project o tea cafe

8/9/2019 project o tea cafe

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ODOROUS TEACAF

Come, let us have some tea and continue to talk about happy things.


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BUSINESSPLAN

ODOROUS TEACAF

SUBMITTED TO :( LECT) RAMNEEK KAUR SUBMITTEDBY:

ILLUMANITIES

(DEEPAK, CHAMKOR,

JASNEET, KUSHMA, MANJIT)


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ODOROUS TEA CAFE

Executive Summary

The concept of ODOROUS TEA CAFE is to provide an entertainment and

restaurant venue in downtown Ludhiana. The establishment will provide a live

entertainment venue; a restaurant; and venue rental services for the Ludhiana

city.

ODOROUS TEA CAFE is in a start-up position, with a beginning date of July

2010.The purpose of this business plan is to estimate start-up and ongoing costs;

identify revenue streams; and forecast net cash flow and profits. The company

expects to lease venue space in April2010, and have a three-month build-out of

the space. We anticipate opening our doors to the public in mid-July.

The venue is a 6,600 square foot complex, which will also house the company's

corporate business office. It will accommodate 200-400 people. The venue will be

equipped with state-of-the-art audio, lighting, and video systems, serving the

need for a true entertainment venue in Ludhiana demographics are favorable,

with minimal competition.

Food and Beverage

Retail Merchandise

Arcade

Venue Rental

Managing four separate revenue streams requires ramping up each one

individually, ensuring that each area performs well before developing the next

revenue stream. In order of importance, Food/Beverage is expected to provide

the most stable revenue streams.


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The venue appeals to four major market segments

Young Professionals

College Students

Tourists and Business Travelers

Senior Citizens

The ODOROUS TEA CAFEs prime location, demographics, and minimum

competition are major advantages for the success of the venture. The proposed

venue will provide a local solution to the lack of social atmosphere and live

entertainment venues in the region.

The purpose of this business plan is to estimate start-up and ongoing costs;

identify revenue streams; and forecast net cash flow and profits.Initial start-up

and operating capital of 50 lac. Is provided as paid-in capital by owner i.e.

ILLUMANITIES GROUP.

The owner's total investment is RS 75 lac. We anticipate a start-up date of July

2010, with several months build-out of an appropriate leased space. A grand

opening is targeted for mid July 2010. Our targeted break-even month is July

2011.

The owner is aware of the highly risky nature of launching an entertainment-

based restaurant establishment. If the venture fails, the owner's paid-in capital

and expenses may not be recovered. If the venture is undercapitalized and

requires more working capital, the owner will consider bringing on investment

partners. The owner will also review the return-on-investment for personally

providing more paid-in capital. In the event that net profitability cannot be

attained, the owner will take sequential steps to exit the venture, as outlined inthe Exit Strategy section of the Financial Plan.


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Mission

The mission of ODOROUS TEA CAFE is to create an entertainment and

refreshment venue for the residents of Ludhiana. ODOROUS TEA CAF will be an

accessible and affordable venue, offering unique and appealing taste for allvisitors.

The purpose ofODOROUS TEA CAFE is to provide the residents of Ludhiana and

beyond, with quality entertainment in an enjoyable, pleasant atmosphere. It will

provide excellent place and opportunity for social interaction.

Keys to Success

ODOROUS TEA CAFE venue has three keys to success.

Location-- ODOROUS TEA CAFE will be strategically located to

maximize the revenue derived from the live entertainment consumer. The

showcase will be in downtown Ludhiana. This is an excellent location for multi-

purpose entertainment, community education, and restaurant with live music.

Low Operating Cost-- ODOROUS TEA CAFE will be managed specifically

to maintain targeted operating ratios that allow for maximum net profits. For

initial construction and build out, ODOROUS TEA CAFE management will keepconstruction costs at a minimum. The venue will be housed in a leased building.

All operating expenses will be kept to a minimum, with cost of sales and margins

reviewed on a monthly basis. Cost of sales is targeted at 40%.

Wide Range of Services-- ODOROUS TEA CAFE will provide

entertainment, community, a full-service restaurant, a retail merchandise area,

and venue rental services. The objective will be to maximize the revenue per

visitor and extend each visitor's time spent at the venue.

Objectives

The purpose of this business plan is to estimate start-up and ongoing costs;

identify revenue streams; and forecast net cash flow and profits. The venture will

be funded solely through paid-in capital provided by the owners.


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The concept of ODOROUS TEA CAFE is to provide an entertainment and

restaurant venue in downtown Ludhiana. The establishment will provide a live

entertainment venue; a restaurant; a retail component offering arts-based retail

merchandise; and venue rental services for the Ludhiana area. The objectives are

to:

Remodel a leased space and launch the venue within a 50 lac start-up

budget, and an infusion of capital of 10 lac. In the first month The venue will open

within three months of leasing the appropriate space. Leasing is anticipated to

begin in April 2010.

Maintain a 40% gross margin.

Company Summary

ODOROUS TEA CAFE is in a start-up position, with a beginning date of July 2010.

The company expects to lease venue space in April 2010, a three-month build-out

of the space. We anticipate opening our doors to the public in mid-July.

Company Ownership

Established in 2010, ODOROUS TEA CAFE is operated as a 'partnership' under the

ownership of Illuminates, Incorporated The owner will pay taxes on the companyprofits on his personal tax returns.

Start-up Summary

The corporate owner has contributed 75 lac. In paid-in capital for the initial

development of ODOROUS TEA CAFE. Start-up expenses include accounting;

legal; consulting services; research and development; and expensed equipment.

Products and Services

The venue is a 6,600 square foot complex, which will also house the company's

corporate business office. It will accommodate 200-400 people. The venue will be

equipped with state-of-the-art audio, lighting, and video systems, serving the

need for a true entertainment venue in Ludhiana. The general appearance will be

clean, open, and pleasing to the customer. The demographics are favorable, with


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minimal competition from other cafes. ODOROUS TEA CAFE will generate sales

through four revenue streams that comprise the company's products and

services. The revenue streams have been developed with the goal of lengthening

each customer's stay and maximizing their individual revenue contribution.

The following revenue streams represent ODOROUS TEA CAFEs products and

services:

Food and Beverage

Retail Merchandise

Arcade

Venue Rental

Food and Beverage: our specialty is our food and beverage, in Ludhiana there is

no other who is totally focusing on tea only and its a untapped area in Ludhiana.

Retail Merchandise:

The venue will provide space for the retail sale of ODOROUS TEA CAFE

merchandise of music- and art-focused items. Retail display space will be

provided for each band booked at the venue.

Arcade:

ODOROUS TEA CAFE will provide an arcade area for customer entertainment,

providing several interactive skill games, such as pool tables, ping pong tables,

pinball machines, darts, foosball, and video games to provide additional

entertainment.

Venue Rental:

ODOROUS TEA CAFE will be available as a venue rental for promoters; groups;

business meetings; and private parties. Additional services will be provided, as

requested, with individualized pricing for each service. Additionally, ODOROUS


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TEA CAFE will offer floor space to mercantile operators to showcase their

merchandise.

Technology

The company's cash systems will be fully automated, using a centralized software

platform for processing cash and credit card purchases.

Venue Layout/Floor Plan

The owner will build-out an existing restaurant and , with the majority of build-

out costs, totaling 50lac , applied toward removing and building several walls.

Market Analysis Summary

The area's major industries include tourism, agriculture, manufacturing, and

technology. The region offers excellent transportation; recreational activities; arts

and cultural entertainment; food and wine; and lodging for tourists and business

travelers.

Market Segmentation

The venue appeals to four major market segments:

Young Professionals--We appeal to single adults and young couples seeking to

interact through the social arts and socializing. Young professional customers will

range in age from 21 to 51. The venue will appeal to this category by switching

the tempo and entertainment to be more appealing to adults as it gets later into

the evening.

College Students--By creating an environment that is appealing to college

students, we secure a natural progression between the high school student and

the young professional. The venue is in close proximity to Pcte and AurbindoCollege.

Tourists and Business Travelers--More and more business travelers and tourists

visit the Ludhiana area every year. We plan to reach these people through direct

marketing to local hotel patrons.


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Senior Citizens--10% of the Ludhiana population is represented by senior citizens.

Good environment and unique taste will definitely attract them.

4.2 Targeted Population

We estimate that 4% of the targeted population in the Ludhiana market will visit

ODOROUS TEA CAFE each year.

Total Population Pool in 2009 60 lac approx.

Percentage Targeted as ODOROUS TEA CAFE Visitors 4.0%

Estimated ODOROUS TEA CAF visitors 2,40,000

Competition and Buying Patterns

Competition

The venue's direct competition consists of four competitors.

Barista

Costa

Nescafe

Coffee caf day

Value Proposition

ODOROUS TEA CAF will focus on offering exceptional services to its customer.

To reach and maintain a unique and high quality image, the venue will provideattentive and friendly service and will invest in on-going training of its employees.

Our second strategy is emphasizing entertainment. The tactics are interactive

entertainment, constant sensory appeal, and unique event viewing. Finally, we

will focus on our identified target markets, stressing the following concepts:


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Emphasize Exceptional Service.

Emphasize an Entertaining Experience.

Focus on Target Markets.

Marketing strategy

Our marketing budget is set at 1% of our overall sales revenue. This budget will be

used to reach our targeted customers through cost-effective marketing

campaigns. On-going processes will be geared to promote the brand name and

keep the venue at the forefront of entertainment establishment in the Ludhiana.

Our marketing efforts will focus on the following channels for reaching new and

repeat customers:

y Websitey Printy Neighborhood marketingy Radioy Televisiony E-mail / news lettery In- store promotion

Our first three months will focus on our grand opening event. An aggressive,

comprehensive marketing campaign will precede the grand opening. A radio

advertising campaign will precede the event. Contests will be held on the target

radio stations giving away V.I.P. passes (coupons) to the event while at the same

time creating excitement about the opening. We will initiate a regular local radio,

TV, and print campaign to create brand awareness.

Marketing plan


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The following table details our Sales and Marketing plan for the first six months,

including the venue's grand opening.

We have targeted an average of 1% of sales as our on-going Sales and Marketing

budget. This allocation is included into the "Sales & Marketing and OtherExpenses" in the Profit and Loss table in the Financial section of this business

plan. Marketing expenses during the 6 months of the project rollout are

estimated at a substantially higher level and are summarized in the table below

for each type of advertising. This rollout allows us to manage costs and cash flow.

The timeline coincides with our sales revenue ramp-up strategy.

We anticipate developing our radio advertising in end of June, prior to our grand

opening in July. Website development will also begin in June, as does print

advertising, followed by television advertising in June. We anticipate beginning a

neighborhood marketing campaign in July, an in-store promotion campaign in

august.

Management team

The company CEO is Manjit Kumar Mishra. The management team is headed by

owner i.e. . Illuminates group. (group members are Chamkor Singh, Deepak,

Jasneet Kaur, Kushma, Manjit Kumar Mishra)

Funds arrangement

We will arrange our seed capital by presenting our report to MSME department of

govt. and if they feel viability in project they will fund us in the form of CGSFT

.i.e. credit guarantee security fund trust scheme. And for this they charge us 2% of

the loaned amount as their fees + bank rate of interest.


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Few recipes of different category of tea

Category 1 : General tea

Apple and Honey Iced TeaIngredients:

y 3 cups water, boilingy 4 tea bagsy 1/3 cup honeyy 3 cups apple juice

Preparation:

Steep tea bags in hot water for 5 minutes. Strain out tea bags, and stir in honeyand juice. Mix until honey is dissolved. Chill and serve over ice.Serves 6-8

Cranberry Orange Iced Tea

Ingredients:

y 2 quarts iced teay 1 can frozen cranberry juice concentratey 1 cup orange juicey 1/3 cup sugar

Preparation:

In a large pitcher, stir together the cranberry juice and the orange juice. Add icedtea, and then mix in sugar. Continue stirring until the sugar is dissolved. Put back

in the fridge and let chill through and serve over ice. Serves 8 - 10.Damiana Delight

Ingredients:

y 1 tbs chamomile


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y 1 tbs damiana leavesy 1 tbs lemongrassy 1 tbs spearmint leavesy 1/4 tbs jasmine flowersy 1/4 tbs orange peel, grated

Preparation:

Combine herbs in two cups of water, and simmer for 15 minutes. Strain out herbsand serve hot.

Ginger Iced Tea

Ingredients:

y 5 tea bagsy 1-inch piece of fresh gingery Sugar, to taste

Preparation:

Slice ginger root into thin slices and crush. Heat 1 quart of water and let tea steepwith the ginger. Let steep over low heat for at least 10 minutes. Strain out tea and

ginger slices and add sugar. Let cool and serve over ice.

Category 2 : HERBAL TEA

Anise Tea

Ingredients:

y 1 cup water, boilingy 1 tsp dried anise leavesy 1 tsp honey

Preparation:

Steep anise leaves in hot water for about 5-6 minutes. Strain out leaves andsweeten tea with honey.


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Lavender Verbena Tea

Ingredients:

y1 cup lemon verbena leaves

y 3 tbs lavender flowersPreparation:

Mix the herbs thoroughly, and store in an air tight container. For a cup of tea, use1 tsp in a cup of boiling water. Steep for 5 minutes and strain out the leaves. Enjoywith a bit of honey.

Peppermint Tea

Ingredients:

y 8 oz peppermint leavesy 8 oz lemon balm leavesy 8 oz fennel seeds Preparation:

Mix the herbs thoroughly, and store in an air tight container. For a cup of tea, use1 tsp in a cup of boiling water. Steep for 10 minutes and strain out the herbs

Rosemary Punch

y 2 handfuls of dried rosemaryy 2 cups watery 1 litre ginger aley 12 oz frozen pineapple juice

Preparation:

Heat water and rosemary until boiling, then simmer for 5 minutes. Let cool thenstrain out the rosemary. Combine with the pineapple juice. Add ginger ale rightbefore serving.


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Ingredients:

Category 3: Hot alcoholic

Irish tea

Ingredients:

y 1 tbs loose tea, or 1 tea bagy 1 oz whiskyy 1 oz milk or creamy 1 tsp sugar

Preparation:

Brew tea in hot water for 3-5 minutes, then strain out tea. Add whiskey and other

ingredients, then serve.

Jaeger Tea

Ingredients:

y 3 oz Schnappsy 3 oz rumy 6 oz watery

Juice from one orangey 1 tea bag (black)

Preparation:

Heat ingredients together in a saucepan until boiling. Let simmer for 5 minutes,and serve. Sugar to taste.


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Tea Frog

Ingredients:

y 1 tbs loose tea, or 1 tea bagy 1 oz giny 1 tbs lemon juicey

1 cup water

Preparation:

Brew tea in hot water for 3-5 minutes, then strain out tea. Add gin and lemon,then serve

Hot Tea Grog

Ingredients:

y 1 oz cognacy 1 oz dark rumy 1 cup brewed teay Several clovesy 1/2 tsp honeyy Pinch of nutmeg

Preparation:

Heat tea and other ingredients together in a saucepan. Serve hot with a cinnamonstick


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Category 4: iced tea alcoholic

Southern Kick

Ingredients:

y 1/2 oz whiskeyy 1/2 oz Southern Comforty Iced tea

Preparation:

Mix whiskey and Southern Comfort in a glass, and top off with iced tea. Serveover ice.

Spiced Rum Iced Tea

Ingredients:

y 5 oz iced teay 1 1/4 oz spiced rumy 1/2 tsp lemon juice

Preparation:

Combine iced tea, rum and lemon juice. Serve over ice in a highball glass.


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Tea Spike

Ingredients:

y 1 1/2 oz white rumy 1/2 oz dark creme de cacaoy 4 oz iced tea

Preparation:

Mix ingredients with ice in a cocktail shaker. Shake well and serve in a high ballglass.


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Menu

Items PriceGeneral tea

Apple and Honey Iced Tea

Cranberry Orange Iced Tea

Ginger Iced Tea

Sparkling Jasmine Iced Tea

Lemon Almond Iced Tea

Lime Mint Iced Tea

Spiced Maple Iced Tea

Peach Iced Tea

Raspberry Honey Iced Tea

Saigon Iced Tea

Strawberry Tea Smoothie


Thai Iced Tea

Green Tea Tokyo

RS.80

RS.75

RS.75

RS.80

RS.80

RS.65

RS.70

RS.90

RS.85

RS.80

RS.90

RS.100

RS.100

RS.120


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Vanilla Chai

Indian Milk Tea

Masala Chai

Romantic Chai

Masala spice Chai

Ginger chai

Milk Thandai

Herbal tea

Anise Tea


Peppermint Tea

Rosemary Punch

Sage Tea

Damiana Delight

RS.110

RS.40

RS.70

RS.55

RS.85

RS.45

RS.40

RS.150

RS.150

RS.150

RS.150

RS.150

RS.150


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Hot alcoholic tea

Gluhwein

Irish Tea

Jaeger Tea

Tea Frog

Hot Tea Grog

Green Tea Tokyo

Iced tea alcoholic

Long Island Iced Tea

Southern Kick

Spiced Rum Iced Tea

Tea Spike

Gluhwein

RS.250

RS.250

RS.250

RS.250

RS.250

RS.250

RS.200

RS.200

RS.200

RS.200

RS.200


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Documents

project o tea cafe