UNIVERSAL BUSINESS SCHOOL Karjat, Mumbai
Program name: MBA (Finance)
Professor and Tutor: Mr. Bibhas Bhasumatary
Student Name: Geetika Mahajan
Roll Number: MBA3/1323
Date of Submission: 28 March 2014
Assignment: Launching a waiter free restaurant.
PRODUCT LAUNCH: “ Launching of a Waiter free restaurant”
BRAND: “ Cuisine of INDIA”
Executive Summary and Opportunity Analysis
This is a restaurant service which would be operated in greater cities like Bombay, Pune, Banglore, Delhi,
Chandigarh which would provide personal space to the customers we serve. By adding a technical touch
to it. This restaurant service is a kind of service which gives customer privacy to spend more time with
their love ones. In INDIA we generally don’t get privacy in restaurants specially for couples. We plan to
provide more privacy to various types of customer by giving them a waiter free zone as well as a private
space (HUT) . Currently we have serious issues in INDIAN restaurants. Those are as follow as:
There are many disturbance in INDIAN restaurants.
They don’t provide a total privacy to the customer.
Many of the waiters are rude to them.
Customers do not have the privileged to play their personal favourite music.
Indian restaurants have a big privacy problem in INDIA because we have people screaming to their
throats mainly talking to the person nearby or else on their mobile phones . We generally do not get
privacy inside the restaurants for our loved ones and family. We always have somewhat disturbing our
privacy so we have focused our attention towards providing privacy to the customers. By adding
technological touch to the restaurants which thus bye eliminating the need for not only disturbance but
also waiters. We provide a personal I pad menu card and a credit card swiping machine. On which the
customer can order the cuisines they like as well as paying for that on the swiping card itself. So after
ordering the menus they like the order will be delivered to them through a mini train which will bring
their food they have ordered as well as when they are waiting for their order they can play music of
their choice in the hut or space they are siting giving them a personal privacy. And also if they have any
problem with the service they are getting they have a buzzer in the space or hut so that they can call the
manager to the rescue and have their problem solved. And also they can adjust the environment to their
choices as we can see that the more costlier the restaurants is the less the lights are in that restaurants.
So we have given a choice of self adjusting lights according to their choices they want so that they have
all independent choices and also the touch of intelligent technology.
Market size and Future projections:
The INDIAN organized restaurant chain market has witnessed an upward trend and has grown at a CAGR
of 19.1% from FY 2013 where it has witnessed revenues of INR – crores in FY 2013 growing from INR –
crores in FY 2008. The organized chain market in India includes a large no of players in the QSR, full
service, PBCL and the food court segments. The market has significantly expanded primarily owing to
the high demand among the large Indian population over the years.
The Quick Service Restaurants (QSR) and the casual dining restaurant account for a major share of the
revenues of the organized chain market in India. The QSR’s and the casual dining restaurants together
contributed a market share of 80.60% in FY’ 2013 to the organized restaurant chain market. The revenue
from QSR’s reached to INR-crores in FY’ 2013 and the casual dining restaurants registered revenues of
INR-crores in FY’2013.
POLITICAL AND LEGAL
The Restaurants industry is amongst the fastest growing industry in India. According to a recent food
services Report 2013 by National Restaurant Association of India (NRAI), market size of India’s
restaurant sector is Rs. 247,680 crore ($48 billion). This sector is 24 times bigger than the film industry
and $9 billion ahead of the telecom sector. And, it is projected to swell to Rs. 408,040 ($ 78 billion) by
2018 at a compounded annual growth rate (CAGR) of 11%
This budding Industry is
presenting a lot of
entrepreneurs who are
willing to set up their own
restaurants in some part of
country . Recently, a national
court had ordered 34
restaurants in Delhi’s Hauz
Khas village to be closed
because they are operating
illegally without necessary
pollution permits. We have
listed different types of
licenses issued by various
bodies that are mandatory as per NRAI guidelines.
The following are the licenses required for opening a restaurant in India:
Food safety license – issued by a Food Safety and Standards Authority of India (FSSAI)
Health/ Trade license – issued by Municipal Corporation / Health Department of the concerned
Eating House License – Acquired from licensing police commissioner of that city .
Environmental clearance – Issued by the concerned authority in the state .For Delhi it is
pollution control committee (DPCC).
NOC from fire Department – Obtained from fire department of the concerned state.
Signage license – Municipal committee and corporation of the concerned city.
License mandatory for service of liquor in the restaurants :
Liquor License L-4 (L-17 as per new Excise Rule)- Issued by local Excise Commisioner
License mandatory for Playing recorded / Live music in the restaurants:
Playing of music in restaurants – can be obtained from Phonographic Performance Limited
(PPL)/ Indian Performing Right Society . This license becomes mandatory when you are planning
to play recorded or live music of two or more members of PPL.
In addition you are required to Register under the Following Sections and Act :
Nominations under PFA Act 1954 Section 17(2) and Rule 12 B of the Rules 1955- Director
Prevention of Food Adulteration of the State.
Shop and Establishment Act – As prescribed in the Act and as the applicable to the state
Restaurant is indeed a lucrative business, particularly in a country like India where people have
taste buds for Food from across the World. If you dream of becoming a successful restaurateur ,
do ensure that include all these license while conceptualizing your business plan.
In India, the population and per capita income of individuals are increasing. With rising urbanization,
growing industrial and business development and increasing standard of living in metro cities. Citizens
are ready to pay premium for dining and cuisines if provided with nice ambiences and good food as well
as a little bit of privacy.
India’s middle class is expected to grow from around 160 million in 2011 to 267 million in 2016 (Ernst &
Young GM Limited, 2012). The third quarter 2013 Indian consumer spending had increased 2.1% yoy to
INR 8,552 billion and the GDP per capita (adjusted for purchasing power parity PPP) increased
approximately 2% to USD 3,340 (Trade Economics, 2014). As consumer’s standard of living improves, it
will have more money to spend on convenient and alternatives means of travel.
In India we do not get to see a technological advanced restaurants and rate at which the technology is
advanced in we expext to have more restaurants like our in every city.
Customers can reserve their HUTS, SPACES in restaurant online.
Customers can buzz the manager if find any problems in the service provide.
They can have that personal light setting ambience and music according to their choice.
They can browse through the themes provided by us. Valentine day special, Independence day,
Diwali, Holi, Rakshabandhan with the respect to the festival celebrated in India.
Currently “CUISINE OF INDIA” will operate in a completely new category. It will be operating in Metro
Cities. Other types of restaurants and Pubs in metro cities.
Strengths and weakness of different types of Restaurants
PUBS People were feel relaxed Lot of noise , disturbance
HOTELS High quality food Disturbance , rude behavior
RESTAURANTS High quality food Disturbance , rude behavior
Competitive Analysis of different restaurants:
Analyzing the Restaurants using five force portal’s model:
Bargaining power of suppliers: The suppliers of raw materials usually have power over industries. The
bargaining power is in the price for the materials provided. Some industries have a lot of suppliers, but
some do not. Those industries that have only few suppliers can suffer, because suppliers can charge any
price they want.
Bargaining power of Buyers: Within a restaurant industry, the bargaining power of customers is very
essential aspect. This is because the prices should always be kept not higher than the competitors’
prices. In this case customer’s power is strong as customer might set the price. As soon as prices are
increased way too much, the clients will leave our restaurant and find another one. However, the idea of
our business is that we are the restaurant for students that provide food and drinks for quite reasonable
prices. So this power can be medium.
Threat of New entrants: The threat of new entrants to the market in the restaurant industry is very
high. This is because there are extremely low barriers to entry. It is not so expensive to start up the
restaurant business, that is why there are often a lot of new entrants.
Threat of substitute Products: As there are a lot of other restaurants in the city and each of them
offer their specific kind of food, the threat of substitute products becomes very high. One of the main
solutions of decreasing the threat is to keep in touch with customer preferences and offer wide range of
products. If this solution is implemented successfully, the restaurant can maintain a competitive
advantage over rival firms and be able to keep customers rather than lose them to substitute
Competitive rivalry within an Industry: Competition among firms is very high in restaurant industry.
People always need to eat and a lot of them like to do it in restaurants. Therefore, more and more
restaurants are being opened, causing higher competition. As a result, one of the main aims for each
restaurant is to gain a competitive advantage among other restaurants. This can be done in several
ways: changing prices, improving product differentiation or providing special discounts. The prices
should be carefully made and not exceed the competitors’ prices. As soon as it is getting clear that the
number of customers has been decreased, the new offers such as product differentiation or special
discounts can be provided in order to get back old customers and attract new.
Segmentation , Targeting , Positioning
Segmentation for “CUISINE OF INDIA”
“CUISINE OF INDIA” Restaurant is divided into four groups :
By Price: Some restaurants segment the market by offering food at a low price. They know
that office workers, for example, eat out regularly but can’t afford to pay $10 or more each day
for lunch. These restaurants offer fewer menu items, smaller portions and fewer amenities,
targeting the large market segment that wants to eat a good meal without paying more than $6
or $7. Some restaurants offer high-priced menus to create perceived value, targeting affluent
diners who want a complete experience. These restaurants offer upscale interiors, use
expensive ingredients, offer expansive, exotic menus and might serve wine or liquor.
By Service: Many people who eat out do so because of necessity, rather than a desire for an
experience. Restaurants who want this segment of the marketplace offer quick service,
including counter, buffet, self- or drive-through service instead of traditional seated dining with
a server. These restaurants combine fast service with low prices to offer multiple benefits to
customers. Upscale restaurants offer more service, including guaranteed reservations, valet
parking, music, a wine sommelier and tableside preparation of some items.
By Customer Type: Restaurants often use consumer demographics to guide them in
developing their brand or concept. For example, if a restaurateur is located in a community with
a large number of retirees, he might open a low-service, moderately priced restaurant. If the
area has a large number of affluent young people, the restaurateur might offer an international
menu, craft beers and live music. In a college town, restaurants know to offer a balance
between low prices and a fun atmosphere.
By Cuisine: One of the easiest ways to segment a restaurant market it by the type of food you
offer. This allows you to offer two more benefits. For example, if your specialty is Italian food,
you might create an upscale Tuscan eatery, open a low-cost pizzeria, or offer family and senior
dining. If your area has a large ethnic community, you can target that group, offering milder,
less-authentic menu items to attract outsiders who enjoy that cuisine. If there are no other
seafood restaurants in the area, customers might be wiling to pay more for that type of
A target market is a group of individuals that share certain characteristics. Age, gender, income,
interests, education, parenthood, marital status, lifestyle preferences and geographic location are a few
of these characteristics. The more you know about the specifics of your target market, the more refined
and successful your marketing strategies will be.
HIGH PRICE LOW PRICE
“Cuisine of India “ market objectives are:
Customer satisfaction and loyalty..
Generating a restaurant Traffic.
Building the restaurant Brand.
Achieving specific financial goal.
Serving Quality Food at fair prices.
“Cuisine of India” service focused on serving our customer by providing comfortable , privacy , good
quality food at reasonable price.
“Cuisine of India” service is at the introductory stage of its product life cycle. There will be
totally privacy and waiter free service provided to the customer. Private huts ans space will be
provided to the customer according to the no of Peoples. The huts used for the lovers and 2 -4
people. And Big cabins provided to the Family for spend their lovely time with their family,
without any disturbance. Now I can show you the images for the huts where lovely couples
spend their lovely time and that remember forever.
Second Image for the Families who spend their time with their members and make them
These both will be modified such that it provides comfort , privacy, good quality of services to the
customers. More things will be included that as follows:
1. An air-conditioning huts and cabins of the restaurants.
2. Free internet facilities for their customers.
3. Music will be played according to their choice.
4. Lightening system change according to their choice.
5. Waiter free restaurant, Ordered will be delivered through maini trains.
6. Ipad will be provided for the menu and cash paid through swiping machine.
7. Provide full privacy to their customer.
8. If they face any problem regarding service in their huts or cabins buzz system provided when
they use that buzz manager will come and solve their problem.
9. Each Restaurant will have the Te – amo Brand logo placed at the roof toop.
Total Product for the “cuisine of India service”:
“TE AMO” will be the brand of the company . TE AMO is an Spanish word which signifies “LOVE”. The
brand image will be logo which I create from the logo website. “cuisine of India” provides a best service
for the loved ones and spread the message when they go outside with their families the privacy will be
provided and also disturbance remove it. So my service signifies that give more time to the families at
special occasion that’s why my Brand name is TE-AMO.
TE-AMO SOURCES OF ADDITIONAL REVENUES:
TE AMO SERVICE
Other sources of revenues (INR) Per
Yr 1 Yr2 Yr3
Advertising on Restaurant (INR) Per
External Branding 2 lac 2.5 lac 4 lac
Internal Branding 1.2 lac 1.20 lac 1.70 lac
Tie up with the marketing research
3.2 lac 3.7 lac 5.7 lac
Since TE-AMO is a new service in a existing segment , there is no direct competition in the service
category. TE – AMO will not be able to adapt a particular pricing strategy because the pricing of all
restaurants is fixed according to the Brand.
PLACE AND PROCESS STRATEGY:
TE-AMO will have a direct distribution service as it is a B2C Business. Customer can directly contact the
TE-AMO team to book the cuisine. They have even go online and use their Website for booking. There is
no intermediary between the restaurant and the customer.
DISTIBUTION CHANNELS OF TE-AMO:
ON TIME BOOKING
In this Distribution channel Customer can directly booking through online for a lovely time with loved
ones , or they can booked their service on time. Service available directly to the customer without any
HIERARCHY STRUCTURE OF TE- AMO:
TE- AMO MONTHLY COST:
MONTHLY COST (INR) BASE RATE NO OF EMPLOYEES
YR1 YR2 YR3 YR1 YR2 YR3
Manager 10,000 12000 15000 1 1 1
CHEF 8000 8800 9680 20 20 20
MAINTENANCE OH MINI TRAINS 5000 5500 6000 1 2 2
11ooo 11800 12500 1 1 2
4000 4500 5000 5 5 5
CARE TAKER 3000 3500 4000 7 8 8
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