Business Plan About Under Water and Jungle Restaurants

 

Entrepreneurship Management Project Report on GROUP NO: 7

Submitted To:

Submitted By:

 

Group No: 7  

Prof. Shinu Abhi

Clevin

Carvalho, Vamsi Kanth,

Vivek Kumar Chaturvedi.

Executive Summary “A well-run restaurant is like a winning baseball team. It makes the most  of every crew member's talent and takes advantage of every split-second  opportunity to speed up service. “ 

  Thi This s is wha hatt we ha hav ve tried ied to leve verrag age e th thrrou ough gh ou ourr bu busi sine ness ss plan plan

“Oceania”. “Oceania” is a restaurant for

fun-seeking as well

as

sophis sop histic ticate ated d din diner ers s loo lookin king g for goo good d foo food d in a fasc fascina inatin ting g atm atmosp ospher here; e; where they are given a chance to experience the wonderful underwater and  jungle themed restaurants which they had missed out so far. Today it is seen that with most of the people are interested to spend their leisure time going out to different places which gives them new look and experience. After a feasibility study of cross section of people, in Karnataka, Tamil Nadu, Andhra Pradesh, Bangalore and Chennai in the age group between 20 to 50 years, the most preferred menus have been selected for start – up phase of the restaurant. The menus offered would be: 

On th the e Wa Wate ter' r's s se serv rvic ices es are are al alll de deli live vere red d in thei theirr ex extr trao aord rdin inar ary y atmosphere which includes a comprehensive art and culture collection from US and India.

 

 The menu contains traditional favorites such as Other Ot her me menu nu ite items ms are kebo kebobs, bs, chu chutne tneys, ys, fla flatt bre breads ads and des desser serts. ts. Everything is fresh, homemade, and prepared daily.

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Group No: 7



 

And An d add addit itio ion n to the the me menu nu othe otherr se serv rvic ices es incl includ udin ing g the the wi wine ne an and d beverages and sprits

 The differentiating factor of  “Oceania” would be it’s extensively for young adults, keeping in mind the fact that their experience is different from that of  others because of which they may not feel existed with other restaurants.  Though “Oceania” had been called a restaurant, it would be more than a   just restaurant, it would be a single stop solution for younger and adult generations where they acquire new experience and also engage in hobbies for leading a more fulfilling and enriching life. There would be well attractive space birthday birthday parti parties es cele celebrati brations, ons, and other occasi occasions ons and many more of  such suc h ev event ents s to kee keep p peo people ple eng engage aged. d. The pos positi itioni oning ng of the restau restauran rantt would be a not a rest restaurant aurant but an amazi amazing ng place, where one spends one’s time constructively, experiencing new things.  The industry when analyzed using Porter’s Five Force model, showed that it is quite attractive, as there is no player in the market at present which provid pro vides es a sim simila ilarr off offeri ering. ng. “Oceania” fac faces es ind indir irect ect com compet petiti ition on fro from m players like local restaurant players and pubs Initially the restaurant would start at one location Bangalore – which would be ac acti ting ng as se sepa para rate te prof profit it ce cent nter ers s an and d ma mana nagi ging ng thei theirr op oper erat atio ions ns indepe ind epende ndentl ntly. y. The me menus nus off offere ered d wou would ld rem remain ain sam same e thr throug oughout hout and region reg ional al pre prefer ferenc ence e wou would ld be tak taken en int into o con consid sidera eratio tion n for the tra tradit dition ional al menu me nu.. Th The e me menu nus s are are pr pric iced ed di diff ffer eren entl tly y fo forr we week ekda days ys,, we week eken end. d. Th The e revenue generation would be based on certain charges for each item.

“Oceania” would be breaking even in the third year of operations. An initial startup capital of Rs. 4 cores would be required for starting the 2 units. The growth plans are to expand based on the movement and demand of the market.

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Group No: 7  

“Oceania” is a novel idea and the major reason for its success would be its innovative serving model. The impression and experience that the people would enjoy with “Oceania” would lead it forward in the future and this would be a major platform for them to enjoy their passion and lead a more happy life.  There is need for this offering in the market and we are passionate about this idea, so “Oceania” is a means to match the need with our passion.

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Group No: 7  

Background Information Concept We have experience it ourselves more need for new restaurants when we spoke to our friends and relatives about the themed restaurants and their leisure leisu re time hobbies. This inspired us to come up with an arrang arrangeme ement nt that would make them happy at fascinating atmosphere and keep them engaged in our absence, thus leading to origin of  “Oceania”   The The con concep ceptt of  “Oceania” orig origin inat ates es fr from om the the fact fact that that,, in this this ag age e of  adva ad vanc nced ed tech techno nolo logy gy an and d un unor organ ganiz ized ed re rest staur aurant ants, s, a ma majo jori rity ty of ou ourr youn yo unge ger’ r’s s an and d adu adult lts s feel feels s left left be behi hind nd an and d lo look okin ing g fo forr so some meth thin ing g ne new w fascinating atmosphere restaurants. Also, people need something to make them feel new every time to themselves with and at present there is no such offering in the market. “Oceania” aims to become that the place for the youngsters where they can enjoy their passion.

“Oceania” is different because of the exclusivity for elderly people and the vari va riet ety y of it item ems s of offe fere red d un unde derr a si sing ngle le roof roof.. “Oceania” would be a re rest staur auran antt me mean antt es espe peci cial ally ly fo forr yo youn unge gerr pe peop ople le wh wher ere e me menu nu co cont ntai ains ns traditional favorites, other menu items are kebobs, chutneys, flat breads and desserts. Everything is fresh, homemade, and prepared daily. In addition to the menu other services including the wine, beverages, and sprits. Though has s be been en ca call lled ed a re resta staur urant ant,, it wo woul uld d be mo more re than than a just just “Oceania” ha rest restau aura rant nt,, it wo woul uld d be a si sing ngle le stop stop so solu luti tion on for for yo youn unge gerr an and d ad adul ultt generations where they acquire new experience and also engage in hobbies for leading a more fulfilling and enriching life. There would be well attractive space birthday birthday parti parties es cele celebrati brations, ons, and other occasi occasions ons and many more of  such suc h ev event ents s to kee keep p peo people ple eng engage aged. d. The pos positi itioni oning ng of the restau restauran rantt would be a not a rest restaurant aurant but an amazi amazing ng place, where one spends one’s time constructively, experiencing new things. 3

 

Group No: 7

Drivers

 

60% of the population of India is between 20 to 50 years. These people spend their leisure time by hanging around restaurants, pubs and shopping centers. At the same time, they are mostly bored going to the same places every time. For these people it becomes even more difficult spending their time as they do not like to see the same places every time. Few Fe w of th the e ma majo jorr dr driv ivin ing g fa fact ctor ors s that that lead lead to the the co conc ncep eptu tual aliz izat atio ion n of 

“Oceania” are as follow:   

Increasingly demand for restaurants in our day to day life.  Younger generations are looking for something new to have fun.

No well organized and wonderful themed restaurants in the market

Due to the above mentioned factors it could be concluded that youngsters need to engage themselves in for fun and joy to lead a happier life and hence “Oceania” is the solution.

Business Proposition Services Offered One thing that is always consistent with on restaurant is their impeccable service. All server staff hired has extensive experience and all go through three weeks of training, ensuring benchmarked customer service. On the Water's services are all delivered in their extraordinary atmosphere which includes a comprehensive art and culture collection from US and India. This provides an authentic surrounding that at times seems to distract everyone as they analyze the wealth of artifacts on display.   The menu contains traditional favorites. These favorites are differentiated through the use of the freshest organic ingredients. Most people are not 3

 

Group No: 7  

aware of how much better the items taste when they are prepared with the freshe fre shest st ing ingre redie dients nts and mad made e wit with h lov love. e. Oth Other er men menu u ite items ms are kebobs kebobs,, chutne chu tneys, ys, fla flatt bre breads ads and de desser sserts. ts. Eve Every rythi thing ng is fre fresh, sh, hom homema emade, de, and prepared daily.  The menus are of daily (Weekdays), weekends basis.  The medium for serving would be both in US and increase India traditions. It can ca n be as assu sume med d that that mo most st ad adul ults ts wo woul uld d no nott be co comf mfor orta tabl ble e wi with th on only ly nontraditional food as the medium of serving and therefore traditional food woul wo uld d be a mo more re pr pref efer erre red d medi medium um.. Th This is wo woul uld d pr prim imar aril ily y the the ma mark rket et coverage and also helps in scalability.

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Group No: 7  

Customer Profile On th the e re rest staur auran antt wi will ll be targ target etin ing g lo loca cals ls an and d tour touris ists ts wh who o are are ac acti tive ve restaurant seekers. There will be a special focus on young adults with 15K 60K of income looking for good food and a great time. In addition to the young adults with money to spend, On the Water will also be targeting adults and tourists. The general demographics are males and females ages 20-50 with some or all of a college education.

Historically, if there is a dip in the general economy, the restaurant industry is usually effected far less that the overall economy. To some degree this is because of people's perception that food, regardless whether it is from the groc grocer ery y or rest restau aura rant nts s is a fu fund ndam amen enta tall ne nece cess ssit ity y of li life fe an and d sp spen end d accordingly. Pricing Strategy  The price for each of the item mentioned are enlisted below. All the figures shown below are monthly charges and are in Indian rupees. Positioning  The restaurants will be positioned as merely a service provider but as a way of

fun

and

joy.

The

tagline

of  

“Exp “E xper erie ienc nce e th the e

reality……”  would be used to create reality and new experience to customers. It is like a new world to youngsters or adults.

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Group No: 7  

 The unique selling propositions of the offering are as follow: 

A under underwat water er restau restauran rantt wi with th aff afford ordabl able e pri price ce men menu u (Un (Under derwat water er Restaurant)



Experience the jungle atmosphere in the city (Jungle Restaurant)



Feel as a king from the extraordinary services



All food items under single roof 

Promotion of the Service   The The in init itia iall re respo spons nse e towa toward rds s the the pr proj ojec ectt is gr great eatly ly de depe pend nden entt on the the marketing strategies adopted.

Branding: 

 To build a brand image for itself, the restaurant has chosen the brand el elem emen ents ts li like ke the the lo logo go,, the the tagl taglin ine e that that go goes es we well ll wi with th its its va valu lue e proposition.



 The advertiseme advertisements nts should focus on new worl world, d, real reality, ity, fun and joy in restaurants, with the target audience.

Communication Communicat ion strategy:  The communication objective is to initially develop awareness about the USP in the market as this is a new concept and then concentrate on influencing the the cu cust stom omer ers s to ex expe peri rien ence ce the the re real alit ity. y. Th Thre ree e elem elemen ents ts ha hav ve be been en considered as part of the marketing communication mix.

Marketing channels: Variou Var ious s mar market keting ing cha channe nnels ls hav have e bee been n con consid sider ered ed lik like e new newspap spapers ers,, TV chann ch annel els s an and d ra radi dio. o. Ti Tie e – up ups s wi with th fi five ve star stars s ho hote tels ls an and d big big co corp rpor orat ate e institutions to get the corporate look. 3

 

Group No: 7  

External customers:   Those customers who experienced the reality would definitely spread the experi exp erienc ence e abo about ut the rea realit lity y and ser servic vices es pro provid vided ed at “Oceania”.

It is

believed that word of mouth would reach create more loyalty and publicity than any other branding. Word of mouth would be the main form of our communication to the potential customers.

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Group No: 7  

Infrastructure Requirements for Execution In the initial stage the plan is to start two restaurants in Bangalore –  The major infrastructure requirement requirement for starting the venture is the space for sett se ttin ing g up th the e re rest stau aura rant nt.. Ap Apar artt fr from om the the sp space ace re requ quir irem emen ents ts,, othe otherr requirements include furniture, High quality glass, and cooking furniture as well. The premises would be taken either on rental or lease and all other requirements would be purchased. Approximately an area of 1lakh square feet is being considered for underwater restaurant and approximately an ar area ea of 70000 to 80000 sq squa uarre fee feet is be beiing co cons nsiide derred for for Jun ungl gle e restau staurran ant. t.

Inte Intern rnet et

con onne nec ction tions s

wou oulld

also also

be

req equi uirred

for for

whi hich ch

connections will be subscribed to and monthly charges would be paid. The appr ap prox oxim imat ate e de deta tail ils s of qu quan anti titi ties es re requ quir ired ed ha have ve be been en sp spec ecif ifie ied d in the the financials section. Organization Structure  The business model is based on the idea of each of these two units would acts as separate profit centers and manage their operations independently.   The menu would remain same but the item charges would differ for each restaurant.

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Group No: 7  

Each unit shall have a Manager who will manage the day to day operations of the units and would be reporting on thrice a week basis to us. The unit will have As the demand grows, the number of employees will increase according to manage manag e th the e wo work rklo load. ad. Th Thus us the the orga organi niza zati tion on ch char art, t, wh whic ich h is qu quit ite e fl flat at structure initially, is shown.

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Group No: 7  

Industry and Market Analysis

  The The con concep ceptt of  “Oceania” orig origin inat ates es fr from om the the fact fact that that,, in this this ag age e of  adva ad vanc nced ed tech techno nolo logy gy an and d un unor organ ganiz ized ed re rest staur aurant ants, s, a ma majo jori rity ty of ou ourr youn yo unge ger’ r’s s an and d adu adult lts s feel feels s left left be behi hind nd an and d lo look okin ing g fo forr so some meth thin ing g ne new w fascinating atmosphere restaurants. Also, people need something to make them feel new every time to themselves with and at present there is no such offering in the market. “Oceania” aims to become that the place for the youngsters where they can enjoy their passion. Few Fe w of th the e ma majo jorr dr driv ivin ing g fa fact ctor ors s that that lead lead to the the co conc ncep eptu tual aliz izat atio ion n of 

“Oceania” are as follow: Increasingly demand for restaurants in our day to day life.

 

 Younger generations are looking for something new to have fun.



No well organized and wonderful themed restaurants in the market

Due to the above mentioned factors it could be concluded that youngsters need to engage themselves in for fun and joy to lead a happier life and hence “Oceania” is the solution. Players in the market faces es num numer erous ous cha chall lleng enges es fro from m num number ber of restau restauran rants, ts, sta starr “Oceania” fac hotels and other independent services. The major competitors would be big valu va lue e

ch chai ain n

re rest staur auran ants ts

li like ke

Oh Ohri ris s

Re Rest stau aura rant nts, s,

Kh Khai aira rali li

re rest staur auran ants ts,, 3

 

Group No: 7  

Hyderabad House, independent services likes KFC, Mc Donald’s, Pizza Hunt, Dominos, local players and other star hotels llike ike Taj residency residency,, Leela Palace, Holiday Inn, Oberoi etc. All these competitors positioned themselves as a place to have food which is called restaurant. And none of these food chains are in themed based.

But “Oceania” will definitely enjoy the competitive advantage in positioning itself saying

“Expe “Ex perie rience nce the rea reali lity… ty……” …”

whic wh ich h

wo woul uld d

prove the reality and new experience to customers under water and jungle themed restaurants. It would be more than a just restaurant, it would be a single stop solution for younger and adult generations where they acquire new experience and also engage in hobbies for leading a more fulfilling and enri en rich chin ing g li life fe.. Th Ther ere e wo woul uld d be we well ll att attra ract ctiv ive e sp space ace birt birthd hday ay pa part rtie ies s celebrations, and other occasions and many more of such events to keep peop pe ople le en enga gage ged. d. Th The e po posi siti tion onin ing g of the the rest restau aurran antt wo woul uld d be a no nott a restau staurrant

but

an

amazing

plac ace e,

where

one

spends

one’s

time

constructively, experiencing experiencing new things.

Aspirations of the Oceania Vision & Mission On Th The e rest restau aura rant nt is a bu busi sine ness ss that that en enve velo lope pes s fi fine ne dini dining ng of un uniq ique ue Mediterranean taste and an excellent bar and grill atmosphere. The mission is not only to have great tasting food, but have efficient and friendly service. Our di

ni ning ng e env nviiron onm men entt is n no ot on only ly w we elcom lcomin ing g an and d so soph phiistic sticat ated ed;; it iis s

unique in design, with walls on almost all sides that are constantly wet with ru runn nnin ing g wa wate terr an and d a lush lush jung jungle le ce ceil ilin ing g that that wi will ll ha hang ng from from abo above ve.. We concentrate on customer satisfaction and quality food that is always fresh 3

 

Group No: 7  

and specially selected. We will not judge a customer on class or dress. We want the On The Water grill to be place people can enjoy a good meal and meet new friends at our tropical Mediterranean Honey bar located inside the restaurant. Background of Entrepreneurs   The The te team am co comp mpri rise ses s of tw two o bu budd ddin ing g en entr trep epre rene neur urs s wh who o are are cu curr rren entl tly y pursuing their PGDM (MBA) from IFIM B- School, Bangalore and both of them are are sp spec ecia iali lizi zing ng in Ma Mark rket etin ing g an and d Ge Gene nera rall Ma Mana nage geme ment nt.. Am Amon ong g bo both th entr en trep epre rene neur urs, s, on one e ha has s on one e an and d hal halff ye year ars s of co corp rpor orat ate e ex expe peri rien ence ce in Marketing and also specialized in Accounting Package from BDPS. And other one on e

ha has s

expe perrien enc ce

in

Ev Even entt

Man anag agem emen entt

Ma Marrke ketting ing

and

ac acti tiv vely ely

participated in Personality Development Programs. Also both of them have proved the lea proved leader dershi ship p ski skills lls in org organi anizin zing g sem semina inars rs at IFI IFIM M cam campus pus and worked as Team Leaders for various projects. Moreover one of them has good experience in Marketing Research and worked with AC Nielson Org Marg Pvt Ltd which would be of added benefit for understanding the needs of  customers in better way.

Company Summary “Oceania” creates and serves a wild atmosphere for dining and eloquent Mediterranean feasts for people who love the restaurant and bar scene, as well as a good time spent out on the town. Its customers are creative, funseek se ekin ing, g, an and d sop sophi hist stic icat ated ed di dine ners rs wh who o wi wish sh to be be best st se serv rved ed by the the restaurant they choose. Company Ownership

“Oceania” is a partnership business owned in majority by its partners. The business employs the manager, Support Staff and Employees. Financial Plan

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Group No: 7  

 The following topics and tables outline our financial plan. We plan to turn a significant profit, but we will structure the business so as to maintain a healthy cash flow. Important Assumptions  The financial plan depends upon important assumptions, most of which are shown in the following table. The key underlying assumptions are: 

We assume a slow-growth economy, without major recession.



We assume that there are no unforeseen changes in the expectancy in the popularity of our restaurant.



We assu assume me acc access ess to inv invest estmen ments ts and fin financ ancing ing are suff suffici icient ent to maintain and fulfill our financial plan as shown in the tables. ta bles.

General Assumptions   Plan Month

 Year 1 1

Year 2 2

Year 3 3

Current Interest Rate

10.00%

10.00%

10.00%

Long-term Interest Rate

10.00%

10.00%

10.00%

T  ax Rate

25.42%

Other

0

25.00%

25.42%

0

0

Start-up Summary Ourr st Ou star art-u t-up p ex expe pens nses es co come me to Rs Rs.. 4 Co Core res s wh whic ich h is mo most stly ly ex expe pens nsed ed equipment, rent, and legal and consulting costs associated with opening our restaurants. We also require 60 lakhs of start-up assets, which includes 50 lakhs cash and 10 lakhs of long-term assets. The start-up costs are to be financed some by direct owner investment, as well as with the help of a major investor. Start-up Expenses   Start-up Expenses Legal

50,000.00 3

 

Group No: 7  

Stationery etc. Menus Consultants Insurance Rent Capital Cost Other  Total Start-up Expenses   Start-up Assets Cash Required Start-up IIn nventory T   otal Assets Total Requirements

100,000.00 30,000.00 100,000.00 500,000.00 7,000,000.00 25,000,000.00 1,000,000.00 33,780,000.0 0

5,000,000.00 1,000,000.00 6,000,000.00 39,780,000.0 0

Strategy and Implementation Implementation Summary  The following sections outline the strategy and implementation summary for

“Oceania”. Sales Strategy

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Group No: 7  

  The The im impor portan tantt eleme elements nts of the sal sales es for foreca ecast st are sho shown wn in the fol follow lowing ing tabl table. e. Th The e sa sale les s of fo food od,, dr drin inks ks take take a wh whil ile e to grow grow bu butt wi will ll grow grow in second year. Sales Forecast   Unit Sales Year 1

Year 2

Year 3

Meals

25,000

35,000

50,000

Drinks

20,000

25,000

40,000

Total Unit Sales

45,000

60,000

90,000

  Unit Prices Meals

400

400

430

Drinks

50

50

60

Meals

Sales 10000000

14000000

21500000

Drinks

1000000

1250000

2400000

11000000

15250000

23900000

 

  Total Sales   Direct Unit Costs Meals

150

150

150

Drinks

25

25

25

  Covercharge

Direct Cost of Sales  

Meals

3750000

5250000

7500000

Drinks

500000

625000

1000000

Subtotal Direct Cost of  Sales

4250000

5875000

8500000

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Group No: 7  

Management Summary Our management philosophy is based on responsibility and mutual respect. People who work at “Oceania” want to work there because we have an environment that encourages creativity and achievement. The team includes a max maxim imum um of ei eight ght to twe twelve lve em emplo ployee yees, s, und under er a pre presid sident ent/ma /manag nager er of  one. Personnel Plan   The The pe pers rson onne nell pl plan an re refl flec ects ts wh what at we wo woul uld d li like ke to ke keep ep as a stea steady dy positioning throughout the years. Our total headcount will increase from 54 to 66 co come me ye year ar3 3 be beca cause use that' that's s the the be begi ginn nnin ing g of ou ourr "g "goo ood" d" se seas ason on.. However, we plan to keep the head count at 60 because of the space and dyna dy nami mics cs of the the re rest stau aura rant nt.. It ap appe pear ars s we do don' n'tt ne need ed mo more re than than 66 employees to run the business until the fourth and fifth year, if and when we are successful enough to expand. Detailed monthly projections are included in the appendix.

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Group No: 7  

 

Payroll Plan Year 2

Ye ar 1 No

 

of  Sta ff 

Manager

2

Hostess

10

Waiters/Waitre sses

14

Bartenders

4

Support Staff

6

Cocktail Waitresses

10

Chefs

8

   Total Payroll

Salar y

PM

PA

15,0 00 3,00 0 5,00 0 4,50 0 3,50 0 5,00 0 8,00

30,00 0 30,00 0 70,00 0 18,00 0 21,00 0 50,00 0 64,00

360,00 0 360,00 0 840,00 0 216,00 0 252,00 0 600,00 0 768,00

0 Total People 44,0 00

0 54 283,0 00

No of  Salar y Staff  2 12 16 4 8 10 10

0 3,396, 000

 

Year 3 PM

PA

15,0 00 3,00 0 5,00 0 4,50 0 3,50 0 5,00 0 8,00

30,00 0 36,00 0 80,00 0 18,00 0 28,00 0 50,00 0 80,00

360,00 0 432,00 0 960,00 0 216,00 0 336,00 0 600,00 0 960,00

0

0 62

0

44,0 00

322,0 00

3,864, 000

No of  Staff  2 12 18 6 8 10 10

 

PP

PM

PA

15,0 00 3,00 0 5,00 0 4,50 0 3,50 0 5,00 0 8,00

30,00 0 36,00 0 90,00 0 27,00 0 28,00 0 50,00 0 80,00

360,00 0 432,00 0 1,080,0 00 324,00 0 336,00 0 600,00 0 960,00

0

0 66

0

44,0 00

341,0 00

4,092, 000

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Group No: 7