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A report submitted to IIMT, Greater Noida As a partial fulfillment of Full time Post Graduate Diploma in Retail Business Management
Submitted to: Dr. D.K Garg. (Chairman, IIMT)
Submitted By: Amit kumar Pandey(RMR2008) Harjeet Singh(RMR2019) 15th batch (PGDRM)
Ishan Institute of Management & Technology 2, Knowledge park-1, Greater Noida, Distt. G.B. Nagar (U. P.) E-mail: email@example.com www.ishanfamily.
The project title“OPENING A RESTAURANT WITH LIQOUR FACILITY” is been submitted by Amit Kumar Pandey and Harjeet Singh ENR no. RMR2008 and RMR2019. It is here by declare that this Business Study report ofOPENING A RESTAURANT WITH LIQOUR FACILITY is an original work done by us on behalf of Ishan Institute of Management and technology, Greater Noida. It is submitted for partial fulfilment for the requirement of course curriculum of Third semester of PGDRM and is an original piece of work done. The compilation of all information and data are accurate, if it is found that anything is wrong or any respondent is false than the institution can take any action against us. It is further submitted that this project is the property of Ishan institute of management & technology, Greater Noida. Date : Place : Amit Kumar Pandey (RMR2008) SIGNATURE: ……………
Harjeet Singh ( RMR2019)
TABLE OF CONTENTS
1. Preamble 2. Purpose of study 3. The business 4. The location 5. Man power requirements 6. Machinery requirements 7. Technical know how? 8. Restaurant layout 9. Demand for the product 10. Supply for raw materials 11. Source for the raw materials 12. Major competitors 13. Why I m interested in this project 14. Legal aspect 15. Conclusion
4-5 6 7-8 9-10 10-11 11-13 14-15 16-19 20 21 22 23 24 25-27 28-29
As the business environment is becoming increasingly more complex, accompanied by intensified competition, rapid advances in technology and most critically, rising churn, be it customer or employees, there is an unprecedented rise in corporate failures today. And, just as amazing as the increasing number of failures, is the fact that most of the Companies that attempt a recovery, also fail. Against this backdrop, it makes sense for companies to understand the reasons for their decline, in their performances, and find ways to avoid a potential bankruptcy situation. However, sickness is not restricted to corporate only. The same factors that cause sickness in corporate are also reasons for sickness in small and medium sized businesses. However, the gravity of the factors may vary and it would be pertinent to say that the study of failure and turnaround for small and medium businesses should be separately undertaken as the rules of the game for the large corporate houses need not necessarily be the same for the small and medium sized entrepreneurs. The Hotel Business or the Restaurant Business is one category, which deserves special interest. These categories of hotels and restaurants are typically called as Udipi Hotels which primarily serve South Indian Dishes like Dosas, Idlis etc. Many have diversified into serving the North Indian Dishes like Parathas etc. Surprisingly several such Udipi hotels are not able to match the onslaught of the changing demands of the Indian Customers especially in terms of new dishes, Chinese and other oriental dishes etc. The net effect has been that some of them have fallen by the wayside – a sick company. The problem for these small and business enterprises gets compounded when one realizes that the SICA and BIFR (Sick Industries Act and Bureau of Financial Reconstruction) are not in a position to help these organizations. The Restaurant Business category contributes substantially to the GDP of the country. The issue is what are the reasons for sickness in this category and what is the role that the entrepreneur plays in the successful turnaround of ailing restaurants. Can Innovation play an important role in nurturing these units back to their original glory?
This paper aims to study the various strategies that have been used by the hotel sector in order to turn themselves from a sick organization to one of the topmost organization in their field. Opening a financially successful restaurant requires much more than simply having a good recipe. A potential restaurant owner has to first satisfy the myriad regulatory requirements of their State and City Governments. For example, if we are opening a restaurant in New Delhi, then he or she should require fulfilling the formalities of that particular state. Once a person has cooked up the idea of opening a restaurant, he or she should realize this, opening a restaurant is no form of retirement. Long hours and serious financial investment are required to make our restaurant succeed.
PURPOSE OF STUDY
According to the National Restaurant Association, the restaurant industry sales are expected to reach a record $637 billion in 2009 and there are approximately 935,000 restaurantand-food service outlets. With 12.8 million employees, the industry is the largest employer. Owning a restaurant can be very rewarding. But it can be fruitful only when the person engaged in this business is having knowledge of state and local regulations.
The Business is all about to start a restaurant with liquor facility. This can be done any of the following ways: 1) Buy out a restaurant that is in financial trouble. 2) Purchase an existing restaurant's lease from the landlord. 3) Lease an existing structure and make renovations. 4) Build a restaurant from the ground up. Buying out a restaurant is probably the least expensive way to get into the restaurant business, but this method has several disadvantages. There is probably a reason that the restaurant has been financially unsuccessful, such as bad management or bad location. The restaurant may have a poor reputation in the area. Therefore, before buying out a bankrupt restaurant, one should investigate the circumstances of the restaurant's bankruptcy. Purchasing an existing restaurant's lease is another method to getting started in the restaurant business. Many restaurant owners want to sell their restaurants for any number of reasons, including retirement or they are just tired of the restaurant business. In such a case, the buyer would probably have to pay the "good will" that the previous owner earned as a result of his or her development of the restaurant's business. The new restaurant owner would have the benefit of having an already established customer base. Another way to start in the restaurant business is to lease an empty space and turn it into a new restaurant. This method gives the potential restaurant owner wide latitude in designing and developing a restaurant as his or her own "creation." This method requires substantial financial investment including hiring an architect, contractor, plumber, as well as purchasing equipment, making renovations, etc. Goodwill will also have to slowly be developed. Also, the length of the term of the lease is an important consideration. A restaurant owner may face serious problems when, after his or her lease expires, the landlord decides to dramatically increase the rent. Moreover, the longer the lease, the easier it is to obtain a business loan. Perhaps the most expensive way to get started in the restaurant business is to buy land and build a restaurant "from the ground up. Depending on the size, location and concept of the restaurant, this
method could be extremely expensive, including costs such as purchasing the land and constructing a building. Investment details.( Lease an existing structure and make renovations for 1 year) 1. Leasing Cost- 20,000 p.m * 12 = Rs 2,40,000.
2. Renovation Cost- Rs 4,00,000.(A.C, Furniture, Equipments, Lightings, Music System
& other goods.)
3. Salary- Rs 3000*10 Waiter
=Rs 30,000 p.m =Rs.30,000 p.m
Rs 2000*3 Cleaning Staff/Sweeper = Rs.6,000 p.m Rs 3000*2 Guard Rs 4000*1 Cashier Rs 3500*2 Bar tender = Rs. 6,000 p.m = Rs. 4000 p.m. = Rs. 7,000 p.m ______________ Total salary
4. Raw- Materials for start up
= Rs. 83,000 p.m = Rs 1,20,000 = Rs 1,00,000 = Rs 30,000 p.a = Rs 10,000
5. Restaurant and Bar Licence 6. Insurance of Restaurant 7. Uniform for Staff
8. Others( Parking, Electricity, Water) = Rs 40,000 p.a 9. Interest on Loan ( @10% on 2,00,000) = Rs 20,000. 10. Cash in hand = Rs 1,57,000 _____________________ Total Estimated Cost on Business = Rs 12,00,000.
[Source of Capital:- Investor Rs 5,00,000* 2 + Rs 2,00,000 Bank Loan = Rs 12,00,000.]*
Where are we going to put our new restaurant? Some important things to think about that may help our business become a success are: Traffic: Foot and motor traffic counts and surveys are an important start. We can get traffic counts from a real estate firm, demographic firm, planning commission, or highway department. We will want to pick a location that has high traffic counts at the peak times we serve our food. One way is access this is to park at the site at different times of the day, including week-ends and get some figures for ourselves. If we are in a downtown area we will need to access the foot traffic. The type of foot traffic will also have a bearing on the concept we choose. Visibility:If potential customers can't see we, they may not stop. A corner location is great. And even better is a free-standing building on a corner lot! If we choose a strip mall, a location at the end is best. Sign age also increases visibility. Especially, a sign with a read aboard that allows us to advertise our menu. If we are in a downtown location, a curb sight gives us more visibility. Readily Accessible Parking: This is a must, customers need to be able to find a place to park or they may consider it to be more hassle than it's worth, especially if they are in a hurry. Strong population back-up - near a high school, college, university, office buildings, dense residential areas or high traffic commercial areas. Accessibility:Customers need to be able to get to our business with ease. Median strips that don't allow for a left-hand turn make it hard for our customers to get to our business. Highly congested traffic areas may also discourage them. Price:Make sure the price of the site or lease amount fits our projected break-even or we may just be buying a lot of work with no pay. Condition of the site:How much money will it take to buildthere or if it is anexisting building, how much money will it take to remodel or repair? Road Construction:Always check with the highway department and local agencies to see what improvements or changes are planned for the areas. We bought an existing restaurant only to have all access roads torn-up for improvements and lost 3 months of sales.
Crime: Another thing to consider is whether or not this is a high crime area, people may not stop if they don't feel safe. Destruction of property, robbery and employee safety is other considerations.
MAN POWER REQUIREMENT
Manager If we are a small restaurant, just starting out, we may not need a manager. But if our restaurant is really busy or we own more than one, hiring a manager is a good idea. The manager's greatest responsibility is to make sure that customers have a pleasurable dining experience. Our manager can either make or break our business, so hire carefully. Depending on the size of our operation, we should only need one.
Some restaurants will have their manager hire and train one or more assistant managers. It’s important to hire someone with several years' experience working in a restaurant as a waiter/waitress or kitchen helper and he/she should be able to jump in and help fulfil any position in the dining room. Qualifications - Organized, tactful, friendly, quick-witted and calm, posses leadership skills, and an understanding of the hospitality industry. Responsibilities - Be able to open and close the restaurant, purchase food and beverage supplies, manage the cash register, track inventory, hiring, training and firing staff; and creating work schedules and monitoring their performance, develop marketing strategies, supervise personnel and schedule our staff, resolving customers' complaints and ensuring health and safety regulations are followed, keeping employee records for hours and wages, preparing payroll and filling out paperwork for taxes, wages, employment insurance,etc., and tallying cash and charge receipts and balancing them against the record of sales. Chef A chef plays a very important role in restaurant because it is the one who is responsible for making good and tasty food. In small restaurant only one chef works and he handles all the responsibilities regarding quality of food and menu.
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Cook A small restaurant requires 3 cooks to ready the food and help the main chef. Waiter A small restaurant requires 10 waiters which is enough to handle the responsibilities and to provide services to the customers. The main purpose of any restaurant is the customer satisfaction and to fulfil this purpose waiter plays a vital role. Cleaner A restaurant requires 3 cleaners who are responsible of cleaning tables, floor and the dishes. Security Guard 2 security guard is also employed in restaurant, but some restaurant may not be having security guard, it depends in the size and turnover of the restaurant. Cashier A cashier is required in the reception to handle the billing work. Bar tender There will be a requisition of 2 bar tenders on the Bar counter.
MACHINERY REQUIREMENTS (RESTAURANT EQUIPMENT):
The type of we will need for our restaurant depends on the type of service we provide. For example, if we are a full-scale restaurant we will need many more equipment items that a small mom and pop store will need. There are so many different types of restaurant equipment available throughout the world that it will be in possible for me to write about them all. We should give serious consideration to investing in a reliable food processor. They save time and labour. The way in which our food is processed, how we chop, slice, mix, grate and blend will greatly affect the amount of time it takes to provide the ending result to our customer. By investing in a quality food processor we are investing in a piece of restaurant equipment that will provide safety, better time management and essentially better results.
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The refrigerator is the most critical piece of restaurant equipment we can ever buy. Keeping cold foods cold is essential to food quality and the extreme importance of food safety. Invest in a refrigerator that will show we the temperature accurately on the outside of the equipment. Find a refrigerator that is tough and built to last, with proper usage. Delivering cold and hot beverages is extremely important to the success of our restaurant. This piece of restaurant equipment should provide a quick and efficient way of dispensing the beverages. We will need a well-designed layout to deliver the best product to our customers. A soda to our has the ability to dispense six different beverages and has an ice dispensing point. The ice dispenser should hold around 100 to 150 pounds of ice. Fried foods are as popular as ever. To keep pace with the demand, today's frying equipment offers features that save time and money and help we prepare consistent, quality products. Commercial deep-fat fryers are complex pieces of equipment designed to turn out load after load of perfectly fried foods. Today's frying equipment is made to be safe, and easily cleanable. Energy efficiency is easy for electric fryers since the heating elements are immersed in the frying medium, giving the highest possible efficiency from the electric source.
Gas fryer manufacturers made their products more energy efficient. Gas fryers heat the food either with a burner under the fry pot or by injecting the gas flame into tubes running through the fry pot. Recently, manufacturers have introduced infrared burners and various types of baffles in the tubes to distribute heat more evenly, extract more heat energy from the fuel, and reduce waste heat needing to be exhausted. Equipment Maintenance Hot water Heater - Sediment and faulty relief valves are the two most common causes of a water heater breakdown. Sediment builds up as a result of impurities, usually rust or alkaline minerals, entering the water heater tank through the main water supply line. Sediment can block the distribution of heat, thereby wasting energy. The extent of sediment build-up is determined by the condition of the water in our area. In areas where water conditions are extremely poor, a water softening system may be necessary. Once a month, drain 2 -3 gallons of water from the water heater by placing a bucket under the drain valve and opening the valve. Once drained, close the valve. This simple maintenance
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procedure lengthens the life of our water heater and improves the quality of our hot water. Check the safety valve (located on top of the unit) by pressing on the handle located on top of the valve. Take caution as the overflow pipe should expel HOT water. If it does not, have the valve replaced immediately. This safety valve is designed to open in the unlikely event that the thermostat should malfunction. If the valve does not operate properly, the tank might explode due to high steam pressure. Pasta cooker - Gas pasta cookers provide a complete, self-contained work centre for preparing pasta. They have two sections, one for cooking and warming, and one for rinsing and holding. Pressure cookers - For a given burner setting, pressure cookers cook at higher temperatures because the pressure they produce raises the boiling point. The higher temperature allows the cooking to be completed faster, reducing energy costs by about two thirds. Gas rice cooker - is a space-saving countertop appliance that provides fast cooking in an enclosed pot. It is thermostatically controlled making it easier for us to produce perfect rice every time. The gas-fired wok - provides concentrated, intense heat. Woks are available with two and threering burners or jet burners, with convenient valve location and built-in water faucet and drain gutter for easy clean-up. Tilting braising pan - This versatile, high-production pan serves many cooking needs. Use it to braise sauté, stew, boil, simmer, steam, pan fry, grill, roast, proof dough or, as a Bain Marie to hold foods hot. Its thermostatic controls maintain constant cooking temperatures and, with the cover, help keep our kitchen cooler and save energy. Because food is transferred directly from tilting pan to serving pan with perfect control, there is no ladling and heavy lifting. The tilting pan can reduce total cooking time by up to 25 percent. Foods can be thawed, braised, sautéed, fried, poached, steamed or held.
Maintenance - Clean with mild detergent and brush after each use. Pre soak if necessary. Water, waste and scraps are easily removed into a receiving pan for disposal.
TECHNICAL KNOW HOW
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There are three major ways in which we will create an advantage. • Product identity, quality, and novelty.
High employee motivation and good sales attitude
Innovative and aggressive service options.
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 and student publications Broadcast media - local programming and special interest shows Hotel guides, concierge relations, Chamber of Commerce brochures Direct mail - subscriber lists, offices for delivery Misc. - yellow pages, charity events
A public relations firm has been retained to create special events and solicit print and broadcast coverage, especially at the start-up. The marketing effort 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.
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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. 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. The food concept and product image of Restaurant will attract 3 different customer profiles;
The student - more and more young people have developed healthy eating habits. Some also go through a "health food phase" while in college. The health conscious person of any age or sex - this includes anyone on a restricted or prescribed diet or those who have committed to a healthy diet. Curious and open-minded - "if you try it, you will like it." Through marketing, publicity, and word-of-mouth, people will seek out a new experience and learn that nutritious food can be tasty, fun, convenient, and inexpensive.
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RESTAURANT DESIGN AND LAYOUT
The amount of money we will have to spend will of course depend on our budget, whether we are leasing or buying (leases would have to be long term before spending too much money), what we want to achieve and how much renovation the building needs. The amount of space we will need in most cases is approximately 500 to 3,000 square feet depending on our concept. The specific layout areas listed below will also depend on our concept. Customer Service Area This area is located at the entrance and would include: 1. A hostess station, usually a podium with an area to store menus and a guest or reservation ledger. 2. Cashier's station (could contain cash register, bakery display cast, etc). 3. A very comfortable, cozy seating area for waiting customers. Kitchen Area Sometimes referred to as the production area because this is where the food prep., cooking, baking, food storage sanitation, and dishwashing take place.
We don't need too much space if it is efficiently arranged. When our wait staffs present an order, the order should enter an assembly line beginning with the raw materials and ending with the finished product.
The main areas are: 1. Cold prep - For the assembling of appetizers and salads, and deserts. A counter and shelves to put the equipment, dishes, utensils and ingredients for assembling each dish is needed in the area.
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2. Cooking Station - This is the chef's or cooks work area. Prep tables, steam tables, fryers, cooking range with griddle top, small refrigerators placed under prep and steam tables, freezer, drink dispensers, ice bin, broiler, exhaust fans, utensils, serving plates, etc. go in this space. 3. Dishwashing - Close to the cooking area so that the pots and pans can be easily reached. Most health departments require separate sinks for washing and sanitizing pots, pans and dishes that need to be washed by hand. 4. Food storage area - We will need a large walk-in freezer and cooler, a scale, breakdown table and shelving for our freezer, cooler and dry goods. Our clean and dirty linen may also be stored in this area. 5. Office - This area would be for we desk, phones, office equipment, records, etc. 6. Personal staff area - A place to put their personal items, coats, purses, etc. 7. Dining - This area would include customer seating (usually 12 sq. ft. per customer) and wait stations. 8. Bar - Doubles as a customer waiting area. Plan on one bar seat for every dining seat and about 10-12 sq. ft. per table. . This area would need a bar, bar stools, booths, cash register, three compartment sink, drain board, ice bin, ice machine, beverage dispensing system, beer dispensing system, glasses, mixers, blender, ice crushers, bottle openers, etc. Decoration of Restaurant We will probably need varying levels of lighting in our restaurant. Lighting can make a dramatic impact on the tone of the restaurant. Is the lighting bright and illuminating or dark and depressing? Breakfast: lots of light is needed so that customers can read the morning newspapers while enjoying their coffee and/or breakfast. Lunch: If we are a fast food restaurant, a moderate level of lighting will help to create a fast turnover of customers, especially needed for lunch rushes. Dinner: The dinner hour requires a low intensity of light to create an intimate and leisurely atmosphere. Fast Food Establishments - Use bright lights to attract customers and to signify a place bustling with activity and very fast service.
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Family dining Establishments - well lit to give the impression of fast service with decorative fixtures to create a homey atmosphere. Fine dining - requires a low intensity of light to create an intimate and leisurely atmosphere and imply a high quality meal. Low levels of lighting are generally associated with higher prices and a high quality of service. Too dark and customers can't see and enjoy the appearance of the masterpieces our Chefs have created and could have difficulty reading their menus. Also, we need to have enough light so that our staff and customers don't trip or fall. Themed Restaurants - Use decorative lighting relative to our theme and mood to create an atmosphere of fun and excitement. Kitchen - This area should be well lit to prevent accidents, increase efficiency, facilitate quality control and prevent waste. Fluorescent light fixtures are recommended because of their efficiency and cool operating temperatures. Types of Lighting Light can affect a customer's appearance. A light source at or slightly above eye level is most complimentary to the face. Strong overhead lights at sharp angles can accentuate skin wrinkles and deep shadows around the eyes. Table lamps and candles provide a complementary light source if glare is prevented. Up lights - shine upward casting pools of light on the surface above them and when place on the floor, behind plants, and in corners, add to the atmosphere by creating dramatic shadows. Down lights - positioned to cast a circle of light on the floor, table, or any surface below, and can be recessed into the ceiling, ceiling mounted, or hidden behind ceiling beams or dividers. They can also highlight an entrance area, cashier's station, individual dining room tables, flour arrangements, or the salad bar. Spotlights -These are used as accent lighting. Exterior Lighting Exterior lighting - The outside lights often make the first impression our customers have of our restaurant and they can attract customers passing by into our establishment
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Lighted Signs, architectural highlights, entrance ways, and parking areas need to be well lit. Outside lighting should provide safety by illuminating steps, sidewalks, and other hazards and relay a sense of security.
DEMAND FOR THE PRODUCT
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To make demand of the product it’s very important to have competitive edge over the competitors. Competitive strategy: There are three major ways in which we will create an advantage over our competitors;
• • •
product identity, quality, and novelty high employee motivation and good sales attitude Innovative and aggressive service options.
Our restaurant will be the only restaurant among all the competition which focuses the entire menu on healthy, low-fat cooking. Each of the competitors offers at least one "healthy" selection on their menu. Competitors even have an entire section called "On the Lighter Side" but in all cases they are always seen as alternatives to the main style being offered. The target market will perceive our restaurant as the destination location for healthy, low-fat cooking. Once they have tried the restaurant, their experience will be reinforced by friendly, efficient, knowledgeable service. Return and repeat business will be facilitated by accessable take-out and delivery options. At the time of this writing all of the competitors offered take-out. In spite of this we will offer discounts to students, couples and we will have offer for various groups as family pack, couple pack, seasonal offers. we will also provide liquor on free of cost on some special packs.
SUPPLY FOR RAW MATERIAL
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Every now and then, one would prefer to eat out, preferably at restaurants. But have one ever wondered what keeps these restaurants running everyday? In order to be viable, restaurants need a constant supply of raw materials. To enable restaurants to function seamlessly, exclusive restaurant supply stores have opened up across the globe. These supply stores cater to the needs and demands of restaurant owners supplying them with every necessary article required to keep their business functioning well. There are a few restaurant supply stores available online where one can get to place his orders on the net and get his supplies delivered at their doorstep. We have also selected one restaurant supply store located in south Delhi. It has also online facility which makes order convenient. It supplies us whole raw materials as flour, vegetables, grocery materials, snacks, spices and all other needy items. For liquor supply, we directly contacted to the company. Their marketing executives will supply it. The uniqueness of this supply store is that it supplies only to restaurants. It has it’s own vehicle by which it fulfils the delivery. It also provides us discount on items as we give them monthly orders while for any lacking in the middle it would fulfil on demand.
PROCESS FOR RAW MATERIAL
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As for material supply there are particular supply stores. There is no particular process for the raw material. Order can be given by telephonic call or by mail. Even after fifteen days one of their employee visits for getting order if they would not get any response from their customer. They also take feedback from their customers and implement over it. Also for supply of raw materials ‘JIT’ approach is very important which means just in time approach. So, it is necessary that raw material process should be simple and easy. Process for raw material: 1) Giving order by mail, telephone or by personnel meeting. 2) Execution of the order by the supplier. 3) Making a list of the order. 4) Supplying the raw material as per the order. 5) Getting signature on the receipt. Liquor has been supplied on the monthly basis. For that order can be given either by telephonic call or by mail. For liquor it’s very important to have liquor licence without which its sale is not possible.
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There are over two dozen restaurants in that area that sells food at similar prices. Although this presents an obvious challenge in terms of market share, it also indicates the presence of a large, strong potential. The newest competitors have made their successful entry based on an innovative concept or novelty. Our restaurant will offer an innovative product in a familiar style at a competitive price. Our aggressive plans of take-out and delivery will also give us an advantage to create a good market share before the competition can adjust or similar concepts appear. Competitor's Profile Competing with our restaurant for the target market are these categories of food providers:
• • •
Independent table service restaurants of similar menu and price structure. Chain service restaurants. Commercial food service companies serving students directly.
Main competitors are:
1. SaravanaBhavan restaurant, 46 Taulak ganj,Ranchi, Jharkhand. 2. Swagath restaurant and Bar, Lal pur Chowk, Jharkhand. 3. Devans Indian pvt. Ltd., 131, Khanna market. Ratu Road, New Delhi 4. Bed and breakfast restaurant and bar, Rajdhani enclave , Sujata Hall Jharkhand.
In spite of all those which has newly entered in market or surviving in the market in New Delhi are our competitors.
WHY I AM INTERESTED IN THIS PROJECT
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I am interested in this project because two of my neighbours are already in this business and they are generating enough profit with this business. We had seen a food stall in ‘Kshitiz’ one of renowned festival of our college and we observed the profit. This has inspired me to open a restaurant. In spite of this, I am a food loving person. I take interest in cooking and having different varieties of meal. Secondly, through studies I found that restaurant business is the fastest growing business in India comparative to other businesses having lowest failure probability. Delhi is the only state where no excise duty charged on liquors. That’s why we have included availability of liquor in our restaurant. Being a Management student it’s always curious to be an entrepreneur. Opening a restaurant is also an entrepreneurship. So, all these create interest in me for this project.
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We will need to register our business name with our state. We can do this by contacting the Secretary of State's office and requesting the forms that we will need to fill out. Also, ask them how to search for state trade marks to see if any part of our name is registered. We may need to do this, also, in our county at our county clerk's office. Licenses and Permits There may be various licenses and permits required for our business. Business licensing requirements vary from city to city, county to county, and state to state. Some require all businesses to register, and they collect annual business licensing fees. Others don't require licenses or registration for unincorporated businesses unless we are doing business under a fictitious name. We may need a license or permit for occupancy, sanitation, fire safety and liquor. Our first step should be to check with our city or town clerk for any local requirements. We should also check on zoning and sign regulations that may apply to our business and location. Business Licenses - Some cities charge a percentage of our gross sales and some only charge a fee to operate our business in their city. A food license or permit - is required for the sale of any edible substance. Each state and/or county has their own fees and regulations. It may require inspections by our local health department. For a list of state health departments. Liquor license - A liquor license is a document that allows an establishment to legally sell alcohol. We will need one if we plan to sell alcohol. Liquor licenses are regulated at the state level and sometimes at the local level. The type of license we should apply for depends on which type of alcohol we wish to sell and whom we want to sell it to. Most states require us to obtain one to serve beer and wine and a different on to serve hard liquor. Sometimes there are no new liquor licenses being sold in an area and we would need to purchase one from an existing license holder. Licenses to sell beer and wine are usually issued for yearly and can be easily renewed if we haven't committed any offenses. Typical offenses which can result in loss of our license or disciplinary action include selling liquor to minors or selling liquor we are not licensed for.
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To get a license, we would have to apply with the state beverage control board and then we would need to post a notice at our business of our intent to sell liquor. L-4 Licence is granted to an independent restaurant approved by Department of Tourism, Govt. of India. Such restaurants can apply in the office of the Commissioner of Excise in prescribed form and submit documents as indicated in the application form. The restaurant should be situated in commercial area with adequate parking space. The restaurant has to meet the requirement of rule 11 of Delhi Intoxicants Licence & Sales Rules, 1976 as quoted in case of L-3/L-5 Licences conditions. Rest of the procedure for the grant of Licence is the same as indicated in case of L-3/L-5 Licence. Basic Licence granted by excise department: 1. Grant of L-1 Licence 2. Grant of L-2 Licence 3. Grant of L-3/L-5 Licence 4. Grant of L-4 Licence 5. Grant of L-19 Licence 6. Possession Limit Sign Permit- Before investing in a sign, contact our local municipality to find out if there are any restrictions on the size, location, lighting and type of sign we can use. Also get written approval from our landlord. Music license - Any business that plays copyrighted music whether our have live music, music on hold for our phone or play cds in our restaurant that is copyrighted without a license, can be fined accordingly. Fire certificates - We may be required to be inspected by the fire department before we can open for business. Our local fire department should be able to inform us of the regulations we need to follow. Police permit- Our business may require police clearance or a permit.
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Sellers permit - this is also known as a resale permit; it allows we to avoid paying sales tax on merchandise when we purchase it from wholesalers; this permit is issued through the state entity that is responsible for taxes. Building permits and zoning permits- these are regulated by our local city or county planning department. Call our local building department and ask them what is required. Laws and regulations are always changing, so it is important to join our local restaurant association and National Restaurant Association. It is also a good idea to become active in local government to keep informed about pending changes in our community.
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The restaurant business is one or the few industries which presents an opportunity. Where we can start as a dishwasher and dream of owning our own restaurant – and actually realize that dream. But it takes dedication and a willingness to work long and hard to accomplish your dream. One needs to keep thinking of new ideas and innovate if our are at all you have known all over One needs to survive. The reasons for sickness in the restaurant business can be attributed to Mismanagement, Insensitivity to external factors, Inability to update the business losing sight of the basics. The steps that can be adopted for successful turnaround can be listed as follows: • • • • • • • • • • • • • • Do a proper introspection and strategic analysis. Make a detailed survey of the prevailing business environment. Analyze the repercussions of the changes at the macro level on the business. Write down the lacunae, business sales marketing and operations plans. Meet key personnel and employees. Revise plans. Have discussions with vendors and customers. Contact the bank, tax authorities, and accountant. Keep only essential employees. Revamp. Cut unnecessary cost. Renovate and Innovate. Implement plans. Revise and reassess. Ongoing Innovation.
Innovative Entrepreneurship is by far the most important tool in the hands of an
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Entrepreneur to bring about successful turnaround in the hospitality business. Innovative ideas and ongoing innovation is what will facilitate entrepreneurs to bring about successful turnaround in ailing businesses.
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