Business Development Plan
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The document outlines a comprehensive Business Development Plan (BDP) for a new multi-cuisine restaurant, 'dawn to dusk!!!', located in Navi Mumbai, focusing on a unique dining experience with a blend of Arabian, Italian, and Indian cuisines. It includes key elements such as market analysis, SWOT analysis, financial projections, and marketing strategies, aiming to attract a diverse clientele while addressing operational challenges and financial management. The BDP emphasizes leveraging technology, innovative service, and location advantages to achieve competitive edge and profitability.
Business Development Plan
- 1. MET MFM Presents The Business Development Plan (BDP)
- 2. ROAD MAP GRAINS VEGETABLES FRUITS OILS MILK MEAT & BEANS Objective Idea Generation Why to prepare BDP Market Segment Key Growth Drivers Case Study Business Profile SWOT 7P’s Sources of Finance Restaurant Layout Org. Departments Financial Analysis
- 3. OBJECTIVE To understand a framework for a systematic & comprehensive evaluation of the venture idea To Decide whether to proceed with the venture To offer Best Service at the Best Price
- 4. IDEA GENERATION Most Important factors were: Business in a marketable location Customer profile Understanding customers’ needs and so on Armed with this information, we made some decisions to introduce a full service restaurants MET GRADUATION DAY
- 5. WHY TO PREPARE BDP ? The BDP has to reflect the needs of CUSTOMERS The strengths and weaknesses of COMPETITORS The skills, knowledge and experience of ENTREPRENEUR(S) The criteria of INVESTORS And, in the case of corporate ventures, the fit with the CORPORATION
- 6. MARKET SEGMENT 39% 39% 4% 4% 4% 10% Market Analysis Quick Service Resturants Casual Dine-in formats Cafe's Fine Dining Pub Bars Club & Lounges (PBCL) Source: NRAI report 'India Food Service Report 2013‘
- 7. KEY GROWTH DRIVERS Increasing share of delivery and take-away formats, with a focus on convenience Experimentation with new formats, themes and menus; interest through entrepreneurial ventures Larger focus on value meals Tech savvy consumers – increasing importance of online/ social media, food websites and mobile applications Increasing interest from private equity and venture capital investors in the industry
- 8. Dawn to Dusk!!! (D2D) CASE STUDY
- 9. BUSINESS PROFILE D2D!!! – is relatively new restaurant Blend of Arabian, Italian & Indian Authenticate Food Located in the booming, and rapidly expanding city of New Mumbai Seven days a week Relax, friendly and fast service Hiring of experienced staff Venturing into the Catering Business Restaurant 11am to 3.30pm 6pm to 12 am Snacks Counter 10am to 10pm
- 10. VISION & MISSION Vision Extraordinary dinning experience Aim to be the best in the multi- cuisine restaurant business Mission To ensure that each guest receives prompt, professional, friendly, & courteous service To maintain clean, comfortable & well maintained premises for guests & staff By maintaining these objectives we shall be assured of a fair profit that will allow us to contribute to the community we serve
- 11. TEAM PROFILE Pratik Mhatre Degree: MBA Finance Specialised: Accounts Payable Work Experience: He has as delivered various consulting projects on strategy implementation Nikita Dumbal Degree: MBA Finance Specialised: R& D Reports DSIR Work Experience: As an integral part of the research team she has helped various corporate develop strategic business Juber Mujawar Degree: MBA Finance Specialised: MIS Activities Work Experience: He has delivered MIS reports and Projects to corporate
- 12. TEAM PROFILE Satej Khot Degree: MBA Finance Work Experience: Assistant Manager Accounts, he has worked on various brands & found out market positioning Kimaya Kharde Degree: MSc. Marketing & MBA Finance Specialised: R& D Reports DSIR Work Experience: Worked with Lindly Catering, has delivered projects in Services Marketing Pritesh Pujara Degree: MBA Finance Work Experience: He already has business and working in all departments to develop. Also worked at BOA & TCS as cash management
- 13. SWOT Strengths •New Business •Service style is new to the area •Business exterior is clean and tidy •Special Offer Menu •Superior technological equipment Opportunities •Unique & innovative fine dinning atmosphere •Great food, great service & atmosphere •Appeal to a wide and varied clientele •Location Advantages Threats •Operating costs are set to increase soon •Business lease is up for renewal and a rent increase will happen Weaknesses •Restaurant is new and not established •Limited funds available •Products are already available in the market •Lack of direct contact with customers •No Reputation S W TO
- 14. ISSUES & CHALLANGES Economic and market factors High food cost inflation Fragmented market Increasing competition Operational challenges Real Estate Manpower Fragmented Supply Chain Regulatory concerns Existing high taxes Burden of new taxes and over licensing
- 15. 7 P’s of Restaurant
- 16. PLACE Some wanted to establish at Malad Some at Dadar Some at Vashi Each place had its own advantages & disadvantages After research we came up to the common place that is Vashi
- 17. LOCATION ADVANTAGES Vashi is a residential as well as commercial node in Mumbai It is a township in Navi Mumbai and was one of the first "nodes" developed by City and Industrial Development Corporation (CIDCO) Vashi is divided into many sectors of which Sector-1 to sector-8 is known for its fully residential buildings Sector-17 is known for its shopping areas Sector-30 is the new node which has got many malls and Information technology buildings and the Vashi Station
- 18. POSITIONING D2D!!! Will leverage it’s multi-pronged competitive edge to quickly gain market share Competitive edge is the Menu Multiple cuisines - Flavours - Options Unique techno savvy layout An elegant & comfortable environment
- 19. PRODUCT The Restaurant will Feature two venues: Restaurant Mainly for dining purpose Outdoor For Quick Bite
- 20. DEALS ON MENU The Restaurant will serve Lunch Dinner Snacks Chat Buffet will be Provided in lunch and dinner: 249 INR-for Veg. 349 INR –for Non Veg. Free Home delivery will be available on the order of more than Rs 200. Within 2 kms from Hotel PRODUCT cont...
- 21. PRICE 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00% 50.00% Direct Cost Indirect Cost Depreciation Interest Net Margin 48.61% 26.66% 1.85% 2.88% 20.00% Pricing
- 22. PROMOTIONS Free samples PR Activities Word of Mouth Discount Coupons Free Home delivery Various special offers throughout the week that people can come to enjoy
- 24. PEOPLE
- 25. FINANCE
- 26. FINANACIAL PLAN Restaurant’s financial model is based on a business concept to “Plan for the Worst , but Manage for the Best” Restaurant’s financial plan will include: Important assumptions Raising of Funds Start up expenditure Break even analysis Profit and loss statement Cash flow statement Balance sheet
- 27. RAISING OF FUNDS 75 75 30 0 10 20 30 40 50 60 70 80 Own (Active Partners) Borrowed (Sleeping Partners) Secured (Bank Loan) Capital Rs. In lacs
- 28. FINANCE OPTIONS
- 29. RESTURANT LAYOUT
- 30. MACHINERIES Support equipments: Chimney Air Conditioner Music System Computers Water Filters Software’s for data analysis Main equipments in kitchen: Heaters Stoves Fridges Griller Chillers Trolleys Microwaves Mixers
- 31. HUMAN RESOURCES
- 32. MANPOWER STRUCTRE Restaurant Manager Chef 1 Subordinate 1 Waiter 1 General Staff Subordinate 2 Waiter 2 Chef 2 Subordinate 3 Waiter 3 Subordinate 4 Waiter 4 General Staff Snacks Staff General Staff
- 33. SALARY STRUCTRE Chef Subordinate s Snacks Staff Waiters General Staff (Floring & Cleaning) Properitor's Salary 1 Security Payroll Expenses 600,000.00 480,000.00 120,000.00 480,000.00 180,000.00 240,000.00 120,000.00 0.00 100,000.00 200,000.00 300,000.00 400,000.00 500,000.00 600,000.00 700,000.00 AmountinRs. Payroll Expenses
- 34. OPERATIONS
- 35. BACKEND SUPPLY CHAIN ITEM ORDER FREQUENCY CREDIT PERIOD Vegetables Daily 10 Days Groceries Once a Week 7 Days Canned Food & Syrup Once a Month 1 month Milk & Paneer Daily 3-4 Days Cheese & Butter Once a week 0 Days Spices Once a week 7 Days Soft Beverages Daily 0 Days Bread and Cake Material Daily 7 Days
- 36. OPERATIONAL FLOW
- 37. Start Up Cost We believe this will be achieved by offering high quality services & excellent food with an interesting twist
- 38. MARKETING
- 39. PRE-LAUNCH Free Samples Lucky Draw-Fish Bowl- Golden Customers Public Relations SMS Launch Party Invitations – to families Social Media Marketing Pamphlets Customer Comment Cards WEB
- 40. LAUNCH PARTY 2nd April 2014 Evening Party Radio Coverage Free Sampling Invitation to MADAN KOHLI & PRATHMESH SONAWANE (well known personalities) in community
- 41. USP Unlike other sandwich & cake shops, we make our own sandwiches & cakes fresh each day Easy process for ordering menu Tech savvy, The matching game killed some of the anxious waiting time Personal attention from restaurant owners
- 42. PROS OF TABLE TABLET Easy to Use Ability to check the score and news Games pass the wait time fasters Mobile wireless at the table payment options
- 43. 9% 9% 19% 21% 11% 14% 13% 6% Sources/Distribution of customers (footfalls) Family & Friends Social Networking & Online portals Word of Mouth Local Marketing at local area (Vashi) Corporate offices Promotional offers FOOTFALL ANALYSIS
- 44. ASSUMPTIONS
- 45. Monday Tuesday Wednesd ay Thursday Friday Saturday Sunday Lunch 4500 4500 4500 4500 4500 13500 31500 Dinner 9600 9600 9600 9600 30000 45000 45000 Snacks Joint 6400 6515 6667 6515 6667 6362 6362 % Day contribution 8% 8% 8% 8% 15% 24% 31% 8% 8% 8% 8% 15% 24% 31% 0% 5% 10% 15% 20% 25% 30% 35% 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 AmountinRs. Day Wise Sales SALES ASSUMPTION
- 46. SALES ASSUMPTION CONT.. Q 1 Q 2 Q 3 Q 4 Sales 3,286,356.00 2,037,540.72 3,289,642.36 2,691,525.56 % Contribution 29.07% 18.02% 29.10% 23.81% 3,286,356.00 2,037,540.72 3,289,642.36 2,691,525.56 29.07% 18.02% 29.10% 23.81% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 0.00 500,000.00 1,000,000.00 1,500,000.00 2,000,000.00 2,500,000.00 3,000,000.00 3,500,000.00 AmountinRs. Projected Quarter Wise Sales
- 47. 25% 59% 6% 11% 17% Sales Lunch Dinner Cakes & Pastries Snacks (Joint) SALES BREAK-UP
- 49. FINANCIAL ANALYSIS Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Sales 11305064.64 14131330.8 19,783,863. 29280117.42 43920176.13 Net Margin % -1.65% 12.99% 21.78% 28.90% 33.85% -1.65% 12.99% 21.78% 28.90% 33.85% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 45000000 50000000 AmountinRs. Y - Y Analysis
- 50. Cash Receipts Q1 Q2 Q3 Q4 Op Balance 0 9,526,767 8,766,128 9,100,667 Food/Beverages (Sales) 3,286,356 2,037,541 3,289,642 2,691,526 Capital 15,000,000 0 0 0 Bank Loan 3,000,000 Total Cash Flow Receipts 21,286,356 11,564,308 12,055,770 11,792,193 Cash Outflows Q1 Q2 Q3 Q4 Food/Vendor Payments 821,589 920,180 1,077,103 1,084,087 Payroll (Include Taxes) 555,000 555,000 555,000 555,000 Rent 450,000 450,000 450,000 450,000 Utilities 339,000 339,000 339,000 339,000 Insurance 75,000 75,000 75,000 75,000 Interest on Loan 108,750 108,750 108,750 108,750 AMC 37,500 37,500 37,500 37,500 Cleanning Supplies 10,000 10,000 10,000 10,000 Staitonery 2,500 2,500 2,500 2,500 Uniforms 5,000 5,000 5,000 5,000 Selling & Distribution Exps 158,750 158,750 158,750 158,750 Admin Exps 24,000 24,000 24,000 24,000 R&M 2,500 2,500 2,500 2,500 Fixed Assets 4,555,000 Deposits 1,000,000 Preliminary Exps 3,505,000 Repayment of Loan 110,000 110,000 110,000 110,000 Total Cash Outflows 11,759,589 2,798,180 2,955,103 2,962,087 Net Cash Flow 9,526,767 8,766,128 9,100,667 8,830,106 Quaterly Cash Flow Projection Dawn to Dusk
- 51. Particulars Amount Partilcuars Amount To Purchases By Sales Restaurant Food 3,535,245.00 Restaurant Food 9,427,320.00 Joint Food 704,154.38 Joint Food 1,877,745.00 To Gross Profit C/d 7,065,665.63 11,305,065.00 11,305,065.00 To Payroll Exps Management 240,000.00 Store Personnel 1,980,000.00 By Gross Profit b/d 7,065,665.63 To Direct Operating Expenses Cleanning Supplies 40,000.00 Staitonery 10,000.00 Uniforms 20,000.00 AMC 150,000.00 To Selling & Distribution Expenses Marketing 75,000.00 Packaging 60,000.00 Sales Promotions Exps 500,000.00 To Utilities Electricity 780,000.00 Gas 456,000.00 Water Supply 120,000.00 To Administration & General Expenses Bank Charges 6,000.00 Credit Card Charges(Merchant Fees) 30,000.00 Miscellanoeus 10,000.00 Rent 1,800,000.00 Insurance 300,000.00 Audit Fees 35,000.00 Telephone & fax 15,000.00 To Repairs & Maintenance Restaurant & Joint Repairs 10,000.00 To Interest 435,000.00 By Net Loss 286,334.38 To Depreciation 280,000.00 To Taxes 0.00 Dawn to Dusk Trading, Profit & Loss Statement for the year ended on 31st March 2015 Grand Total 7,352,000.00 7,352,000.00
- 52. Liabilities Amount Amount Assets Amount Amount Owned Funds 7,500,000 Furniture & Fixtures 3,500,000 7,500,000 Kitchen Equipment 925,000 Office/Computers 113,000 CCTV Camera 15,000 Delivery Cycles 2,000 Depreciation -280,000 4,275,000 Profit & Loss A/C -286,334 Cash and Bank balance 8,830,106 Deposit 1,000,000 Bank Loan 3,000,000 9,830,106 Repayment 440,000 Borrowed Funds 7,500,000 10,060,000 Permitts & Licenses (Legal fees) 3,500,000 Business Plan/Prof Fees 5,000 3,505,000 Creditors 336,441 Current Liabilities 17,610,106 17,610,106Grand TotalGrand Total Balance Sheet as on Year Ended on 31st March 2015 Dawn to Dusk Fixed Assets Current Assets Preliminary expenses Capital R&S Long Term Liabilities
- 53. LIFE CYCLE
- 54. WORST ASSUMPTION Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Sales 11305064.64 14131330.8 19,783,863.12 29280117.42 43920176.13 Net Margin % -1.40% 11.04% 18.51% 24.57% 23.02% -1.40% 11.04% 18.51% 24.57% 23.02% -5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 0 5000000 10000000 15000000 20000000 25000000 30000000 35000000 40000000 45000000 50000000 AmountinRs. Y - Y Analysis
- 55. EXIT STRATEGY Know our location and value and their terms Keep your appeal up to date Cooperate with the corporate Sell it All Sell it to Employees or other partner Transfer ownership to a Family member of a partner or a friend