Project Formulation and Business Planning SBM 1205 Assignment 3 Due Date – 7th October 2016 Group Name – A Names of Members – Gurjeet Kaur (201400150) Anju Sharma (201400403) Gurpinder singh (201402729) Gurjinder Kaur (20140) Student coordinator – Dr. Michael Roomina TABLE OF CONTENTS 1. Executive summary 2 2. Competitive Analysis 2 3. Market Analysis 3 4. Market Plan 6 5. Operations Plan 7 6. Management Summary 8 7. Conclusion 9 8. References 10 EXECUTIVE SUMMARY This project is about establishing a new Indian restaurant in Parramatta area. The restaurant will provide the Indian cuisines to the customers. It is very important to prepare a framework of any business, before establishing it. This report will through lights on business environment and competitive analysis for our restaurant. Furthermore, in the market analysis, we will discuss about our market planning for our business. However, operational plan will highlight the main operations of the newly open restaurant. We will go through each concept step by step. COMPETITIVE ANSLYSIS Competitive analysis is the one of the basic part for our project. As indicated by Fleisher and Bensouussan, "Competitive analysis is the recognizing or assessing the contenders and their efforts to find out their qualities and weaknesses when contrasted with our item or administration". Consequently, competitive analysis helps to get different thoughts to build up sound strategies to make our services or business one of a kind from our rival (Fleisher and Bensouussan, 2015). The underlying stage in competitive analysis is to recognize the present and future opponents. There are essentially two ways by which we can recognize contenders. The first is to investigate the business segment from the customer's point of view and assembling each one of your adversaries by the degree to which they go after the buyer's dollar. The second technique is to social event contenders as demonstrated by their diverse forceful procedures so we appreciate which encourage them. We have highlighted a few contenders for our restaurant in writing audit which are had practical experience in Indian cooking styles, some Asian Restaurant and fast food eatery also. We are building up our restaurant in Parramatta zone so our primary contenders are Indian Restaurant to be specific Billu's Eatry, Himalaya, Taj Indian Masala and Cheema Da Dhaba. In any case, alternate eateries which can be contender for us are; Thai Garden house Restaurant, Golden Tarris, hungry Jacks, KFC and Dominos and so forth. The Indian restaurant which recorded above is giving same items and services as our restaurant is going to offer. So these are our essential contenders in light of the fact that there menus incorporate practically same stuff like curries (goat curry, spread chicken, shahi paneer, malai kofta, and so forth) breads (garlic naan, cheddar naan, roti, lacha prantha), snacks (vada, chaat, cheddar bean stew, dahi bhalla, chicken 65, roasted chicken, chicken strips and fish pakodas )and so on. By keeping in perspective, the menu of our rival we need to make our products and services one of a kind to increase upper hand by including new dishes in our restaurant menu with low cost at high quality. Besides, we need to ensure our staff members should be customer friendly. We should get the help of updated technology to upgrade the services of establishing restaurant. So we should arrange, like Ipad to take orders, hygienic environment, aerated and air conditioned dining area. MARKETING ANALYSIS The Indian food industry is balanced for huge development, growing its assurance to world food exchange each year. In India, the food union has developed as a high-development and high-benefit segment because of its huge potential for quality expansion, especially inside the food preparing industry. As discussed in above industry background about food industry, we will discuss furthermore about market size of Indian food industry, their target market and articulate value proposition. The Indian food and raw business sector is the world's 6th biggest, with retail contributing 70% for all deals. The food industry, which is as of now admired at US$ 39.71 billion! Is estimated that would improve at a Compounded Annual Growth Rate (CAGR) of 11 for every currency to US$65.4 billion by 2018. Food and basic resource characterize about 31 for every change of India's operation consumption box. Food has their own largest segments in India's trade area, which was esteemed at US$ 490 billion in 2013. The Indian food selling market is projected to reach Rs 61 lakh crore (US$ 894.98 billion) by 2020(I.B. 2016)."Indian food market size was at around Rs 23 trillion in 2014 and now it’s set to extent around Rs 42 trillion by 2020, beside with a three-time growth in ordinary family income from 2010-2020," Boston Consulting Group (BCG) Principal Rohit Ramesh said at the India Food Forum 2015 here (ramesh, January 2014).Nevertheless People who work in the town centre area throughout the day, who will be considering for walk-in good food and suitability for late breakfast and lunch. Close companies considering for phone-in lunch for corporate gatherings. On the other hand, working people are looking for takeaway food to take home for family dinner at the end of their busy day. Each of these market sectors involves of people who either work in the suburbs area throughout the regular work week. As such, there will be an uncertain ratio of each market that will be looking for an restaurant formation that will meet the necessities of healthy, hygienic food, quick service, and lovely environment. Furthermore, Maximum Indian restaurants are growing with their catering trend for middle-class specialists who search for a different cuisine than that of the established food chains (Deli restaurant business plan, 2016). Furthermore, one of the biggest thing which need to be consider whenever designing a restaurant concept. If you need to be successful in any industry, especially the restaurant business, then you must to describe who it is that is most likely to purchase your foods, and attention your idea to plea to that well-defined market. First of all, a target market is the ratio of the general population who are fine on the approach to buying what you are offering. A target market isn’t the portion of that people to whom you want to sell your food. Moreover, it approaches to well running a restaurant, one of the best necessary things to consider isn’t the food, the beverages, the interior decoration and the local or the facility only, it’s the customers. If you need to run a popular restaurant, the customers are, without any uncertainty, one of the strongest features to yield into attention. After all, everyone depends on the customers for their business, and their sales bring in income; and it is the measure of income that you get that decides your success. In other words, we need to observe sex, age, race, religion, wages, background, preferences and sexual introduction with additional things if you need to get a perfect depiction of who we ought to be marketing to. For example, those who like to go out they prefer a pleasant and lovely environment to get refresh, and eat various type to get experienced of dine in restaurant. Those who are busy with their hectic schedule and won’t have capacity to cook their meal they prefer to have or take away from nearby but good restaurant. Those who like to travel, and like high quality foods and don’t mind spending extra, they like to visit for their meal in good and tidy atmosphere. Those who want an authentic Indian meal, they don’t even care about the distance or price as well. So according to this analysis a worthy instruction is to just consider the primary 1-mile and 3-miles range around your restaurant while estimating the existence of target market. Whatever the sex, age and income of the people further most expected to eat food, those people should live or working in amazing numbers inside a 1 to 3-mile range of restaurant. The nearest is the best.(Who is the target market for your restaurant, 2016). Moving further this is very important to discuss about articulate value proposition which is USP for making customer satisfied as per their needs. It is the most important thing that discriminates your business from others. Many restaurant owners and chefs have particular statement that “our food is best home style authentic Indian food in town” That is a hard one for marketing, for the reason that it indicates a lot of additional things. Is it true that you are costs a great deal higher than your rivals? In the event that it is the best food, it needs to be. It is safe to say that you are continually reserved out, is there a holding up rundown? On the off chance that it is the best food, then it ought to be. In the event that it isn't reserved out, if the costs aren't the most noteworthy, then perhaps you have to take a gander at getting another articulate value proposition to attempt and attract new clients. So its need to be considering that for name and fame or other competitors behind you it’s not necessary to use fake statements and being short time business man. However, a seller can fool the customer once, but they won’t visit again and retain for long term. Therefore, a good restaurant must provide a large scale of quality, services and make their customer happy as per their requirements. (Hose, 2012). MARKETING PLAN With our marketing plan, we will compute the cost and revenue both, as both are serious concern for us. Nevertheless, in the restaurant business, an extreme expenditure such as food waste, extreme labour and high-priced needs can lead to a substantial rise and fall in profits. A case of an objective may be to keep food costs at fewer than 40 percent of all income. Targets could then concentrate on low sustenance waste, finding reasonable nourishment merchants and boosting assets. Moreover, revenue is imperative part for any business, as money is the driven tool. Although holding sustenance costs at under 30% of benefit. Improving our Gross Margin from 65 .41% in Year 1 to 67.10 in Year 2. These are reasonable attentions on; our "stretch" is to achieve 70.73% by Year 3. Keeping member of staff labour cost between 37-39% of cumulative deals. Averaging sales are between $1,200,000 - 1,500,000 every year. Promoting and extending the restaurant idea as an exceptional suburb restaurant. Expanding our marketing and promoting in Parramatta and in the neighbouring rural areas to expand our client base (7 restaurant trends for 2016, 2015). Nevertheless, by using new trends for restaurant we can sustain and make strong relations with our customer in long term. Comfort in food selection everybody has their own taste in food collection whether it's Mac & Cheese, Cream of Tomato Soup, vegetarian food, Grilled Cheese Toast, or Chicken curry’s. We will offer to customer many choices to choose their own food. Regional Cuisine & Ingredients, in food preparation we will recommend to our chef to use special ingredients according to customer’s regional cuisine with authentic food. Technology, is another phase of how innovation is getting more quick witted and more helpful. Till now it has been for the most part ‘guest facing’, yet innovation is additionally making devices to help restaurant’s establishment, and streamline their businesses. We have seen in more restaurant staff taking requests on smart tablets, which are adjusted to their POS (point of sales) frameworks. When you arrange, the ticket appears in the kitchen, guaranteeing fast service, quicker turnovers and ideally leaving less scope for orders mistakes. Online orders, by taking online orders from customer we will make more convenient and helpful for customers to enjoy our food, with in a very short time of period. We will make the arrangements for home delivery too (mathur, 2015). OPERATIONAL PLAN Operational plan is necessary for any new organization. We also decide a operational plan for our restaurant as how it will run in future. In this plan we will describe that from where we will purchase the raw material and what would be the cost of our products and what will be our breakeven point. 2.1 Operations in our restaurant The main operations in our restaurant are to prepare the curries, breads and other menu items according to the customer needs. Every customer has different demands. Some customers like the chilli they always order for hot meals, some of them do not like chilli and ordered mild meals. Chef should prepare the food according to order taken by the waiter. 2.2 Purchase of raw material We need the vegetables and ingredients like onions, tomatoes, ginger and garlic, coriander leaves to make the curries for chicken, lamb, goat, beef and prawns. We will buy all the fruits and vegetables from Flemington market because coat in that market will be the half as compare to the other markets. In this way we can reduce the cost of raw material. 2.3 Supply and distribution system We will do all the activities under one roof which would reduce our time, wastage, and financial cost. The store room will be near to the kitchen so that it would be easy for the helpers to take the raw material and store the finished products within a short time period. With the help of proper supply chain management we will achieve the more than budgeted profits. 2.4 key success factors The key success factors for our restaurant would be the quality of products and services which we will provide to our customers. We will use the raw material of high quality but at very low price as compare to our competitors. This would also be the key success factor. 2.5 Skilled and inexpensive staff We will appoint qualifies management team for our organisation. We will also reduce the personnel cost by hiring the skilled staff at low prices. The detailed summary about the qualification etc would be discussed in the management summary. 2.6 Breakeven point Breakeven point is a point where the organisation has no profit no loss situation. At this point profits will be zero. At this point the cost of sales, fixed cost and variable cost will be covered by the sales. Points above the breakeven point represent the profits of the company. . MANAGEMENT SUMMARY We will recruit a well qualified staff for our restaurant. The following table represents the management team, their names, designation, qualification and how many people required. We will appoint total 17 staff members including the management team. Position Name and qualification Manger John Angeles MBA from Oxford university 7 years experience as manger Finance manager Sarah CPA from Australia 7 years experience in Arthur CPA Chef Harbinger Singh Cookery from university of Wollongong 12 years experience as a chef in Taj Hotel Cleaning staff 3 cleaners Waiters 5 waiters Kitchen hands 4 kitchen 4 years experience as helpers Dish washers 2 people 1. Manager: We will recruit John Angeles as a manager in our restaurant he has done his masters of business administration from Oxford university. He has 9 years management experience of handling a team of 5 to 50 people. He will do all the recruitment and selection for our restaurant. 2. Financial manager: Sarah will be the finance manager of our organisation. She has done her CPA degree from Australia. Sarah will be the head of finance department as she has 7 years experience as an Arthur Anderson CPA. Her financial control skills will be very profitable for us. She will prepare the budgets for our organisation and compare those budgets with the actual performance on timely basis. 3. Chef: We will appoint Harbinger Singh as a chef. He has more than 12 years experience as a chef in hotel Taj. Harbinger will be responsible for all the back end production. He has done his chef related courses from university of Wollongong. He will be handling the team of kitchen hand. 4. Cleaning staff: We will appoint 3 people for the cleaning purposes. 5. Waiters: We will select 5 waiters for our restaurants. All these five will be full timers. We will also appoint the part time wait staff. 6. Kitchen hand: We will appoint 4 persons as a kitchen hand to help the chef. They will do the work like cutting and chopping, knitting the flour, making breads, prepare the material for the preparation. 7. Dish washer: We will appoint 2 dish washers. They will wash the dishes. 8. Others: In others we will appoint the 2 people. We will call them in emergencies. CONCLUSION All in all, The Indian food market has very wide position in Australia. There are many Indian restaurants running with their specialty in Indian cuisines within the same area. These restaurants are big competitor for our business. But we will try to do our best to prove our restaurant best within the area. Therefore we have done marketing plan to estimate the success of our restaurant. Also we decide our operational plan for our restaurant to fulfill the requirements of the customers and to attract the customers as their target destination to dine in. Nevertheless, in the restaurant business, an extreme expenditure such as food waste, extreme labor and high-priced needs can lead to a substantial rise and fall in profits. Overall, this project is all about out planning of open new restaurant and about the challenges and efforts that we have to do for the success of our business. Bibliography 1. Deli restaurant business plan. (n.d.). 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