Group Members:1. Ekta Yadav2. Himanshi Jain3. Kiran Sharma4. Megha

Girdhar

Red Chilis

PROJECT PROPOSAL

Owners: Neeraj Kumar & Rakesh Bansal

Name of the Restaurant : RED CHILIS- fast food restaurant

Location: Rajori Market, West Delhi

Estimated Project Cost: Rs. 1,81,50,000

Area : 3000 sq. foot

Time Duration: will commence within 60 days

RESTAURANT DESCRIPTION

The restaurant will be owned by Neeraj Kumar and Rakesh Bansal, the creator and managing member of the company, Paras Pulp Pvt ltd. Red Chilis will be a moderately priced, high-end, fine dining restaurant with the “down home” theme. It will be serving vegetarian and non-vegetarian food, Main Cuisine consisting of Indian, Chinese, and sub continental dishes.Restaurant will be leasing 3000 square foot located in Rajouri MarketThe décor of Red Chilies will be featured with wood accented construction and the glass dining tables will be surrounded by heavy wooden chairs that will be accompanied by leather seat covers

CONTI.. The restaurant will be opened 7 day a week.

Mon – fri: 11am to 10 pm

Sat – sun: 12 am to 12 pm

The estimated cost to open the restaurant is Rs 1, 81, 50,000.

Project will require approximately 30 days completing.

 

PLANT LAYOUT DESIGN

BUSINESS OBJECTIVES

The primary objectives of the business plan are:

  To become a premier home-style restaurant in

Rajouri market, west Delhi

To provide high quality meals at reasonable prices with wonderful Experience.

 

MISSION STATEMENT 

Our Mission is to provide a different, unique and relaxing dining experience –the one similar to dining at home. We will try to achieve this goal by:

By providing simple, delicious menu items incorporating with quality ingredients at reasonable prices.

By treating each and every member of staff and our customers– with dignity and respect – just like- we would at our own home!

KEYS TO SUCCESS

Hiring Top-notch chefs and training them, so they remain top in his game and paying them top wages to ensure they stay with us.

Providing excellent product and service, which builds customer loyalty.

Word of mouth marketing, every customer who comes in once should recommend us and want to come again.

DETAILS OF EXECUTION SERVICE

DAILY PRODUCTION AND OPERATIONS

According to our business plan of red chili restaurant, our restaurant will be open all 7 days in the week and therefore if planned to go for multiple shift system for our employees .that is as follows

Mon-Friday – 9 am to 11pm Saturday – Sunday 10am to 12pm In both the shifts we planned to keep 3 cooks with one

head COOK or you can say cook team manger. 3 waiters, one general manger, 1 gate keeper, 2 cleaning persons.

  Managers – full time Cashier – full time Cook - shift wise Cleaning person – permanent Gatekeeper – permanent

SUPPLIERS

For the suppliers of raw materials our partners have established relations with some qualified suppliers. These will insure ours of delivering the required products to ours at low price without most quality. These suppliers are local shopkeepers in Rajouri but are known for their products in that area.

MANAGEMENT CONTROL   Some of the systems we thinking to use

for the purpose of management control system are as follows –

Order guide Weekly inventory Daily inventory tracking

ADMINISTRATION ANALYSIS

Weekly prime cost report Daily cash control Purchasing records / payables Payroll processing Future service

Position Salary Experience Job description Working hours

Entry Level Education

Food Service Manager 30,000/month 1-5 years Manage, coordinate and organize the daily operations

Look for customer problems

Handle sudden problems i.e. inventory problems, complaints

10 hours High school diploma

Waiter/Waitress 7,000-10,000/month(depending upon experience)

1-3 years Serve customers Take orders Solve issues Ensures the place(table)

clean

12 hours 10th and 12th passEven college students(graduates) can apply

Cashier 25,000-28,000/month

2-4 years Billing Taking food orders in the

absence of managers Ensures transactions are

done properly

10 hours Should be graduatedGood with calculation and numbers

Cleaner 3,000-5,000/month 0-2 years Clean the tables after customers finish with their food

Complete restaurant cleaning in the morning and after closing

Solve any issues during any damage.

12 hours No specific education level required

Security Guard 12,000-15,000/month

1-3 years Greeting customers while they come in and go out

Help in parking with the vehicles

Protection from any unwanted people to enter the restaurant premises

12 hours (day and night shift)

No specific education level required

MARKET ANALYSIS

Indian restaurant industry is worth Rs 75000 crores- annual rate of 7%

As per Indian Restaurant Market Analysis, this section is expected to grow at a compounded annual growth rate of about 33.6% during 2010-2013.

Major companies include- KFC, Pizza Hut, Zen at Leela Palace, Karavali restaurant at The Taj, Sakura at Metropolitan Hotel in Delhi, etc.

INDUSTRY ANALYSISThis Restaurant Industry comprises establishment primarily engaged in providing food services to patrons who order and are served while seated (i.e., waiter/waitress services) and pay after eating.

The Industry consists of full service restaurants(FSR) and limited service eating places which includes Quick service restaurants (QSR) like buffets, snacks bar, cafeteria, and non-alcoholic beverage bars.

FSRs depend on high-margin and finance. Whereas, QSRs rely on proficient operations and high volume sales.

Annual revenue per worker is under Rs 31,00,000. Since this restaurant industry is highly competitive, so

the site selection is also critical.

MARKET SIZE- The Indian restaurant industry includes 1.5 million restaurant approx.. of which slightly more than 4,000 restaurants form the organized segments with combine annual revenue of about Rs75,000 crores in year 2012-growing at annual rate of 8%.

The Major competitors of Red Chilis are:

Bukhara resturantSpice RoutePunjabi by NatureKarim'sChor BizarreMotiMahalDelux

The major target of consumer for the initial phase of Red Chilies fits the profile of an average to high-income earner, with a clean, healthy and fresh lifestyle orientation.

MARKET STRATEGY

Red Chilies will place itself as a high end fine dining restaurant with the “down home” theme

We are using POS system (Integrated software system for restaurants and bars)

We can focus on cost savings and various changing trends of the industry.

We tend to provide job opportunities to the students

CONTI..

At Red Chilis we are proactive with the employees by reviewing their performance and giving them appraisals

We are linked to various social media such as Facebook, Twitter

SWOT ANALYSIS\

Strengths

1. Central location of West Delhi which is easy to access and reach

2. Caters to fine dining experience

3. As the owner have industry experience, thus very well know as to how to treat the customers in exceptional way

4. Experience and reliable staff with “ Can Do” attitude

5. Focus on Menu Reengineering

6. Serves food made of quality ingredients

Weaknesses

1. Retention of the employees due to tough competition in the market

2. Difficult to capture the customer insights and demands

Opportunities

1. Less barriers to stop from entering into the markets

2. Outdoor catering services (addition basis)

Threats

1. Government mandatory regulations regarding the health

safety, employee safety, healthy environment job, wages etc.

2. Reduction in profits due to decreasing sales or increase in operating costs

3. Consumer perception (Outside food is not safe for health)

4. Other stores and general/convenience stores nearby in the market

SWOT

STRATEGY PYRAMID

Tactics: First creating awareness about our restaurant that is by setting up logo and signage

Secondly greeting the customers with the servicesPrograms: Employee training on the basis of the customer service

UNIQUE SELLING PROPOSITION 

Red Chilis is going to offer quality home style food just in the way the food is offered at home with the price range that dosent increase the standard price

Price range: 450-700 Prices are as such that are easily acceptable

by the customers as we focus on seasonal menu and also we are planning for the menu reengineering so that we can achieve the customer satisfaction with high profits.

COMPETITIVE EDGE

The competitive edge of Red Chilis is the human resources that are there in the restaurant (let it be the staff members, workers, cleaners etc.).

In our restaurant the meals, services and other things are possible because of the staff members present in the organization.

This is our goal to hire those team members that are loyal, honest, hardworking and punctual with good communication skills, know the way to handle customers

MARKET POSITIONING

We will employ strong marketing efforts in achieving our set up goals. Goals can be achieved by the following means: Database Loyalty/Birthday club program Menu Re-engineering Donations/Charities Develop relationships

PRICING STRATEGY

The profitability at our restaurant varies according to the individual profit gain by the various dishes.

We also focus on cost accounting and inventory management for the profitability

By maintaining the cost report and the cost accounting of the restaurant we are able to see for the costs of goods and as to how much have to be paid to the labor.

\

PROMOTION AND ADVERTISING STRATEGY

Location Word of Mouth Direct Mail Newspapers Television/Radio

SALES STRATEGY

Surveys found that very less customers complain about the problems that they face with the management.

If the complaints are serious then they will be documented in the file and customers feedback will be taken at the end of their meal during billing.

FINANCIAL ANAYLSIS Basic assumptions:

Meals price range b/w: Rs.400- 750 Average price of lunch: Rs.440 Average Price of dinner: Rs.690 Seating Capacity: 90 seats Employees : 20 Target revenue: Rs.4 to 6 cores

START UP COST ESTIMATIONStart-up expenses Amount(Rs)

Restaurant logo and name creation 50,000

Lease Deposit 60,000

Contingency 500,000

Outdoor Sigh 150,000

Building improvement 25,00,000

Working capital 86,25,000

Pre opening expenses 740,000

Total Start-up Expenses 1,26,50,000

   

Start-up Assets Amount(Rs)

Artwork 40,000

5 A/c + 4 LCD 7,60,000

Kitchen fully equipped (hood,small wares, burner, work table, utensils etc) 16,85,000

2 freezers 3,00,000

Liquid fire Protection System 4,00,000

20 wooden dinning Tables 10,00,000

90 wooden chair 2,50,000

20 track lights 50,000

Table cloth, napkins 60,000

Big Dish washer 3,50,000

20 Quad Food processor/blender 45,000

Ice maker having storage 2,00,000

Decor 1,00,000

2 Computer system 85,000

POS system( cash register) 200,000

Total start up assets 55,25,000

   

Total Start up Cost Required 1,81,50,000

SOURCE OF FUNDSource of fund Amount(Rs)

Owner’s fund 87,00,000

Bank loan 94,50,000

Total source of fund 1,81,50,000

   

Use of fund  

Building Improvement 25,00,000

Restaurant assets 55,25,000

Administration expenses 740,000

Promotional Expenses 200,000

Other Expenses 60,000

Working Capital 86,25,000

Contingency fund 500,000

Total use of funds 1,81,50,000

SALES PROJECTION

Estimated Sq Feet area: 3000 Avg. lunch price: Rs. 440 Avg. dinner price: Rs.550 No. of seats : 90Per Day sales projection (assuming

250 customer per day)  Customers Avg. price for

meal(Rs)Sales

Lunch 100 440 44,000

Dinner 150 550 82,500

Total 250   1,26,500

       

Per day sales for 250 customers will be Rs.126500 Avg. monthly sales: Rs.37, 95,000(126500* 30)

Annual sales: Rs.4,55,40,000 (37,95,00*12) Annual sales per sq. foot: Rs.15180 (45540000/3000) Annual sales per seat: Rs.5,06,000 (45540000/90)

We are expecting, 5% increase in sales revenues for next 3 years annually.

PROFIT AND LOSS STATEMENTParticulars Year 1 Year 2 Year 3

Income In Rs.. In Rs…. In Rs…

Sales 4,55,40,000 4,78,17,000 50207,850

COGS (2,01,65,000) (2,07,88,000) (2,13,30,000)

Gross profit 2,53,75,000 2,70,29,000 2,88,77,850

Expenses      

Salaries & wages 1,13,50,000 1,16,15,000 1,1710,000

Rent 6,00,000 600,000 600,000

Insurance 400,000 500,000 550,000

Bad Debts 12,00,000 12,50,000 13,00,000

Legal/accounting 600,000 600,000 600,000

Miscellaneous 600,000 8964000 9693850

Total Expenses 2,33,75,000 2,35,29,000 2,44,53,850

       

Net profit 20,00,000 35,00,000 44,24,000

BALANCE SHEET  Year 1 Year 2 Year 3

Assets In Rs.. In Rs…. In Rs….

Current assets      

Inventory 7,00,000 735000 790150

Account Receivables

46,75,000 45,09,000 42,59,650

Cash 44,00,000 4620000 4966500

Other Current Assets

64,75,000 6798750 7308650

Long term Assets 72,25,000 7586,000 8155200

Total Assets 2,34,75,000 2,42,48,750 2,54,80,150

       

Liabilities and Capital      

Capital Liabilities      

Account Payable 14,50,000 1522500 1636700

Other current liability

14,25,000 1496250 1608450

Long term Liability 94,50,000 95,22,500 96,50,000

Capital invested 1,11,50,000 11707500 12585,000

Total Liabilities 2,34,75,000 2,42,48,750 2,54,80,150

RISK MANAGEMENT

Risks associated with out restaurant are employee practices liability, employee dishonesty and product liability.

Two hazards which can quickly drive restaurant into bankruptcy are- damages caused by fire and damages being linked to a food borne illness.

The main objective of Red Chilis is to develop a risk management plan to minimize all potential safety and security risks; to maintain a positive public image.

We need to provide a safe working environment as well as prepare and train for the unforeseeable accidents, damages etc.