Catering and Tiffin Business Plan (ED)

BUSINESS PLAN

Presente d By: SAHIL MAHAJAN(2009MBA33) ROCKY PANDITA(2009MBA32)

TABLE OF CONTENTS

Section1 : THE EXECUTIVE SUMMARY Objectives Mission Purpose Section2: THE COMPANY SUMMARY Start-up Summary Company Ownership Section3 : SERVICES Section4 : MARKET ANALYSIS SUMMARY Market Segmentation Target Market Segment Strategy Competition and Buying Pattern Section5 : STRATEGY AND IMPLEMENTATION STRATEGY Marketing Strategy Competitive Edge Milestone Sales Strategy Section6 : MANAGEMENT SUMMARY Personnel Plan Section7 : FINANCIAL PLAN

SECTION 1: THE EXECUTIVE SUMMARY  Description of Our Business:

We plan to provide a complete catering solution to the customers. It includes providing catering services to the customers for parties and other functions and also solving the food  problem of students who are living away from their homes by providing them tiffins. So, our business involves two businesses but both are interrelated. We have our Tent & Light services business, which involves catering business also. Our  new business will inject life into our existing business. Our experience, skills in the existing  business and great market opportunities will make us to develop this catering business as a separate segment followed by tiffin system.

Objectives: * To create a service based company whose primary goal is to exceed customer’s expectations.

*To increase the number of clients’ served every year through superior service. *To develop a sustainable start-up business. *To develop enough cash flows to pay all salaries as well as grow the business.

Mission:

Our mission is to provide the customer with finest catering. We exist to attract and maintain customers. Our services will exceed the expectations of our customers.

Purpose:

Our purpose is to meet and exceed the customer’s needs in terms of quality of food and excellence of service.

SECTION 2: THE COMPANY SUMMARY  Our company will offer high –end catering to the customers. Initially, it will serve parties of 25-500 people including marriages and other functions. In case of tiffin system, it will  provide food to at least 150 students. For Tiffin services, our areas are Nanak Nagar,

Channi Himmat and Sanjay Nagar. We will rent space for the office in posh areas like Gandhi Nagar or Trikuta Nagar. For  kitchen we will rent space in the areas where we planned to provide tiffin services.

Start-up Summary:

Our business will incur the following start-up costs. > Two commercial stoves with ovens. >Dishwasher  >Two sets of cookware >Two sets of dishware >One van with racks built in it >Serving trays and utensils, knives and cutting boards >Computer with printer  >Tiffins (400 in no.)

Company Ownership:

Our company is a 50-50 joint venture or a partnership business.

SECTION 3 : SERVICES Our business will provide the customers with high quality catering. The catering service will be for weddings, birthday parties and other functions. Besides this, it will provide food services to students through Tiffin system. A kitchen or catering service must be set up to  provide both vegetarian and non-vegetarian meals. It involves both food and drink   preparation. This will make us to have prohibition of veg and non-veg together or made in the same kitchen by the same pots or utensils. So, we require atleast two kitchens for the preparation.

Moreover, it will provide a wide variety of dishes because: 1. Large number of menu items is a benefit to the customers. 2. A large selection is required for both meat and vegetarian meals.

Besides this, we will provide both normal and incentive meals. The incentive meals will be offered to appeal to higher end. Obviously, non-veg is not so cheap. The ingredients costs more, the varieties in it costs more. Moreover, in catering for parties and functions, the charges for any type of food per person depends upon the no. of items involved in menu list and the cost range of these items—whether high prices items or have normal price. Also, for the Tiffin system, price will be charged for the type and no. of items.

SECTION 4: MARKET ANALYSIS SUMMARY  The catering market is an interesting one. There are several caters that offer services that are quite similar to each other in terms of prices and menu options. For whatever reasons, there has been a little demand by consumers to get caters to innovate their menu. This market consists of two target segments that are differentiated by income.

Market Segmentation:

For catering in parties and functions, it has two distinct target populations: 1. Middle class clients : this group of people does not have huge amount of income, recognizes that it is costly to sponsor a party, and is willing to incur the expenses, but try to minimise them. 2 . Upper class clients : This group is willing to spend whatever it takes to through a highend party or function.

For Tiffin system for students, it has three distinct target populations: 1. Lower class students : it includes the group which prefer to have one vegetable, rice and chapatti, sweet dish, but no non veg. 2. Middle class students : this group prefer to have two or three vegetables, rice, chapatti, sweet dish, salad, and may or may not prefer non-veg. 3. Upper class students : this group prefer some royal type of food which includes costly items/veg for vegetarian students and different varieties of non-veg for the non-vegetarian students. Choice of items will be as per the choice of the students.

Target Market Segment Strategy:

To reach the different groups does not require a distinctly different strategy. What differentiation it will require is different menu offerings needed to satisfy the different groups. The upper- end menu items are cost prohibitive for the middle class target segment.

Competition And Buying Pattern:

There are several caterers in Jammu that serve the low to middle end of the market. These caterers compete to some degree on the cost, but more on service. The quality and the serving of the food are the main areas of service that the caterers compete on. For high-end catering, there are four – five caterers in the competition. When cost is no object in this group, then there are many people who are willing to pay the additional cost if  some different will be provided to them. The buying habits of consumers is price sensitive at the lower end and for middle end of  the market are price sensitive to some degree. Between two different service providers, the lower class will choose the service provider with less price with less concern about best services. For middle class group, it will choose the service provider with best services. The  buying habits for high end of the market is price insensitive. Here, choices are made by menu offerings, reputation and attention to services.

SECTION 5 : STRATEGY AND IMPLEMENTATION SUMMARY  Our business will gain the market share in the catering and tiffin system market by leveraging its competitive edges. These edges are superior attention to detail and innovative meals. The edges that we will leverage are the areas that have been ignored in this market for sometime. These competitive edges coupled with a targeted advertising campaign will  be our plan to increase the market share.

Marketing Strategy:

Our marketing strategy will be based on developing visibility among the customers. This will be accomplished by targeted advertising campaign. The advertisements will be placed in various local newspapers like Daily Excelsior, State Times and Amar Ujala. Advertisements will also be done by using pamphlets and distributing them in the targeted areas like students’ hostel areas, Pay in guest areas and moreover in different colleges and in universities. These advertisements should yield a decent amount of service inquiries.

Competitive Edge:

Our competitive edge is the attention to servicing customers and inventive approach to cuisine. We are approaching the market as if there was significant competition between the different service providers. By making customer satisfaction a priority, over time, the local customers will come to appreciate the attention that their needs are given and will form a long lasting relationship with us. Our other competitive edge is the innovative cuisine approach to food m eals. We will take the knowledge of innovative cuisine and will create inventive, colorful and delicious alternatives.

Milestones:

Our business will have several milestones early on: 1. Business Plan Completion. This will be done as a roadmap for the organization. This will  be an indispensable tool for the ongoing performance and improvement of the company. 2. Kitchen and Office set up. 3. The first catering job. 4. Offers for providing Tiffin services. 5. Profitability

Sales Strategy:

Our sales strategy will use a combination of superior customer attention and a comprehensive list of dishes for the menu to turn the information seekers into customers. When a customer calls to get the information about our business/ service, it provides us the opportunity to turn them into a customer. Another information that we will leverage to develop sales is our comprehensive menu. In addition to all the traditional dishes, we will offer many innovative and new dishes. It is  believed that an innovative available menu should be seen as a large benefit.

SECTION 6 : MANAGEMENT SUMMARY 

Eroz Singh and Neeti Magotra are the founder and owners of this business. They enter into a partnership type of business. At the initial stage, we will handle all the issues related to  bookings, orders, salaries of workers, availability of raw material/stock, etc. moreover, the financial activities will also be handled by both of us.

Personnel Plan:

Besides utilizing the skills and experience, we will require the following personnel: 1. Supervisor: to inspect and confirm that all the ingredients and preparation will be done in the defined and structured manner. 2. Cooks: two will be hired permanently to prepare the food and temporarily will be hired as per the requirement of the parties. 3. Back kitchen help: two people will be hired permanently to help clean up in the kitchen as well as assist at functions. 4. Servers: two will be hired permanently to packed the food in Tiffins and provide them to the customers. 5. Driver: for the van to place the Tiffin orders, will be hired permanently.

Personnel plan will be done permanently for Tiffin system facility. While for catering in different functions, personnel planning will be done temporarily and as per the requirement.

SECTION 7 : FINANCIAL PLAN

FIXED ASSETS

ASSETS

QT Y.

Food processor Juicer mixer grinder

CAPACITY

1

PRICE 5495

2

cooker

2

6 ltr

dresses refrigirator ,dishwasher,microwave and ice maker

8 1

king size

pans

5

plastic cloth for tables

2395 1200 each

TOTAL 5495 4790 2400 4000 10000 0

king size

500 $100,00 0 350 each

1

king size

600

600

computer

1

latest

18000

18000

bar code reader

1

usage

5300

5300

silver coil

1

king size

600

gas stove

12

king size

600 2500 each

30000

trays

10

king size

50 each

5000

front desk(cash counters)

1

king size

6000

6000

chaIRS

3

FULL SIZE

800

2400

washbasin

1

2000

2000

125 600 each

1500

60 each 350 each

360 3500 2400

karchi

12

medium size and large

fan

4

large

tube lights

6

large

cylinder and connections

10

14.5 kg

1750

2400

spoons

300

8 each

plates

300

10500

disposable glass

100

35 10 packets

tiffins

150

120

18000 13819 5

 TOATAL

1000

EXPECTED

PROFIT AND LOSS STATEMENT FOR THE YEAR ENDING 2009-2010

PARTICULARS

DETAIL(TIFFIN CENTRE)

GROSS SALES

1500*150*12

LESS EXCISE: NET SALES LESS: MATERIAL COST LESS: MANUFACTURING ,ADVERTISEMENT AND LABOUR COST

55700*12 AND SALARIES

2000+2500*6*12

AMOU NT 2,700,0 00 NIL 2,700,0 00 668400 182000

LESS: SELLING AND DISTRIBUTION EXPENSES ADD:OTHER OPERATING (ELECTRICITY,WATER, EXPENSES RENT)

50*30*12+400*4*12

NET OPERATING INCOME

C-(D+E+F+G)

-37200 102000 171040 0

LESS:DEP

APPROX @ 20%

-27640

4000*12+1500*12+3000*12

LESS:INTEREST

NIL

DEFFERED REVENUE EXPENSES

nil

ADD:OTHER INCOME

nil 168276 1 218758 146400 2

PBT:(PROFIT BEFORE TAX) LESS TAX PAT:(PROFIT AFTER TAX)

13%