We work within the frame work of the law of the land. Readiness: The manager on duty checks to ensure that entire outlet has been properly washed and cleaned in the morning before the operations begin. This goes for the kitchen as well as the customers area.

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Testing: Another important quality control measure performed by our manager is to check and ensure that the critical food areas have been checked for proper temperatures and taste. This testing maintains consistent quality and taste for our customers and it helps us to identify a problem so that it can be rectified well in time. Hygeine: Extra care is taken to ensure proper hygeine both while preparing as well as serving the food. Ingredients- (Procurement): We use the highest quality of raw material for our preparations and do not compromise on any conditions. Further we keep a check to ensure the nutritious value of the ingredients. CUSTOMER SERVICE: Customer service skills are an important aspect of a restaurant's image. Excellent food can never quite compensate for poor service. There are several ways in which customer service skills can be applied in a restaurant setting. If restaurant employees anticipate customer needs, provide friendly and prompt service, and work hard to accommodate special orders, customers will appreciate their efforts. The important factors that influence customer service are Being Proactive:

Bringing drink refills before a customer asks, and ensuring that the customer has all necessary condiments and extra napkins are all ways to provide better service. A family with children may want a booster seat. A couple without children may not want to be seated right next to a family with three children and a toddler. If it is a hot day, bring ice water immediately, so the customer doesn't have to wait. Above all, it is important to try to anticipate the customer's needs and bring them anything that might make their visit to the restaurant more comfortable.
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Being Friendly

Being served by a nice waiter or waitress can greatly improve the experience of the customer. Greeting each new customer with a smile is an important customer service skill in a restaurant.

Maintaining a cheerful attitude and responding to requests promptly is another great way to create happy customers. It should be our goal is to make the customer feel at home, which we can do by simply being friendly.

Remembering Special Orders Some customers have special dietary needs or unique tastes. Whatever the reason, if the customer makes a special request, it's important to make sure it gets fulfilled.

Location
Demographics The location for our restaurant Deccan Cuisine is Greater Kailash 1 near Lady Shri Ram College. The location is declared as commercial Land by Delhi government and the rent is also lower Rs 150-175 per sq. feet as compared to other areas in GK-1. As, the Target Segment for our project is families who dine out and willing to spend more
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than Rs. 500 for 2, such a location is chosen which is surrounded by residential area so as to have a direct impact on the target segment. Also GK being a highly profiled area in Delhi where most of the people are businessman, the purchasing power and dine out frequency of the families living their also justifies the selection of such a location. Also such a location is beneficial at later stages if we start a take away or home delivery service as it is near to the residential areas.

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The areas nearby to our location are the Kailash Colony and GK-1 N-block market where families do go for the purpose of shopping, etc. Thus these families could also be potential customers for us as there are no Hyderabadi cuisine restaurants in these markets.

Lease and Rental Rates The rental rates in GK-1 vary from location to location. The rental for markets like M-block and N-block is Rs 200 per sq. feet. But there are certain locations which are declared as commercial land by Government which have lower rental as compared to these big markets. The rental for these areas is Rs.150-175 per sq. feet depending on the location. The location which we have chosen for our project is also a commercial land of around 2500 sq. feet with a rental of Rs. 160 per sq. feet. The lease period for our different projects is different as for godowns it may be higher than that for a restaurant which is generally 3 to 5 years. The lease period for our project is 3 years. Labour Needs & Supply The labour needs depends on the capacity of the restaurant and in our case we have a sitting capacity of 50 in initial phase but can be maximised up to 80 at later stages depending on the demand. Thus currently considering a capacity of 50 people the following Labour demand is estimated.

Head Chef Chefs Trainee Staff Waiters Unskilled Labour

: : : : :

1 2 4 8 4
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The head chef is required at peak hours while the rest of cooking is done by Support Chefs. The trainees generally act as supports to the main chefs helping in preparation of curries, etc. The unskilled labour is required for jobs like washing, cleaning and door keeping or security.

The Labour supply is not an issue in the area as there is already an established market nearby with several restaurants. Also industrial contacts are very helpful in labour arrangement and also there are several labour contractors in the area from which we can get the required labour. Wage Rate The wage rate per month for different kind of Labour is as follows:

Head Chef Chefs Trainee Staff Waiter Unskilled Labour

: : : : :

Rs. 25000 Rs. 20000 Rs. 10000 Rs. 8000 Rs. 5000

These wages are for 8 hours i.e. for a shift. As the restaurant is opened for 12 hours, overtime is to be paid in same proportion like 4000 to waiters for 4 hours overtime. Thus staff handling is very important in our project. There will be no overtime for head chef and in case of waiters 4 will be called for one shift and 4 in the other with subjected to variation depending on the rush. All the other staff will be paid overtime in the initial phase but as the business grows more staff will be incorporated and different workforce for different shift will be available. Layout Size The total land requirement for the restaurant is 2500 sq. feet which is divided into different sections. The sitting area comprises of 1700 sq. feet with a capacity of up to 80 people at a time though initially we will set up for only 50.

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The 800 sq. feet area left is required for kitchen which includes cooking area, storage as well as washing area. The area will be divided into heating section and cold storage as major part of the cuisine is non-veg. and requires storage. Plan The layout plan basically describes the division of the area into sections with each section location and the size of the section. The blueprint of the entire area is developed to specify the entire structure.

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Marketing Plan & Sales Strategy

Mini Hyderabad in Delhi (Deccan Cuisine restaurant) will be the leading Hyderabadi cuisine centre with a rapidly developing consumer brand and growing customer base. The signature line of Fresh, Authenticated, innovative, premium Hyderabadi cuisines will attract customers and will also support our marketing strategy. Market Penetration Entry into the market should not be a problem. The store has high visibility with heavy foot traffic all day long. The local residents and students always support new restaurants and the tourists do not have fixed preferences. In addition to the total budget allocated to the marketing and sales strategy Rs. 20,000 has been budgeted for a pre-opening advertising and public relations campaign. Also our main focus will be the cuisine prepared by specialized Hyderabad Chefs.

7 Ps of Service Industry:
1. Product: We need to serve to our customers according to the requirements laid by

them. Our main focus will be on the services that would be provide, they must be on time, i.e., our customer need not wait for their Order for along specially more than what is being specified\given to them.
2. Price: This is the Prices of the dishes and of our services charged to the customers.

This is discussed below in detail.

3. Place: This has strategically been chosen to suit our Customer base and our target Page

market.
4. Promotion: The Promotion Activities has been discussed below. 5. People: This includes the customers, i.e. , how we are dealing with them, how they

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fell when they are having dining business into our restaurant, need to cater their feed backs given, etc.
6. Process: This deals with the process of delivering the food to the customer. Some

restaurant business follows self service facility but we would be providing the food at the tables of the customers with proper dining experience.

7. Physical Evidence: All above 6 Ps mentioned should have to be supported by the

physical surrounding of the restaurant, our restaurant being a Hyderabadi Cuisine Centre we would have our interiors designed in the form of NIZAMI Architecture. Pricing Strategy Setting up menu prices is a pivotal decision for the restaurant. Pricing is a task that needs to be periodically revisited to respond to changes in the industry, fluctuating market prices and the mood of customers. Setting prices involves considering many factors, including the cost of food, cost of labor, what the competition is doing and what your target customers are willing to pay. In this we need to take care of following prices: 1. Food costs: Food costs are one of the first considerations going into restaurant pricing. This simply includes what it costs to procure the ingredients used in each dish. There is a reason why some tend to cost considerably more on the menu than other items like green salads and other things. The cost of purchasing these ingredients is much higher. Buying very high quality, local, organic or sustainable ingredients also boosts pricing. Break down the costs of the ingredients that go into each dish and use this as a base for setting your menu pricing. Keep in mind that there are more factors involved with pricing. 2. Other Costs: Other expenses that need to be taken care of while deciding the pricing strategy include labor, rent, supplies, equipment and marketing costs, etc. They all vary from time to time but a restaurant owner need to care of certain changes well in advance before finalizing the prices of its dishes as they cannot change them very often and not in their earlier days of operations. In this they also need to take of the price that their customers are willing to pay and it is the most important factor in the pricing strategy.

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Also we need to take care of the profit margins that we want to incorporate in to our dishes and also this may vary from dish to dish as some dishes may have more frequency of selling as compared to some other dishes. Note: If your dish requires a highly trained cooking staff with generous salaries then this will factor into your menu pricing. As our restaurant is special Hyderabadi cuisine centre hiring special Hyderabad Chefs, so this will reflect into our menu card. This is considered into our menu card, attached to the B-Plan. Channel Distribution As said we are moving into restaurant business with our speciality into Hyderabadi cuisines. Talking of Channels of distribution into restaurant business, i.e., Service industry, in this we need to take care how we have to forward our services to our customer base. We would be producing our food at our place and then distributing it to the customers directly as in our initial phase we would be focusing on Dining business only and then would be moving into catering and rest of the businesses in next phases. Hence in the initial phase we would say that our business will have 2-Level Business Channel only. Marketing Strategy Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketing vehicles will be created to convey our presence, our image, and our message.

Print media -- Local Newspapers, Magazines

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Local Newspaper This would advertisements in newspaper in the form of direct advertisement columns, also using pamphlets, and other advertisements agents through it. Magazines This would include local magazines that are circulated every week to the households in nearby areas.

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Broadcast media Advertisements on local channels

In this we would try to forecast advertisements on all local channels about our new facility to have a dining experience specializing in Hyderabadi Cuisine.

Online Communication -- Mobile phone messages, Emails

This is cheapest form marketing these days and also the form through which mass can be reached easily. Also our target segment is Students and Bachelors (who are tech savvy these days).

Misc. -- Yellow Pages, Events

But all this marketing campaign would be done in phases as we also need to look at the cost structure as well. So in the First phase we would go with 1. E-Mails, Mobile Messages. 2. Local Hoardings. 3. Word Of mouth publicity. In the Next Phase 1. Go with TV and other advertisements campaigns. Special Marketing Campaigns:
1) Our Marketing Campaign would also include giving discount coupons in our early

days or operations (say to our first 100 customers). Discounts like 20% or it can be like on a bill of Rs. 500 we would offer them free Ice Creams Desserts etc.
2) We would also offering Special discounts to our regular and loyal customers say who

visits our Restaurant regularly.

3) We would try to promote our Restaurant on special occasions like any festivals say

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Diwali, Id, etc. A Public Relations (PR) firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. The marketing effort in terms of public relations will be split into 3 phases; 1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and printed announcement ads in key places.

2) Ongoing -- A flexible campaign (using the above media), assessed regularly for effectiveness. 3) Point of sale -- A well-trained staff can increase the average check as well as enhancing the customer's overall experience. Word-of-mouth referral is very important in building a customer base. We would also try to take up some other promotional activities like:
1) Organizing games in nearby locations in which the winner would be offered

vouchers of say Rs. 200 food.

2) Organizing special celebration events on occasions like Bonalu (Durga Puja),

Dusshera and other occasions celebrated in Hyderabad specifically. Future plans and Strategic Opportunities Catering to offices (even outside of our local area) may become a large part of gross sales. At that point a sales agent would be hired to directly market our products for daily delivery or catered functions. Total Budget allocated to the Marketing Campaign is: Rs. 30,000 per month i.e. Rs 3,60,000 per annum.

Loan and investment proposal

Amount requested Purpose and use of funds Repayment or cash out schedule Timetable for implementing plan and launching the business
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12 months plan
Sno. Month Cost Total

1.

1 month

Registration charges : Rs,50,000/Total 15 table + 80 chairs and other furniture cost around = Rs. 200000/ Rent = Rs 160/- 2500 sq ft = Rs. 4, 00,000/- per month Manpower: 3 Cook + 8 Waiters + 4 unskilled + 2 office staff + 4 trainee +9 dept heads = Rs. 4,44,000/- per month Electricity cost : Around Rs. 75,000/- per month Other cost : Around Rs. 10,000/- per month Kitchen equipment cost : Rs.10,00,000/Advertising cost: Rs. 30,000/Laptop= Rs 35000 /Rent = Rs 160/- 2500 sq ft = Rs. 4, 00,000/- per month Manpower: 3 Cook + 8 Waiters + 4 unskilled + 2 office staff + 4 trainee +9 dept heads = Rs. 4,44,000/- per month Electricity cost : Around Rs. 75,000/- per month Other cost : Around Rs. 10,000/- per month Advertising cost: Rs. 30,000/= 9,59,000 /= 22,44,000

2.

2 month

3.

3 Month To 12 Month

Rent = Rs 160/- 2500 sq ft = Rs. 4, 00,000/- per month Manpower: 3 Cook + 8 Waiters + 4 unskilled + 2 office staff + 4 trainee +9 dept heads = Rs. 4,44,000/- per month Electricity cost : Around Rs. 75,000/- per month Other cost : Around Rs. 10,000/- per month Advertising cost: Rs. 30,000/Total cost

9,59,000 * 10 = 95,90,000 /-

Rs.1,27,93,000/-

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Sno. 1. 2. Amount required 9 Partners share Rs.127,93,000/Rs. 6,20,000/- Each = Rs.55,80,000/-

3.

Loan required

Rs.72,13,000/-

4. 5. 6.

Purpose & use of funds Repayment or cash out schedule Timetable for implementing plan and launching the business

Mentioned above Rs.1,56,281 per month (60 months) or 18,75,372 per year Mentioned above

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Critical Risk factors

Marketing Risk: Many first businesses in food business spend all of their efforts at opening and are unable to maintain the quality customers. Our company recognizes the importance of its image, first-time impressions and customer service and it will not sacrifice this in order to satisfy the bottom line. It is anticipated that marketing costs will be significantly higher in the first three months of business and hence we have allocated Rs 20,000 more for pre-opening advertising and public relations campaign.

Also, marketing activities will be closely monitored and constantly analyzed to decide what marketing activities are successful and what are not. Management Team Risk: The management team, as principals within the company, will oversee product development, purchasing, positioning, pricing, inventory control and approval of all financial obligations of the company. They will plan, develop, and establish customer service policies and objectives, write employee job descriptions and draft an employee manual for all employee-related policies. The restaurant businesses live or die on customer service, yet the frontend employees have among the lowest pay package and worst benefits of any industry. We know we have great products, but it's the way those products are delivered that will determine our success. We realize that our employees are our biggest asset and that the image of our company is built by the people who work for us.
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Compensation for employees will include direct monetary payments and as business progresses , performance bonuses will be paid.

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Operating Risk: The major risk arises from change in demand , if it is on positive side then the risk is reduced to great amount but if it is on negative side due to change in taste or loss of demand to competitors or due to general change in economic conditions.

To mitigate this risk we need to provide excellent services and take feedback from customers. Also that feedback should be used to bring any change as per the customer requirements.

Financial Risks: Financial Risks: We have leveraged our membership with the National Restaurant Association to look at industry averages for this market segment for Restaurant start-up and Operations. Additionally, we included a contingency buffer in the financial estimates to account for any potential cost variance. Also we have used the furniture on rent basis instead of spending huge cash on it. This will help us in short run and when we will be profitable and have sufficient cash we may invest in furniture. We have taken the necessary precautions to ensure the business is fully capitalized, and have addressed all financial shortfalls to ensure a successful business start-up.

Safety Risks: The primary goal is safety for everything and everyone in the restaurant. For this, excellent cleanliness rules will be imposed to keep foods healthy. Proper safety building elements like water sprinklers and fire exits are invested upon. Also we will get business insurance for our establishment, as well as our employees.

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APPENDIX
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MENU
Paneer Tikka Beans curry Bagare Baigan Mirchi ka Salan Dal Fry Paneer Butter Masala Palak Paneer Vegetable Biryani - Single Family Pack ( Serves 4 to 5 persons ) Jumbo Pack ( Serves 6 to 8 persons )

Vegetarian

Rs. 140 Rs. 95 Rs. 95 Rs. 75 Rs. 75 Rs. 125 Rs. 125 Rs. 110 Rs. 305 Rs. 508

Fried Fish Bomidala pulusu Apollo Fish Tandoori Prawns Breaded Fish & French Fries Loose prawns

Sea Food ( Fish - Boneless Murrel)

Rs. Rs. Rs. Rs. Rs. Rs.

195 230 195 230 230 195

Non Veg Gravies & Curries

Dum Ka Ghosht Dum Ka Murgh Pasinda Mutton Hyderabadi Khorma Chicken Masala Butter Chicken Dalcha Rs. 225 Rs. 195 Rs. 225 Rs. 195 Rs. 150 Rs. 150 Rs. 95

Bread Basket
Lacha Paratha Plain Naan Butter Naan Tandoori Roti Plain Kulcha Paneer Kulcha Plain Paratha Phulka Romali Roti Sheermal Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. 25 20 25 15 20 30 15 10 12 10

Zeera Rice - Single Family Pack ( Serves 4 to 5 persons ) Jumbo Pack ( Serves 5 to 6 persons ) Tatti ka Ghosht

Staples

Rs. Rs. Rs. Rs.

95 270 450 230

Mutton Biryan - Single Family Pack ( Serves 4 to 5 persons ) Jumbo Pack ( Serves 5 to 6 persons ) Chicken Biryani - Single Family Pack ( Serves 4 to 5 persons ) Jumbo Pack ( Serves 5 to 6 persons ) Vegetable Biryani - Single Family Pack ( Serves 4 to 5 persons ) Jumbo Pack ( Serves 5 to 6 persons )

Dum ki Biryani

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

215 540 790 185 480 708 110 305 508

Hyderabadi Ethnic Specialities

MUTTON KEBABS Full Platter Half Platter CHICKEN KEBABS Full Platter Half Platter MIXED KEBABS PLATTER Full Platter Half Platter

Kebab Platters
Rs. 1100 Rs. 575 Rs. 1050 Rs. 550 Rs. 1085 Rs. 575

Lukhmi ( 4 Pieces ) Lukhmi ( 4 Pieces ) & Dum ke Kebab Haleem - Single Family Pack ( Serves 4 to 5 persons ) Jumbo Pack ( Serves 6 to 7 persons ) Nehari - Paya ( One Plate - 2 Pcs ) Nehari - Zaban ( One Plate - 2 Pcs ) Marag Dum ka Kheema

Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs. Rs.

80 195 95 270 450 150 150 140 195

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Desserts
Double ka Meetha Qubani ka Meetha Kaddu ka kheer Feerni Rs. 75 Rs.Rs. 75 75 Rs. 75 Rs. 50

Questionnaire
How many times do you dine outside in a month? *

2 3 4 6 or more

What do you prefer having....? *

Non-Vegetarian Vegetarian

Rate the following on a scale of 1-5 which you consider while going to eat outside * 5 indicates highest preference and 1 the least
1 2 3 4 5

Ambience

Quality

Service

Satisfaction/value for money

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Overall Experience

How much do you spend on an average per person? * (figures in rupees)

Rs 100

Have you ever tried HYDERABADI cuisine(like biryani) *

yes

no

would you like to have an Authentic Hyderabadi food dining experience in Connaught Place, Delhi ? *

yes no

Name *

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