b plan, food industry, hotel , tiffin, business pan

2. THE PLAN:
Why did we select this plan?
Mumbai is the city of dreams where millions of people from different corners of the
country migrate every year. Mumbai has been the source of livelihood for many house
holds in far flung villages and small towns all over India. Also, people from different
backgrounds come here; they become a part of one large community called the
‘Mumbaiyya’ community. Be it Napean Sea Road or the dingy lanes and bystreets of
Bhindi Bazaar, Mumbai accepts all and so do all accept Mumbai.
The swelling pockets of the average Mumbai person, be it due to the high profile job
offerings or the bull run at Dalal Street, has made it a common sight to see restaurants
packed with customers while others wait in queues for hours outside with some people
bribing the waiters to push their numbers ahead while others fight to prove that they had
come earlier.
Here is a clear case of demand exceeding supply and it is this demand we are trying to
fulfill or gap in by starting our restaurant.
What is the plan?
We plan to open a restaurant at Vile Parle which is a busy hub comprising of a cluster of
offices, colleges and traditional but rich Gujarati households. We plan to serve through a
blend of the traditional sit and order as well as the buffet system. The sit and order system
is for clients who are basically families and executives holding meetings, and the buffet
system is for those clients who prefer to have a quick lunch and students.
In the medium run, we plan to open several such restaurants all along the city, and in the
long run also plan to enter in to the business of 5-star hotel accommodations.
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3. Area of the Restaurant:
The restaurant will have an approximate area of about 2000 sq. feet which we intend to
get on lease. We intend to rent area at the ground floor as well as adjacent to it on the first
floor i.e. 1000 sq. feet available at the ground floor while the remaining 1000 sq. feet
available at the first floor.
Utilization of the Area and the Floor Plan:
We plan to introduce the concept of a buffet restaurant in Vile Parle as no such hotel
offers such a facility there. The hotel will have the 1000 sq feet at the ground floor
dedicated to this purpose. The 1000 sq. feet at the top floor will be used interchangeably
as a family hall with seating arrangements and also as a party hall as and when required.
Target Audience and Site Location:
We plan to target a medley of target audiences right from working executives to college
students to family crowds at weekends.
In order to cater the needs of our targeted customers we have a “PURE VEGETERIAN
RESTAURANT”.
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4. 4

5. TOP VIEW OF VILE PARLE
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6. UNIQUE SELLING PROPOSITION:
 Multi Cuisine under One Roof:
The restaurant will have the combination of traditional and modern taste. On the
ground floor, mainly fast food items will be provided which will include:
• Western cuisine
• Indian Chinese Cuisine
• South Indian Cuisine
• Indian Dishes
On the first floor, Indian traditional and typical items will be provided. We
will have speciality in
• Gujarati Thali
• Rajasthani dishes
• Punjabi dishes
• Also, in the month of “Shravana” special fast (Upvas) items will be made
including “Thali”.
• Ice creams, Cakes, Pastries and Donuts will also be available which will
attract the kids and youngsters specially.
 Elegant Ambience & Stylish Decor:
The restaurant will have combination of both traditional and western look. The
ground floor will have the interiors of western look, while the first floor will have
traditional ambience.
The traditional ambience will include traditional interiors with antique frames,
paintings and showpieces, antique crockeries and the employees with traditional
clothes i.e. “Kedia” (dress of a typical gujarati village man)
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7.  Crazy Wall: In order to get the feedback, we will have a wall where customer
can give their “autograph” as a sign of compliment to the restaurant.
 Buffet System:
It will be the only to restaurant to have buffet system. This facility is only
available in the ground floor where we can the concept of “quick serve”.
 Quality and Value for Money:
The restaurant will provide the food of best quality and at a price which will have
value for customer’s money.
 Health Conscious Program:
With the commencement of the business, soon after 3 months, a new category of
food will be started having the concept of “LOW CALORIE”. Also, health
conscious programme will be conducted once in a month.
 Multi Purpose Usage:
The place in the first will also be provided for various parties, conference
meetings, small occasions etc.
UNIFORM FOR EMPLOYEES WALL HANGINGS
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8. ARTISTIC PAINTINGS
MARKETING STRATEGY:
Segmentation, Targeting and Positioning:
The marketing strategy starts off with identifying the customer segment.
We now need to target our audience effectively and position the brand.
 ADVERTISING STRATEGY:
1. Placing ads in the form of pamphlets which will be distributed through local
newspaper vendors and also directly to homes.
2. Tie up with the local cable operators and place ads about our restaurant on
their movie channels in order to attract customer attention while he is
watching his favorite movie.
3. Putting up Hoardings at the nearby college campuses, offices and residential
areas.
The marketing of today deals with enticing the consumer through innovative strategies
and giving a feel to the consumer that he is a very important part of our product and
service and making him involved in the activities of our business. Today, we talk of not
only marketing “to” consumers but we talk of marketing “with” consumers.
Hence, it becomes of prime importance that we let the consumer not only directly
consume the product but give a perception or feel as to what the product or service is so
that he fully understands our offering. In all these aspects, “Experiential Marketing” is
the buzz-word. Also a happy consumer is not going to keep quiet. He will definitely
narrate his experience to others and the word will spread like a ‘virus’. This word of
mouth publicity is known as “Viral Marketing”.
We plan to capitalize on several such marketing strategies to arouse consumer interest
and create hype and pull for our brand. Branding exercise though is a time consuming
activity and requires Goodwill more than anything else, we believe that excellent service
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9. with a smile will help us go a long way in developing an effective and powerful brand for
ourselves.
 SALES PROMOTION:
1. Introductory Offer will be given where “first 50 customers will be given free
buffet”.
2. Holding up “Small Contests” by tying up with radio channels like Red FM,
Radio Mirchi by asking some trivial food related questions and the first 50
respondents everyday would get a free buffet for 2 at our restaurant. We plan
to continue this offer for the first months.
3. Thereafter, Discount Coupons will also be distributed for the first six months.
4. Also we plan to develop a Feedback System wherein the customers can drop
in their choice of dishes for the buffet and they will be incorporated in the
next days buffet menu. Again this will be done through SMS collection,
phone calls or drop boxes placed outside campuses.
5. Special Discounts would be provided for first three months on the parties,
meetings being held on the first floor.
As part of the effective marketing reach of each of the advertising mediums, we have
used an analytical tool called Solver available in MS- Excel, to help us plan the number
of ads that can be placed in each of the mediums. This will facilitate in distributing our
advertising budget effectively so that we can get the best customer reach as well as the
best effectiveness from each type of ad.
According to statistics, each type of ad has a certain exposure rating. The exposure rating
is viewed as a measure of the value of the ad to both existing customers and potential
new customers. It is a function of such things as image, message recall, visual and audio
appeal and so on. As expected, the more expensive television advertisement has the
highest exposure effectiveness rating along with the greatest potential for reaching new
customers.
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10. The initial exposure ratings for the ad is shown as follows
Advertising
Media
Exposure Rating per
Ad
New Customers per
Ad
Cost per Ad
Television 90 4000 $10,000
Radio 25 2000 $3000
Pamphlets 10 1000 $1000
The number of ads for which the above exposure ratings are effective is:
Television 10 ads
Radio 15 ads
Pamphlets 20 ads
After these, number of ads the exposure ratings and the customers reach declines, and
they come down to:
Advertising
Media
Exposure Rating per
Ad
New Customers per
Ad
Cost per Ad
Television 55 1500 $10,000
Radio 20 1200 $3000
Pamphlets 5 800 $1000
The following guidelines are also laid down:
• Use at least twice as many radio advertisements as television advertisements.
• Use no more than 20 television advertisements.
• The television budget should be at least $140,000.
• The radio advertising budget is restricted to a maximum of $200,000.
• The pamphlet budget is to be at least $200,000.
• Minimum number of customers reached is 200,000.
Initially, we will try to maximize the ratings so that the reach is the most effective,
followed by customer maximization. We, will then study as to which method we shall
need in order to have the best output depending upon the strategy and the quality of
campaign we need to develop.
Now, after putting in the values, we get the solution as follows:
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11. Managerial Report:
1. A schedule showing the recommended no. of television, radio, newspaper
advertisements and the budget allocation for each media. Show the total
exposure and indicate the total no. of potential new customers reached.
TV RADIO PAMPHLET TOTAL
NUMBER OF ADS 33 67 439
BUDGET ALLOCATION 330,000 201,000 439,000 970,000
NUMBER OF CUSTOMERS 49,500 80,400 351,200 481,100
EXPOSURE 1815 1340 2195 5875
2. How the recommendations would change if the objective of the advertising
campaign was to maximize the no. of potential new customers reached.
Develop the media schedule under this objective.
TV RADIO NEWSPAPER TOTAL
NUMBER OF ADS 14 28 758
BUDGET ALLOCATION 140,000 84,000 758,000 982,000
NUMBER OF
CUSTOMERS 21,000 33,600 606,400 661,000
3. Compare the recommendations from parts 1 and 4. What is your
recommendation for the advertising campaign?
Customer base for ratings maximization method approximately 481,100.
Customer base for customer maximization is approximately 661,000.
Thus, we see that each of the maximization increases the customer base in
different ways. Hence the company must decide on either of the methods
depending on their requirements. For eg, if they wish to create expensive good
quality ads which include better visual appeal, recall etc. then they must focus on
rating maximization. However, if they believe that they need to extensively widen
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12. the reach base and the quality of ads is not of prime importance as the “word-of-
mouth” multiplier effect will be large, they must then focus on customer
maximization.
Thus we plan to position ourselves to the customers as a brand that provides wholesome,
nutritious, hygienic and cost effective food to people and who wishes to be in constant
touch with its customers and cares for customer opinion.
With this initial promotion strategy which will also be our greatest strength we plan to
occupy one of the top slots in the mind of the customers who will come again and again
to our restaurant whenever they dine out.
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13. HUMAN RESOURCE PLANNING AND POLICIES:
Hotel industries are highly personalized, and no amount of automation can substitute for
personal service providers. Above it all, the hotel industry being a service industry, it
requires high customer interaction, and it is very much important to got that extra mile as
far as providing service is considered and at times it may be more important than your
product. Also it becomes necessary that the consumer must be made happy and any
issues of complaints or dissatisfaction must be handled with utmost care and sensitivity,
as an unsatisfied consumer will spread the bad word 7 times faster than a happy
consumer. Thus, it becomes very essential to keep the consumer happy and to keep the
consumer happy, we need the help of the staff who at the same time must be trained as
well as happy with the management so that the consumer can be served well. As a result,
special attention will be put on HUMAN RESOURCE DEVELOPMENT and having
CUSTOMER RELATIONSHIP MANANGEMENT. Below are some of the Policies of
Human Resource Management that will be followed in the restaurant
Job Design:
 Recruitment: The employees will be recruited for different positions and with
different skill sets as follows:
• Chefs:
Job Description:
• Having specialized skill in making Gujarati and Rajasthani Thali and all
the dishes mentioned in the menu.
• The duty will begin from 6:30 a.m and will end at 11:30 p.m. The chefs
will be required to work in shifts of 8 hours each.
Job Specification:
• Must have excellent cooking skills.
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14. • Must be physically fit to endure the strenuous working hours.
• Experience in any other hotel preferred.
Training:
• No training required if with work experience or else it will be required.
No. of Chefs required: 5
• Managers:
Job Description:
• Need to interact with customers and address complaints and issues.
• Take feedback from customers.
• Manage and supervise all the operations of the hotel.
• Prepare and collect bills.
Job Specification:
• Person must be physically fit to endure the long working hours.
• They must avoid having long hair and nails. Personal hygiene is a must
and they must be clean to avoid any dirt or diseases spreading into food.
• Person having 1-1 ½ years of experience in the industry with good
communication skills. He must be fluent in English and should know local
languages.
• Must be able to control the staff.
No. of Managers required: 3
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15. • Waiters:
Job Description:
• The person will be required to accept orders and serve the food.
• Since, he is the main interface between the hotel and the customers, he will be
required to be highly presentable and must also have a proper knowledge of
the dishes, their contents etc. and must satisfy the customer with his polite
demeanour.
Job Specification:
• The waiters will be required to be physically fit to stand for hours and
serve the customers.
• They will also be required to take immediate action in case of small issues
without involving the manager.
• They must be extremely polite and well dressed in the uniforms provided,
must avoid long hair and dirty nails. High personal hygiene is expected.
• They should know local languages preferably Hindi and should have good
soft skills.
No. Of Waiters required: 6
• Housekeeping Staff:
Job Description:
• Serving water
• Cleaning the tables, floors, etc.
• Doing other housekeeping work.
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16. Job Specification:
• They are required to be highly efficient in their work in case of any food
spillovers or any other incidents.
• They must keep the place very clean as the customers will be turned off by
any unhygienic environment observed.
No. of Staff required: 4
 Training and Development: The staff will be given “on the job” training in
order to improve their communication skills and also to improve efficiency and
handle customers with care.
 Remuneration and other facilities: Employees Salary to be paid by 7th
of every
next month. Also, food and accommodation will be free. The uniform will be
provided. The employees will be provided with the provident fund, gratuity, etc as
per the requirements.
 Motivation and Retention Policy: If the employees perform upto the expectation
than they will be given various intrinsic and extrinsic rewards. Also, having the
minimum iteration rate as per the industry standards.
 Performance Appraisal: It will be done in every 9months.
 Safety and Security: If the number of employees increases for more than 30, than
they will provided with insurance claim. Policies will ensure the highest
standards of customer Health and Safety.
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17. DEED OF
PARTNERSHIP
OF
KHAASIYAT
WITH EFFECT FROM 3RD
APRIL 2008
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18. P A RT N E R S H I P D E E D
THIS DEED OF PARTNERSHIP is made and entered into at Mumbai on
this 1st
April 2008 among :-
1)Mr. Sahil Amit Mehta residing at 17,Deepak,Lajpatrai Road,Vile
Parle (West),Mumbai - 400056 Hereinafter referred to as the party of the
FIRST PART .
2) Mr. Rajeev Popatlal Shah residing at Amarkunj, Blk-10, Ram Baug
lane, Andheri-west, Mumbai-400058 Hereinafter referred to as the party of
the SECOND PART .
3) Mr. Sudhanshu Vadrevu residing at 602-B, captain house, Ambedkar
road, Matunga, Mumbai-400019 Hereinafter referred to as the party of the
THIRD PART .
4) Miss. Urvi Kirti Rana residing at 6/ Dev Krupa, Plot no:236, Sector
28, Vashi Navi Mumbai 4000705 Hereinafter referred to as the party of the
FOURTH PART .
And
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19. 5) Mr. Yezad Neville Mistry, No.12, Gilder Lane, Opp. Navjivan Soc.,
Mumbai-400008 Hereinafter referred to as the party of the FIFTH PART .
WHEREAS the parties hereto of the party of the first to fifth parts are
desirous of carrying on the business of Fast Food and Thali Restaurant
under the name and style of KHAASIYAT.
AND WHEREAS the parties hereto are desirous of recording the terms and
conditions of the partnership mutually agreed upon hereinafter.
NOW THIS DEED WITNESSETH AS FOLLOWS:
1. NAME: The partnership business shall be carried on in the name &
style of KHAASIYAT
2. COMMENCEMENT: That the partnership shall be deemed to have
been commenced with effect from 3rd
April 2008..
3. OBJECTS : The firm shall carry on the business as Fast Food and
Thali based Restaurant offering multi –cuisines and Buffet System.
The Parties hereto may also carry on any other such business or
businesses as mutually decided from time to time.
4. PLACE : It shall have in Administrative office at Janak Arcade,
Parle Tilak Vidyalaya Road, Vile Parle (West),Mumbai – 400056. or
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20. at such other place or places as they may agree upon from time to
time.
5. TERM: Partnership shall be “ AT WILL”. In case any partner desires
to retire from the partnership he shall be as liberty to do so by giving
two months notice in writing to other partner and firm stands
dissolved from the date mentioned therein.
6. CAPITAL: The Fixed Capital required for the business of the
partnership shall be Rs 20 lakhs brought in by all the parties in equal
parts, each amounting to Rs. 4 Lakhs and such capital as brought in by
the partners shall be credited to their respective account.The Partners
shall be entitled to bring further capital as and when required in their
Current/ Loan account as may be agreed upon between partners
without reference their profit sharing proportions.
7. INTEREST ON CAPITAL: The firm shall pay interest as prescribed
u/s 40(b) of the Income Tax Act presently 12% p.a. or at the rate
subsequently prescribed from time to time or as decided from time to
time by the partners but not exceeding rate prescribed under Income
Tax Act, on the amount standing to their credit in capital/current
account and / or loan account and the profits or losses of the business
of the firm shall be arrived at after accounting for the interest so
payable as a business expenditure of the firm. If there is a debit
balance in the Current/Loan account of the partner then firm shall be
entitled to charge interest at the rate prescribed earlier. In keeping the
Income Tax rules under consideration, the partners have decided to
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21. pay interest on capital @ 7% p.a. or any such rate agreed upon them
subject to changes.
8. WORKING PARTNERS: All the partners have agreed to keep
themselves actively engaged in conducting the affairs of the business
of the partnership firm. The said partners shall be working partners. It
is hereby agreed to that in consideration of the said parties keeping
themselves actively engaged in the business of the partnership firm
and working as working partners shall be entitled to remuneration.
The aggregate remuneration payable to the said partners shall be
calculated as under ,
Level Of Book Profit Quantum Of Remuneration
(i) If the Book-Profit is Rs. 50,000/-
or less
Book-Profit (as defined
hereunder)
(ii) If the Book-Profit exceeds Rs.
50,000/- but is lower than Rs.
75,000/-
Rs. 50,000/- or 90% of the
Book-Profit, which ever is
higher.
(iii) If the Book-Profit exceeds Rs.
75,000/- but is lower than Rs.
1,50,000/-
Rs. 67,500/- plus 60% of Book-
Profit in excess of Rs.
75,000/-
(iv) If the Book-Profit exceeds Rs.
1,50,000/-
Rs. 1, 12,500/- plus 40% of the
Book-profit in excess of
Rs. 1, 50,000/-
Provided that no remuneration shall be payable in a year where Book
Profit is negative i.e. there is a loss, Remuneration shall not be
payable in subsequent years also, unless the carried forward loss is
fully set off under the Income Tax Act, 1961. For calculating the
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22. above referred remuneration payable to the said partner, the term
“Book-Profit” shall mean the net profit as shown in the profit and loss
account for the relevant previous year, computed in the manner laid
down in Chapter IV D (Sections 28 to 44D) of the Income Tax Act,
1961 as increased by the Aggregate amount of Remuneration paid or
payable to the said partner of the firm, if such amount has been
deducted while computing the net profit and as decreased by
aggregate amount of unabsorbed business loss of earlier years
including unabsorbed depreciation. The remuneration payable to the
said partner shall be credited to their respective capital accounts at the
end of the year when the final accounts of the partnership are made up
and the amount of remuneration due to them is determined. The
aggregate remuneration payable to the working partners only.
9. SHARE IN PROFIT & LOSS: The share of partners hereto in the
net profits and losses after Interest on Capital and Remuneration to
Partners shall be as follows.
NAME OF EACH PARTNER SHARE OF PROFIT/LOSS
Sahil Mehta 20%
Rajeev Shah 20%
Sudhanshu Vadrevu 20%
Urvi Rana 20%
Yezad Mistry 20%
And the amount falling to share of each party, shall be credited or
debited, as the case may be, to their Capital/ Current account in the
books of the firm.
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23. 10. BANK ACCOUNT: The firm shall maintain one or more than one
banking account in the name of the firm and shall be operated upon by
either of the partner or attorney of the firm as may be indicated in the
instructions to the bank given by the firm from time to time.
11. STIPULATIONS: Each of the partners shall
(a) Regularly pay and discharge his separate and private debts and
liabilities and shall indemnify the firm and the other partners against
the same.
(b) carry on the business of the firm to the greatest common advantage
(c) Be just and faithful to the other partners and shall render a true and
full information affecting the firm to the other partners or their legal
representatives.
.
12. INSOLVENCY: If any partner shall commit any breach of any
stipulations contained in this deed or if a partner becomes insolvent or
shall become of unsound mind or incapacited from attending to the
partnership business, the partnership shall not dissolve.
13. RETIREMENT: It shall be terminable by any of the partners on his
giving to other partner, at least one month prior notice of his intention
to do so and he shall not be entitled for any share of goodwill. If a
partner retires, then the partnership will not be dissolved and
remaining partner/s shall have the option to purchase the share of such
partner or introduce new partner in the firm.
14. DEATH OF THE PARTNER
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24. In case of death of the any partner the firm shall not be dissolved but
legal heir of the deceased partner shall be entitled to enter in the firm
as partner with the same terms and conditions. However if the legal
heir is not willing to become partner then remaining partner shall be
entitled to admit new partner and continue to carry on partnership
firm. It will be duty of the continuing partners to pay the amount
standing credit to Capital/ Current, Loan account of the deceased
partner within 3 months and in case of delay they are bound to pay
simple interest @ 21% p.a.
15. ADMISSION: If the parties deem proper and in their interest, they may
admit any person or persons on the terms and condition as may be
mutually agreed upon by and between themselves.
16. DISSOLUTION: If the partnership is determined by any means not
hereinabove expressly provided for then the partnership shall be
wound up and assets will be distributed in terms of the Partnership
Act 1932.
17. ACCOUNTS : All the necessary and proper accounts as are
commonly maintained in this line of business shall be maintained and
caused to be maintained by the partners. The accounts shall be open to
inspection to all the partners.
18. ANNUAL ACCOUNTS : On the 31st
March of every year the profits
and loss account and the Balance Sheet shall be drawn up and the net
profit or loss of partnership as determined shall be duly adjusted
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25. among the partners in the proportion as set forth in para 7 above. The
first accounting year ending of the firm shall be 31st
March 2009.
19. WITHDRAWALS :Each partner may draw, an agreed amount,
out of the partnership sums, as mutually decided, per month on
account of the remuneration, or profit or interest payable to them.
20. CALCULATION OF PROFIT / LOSS IN SPECIFIC EVENTS :
That in the event of Retirement, demise or insolvency of any partner
hereto on day other than the last day of the Accounting Year i.e. 31st
March of every year, it shall be in the absolute discretion of the
surveying or the continuing partners to close the books of Accounts as
on the date of event or to continue the books upto the end of the year
and in such case, the profit or loss for the whole year shall be deemed
to have accrued or arise at an even rate throughout the year and the
proportionate profits / losses upto the date of event shall be calculated
on that basis.
21. RESPECTIVE CONVENANTS : No partner shall, without the
consent of the other partner, do any of the following acts:
(a) Lend any money or deliver any goods belonging to the firm.
(b) Release or compound any debt or claim owing to the firm.
(c) Guarantee the payment of discharge of any such sum or claim.
(d) Execute any deed or stand surety for any person or act in any other
manner whereby the property of the firm may be liable.
(e) Make any payment for or acknowledge any liability of the firm.
(f) Draw, accept or endorse any bill of exchange or promissory note on
account of the firm.
(g) Sell, alienate, mortgage or change his share or any part thereof in the
assets or profits of the firm.
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26. 22. ARBITRATION: In the event of any dispute or difference of opinion
in the matter of interpretation, execution of carrying out the objects
and functions of the partnership firm, arbitrator shall be appointed
under the provision of Indian Arbitration Act, 1940.
23. ALTERATION OF ANY CLAUSE: Notwithstanding anything
stated or provided herein the partners shall have full rights and
discretion to modify alter or vary the terms and conditions of this
partnership deed in any manner whatsoever they think fit by mutual
agreement.
24. GENERAL: The provision of the Indian Partnership Act, 1932 shall
apply as regards the matters which are not expressly provided for
hereinabove.
25. GOODWILL: The goodwill, firm name, tenancy rights and other
rights of the partnership business shall belong to the partnership firm.
IN WITNESS WHEREOF the parties hereto have hereinto set and
subscribed their hands the day and year first hereinabove written.
Signed, sealed and delivered by the
within named Mr. SAHIL MEHTA)
party of the FIRST PART in the
presence of ……...
……………………….. )
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27. Signed, sealed and delivered by the )
within named Mr. RAJEEV SHAH )
party of the SECOND PART in the )
presence of ….. ……….…………..…..)
Signed, sealed and delivered by the
within named Mr. SUDHANSHU
VADREVU)
party of the THIRD PART in the
presence of ……...
……………………….. )
Signed, sealed and delivered by the )
within named Miss. URVI RANA)
party of the THIRD PART in the )
presence of ….. ……….…………..…..)
Signed, sealed and delivered by the )
within named Mr. YEZAD MISTRY)
party of the FIFTH PART in the )
presence of ….. ……….…………..…..)
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28. SOURCES OF FINANCE
Capital Investments: Personal 20, 00,000
Bank Loan @12%p.a 30, 00,000
TOTAL 50, 00,000
The total capital required initially will be 50 lakhs.
The capital will be raised through two sources namely personal investments and bank
loan as mentioned in the above proportions. The personal investments will be raised
through family and friends and savings of the past. The remaining capital will be raised
through a bank loan. The Bank loan will be secured against personal assets such as LIC
policies, Shares, immovable assets like house or farm land.
Initial Set-Up costs
The restaurant would be taken on a Lease for a period of 12 years with a one time deposit
of 5 lakhs rupees. The intention behind leasing is because of a long term goal of
purchasing the same land to become the owner which is only possible after earning
sufficient profits from the restaurant business and hence a long term point of view is
taken into consideration.
The initial set-up costs would include a list of following items:
o Rent
o Salary for staff(waiters)
o Salary of Managers
o Electricity
o Fuel
o Conveyance
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29. o Medical expenses
o License Fees
o Raw Material costs
ONE-TIME COSTS
For starting any business, one has to incur a one-time cost which is the basic
requirements for a business. For Restaurant business the possible one-time costs are as
follows: a. Interiors and Designs
b. Equipments – AC’s, Fans, Cash Machine, Computer and so on.
c. Crockery
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