BAKERY Business plan

FRIENDS CAFÉ ULTIMATE HANGOUT DESTINATION

BUSINESS PLAN

BUSINESS PROPOSAL: The idea is to establish a focused Quick Service Bakery Outlet (QSBO) chain starting its first unit at sector 14 koperkhairne. 



The brand name of the restaurant is Friends Cafe and the company will be registered as Friends Cafe Pvt. Ltd



For Youngsters via quick service and the family who live in residential complexes via quick delivery will be targeted



An outlet of 720 square feet which has been brought by our partner Rohit to operate the restaurant from Circular Road

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Subodh, Vaibhav,Deepchand, Rohit, Padma , Archana, Prachi and Shital create a highly qualified team to run the company.

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Friends cafe will introduce new menu in the city which will include cakes, muffins, tarts, tea, coffee, all kind of breads, Pasta, Sandwich and Chicken burger to the customer.

Vision Statement:  Putting people before products.  Create a loyal following.  Deliver Quality Products.

Mission Statement: “Establish Friends cafe as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow”

LEGAL REQUISITE TO BE MET 1. 2. 3. 4. 5. 6. 7.

Partenership Deed 1932 The Shops and Establishments Department (BMC). The Licensing Department (BMC). The Health Department (BMC). The Building and Factory Department. The Weights and Measures Department.

FUNDS REQUIRED AND TIMING 

We plan to make two major investments: One in plant And Machinery , Raw Materials and one in shop premises development.

FINANCING Total Financing Required

35,00,000

Owner’s Fund

25,00,000

Loan’s

10,00,000

Total Financing

35,00,000

Cost of Goods Manufactured

2013

Total Direct Labour

1,30,000

Total Direct Materials

1,60,000

Manufacturing Overhead

total

75,000

3,65,000

Projected Balance Sheet as on December 31, 2014 Liabilities

Assets

Owner’s Fund

25,00,000

Land & Building

18,00,000

Loans

10,00,000

Plant & Machinery

12,00,000

Reserves & Surpulus

3,90,000

Current Liabilities Payables

Total

Current Assets 4,00,000

42,90,000

Receivables

1,00,000

Cash In Hand

5,50,000

Cash At Bank

6,40,0000

Total

42,90,000

INVENTORIES Raw -Materials  Work-In-Progress  Finished Stock 

ACCOUNTS RECEIVABLE/PAYABLE  Receivables 

For Bulk Orders we would provide a 15 days credit period.

 Payables 

We would be getting 1 month credit facility from suppliers.

ESTIMATED PROFIT & LOSS STATEMENT

Sales Less cost of

Year One

Year Two

Year Three

2,364,839

,202,645

7,591,132

2,096,056

4,578,327

6,604,286

268,783

624,318

986,846

224,740

243,404

345,690

44,043

380,914

641,156

9,043

76,184

145,751

32,900

304,730

495,405

sales Gross profit Less expenses Net income before taxes

Provision for taxes Net income after taxes

FINANCIAL PROJECTIONS: BREAK EVEN ANALYIS 1/20/2013

1200 1000

Revenue

800

Break-Even TR = TC

600

} Variable Cost

400

Fixed Cost Total Cost Total Revenue

200 0 0

[

20

40

60

80

100

Units Sold

Total Fixed Cost 15 B/E(Quantity) = Price per Unit – Var. Cost per Unit

]

You can’t be a successful entrepreneur unless you manage, and if you try to manage without some entrepreneurship, you are danger of becoming a bureaucrat

---Peter Drucker, The Frontiers og Management 1986

HUMAN RESOURCE PLAN.

ORGANISATION CHART

Board of Directors Café Manager

Head Baker/chef Stewards Assistant Bakers/chefs

CAFE MANAGER  Responsibilities:

To Oversee daily production.  Preparing Work Schedules.  Assigning Employee Tasks and supervise them.  Ensures product quality.  Purchases of raw materials.  Keeps facility running, and clean.  Look after Accounting Duties. 

HEAD BAKER/CHEF 

Responsibilities:       

Working long hours. Ability to follow recipes. Ability to produce quality product. Ability and experience to use ovens and mixers. Dishwashing and janitorial skills. Delegate work to the Assistant bakers. Maintain hygiene.

ASSISTANT BAKER 

Responsibilities: Assist Head baker in baking.  Maintain Hygiene.  Dishwashing and janitorial skills. 

Stewards Operate Cash register.  Take orders and serve customers.  Dishwashing, and basic janitorial skills 

HR STRATEGIES Motivation: Best Recipe Award.  Star Chef of the month.  Monetary/ Non monetary benefits.  Grievance redressal System. 

ADDITIONAL TRAINING 

All staff members will be given six monthly training for one day on Safe Food Handling Course.

SAFETY MEASURES IN THE KITCHEN Clean aprons/ gloves for the bakers/ chefs.  First aid kit.  Proper place for cutlery.  Dress code for the stewards.  Quality equipments and standardised kitchen. 

SALARY STRUCTURE Designation

Salary

Cafe manager

35,000 p.m

Head baker

20,000 p.m

Assistant Bakers

12,000 p.m

Stewards

8000 p.m

OPERATIONS PLAN



The proposed factory will be consisting of 2000 sq. ft. of land starting its first unit at sector 14 koparkhairane.



Whereas the shop areas will be 300 sq. ft for each outlet.



There will be separate area for each departments.

PLANT LAYOUT

WORK PLAN 

The proposed bakery outlet will be working from 4.00-am morning to 11.00 pm

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4:00am – Start Baking

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8:00am – Bakery Opens

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11:00 pm Bakery Closes

SOURCING/RECEIVING 

We will buy in bulk from a list of approved vendors.

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Recommendations from competitors, customers and wholesale supply houses are some of the factors .

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We also rely on newspapers, magazines and the internet if we require more sources.

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The criteria includes conformance of products to our quality standards, certification, timely delivery, minimum order quantities.

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We will utilize the visual method to keep inventory check.

PROCESS / METHODS 

Equipment used are convection oven, commercial mixers, coffee machines, commercial refrigerators and freezers



some of the other supplies will include bakery boxes , cake boxes, cake decorating equipment, dough forming equipment, food display cases and bread equipment.

CLEANING 

To minimize pest infestation.



On a quarterly basis level of quality check.

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Training course on cleaning procedures

RAW MATERIAL Plain Cakes - Butter, sugar, Maida , baking powder ,Eggs , flavour Sweets – Khoya , Maida , ghee , sugar syrup Chicken Bread – Chicken , Maida , oil, yeast, sugar, salt , masala, onion, Mayonnaise & Ketchup , Cheese

TECHNOLOGY AND PROCESSES 

Local machinery or 2nd hand imported machinery available locally



New machinery and installation would not be feasible due to the high costs involved.



Major suppliers of Local and used imported machinery are: Bakexcel Associates, Vashi Saeed Fabrication Works, Thane

BATCH PRODUCTION

MASS CUSTOMIZATION

PLANT & MACHINERY 

Automatic oven with different timing and different temperature.



Oven of 7x7x10 feet with 8 rotating stands having 5 trays on each stand is used

Oven capacity will be:  60-kg biscuits in 30 baking minutes at a temperature of 150 degree centigrade. 



120 pieces of large Pizza in 20-25 minutes at a temperature of 150 -180 degree centigrade.

MACHINERY REQUIREMENT 

Spiral Mixer, Oven, Burner , Deep freezers, Frier , Packing machine, Cold storage equipment, Fixed racks , Trays

Repair & Maintenance Annual Repair & Maintenance of the plant and machinery is expected to be 1 % from Year 1 --4 and 1.5 % from Year 5 --- 10 of the total machinery cost. 

Furniture & fixtures 

Chairs ,tables & other furniture, Airconditioners , Computers & accessories , Interior designing cost, Electric installations & other utilities

MARKETING PLAN

THE MARKETING MIX 4 P’S 

Products/Services      

Breads-various varieties Buns Tarts Muffins Cookies Sitting area with coffee/tea and in-store products

MARKETING MIX 

Price  



Promotion    



Cost plus pricing. but still competitive

Pamphlets. Billboards. Colleges. Discount coupons.

Place 

KoparKhairane.

SEGMENTATION, TARGETING AND POSITIONING 

Population of Koperkhairne and Navi Mumbai.

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Target markets    

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Koperkhairne. Ghansoli. Rabale. Airoli.

Positioning 

Affordable healthy and Delicious.

SWOT ANALYSIS 

Internal Strengths   



Partnership business Location Homemade recipes

Weaknesses New entrant  Increased prices of raw material. 

SWOT 

External Opportunities  



Desire for healthier lifestyle. Niche market in urban areas.

External Threats   

Change in lifestyle trends. Increased fuel prices. Competitors having competitive prices.

MARKETING PLAN BUDGET Marketing Budget Advertising

Expenses/year

Newspaper

--

Pamphlets

20000

Other Billboard

15000

sponsorship

40000

Promotion and Development Business cards

1900

Travel expenses

15000

Total Marketing Expenses

91,900

STANDING PLAN  If  

price of bread decreases: have to either increase sales to a break even level the bakery would have to find a way to decrease fixed costs

 Methods  

additional stall at the Saskatoon farmers market craft sales throughout the province

CONCLUSION

THANK YOU