ZAYKA@Spiceforlife: Business Plan

8/14/2019 ZAYKA@Spiceforlife: Business Plan

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Presented by:Team Jack Welch (Team 9)

Brinda Balachander

Debnarayan Banerjee

Gagan Singh

Ira Singla

Priyanshu Mishra

Ranjini Ballal

Sulabh Sharma

Business Plan


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Contents

1. Executive summary ................................................................................ 3

2. Evaluation of Business opportunity ................................................. 3

3. Industry profile ........................................................................................ 5

4. Company profile ...................................................................................... 6

5. Marketing strategy ................................................................................ 10

6. Financial feasibility ............................................................................... 15

7. Conclusion ................................................................................................ 19

8. APPENDIX ................................................................................................ 19


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1. Executive summary

Our business plan is about ZAYKA which is a single-unit, good-sized restaurant basically

focused on healthy and ethnic food. Situated in Bangalore, ZAYKAs emphasis will be on

providing ethnic food.

ZAYKA offers its customers top quality food and a great ambience. ZAYKA aims at

providing different cuisines from around Indian sub continent. Ethnic recipes will be

used to provide the customers with a diverse & unique menu. It also emphasizes

healthy dishes, recognizing the trend within the restaurant industry for the demand for

healthy cuisine.

Market research has shown that although the restaurant industry is very competitive,

the lifestyle changes created by modern living continue to fuel its steady growth.

Therefore keeping in mind this steady growth, we have stepped into the venture of

creating ZAYKA and designed the marketing strategies, operating plan and analyzed the

financial feasibility of the venture. At the same time it is to be understood that per capita

income of people in India is increasing constantly, so, although the competition is high,

the opportunity is also great.

2. Evaluation of Business opportunity

Business plan for ZAYKA has been an opportunity for us to bring the concept ofUnity in

Diversity to life on paper. It has provided an outlet to express our passion for our idea

and sell it on to others.

Create significant value to customers: In the prevalent days of uncertainty,

people are becoming more conscious about what they eat and where they eat.

With the growing trends leading to concepts like specialty restaurants we

believe ZAYKA has a strong market. Its main target audience will be health

conscious individuals and families who naturally love ethnic food. Since ZAYKA

specialises in multi cuisine, the second target group will be the tourists and


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people who would like to taste different Indian cuisines. India on platter is

what ZAYKA has to offer!

Produce significant profit to promoters: The main promoters of the businesswill initially be the founders of the company. In the long run the returns that they

will get from their investment will be extremely high as a restaurant such as ours

never runs out of business with the number of food lovers in India and especially

when it is providing a blend of taste, health and ambience. They will start earning

their returns much faster than normal entrepreneurs due to early breakeven.

Good match between competency and business opportunity: The foundersof the company comprise of a variety of people who come from different regions

of India and hence have some knowledge about the food in their respective

region. We have a sufficient number of managers who have good knowledge

about organizational management along with the passion and drive to start-up

this dream restaurant. Our team also has two members who have the required

accounting skills.

Long lasting venture: Food and its consumption has always been a basic

requirement for mankind and people are always willing to experiment especially

if it benefits their health and body conditions in the long run. Hence, we can be

assured of a stable and consistent demand in the years to come. Our partnership

firm is a going concern since we have estimated breakeven achievement within

7.3 months which indicates very high profitability for the business in the long

term.

Opportunity for financing (Amenable to finance): We will put in 25% of our

capital and the remaining 75% will be obtained in the form of loans from banks

and other institutions like venture capitalists. The high profitability and growth

rate have resulted in ready provision for finance from various institutions due to

quick and high returns on their investment as a result of which the partners will

not be required to bear the entire risk. Even the early breakeven due to the

estimated high sales has acted as an added advantage for obtaining funds.


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3. Industry profileAlthough the restaurant industry is very competitive, the lifestyle changes created by

modern living continue to fuel its steady growth. People are getting busier day-by-day

hence small time to prepare food for themselves and their families.

The Restaurant Industry today:

The food service business is the third largest industry in the country. It accounts for

over Rs.12000 billion annually in sales. The independent restaurant accounts for 15% of

that total. The average Indian spends 15% of his/her income on meals away from home.

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%. Reasons responsible

for it are:

1) Lifestyle changes

2) Economic climate

3) Increase of product variety.

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

keep pace with increasing demand. Restaurant owners and operators are working to

understand and respond to the preferences and expectations of different customers.

Doing so requires that restaurateurs re-think their menu offerings, procurement

patterns, technology, training, service, and marketing. Clearly, when it comes to serving

its newest customers, the restaurant industry has a lot on its plate.

With vast population base, growing middle class population and strong macroeconomic

environment, the Indian restaurant market has emerged as the rapidly growing

segment in the Indian food industry. Rapid transformation in the lifestyle of Indians,

particularly those living in Urban India, has resulted in a dramatic increase in the

demand for processed or health food, packaged and ready-to-eat food products.


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4. Company profile

ZAYKA is a single-unit, good-sized restaurant basically focused on healthy and ethnic

food. The restaurant will be located in Bangalore. Most important to us is our financial

success, but we believe this will be achieved by offering high-quality service and

extremely clean, non-greasy food with interesting twists.

The restaurant features Full Service Dining. This concept offers customers variety,

offering multiple dining and entertainment options within a single establishment. The

menu divisions will broaden our appeal and provide our customers with a different

experience on each visit.

Keys to Success:

1.Unique, Innovative & Contemporary: The creation of a unique and innovative fine

dining atmosphere will differentiate us from the competition. The restaurant will stand

out from the other restaurants in the area because of the unique design and decor. We

will offer a fine dining experience in an electric atmosphere.

2.Product quality: Great food, Great service and atmosphere.

3. Spice for Life' Menu: The menu will appeal to a wide and varied clientele. Our

eclectic menu features regional specialties around the country.

4.Employee Retention Focus: Employee retention and development programs will be

a primary focus and success platform for this business. Through these programs, we will

be able to draw seasoned and elite professionals and build a committed work force. This

lowers our immediate overhead and attracts quality staff.

5. Cost Control Focus: We will control costs at all times, without exception. Cost

Control will be an integrated function of the restaurant from the onset. Cost control is

about managing the numbers - interpreting and comparing the numbers that impact the

bottom line. 80 percent of the success of a restaurant is determined before it opens. Our

focus is to control the cost of goods sold to meet our profit margin goals by managing

the following crucial elements of cost: Purchasing, Receiving, Storage, Issuing Inventory,


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Rough Preparation, Service Preparation, Portioning, Order Taking, Cash Receipts, Bank

Deposits and Accounts Payable.

Mission

To provide region specific finger licking Indian food specially prepared by chefsfrom their native region who will be handpicked.

To provide nutritious and tasty food that is customized based on the customerstastes, preferences and requirements.

Vision

To be recognized as a world class restaurant offering one of its own kind Indian cuisines

combining taste, health and ambience.

Management

ZAYKA will start out as a simple partnership firm, owned by its founders. Its founders

are Brinda Balachander, Debnarayan Banerjee, Gagan Singh, Ira Singla, Priyanshu

Mishra, Ranjini Ballal and Sulabh Sharma. Each of the promoters is contributing equal

amount; so each one has equal stake in profits as well. Our official contact email address

[email protected].

Start Up Summary

We have found the location in Koramangala, Bangalore and taken it on rent at the rate

of Rs.100000 per month. We will be able to set up our business in a short span of 1

month and start earning profit by the end of first year. We plan to come up with a total

cost of Rs.5616000 for start up of the company.

Our start-up costs are mostly equipment, furniture, painting, renovation, rent, start-up

labor, legal and permit costs associated with opening our restaurant. At the beginning,

Rs.152000 will be allocated for business operations reserve. This is a solid start-up

forecast based on our market analysis and our knowledge of the industry.

Expenses 2266200

Assets 3350000

Investments 1790700Loans 3825500
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Locations and Operations

Restaurant Location

Koramangala, Bangalore is the location selected for the ZAYKA. Koramangala is one of

the most developed area in the city.

Restaurant Design

The total space requirement is 3,000 square feet. The restaurant will feature a

comfortable and open concept double story design. The dining area will allocate 200

seats and the lounge 50 seats. In total, the restaurant will provide seating for 250

patrons.

Operating Criteria

The restaurant will be located in Koramangala. The restaurant will service lunch,

dinner, and after-hours dining during the week and weekends. The restaurant will

operate during peak service time to take advantage of street traffic, and after-hour

patronage from the entertainment facilities in the area. Service will be available during

the following hours:

Lunch: Monday to Sunday, 11 a.m. - 4:30 p.m.

Dinner: Monday to Sunday, 6:30 p.m. - 12 midnight.

0

2000000

4000000

Expenses Assets Investments Loans


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Products and Services

ZAYKA will feature Ethnic dishes, an eclectic ambiance, and superior service. Our food

will be of the finest quality and prepared with exotic flare. Customer satisfaction is the

driving force behind our success. We will add new dishes to our menu every 4 months.

The kitchen staff will have the best in culinary education and work experience. Their

creative talents will complement one another. The restaurant staff will offer the finest

service in an electric atmosphere and offer customers an extraordinary dining

experience.

ZAYKAs Menu:

The menu is going to be extremely simple. We will keep a small group of constants on

the menu and then feature a chef's recommendation that we plan will account for 85%

of meals ordering. This will help us to reduce waste and plan ingredients and

purchasing. Our chef will have great latitude in designing and producing menu offerings

from many different Indian cultures. We will endeavor to procure all the traditional,

authentic ingredients necessary to hold true to these varied and interesting cultural

recipes. Our goal is to create the image of satisfying and nutritious food. As there has

been an increased awareness of nutritional and health concerns in recent years and a

growing market of people who now eat this style of cooking regularly.

Production:

Food production and assembly will take place in the kitchen of the restaurant. Fresh

vegetables, meat and dairy products will be used to create most of the dishes from

scratch. The chef will exercise strict standards of sanitation, quality production, and

presentation or packaging over the kitchen and service staff.

Service:

A customer can have food either in the dining room and get full service from a waiter or

from the separate take-out counter which will service those who wish to pick up their

food. Also home delivery orders can be made via telephone or fax. Delivery will be

available at certain times and to a limited area.


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Future Opportunities:

The market segment that prefers to eat ethnic and healthy food is expanding at a very

high pace. Also the busy lifestyle is boosting restaurant business. When it comes to

restaurant customers, the two biggest, continuing trends are convenience and quality.

As ZAYKA will work on both of these factors, it can be estimated that it has a bright

future.

5. Marketing strategy

STP Analysis

Segmentation:

ZAYKA Restaurant intends to cater to a wide customer base. But our main customer

base will include people from middle class and upper middle class. As these are the

people who are both health and money conscious and who dont mind in spending a

little extra amount if they are served with quality and variety of food.

Targeting:

The market for ZAYKA covers a large area of diverse and densely populated groups,

although we have defined some groups as targeted segments that contribute to our

growth projections. ZAYKA will be located in an urban setting and in an area where

people travel to eat out and one that is also frequented by tourists.

Target groups are:

Ethnic food lovers:

As ZAYKAs specialty is in ethnic food so our main target group consist of people

who like to have good quality ethnic food. As we have dishes from all the regions

of India so the target market consists of people from all the areas.


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Nuclear families:

Working couples are usually more interested in trying out places which are

trendy and healthy at the same time. They have double income and it is

particularly easy to make them spend money again - they spend the most ondrinks, appetizers and tips.

Tourists:

Tourists both Indian and foreign origin will be another target segment because

they are the people who like to eat region specific food while travelling.

These particular market segments are 15-50 years old, have disposable income, and are

seeking upscale, trendy, and comfortable restaurant options.

Positioning

ZAYKA will be positioned as a restaurant for both middle and upper middle class people

serving good quality ethnic food.

Strategy and Implementation Summary

Our strategy is simple; we intend to succeed by giving people a combination of great,

healthy, ethnic food, and an environment that attracts people like a magnet.

Implementation isn't simple, but that's in the doing of it, not in the plan.

We will focus on establishing a strong identity in our community with a grand opening.

Our main focus in marketing thereafter will be to increase customer awareness in the

surrounding communities. We will direct all of our tactics and programs toward the

goal of explaining who we are and what we do. We will keep our standards high and

execute the concept flawlessly, so that word-of-mouth will be our main marketing force.

We will create an appealing and entertaining environment with unbeatable quality at an

exceptional price. As an exciting and eclectic restaurant, we will be the talk of the town.

Therefore, the execution of our concept is the most critical element of our plan.

All menu items are moderately priced for the area. While we are not striving to be the

lowest-priced restaurant, we are aiming to offer exceptional food at reasonable prices

for the average restaurant diner.


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Competition

Located in a happening place like Koramangala, ZAYKA faces major competition from a

few well-known restaurants in and around. The Gramin and Sahib Sindh Sultan top the

list. These places are known for their unique theme based ambience.

While Gramin has created a village theme which is different from other modern

restaurants, Sahib Sindh Sultan brings alive the journey by train that every Indian can

relate to. Another player which is a big competitor to our business is Transit situated in

Forum, one of the leading commercial malls in Bangalore.

Competitive Edge to ZAYKA

Our competitive edge is the menu, the chef, the environment, and the tie-in with what's

healthy and trendy. ZAYKAs competitive edges are:

1. The owners' thorough understandings of opening and running a restaurant

2. An extraordinary contemporary restaurant design

3. Ethnical and Cultural menu with featured menu changes every 4 months

4. Unique, two story spatial layout

Marketing Strategy

ZAYKA Restaurant's Marketing strategy will be to promote Ethnic food and superior

service. Marketing initiatives will concentrate on the following:

Building:

The most important Marketing tool that we have is the exterior and interior of our

building. The ambience of ZAYKA will help in attracting more and more customers.

Customer Service:

In a restaurant industry, customer service has always been the major draw for the

dining clientele. Food and atmosphere is far out-shadowed by superior customerservice that turns a new customer into a repeat customer.


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Management will demand the wait-staff provide the very best in quality services to the

customer, making certain that they are content and satisfied with their dining

experience. Wait-staff are thoroughly trained to make good relations with the

customers.

Advertising and Promotion:

Our Advertising Plan and media schedule call for targeting customers directly through

local publications.

Management recognizes the key to success at this time of initial opening is extensive

media promotion. This must be done aggressively in order to accomplish our service

goals. A healthy budget is allocated for the first year. A primary part of the budget is

allocated to create the media and customer buzz for the month prior to opening and the

next three months after the grand opening. The full Marketing program is as follows:

Media Objectives and Strategy:

Establish our image as a unique restaurant with great service, value, and great Ethnic

food served in an eclectic atmosphere. We will maximize efficiency in the selection and

scheduling of advertisements by:

Selecting primary local publications with high specific market penetration.

Scheduling adequate frequency of ads to impact market with menu items and

promotions.

Where possible, positioning advertisements in or near entertainment/food related

editorial.

Additionally, we will develop a consistent reach and frequency throughout the year,

targeting each specific customer.

Promotional Campaign:

The best way to reach our potential customers is to develop an intense advertising

campaign promoting ZAYKAs concept of "Spice of Life" In addition to standard

advertising practices, we will gain considerable recognition through newspapers,

newsletters, public announcements and from our dynamic menu.


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Our periodic customer surveys and weekly menu item sales evaluations will help us to

understand what advertising is working and what is not; basically, who we are reaching.

Our goal is to understand our customer, measure the success of our direct marketing

and media activities, and redirect advertising as effectively as possible.

Press Release/Grand Opening: ZAYKA will release a series of press releases on the

Grand opening.

Editorial Visitation: Leading up to the Grand Opening, and over the first 6 months of

operations, we will invite the most influential reporters and editors from all local

publications to ZAYKA Restaurant in order to evaluate our menu, service, and

atmosphere.

Sales Strategy

ZAYKA's sales strategy requires consistently high quality food, service, speed and

atmosphere. We can accomplish this by:

Hiring employees who genuinely enjoy their jobs.

Continually assessing the quality of all aspects mentioned above, and immediately

addressing any problems.

Interacting with our customers personally, so they know that their feedback goes

directly to the owners.

Evaluating food choices for popularity, and keeping favorites on the menu as we rotate

seasonal foods and specials.


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6. Financial feasibilityProject Cost:

Land and Building

Security 1000000renovation cost 260000

license and permit 50000

Insurance 100000

Capital Budget

Furniture and equipments

kitchen equipment

chimneys (3 nos.) 50000

Burners 150000

kitchen utensils 150000

kitchen furniture(modular kitchen) 100000

microwave (5 nos.) 75000

juicers and grinders (3 nos.) 45000

freezers(1+2 nos.) 250000

dishwashers(2nos.) 160000

water purifiers (1 nos.) 30000

Barbaque 50000

Tandoor 30000

dining area

chairs and tables(110+25) 456000

dining utensils 250000

air conditioners(verti cool)4 nos 256000

interior decorations 500000

vacuum cleaners 30000

Utilities

Electricity 0gas 25000

Water 0

trash removal 0

Telephone 15000

music and entertainment

music and sound system (1 nos.) 100000

LCDs (4 nos.) 500000

marketing

advertising 100000


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Employee cost:

receptionist (1 nos.) 10000

head chef (2 nos.) 70000asst. chef (4 nos.) 80000

cook (2 nos.) 20000

manager (1 nos.) 20000

cashier (1 nos.) 15000

hostess (4 nos.) 32000

delivery boys(2 nos.) 10000

waiters (9 nos.) 45000

sweepers and cleaners (4 nos.) 8000

security gaurds ( 2 nos.) 7000

gate keeper (1 nos.) 3000

parking (1 nos.) 2500

TOTAL 322500

Financing:

Loan 3825500

Investment 1790700

Total project cost 5616200

printed materials 15000

Research 30000

other expenses

computer(2 nos) 70000

fax and printer machines 12500

fire extinguishers and alarm 50000

Uniforms 30000

paper utilities 5000

security system 60000

auto expenses(omni,honda activa) 350000

cell phones 2500

Invertors 108000

Total 5465000

Startup expenses for operations of 1st month 151200

Total Project Cost 5616200


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Monthly forecast:

Note: The data of monthly forecast is found in Appendix

The projections show that Sales of ZAYKA is increasing month over month; from the

range of 5-25%. This states that ZAYKA is moving towards vision and position itself as a

preferential brand of the customers. In initial months, ZAYKA is bearing some losses;

but right from 4th month ZAYKA is at its pace.

Break Even Analysis:

By analyzing the Profit and Loss Statement of 1styear, we come to know about the Total

Revenue of 1st year will be 2.18 Cr approximately. Annual Total Cost is around 1.32 Cr.

Therefore we are achieving our Breakeven Point at 7.3 months. After achieving

Breakeven Point, 25% of the profits earned are transferred to Reserves and the

remaining is added back to the Capital. As Profit is the main pillar for the expansion of

any business, this would be an achievement for ZAYKA.

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Note: The data of TR, FC and TC is found in Appendix

Yearly forecast:

To know the future prospect of ZAYKA we forecasted the Profits for 5 years. As we can

see Sales is increasing by 20% over the years; correspondingly Gross Profit and Net

Profit is also increasing.

Note: The data of yearly forecast is found in Appendix

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Month

Total revenue

Fixed cost

Total cost

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1st year 2nd year 3rd year 4th year 5th year

Thousands

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Gross Profit

PAT


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7. Conclusion

The above analysis of ZAYKA restaurant lead us to conclude that our business plan

holds a good potential to succeed as our financial forecast sounds to be promising.

Although our view towards the business plan sounds optimistic, if everything goes as

per the estimates, we would be able to recover our cost in not less than six to seven

months. However taking the uncertainties and external factors into consideration there

may be deviations between the estimates and the reality. As a result it may impact our

breakeven which may require us to revisit our business plan and make changes

accordingly. As ZAYKA stands for SPICE FOR LIFE, our unique blend of taste, health and

ambiance would help us to serve our customer better and would finally help us to stand

out as a world class Indian cuisine restaurant.

8.Appendix

1. Profit and Loss Statement of 1styear2. Profit and Loss Account forecast for 5 years3. Balance Sheet projected for 5 years

ZAYKA@Spiceforlife: Business Plan

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