ECONOMICS MID-TERM ASSIGNMENT DOC

SIZE OF RESTAURANT-

1200 SQFT. Compact kitchen, with moderate seating arrangements (up to 40 people).

RESTAURANT LOCATION-

DELHI, Sector C.

It is a posh area of new Delhi, with an abundance of malls and other upscale shopping markets. Thus,
becoming a point of attraction for customers ranging from middle to the upper class, fitting right in
with our target demographic.

SKILL LEVEL OF EMPLOYEES-

The employees can be divided into 3 types:

1. Ancillary staff- No experience required.

2. Cook/cashier- 12th pass, will require training.
3. Manager- Will need to be initially employed (or performed by us). Later can be employed
from among the top performing employees. Preferably college graduate.

TYPE OF RESTAURANT

Starting a franchise-style Indian cuisine-oriented restaurant in India.

Customer demographic- middle-higher class individuals, looking for quick, higher-priced but higher
quality Indian food, while allowing them the assurance of QC, and taste.

Benefits-

• Standardized menu- Allows for customers to know exactly what to expect.

• Quality control- As the same administration practices are to be followed, a standard of
hygiene can be set.
• Better outreach- One brand, many restaurants, allows for wider customer reach.
• Allows for quicker expansion.
• Utilizing the franchise-model allows for the franchisee owners to take the onus of paying the
overhead costs which can be divided into the following categories: -
1. Fixed cost- Rent. To be taken completely by the owner.
2. Variable cost- A minimum to be set by the core company, however, once again the actual
cost itself is applicable to the franchise owner, rather than the core company itself.
3. Semi-variable costs- Input costs such as cost of raw materials, or costs of crockery or cups,
they will be the burden of the core company.

RESOURCES REQUIRED BY THE RESTAURANT-

Capital resources-

1. Plot of land, to start the restaurant.

2. Machinery such as: Burners, dishwashers, pressure cookers, freezers, water filters, blenders,
espresso machine. Increases efficiency, allows for storage of pre-made goods, shortening
the time required for preparation.
3. Culinary items. Required.
 4. Crockery. Required by the customers, and stylized crockery allows for a better customer
experience and association of our brand with sophisticated fast food.
5. App. Allows for better tracking of orders. Adds a degree of convenience for customers.
Creates another medium for customer to brand interaction.
6. Tables, chairs, seats. Required.
7. Décor items. Creates ambience.
8. Bikes. To be used for delivery.

Natural resources-

1. Electricity
2. Water
3. LPG

Human resources-

Staffing. For ancillary staff, a recruit with language comprehension and is above 18 is required.
Would help keep the place hygienic and more appealing to the customers.

For cooks/cashiers, a recruit with provision for adequate training is required. Preferably a school
graduate. Would be better suited for quickly grasping the techniques to be employed for cooking
and meal preparation, customer interaction and would require only minimal wage.

Will need to be initially employed (or performed by us). Later can be employed from among the top
performing employees. Preferably college graduate.

MENU

I. Cold beverages: [Quenchers] Every drink will come in 330ml, 390ml and 450ml variants.
1. Sweet lassi:
2. Thandai
3. Seasonal lassi
4. Jaljeera
5. Aam panna
II. Hot beverages: [Soothers] Every drink will come in 330ml, 390ml and 450ml variants.
1. Masala chai
2. Kerala Filter coffee
3. Lemon grass mint tea
4. Rasam
III. Rice bowls-
1. Lucknowi biryani- Made of soya and basmati rice, with traditional biryani marinade
and seasoning.
2. Kichdi
3. Pulao
4. Coconut milk rice

*The choice of meal will be offered with small/medium sized drink and one small sized
side.

IV. Wraps- These will come in two sizes: 6 inches; 12 inches

1. Tofu tikka masala
2. Butter tofu masala
 3. Soya chaap
4. Chole bhature
5. Malai kofta

-Choice of wrap for the wraps, apart from chole bhature are as follows:

Tandoori Roti, Naan, Laccha paratha, Kerala Porotta, Kulche.

*The choice of meal will be offered with small/medium sized drink and one small sized
side.

V. Sides-
1. Finger shaped medhu vada with pudina chutney/coconut chutney dip
2. Cubed samosa with pudina/sweet chutney dip
3. Cubed kachodi with pudina/sweet chutney dip
4. Vada pav with pudina/sweet chutney dip
5. Nacho shaped khakra with pudina/sweet chutney dip

*Comes in small/medium/large

VI. Sweets: [To be decided]:

PRINCIPLES USED BY THE RESTAURANT

1. People respond to incentives-

Franchise owners have the incentive to provide better services, due to the competition
among franchises operating in the same region.
Customers respond to discount coupons, app-only offers, seasonal trends or changes in the
menu. This can drive up sales.
Employees respond to bonuses, increasing their efficiency and deepening their loyalty to the
company by making them feel their efforts are being noticed and rewarded.
2. Rational people think at the margins-
By offering the option of meals, customers are more inclined to choose the meal instead of
the individual dish, since they believe that is a better value, despite the fact that they might
not have required a meal in the first place.
The core company’s revenue depends on the commission received from franchise owners.
Thus, to assuredly increase revenue, the most common method is to increase the number of
franchises, despite the costs associated with it.
3. People face trade-offs:
To allow fast expansion, franchise model needs to be employed. However, the trade-off with
this decision being that the company reputation depends on the actions of the franchise
owner, reducing a sense of control that comes with expanding by opening new branches
directly by the core company.
OR
Trade can make everyone better off:
By offering meals in the fomr-factor, prize and speed capable only by a fast-food restaurant
with the sophisticated dishes available in the Indian cuisine, we are able to cater to the
demands of urban, metropolitan, Indians.

[INSERT GENERIC CIRCULAR FLOW DIAGRAM]

Pandemic impact-

Flow of events.

Customers not willing to enter restaurants.

Lower revenue.

Government regulations, lead to costs associated with vaccinating employees, reducing seating
capacity to half (20).

Firing of employees.

Closing down of restaurants.

Solution:

1. Close dine-in option. Only takeaway or delivery.

2. Concentrate our menu- Remove sweets.
3. Change packaging. Sophisticated packaging with compartments, to continue the fine-dine
experience right to the customer’s home, still with the systematic speed of fast-food.
4. Offer cloud-kitchen system to existing, deeply impacted Indian restaurants. This allows for:
• Continued expansion of outlets. Creating reach.
• Access to pre-trained employees.
• Access to existing capital resources.
5. Partner with delivery aggregators such as Zomato and swiggy to make use of their customer
base, while offering customers the option to switch to our app for lower prices.

[INSERT GRAPHS]

Manufacturer of CUPS- ISHWARA

Manufacturer of ceramic crockery- Clayartex exports.com