Business plan of paratha takeaway


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Business plan of paratha takeaway

  1. 1. Business plan for takeaway outlet Authors: Babar Malik and Farooque MalikParatha Take Away Outlet – Business PlanThis is a business plan for a Paratha / Paratha Roll outlet in Islamabad that will serve the middle incomegroups. There is a niche for this type of exquisite item in the market that would cherish the service leveloffered in traditional variety of eateries. We shall offer a variety of Parathas, i.e. Potato, Qeema,Raddish, Caulifluar, Cabbage, Achar, Chanay Ki Dal, Chicken, etc. In addition to Parathas, the ParathaRolls would consist of Tikkas, Kebaks. A successful example of this business model could be optp (OnePotato Two Potato). We plan to start with 2 stationed windows in F10, and one on wheels in the Bluearea.MARKET SEGMENTS:The customers for eatery industry in Islamabad can be classified into following segments:  Exotic: This segment consists of top executives and business people who can afford to spend Rs. 1000/- or more per meal. They eat in small groups, mostly to entertain peers from social networks, and clients. Excellent quality and taste in an exquisite environment is required. Personalized service is important for this segment.  Executives & professionals: This segment includes top and senior executives and business people who spend Rs. 500/- to Rs. 800/- per meal. They eat in groups, socializing with peers from professional networks. The variety in menu offered, taste, environment and the service level is important to this segment.  Quick and convenient: This segment represents the population that spends Rs. 300/- to Rs. 500/- per meal. They have quick working-lunches in groups. They prefer quick served meals at affordable quality and taste. The environment, freshness of food and the service level is important to them too.  Bargainers: This segment consists of a population that affords to spend Rs.100/- to Rs. 200/- per meal. They are price conscious consumers who are less keen on service quality and environment. This group may also include students, office workers and white collar professional. Local taste and local food-meal is of primary importance to this segment.TARGET MARKET:Our target market will include Bargainers segments, and Quick & Convenient segments from the F-10sector, and Blue Area, Islamabad.Two geographical locations were considered and compared to opening the Take Away outlet. A blueaura in Islamabad was compared with the F-10 sector for peak and off peak hour traffic. The data in 1
  2. 2. Business plan for takeaway outlet Authors: Babar Malik and Farooque Malikfollowing tables provides capacity of each restaurant in terms of number of tables, occupancy between1PM to 2PM (i.e. peak hour traffic) and 4PM to 5PM (i.e. off peak hour traffic). Blue Area Restaurants Between 4PM to Between 1PM to 2PM 5PM %age of Number of tables %age of occupancy occupancy Savor Foods 117 97% 48% Bar BQ Tonight 23 78% 30% Subway 14 57% 28% Wang Fu 26 42% 23% Haleem Ghar 17 58% 41% F10 Sector Restaurants Between 4PM to Between 1PM to 2PM 5PM %age of Number of tables %age of occupancy occupancy K.F.C 19 94% 47% Pizza Hut 24 79% 50% Haji Resturant 8 25% 25% Rock Bistro 21 52% 38% Italian Oven 18 55% 33%On the basis of information in tables and prices that these restaurants charge, we have made thefollowing observations:  The blue area has higher density and generates high sales volumes but competition here is also very high.  Competitors in Blue Area include local giants like Savor Foods, which serves Pulao at approximately 150/- per head, and Haleem Ghar that too falls in the same price range.  In comparison, F-10 has a lower flow of clientele but the competition is also less. There is hardly any competition in the bargainers segment in F-10. This segment can be a substantial potential  Initially sales volumes in F-10 would be lower but better unit prices are obtainable, since most food outlets are charging Rs. 300/- or above on their meals. A new market niche will be created in F-10 for a nice local food at affordable prices.  Meal-on-wheels could be a good attraction for the Bargainers segment at Blue Area. 2
  3. 3. Business plan for takeaway outlet Authors: Babar Malik and Farooque MalikCUSTOMER NEEDS OF THE TARGETED MARKET:The existing outlets offering local foods have an insensitive service level and relatively poor hygiene. Thissituation creates a condition that the customer seeks to fulfill the following needs in his experiencing theservices of a Take Away outlet.  Affordability/Reasonable prices  Tasty, fresh, hygienic and fulfilling meal  Easy to consume  Just In Time services  Convenience in approachability to the outlet  Sense of hygiene, physically and visibly is prevalent in the structure of the outlet  Very tidy and orderly space set up for the customer  Repeatedly reliable in meeting customer’s expectations of a good traditional ParathaPOSITIONING:  The ideal position for our brand is to appear unique and solo. The possible position statement would be “Tasty Paratha Take Away , with excellent quality, clean and quick services. Available at two areas”  We seek to position our Paratha as an addition to the existing options of meals available to the customer.  We seek to build our differential advantage on our position in the market. Our product variety, design and offering should be helpful in creating this impression.CRITICAL SUCCESS FACTORSCSF 1: Customer convenience and satisfaction with the products and services must be maintained at alltime.  Conveniently approachable site  Parking space available  Main cluster area of our market  Easily recognizable identity  Neat and clean service  Satisfying quantity  Courtesy in serviceCSF 2: To devise strategies and a score card to be able to efficiently operate and manage the outlets at 2areas simultaneously. 3
  4. 4. Business plan for takeaway outlet Authors: Babar Malik and Farooque MalikCSF 3: Recruiting, training and retaining core staff that is involved in the delivery of high quality productsand services.CSF 4: Developing, communicating and managing operating procedures to ensure consistent quality andreduce line wastages  Managing purchases  Managing an economy of production  Maintaining quality and taste in food  Daily cooking preparations  Identifying and control pilferagesSTRATEGIC OBJECTIVES:Objective 1: Make profits in the first year of operationsObjective 2: Acquire customer from the target marketObjective 3: Maintain a high customer satisfaction levelPRODUCTION PLAN:  There will be an open Kitchen that can be viewed by the customers while placing the order in the window. This will help in creating a perception of transparency and hygiene in food being served.  We will have a capacity to serve more than 300,000 customers per year with 2 stationed windows in F10, and one on wheels in the Blue area.  An area of 300 sq. feet with a rent of Rs. 50,000 per month could be sufficient to begin the outlet.  Customers will place an order at one of the three tills and will receive an order number after making payment. The order will be served between 3-6 minutes based on order size.  The kitchen and the service staff will be dressed up in neat and clean uniform with disposable serving gloves.  A high level of hygiene will be maintained at all times.STAFFING PLAN:  Following is the staffing plan for our Take Away restaurant: 4
  5. 5. Business plan for takeaway outlet Authors: Babar Malik and Farooque Malik Staffing Plan Designation Number Monthly salary Annual Salary Salary/person Cooks 3 60,000 2,160,000 20,000 Kitchen service staff 3 36,000 1,296,000 12,000 Cashiers 3 36,000 1,296,000 12,000 Total 9 132,000 4,752,000 136,000 Manager 1 80,000 960,000 80,000MARKETING PLAN:1. Product and Service:  The product will be fulfilling in its eatable content (Belly-full)  The product will be served in a way that it will be easy and fast to consume without oiling the hands.  The service level will be maintained to cater to customer needs discussed earlier.  The product will be unique in preparation and presentation  Packaging as per Take Away outlets standard as optp, i.e. paper and plastic for on the go consumption.2. Price  Pricing will have to be based on customer value proposition, however we could have the leverage of determining our own prices3. Promotion:  Very appealing and registering Outlet displays  Soft launch  Distributing flyers in the targeted areas  Promotional coupons at launch, off peak hours and holidays4. Placement:  Outlet approachable with convenience  Parking space available  Within the main cluster area of restaurants 5
  6. 6. Business plan for takeaway outlet Authors: Babar Malik and Farooque Malik  Identifiable easily  On wheels as well5. People:  Recruiting a staff that has an appropriate interpersonal skill to deliver customer services.  Recruiting cooking staff that can feel the pulse of the taste required by customers  Cooking staff should be able to manage the kitchen and can deliver quality in food with consistency6. Process:  Identify and develop procedures for all staff, as per their assigned scope of work.  Training of staff on the SOPs  Ethical codes  Hygiene codes  Update training to staff on a regular basis  Rewarding based on clearly stated performance measures7. Physical evidence:  Nice and clean staff uniforms  Maintaining high hygiene levels  Consistency of quality and service  One outlet, and second of wheelsBREAKEVEN ANALYSIS  Our Take Away outlet will break even at sales of 39,255 units. This number is based on assumptions that unit price is Rs. 200 unit cost is Rs. 145 and fixed cost is Rs. 2,159,000.  Based on our sales forecast, the breakeven will be achieved in the first year of operationsFINANCIAL ASSUMPTIONS:1. Revenues assumptions  There will be windows-service with total capacity of serving 3 customers at a time.  The outlet will operate 7 days a week.  There will be 2 peak hours and 10 non-peak hours in a day. 6
  7. 7. Business plan for takeaway outlet Authors: Babar Malik and Farooque Malik  We are assuming 100% capacity utilization for peak hours and 10-15% capacity utilization for non-peak hours.  It will take approximately less than 3 minutes to deliver the meal to a customer for a singular order.  The unit price will increase at 10% per annum.2. Cost of goods sold assumptions  Cost of goods sold including raw material, labor and utilities will increase at 10% per annum.  Utilities are assumed at 6% of total raw material cost.3. General administration expenses  Rent will be paid at Rs. 50,000 per month. The rent will increase at 10% per annum  Depreciation is calculated at 10% per annum on the book value of assets, using the diminishing balance method.  Maintenance is 3% of depreciation expense 7