14434798 Sandwich Shop Business Plan

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    Mummies Sandwich We value your health

    PURPOSE

    The purpose to start this business is to serve people of new era with a different and the

    most competitive style. We want to help those people who could not spend time in their busy

    schedule to take healthy food by diet sandwich which is 100% nutrient, healthy. The prime

    purpose is to generate profit by providing superb customer services. We aim to be leader in

    providing quality food items that fit into a balanced diet. Our aim is to provide the hygienic

    and delicious tastes of sandwich that the customers have never tasted before. We want to add

    convenience in the lives of fast food lovers by providing them the most wonderful dining

    experiences.

    THE RESTAURANT INDUSTRY - REVIEW

    Food service business is one of the largest industries in the country. This number has

    been increasing for the past seven years. In the past five years the restaurant industry has out-

    performed the national GNP by 40%. The reasons given by the Folkney Report (November

    1994) are

    1) lifestyle changes,

    2) economic climate, and

    3) Increase of product variety.

    There are 600 new restaurants opening every month and over 200 more needed to keep pace

    with increasing demand.

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    TRENDS & STRATEGIC OPPORTUNITIES

    The predicated growth trend is very positive both in short and long-term projections.

    Folkney states that as modern living creates more demands, people will be compelled to eat

    more meals away from home.

    In 1988 The National Restaurant Association released the Foodservice Industry 2000 report

    that forecasted how the industry might look in the year 2000. Some highlights from the panel's

    findings:

    Consumers will spend a greater proportion of their food away from home.

    Independent operators and entrepreneurs will be the main source of new restaurant

    concepts.

    Nutritional concerns will be critical at all types of foodservice operations, and food

    flavors will be important.

    Environmental concerns will receive increased attention.

    WHO EATS FAST FOOD

    The food concept and product image will attract majority of the

    The student-- more and more young people have developed healthy eating habits.

    Some also go through a "health food phase" while in college.

    The health conscious person of any age or sex -- this includes anyone on a restricted or

    prescribed diet or those who have committed to a healthy diet.

    Curious and open-minded-- "if you try it, you will like it." Through marketing,

    publicity, and word-of-mouth, people will seek out a new experience and learn that

    nutritious food can be tasty, fun, convenient, and inexpensive.

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    WHEN DO PEOPLE EAT FAST FOOD

    Lunch (44%)

    Morning snack (40%)

    Afternoon snack (31%)

    Dinner (19%)

    Evening snack (14%)

    Breakfast (12%)

    The average person (over the age of 12) eats at a fast-food restaurant for an average of 9.2

    times monthly.

    PROPOSED BUSINESS LEGAL STATUS

    Although the legal status of business tends to play an important role in any setup, the

    proposed fast food business is assumed to operate on a partnership of 5 members which may

    extend in case of addition of new products that might add significant Business to the existing

    setup.

    INDUSTRY ANALYSIS

    Although the restaurant industry is very competitive, the lifestyle changes created by

    modern living continue to fuel its steady growth. More and more people have less time,

    resources, and ability to cook for themselves. Trends are very important and weare tasking

    interest to provide lighter, healthier foods at moderate to low prices.

    The keys to success in achieving our goals are:

    Product quality. Not only great food but great service and a fun-entertaining

    atmosphere.

    Managing finances to enable us to open new locations.

    Controlling costs.

    Focusing on themes that have customer appeal.

    Creation of spectacular design and layout at each facility.

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    Critical Success Factors for the local sandwich shop could include:

    Establish and maintain an exclusive relationship with a baker to supply on a daily basis, 6

    days per week, a range of speciality and exclusive breads baked according to proprietary

    recipes

    Purchase an extensive range of high quality meats, cheeses, fruits & vegetables

    Recruit and train:

    Friendly people with the right attitude to the customer (the customer is always right)

    Highly efficient, creative people who enjoy making the best sandwiches for customers

    Encourage innovative product suggestions from customers and staff

    Charge a premium price but one which, together with the product and the service, ensures

    customer value-for-money

    Promote, make and serve fresh, exclusive, attractive, tasty, well-presented sandwiches

    always.

    OPERATIONS PLAN

    Fast food is the term given to food that can be prepared and served very quickly. While

    any meal with low preparation time can be considered to be fast food, typically the term refers

    to food sold in a restaurant or store with fast preparation and served to the customer in a

    packaged form for takeout take-away or can be consumed at the store or the restaurant.

    The operational plan is an essential component to our business plan and it tells the

    reviewer how we are going to get your product/service out to market. That is, how we are

    going to get your product out of the production stage to the doorstep of you target customer.

    Speaking about our outlet, we have three sections in total in our store, which will be catering todifferent kinds of customers according to their taste and preferences.

    We have positioned our products/store as value for money and quality fast food but at

    the same time we are not serving our customers, we want ourcustomers to help themselves

    this strategy will also work as word of mouth promotion where the experienced customers will

    tell new customers creating a unique interest in the minds of potential customers.

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    PRODUCTION PROCESS

    Preparing a Sandwich

    Since its a fast food which can be prepared very quickly as half of the things used to

    produce something is already ready or prepared now preparing a Sandwich will start with

    having all the necessary vegetables on its place which means having our inventories on place,

    then the process of making the food thats the sandwich will start followed by the Finished

    product thats sandwich having Inventories On place Work in Progress Finished Product In

    order to meet the demand of inventories which we will be having we will be using sum of the

    production operation techniques which will see that we are making optimum utilization of

    resources and minimum wastage.

    Manufacturing Plan

    Once an order is received, the associate behind the service counter will begin to

    assemble the customers order based on the sales data which will be displayed on a monitor.

    Each associate behind the service counter will be responsible for a certain aspect of the

    assembly line such as; placing the necessary ingredient in the bread, adding the required

    condiments, and making sure the meal is properly wrapped before delivery and set on a serving

    container. The assembly line will have placards or assembly instructions showing how each

    meal should look and what condiments need to be on the sandwich. This will ensure that each

    sandwich is done the same and will maintain quality. There will also be an associate in the rear

    of the kitchen who will supply the production line with more products.

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    Production process flow

    Raw Materials Cutting Mixing Filling Serving

    MUMMIES SANDWICH has found something that allows us to improve quality and lower

    costs.

    1. Improved Quality

    The benefits of a better tasting Sandwich should be fairly apparent. Unless of course

    you prefer aged sandwich, the fresher sandwich is going to be higher quality if made fresh just

    for you.

    The less obvious benefit is the higher quality customer service that arises from the JIT

    sandwich assembly. When Mummies Sandwichwaits for you to order the sandwich, we do

    a few things to improve customer service. This higher quality customer service is subject to our

    ability to actually produce faster. Without this ability, Mummies Sandwichordering costs

    would be sky-high because the costs associated with ordering would be the loss of customerstired of ordering fast food that really is not fast.

    Products

    Fried Chicken Burgers Sandwiches Salads Beverages

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    Nutrition calculator

    Mummies Sandwichserves a wide range of quality sandwich that can easily fit into

    individual diet needs based on the principles of balance, variety and moderation. Our varied

    menu and range of serving sizes make it easy to fit our food into a balanced diet and to create a

    range of meal combinations that fall within recommended guidelines for calories, fat and other

    nutrient

    WE are also helping you learn more about our food by adding nutrition information on

    some of our packaging. Some of our packaging now includes the Mummies Sandwich

    Nutrition Chart. Our goal is to provide you with the information you need to assist you in

    making sensible decisions about balance, variety and moderation in your diet.

    2. Lower Costs

    The holding costs for sandwich parts are fairly high because of its spoilage

    costs. Instead of having a shelf life of months or weeks, the sandwich needs to be sold within

    15 minutes or so. The holding costs go from roughly 20% per week to 100% per hour.

    In terms of operating the business, it's as easy as establishing a working relationship

    with a catering service to supply the sandwiches on a wholesale basis, while building a

    customer base to purchase the lunch meals. Design a menu featuring all the sandwiches, salads

    and other items available and distribute the menu to office buildings and factories. Customers

    would simply place their lunch orders in the morning or the day before. Additionally, lunch

    orders could be placed by way of fax, phone or e-mail. But we will be delivering our products

    to our customers within a Geographical Area of first 5km (Home Delivery) from our Store if

    customers bill exceeds Rs200/- and he need to pay 15% of the bill amount extra as delivery

    charges which will be lowered as the bill amount increases in percent.

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    INVENTORY MANAGEMENT SYSTEM

    a) Just-In-Time (JIT) is an inventory strategy implemented to improve the return on

    investment of a business by reducing in-process inventory and its associated carrying costs.

    Now as a store of fast foods we are in instant need of vegetables and other grocery

    requirements as and when needed or required. This we will come to know through our Chefs

    such as the presence or absence of a part. Quick communication of the consumption of old

    stock which triggers new stock to be ordered is key to JIT and inventory reduction. This saves

    warehouse space and costs. In order to meet our requirements we will be having tie ups with

    Vegetable Vendor and 1 Grocery store.

    b) Economic Order Quantity (EOQ) is the level of inventory that minimizes the total

    inventory holding costs and ordering costs. The framework used to determine this order

    quantity is also known as Wilson EOQ Model. We will order on Daily basis with one order per

    day and as per our requirements say for example in the morning we order we will see to it that

    with that order our requirement is fulfilled of the day, this will reduce the transportation cost

    for 1 more order or unnecessary order .

    c) Supply Chain Management (SCM) is the management of a network of interconnected

    businesses involved in the ultimate provision of product and service packages required by end

    customers. we will be having tie ups with sum of the vendors of vegetables and grocery stores,

    so that our needed requirements doesnt get hampered as we will be following JIT and EOQ

    methods to avoid unnecessary wastage of resources and money.

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    IDENTIFYING THE LOCATION

    For establishing fast food (sandwich) restaurants we have selected mainly three areas around

    the Coimbatore. They are

    1. Peelamedu (Near Hopes College)

    2. RS Puram

    3. Gandhipuram

    PEELAMEDU (Near Hopes College):

    In Coimbatore Peelamedu is one of the areas where large number of eduacational

    Institutes is present. Hence majority of the residents in Peelamedu are student community. As

    already mentioned earlier students are one of the main customers for sandwich restaurant.

    Since students are very busy in going to the colleges during morning they prefer to take healthy

    food in less time. For them Sandwich is the most suitable food to fulfill their desires. More

    over them can get sandwiches any time.

    Hopes College is present at centre of the educational institutes in Peelamedu. The

    student population density is more around the hopes college when compared to other areas in

    Peelamedu. Apart from the educational institutes there are many offices present around the

    hopes college. Hence in addition to the student customers we can concentrate in office

    employees too. Since Peelamedu is highly residential area home delivery will be very easy. The

    transportation cost will also very less. For these reasons Peelamedu was selected to establish asandwich industry.

    RS PURAM :

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    RS Puram is one of the areas in Coimbatore where more educated people and more

    health conscious people are present. For our sandwich restaurant the main target customers are

    health conscious people and open minded people.

    Since the cost for establishing sandwich restaurant is slightly expensive in RS Puram

    the competitors are very less. Our operating strategy is to compensate the cost with the more

    volume of customers. Apart from this life style is one of the factors which have a huge impact

    on business. RS Puram people have a rich and modern life style when compared to others.

    Hence the people in RS Puram prefer to take sandwiches as one of their major food in daily

    life. With respect to supply chain RS Puram is very nearby to Gandhipuram which is the Main

    bazaar for the city where we can purchase raw materials like vegetables, Bread etc. So the

    transportation is cheap and easy. Hence based on the economical environment and life style of

    the residents RS Puram was selected to establish our sandwich restaurant.

    GANDHIPURAM :

    Gandhipuram is the heart of Coimbatore city. The main shopping bazaar in Coimbatore

    is present in Gandhipuram. Since it is a main bazaar the residents of Gandhipuram are very less

    but the passers by are more. Our Target customers in Gandhipuram is mainly shoppers and

    shop owners. Generally people prefer snacks during their shopping. If the snacks were healthy

    and easily available (like sandwiches) they choose to take. So by promoting the advantages of

    sandwiches we can get more customers in our restaurant. Regular income can be generated by

    making agreement with shop owners for daily delivery. The transportation of raw materials will

    also be very easy.

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    APPLYING DESIGN PRINCIPLES TO LAYOUT

    Space analysis for the following functional areas:

    Receiving

    Storage

    Office / counter

    Pre-preparation

    Final (Hot-food) preparation

    Employee locker room and toilet

    Service areas

    Ware washing

    OPERATING FACILITIES AND EQUIPMENT TO RUN THE BUSINESS

    1. Kitchen Equipment

    Commercial Fryers

    Hot Food Storage

    Steam Equipment

    Commercial Ovens

    Wood Cabinet Carts

    Work Tables

    Tissue rolls

    Cutlery sets

    Freezers

    Generators

    Microwaves

    Waste bins

    3. Cooking equipment Restaurant Toasters

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    2. Kitchen apparels

    aprons

    bandannas

    caps& hats

    chef coats

    chef hats

    face masks

    finger guard

    kitchen gloves

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    Sandwich Grills

    Sandwich Press

    4. Stationary

    Register rolls

    Sales book

    Tape products

    How we will manage to serve best and fast to keep up to our customers expectations:-

    Use of paper products and plastic wraps keeps labor costs down: Pre-sliced cheese,

    packs of jellies and ketchup, getting the customer tohelp them. A limited menu

    restricted to items with a short preparation time would make fast service possible and

    would also be useful in streamlining operations.

    Utilization of time-saving equipment: Microwave, post mix beverage dispensers etc.

    Utilization of labor-saving equipment: Ware washers, automatic potato peelers and

    automatic coffee brewers.

    Access to Raw Materials

    The Assembly line model is common in foodservice design:

    A salad/cold food preparation area with access to raw materials:

    Flow in the dish washing process

    Access to Utensils and Equipment:

    Utensil drawer in each worktable, for each employee, or one drawer for each 4 linear feet of

    worktable

    Overhead utensil racks (ceiling-hung) in hot-food and cold-food preparation areas & near

    steam-jacketed kettles for paddles or wire whips

    Shelving under each worktable for larger utensils

    Wall-hung over shelf above each table

    Racks for mixer parts and bowls

    Large racks in bakery, hot-food preparation, and salad preparation areas for sheet pans,

    baking pans, and other large utensils

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    Special storage racks for food processor blades and parts

    Large rack or special storage room for catering supplies

    Knife rack in each preparation area

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    Layout of our Sandwich S

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    1. Product identity, quality, and novelty

    2. High employee motivation and good sales attitude

    3. Innovative and aggressive service options

    FOOD QUALITY ASSURANCE

    The bedrock of all our socially responsible supply efforts is our commitment to

    ensuring that all the foods and beverages we serve our customers are safe. We do business only

    with suppliers that share this commitment and work with them to continuously monitor, test,

    and track our ingredients. We have stringent standards and checks in place in critical areas

    throughout the food supply chainfrom "fork to farm."

    Our Operations and Training manual for restaurant managers includes a whole chapter

    on food safety, with requirements and guidance that cover all the critical control points at the

    restaurant levelfrom supply and delivery through storage, preparation, and holding.

    Food safety procedures are monitored by staff operations consultants, who regularly

    visit our restaurants to advise managers on operations. The consultants also conduct periodic

    restaurant operations reviews, which include assessments of food safety procedures. Managers

    are expected to correct any irregularities identified.

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    Systems & Controls

    A big emphasis is being placed on extensive research into the quality and integrity of

    our products. They will constantly be tested for our own high standards of freshness and purity.

    Food costs and inventory control will be handled by our computer system and checked daily by

    management.

    How orders are taken

    Similar to most fast food establishments, orders will be taken on the right side of the

    service counter where money will be exchanged and the customer will be issued a receipt

    containing the order selection and a claim number. Cups will be dispensed so the customer can

    select their desired drink while waiting for their individual orders to come up. When the order

    is ready, the associate on the left side of the counter will call out the claim number for the

    customer to pickup.

    Packaging

    Packaging design is a fundamental part of our top quality customer service. Many of

    our menu offerings have unique packaging designs to provide insulation, help ensure food

    safety, and make them convenient for carryout. This gives us many ongoing opportunities to

    minimize the environmental impacts of our packaging and to provide industry leadership in

    natural resource conservation.

    Daily operations and production

    The day-to-day operations of the restaurant from opening to close will be in

    accordance to industry standards and norms stipulated. Our plan conveys to any reader that

    management has a sound plan for operating the restaurant. Operational issues such as

    scheduling, departmental job functions, ordering and receiving, menu production, service,

    general safety procedures and maintenance are some of the matters which would be cautiously

    catered to. We standardize our product and service by restricted menu items. To adopt Ours-

    is-better-than-theirs strategy by using a combination of focus-differentiation strategy keyed to

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    product quality. Sales and marketing efforts are focused on the individual customer basis, to

    suit their requirements and taste, to develop the superiority perception in customers view.

    Customer service

    We plan to adhere to establishing service attitudes and policies for effective quality

    functioning and service provision. All the customer complaints which would have to be

    handled and how we will go about getting customer feedback such as surveys or through

    mystery shoppers will all be a part of the process of adhering to quality standards.

    Management controls

    Operating a restaurant on a day-to-day basis requires established systems and controls.

    Many seasoned restaurateurs have established systems to help them control cost and maintain

    excellence. Unfortunately, though, some startup restaurateurs open their doors unprepared to

    industry experts analysis, we plan to incorporate management controls, tasks and support

    systems into our plan.

    FINANCE PLAN

    Finance department is responsible to arrange the cash inflows of the business. It also

    identifies the sources from where the finances can obtain to run the business operations

    smoothly.

    Capitalization needs: The estimated capitalization needed to open the business is

    approximately 30 lakhs and the planned sources for funding it are personal investments of

    partners, bank loan and credit union.

    Average Sale per Customer = Total Sales / Number of Customer transactions

    This can be done by the year, month, week or day. The important thing is sales members need

    a target to aim for and this is one of the most effective ways of doing this

    Sales per Full time Team Member = Total Sales / Number of full time equivalent team

    members.

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    Purchases 1950000 7800000 8150000 8629500 9029450 9480900

    Total

    Expenses

    9091000 21678000 24315000 24950500 26085450 27023900

    EBT 909000 2322000 2985000 3814500 4012800 4579250TAX @ 35% 318150 812700 1044750 1335075 1404480 1602737.5

    EAT 590850 1509300 1940250 2479425 2608320 2976512.5

    PVIF @ 15% 0.87 0.756 0.658 0.572 0.497 0.432

    PV 514039.5 1141030.8 1276684.5 1418231.1 1296335.04 1285853.4

    Table 2: Total Cash flow

    Year 1 Year 2 Year 3 Year 4 Year 5 Year 6

    EBDIT 971500 2572000 3235000 4114500 4312800 4904250

    (-)Depreciation 62500 250000 250000 300000 300000 325000

    EBT 909000 2322000 2985000 3814500 4012800 4579250

    (-)TAX @ 35% 318150 812700 1044750 1335075 1404480 1602738

    EAT 590850 1509300 1940250 2479425 2608320 2976513(+)Depreciation 62500 250000 250000 300000 300000 325000

    Cash flow 653350 1759300 2190250 2779425 2908320 3301513

    NPV 4800968.186

    Profitability index 2.600322729

    Pay back period 37 months

    Initial investment 3000000Require rate of

    return 15%

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    MANAGEMENT REQUIRED TO RUN THE BUSINESS

    1. Fast food manager

    2. Quality assurance manager

    Cooks: Prepare food in a prompt, safe and clean manner to ensure complete customer

    satisfaction.

    V.P. Quality: Sets standards of quality to meet all state and federal health and safety

    guidelines.

    Quality Manager: To assist V.P. of quality in obtaining all state and federal health and safety

    guidelines, as well as delegation of tasks to ensure these guidelines are being maintained.

    Quality Supervisor: Oversees, and assists individual restaurant and its maintenance associates

    to ensure the company, as well as state and federal health and safety guidelines are being

    maintained or exceeded.

    Designation/type No

    Owner 5kitchen supervisor 2

    shift supervisor 3

    Cook 4take away order taker 1

    dish washer 2

    Cleaner 1

    guard(12hour) 1

    Total 19

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    Maintenance: Carries out all functions as assigned by quality manager or quality supervisor

    with a constant regard for fellow associates, and customers well being.

    MARKETING PLAN

    A comprehensive business plan includes a sound marketing plan. Owner, investors and

    bankers want to know you have a proactive plan to grow your business. You cant rely on

    instant popularity and simple word-of-mouth marketing just because some restaurants, but not

    many, open their doors to instant success.

    Objectives:

    Shall deliver what is promised, promptly

    Shall adapt to the changing trends and deliver the best accordingly

    Shall strive to maintain harmonious relationship with customers & suppliers

    Goals:

    Create Awareness through intensive marketing

    Attract people and impart the experience

    Break even by the third year of establishment

    Brand name: Mummies Sandwich We value your health

    USP

    Diet sandwiches is our USP. We care for the calorie that our sandwiches add to your

    health. We give sandwiches that will not make you sluggish in the morning and that can kill

    your hunger during the noon, will give you a light feel for your dinner. We are here to break up

    the common perception that fast food destroys your health. We value your health than

    anything else.

    Service differentiation

    We are providing the customers with diet sandwich so it maintains their health. We will

    be providing fast food in area of 5km. from our fast food hub. This is a unique positioning

    were in the customer will perceive us different from other fast food outlets.

    Segmentation

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    For any business it needs to identify the segment they are going to segment the

    population. We segment people between age group who are so conscious about their health.

    We here by segment our customers into elite (who are youngsters between age 20-30) and

    premium (people between age group 30-45).

    Segmentation helps to cater each individual segment that has commonality.

    Targeting

    We cater mainly to these two segments that will take care of our sales. Once we are

    done with our segmentation we are in to how we will target our segment. Unlike a common

    segment where you have wide range of population with different needs, segmentation helps

    better in targeting our segment. You have a population with a commonality which you can tap.

    We focus our two segments so that they feel their needs are satisfied to the fullest possible.

    Positioning

    Now the biggest challenge in front of us is how we are going to position our products in

    front of our segments. To our elite segment we would like to position our sandwiches as tasty,

    trendy, with more varieties. We make them feel that we make them trendy, youthful with the

    fast foods but with concern for their health.

    Once we could position ourselves to our elite customers here comes our premium

    customers. Here lies our greatest challenge and also opportunity. They are the customers who

    we are looking for. They are the ones who are really health conscious but need our sandwiches

    to cope with their fast moving schedules. To them we are going to position our sandwich as a

    Sandwich of their money, health and time.

    Marketing mix

    Product

    Our main product is sandwich. We are specializing in producing sandwiches that are

    not going to affect your health. We will have customization that is our customers will get their

    choice of taste. We use product differentiation strategy were we differentiate our product we

    make the customer to feel that we are not offering them the ordinary sandwiches that everyone

    offers.

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    Price

    We are going to use cost plus pricing strategy. Since we are going to differentiate our

    product from the others we are going have this strategy. Customers will not feel the difference

    in our price even if it is high as it appears to be a different one.

    Promotion

    The foremost activity and most important among the marketing mix is promotion. We

    need to create the awareness among the people about our sandwiches. Or else it will be

    considering as yet another sandwich in the market that has evolved to add fuel to existing

    health problems. It is our campaign that is going to bring out the innovation that we have

    brought in sandwich. One our advertisement campaign succeeds sure our sandwich will stand

    on its own. We would like to go for food festivals, sponsoring events in colleges, through Fm

    and hoardings.

    Place

    This is where we are one step ahead of our competitors. We see to that we are nearer to

    our customers. In Coimbatore our outlets are in three places. 1) Gandhipuram 2) Peelamedu 3)

    R s puram.

    LONG-TERM DEVELOPMENT GOALS

    DIET SANDWICH is an innovative concept that targets a new, growing market. We assume

    that the market will respond, and grow quickly in the next 5 years. Our goals are to create a

    reputation of quality, consistency and security (safety of food) that will make us the leader of a

    new style of dining.

    Strategies: Our marketing efforts will be concentrated on take-out and delivery, the areas of

    most promising growth. As the market changes, new products may be added to maintain sales.

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    Milestones: After the restaurant opens, we will keep a close eye on sales and profit. If we are

    on target at the end of year 1, we will look to expand it.

    Risk evaluation: With any new venture, there is risk involved. The success of our project

    hinges on the strength and acceptance of a fairly new market. After year 1, we expect some

    competition in the form of other independent units. Chain competition will be much later.

    REFERENCE:

    Secrets of small business success Newell M (1985)

    Retail plan of a fast food Business by Abdul Jamil Sharify

    www.fundinguniverse.com/sample-business-plans

    www.score.org

    www.sandwichpanel.com

    www.virtualrestaraunt.com

    http://www.interstellar-solutions.co.uk/business-planning.php

    http://www.score.org/http://www.sandwichpanel.com/http://www.virtualrestaraunt.com/http://www.score.org/http://www.sandwichpanel.com/http://www.virtualrestaraunt.com/