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FranchisingProspectus

Welcome Letter

Business Plan

Company Summary

Our Commitment to You

Your Commitment to Us

Welcome to the Pizza Zone family. We hope that this will be the beginning of an exciting journey full of rewarding experiences in your professional career. Pizza Zone Outlets provide excellent customer service with best taste prepared in best hygienic conditions with a Mission to offer our customers “Best food at Prices they can afford”. At Pizza Zone we go to great lengths to ensure our Outlets reflects best in-class ambiance with a wide range of Menu which meets the need & want of customers. We at Pizza Zone work hard to make sure our Outlets are seen as vital Partners in communities. This approach is the reason Pizza Zone is being welcomed into other cities and this is why we have tremendous potential to continue our rapid growth throughout India.

Pizza Zone is committed to being a good and respectful franchisor and offers tremendous opportunities for our Partners to develop their Professional skills. Our Management teams foster an environment where people at all levels within the company & our partners are treated honestly & with respect. There is no area of leadership more important than integrity. Our culture is built on the highest level of integrity and we will continue to hold all our Partners to this high standard.

Your experience today in Pizza Zone will serve as your introduction to our growing company as well as our Vision, Mission, and Values. All of this, combined with the guidance of your team and supervisor, allows you to become acquainted with our environment and be successful in your New Role – “Franchisee”.

As you explore what the Brand has to offer and discover your new family, remember that its you & only You that will make the difference.

And now….. Let’s begin our journey……

(Owner- MD)

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(Co-Owner)

(Co-Owner)

Mr. Narpat Chauhan

Mr. Mahendra Chauhan

Mr. Bhargav Patel

Business Plan a. Mission b. Key to Success c. Objective

Executive Summary

This pizza restaurant business plan proposes launching a new pizza business to fill a need for family oriented dining in a growing community. Pizza Zone is a established brand in the restaurant Industry. Bolstered by the need for more choices in family oriented dining experiences, combined with the option for home delivery, the restaurant is positioned to take advantage of the market need and serve the families in other Big cities & towns.

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2013 2014 Proposed 2014

20150

500

1000

1500

2000

2500

3000

480 768

1440

2880

192307.2

576

1152

72 115.6 216432

Gross SalesFood CostNet Profit

Till June 2014 8 outlets

Till Dec 201415 outlets

201530 outlets

•Figures in Lacs• Figures shown are combined sales & Profit of Franchisor & Franchisee Outlets

Business Plan a. Mission b. Key to Success c. Objective

The local population is rapidly growing with new subdivisions and young town families moving towards more cosmopolitan cities. Our Brand startup strategy will be to exploit the first-mover opportunity. A new, high quality pizza restaurant should grow along with the community by establishing a good reputation with the new residents. The pizza business plan calls for an exciting, profitable start-up year ahead with future forecasted growth as we meet the demands of the customers. In all, this plan describes a healthy company with good growth prospects, looking to manage its orderly growth in the near future. 4

33%

24%14%

9%

8%

4%

3%4% 1%

Market Share 2012

QSR

Casual Dinning

Fine Dine

Bakery

Food courts

Pubs & Bars

Cafes & palour

Kiosks

Institutional catering

30%

70%

Share of franchise & non franchise restaurants 2013

Non FranchiseFranchise

*This format is combination of QSR & Casual Dinning.Both of these categories combined has a market share of 57%

Business Plan a. Mission Mission Statement

Pizza Zone creates a friendly and pleasant atmosphere for customers in a well – designed, productive and hygienically clean environment in which people can work happily. We are extremely sensitive to the look and taste of our good pizza as well as our vast menu of fresh cold salads and pastas, so we are very precautious towards selecting our each ingredients.

“ We look to provide the best pizza with a wide variety of salads & pastas at best possible value to our customer satisfaction.”

Additionally we will provide a delivery service and promise that is the benchmark in the industry. To create an organization that all stakeholders are proud to be involved in. Our commitment includes giving back to the community in which our team members and franchisees live and work. We believe that being involved in the community helps provide a higher quality of life.

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Business Plan b. Key to Success

Keys to Success

The keys to success in this business are:• Delivering the customer value proposition.

• Marketing: promoting a new Outlet, Product and delivery channels to a new market community.

• Product quality & consistency.

• Pricing effectively with respect to the project quality and customer value proposition.

• Family oriented atmosphere with daytime spared to family entertainment.

• Management: Products delivered on time, cost controlled, marketing budgets managed. There is a temptation to fixate on growth at the expense of profits.

• Reporting and Controls in place for inventory & financials.

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Business Planc. ObjectiveObjectives:

The objectives of Pizza Zone are:

• To establish the market presence needed to support marketing and sales goals and to attract customers.

• To reach healthy monthly sales by the end of the year & average monthly sales increasing steadily

• To achieve double digit profit margins.

• To develop top- rated relationships with Suppliers & Distributors.

VISION:

“To Become a leading Franchised food operator of Dine-In Pizza restaurant concept in India”

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Expansion Plana. Gujaratb. Rajasthanc. M.P.

Total of 17 Outlets planned for Gujarat:Out of 17 outlets planned, currently we have 8 outlets5 Outlets in Ahmedabad, 1 Outlet in Rajkot, 1 Outlet in Surat & 1 Outlet in Jamnagar.Planned outlets1 Outlet in Anand, 1 Outlet in Bhuj, 1 more Outlet in Rajkot, 2 more Outlets in Surat, 1 Outlet in Amreli, 1 Outlet in Bhavnagar, 1 Outlet in Bharuch & 1 outlet in Navsari

These outlets are planned over a span of 1 years:


Total of 20 Outlets planned for Rajasthan:

1 Outlet in Mt. Abu, 2 Outlets in Udaipur, 2 Outlets in Kota, 2 Outlets in Chittaurgarh, 2 Outlets in Ajmer, 2 Outlets in Jodhpur, 2 Outlets in Bikaner, 2 Outlets in Sikar, 2 Outlets in Alwar, 3 Outlets in Jaipur.

All these cities are already mapped based on the flow of populations, number of students, tourism, literacy rate & strength of pocket sizeThese cities are also planned in a span of 2 years

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Total of 10 Outlets planned for Madhya Pradesh:

2 Outlets in Bhopal, 2 Outlets in Indore, 2 Outlets in Gwalior, 2 outlet in Ujjain, 1 outlet in Ratlam, 1 outlet in Jabalpur

All these cities are already mapped based on the flow of populations, number of students, tourism, literacy rate & strength of pocket sizeThese cities are also planned in a span of 2 years

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Company Summarya . Start-up Summary (i) FormatsFormats

Express

Dine-in

Super Dine-in

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Company Summarya . Company Ownershipb. Start-up Summary

Company Summary

Pizza Zone is a privately owned pizza restaurant under the parent company “Benchmark Hospitality Pvt. Ltd.” offering a product menu & services that does not currently exist in the area. Our target customers are many of the young families and students in the area.The first Pizza Zone outlet was launched on October 2007 in Ahmedabad, Gujarat. Currently we have 5 owned & 3 Franchised Outlets.Pizza Zone outlets are spread in 3 formats:1. Kiosk format (300-500sq.ft.)2. Mid-scale Pizza Restaurant (1200-1500 sq.ft)3. Up-scale Pizza Dine-in Restaurant ( 1800+ sq.ft)

Company Ownership

Pizza Zone restaurants under the parent company “ Benchmark Hospitality Pvt. Ltd. ” is jointly owned by Mr. Narpat Chauhan, Mr. Mahendra Chauhan & Mr. Bhargav Patel.

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Start-up Summary

Our start-up costs cover the renovation of the occupied outlet space, Professional fees, and expenses associated with opening of your first outlet. The start-up costs can be financed by direct owner investment, financial institutions, and private investors.

Pre Start-up Support :• Market Study – In depth market analysis of the area we will be entering.• Demographic Analysis• Competition Analysis• Customer profile analysis to optimize ROI

New Outlet Development – Support to Franchise in development of New Outlet.• Blue Prints• Executing the Project ( Licensing & Manpower)• Vendor Identification & Registration• Final HOTO ( Handover Takeover to Franchisee)

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In-outlet Support – Operations & Training• SOP (Standard Operating Manual) Training• Front end Operations & Back end kitchen Staff Training• Restaurant Manager & Asst. Mgr. Training• POS Software Training• Cash & Inventory Management Training

*Post outlet Opening Support : *Audits – • Mystery Customers audit ( Ambiance, Cleanliness, Customer

service, Food handling & Quality) • Food Safety Audits• Cash Management Audit• HR compliance Audit

*Marketing & I.T.–• Marketing the New outlet through Print, Air & Web Media• Designing promotion based on local market analysis• Software Up gradation, Email Supports, CCTV links will be

provided to Franchises.

* All post launch support will be chargeable to the franchisee 14

Company Summarya . Start-up Summary (i) Formats

Formats :

Express outlets :

Pizza Zone Express outlets can be opened in space of 300 – 500 sq.ft, ideally designed to cater in Malls, Offices, Airports, and Metro as well as Railway Platform.

Express Outlets will cater mostly take-away with menu of Pizza’s & limited Side dishes & in some cases will have a limited sitting options. How Much does an Express Outlet Costs????• Pizza Zone Express outlets cost between INR. 8-10 lacs. This

includes the franchiser fees, Renovating cost & complete equipments and instruments fee.

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Formatsa . Express Format (i) Investment

Investment for Pizza Zone Express Rs. In LacsTotal Space 500 sq.ft.

ESTIMATE COSTInterior 150,000

Equipments 280,000

Delivery Bikes (2 bikes) 100,000

Air Condition 40,000

Furniture 30,000

Computer Peripherals 100,000

Franchise Fees 300,000

1,000,000

* Express Outlets equipments, Interiors & Furniture will vary depending upon the size & area of business.

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Formatsa . Express Format (i) Estimate P&L

Estimated P&L – Express Outlets

Particulars Year 1 Year 2 Year 3* Figure in lac’s

Turnover - A 60 72 86.4Variable Cost B

Food Cost 24 28.8 34.56

Wastage 2% of FC 0.48 0.58 0.69

Fixed Opex

Salary – 64k assumed to increase by 5% per year

7.68 8.06 8.47

Elec. + Fuel 72000/month + 5% per year

8.64 9.07 9.52

Depreciation Furniture, Equipments (11lac/5yrs)

2.2 2.2 2.2

Rent – 30000/monthAssumed to increase 5%

3.6 3.78 3.97

Total OPEX 46.46 52.49 59.41

Profit before Tax (VAT, Ser. Tax, Royalty)

13.40 19.51 26.9917

Formatsa . Express Format (i) Break Even Break-even turnover per Month Rs. In Lacs

Particulars Amt. per Month

On Avg. 42 Deliveries required per day @ Avg. Cost of Rs. 250

315,000

Total turnover require of the month 315,000Less Food Cost 126,000

Less Wastage 2% of Food Cost 2,520

Contribution (Profit before fixed cost)(Sales)-(Food cost & wastage)

186,000

Fixed Cost (Salary+elec.+rent) 184,000

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Dine-In Outlets:

Pizza Zone Dine-In outlets are best suitable of Tier II & III cities. These outlets located primarily in shopping centers, strip centers & similar retail locations with appropriate parking for delivery vehicles and customers of the outlet. A Dine-In outlet needs about 1000-1500 sq.ft. which can accommodate sitting of around 50-55* persons.

Dine-In outlets will cater both Dine-In & Home delivery. A Dine-In outlet can cater both Veg. & Non-veg Menu.

How Much does an Dine-In Outlet Costs????• This concept will be a complete Franchise model. Individual or

Multiple Outlets can be franchised. Master Franchisee will also have option to sub-franchise the outlets.

Pizza Zone Dine-In outlets cost between INR. 25-30.0* lacs. This includes the franchiser fees, Renovating cost & complete equipments and instruments fee.

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Investment for Pizza Zone Dine-In Rs. In LacsTotal Space 1000-1500

sq.ft.

Interior 450,000Equipments 700,000Crockery 300,000Air Condition 300,000Furniture 350,000Computer Peripherals 100,000Delivery Bikes (2 Bikes) 100,000Miscellaneous 100,000Franchise Fees 600,000

30,00,000

Formatsa . Dine-In Format (i) Investment

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Estimated Turnover – Dine-in Restaurant

1st Year Walk-Ins Avg Bill Amt.

Daily Sales

Total Turnover

Lunch Dinner Monthly

Weekdays 89 100 135 25,455 5,60,000(22 days in Month)

Weekends 95 127 135 30,000 2,40,000

(8 days in Month)

Total 8,00,000

Food Cost Count: Daily

189 customer *135(weekdays)+ 222 customer(weekend)*135 = 55,455/ 411 total customer=135 Monthly Avg.\Head\Bill.40% food cost.(135*40%=54 per head)

Total Turnover: Monthly

5,60,000(weekdays)+ 2,40,000 (weekends)+10% Home Delivery= 8,80,000 Monthly Sale40% food cost.= 3,52,000 Food Cost

Formatsa . Dine-In Format(i) Estimate Turnover

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Estimated P&L – Dine-in Restaurant

Particulars Year 1 Year 2 Year 3

Turnover - A 105.6 126.72 152.06Variable Cost B

Food Cost 42.24 50.69 60.83

Wastage 2% of FC 0.84 1.01 1.22

Fixed Opex

Salary – 150k assumed to increase by 5%

18 18.9 19.85

Elec. + Fuel70000\month + 5%

8.4 8.82 9.26


2.2 2.2 2.2


9.6 10.08 10.58

Total OPEX 81.3 91.7 103.9


24.32 35.02 48.13

Formatsa . Dine-In Format (i) Estimate P&L

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Formatsa . Dine-In Format (i) Break even

Break-even turnover per Month Rs. In Lacs

ParticularsRequired 136 customers per day at avg. Selling price 135

5,50,800

10% from Home Delivery 60,900

Total turnover require of the month 6,11,700Less Food Cost 2,44,680


Contribution (Profit before fixed cost)Sales – Food cost & wastage

3,62,126

Fixed Cost (Salary+elec.+rent) 3,60,000

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Super Dine-In Outlets:

Pizza Zone Super Dine-In outlets are part of Premium outlets, which provides a completely new level of experience . These outlets located primarily in shopping centers, strip centers & similar retail locations with appropriate parking for delivery vehicles and customers of the outlet. A Super Dine-In outlet needs about 2500+ sq.ft. which can accommodate sitting of around 130+ persons.

Super Dine-In outlets will cater both Dine-In & Home delivery, with a completely new customized menu including a banquet hall. Super Dine-in outlets can cater both Veg & Non veg Menu.

How Much does an Super Dine-In Outlet Costs????• This concept will be a complete Franchise model. Individual or

Multiple Outlets can be franchised. Master Franchisee will also have option to sub-franchise the outlets.

Pizza Zone Super Dine-In outlets cost between INR. 60.0 – 70.0 lacs. This includes the franchiser fees, Renovating cost & complete equipments and instruments fee.

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Investment for Pizza Zone Super Dine-In Rs. In `000Total Space 2500 sq.ft.

Interior 20,00,000Equipments 18,00,000Crockery 7,50,000Air Condition 7,50,000Furniture 10,00,000Delivery Bikes (4 bikes) 2,50,000Computer Peripherals 2,50,000Miscellaneous 2,00,000Franchise Fees 8,00,000

70,00,000

Formatsa . Super Dine-In (i) Investment

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Formatsa . Super Dine-In Format (i) Estimate P&L

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Estimated P&L – Super Dine-in Restaurant

Particulars Year 1 Year 2 Year 3

Turnover - A 180 216 259.2Variable Cost B

Food Cost 72 86.4 103.7

Wastage 2% of FC 1.44 1.73 2.07

Fixed Opex

Salary – 220k assumed to increase by 5%

26.4 27.72 29.11

Elec. + Fuel180000\month + 5%

21.6 22.68 23.81


5.6 5.6 5.6


18 18.9 19.85

Total OPEX 145.04 163 184.1


34.96 52.97 75.08

Formatsa . Super Dine-in Format (i) Break-even

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Break-even turnover per Month Rs. In Lacs

ParticularsRequired 209 customers per day at avg. Selling price 135

8,45,500

+ 10% home delivery 84,550

Total turnover require of the month 9,30,050Less Food Cost 3,72,020


Contribution (Profit before fixed cost)Sales – Food cost & wastage

5,50,590

Fixed Cost (Salary+elec.+rent) 5,50,000

Menub . Dine-In Format

About Unlimited deal order: 2 Types of Soups

22 Types of Flavored Veg. Salads

Supreme Garlic Bread

2 Hand rolled single topping pizzas 1 Thin crust pizza

Mouthwatering Dessert

Ala-Card MenuAla card menu will be same as Express Format.

Veg. Lunch

Starting @ 120*

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Veg. Dinner Starting @ 150*

Menua . Super Dine-In Format

About Unlimited deal order: 2 Types of Soups 10 Types of Flavored Veg. Salads 6 Types of Fresh Veg. Salads 6 Types of Flavored Non Veg. Salads Premium Cheese Garlic Bread 1 Type of Starter (Veg. & Non veg.)(Italian, Mexican, Wraps, Rolls) 2 Types of Italian Main Course (Veg. & Non veg.) 2 Types of Mexican Main Course (Veg. & Non veg.) 2 Types of Chinese Main Course (Veg. & Non veg.) 1/2 Types of Baked Dishes 2 Hand rolled single topping pizzas (Veg. & Non veg.) 1 Thin crust pizza (Veg. & Non veg.) Soft drink/Mocktail (300ml Single Serve) Mouthwatering Dessert

Ala-Card MenuAla card menu will be same as Express Format.

* This Menu is currently under research & development.* Prices excluding taxes.

Veg. Lunch

Starting @ 150*

Non Veg. Lunch

Starting @ 199*

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Menua . Express Format

CommitmentOur Commitment to You

You are now part of Pizza Zone Family. Now that you are a part of our family, we commit to honoring you with our Company’s Policies . We will always respect you as an part of the Company. We will treat you with fairness and respect, be sensitive to your concerns, value your differences, and serve and support you the best we can.

At Pizza Zone, we have external customers who by orders or dine in eats in our Restaurant. We also have internal customers- the associates and partners who serve in our individual roles. Just as we share those commitments with our external customers, we shall share those commitments with you.We will nurture an environment that fosters creativity and excellence, an environment that makes it safe to take risks.

Your Commitment to Us

In exchange of our commitment, we ask our Franchisees to support us so that we can achieve the best results together. We ask you to share all the information we need to do the work required to support our agreement. This is important if we are to provide the level of service to you that we propose. Take the time needed to work on the items on which you have agreed to work. Agree to listen to any advice we offer, and we agree to your ideas and thoughts.

Welcome to Pizza Zone. We are glad you decided to join us in the great Adventure !

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Talk to Us:Krishna Thapa – Franchise Business DevelopmentContact No: +91 7359443354Email: [email protected]

Narpat Chauhan – (MD) PizzaZoneContact No: +91 9825066221Email: [email protected]

Mahendra Chauhan – Co-owner PizzaZoneContact No: +91 9825024949Email: [email protected]

Website: www.pizzazone.co.in

mailto:[email protected]



http://www.pizzazone.co.in/