Epp-Eat, Puff, Play

Basics of Business Planning

Kunal Makhija | Neelam Jain | Pradeep Mishra Sanjiv Mishra | Sunil KumawatVaibhav Vyas | Vishal Mishra

About-

• “Epp” will become first of its kind in the contemporary market to cater a

range of regular products all under one roof making it an exclusive spot

for the hang outers to lay back relax and enjoy in a great and rich

ambience.

• With the brand new concept of aligning of a quality café with a groovy

hookah bar and a contemporary gaming zone people will be

mesmerized by type of culture created

Business Description

• The company will operate a 3000 square foot lounge off YMCA BopalRoad which is inherited by one of the owners.

• “Epp” Lounge is determined to become a daily necessity for hungers, gamers, and fun lovers and just a comfortable place to meet your friends or to play games, all in one.

• “Epp” will capitalize on its proximity to Shanti Business School and MICA campus as well as the residents near Bopal area to build a core group of repeat customers.

• “Epp” will offer its customers the best prepared snacks and hookah in the area that will be complimented with gaming zone to enjoy their visit.

Business Description

• Monday to Friday: - 10:00 Am – 11:00 Pm

• Weekends:- 10:00 Am – 1:00 Am (With acquiring permission from the Municipal Corporation)

• “Epp” will offer its customers the best tasting snacks and contemporary hookah in the area.

• This will be achieved by using high-quality ingredients and strictly following preparation guidelines.

• The store layout, menu listings and marketing activities will be focused on maximizing the sales of higher margin offerings.

Objectives

• Become selected as the “Best New Lounge in the city” by the local

restaurant guide.

• Turn in profits from the first month of operations.

• Maintain a 65% gross margin.

Vision Statement

At “EPP”, we’re all about getting people together and enjoying

each other’s company. We believe that what we do can weave a

fabric of positive relationships and experiences that stretch

from our coffee houses and out into the world.

Mission Statement• “Epp” will make its best effort to create a unique place where

customers can socialize with each other in a comfortable and relaxing environment while enjoying the best snacks, contemporary gaming lounge and hookah in city.

• We will be in the business of helping our customers to relieve their daily stresses by providing piece of mind through great ambience, convenient location, friendly customer service, and products of consistently high quality. “Epp” will invest its profits to increase the employee satisfaction while providing stable return to its shareholders.

Strategy

• Learning & Growth

• Business Process

• Customer• Financial

-Improve Operating Efficiency

-Broaden revenue Max

-Service Excellence

-Trusted Biz Partner

-Implement cross Training

-Align Personal Goal

-Develop New Product

-Reduce Cycle Time

-Provide Rapid Response

Management Positions

Name Designation Ratio

Sanjiv Mishra Décor Manager

Pradeep Mishra Marketing Manager

Vishal Mishra Café Manager

Sunil Kumawat Finance Manager

Neelam Jain Hookah Bar Manager

Vaibhav Vyas Gaming Zone Manager

Kunal Makhija Special Events Coordinator

Marketing & Advertising Plan

• “Epp” will focus its marketing activities on reaching the SBS and MICA students and as well as the neighbors of Bopal area, people working in offices located close to the lounge and on sophisticated teenagers.

• The market research shows that these are the customer groups that are most likely to enjoy this type of ambience.

• Flyers

• Print Media

• Fleet Media

• Word of Mouth

Financial Plan

• Raised Up Capital

Source Calc. Amount

Vishal, Sanjiv, Pradeep 3*1500000 4500000

Kunal, Sunil, Neelam, Vaibhav

4*1200000 4800000

Partners Capital - 9300000

Bank Loan - 600000

Microfinance - 8640000

Total - 16164000

HR Plan

• Greeting customers and respecting them

• Having empathy towards their customers

• Saying “Hello”, “Thank You”, “Sorry”, “Please Visit Again”

• How to handle different customers

• Training each department to provide a competence to the Lounge

• Speaking cordially on phone

Legal Plan

• Taking care of all the legalities and licensing

• Food Safety License

• Health/Trade License

• Eating House License

• Music License

• Certificate of Environmental Clearance

• Insurance - Public Liability, Product Liability, Fire Policy, Building & Asset

• Prevention of Food and Adulteration

• Shops and Establishment Act

• Signage License

Pricing Strategy

• Competitive Pricing Model. Revenue calculations are based upon

competitive price comparisons and established menu values in the

current marketplace. The following are baseline assumptions on

Average Check Totals, and Average Seat Turns:

• Daily average for lunch spending is 300 Rs. per person, dinner at Rs. per

person.

SWOT Analysis

Strength

Weakness

Oppor-

Threats

Competition

Café Competitors Hookah Competitors Gaming Zone Competitors

CCD Elysium Xtreme Gaming

Shambhu’s Fumes Sniper

Danny’s Crazy Guys

JB Richie rich

Mr. Puff

Though None of them provide the same ambience and a combination of all the services

PESTEL Analysis

Political/Legal:

• “Business Ethics and Compliance is a program that supports Our

Mission and helps protect our culture and our reputation by providing

resources that help partners make ethical decisions at work.”

• Also, there are more and more people asking for fair trade coffee and it’s

a god way for lounges to difference themselves through fair products.

PESTEL Analysis

• Economical:

• The industry of coffee and lounge is a high and growing market in the

world. As there are some big leaders such as Starbucks, Dunkin Donuts

they are all fighting each other in order to gain more and more market

shares. It seems that there is a high potential in the new emerging

markets such as Asian countries and South America for example.

PESTEL Analysis

• Social:

• Coffee can be seen as a bad beverage for health so people are looking for new drinks such as fresh juices or maybe more tea and de-caf drinks. Coffee houses are more and more proposing those kinds of new healthy products.

• Technological:

• As there is a high and growing variety of products in coffee houses, they need to always develop new machines and high-tech equipment in order to stay up-to-date. Some beverages are so complicated to make that they require high standards of quality in terms of technology.

PESTEL Analysis

• Environmental:

• “By building environmentally sound stores and facilities, conserving the

energy and water we use and purchasing renewable energy credits,

we’re pushing ourselves to reduce the environmental footprint of our

operations”.

Required Manpower

Area No. of People Work Segregation Customer Count (Approx.)

Gaming Zone 2 Cashier/Handler, Assistant

10 Customers

Café 4 2 Chef, 2 Waiters/Assistants

30 Customers

Hookah Bar 4 Prep. Guys/Waiters 25 Customers

Six Month Startup Stage

• As a new restaurant entry to the Midtown market, the customer draw is expected to extend over 6 months. This is reflected in a higher than average monthly sales variance shown as follows (Worst-case / Expected-case):

• Month 1: 32% / 51% Month 4: 64% / 75%

• Month 2: 41% / 58% Month 5: 80% / 90%

• Month 3: 52% / 66% Month 6: 90% / 92%

Milestone schedule

• Within 1 Month: Min 520 different customers should visit our lounge

• Within 1 Year: Net profit should be 500000 from the date of operation

• By 2021 open a second branch/franchise in Ahmedabad

• By 2024 expand in other cities of Gujarat

Customer Attraction

• Coupons

• Sponsorship

• Discount

• Membership Cards

• Decoration/Ambience

Critical Risk Factors

• Inadequate workload

• Demanding Capital

• Location

• Theft & Burglary

• Fire Damage

Sales Pitch

WITH REGARDS