Businessplanpresentation 091220042538-phpapp01

1. fusion
Make People Happy, Have
Some Fun and Be Number 1!
Yours Truly
Restaurant. For AM & PM
people

2. EXECUTIVE SUMMARY
 Blend of Italian, Chinese, continental and Indian.
 Located in the booming, and rapidly expanding city of
Mumbai.
 Inspired menu from different countries'
 Seven days a week
 Relaxed, friendly and correct service
 Hiring of experienced staff
 Venturing into the Catering business
 Total sales allocation to be 85% restaurant sales and 15%
catering sales.

3. RAISING OF FUNDS
 Secured loans
40,000,000 at an interest rate of 10%
 Unsecured loans
20,000,000 at an interest rate of 6%

4. FINANCIAL SUCCESS
 We believe this will be achieved by offering high-quality
service and excellent food with an interesting twist.
 Start-up expenditure
Lease deposit 26,00,000
Furnishing and Interior 22,00,000
Support Equipments 20,00,000
Licensing 7,00,000

5. MISSION
 Great tasting food, but have efficient and friendly service
 Choice for all families and singles, young and old, male or
female
 Employee welfare

6. OBJECTIVES
 Keeping food cost under 35% revenue.
 Keeping employee labor cost between 25-30% of revenue.
 Stay in the restaurant business with excellent food and service.
 Expand our marketing and advertising in neighboring cities
viz. Pune and Nasik.

7. KEYS TO SUCCESS
 Unique and innovative fine dining atmosphere
 Great food, great service and atmosphere.
 Appeal to a wide and varied clientele.
 Public relations
 Controlling costs at all times without exception

8. Future Plan
 If the business is meeting its projections in an year than, we
will start scouting for a second location and develop plans for
the next unit.
5 Year Plan
 3 restaurants in different parts of the country like Delhi,
Kolkata, Pune, Mumbai etc.
 Although the restaurant industry is very competitive, the
lifestyle changes created by modern living continue to fuel its
steady growth.

9. COMPANY DESCRIPTION
Vision:
Extraordinary dining experience
Aim to be the best in the multi cuisine restaurant business
Company ownership:
Partnership between Shantanu Singh & Priyanka Babbar
Each partner will have a holding of 50%
Company location:
Palm Spring Mall, Malad (west) - Link Road, Mumbai

10. COMPANY DESCRIPTION CONTD.
Basic product offering :
Italian, Chinese, Indian & Continental
Healthy food (low fat, low cholesterol)
Markets to be served:
Students
Couples / families
Destination customers
Working class singles
Business persons
Tourists

11. ENTREPRENEURSHIP
Formalities & expenses:
Registration of the company
Licensing
Furnishing
Electrical Fitting
Kitchen and Crockery
Insurance
Risks & liabilities
Not able to break even at the expected time
Repayment of loan’s
Unlimited liabilities of the partners.

12. Competition/Competitive Advantage
Direct Competition
 Kareem's
 Lemon Grass Café
 Machan
Advantages
 Location
 Multi – Cuisine
 Expert Management Team

13. Competitive Edge
 Fusion will leverage it’s multi-pronged competitive edge to
quickly gain market share.
 Our competitive edge is the menu, the chef, the environment, the
management, the service and our friendly place.
 The chef has an excellent taste for what fine dining is and requires
 Our environment is elegant and comfortable and our decor is
warm and relaxing.

14. Strategy And Implementation Summary
 Our strategy is simple, we intend to succeed by giving people a
combination of excellent and interesting food in an environment
that appeals to a wide and varied group of people.
 We will focus on maintaining quality and establishing a strong
identity in our community.
 We will keep our standards high and execute the concept so that
word-of-mouth will be our main marketing force.
 We will create an appealing and entertaining environment with
unbeatable quality at an exceptional price.

15. Marketing Strategy
Sell For Tomorrow—Not just Today
 Print media advertising
 Flyers
 Entertainment book coupons
 Mass Media Vehicles
 Billboards
 E- business

16. Sales Strategy
 Word’s Of Mouth
 Discount Coupons
 Free Home Delivery
 Concentrating on the customer's experience
 Offer various specials throughout the week that people can come to
enjoy.

17. MARKETING ANALYSIS
7 P’s of Restaurant
PRODUCT:
• Product marketing deals with marketing the product to prospects, customers,
and others.
• The products being offered at FUSION are-a cosmopolitan flair, comfortable
atmosphere, striking décor, entertainment, engaging clientele along with an
international menu comprising of multi- cuisines: INDIAN, ITALIAN ,
CONTINENTAL and CHINESE.
• FUSION will be the only restaurant among all the competition which focuses
the entire menu on healthy and low-fat cooking
PRICE:
• Pricing is one of the most important elements of the marketing mix, as it is the
only mix, which generates a turnover for the organization.
• It costs to produce and design a product, it costs to distribute a product and costs to promote
it.
• The pricing strategies that we at FUSION will be considering during the
preparation of the menu are- Competition pricing
Product Line Pricing
Premium pricing

18. PLACE
 This refers to how an organization will distribute the service
they are offering to the end user.
 The organization must distribute the service
to the user at the right place and at the right
time.
 Fusion is located at Palm Spring, Malad.

19. PEOPLE:
 An essential ingredient to any service provision is the use of
appropriate staff and people.
 The staff at FUSION is efficiently and well trained to serve the
guests in the best possible way.
 Our staff is well trained to give to our customer’s high quality of
personal service.
 The service delivered by our employees is a very important element
of value. It is also an area where we can distinguish our selves.
PROCESS:
 This refers to the systems that are used to assist the organization in
delivering the service.
 A big emphasis is being placed on extensive research into the quality
and integrity of our products.
 They will constantly be tested for our own high standards of
freshness and purity.

20. PROMOTION:
 Promotion involves disseminating information about a service,
product line, brand, or company.
 Promotion is generally sub-divided into two parts:
• Above the line promotion
• Below the line promotion
PHYSICAL EVIDENCE:
 Physical Evidence is the element of the service mix which allows the
consumer again to make judgments on the organization.
 Physical evidence is an essential ingredient of the service mix.
 Consumers will make perceptions based on their sight of the service
provision which will have an impact on the organization’s perceptual
plan of the service.

21. MARKET ANALYSIS SUMMARY
 FUSION focuses on local and tourist restaurant seekers.
People that have a desire for good food and a fascinating
atmosphere.
 The market customers for FUSION would develop from:
 Local Neighborhood Marketing Program
 Customer Frequent Diner Loyalty Program
 Suggestive Selling Program to increase average check
 Tremendous growth in upper level family income

22. MARKET SEGMENTATION
 The Business Man
 Happy Couples
 The Family
 High-end Singles
 Tourists

23. MARKET PENETRATION
 Entry into the market should not be a problem.
 Restaurant has high visibility with heavy foot traffic all day
long.
 The local residents and students always support new
restaurants and the tourists do not have fixed preferences.
 In addition, Rs.4,00,000 has been budgeted for a pre-opening
advertising and public relations campaign.

24. SERVICE BUSINESS ANALYSIS
 The restaurant industry is highly competitive and risky.
 Most new restaurants opened by inexperienced owners
struggle or fail.
 However, those based on solid understandings of the market
needs have a much higher chance of success.
 Restaurants make money by taking inexpensive ingredients,
combining them in creative ways, cooking them properly, and
selling them at a much higher price

25. UNIQUE SELLING PROPOSITION

26. Market Feasibility Study
 A market feasibility study is essential to gauge the practicality,
prospects, potential of the project, and therefore it’s feasibility
 We obtained an online sample of a survey conducted to gauge
the tastes and preferences of city goers. The survey was done
on about 120 people residents of Mumbai between 16 and 21
years.
 From the survey, we came up with a SWOT analysis and
marketing strategy to follow.

27. SWOT ANALYSIS
STRENGHTS
 First mover advantage
 Economies of Scale
 Varieties of food of the cuisine
 Large number of bachelors/students/IT professionals
 Catering to a wide range of people
 No good restaurant near the location

28. WEAKNESSES
 High cost of operation
 Not from a known group
 Pricing
 Competition
 Difficulty In obtaining licenses

29. OPPORTUNITIES
 New restaurants in other parts of the city
 Offer greater variety
 High growth of the Hospitality Industry and tourism
 Rising standard of living

30. THREATS
 Other concept restaurants
 People may be restrictive
 High attrition rate.

31. Questionnaire
 Based on the questionnaire, following feedback was obtained:
 People look for customer service most, followed by décor.
 People mind spending more money, even if they are offered
quality of service
 3/4th of the people surveyed visit a restaurants at least once a
week.

32. Questionnaire
 They prefer Indian cuisine the most, followed by Chinese,
Italian and others
 They look forward to new dining experiences given the
opportunity
 While choosing a restaurant, customers are price conscious.

33. POSSIBLE FINANCING OPTIONS
Entrepreneur’s
personal
resources
Financial
institutions
Angel investors
Unusual
resources
Financing Options
Venture
capitalists Public offering
Business
development
programme

34. Evaluating Financing Options
Personal Personal Potential
Control Risk Reward
Personal Resources H H H
Financial Institutions
(Debt Financing) L - M L L – M
Venture Capitalists
(Equity-Debt Financing) L – M L L – M
Angel Investors
(Equity Financing) L – M L L – M
Public Offerings
Equity Financing) L L L – H
Business Development
Program L – M L L – M
Unusual Sources L – H L L- H
L – Low M – Medium H - High

35. COMPARISON OF VARIOUS SOURCES
TYPE COST DILUTION RISK RESTRAINT ON
MANAGERIAL
FREEDOM
EQITY HIGH YES NIL NO
RETAINED
EARNINGS
HIGH NO NIL NO
PREFERENCE
CAPITAL
HIGH NO NEGLIGIBLE NO
TERM LOANS LOW NO HIGH MODERATE
DEBENTURES LOW NO HIGH SOME

36. WHAT WE ARE CHOSING
• LOANS FROM FRIENDS AND RELATIVES-
20 LAKHS(UNSECURED)
• LOAN FROM FINANCIAL INSTITUTIONS
-40 LAKHS(SECURED AGAINST THE BUSINESS ITSELF)
INTEREST:
• 6% annual rate from friends and relatives
• 12% annual rate from bank

37. FINANCE
 Profit and loss account.
 Balance sheet.
 Cash flow statement.

38. P&L

40. Projected Balance Sheet of Fusion Company For First Three
Years

42. Cash received 1st year 2nd year 3rd year
Cash from operations
Cash sales 34675000 61867500 80756250
Subtotal cash received 34675000 61867500 80756250
Expenditure 1st year 2nd year 3rd year
Cash paid to suplier 20257500 41013073 55074639
Cash paid to employees 6066000 6975000 8021250
Additional expenses 6284063 7260945 8286600
Principal repayment of loan 400000 400000 400000
Interest on unsecured loan 120000 120000 120000
Interest on secured loan 400000 360000 320000
Tax paid 140377 1514148 2332995
Cash expenditure 33667940 57643166 74555484
Cash Flow Statement

43. 1st year 2nd year 3rd year
Net cash flow 1007060 4224334 6200766
Cash balance 92960 3542794 64074819

44. Break Even Analysis
Thus the company is going to break even in the begin of the third year.

45. Gross margin ratio
Gross profit = 14518635
sales = 34675000
Gross profit ratio = 0.4187

46. Liquidity ratio
Current assets
Cash = 92960
Closing stock =101135
Prepaid expenses=500000
Total =694095
Current liabilities =6100000
Liquidity ratio= 0.1137

47. OPERATIONALANALYSIS and HR

48. LOCATION ANALYSIS
 Customer access
 Nearby business
 Population
 Population growth
 Economic conditions
 General business factors

49. MACHINERIES
 Chimney
 Air Conditioner
 Music System
 Computers
 Water Filters
 Software’s for data analysis
 Heaters
 Stoves
 Fridges
 Griller
 Chillers
 Trolleys
 Microwaves
 Mixers
Main equipments in
kitchen:
Support equipments:

50. QUALITY TESTING PROCEDURE
 ISO 9000-the only available internationally accepted standard
for quality management system
 Applicable to all kinds of organization of industries in
manufacturing or service sector.
 Systematic standardization and certifications
 That allows complete freedom on selection and use of
processes and framing of operating procedures an work
instructions

51. PROCESS FLOW CHART
Get drinks for customer
Deliver check to customer
Collect signed slip
Place order
Give the order to chef
Deliver salad or soup
order to customer
Deliver dinner to
customer
Cash or Credit
Return credit slip to
customer
Bring change to
customer
Close table and
collect tip
Cash
Credit

52. ORGANIZATION STRUCTURE

53. QUALIFICATION & CONDITION
REQUIRED FOR MANPOWER
 Good health and stamina
 Keen sense of taste and smell
 Excellent hand/eye co-ordination
 Good memory for details
 Artistic and creative talent
 Excellent communication skills, interpersonal skills and team-
building skills
 Ability to remain calm in hectic circumstances
 Excellent organizational skills
 Desire to do a precise and thorough job

54. SALARY STRUCTURE
 Main chef -500000
 Chef (15000*2) -300000
 Helper (7500*3) -22500
 Waiter (5000*10) -50000
 Manager -12000
 Cleaning staff (2000*2) -4000
 Total -161000
 Security (3000*3) -9000
 For three floors for 365 days -6066000

55. DUTIES & RESPONSIBILITIES
 Creating new recipes to please customers
 Hiring and supervising kitchen staff
 Estimating labour and food costs and altering menus to stay
within budget
 Meeting with customers regarding menus for special occasions
such as weddings, birthday parties and banquets
 Arranging for equipment purchases and repairs
 Checking the quality of raw and cooked food products
 Ensuring that sanitation standards are maintained
 Assisting with staff development and training
 Meeting with other managers in the organization

56. LONG TERM DEVELOPMENT PLAN
 Goals
 Strategies
 Milestones
 Risk Evaluation
 Exit plan

57. LONG-TERM DEVELOPMENT & EXIT
PLAN
Goals
 FUSION is an innovative concept that targets a new, growing
market.
 We assume that the market will respond, and grow quickly in the
next 5 years.
 Our goals are to create a reputation of quality, consistency and
security (safety of food) that will make us the leader of a new style
of dining.

58. Strategies
 Our marketing efforts will be concentrated on take-out and
delivery, the areas of most promising growth.
 The market changes, new products may be added to maintain
sales
Milestones
 After the restaurant opens, we will keep a close eye on sales
and profit. If we are on target at the end of year 1, we will look to
expand to a second unit.

59. Risk Evaluation
 The success of our project hinges on the strength and acceptance
of a fairly new market.
 After year 1, we expect some copycat competition in the form of
other independent units.
 Chain competition will be much later.
Exit Plan
 Ideally, FUSION will expand to five units in the next 10 years.
 At that time, we will entertain the possibility of a buy-out by a
larger restaurant concern or actively seek to sell to a new owner.