ODOROUS TEA CAFÉ

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

BUSINESS PLAN

ODOROUS TEA CAFÉ

SUBMITTED TO :( LECT) RAMNEEK KAUR

GNIMT (GURU NANAK INST. OF MANMT & TECH )

LUDHIANA

SUBMITTED BY:

ILLUMANITIES

(DEEPAK, CHAMKOR,

JASNEET, KUSHMA, MANJIT)

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.

The venue appeals to four major market segments

• Young Professionals

• College Students

• Tourists and Business Travelers

• Senior Citizens

The ODOROUS TEA CAFE’s 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 in the Exit Strategy section of the Financial Plan.

Mission

The mission of ODOROUS TEA CAFE is to create an entertainment and refreshment venue for the residents of Ludhiana. ODOROUS TEA CAFÉ will be an accessible and affordable venue, offering unique and appealing taste for all visitors.

The purpose of ODOROUS 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 keep construction 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.

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 company profits 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 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 CAFE’s 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 it’s 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 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 Aurbindo College.

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.

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 CAFÉ visitors 2,40,000

Competition and Buying Patterns

Competition

The venue's direct competition consists of four competitors.

Barista

Costa

Nescafe

Coffee café day

Value Proposition

ODOROUS TEA CAFÉ will focus on offering exceptional services to its customer. To reach and maintain a unique and high quality image, the venue will provide attentive 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:

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:

Website Print Neighborhood marketing Radio Television E-mail / news letter 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

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 Other Expenses" 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.

Few recipes of different category of tea

Category 1 : General tea

Apple and Honey Iced Tea

Ingredients:

3 cups water, boiling 4 tea bags 1/3 cup honey 3 cups apple juice

Preparation:

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

Cranberry Orange Iced Tea

Ingredients:

2 quarts iced tea 1 can frozen cranberry juice concentrate 1 cup orange juice 1/3 cup sugar

Preparation:

In a large pitcher, stir together the cranberry juice and the orange juice. Add iced tea, 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:

1 tbs chamomile 1 tbs damiana leaves 1 tbs lemongrass 1 tbs spearmint leaves 1/4 tbs jasmine flowers 1/4 tbs orange peel, grated

Preparation:

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

Ginger Iced Tea

Ingredients:

5 tea bags 1-inch piece of fresh ginger Sugar, to taste

Preparation:

Slice ginger root into thin slices and crush. Heat 1 quart of water and let tea steep with 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:

1 cup water, boiling 1 tsp dried anise leaves 1 tsp honey

Preparation:

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

Lavender Verbena Tea

Ingredients:

1 cup lemon verbena leaves 3 tbs lavender flowers

Preparation:

Mix the herbs thoroughly, and store in an air tight container. For a cup of tea, use 1 tsp in a cup of boiling water. Steep for 5 minutes and strain out the leaves. Enjoy with a bit of honey.

Peppermint Tea

Ingredients:

8 oz peppermint leaves 8 oz lemon balm leaves 8 oz fennel seeds Preparation:

Mix the herbs thoroughly, and store in an air tight container. For a cup of tea, use 1 tsp in a cup of boiling water. Steep for 10 minutes and strain out the herbs

Rosemary Punch

2 handfuls of dried rosemary 2 cups water 1 litre ginger ale 12 oz frozen pineapple juice

Preparation:

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

Ingredients:

Category 3: Hot alcoholic

Irish tea

Ingredients:

1 tbs loose tea, or 1 tea bag 1 oz whisky 1 oz milk or cream 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:

3 oz Schnapps 3 oz rum 6 oz water Juice from one orange 1 tea bag (black)

Preparation:

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

Tea Frog

Ingredients:

1 tbs loose tea, or 1 tea bag 1 oz gin 1 tbs lemon juice 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:

1 oz cognac

1 oz dark rum 1 cup brewed tea Several cloves 1/2 tsp honey Pinch of nutmeg

Preparation:

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

Category 4: iced tea alcoholic

Southern Kick

Ingredients:

1/2 oz whiskey 1/2 oz Southern Comfort Iced tea

Preparation:

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

Spiced Rum Iced Tea

Ingredients:

5 oz iced tea 1 1/4 oz spiced rum 1/2 tsp lemon juice

Preparation:

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

Tea Spike

Ingredients:

1 1/2 oz white rum 1/2 oz dark creme de cacao 4 oz iced tea

Preparation:

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

Menu

Items Price General 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

RS.80

RS.75

RS.75

RS.80

RS.80

RS.65

Spiced Maple Iced Tea

Peach Iced Tea

Raspberry Honey Iced Tea

Saigon Iced Tea

Strawberry Tea Smoothie

Lavender Verbena Tea

Thai Iced Tea

Green Tea Tokyo

Vanilla Chai

Indian Milk Tea

Masala Chai

Romantic Chai

Masala spice Chai

Ginger chai

Milk Thandai

Herbal tea

Anise Tea

Lavender Verbena Tea

Peppermint Tea

RS.70

RS.90

RS.85

RS.80

RS.90

RS.100

RS.100

RS.120

RS.110

RS.40

RS.70

RS.55

RS.85

RS.45

RS.40

RS.150

RS.150

RS.150

Rosemary Punch

Sage Tea

Damiana Delight

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

RS.150

RS.150

RS.150

RS.250

RS.250

RS.250

RS.250

RS.250

RS.250

RS.200

RS.200

RS.200

RS.200

Gluhwein RS.200