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Business PlanBusiness PlanBusiness PlanBusiness Plan For

e|äÉÜçe|äÉÜçe|äÉÜçe|äÉÜç Mehboob Nagar

HYDERABAD

Submitted To: Submitted By:

Ms. Mallika Ashmita Mondal

BBA-MBA(int)

Sem-6th

RR1710A06

3020070020

Contents

1. EXECUTIVE SUMMARY

2. SUMMARY OF PLAN

3. BUSINESS BACKGROUND

4. BUSINESS STRUCTURE AND ORGANISATION

5. UNIQUE COMPETITIVE ADVANTAGE

6. RISKS

7. MARKETING PLAN

8. STRATEGIES FOR OTHER KEY AREAS

9. OPERATIONAL PLAN

10. FINANCIAL PLAN

ANNEXERS

List of Figures FIGURE 1 APPROACH TO THE BUSINESS PLAN

FIGURE 2 MENU

List of Tables

TABLE 1 ESTIMATED BALANCE SHEET - RIVORY RESTAURANT

TABLE 2 RIVORY CAPITAL EXPENDITURE BUDGET

Andhra Pradesh

Hyderabad

Location of Andhra Pradesh in India Coordinates

Country India

District(s) 23

Established November 1, 1956

Capital Hyderabad

Largest city Hyderabad

Governor E. S. L. Narasimhan

Chief Minister K Rosaiah

Legislature (seats) Bicameral (294)

Population • Density 76,210,007 (5th)

• 277 /km2 (717 /sq mi)

Official languages Telugu, Urdu

Time zone IST (UTC+5:30)

Area 275,045 km2 (106,195 sq mi)

ISO 3166-2 IN-AP

Website www.ap.gov.in

EXECUTIVE SUMMARY OF BUSINESS PLAN

“A well-run restaurant is like a winning baseball team. It makes the most of every crew member's

talent and takes advantage of every split-second opportunity to speed up service. “

This is what I have tried to leverage through my business plan “Rivory”. “Rivory” is a

restaurant for fun-seeking as well as sophisticated dinners looking for good food in a fascinating

atmosphere; where they are given a chance to experience the wonderful underwater and jungle

themed restaurants which they had missed out so far. Today it is seen that with most of the

people are interested to spend their leisure time going out to different places which gives them

new look and experience. After a feasibility study of cross section of people, in Karnataka, Tamil

Nadu, Andhra Pradesh, Bangalore and Chennai in the age group between 20 to 50 years, the most

preferred menus have been selected for start – up phase of the restaurant. The menus offered

would be:

� On the Water's services are all delivered in their extraordinary atmosphere which includes

a comprehensive art and culture collection from US and India.

� The menu contains traditional favorites such as

� Other menu items are kebobs, chutneys, flat breads and desserts. Everything is fresh,

homemade, and prepared daily.

� And addition to the menu other services including the wine and beverages and sprits

The differentiating factor of “Rivory” would be it’s extensively for young adults, keeping in

mind the fact that their experience is different from that of others because of which they may not

feel existed with other restaurants.

Though “Rivory” had been called a restaurant, it would be more than a just restaurant, it would

be a single stop solution for younger and adult generations where they acquire new experience

and also engage in hobbies for leading a more fulfilling and enriching life. There would be well

attractive space birthday parties celebrations, and other occasions and many more of such events

to keep people engaged. The positioning of the restaurant would be a not a restaurant but an

amazing place, where one spends one’s time constructively, experiencing new things.

The industry when analysed using Porter’s Five Force model, showed that it is quite attractive, as

there is no player in the market at present which provides a similar offering. “Rivory” faces

indirect competition from players like local restaurant players and pubs Initially the restaurant

would start at one location Bangalore – which would be acting as separate profit centres and

managing their operations independently. The menus offered would remain same throughout and

regional preference would be taken into consideration for the traditional menu. The menus are

priced differently for weekdays, weekend. The revenue generation would be based on certain

charges for each item.

“Rivory” would be breaking even in the third year of operations. An initial start-up capital of Rs.

25 lakhs would be required for starting. The growth plans are to expand based on the movement

and demand of the market. “Rivory” is a novel idea and the major reason for its success would

be its innovative serving model. The impression and experience that the people would enjoy with

“Rivory” would lead it forward in the future and this would be a major platform for them to

enjoy their passion and lead a more happy life. There is need for this offering in the market and

we are passionate about this idea, so “Rivory” is a means to match the need with our passion.

SUMMARY OF PLAN

Background

This plan provides an assessment of the strategy and operations for. The plan will help shape the future

of the business and contribute to long term viability and growth, it ensures effective coordinated use of

resources, minimises costly mistakes and failures, enables managers to anticipate and identify potential

pitfalls and also identifies company strengths and weaknesses in relation to competitors. This plan has

been prepared as group work by UWS MBA students to assist the owner in his new business venture.

The Rivory is a new enterprise that has recently opened within a new shopping centre in Mehbub

Nagar,Hyderabad, New South Wales. The Manager of the Rivory has strong skills in many of the domain

areas required for the success of this business including entrepreneurial vision and flair, depth of

management skills and a wealth of an experience in the hospitality and catering industry. The Rivory is

the result of the owner’s expression for independence and freedom in his own business. The

entrepreneurial background to the Rivory has been well researched. This plan aims to assist the business

in the future implementation of the venture and provide comment, analysis and guidance for the future.

Approach to the Plan

The approach to the plan was to use a model that analyses the various influences that the RIVORY

operates within. These are indicated in the following diagram and explored upon in more detail.

Figure 1 Approach to the Business Plan

Mission Statement

"Change the way, food is served”

This mission statement has been developed to reveal the long term vision of the organisation in terms of

what it wants to be and who it wants to serve.

The business vision is to focus on our future goals and objectives, and to achieve them we will

concentrate on strategic planning to achieve them in short term and in long term period.

The business vision is also to become a leader in Restaurants around the Mehbub Nagar,Hyderabad area

through our affinity with customers in the chosen market. The market strategy is to provide wide range of

quality products on daily basis to satisfy our customer’s needs, and promises to demonstrate consistently

the superior service and quality to each customer.

The Restaurant will strive to develop competitive advantage to the value of our product and services, and

to charge current market prices to our products and services. The objectives are to achieve a high

standard of performance and quality of product, and to provide a hygienic, safe and clean environment to

our customers. The Restaurant will build a good team, working through mutual understanding, and

respecting the aspirations of each employee, to empower them in decision making, in regard to provide

excellent services. The Restaurant will encourage and reward a high standard of performance from

employees.

RIVORY

Unique

Competitive

Advantages

Efficiencies Labor, Rent etc

ROI

How will it make the

Business prospers?

Equity Premises

Fair Lease, Personnel

Mgmt, Staff Relations,

Supplier Relations,

Customer Service, etc

The business is 100% on debt financing, and will focus more on increasing the sales volume and to

reduce the burden of debt-financing, In doing this the Restaurant will establish market position, through

publicity measures and good reputation.

The Restaurant will support environmental and community objectives, and participate in community

services, through musical entertainment once a month in the premises. The long term goal is to thrive in

the business, being able to pass the venture to the next generation.

The culture

The Rivory embraces developing the best in our services, respecting the aspirations of each employee, to

empower them in decision making in regard to provide good customer service. The culture includes

building worthy team work through mutual understanding and maintaining the highest standard of service

whilst supporting environmental protection and other community objectives.

CORE VALUES AND PHILOSOPHY

• Customer satisfaction through offering high quality food with exceptional service and

good value.

• Be topical, not typical.

• Constantly involve the team in the ideas loop.

• More emphasis placed on the calibre and training of frontline people

• We take great pride in serving each other, our customers and our communities.

• We seek continuous improvement in all that we do.

• Build trust relation ship with customers by promoting love and expertise.

• We value a sense of urgency and emphasize an innovative, entrepreneurial approach to

business.

• We expect fairness and mutual respect in all our activities.

• We know our success depends upon the initiative we take individually and our ability to

work as a team.

GOALS

• We are committed to exceeding our customers' expectations every time.

• We aim to be market leader by providing the superb customer experiences to all our

customers and thus by gaining their loyalty.

• We will seize every opportunity to innovate and lead the industry on behalf of our

customers.

• Our goal is to increase the profitability and reputation of business.

Business Proposition

Services Offered

One thing that is always consistent with on restaurant is their impeccable service. All server staff

hired has extensive experience and all go through three weeks of training, ensuring benchmarked

customer service. On the Water's services are all delivered in their extraordinary atmosphere

which includes a comprehensive art and culture collection from US and India. This provides an

authentic surrounding that at times seems to distract everyone as they analyse the wealth of

artifacts on display.

The menu contains traditional favourites. These favourites are differentiated through the use of

the freshest organic ingredients. Most people are not aware of how much better the items taste

when they are prepared with the freshest ingredients and made with love. Other menu items are

kebobs, chutneys, flat breads and desserts. Everything is fresh, homemade, and prepared daily.

The menus are of daily (Weekdays), weekends basis.

The medium for serving would be both in US and increase India traditions. It can be assumed

that most adults would not be comfortable with only non-traditional food as the medium of

serving and therefore traditional food would be a more preferred medium. This would primarily

the market coverage and also helps in scalability.

Customer Profile

On the restaurant will be targeting locals and tourists who are active restaurant seekers. There

will be a special focus on young adults with 15K - 60K of income looking for good food and a

great time. In addition to the young adults with money to spend, On the Water will also be

targeting adults and tourists. The general demographics are males and females ages 20-50 with

some or all of a college education.

Historically, if there is a dip in the general economy, the restaurant industry is usually effected far

less that the overall economy. To some degree this is because of people's perception that food,

regardless whether it is from the grocery or restaurants is a fundamental necessity of life and

spend accordingly.

Pricing Strategy

The price for each of the item mentioned are enlisted below. All the figures shown below are

monthly charges and are in Indian rupees.

Positioning

The restaurants will be positioned as merely a service provider but as a way of fun and joy. The

tagline of “Experience the reality……” would be used to create

reality and new experience to customers. It is like a new world to youngsters or adults.

The unique selling propositions of the offering are as follow:

� A underwater restaurant with affordable price menu (Underwater Restaurant)

� Experience the jungle atmosphere in the city (Jungle Restaurant)

� Feel as a king from the extraordinary services

� All food items under single roof

Promotion of the Service

The initial response towards the project is greatly dependent on the marketing strategies adopted.

Branding:

� To build a brand image for itself, the restaurant has chosen the brand elements like the

logo, the tagline that goes well with its value proposition.

� The advertisements should focus on new world, reality, fun and joy in restaurants, with

the target audience.

Communication strategy:

The communication objective is to initially develop awareness about the USP in the market as

this is a new concept and then concentrate on influencing the customers to experience the reality.

Three elements have been considered as part of the marketing communication mix.

Marketing channels:

Various marketing channels have been considered like newspapers, TV channels and radio. Tie –

ups with five stars hotels and big corporate institutions to get the corporate look.

External customers:

Those customers who experienced the reality would definitely spread the experience about the

reality and services provided at “Rivory”. It is believed that word of mouth would reach create

more loyalty and publicity than any other branding. Word of mouth would be the main form of

our communication to the potential customers.

BUSINESS BACKGROUND

Overview

The Rivory Restaurant was established on 5th May 2010 to provide a full scale a well garnished

food services outlet. It provides a wide range of food including light meals such as gourmet

sandwiches to hot meals, desserts and hot cold beverages.

Location

The Restaurant is located in Mehbub Nagar, Hyderabad. Currently the business employs 2 full-

time and 4 part-time personnel. The centre is the largest retail centre in the Mehbub Nagar,

Hyderabad servicing the needs of a growing population base in excess of 60,000 people. The

centre will include a 4500 m2. Mehbub Nagar, Hyderabad Market place will be the focal point

for the commercial heart of the Hyderabad local Government area.

The centre will be aesthetically adapted to blend in with the historic appeal of the area. Incorporated into

the Mehbub Nagar, Hyderabad Market place development are 9 heritage buildings as well as

approximately 1,800 Esq. of professional office spaces. These sites offer fabulous opportunities for

peripheral retail usages, such as an outdoor restaurant, arts and crafts and professional suites. Undercover

parking will be provided for about 925 vehicles.

Demographics

The total population in a 10 kilometres primary catchment of the Mehbub Nagar, Hyderabad IS

42,200 people. 67% of these people are aged between 15 and 64 years. 57% of the overall

population are married, with 85% of couples having dependent children. 82% of the catchment

was the working people from different states. 27% of people aged 15 years and over have tertiary

qualifications. The working guys and girls like to go out to restaurants and coffee shops.

The regional population is more youthful than that of Hyderabad as a whole, particularly in the 5-

19 and 40-49 year age groups. Although there are population gaps in the 20-34 and 60-69 year

age brackets, the Region has a relatively young and growing population compared to an ageing

national one.

In combination, the employment mix and qualifications of the total workforce in the Hyderabad

Region is a potent force for economic development and diversification of the Region's

economy.31% of the households in the Mehbub Nagar, Hyderabad primary trade area are owned

outright by their occupants. 35% are currently being purchased and of the balance of the

dwellings, 60% are rented privately, 92% of all dwellings, 60% are rented privately. 92% of all

dwellings have one or more vehicles with over 50% having two or more vehicles at their

disposal.

Planning for the Rousel Development area is well advanced with some 70,000 new home sites

being possible in this recently rezoned rural land sector of Baulkham.

In many important ways the HYDERABAD Region is 'lumped in' with the stereotyped images of

the 'West': uneducated, uncultured, disadvantaged, criminal, isolated, threatened and polluted.

The fact that the Region: is the birthplace of agriculture; is replete with historical architectural

sites, rivers, national parks, botanical gardens, galleries and aboriginal sites; has extensive

high quality educational institutions, sport and recreation facilities; has multicultural diversity;

has a young, affluent, vibrant, highly skilled/educated and entrepreneurial workforce; and is

economically outperforming most other regions in India.

Infrastructure

The road infrastructure throughout the Region, although extensive, is congested and needs

considerable upgrading, especially in the Hyderabad sub-regions. Windsor Road, one of the key

arterials into the

Hyderabad sub-region, is a severe constraint on future growth in that area. The pressures are

typified by traffic congestion, poor bus networks, high dependency on private cars, and poor

access to interstate rail and arterial link roads to airports and ports. The lack of adequate water

and sewerage to support the growth needs in some sub-regions will cap the rate of growth in the

region.

Tourism Structures and Processes

The HYDERABAD Region is being presented with numerous tourism opportunities: Charminar;

world heritage listing of the Golconda fort; staggering growth rates in international and national

visitors seeking authentic eco-tourism experiences in the Region's unique and vast National Parks

and forests; growth in farm tourism. These events will underpin continued and expanded growth

in this sector.

The tourist dollar is important to the Region and, as a consumer of tourism products and services;

the modern tourist is becoming very discerning. Not only do average tourists travel more and

further to reach quality and authentic experiences, but they have more disposable income and

'free' time to enjoy their travelling. To ensure that the Region continues to cater for such

discerning customers, it must ensure that the soft infrastructure so essential for support of

tourism products is well structured to meet customer expectations and that the tourism processes

are meeting best practice and world-class standards. The philosophy of the restaurant will be

welcomed by the anticipated increase in tourism as identified by HYDERABAD, (2010).

Retail provision

The traditional retail provision in Mehbub Nagar, Hyderabad was based on the strip retail along

the main road. The Mehbub Nagar, Hyderabad marketplace will provide a much needed modern

retail facility, as well as a real community focus, for the expanding population of this well-

established but under-serviced area. Refer Appendix 1. Mehbub Nagar, Hyderabad Income

Distribution.

BUSINESS STRUCTURE AND ORGANISATION

Structure of the business

The drive behind this project “Restaurant” is Mr Ajay Mondal. He is the sole proprietor and owner and

possesses extensive knowledge and skill. He has a sound academic background in the field of “Catering

and Hospitality management”, qualified from various countries from reputed institutions. He has

travelled widely and has a proven track record in the past. With his dynamism, and the multi-dimensional

approach, accomplished the goal and objective of the organisation and his mission wherever he has

served.

He happens to be a versatile person, apart from Hospitality-management ability, has a great love and

commitment for music. As rhythm, harmony and music is great asset to a service industry, such as

catering and hospitality. He has a vision of a purpose, to develop a unique type of cuisine-where the

customer could choose from wide varieties of delicacies to suit taste. For example, cuisine from Chinese,

Indian, and offcourse to suit the native Indian and English.

Management and administrative capability have given a competitive edge in implementation of the

structural component of the organisation and its internal activities, selecting the right people for the key

positions, developing and nurturing the skills and distinctive competencies upon which the whole vision

and mission is grounded. The resource allocation effectively, and to measure the individual performances

as well as organisational performance.

Designation/type no

owner 1

kitchen supervisor 4

shift supervisor 4

cook 10

take away order taker 15

dish washer 6

cleaner 6

guard(12hour) 6

Total 52

Brief Resume of Head Chef:

Educational qualifications

• Chef Apprenticeship 5 years

Experience

• Chief cook in 4 star Hotel, 7-8 years, Mumbai

• Specialises in Indian Cuisines.

Tasks and Job descriptions of staffs and employees

Proprietor:

• to under take all the policy decisions and implementation of those programs

• to undertake all the major decisions, planning to execution level

• to control and organise finance, inventory, and all the logistics

• to develop a better understanding the norms and principles amongst the staff

• to develop the employees morale, ethics, and skill levels

• To implement HRM strategies, such as EEO and OH practices, Employee Empowerment etc.

• to develop the Employee Retention programs

• to design and develop the ongoing training programs internally for the employees

• to equip and update the firm with sophisticated machines and their utilities

Head Chef - A full time employee:

• to organise and to get prepared with the help of assistants and kitchen-hand, all the dishes and meals

for the day

• To cook fresh and serve hot delicacies, as when they are being ordered by the customer.

• to establish an inventory and its control

• to train the apprentices

Restaurant Supervisor - A full time employee:

• to supervise the external front office, customer needs and demands, and control the internal staffs

• to manage the cash-register, prepare invoices, and payrolls

• to record the inventory and its control

• to establish a customer rapport and public relations in and around the premises

• to guide and train the wait persons and assistants to the policy and philosophy of the mission of the

firm

The rest of the employees are self-explanatory.

Building a capable organisation

Successful strategy execution depends greatly on good internal organisation and competent personnel.

Building a capable organisation is thus always a top general management priority. From the standpoint of

implementation and administering strategy, three organisational issues stand out as dominant:

1. Core competency of the Owner-Proprietor in the field of Hospitality and catering management

2. adequate internal organisational structure to suit the needs of the firm to meet its objective

3. The environment of the ‘Mehbub Nagar, Hyderabad Market -Place’, is an ideal catchment area in

itself to promote and establish the Restaurant.

Matching Organisation Structure to Strategy

Every firm’s internal organisation has different pattern of structure to employ for each and every strategy.

Invariably it is grounded on own set of key success factors and critical tasks. Eventually it is the part of

the top management to design the internal organisation structure around the key success factors and

critical tasks to execute the strategy. In this case the following points serve as useful hints:

• detailed and clear job description will enable each employee to perform their task efficiently

• flat structure (not very vertical) for the flow of easy communication and information

• flexibility for the change, as when required

• employee empowerment will enable the staffs to take quick decision and suitable action

Human Resource Management

Every industry unique in its own way. Every technological process and each type of service does present

different problems to its HR managers. In the case of hotel and catering industry, uniqueness is lot more

conspicuous. With all those uniforms, strange sounding job titles, tipping, and unsocial hours, not to

mention the high levels of entrepreneurship and labour mobility. The unsocial hours factors alone

suggests that at least as ‘a life’ hotel and catering management is out of the ordinary.

Hotel and catering industry like any other business have to make profits and maintain cash flow and,

therefore, can be run on business principles. Unlike usual and routine manufacturing industry, managers

in these types of service industry requires to anticipate, adjust or react in a time span for the following

features:

• constant fluctuations in short-term customer demand

Business fluctuates by the week, the day, the hour. For the worker, this means is that his or her job has an

irregular work flow. For the business, this means a problem of adjusting labour supply to demand and

hence the use of part time and casual labour and a pay system which alters earnings by customer demand,

i.e. tipping or some appropriate surrogate.

• The demand for labour is direct

In the hotel and catering industry labour is demanded for what it can produce, people are not machine

minders. This means that productivity is based on personal ability and effort. Consequently, there are

great individual differences between worker’s outputs. Concepts of productivity are therefore, about

judgements of human capacity.

• The subjective nature of standards

Concepts like ‘hospitality’, ‘service’, ‘cleanliness’ are all matters of subjective judgement. This means

that every worker’s output is judged subjectively. This has the effect of making the actual relationships

between managers and workers crucial to standards.

• Transferability of skills

The kind of skills that workers in the hotel and catering industry possess are generally confined to that

industry. This makes for an efficient labour market between the various sectors of the industry. This,

together with the relatively unskilled nature of some of the work, encourages the high labour mobility

pattern which is often such a conspicuous feature of the industry.

Organisational commitment

Commitment is a conscious affirmation of loyalty to something or somebody. Organisational

commitment is to draw a picture of the behaviour that is likely to be found in an employee who is

specifically committed to an organisation. Besides the obvious likelihood of punctuality, reliability and

cooperativeness, three deeper aspects of commitment may be present and visible. These are:

1. An emotional attachment to the aims and values of the organisation. This attachment is often

expressed through pride in the name of the company.

2. A willingness that goes beyond normative expectations.

3. Being prepared to push instrumentality into the background

In a sense, commitment has one advantage for management over motivation, in that while motivation has

to be demonstrated to be acknowledged, commitment actually has to be openly declared in some way by

both parties. Commitment implies going public.

The main point for HR manager is that, given that they want a stable work-force, job satisfaction must be

a goal. However, the strategy must be to encourage satisfaction at the outset through a good induction

process, but more importantly to have an early appraisal at between four and six months to see if

satisfaction has been maintained.

If commitment is a desired aim, then it can be reinforced by policies which make the employee a

stakeholder in the firm. Profit-sharing and share-holding schemes work well in the context of

commitment. In a sense they are the ‘public’ commitment of management to the committed employee.

Empowerment

It is a new form of organisational behaviour and structure which has come about because of a perceived

need for organisational responsiveness and which is itself the mechanism that enables organisations to be

responsive.

Empowerment is incorporating into an employee’s role the authority and means to be responsive to

customer requirements. It enables the employees to be responsive by ensuring that the necessary rules of

order within the organisation do not interfere with the performance of a task which the customer requires.

UNIQUE COMPETITIVE ADVANTAGE

A background for this unique advantage is, the closure of an Indian restaurant ‘Geet-Mahal’ in early

1996, which ran successfully for about 4-5 years, and provided the novel taste of “Indian Curries” to the

Mehbub Nagar,Hyderabad community, since than, no one is existing in Mehbub Nagar,Hyderabad to

provide and cater to the lingering taste of the “Curry”. RIVORY has formulated series of strategies to

gain and sustain the competitive advantages:

* In time delivery of product and services.

* Quality delivery or money-back.

* Product meets the customer’s needs.

* Satisfactory delivery of services.

* Dynamic team work.

* Recognition and reward for the team.

* Never give-up.

* Culture of the Restaurant.

* Customer option available in food choice East and West.

* Non-competitive product offering.

* Never say no.

* Free publicity generation to reduce advertising expenditures.

* Less wastage of material.

Management Strength

The management team plays an important role, in the failure or success of the business future. The

Rivory Restaurant management consist on its manager and assistant manager to carry out the major

business

Decision, as to controlling working capital, define marketing strategies and company policies, and

reconcile other issues relates to employees and business.

The management strength is also depend on its employees to facilitate the process of achieve business

goals and objectives in future. The Restaurant has developed a good culture within the organisation that

the management and employees work side by side to understand the needs of the customers, and

developed a good communication system among the management, employees and customers.

The incentives scheme on good performance would be helpful, to give motivation to drive and sense of

achieving business goals and objectives.

The whole team would be responsible to problem solving, and to maintain Restaurant image, also

decision making in certain areas and speciality. Increasingly competitive environment the team would

seek the winning strategies and review them.

The Restaurant management and employees are enthusiastic, goals driven and oriented, communicative,

motivated, creative thinking, organised and well behaved in manners. The management also expecting

from its employees to be committed in future, to be working in harmony and serve the community in its

best.

Key Success Factors

Management strength lies in the closely knit family members and their commitment, and dedication of all

the staffs, will prove to be a good team work, to focus on the customer needs and demand. With the

flexible and flat structure of the management and mutual understanding amongst the team will ensure the

changes required to suit and adapt in any demanding circumstances of the restaurant

Strong leader associated with numerous other qualities, to achieve change and sense and desires of others

for the firm’s effectiveness. Persuasion is a word which conceals an enormous amount of effort, which

not only clarifies the risks, but also ensures to create credibility.

• Quality of product and services.

• Discount savings available to the shopping centre employees.

• Moderate capital investment.

• Services and product have comparative advantage.

• Restaurant environment is comfortable for everyone.

• Choice of food available.

• Recognition and good image.

• Strong customer base relationship.

• Good management team.

• Quality of team-work and performance.

• Product not re-cycled.

• Influential marketing.

COMPETITORS ANALYSIS

Some of the catering stalls are existing businesses, who were located in a different shopping complex in

Mehbub Nagar, Hyderabad .The competitors are located on the different wing of the complex where

‘Indiana’ is located, and formed a small “Food-Court”, which is a threat to our business, as Food-court

concepts are catching up these days in several other complexes in city. None of the food stall is geared up

to accommodate huge seating arrangements that we possess.

RISKS

Risk, says Rescher (1983), is the chancing of a negative outcome. To measure risk we must accordingly

measure both of its defining components, the chance and the negativity. Lack of perception of risks

contributes to unexpected systemic failures .It is therefore essential for a business plan to clearly make an

assessment of primary and secondary risks...The major risks in this business are

Primary risks

• Financial risk;

-investment risks; mortgaging the only financial asset

-owner‘s labour -return

Secondary Risks

• Risk relating to environment

- Health hazards being food industry

- Fire

-complying with legal stipulations

-security risks

• Risk Dealing with organizational issues

-handling human resources

-administrative problems

- Availability of devoted human resource

• Psychological Factors

• Uncertainties

The management perceives these risks and is well aware of these risks .They have the capability and

fortitude to tackle various risks facing the Restaurant.

Risk Management

The Management of RIVORY has the Entrepreneurial ability to taking the risk and foresees it. In future

operation RIVORY management has defined clearly the strategy to analyse, assess and manage the all

types of risks.

MARKETING PLAN

Overview

In order to maximise the company's present net worth and make satisfactory profit the estimated turnover

looks attractive but in order they provide an orderly and agreed basis on which to conduct its business in

an ever changing competitive market environment any business should have its marketing objectives

stated. For RIVORY to have successful life cycle could state its marketing objectives as follows:-

• Market research - survey questionnaire in Mehbub Nagar, Hyderabad catchment area.

• Create awareness of the firm's service among potential users

• Build the firm's image among existing and potential users.

• Advertising by various methods;

• local papers, community radio

• direct mail

• leaflet drop

• discount vouchers and deals

• Restaurant brochure

• Advertising in Mehbub Nagar, Hyderabad catchment area.

Promotional strategy

Build awareness and interest in the service product and the service organisation. Differentiate the service

offer and the service organisation from competitors. Build and maintain the overall image and reputation

of the service organisation.

Promotional tools via:

• Direct mail

• Leaflet drops - with a feedback coupon

• Signage in front of the shop

• Local paper advertising.

• Office catering

• Develop Restaurant brochure

• Allowing the display of young budding artists from local university thus attracting university

students into the Restaurant.

Distribution strategy:

Due to the nature of the product a great awareness is to be created locally and nearby suburbs of the

existence of the Restaurant and accessibility.

Pricing Strategy:

Price level - maintain price level in all segments at 10% higher than competitors to reinforce the quality

image with the quality set up of the Restaurant and the seating provisions which are not available

elsewhere. This gives the Restaurant exclusiveness and justification of the higher or premium price

range. This is based on perceived value in pricing as well as psychological pricing reinforcing “quality".

In addition focus on standard price and takeaway price which is cheaper through a cash system with no

credit provision

Market Definition

Mehbub Nagar, Hyderabad has an expanding population which is well-established but under serviced.

Hence the Legacy Restaurant is located in response to the opportunities presented by specific areas of

population growth and changing demographics.

Legacy will seek to identify the needs of the customers who are:

• Employees of the shopping complex: The Restaurant is amongst the supermarket and Discount

department store and plus approximately 48 speciality retailers. Due to the market within the

shopping complex Legacy Restaurant wishes to attract these employees. This will be achieved by

offering 10% discounts to employees working within the complex.

• Working Group consists of part-time workers, administrators, managers, tradespeople and labourers.

• University students approx. (8000 )

• Hyderabad. (5000 full time workers)

Present Customers?

Potential Customers?

• People who come to centre

• 500-600 people who work in centre(Other shops)

Who are major customers?

What are their buying motives?

Do they have common characteristics?

Market Size

Main Competitors

What is their share?

How will it be counteracted? I.e. how will the Restaurant protect its market share?

Customer Needs

Do they buy on price? Sometimes yes. Some go on package.

Do they buy on service? Yes

Do they buy on quality?

What is their price range? $6-8

What services do you provide? Wide range from light to heavy meals

Products

See Annex? - Menu

Marketing strategies

Product features

Level of Customer Service

Be active part of community e.g. theme nights provide birthday cakes

Product Quality

Price - which must be profitable

Pricing Strategy:

Price level - maintain price level in all segments at 10% higher than competitors to reinforce the quality

image with the quality set up of the Restaurant and the seating provisions which are not available

elsewhere. This gives the Restaurant exclusiveness and justification of the higher or premium price

range. This is based on perceived value in pricing as well as psychological pricing reinforcing “quality".

Pricing:

Major focus on standard price and takeaway price which is cheaper.

Cash system no credit provision

ACTION AND IMPLEMENTATION PROGRAM

WHEN (TIME)

Quality

Rigidly maintain high quality levels

through inspections and adherence to

quality procedures.

June 2010

Return\ complaints

Log each return in and follow-up with a

report to the customer.

June 2010

Pricing Program

• Price Level

Maintain price level in all segments at

10% higher than competitors to

reinforce the quality image.

June

• Discounts

Offer discounts to attract the in-house

customers.

June

Promotional Advertising

Develop a company brochure

June

Advertise weekly or fortnightly in the

local papers, University news letter etc.

Develop continuity in advertising.

June

Every 2nd day leaflet drops - with a

feedback coupon.

June

Prepare catering menu and distribute to

capture offices, seminars, and

University catering needs.

June

Build on “word of mouth”

communication. Persuade satisfied

customers to let others know of their

satisfaction. .

Competitor profile

Keep updated competitor profile.

The strength of competition in the

market influences service organisation

discretions over its price.

Evaluation and control

After implementing the above action program which covers the different aspects of marketing and which

major concerns this particular type of business a through evaluation should be done in the time period.

On the results attained further action program should be prepared.

Competitor analysis

. Where competition is strong and intense

. Where competition is promoting heavily

. Where competition is launching new services.

• Distribution strategy:

Due to the nature of the product a great awareness is to be created locally and nearby suburbs of the

existence of the Restaurant and accessibility.

STRATEGIES FOR OTHER KEY AREAS

The core of business lies in formulating an action plan for competing successfully in a given market.

RIVORYs approach evolves more or less continually in response to changing market and competitive

conditions, consists of whatever combination of offensive, defensive, and functional area support actions

are deemed appropriate to cope with the five competive forces.

A good business strategy particularly depends on the two outcomes: (1) the extent to which the strategy

creates a defendable and attractive long-term competitive position for the firm, and (2) the extent to

which the strategy enables the firm to earn “superior” profits (at least more than the average of other

firms in the market).

However, when one cuts beneath the detail and looks at the basic character of the different strategies that

firms employ, the differences begin to fall away and the amount of fundamental strategy variation

narrows considerably. It is possible to single out three generic approaches to formulate competitive

strategy:

• Striving to be the overall low-cost producer in the market

• Seeking to differentiate RIVORYs product and service offering in one way or another from rivals’

product and service

• A focused approach based on catering to a narrow portion of the market rather than going out after

the entire market. This holds true especially for those segment of the market who relished “Indian

Curries”, once provided by the restaurant which ran successfully for few years.

Production

How to deliver in quality

• The Restaurant provides good quality in food preparation and presentation with most food cooked to

order

• The food is fresh, not frozen

• Only full range eating place offering a la Carte service and including meals for children

• Casual and relaxed atmosphere

• Service - full table service provided

OPERATIONAL PLAN

The Operational plan is an essential components to our business plan and it tells that reviewer

how we going to get our product/services out to market. The Operational Plan may seem

mundane but it will outline some very important answers such fundamental questions such as:

� Who is doing what?

� What are the day to day activities?

� What are the Labour Requirements?

� What are the sources of raw materials?

In Operational Plan we will focus on these Factors. Such as:

Capacity:

We measure our facilities, labour force and equipment.

FINANCIAL PLAN

Important Assumptions

The financial plan depends upon important assumptions, most of which are shown in the

following table. The key underlying assumptions are:

� We assume a slow-growth economy, without major recession.

� We assume that there are no unforeseen changes in the expectancy in the popularity of

our restaurant.

� We assume access to investments and financing are sufficient to maintain and fulfill our

financial plan as shown in the tables.

General Assumptions

Year 1 Year 2 Year 3

Plan Month 1 2 3

Current Interest Rate 10.00% 10.00% 10.00%

Long-term Interest

Rate 10.00% 10.00% 10.00%

Tax Rate 25.42% 25.00% 25.42%

Other 0 0 0

Start-up Summary

Our start-up expenses come to Rs. 4 Cores which is mostly expensed equipment, rent, and legal

and consulting costs associated with opening our restaurants. We also require 60 lakhs of start-up

assets, which includes 50 lakhs cash and 10 lakhs of long-term assets. The start-up costs are to be

financed some by direct owner investment, as well as with the help of a major investor.

Start-up Expenses

Start-up Expenses

Legal 50,000.00

Stationery etc. 100,000.00

Menus 30,000.00

Consultants 100,000.00

Insurance 500,000.00

Rent 7,000,000.00

Capital Cost 25,000,000.00

Other 1,000,000.00

Total Start-up Expenses 33,780,000.00

Start-up Assets

Cash Required 5,000,000.00

Start-up Inventory 1,000,000.00

Total Assets 6,000,000.00

Total Requirements 39,780,000.00

Strategy and Implementation Summary

The following sections outline the strategy and implementation summary for “Rivory”.

Sales Strategy

The important elements of the sales forecast are shown in the following table. The sales of food,

drinks take a while to grow but will grow in second year.

Sales Forecast

Unit Sales

Year 1 Year 2 Year 3

Meals 25,000 35,000 50,000

Drinks 20,000 25,000 40,000

Total Unit Sales 45,000 60,000 90,000

Unit Prices

Meals 400 400 430

Drinks 50 50 60

Sales

Meals 10000000 14000000 21500000

Drinks 1000000 1250000 2400000

Total Sales 11000000 15250000 23900000

Direct Unit Costs

Meals 150 150 150

Drinks 25 25 25

Direct Cost of Sales

Covercharge

Meals 3750000 5250000 7500000

Drinks 500000 625000 1000000

Subtotal Direct Cost of Sales 4250000 5875000 8500000

Management Summary

Our management philosophy is based on responsibility and mutual respect. People who work at

“Rivory” want to work there because we have an environment that encourages creativity and

achievement. The team includes a maximum of eight to twelve employees, under a

president/manager of one.

Personnel Plan

The personnel plan reflects what we would like to keep as a steady positioning throughout the

years. Our total headcount will increase from 52 to 66 come year3 because that's the beginning of

our "good" season. However, we plan to keep the head count at 60 because of the space and

dynamics of the restaurant. It appears we don't need more than 66 employees to run the business

until the fourth and fifth year, if and when we are successful enough to expand. Detailed monthly

projections are included in the appendix.

3 (Three) years Profit and Loss Statement

The figures relating to the associated costs are for 2 units and have been estimated for 3 years.

The investments (in Rs) on a yearly basis for one unit:

Pro Forma Profit and Loss

Year 1 Year 2 Year 3

Sales 11,000,000 15,250,000 23,900,000

Direct Cost of Sales 4,250,000 5,875,000 8,500,000

Other

Total Cost of Sales 4,250,000 5,875,000 8,500,000

Gross Margin 6,750,000 9,375,000 15,400,000

Gross Margin % 61% 61% 64%

Expenses

Payroll 3,396,000 3,864,000 4,092,000

Sales and Marketing and Other

Expenses 300,000 200,000 200,000

Depreciation

Insurance

Rent 700,000 700,000 700,000

Utilities

Leased Equipment

Payroll Taxes 237,720 270,480 286,440

Other

Total Operating Expenses 4,633,720 5,034,480 5,278,440

Profit Before Interest and Taxes 2,116,280 4,340,520 10,121,560

EBITDA 2,116,280 4,340,520 10,121,560

Interest Expense

Taxes Incurred 200,000 200,000 200,000

Net Profit 1,916,280 4,140,520 9,921,560

Net Profit/Sales 17% 27% 42%

Conclusion

We consider that the idea is different from the other offerings in the market because no other

restaurants of this kind exist in the market. So “Rivory” will definitely enjoy the competitive

advantage from the day one itself and also can be excepted to perform competitively in future.

ANNEXERS

Menu

PRODUCTS

Pesarattu Idli Shahi Paneer puffed rice Pohay

Pulihora Dosa-Sambar Panchkoota Bati-stffed with sattu Upma

Gongura Fish Curry Laapsi shorshe batar jhaal Pulao

Avakkai Parimaral Dal makhani Shorshe Ilish Thepla

sorakaya pulusu Rice- Saadum Rajma Rice Luchi-aloodom Dhokla

Lentil-Paruppu Curry Chawal

Kuzhambu

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

Products

Hyderabad Special

South-Indian

North Indian

West East

2. Kitchen apparels

� aprons

� bandannas

� caps& hats

� chef coats

� chef hats

� face masks

� finger guard

� kitchen gloves

The excepted sample view of Rivory Water theme Restaurant

The excepted sample view of Jungle theme segment