Hospitality Business Plan

Hospitality Business
Plan
© Copyright 2017 Vervitude | All Rights Reserved.

NDA
The undersigned (‘Recipient’), hereby agrees that all financial and other information
(“Information”) that has and will receive from Vervitude is confidential and will not be disclosed
to any other individual or entity without prior written consent.
The Information shall remain a joint intellectual property of Vervitude and shall be returned to
Vervitude promptly at its request together with all copies made thereof.
Recipient acknowledges that no remedy of law may be adequate to compensate Vervitude for a
violation of this Agreement and Recipient hereby agrees that in addition to any other legal or
other rights that may be available in the event of a breach hereunder, Vervitude may seek
equitable relief to enforce this agreement in any court of competent jurisdiction.
Date Signature of Recipient
2

About Us
Promoter - Name
ABC is a successful Restaurateur and has
been running restaurant for the last 6+
Years. His passion for food is the reason
behind the restaurant success. Two things
synonymous with restaurant are Quality &
Good service
3
Promoter – Role
*Some Text*

Index
1. Business objective
2. Revenue proposition
3. Roadmap
4. Legal Formalities
5. Menu & Average per cover
6. Restaurant Theme
7. Renovation & expenses
8. Equipment & expenses
9. Inventory & expenses
10. Branding & expenses
11. Marketing Plan | 6 Month marketing plan
4

Index
12. Operations – Systems, processes & expenses Hiring
13. Hiring & training
14. Total Investment
15. Footfall projection
16. Take out & Delivery projection
17. Net Revenue Projection
18. Projected income for investor
19. Consolidated Projection
20. Projected Break-Even point
21. Ownership of Assets
22. Proposed Location
23. Competitors
5

““It is a lesson which all history
teaches wise men, to put trust in
ideas, and not in circumstances.”

1.
Business objective
7

Objective
To setup a profitable and sustainable Fish & Grill
restaurant.
With a combined experience of 15+ years. The
team is a master of this trade, this project is ideal
for any investor looking to invest in a restaurant
and expects good returns with minimum
involvement.
We have built a robust business model which will
let you lean back and see your investment grow.
8

2.
Revenue proposition
9

Revenue Proposition
X% of Net Revenue
*Some Text*
Revenue Terms: X% of net revenue to be paid monthly /quarterly / half yearly or
annually (as decided by both parties) until break-even is achieved.
10

3.
Roadmap
11

Roadmap
12
Task 01-Oct-17 10-Oct-17 20-Oct-17 30-Oct-17 01-Nov-17 10-Nov-17 20-Nov-17 30-Nov-17 01-Dec-17 10-Dec-17 20-Dec-17 30-Dec-17 01-Jan-18
Legal Formalities Start End
Renovation Start End
Equipment Start End
Inventory purchase Start End
Branding Start End
Marketing Start
Billing software Start End
Hiring Start End
Training Start End
Go Live!

4.
Legal Formalities
13

Legalities
Legalities to be completed (not necessarily in the same order):
Borne by Investor:
● Gumasta ₹X
● Registration ₹X
● Fire Safety approval & Equipment ₹X
● Nagarpalika NOC ₹X
● Health Licence ₹X
● Deposit ₹X
Total ₹X
Borne by Restaurateur:
● Trademark
● Logo Registration
● Food Licence
14

5.
Menu & Average per cover
15

Menu Plan
Category Items
Tandoor / Grill Fish , Meat, Veggies
Wraps Veg, Meat, Veggies
Fires Veg, Meat, Fish
Salads Veg, Meat, Fish
Pasta Veg, Meat, Fish
Bread Pita Bread, Brown Pav
Biryani veg, mutton, chicken, etc
Beverages In-house coolers - Fresh Lime, Ice tea, etc
Desserts Brownies, Ice-creams, etc
16
The complete menu & pricing can be shared with the investor once they
have decided to invest in the project.

Average spend per cover
What is average spend per Cover?
The revenue per guest, commonly referred to as the average revenue per cover,
includes both food and beverage.
A restaurant has total sales of ₹10,00,000 for a given month, this comprised of
₹8,00,000 of food sales and ₹2,00,000 of beverage sales. They served 2500
guests.
The average food sales per cover for that month is ₹320.00 and average beverage
sales per cover is ₹80.00. The Average Spend per Cover is ₹400.00 for that month.
This number is calculated considering menu pricing, quantity per serving & type of
meal.
17
1st year 2nd Year 3rd year 4th year 5th year
₹X ₹X ₹X ₹X ₹X

6.
Restaurant Theme
18

Theme
Theme
Rational
Brand building & Consistency
Furniture & Decorations
Uniforms:
Creative Designs & Marketing:
19

Actuals will vary as we wont be doing custom
interiors or furniture.
20

7.
Renovation & expenses
21

Renovation
Renovation
This would include but would not be limited to the following:
22
AC Computer Printer CCTV
Phone Tables & Chairs Artwork Electric
TV Clocks Flooring Lights
Show pieces Cash Counter Fish Tank Music System

Renovation
Renovation Expense
The expected expense for renovation would be around ₹X
Variability
There could be 15% variability in the renovation expense, just in case there are
unknown variables. It could mean the actual cost could be 15% higher or lower
than the projection.
Bills
Bills for all expenses would be submitted twice a month
23

8.
Equipment & expenses
24

Equipment
Equipment
This would include but would not be limited to the following:
25
Grill Fryer Fridges Freezer
Microwave Exhaust Tables Gas
Utensils Steel Counter Cylinders Mixer

Equipment
Equipment Expense
The expected expense for Equipment would be around ₹X
Variability
There could be 15% variability in the equipment expense, just in case there are
unknown variables. It could mean the actual cost could be 15% higher or lower
than the projection.
Bills
Bills for all expenses would be submitted twice a month
26

9.
Inventory & expenses
27

Monthly Inventory & Rentals
Inventory
These would include monthly recurring expenses such as groceries & other utilities
such as tissues, delivery material, utility bills, maintenance expense, salaries etc.
Expense management
This expense would be borne by the restaurateur apart from the first month.
Rentals
The Rentals would be a fixed expense every month paid to the landlord. The
rentals would increase by 10% every 11 months.
28
1st year 2nd Year 3rd year 4th year 5th Year
₹ X ₹ X ₹ X ₹ X ₹ X

Expense Projection
29
*Actuals may vary
Recurring Expense

10.
Branding & expenses
30

Branding - Designing
Designing
The following would need to be designed.
1 x Logo
1 x Restaurant Menu
1 x Delivery Menu
1 x Main Signboard
1 x Banner
2 x Internal Posters
1 x Visiting Card
1 x Letterhead
31
Complete Identity Package ₹75,000

Branding – Printing & Installation
Printing
1 x Signboard
1 x Banner
500 x Visiting Card
100 x Letterheads
5000 – 10000 x Delivery menu
15 x Restaurant Menu
4 x Internal Posters
Installation
Main Signboard
Banner
Internal Posters (Framing)
32
Printing Installation
₹X ₹X

11.
Marketing Plan –
6 Month marketing plan
33

Marketing Plan – 6 Months
Inclusions
1. Facebook Page creation
2. Instagram Account creation
3. Page / account management & updates
4. Marketing consultation based on business performance (4 consultation visits a month). Click here for more
information.
5. Creatives for Cover page and designs for posts
6. 12 posts a month (Thrice a week)
7. Reputation Management (Facebook reviews & Zomato reviews)
8. 5000 Promotional messages (Plan B only)
9. Creating offers
10.Outdoor marketing strategy (Designs & execution not included)
11.FB & Insta Paid ads worth ₹1,500 (Plan B only)
34
Marketing Monthly Cost Billing type Duration Total
Plan A ₹30,000 Monthly 6 months ₹1,80,000
Plan B ₹25,000 One-time 6 months ₹1,50,000

12.
Operations – Systems,
processes & expenses
35

Operations Plan
Hours / Days of operation
10am to 12midnight on all days (Closed - Last Tuesday of every month & Holi)
Tip / Service Charge plan (Internal)
Staffing – 15 Employees
● 1 Manager
● 3 Waiters / Servers
● 10 kitchen
● 1 Delivery
Pay-outs (Salaries)
Salaries would be paid between the 5th to the 10th of every month for the previous month.
Employee Incentive Plan (Internal)
36

Operations Plan
Pay-outs (Vendors)
All vendor payments would be done between 15th to 20th of the month
Employee perks
2 Leaves a month
Advance Salary (subject to approval)
Accommodation
Restaurant Software (Annual)
● Billing
● Inventory management
● Attendance
● Online delivery integration
● Cloud based
● Performance reports
● CRM
37
Restaurant Management
software
₹40,000

13.
Hiring & training
38

Hiring & Training
Hiring
Hiring would commence from 1st Nov (Launch date 1st Dec)
Training
Employee training would be from from 23rd Nov till 30th Nov (Launch date 1st Dec)
39

14.
Total Investment
40

Investment
Expense Amount
Legal ₹X
Renovation ₹ X
Equipment ₹ X
First month Inventory ₹ X
Branding ₹ X
Printing & Installation ₹ X
Marketing ₹ X
Restaurant Management software ₹ X
Security Deposit (Refundable) ₹X
Total Investment ₹ X
41

15.
Footfall projection
42

Footfall projection
43
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
*Footfall Projection
*Actuals may vary

16.
Take out & Delivery projection
44

Take out & Delivery projection
45
*Actuals may vary
Delivery & Takeout

17.
Net Revenue Projection
46

Gross revenue projection
47
*Actuals may vary
*Gross Monthly Revenue

18.
Projected income for investor
48

Projected income for inventor
49
*Actuals may vary
Projected Break even Jan of 2021 – 37 months into the project
Investor Revenue projection (Monthly)

19.
Consolidated Projection
50

Consolidated Projection
51
*Actuals may vary
The above graph compares Monthly expense, Dine-in (Footfall), Dine-out (Delivery &
takeout), Net revenue & Investor Revenue for the first 55 months.
Sep-17 Apr-18 Oct-18 May-19 Dec-19 Jun-20 Jan-21 Jul-21 Feb-22 Aug-22 Mar-23
Expense vs Footfall vs Dine-in vs Dine-out vs Net Revenue vs Investor
Revenue
Recurring Expense Delivery & Takeout Net Revenue Investor Revenue (Monthly) Footfall

20.
Projected Break-Even point
52

Cumulative Income – Break Even point
53
*Actuals may vary
Projected Break even Sept of 2020 – 37 months into the project
Total projected revenue would be ₹45 Lac+ this would be in addition to the ownership of
restaurant assets.
₹ 0
₹ 5,00,000
₹ 10,00,000
₹ 15,00,000
₹ 20,00,000
₹ 25,00,000
₹ 30,00,000
₹ 35,00,000
₹ 40,00,000
₹ 45,00,000
₹ 50,00,000
TotalIncome Break-even and Total Revenue

21.
Ownership of Assets
54

Ownership of assets
Physical Assets
All physical assets would be the property of the landlord / investor. This would
include but would not be limited to equipment, furniture, artwork, etc.
Intellectual and non tangible assets
All intellectual assets such as menu, brand, digital assets such as online pages &
content, logo, software, systems, process, etc. Would be the property of the
restaurateur.
Grey areas
In case of things that would fall under both or neither of categories, both parties
would have come to agreeable terms. An example would be, new equipment
added.
55

22.
Proposed Location
56

Location
Location
The restaurant is proposed
to be setup in ____________.
It is right off the main road
and surrounded by few
other food joints making it
an ideal location.
Space
The available space would
be around 800-1000 sq feet
and would be able to seat
60 guests at a time.
57

Space & Seating Plan
Seating Plan
We would create a formal seating plan (like the one above) once we have the
investor on board.
58

23.
Competitors
59

Competition
60
Takeaway Restaurant
Devas
Merwans
All the above restaurants are within 1KM range from the proposed location.

₹₹ X*
Total projected revenue over a period 55 months + Restaurant
Assets!
X* people will be served
Total number of people that will dine-in over 55 months*
61

₹X*
Total expected Projected Turnover over 55
months.
Now that’s a big number!
62

Contact Us
our office
63
info@Vervitude.in Jay : +91 84509 43379

64
THANKS!
Any questions?
You can find me at jay@vervitude.in

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