12/7/2012 Jhupri – An Indian Hut Alaska Highway 100th Street, British Columbia V1J 6K1 Canada Call : +1 250-264-8568 ENGL – 110 – FINAL REPORT PREPARED BY :SIDDHI OZA, PRITPAL SINGH JOSAN, DAVID COBHAM, & SAMUEL AWE
Business IdeaJhupri - An Indian Hut, a medium sized Fort St John based restaurant will be serving ahealthy and Vegetarian Indian Cuisine including a wide variety of regional cuisines nativeto India. The restaurant specially designed for family, singles and romantic couples will belocated on the Alaska Highway.Jhupri, having an intriguing atmosphere with excellent and interesting Indian cuisine,would prove to be a great place to have dinner.Jhupri will be offering an eclectic Indian cuisine and warm hospitality in an Indian Rustichistorically themed building which would have cozy space with vintage vibe.The concept for Jhupri revolves around several key words: Quality, innovation, Value,Freshness and Service. Most existing establishments in Fort St. John offer pub food. Jhupriwould further distinguish itself with a menu of food items that are innovative, top quality,fresh and "homemade."The menu will include wide variety of specialties and appeal to a diverse clientele. We willserve all types of Indian cuisines such as Cholle Bhature, Shahi Paneer, etc (North IndianCuisine), Dosa, idli, etc (South Indian Cuisine), Dal Bati, Undhiyu, etc (West Indian Cuisine) ,Chum Chum, Khasta Porota, etc (East Indian Cuisine). Apart from these we will also haveIndian sweet dishes such as Rasgulla, Jalebi, Gulab Jamun, etc. Adding to all these ourrestaurant will having special dish every Monday in lunch & dinner. Prices will be veryreasonable.Our restaurant will have theme nights every Sunday. We also have a party hall which hasits private entrance for those who want to have their party celebrations on specialoccasions. Restaurant will be open seven days a week. We also provide catering services tothose who want to have parties at home.Our management team includes such who have an experience since few years in foodindustry, finance and management.
Mission/VisionOur mission is to ensure each guest receives prompt, professional, friendly and courteousservice. We would maintain clean, comfortable and well maintained premises for ourguests and staff. We would also be providing food at a fair price - nutritional, well-preparedmeals - using only quality ingredients. We ensure that all guests and staff are treated withthe respect and dignity they deserve.We ensure that our guests will get great tasting food but would efficient and friendlyservice. We would keep the choices of all the families & singles, young and old, male orfemale. We will be focused employee welfare. Market FactorsDemographic factors - Fort St. Johns population grew by 8.4%, from 16,051 people in 2001 to 17,402 people in 2006 according to Stats Canada. The City has the second youngest median age (29.8) in the province after Whistler. In 2010, the population is estimated to be over 19,000. Total population of Fort St. John in 2011 will be 18,609. Whereas population was 17,402. The percentage change from 2006 to 2011 is 6.9%.Economic Factors -Economically Fort St. John is very rich place, because of its natural resources. Economicrate of Fort St. John is 76.6 which is much higher than 61.6 of British Columbia, and theunemployment rate of Fort St. John is 4.9, whereas British Columbia have 6.0 ofunemployment rate. In the early 1970’s oil and natural gas resources fuelled adevelopment boom. From the last seven years, production and exploration activity movedat a record-setting pace. Fort St. John is estimated to have almost the largest natural gasresources in North America, and which is still untapped. Almost 450 billion cubic meters ofgas reserves have been identified so far and it is estimated that there is yet 650 billioncubic meter yet to be discovered. Oil and natural gas resource is not the only factor whichmakes Fort St. John economically strong agriculture and forestry is one of them too. Fort St.John’s economy is bolstered by agriculture. This region produces more barley, wheat, andgrass seeds than any other region of the province. The North Peace River region’sgenerates total revenue of $77 million per year through agriculture. Forest industry of FortSt. John give employment to more than 600 people and contributes $90 million per year.
Social and Cultural Factors –Fort St. John has very diversifying culture. Fort St. John has over 1,300 immigrants andapproximately 2,000 aboriginal residents. Fort St. John is a home of First Nations,European, Chinese, Korean, Filipino, Italian, German, Ukrainian, Korean, African andnumerous other distinct cultures and nationalities. Fort St. John is also home of manyCanadian “transplants” with many residents from throughout the rest Canada that bringspecific traditions to the City. The rich culture and diversity result in an interesting andvibrant community. MAJOR PLAYERS (suppliers, clients) Suppliers: My restaurant is not a seasonal restaurant. It will be open all year round. My restaurant business is completely dependent upon local suppliers like: 1. Price Smart 2. Sobeys 3. Canadian Wholesale Club 4. Wal-Mart Once a month I will make a round trip to Grande Prairie for cheaper wholesale prices and ethnic spices from The Real Canadian Superstore and Cosco. Clients: The 100th street (Down-town) area is one of the most desirable retail locations in Fort St. John. It is one of the best place for retail marketing in Fort St. John and other cities nearby. The client segmentation is wide in range, my target clients for restaurant business will be: ● Individuals primarily 25 years old and older ● Families ● Residents of Emmet and nearby counties ● Visitors to the area from out of county and out of state ● Current clientele of other restaurants ● People "using" downtown as outlined in Fort St. John (for shopping, banking, dining, personal business, service businesses and post office, in addition to downtown workers)
Market TrendsFort St. John market is in the boom. New opportunities are emerging in Fort St. Johnevery day, many people are coming from the various parts of Canada because of thenew hospital and the possible site C construction, and city is working with provincialand federal to hire more labor and skilled workers. The oil patch and constructionemployees are generally willing to eat out and thus this is the perfect time to introducea new restaurant to town.Market Location & CustomersThe area is one of the most desirable retail locations in Fort St.John. There are morethan 400 businesses in a 1/4 square mile area with average sales of $330 per squarefoot.The customer base will come from 3 major segments;Local population -- the city of Fort St. John with a year-round population of 25,136 iscentrally located and is surrounded with 6 different banks.Colleges and Universities – The location is just a 15 minute walk from Northern LightsCollege where the total number of students is quite high. Moreover students from othercities and province join the college for some trade courses.Tourism -- between hotels, motels, bed & breakfast rooms and inns, there are over 500rooms available. Most of them are occupied round the year.The food concept and product image of JHUPRI will attract 3 different customerprofiles;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 restrictedor 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 thatnutritious food can be tasty, fun, convenient, and inexpensive. Competitive advantage
In terms of the business aspect, Jhupri certainly has a competitive edge that no otherrestaurant in the Fort St. John community has. Jhupri’s newly updated building layoutsand designs, together with the quality of the product and expanded menu willencourage a very high level of repeat business. Jhupri’s competitive advantage:● Impressive interior and employee outlook● Different cuisine● Variety Sales & Marketing PlanSales Product & Year 1 Year 2 Year 3 Sales Forecast Food Sales 200,000 250,000 300,000 Cost 100,000 122,500 150,000 Total Revenue 200,000 250,000 300,000Weekly Sales Variance - Saturday will typically be our best sales for the week. The salesvolume for all other days is represented as a percentage relative to Saturday. Thereforeour weekly sales will vary as follows:Monday: 55% Tuesday: 60% Wednesday: 75% Thursday: 95% Friday: 90% Saturday:100% Weekly Sales Variance.Jhupri would provide a combination of excellent and interesting food in an environmentthose appeals to a wide & varied group of people. We will have full focus on maintainingquality and establish a strong identity in our community. Keep high standards &execute the concept. Our management and staff would put full efforts to create anappealing and entertaining environment with unbeatable quality at a reasonable price.Advertising & promotion:
To create and maintain awareness by the public of Jhupri restaurant, several methodsof publicity will be utilized:Advertising primarily in the Alaska Highway newspaperCitys Information Centre MagazineOnline advertising on FSJ now, Youtube, Google advertising, Facebook, TwitterCross-promotions with Aurora Cinema and Pomeroy Sports centerFree samples at various locations in town.Customer service policy:Without customers we have no business, so we must look after them. This could bedone by following strong customer service policies:Ensuring that all guests receive the same value and qualityAt Jhupri my main goals will be to provide excellent quality, service and cleanliness tocustomersPricing & value:Our menu pricing structure was established based on competition locally andthroughout the industry for similar menus. With our competitors in mind we alsolooked at labor and ingredient costs to arrive at a pricing scheme. We used what isknown in the industry as "combination pricing" to arrive at our final figures.Combination pricing is a combination of the factor method, gross margin pricing, primecost method and competitive pricing. In designing our menu we looked at thecustomers we are trying to attract. We tried to design a menu that would appeal to thisaudience. Our menu has a wide range of prices and selections.Customer service policy:Without customers we have no business, so we must look after them. This could bedone by following strong customer service policies:
Ensuring that all guests receive the same value and quality At Jhupri, my main goals will be to provide excellent quality, service and cleanliness to customers Human Resources Plan For Key employees: Since the restaurant will be open only for a period of 8 hours in a day I will hire 2 ethnic East Indian chefs and one server for the beginning. In busy hours I will be helping the server and also at the time of the server’s day offs. The server’s days off will be two lazy restaurant days like Mondays and Tuesdays. Menu CondimentsAchar Indian style spicy vinaigrette pickle $2.95Chutneys: ($3.95 8oz/ 4.95 16oz) A. Mango sweet and sour Mango sauce B. Onion Relish C. Mint D. Tamarind Desserts1. Kheer Slow cooked rice in sweetened milk.$2.952. Gulab Jamun
5. Cooking Utensils 6. Food Inventory 7. Wages & Salaries 8. Miscellaneous Expenses 9. Technology 10. Phone & Internet Marketing Grand Opening:We would be glad to announce our launching date in January 2013 with a Grand Openingincluding many bonus secrets. We will arrange free dinner with special Musical night foreverybody. Cultural Dance performances will take place from varied cultures from roundthe world by those who have settled in our city. Special dish:There will be a special menu in our list every Monday. Restaurant NightEvery Monday we will have something delightful for our customers which would maketheir evening even more special. Special Occasion CelebrationWe will celebrate all the special occasions such as Canada Day, Valentine Day, ThanksgivingDay, Halloween Day, and many others. We will organize some special event as well asdinner on particular days. Day Celebrations such as Canada Day would also include an off-site event as well.
Special Ethnic Food nightsYet to be decided Month Ending Parties:We will be organizing ladies get together on every months ending and would arrange somegames too. Besides this, we will also organize potluck in the evening that day. It will beopen to all, so that people can get a chance to taste different dishes from varied cultureround the world. Home Delivery:We also provide free home delivery services for the orders above $100. Party Hall Celebrations:We have a separate party hall for those who want to celebrate their special occasions. Wehave A/c & Non A/c facilities. Hall has a separate entrance so you can enjoy yourcelebration without any disturbance or interference.
Catering Service:We also provide catering service when number of guests above 50 on occasions likebirthday parties, marriage, etc. PersonnelJhupri is projecting a total payroll expense of $485,000 in the first year, $535,000 in thesecond year and $595,000 in the third year. The percentage of payroll taxes and benefits
for all payroll positions averages ‘Average percentage Tax & Benefits’. Across the board, 2%of all employees’ time is spent on Direct Labor.The company is projecting average sales per employee of $297,222.Management Team/Top Level Managers Siddhi Oza, Director (HR) Samuel Awe, Managing Director (Maintenance) David Cobham, Legal Advisor & Director (Finance) Pritpal Singh Josan, ChefOther Staff Members:Front line and Middle line Manager, who include Hotel Supervisors and Branch Managerrespectively are responsible for checking the prepared for food for quality assurance. Theywill be responsible for handling the grievances regarding food and service. Their dutyincludes checking whether the raw materials are being received on time and also whetherthe quality orders are being shipped in time efficiently. Monitoring food preparations,budgets, payroll records, reviewing financial transactions, scheduling staff hours andassigning their duty are their responsibilities.Jhupri is projecting a total payroll expense of $180,000 in the first year, $180,000 in thesecond year and $180,000 in the third year. The percentage of payroll taxes and benefitsfor all payroll positions averages 12%. Across the board, 0% of all employees time is spenton Direct Labor.The company is projecting average sales per employee of $154,333 per year. This is basedon dividing the total projected revenue for the company’s first three years by the totalnumber of payroll positions for each year. ConstructionThe plan of the restaurant consist of the top floor, which is used has the common diningroom and the basement is used for the banquet. It is a total of 1,410sf for the top floor andthe banquet room is the total of 900sqf.
The common dining is divided into sections. It has the space for the couple’s (couple’sdining) it is located at the left Conner side of the common dining which covers 500sqf.Rest of the space is dividing between the male washrooms, female washroom, kitchen andthe storage room with a huge hall of 120sqf. The common room consists of 36 chairs and 9coffee tables and a middle accent that distinguish the space. The accent is made of a minibar which shows the sample of drink that could be ordered.Kitchen is the soul of a restaurant; the kitchen has a multi-purpose electric stove built inwith a chopping space, cutlery rack and a fryer.The office space is built just before entering into the dining room; it is separated fromcommon area where other staff could have an access to. The manger or the owner has theaccess to the office space.The space of the restaurant is built to the comfort of the customers.
2. Credit Sales - 15% of total Sales 3. Accounts payable – 15 days 4. Accounts Receivables – 0 days 5. Secured Loan - $ 450,000 at interest of 13% Start Up expenses 1. Furniture & Interior Designing - $30,000 2. Support Equipments - $ 5,000 3. Food Products - $ 50,000 4. Drinks - $ 45,000 5. Utilities - $ 15,000 p.a 6. Licensing - $ 200,000 Financial ForecastThe company has a starting cash balance of $75,000. The owners plan to contribute$75,000 in capital funding.Accounts Payables are set to 15 days, while Accounts Receivables are set to 0 days. Thecompany is forecasting that 15% of their total sales will be on credit.The company has one loan for a total outstanding debt of $450,000. The company has threeinvestor(s) who have invested $225,000. Additionally, the company is forecasting $600,000(approx) in Total Expenses and $30,000 (approx) in Fixed Assets for the first three years ofoperations.All forecasts in this business plan utilize Accrual Basis accounting. Profit & LossJhupri’s Estimated Gross Profit is forecasted for the first year of operations at $212,993increasing to $279,967 in the second year and increasing to $400,983 in the third year.
The average Gross Margin is 75.28%.The company is forecasting Operating Expenses, including payroll, of $607,381 in the firstyear, $657,439 in the second year and $714,296 in the third year.Net Profit after Taxes is projected at $4910 based on an expected income tax of $701 in thefirst year, $107,212 in the second year based on an expected income tax of $15,316 and250,851 in the third year based on an expected income tax of $35,836. The owners plan totake a draw or dividend of $0 in the first year, $10000 in the second year and $10000 in thethird year. The company is forecasting Retained Earnings of $4910 in the first year,$97,212 in the second year and $240,851 in the third year.Profit & Loss Year 1 Year 2 Year 3ForecastRevenueSales $300,000 $375,000 $500,000Other Income $400,000 $500,000 $600,000COGS $87,007 $95,033 $99,017Gross Profit $212,993 $279,967 $400,983Payroll ExpensesSalaries $480,000 $529,000 $588,000Payroll Taxes and $14,400 $15,870 $17,640BenefitsOperating ExpensesAdvertising $23000 $23000 $24000Depreciation $7,531 $7,119 $2,581Interest Expenses $2250 $2250 $1,875Maintenance $7680 $7680 $7680Property $58,800 $58,800 $58,800Supplies $11760 $11760 $11760Telephone $1,960 $1,960 $1,960TotalsTotal Operating $607,381 $657,439 $657,439ExpensesEarnings before tax $5,611 $122,528 $286,686Income Taxes $701 $15,316 $35,836Owner’s $0 $10,000 $10,000Draw/DividendRetained Earnings $4,910 $97,212 $240,851
Cash Flow EstimationThe owners have invested a total of $390,000 and have or are seeking loans totaling$450,000.Jhupri is forecasting Net Cash Flow for the first year of operations at $136,403, decreasingto $159,346 in the second year and increasing to $319,197 in the third year.The Ending Cash Balance for the first year of operations is projected at $211,403,increasing to $370,749 in the second year and increasing to $689,946 in the third year.Cash Flow Forecast Year 1 Year 2 Year 3Cash InSales $300,000 $375,000 $500,000Other Income $400,000 $500,000 $600,000Loans Requiring $0 $0 $0PaybackInvestments $250,000 $130,000 $130,000Total Cash In $905,000 $1,005,000 $1,230,000Cash OutCOGS $78,580 $88,693 $91,885Other Expenses $112,767 $119,010 $121,726Payroll $485,000 $535,000 $595,000Cash Paid for Taxes $0 $701 $15,316Cash Paid for Fixed $0 $0 $0AssetsLoan principal $90000 $90000 $90000PaymentsLoan Interest Payments $2250 $2250 $1,875Owner’s $0 $10,000 $10,000Draw/DividendTotal Cash Out $768,597 $845,654 $910,803Net & BalanceStarting Cash Balance $75000 $211,403 $370,749Net Cash Flow $136,403 $159,346 $319,197Ending Cash Balance $211,403 $370,749 $689,946 Balance Sheet
• Forecasting Current Assets for the first year of operations at $211,403, increasing to $370,749 in the second year and increasing to $689,946 in the third year. • Additionally, the company is forecasting Fixed Assets for the first year operations at $32,800, remaining the same at $32,800 in the second year and third year. • Current Liabilities for the first year of operations is forecasted at $91,404, increasing to $98,866 in the second year and decreasing to $44,624 in the third year. • Long Term Liabilities for the first year of operations is projected at $82,500, decreasing to $0 in the second year and remaining the same at $0 in the third year. • Capital for the first year of operations is forecasted at $62,078, increasing to $289,290 in the second year and increasing to $660,140 in the third year. • The company’s Total Liabilities and Capital for the first year of operations is $235,982, increasing to $388,156 in the second year and increasing to $704,756 in the third year.Balance Sheet Year 1 Year 2 Year 3ForecastCurrent AssetsCash $211,403 $370,749 $689,946Accounts Receivable $0 $0 $0Inventory $0 $0 $0Total Current Assets $211,403 $370,749 $689,946Fixed AssetsFixed Assets $32,800 $32,800 $32,800Less Depreciation $8,221 $15,393 $17,981Net Fixed Assets $24,579 $17,407 $14,819Current LiabilitiesAccounts Payable $8,904 $23,866 $44,624Deferred Revenue $0 $0 $0Short Term Debt $82500 $75,000 $0Total Current Liabilities $91,404 $98,866 $44,624Long Term LiabilitiesLong Term Loans $82,500 $0 $0Total Capital $62,078 $289,290 $660,140TotalsTotal Assets $235,982 $388,156 $704,765Total Liabilities & $235,982 $388,156 $704,765Capital Business Overview Report
Business Overview Year 1 Year 2 Year 3TotalTotal Sales $400,000 $460,000 $529,000Ending Cash Balance $388,166 $677,548 $1,196,302Earnings Before Tax $245,704 $332,704 $572,704Works CitedAnon., 2012. City of Fort St John. [Online]Available at:http://www.fortstjohn.ca/index.php?option=com_content&view=article&id=214&Itemid=104Anon., 2012. City of Fort St John. [Online]Available at:http://www.fortstjohn.ca/index.php?option=com_content&view=article&id=212&Itemid=102Anon., 2012. Statistics Canada. [Online]Available at: http://www12.statcan.ca/census-recensement/2006/dp-pd/prof/92-591/index.cfm?Lang=E