Business Plan for Indian Restaurant

Business Plan for Indian Restaurant BUSINESS PLANNING UNIT SIX FOR THE NEW RESTAURANT CALLED ‘THE STAR OF INDIA’, AN INDIAN CUSINE. CONTENTS PAGE (Jump to) SECTION 1 Business name Business activity Type of Ownership Objectives SECTION 2 Market analysis Price list of Potential suppliers Competitors Information on Banks Loans Target Market Competition Analysis SECTION 3 Marketing plan Price list for Items in the ‘The star of India’ Place Promotion SECTION 4 Production process SECTION 5 Resource requirements Financial resources Physical resources SECTION 6 Financial analysis and planning Sources of funds Business Plan for the new restaurant called ‘The Star of India’. SECTION 1 Business name and address: The Star of India 137 Earls Court Road London SW5 Business activity: The new restaurant will sell a wide variety of Indian Cuisine from its secondary retail location which is the Earls court area of London. The different types of foods that will be served in the restaurant will include Samosas, Nan bread, Tandoori, rice, biryani, balti, jalfrezi, karahi, bhuna, vindaloo, madras, noodles, burgers, desserts, beverages, special dishes, and side orders such as aloo and potatoes as appropriate for the different seasons as it unfolds. In addition, the restaurant will provide a free delivery service for orders above  £10 within a 3 mile radius, and will also include a 10% discount for orders above  £15. Suppliers will include retail outlets in the Earls court area that sell Asian foods such as Rajah and TRS products from wholesale suppliers in Earls court, Wembley and Southall, which are established cash and carry wholesale outlets for Indian foods in the London area. Wholesale stores such as Tescos and ASDA will also be visited if necessary. Type of Ownership: In this case the business will be a partnership based business, in which the major stake holder will control 55 percent of the whole business and the remainder will be controlled by 3 other stakeholders (4 stakeholders’ altogether). Objectives: The objective of the business is to provide high quality prepared foods and high quality service to the general public. In addition, we foresee to generate sales in excess of  £100,000 in the first year! SECTION 2 Market Analysis: Primary Data A questionnaire was not deemed appropriate as the area of location does permit an influx of people, in which it can be said with hind sight that it will be worthwhile to press ahead with the opening of the business. Price List: The following is a table of a price list for potential suppliers: Gandhi Oriental Foods Southall Food Suppliers Rajtha Food Suppliers (Wembley) Pounds ( £) Pounds ( £) Pounds ( £) Bag of gold self raising flour 25kg 8.25 7.99 7.99 Case Barson (Gram Flour) 6 bags 2kg 8.45 6.25 7.99 Drum vegetable oil 15 ltr KTC 7.79 5.99 6.99 Tin Mustard Oil 4 ltr 4.45 3.99 4.99 Tin pure ghee 2 kg 6.25 5.99 5.49 Tin chilli powder 18.9 17.99 17.99 Tin haldi (tumeric) powder 14.9 12.99 13.99 Cinnamon 2kg 5.45 4.99 5.25 Packet Tejpatha (Bay leaves) 750 grams 3.45 2.99 Case boiled chick peas (12) 411 grams 2.85 2.99 2.99 Packet Chana Dai 2kg 1.95 1.99 0.99 Jar mint sauce 3kg 2.95 2.99 1.99 Bag Salt 12.5kg 2.95 2.99 1.99 Case cathey container 26.9 25.99 22.99 Case carrier bag large 250 12.49 11.99 11.99 Case Cobra Beer large (12) 650ml 16.5 13.99 13.5 Kingfisher beer (12) 660ml 16.95 14.99 15.99 Basmati Rice (2kg) 12.99 11.99 12.99 Tilda Rice (2kg) 14.99 13.99 13.99 Sureeya Rice (2kg) 11.99 9.99 9.99 Lamb (per kilo) Chops 3.99 3.99 3.99 Liver and Heart 2.17 1.99 2.17 Leg 7.49 6.99 7.5 Shoulder 7.29 6.99 7.25 Back Chops 6.19 5.99 5.7 Chicken (per kilo) Leg Boneless 3.65 2.99 3.45 Wings 2.99 2.99 2.99 Roasters 2.17 2.25 2.2 Leg 1.18 1.25 1.1 Boneless 4.99 3.99 3.99 Sheep (per Kilo) Chop 3.5 2.99 3.25 Neck 2.64 2.49 2.5 Ribs 2.17 1.99 1.99 Leg 4.99 4.99 4.99 Shoulders 4.89 4.99 4.5 Back Chops 4.15 3.99 3.99 Competitors: Names Strengths Weaknesses Lapappardella Ristorante (Italian) Located off earls court road, very busy at weekends. Limited range (mainly pasta) Zizzi (Italian Restaurant) Located on the high street (Earls court road) New and modern European) It is a bit cramped in the sitting area Nandos Restaurant Very popular for its grilled and flamed chicken. Very busy at most times of the day and weekends. A very strong competitor Limited range of food served (mainly chicken) Dragon Palace (Chinese Restaurant) Very competitive in terms of its different types of foods served. It is cramped with limited space for more customers Masala Zone Recently opened and new in the area. It serves mainly Indian foods. It is a powerful competitor as its items are geared towards city life, i.e. city workers etc. It is not as popular yet. It range of items sold to the public is limited. Bibimbub (Oriental fusion dishes) Quite a wide variety of oriental dishes and cuisine. Very busy at the weekends Its foods are geared towards nutritional and healthy diets Although located on the high street, it is very cramp with limited space for a large number of customers to eat. Lotus Garden (Chinese restaurant) A wide variety of Chinese food As mentioned the sitting area is cramped. Information on Bank Loans: Having carried out an in-depth search for the best rates offered by banks, one came to the conclusion that the rates offered by the Halifax, offered the best rates when it came to obtaining a bank loan. For loans between  £5,000 and  £100,000, there is a variable discounted rate of 0.10% below Bank of Scotland Base Rate. For the remaining term of the loan the rate then changes to 3% above Bank of Scotland Base Rate and remains on variable rate terms for the rest of the loan. For the fixed rate business loan the rates are published on the Halifax website every fortnightly, in which the interest rates are based on LIBOR (London Inter Bank Offered Rate) plus a margin. In addition, security is required on any property or assets that this agreed with the bank. The overall cost of comparison is 11.1% APR. The actual rate available will depend upon the outcome of the initial start-up capital. Secondary Data Most of the information collated with regards to the price of items and competitors were gathered by the stakeholders of the restaurant. The factors that are deemed as possible effects on the demand for the service are: The price of the items sold to customers. The quality of the menu and how it is served to customers. The type of products used to serve the menu items, e.g. fresh farm produce, organic foods, and completeness. The customer service offered to customers will be a deciding factor in how the restaurant is viewed on from its initial opening. The way the competitors mentioned above respond to our presence in the Earls court area will play a part in how our customer base grows. The state of the economy, e.g. rising personal incomes, changes in interest rates and the change in house prices. In addition, because Indian cuisine has been a rising trend in British society over the past 6 years, it is expected that the demand for this growing in-fashion trend will continue to rise for the foreseeable future. Target Market: The majority of existing customers we expect to come into the restaurant will be based within a 4 mile radius of the Earls court area. Typically, they will be single people, couples, tourists and families all wanting to go out and have a good meal. It is expected that they will be middle class and above, who come from very affluent backgrounds. Most of the potential customers expected will be people who earn on average, incomes starting from  £17,000 upwards. Competition Analysis: The potential strengths and weaknesses of competitors have been commented upon in the competition table. In retrospect, it is believed that the prices we will be offering with regard to items on our price list will be set below the average price of our major competitors mentioned i.e., Masala, Zone, Nandos, and Zizzis. This will enable us compete with our competitors head-on and with hind sight we will be able to carve out a growing market share into the future for the business. In addition, the items we are offering has a much wider range than our competitors in which the quality of the products used (fresh farm produce and organic), will set us above the competitors mentioned. Also, the service we ascribe to present to customers will be far reaching than our competitors. I.e. a waiter/waitress will always be on hand to attend to customer questions, taking customers to their table, and always making sure that the customer is satisfied with how they are being treated and offered in the ‘Star of India’ cuisine. SECTION 3 Marketing Plan: The use of the marketing mix will be used to start off the business. They are product, price, place and promotion. Product/Service: The product / service that will be offered to customers as a whole will mainly be organic foods which include fresh farm produce from suppliers, whole sale outlets and also canned items from the suppliers mentioned above. The service will consist of customers coming into the restaurant to have a meal or take away, in which there will be a seating area for smoking and non-smoking. Also, a waiter/waitress will be on hand to serve and assist customers on the wide range of different cuisines available. As stated previously, there will be a free delivery service for orders above  £10 and a 10% discount on orders above  £15. This will change subject to seasonal demand. Price: The use of pricing strategies such as penetration pricing, promotional pricing, and price discrimination will be used to market the items offered by the restaurant. Penetration pricing will be used to set a low initial price in order to penetrate the market quickly and deeply, so as to attract a large number of customers quickly and win a large market share. With time the high sales volume will result in falling costs, allowing the restaurant to cut its price even further. With promotional pricing, the restaurant will temporarily price its items or products below the list price and sometimes even below cost. This will take several forms. I.e. a few items or products will be priced as loss leaders so as to attract customers into the restaurant in the hope that they will buy items at normal mark-ups. Price discrimination will be used to offer customers different prices for the same items or products offered by the restaurant. For example, if a customer ordered a special dish, it would automatically come with a side order of rice, in which the price is already included in the price of the special dish. However, if they ordered rice separately and the sauce separately, they would have to pay different prices for the two items. Price list for ‘The Star of India’ The Star of India Appetisers Price ( £) Chicken Samosa  £3.20 Veg Samosa  £3.20 Lamb Samosa  £3.20 Papadom  £0.40 Sheek Kebab  £2.40 Shami Kebab  £2.40 Chicken or Lamb Tikka  £2.40 Chicken Chatt  £2.40 Aloo Chatt  £2.40 King Prawn Butterfly  £3.50 Potatoes of the day  £2.75 The Star of India Breads Nan  £1.30 Keema Nan  £1.80 Vegetable Nan  £1.80 Peshwari Nan  £1.80 Garlic Nan  £1.80 Balti Nan  £1.80 Paratha Nan  £1.40 Stuffed Paratha  £1.80 Tandoori Roti  £1.20 Chapati  £0.80 The Star of India Tandoori Delicacies Half Tandoori Chicken  £4.70 Whole Tandoori Chicken  £9.20 Chicken or Lamb Tikka  £4.70 Chicken or Lamb Shaslik  £5.50 Coconut Chicken  £5.50 Tandoori King Prawn  £8.40 Garlic Chicken  £5.50 Tandoori Mixed Grill with nan  £7.95 The Star of India Rice Delicacies Pilau Rice  £1.60 Boiled Rice  £1.50 Mushroom Rice  £1.95 Egg Fried Rice  £1.95 Lebu Rice  £1.95 Garlic Rice  £1.95 Narial Chawal  £1.95 Vegetable Rice  £1.95 Special Fried Rice  £1.95 Keema Rice  £2.25 The Star of India Biryani Delicacies Chicken, Meat or Prawn  £5.50 King Prawn  £8.40 Chicken or Lamb Tikka  £5.75 Tandoori Chicken  £5.75 Vegetable  £4.95 Mushroom  £4.95 The Star of India Special  £6.50 The Star of India Balti Delicacies Chicken, Meat or Prawn  £5.75 King Prawn  £8.40 Vegetable  £4.80 The Star of India Special  £6.95 Chicken or Lamb Tikka  £6.75 Chicken, Meat or Lamb Sagwala, Jalfrezi, Dhansak  £5.95 The Star of India Jalfrezi Delicacies Chicken Jalfrezi  £4.60 Prawn Jalfrezi  £5.70 Lamb Jalfrezi  £4.60 King Prawn Jalfrezi  £7.40 Chicken Tikka Jalfrezi  £5.60 Lamb Tikka Jalfrezi  £5.60 Vegetable Jalfrezi  £4.95 The Star of India Karahi Delicacies Chicken Karahi  £5.20 Prawn Karahi  £5.70 Lamb Karahi  £5.20 King Prawn Bhuna Karahi  £7.40 Chicken Tikka Karahi  £5.60 Lamb Tikka Karahi  £5.60 Vegetable Karahi  £4.95 The Star of India Bhuna Delicacies Chicken Bhuna  £4.40 Prawn Bhuna  £5.40 Lamb Bhuna  £4.40 King Prawn Bhuna  £7.40 Chicken Tikka Bhuna  £5.70 Lamb Tikka Bhuna  £5.70 Vegetable Bhuna  £4.95 The Star of India Vindaloo / Madras Delicacies Chicken / Lamb Curry  £4.10 Chicken / Lamb Madras  £4.50 Chicken / Lamb Vindaloo  £4.50 Prawn Curry / Madras / Vindaloo  £4.80 King Prawn Curry / Madras / Vindaloo  £6.50 Vegetable Curry  £3.95 The Star of India Noodles Malabar Seafood  £5.70 Chicken Madras  £5.20 Konkan Chicken  £5.20 Malabar veg  £5.20 Veg madras  £5.20 The Star of India Burgers Lamb Burger  £5.20 Chicken Burger  £4.80 Veggie Burger  £4.80 The Star of India Special Dishes The Star of India Special  £5.90 The Star of India Khazana  £6.95 Nawabi Chicken  £5.90 Murgh Charga  £5.90 Achari Chicken  £5.90 Chingri Bahar  £7.95 Lamb Nashilee  £5.90 Ghoust Laziz  £5.90 Jerra Chicken Massala  £5.90 Kufta Massala  £5.90 King Prawn Delight  £7.95 Shaslik Massala  £5.90 Garlic Green Chilli Massala  £5.90 Special Tandoori King Prawn Massala  £7.95 Butter Chicken  £5.90 Peshwari Chicken  £5.90 Black Pepper Chicken  £5.90 Black Pepper King Prawn  £7.95 Chicken Tikka Podeena  £5.90 Chicken Tikka Massala  £5.90 Chicken Tikka Pasanda  £5.90 Chicken Tikka Markhani  £5.90 Chicken Rezala  £5.90 The Star of India Desserts Gulab Jamun  £2.10 Falooda  £3.00 Chocolate, Vanilla, and Raspberry Ice Cream  £2.10 The Star of India Beverages Fruit Juices  £1.30 Mango and Coconut Lassi  £1.20 Masala Chai  £1.00 Coke or Diet Coke  £0.65 Mineral Water  £0.65 Place: The business will be located in the Earls Court area of central London. The reasoning b