b Plan of Canteen
Transcript of b Plan of Canteen
OVERVIEW OF THE BUSINESS
The name of our business is ‘Radhe Canteen’, and it is situated in Odhav Industrial Area of
Ahmedabad. We have so far only one location of this business but in future we think of starting
one more location of this business. As our business is of providing food and it is granted in by
the government as far as its legality is concern. The founder of this business are Jignesh panchal,
Dhwani Patel, Prahladsingh chundawat, Mehul jadwani . The qualification of these partners’ is
MBA. We divide our share by equal participation. We, the partners have invested 6 lakh in this
business. So we have starting capital of Rs.6,00,000. We are planning to start this business from
next month. Basically our main food is “Gujarati Thali”, and in Gujarati Thali the menu will be
changed day by day. We provide lunch and dinner both simultaneously.
Our main objective is to provide hygienic and hot food, seating arrangement, changing menu of
the food day by day, providing better service than other. We are going to operate in restaurant
industry. It is a growing industry. Restaurant Industry facing some challenges viz. economical
changes, political changes, technological changes, environmental changes, etc. We have a plan
about getting Raw Material. Right Now we get it from kalupur market which is somewhat costly
for us and it affect the finished product (Gujarati Thali) of our business. So what we’ll buy the
raw material directly form the farmer, so that we can reduce our cost and by that we can increase
our net sales, which ultimately result in a great profit.
ABOUT THE PROJECT
Here we’ll start a canteen business Odhav Industrial Area of Ahmedabad. The reason for planning this business is that there are many company situated and in these companies there are numbers of people working. Thus we have assumed that we’ll get sales by them.
Actual product
We provide Gujarati dish in two shifts. It includes: One or two green vegetable Rice or Khichadi Cadi or Dal or Dalfry Chapatti Buttermilk Salad
Extra product
1. Sweet on demand2. Pickle on demand3. Curd on demand
Target Customers
Here our target customers are not only the workers but also the employees of the companies who does not bring Tiffin with them. And also local customers such as truck drivers.
Personal information about promoters
Name Jignesh panchal Prahladsingh chundawatAdd C-462, Manishpark,
AmbikanagarOdhav,Ahmedabad 382415
Gurjarwado Near Sharda CinemaPatan (N.G.) 384265
Tel No. (M) 9998565320 (M) 9976540098Date of Birth 09-09-1984 6-05-1986
Age 24 years 22 yearsEducational Qualification
B.comM.B.A.
B.B.A.M.B.A.
Experience Fresh FreshSpecial Training Computer Basic Computer Basic, Prowess,
TallyFamily Background Working Working Strength Finance Skill Finance Skill
TARGET MARKET
We’ll serve this business in the geographical area of the Odhav in India. It is semi-urban area
where both rural and urban people live. The population density of this area is more than 6 lakh.
The climate condition of this area is very hot. There are many other business in this area. All the
business in this area are related to the factory and production. Our target customers are not only
the workers but also the employees of the companies who do not bring Tiffin with them.The
general observable of the customer are:
Age: 18 to 60
Income: 2,000 to 20,000
Occupation: Industrial workers employees, employers
Marital Status: Both married & Unmarried
Education: Either 10th or more than it
Spending Ability: Rs. 30/ day or more for one dish
The factors that most influences the customers’ purchasing decision is price, service and quality.
The approximate size of our target customers is 350/ day first year. The size of our customers
will be 400 /day and the price per dish will be Rs. 25 per dish and third year the size will be
550/day but the price will be the same.
THE COMPETITION
Competition type (specific business)
1. Small vendor of idli or dhosha.
2. Vendor of snakes or fast food.
3. Canteen of tea or coffee.
4. Small restaurant
Strength of specific business
1. Price is low
2. Old business
3. Catering more and more customers
4. This businesses are old than us.
Weaknesses of specific business
1. Sitting arrangement facilities is not better
2. Sanitation problems
3. Equipment problems
4. Place problem
5. Quality is not good
Why will your customers choose your product over your competitor?
1. By providing hot and fresh lunch and dinner.
2. By providing sitting arrangement facilities.
3. Water facilities both cold and hot.
4. We are providing meal in good quality as well as in affordable price.
MARKET PLAN AND SALES PLAN
We’ll go to positioning our canteen in the market as provider of good service, good quality, and
variety in daily food. We want customer to think of our canteen whenever they hear about
service and quality. We have a company tagline that “low price, healthy food”.
The business place is industrial area, so we have to do marketing by the following way. We have
banners for marketing our canteen in the Odhav industrial area. We have pamphlets which
include all kind of price of the product, weekly menu, name of the canteen, etc.
We spend Rs. 7,000 per year on marketing and we have budgeted marketing expense Rs. 7,000.
This is not so much but as far as our business is concern, we have to focus on the workers,
employees of industrial area, so for that we need not give any advertisement on TV or in any
newspaper. So what we have done is that we advertise our business by banners and by giving
pamphlets to the workers, employees. In other sense, we directly advertise our product to the
customers by that. And we will do this on alternate month by giving them pamphlets. And as per
getting response we’ll innovate our marketing by providing some promotion schemes & offers.
FUTURE DEVELOPMENT
Canteen’s first goal is to achieve the highest amount of response in short period of time by
providing good quality. After one year if we will get great amount of response, we plan to
establish a new venture of fast food chain in other industrial area of Ahmedabad city. In future
we want to develop our business by providing them a great satisfaction with their food, and by
providing them all kind of services and facility related with their food and their lunch time which
can be possible, so that there is an image will print in their mind that whenever they talk about
quality, service, or facility, they remember name of our Canteen, by which we can attract many
customers as well as can satisfy them and by that we can expand our target market.
Milestone
Market Expansion Increasing the product life cycleCustomer Satisfaction Increasing response Quality Standard
Level to achieve in future
At least five restaurants in industrial area of Ahmedabad.Product diversification and process modification.Introduction of new products
FINANCIAL PLAN
COST OF THE PROJECT
The cost of the project has been estimated at total Rs.6, 00,000.
Sr. No Particular Rupees1 Building on Rent (deposit) 50,0002 Plant & machinery 62,4003 Other Fixed Asset 46,5004 Preliminary & pre-operative Expenses 12,000
Total 170900
Total investment is of Rs 6, 00,000 and the cost of the project is of Rs. 170900. So we have reserve of Rs. 429100.
MARKETING BUDGET
Sr. No. Particular Rs.1 Banner & Board 2,0002 Pamphlets 5,000
Total 7,000
SALES PROJECTIONYear 1
Customers Rs./Dish Total Rs.350 per day 30 10500
2450 per week 30 7350010500 per month 30 315000 126000 per year 30 3780000
SALES PROJECTION
For Year 2
Customers Rs./Dish Total Rs.400 per day 30 12000
2800 per week 30 8400012,000 per month 30 3,60,0001,44,000 per year 30 43,20,000
SALES PROJECTIONFor Year 3
Customers Rs./Dish Total Rs.550 per day 25 13750
3850 per week 25 9625016500 per month 25 412500198000 per year 25 4950000
MEANS OF FINANCE
The cost of the project as stated above is suggested to be met through the sources:
Sr. No Particular Rupees1 Promoters’ Contribution 6,00,000
Total 6,00,000
PRELIMINARY & PRE-OPERATIVE EXPENSES
Sr. No Particular Rupees1 Legal Expenses, Scrutiny Fees 1,0002 Project Report Preparation 5003 Establishment Expenses 5004 Electrification & Water Deposits 3,0005 Inauguration Expenses & Other Expenses 5,0006 Telephone Deposit 2,000
Total 12,000
MANPOWER REQUIREMENTS Year 1
(At 90% capacity utilization)(Total Amount to be paid by way of Salary & Wages)
Sr. No. Particular Nos. Salary/ month Yearly Rs.1 Supervisor 1 4,500 54,0002 Skilled Workers (Cook) 2 5,000 1,20,0003 Semi-skilled Workers 5 3,500 2,10,0004 Unskilled Workers 5 2,000 1,20,0005 Accountant Cum Clerk 1 4,500 54,000
SUB Total 14 46,500 5,58,000Add: benefits@30% 1,67,400
Grand Total 7,25,400
UTILITIES AND OVERHEAD COSTSYear 1
(at 90% capacity utilization)
Sr. No. Particular Monthly Rs. Yearly Rs.1 Electricity 5,000 60,0002 Fuel 10,400 1,24,8003 Water 200 2,4004 Transportation with wages 1000 12,000
Total 16,600 1,99,200
UTILITIES AND OVERHEAD COSTS Year 2
(at 90% capacity utilization)
Sr. No. Particular Monthly Rs. Yearly Rs.1 Electricity 6,663 79,9602 Fuel 13,860 1,66,3263 Water 248 2,9664 Transportation with wages 1,500 18,000
Total 22,271 2,67,252
UTILITIES AND OVERHEAD COSTS Year 3
(at 90% capacity utilization)
Sr. No. Particular Monthly Rs. Yearly Rs.1 Electricity 8,329 99,9502 Fuel 17,326 2,07,9073 Water 308 3,7074 Transportation with wages 2,000 24,000
Total 27,963 3,35,556
ADMINISTRATIVE EXPENSESYear 1
(at 90% capacity utilization)
Sr. No. Particular Monthly Rs. Yearly Rs.1 Stationary & Printing 2,000 24,0002 Telephone, Fax 500 6,0003 Legal Charges 500 6,0004 Miscellaneous 500 6,000
Total 3,500 42,000
ADMINISTRATIVE EXPENSES
Year 2(at 90% capacity utilization)
Sr. No. Particular Monthly Rs. Yearly Rs.1 Stationary & Printing 2,142 25,7132 Telephone, Fax 535 6,4293 Legal Charges 535 6,4294 Miscellaneous 535 6,429
Total 3,750 4,5000
ADMINISTRATIVE EXPENSESYear 3
(at 90% capacity utilization)
Sr. No. Particular Monthly Rs. Yearly Rs.1 Stationary & Printing 2,285.5 27,4292 Telephone, Fax 571.5 68573 Legal Charges 571.5 68574 Miscellaneous 571.5 6857
Total 3,500 42,000
ANALYSIS OF BREAKEVEN POINT (BEP)
(A) Sales Realization Rs. 37,80,000
(B) Variable Costs
Sr. No Particular Monthly Rs. Yearly Rupees1 Raw Material 1,44,580 17,34,0002 Power, Fuel, Water 15,600 1,87,2003 Wages 500 6,000
Total 1,60,680 19,27,000
(C) Fixed Costs
(D) Contribution
Contribution = Sales – Variable Cost = 37,80,000 – 19, 27,000 = 18,53,000
Therefore BEP = (Fixed Cost /Contribution) * 100 = (8, 95,310 /1853,000) * 100 =48%BEP = Fixed Cost / (S.P-V.C) per dish,
Sr. No Particular Yearly Rupees1 Salaries 6,24,0002 Depreciation 23,3103 Administrative Expenses 42,0004 Repair & Maintenance 2,0005 Rent, taxes, insurance 2,04,000
Total 8,95,310
8, 95,310 / 14.70 = 60905 rs.
RETURN ON INVESTMENT
Year 1
ROI = Net Profit / Investment
= (5,35,425 / 6,00,000) * 100
= 89.23 %
Year 2
ROI = Net Profit / Investment
= (6,23,539 / 11,35,425) * 100
= 54.91 %
Year 3
ROI = Net Profit / Investment
= (6,30,512 / 17,58,964) * 100
= 35.84 %
PROFIT & LOSS ACCOUNTAs on Year -1
Dr CrExpenses Amount
Rest.Revenue Amount
Rest.Raw Material 17,34,960 Sales 37,80,000
Utilities 1,99,200Repair& Maintenance 2,000Rent, Taxes, Insurance 2,04,000
Wages 6,000Administrative 42,000
Depri. On machinery 9,360Depri. On Furniture 13,950
Salaries 7,25,4001/5 of Building 10,000
1/5 of preliminary Exp. 2,400Advertisement Exp. 7,000
Total 29,56,270 Total 37,80,000Tax (35% of 8,23,730) 2,88,305
Net Profit 5,35,425
37,80,000
BALANCE SHEETAs on Year -1
Liabilities Amount Rs. Assets Amount Rs.Capital 6,00,000 Plant & machinery 62,400
Less Dep. 9,360 53,040
From P & L Account (Net profit)
5,35,425 Furniture & Utensil 46,500
Less Dep. 13,950 32,550
Un paid Tax 2,88,305 Building 50,000Less Return off 10,000 40,000
Current Asset
Cash Balance 12,88,540
Miscellaneous Exp.
Preliminary Exp. 12,000 Less Return off 2,400 9,600
14,23,730 14,23,730
PROFIT & LOSS ACCOUNTAs on Year -2
Dr CrExpenses Amount
Rest.Revenue Amount
Rest.Raw Material 23,12,126 Sales 43,20,000
Utilities 2,67,252 Interest Received from bank
63,000
Repair& Maintenance 3,000Rent, Taxes, Insurance 17,000
Wages 8,222Administrative 45,000
Depri. On machinery 9360Depri. On Furniture 13,950
Salaries 7,25,4001/5 of Building 10,000
1/5 of preliminary Exp. 2,400Advertisement Exp. 10,000
Total 34,23,710 Total 43,83,000Tax (35% of 9,59,290) 3,35,751
Net Profit 6,23,539
43,83,000
BALANCE SHEET
As on Year -2
Liabilities Amount Rs. Assets Amount Rs.Capital 11,35,425 Fixed Assets
Plant & machinery 53,040
Less Dep. 9,360 43,680
From P & L Account (Net profit)
6,23,539 Furniture & Utensil 32,550
Less Dep. 13,950 18,600
Un paid Tax 3,35,751 Building 40,000Less Return off 10,000 30,000
Current Asset
Cash Balance 13,95,235
Cash At Bank 6,00,000
Miscellaneous Exp.
Preliminary Exp. 9,600 Less Return off 2,400 7,200
20,94,715 20,94,715
PROFIT & LOSS ACCOUNT
As on Year -3
Dr CrExpenses Amount
Rest.Revenue Amount
Rest.Raw Material 28,90,158 Sales 49,50,000
Utilities 3,35,564 Interest Received From Bank
1,14,627
Repair& Maintenance 4,000Rent, Taxes, Insurance 17,000
Wages 10,278Administrative 48,000
Dep. On machinery 9,360Dep. On Furniture (A) 13,950Dep. On Furniture (B) 16,500
Salaries 7,25,4001/5 of Building 10,000
1/5 of preliminary Exp. 2,400Advertisement Exp. 12,000
Total 40,94,610 Total 50,64,627Tax (35% of 9,70,017) 3,39,505
Net Profit 6,30,512
50,64,627
BALANCE SHEETAs on Year -3
Liabilities Amount Rs. Assets Amount Rs.Capital 17,58,964 Fixed Assets
Plant & machinery 53,040
Less Dep. 9,360 34,320
From P & L Account (Net profit)
6,30,512 Furniture & Utensil (A) 18,600
Less Dep. 13,950 4,650
Furniture & Utensil (B) 55000
Less Dep. 16,500 38,500
Un paid Tax 5,37,081 Building 30,000Less Return off 10,000 20,000
Current Asset
Cash Balance 17,30,604
Cash At Bank 10,91,683
Miscellaneous Exp.
Preliminary Exp. 7,200 Less Return off 2,400 4,800
29,26,557 29,26,557
ANNEXURE -1
COST OF PLANT & MACHINERY
Sr,No. Particular Nos. Cost per m/c Total value1 Freezer 1 25,000 25,0002 Water Cooler 1 15,000 15,0003 Mixture 1 3,000 3,0004 Gas Stove (with
connection)1 5,000 5,000
Sub Total 48,000
Add 30% towards taxes ,insurance, etc
14,400
Grand Total 62,400
ANNEXURE -2
DEPRECIATION CALCULATION
Year 1
Particulars Percentage YearlyMachinery @ 15% 9,360
Furniture, Utensils @ 30% 13,950Total 23,310
Year 3
Particulars Percentage YearlyMachinery @ 15% 9,360
Furniture, Utensils (A) @ 30% 13,950Furniture, Utensils (A) @ 30% 16,500
Total 39,810
ANNEXURE -3
COST OF PRODUCTION & PROFITABILITY(At 90% capacity utilization)
Sr. No. PARICULARS Yearly(A) Cost of Production
1 Raw Material 17,34,9602 Power, Fuel, Water 1,87,2003 Utilities 1,99,2004 Repair & Maintenance 2,0004 Rent, Taxes & Insurance 2,04,0005 Wages 6,0006 Salaries 7,25,8007 Administrative Expenses 42,0008 Depreciation 23,310
Total Production Cost Rs. 31,24,470Sr. No. Particulars
(B) Income
1 Total Sales Income Rs.37,80,000
Total Annual income Rs. 37,80,000 (C) Gross Profit Rs.6,55,530
(D) Income Tax Rs.2,94,436 (E) Net Profit Rs.3,61,094
ANNEXURE 4
Rate of VegetablesVegetables Rs./kgBean Pods 28Brinjal 20Cabbage 16Carrot 20Cauliflower 32Chilly(green) 20Coriander 40Cucumber 20Fenugreek 40Garlic 30Ginger 100Green pea 50Ladyfinger 25Onion 16Peas 50Potato 10Radish 20Spinach 20Tomato 15Vetch 20
Other Items RateButtermilk 10
Curd 25Ghee 200Rice 30
Mug Pulse 40Tovar pulse 30
Besan 40Salt 4
Sugar 22Wheat Flour 15Red chilly 10Mustard 40
Green Termic 60Edible Oil 50
Hing 20
ANNEXURE 5
Sr.No. Particular Quantity Required for 1 day
Cost for 1 Day (Rs.)
Quantity Required for a week
Cost for a week (Rs.)
1 Wheat Flour 20 Kg 300 140 Kg 2,1002 Tuver Dal 15 Kg 520 135 Kg 3,6403 Mustard 0.7 Kg 30 5 Kg 2104 Garam Masala 0.42 Kg 65 3 Kg 4555 Green Chilly 0.7 Kg 15 5 Kg 1056 Coriander 1.4 Kg 46 10 Kg 3227 Garlic 2.2 Kg 26 16 Kg 1828 Ginger 0.7 Kg 72 5 Kg 5049 Buttermilk 10(liter.) 100 70 (liter.) 70010 Curd 7 Kg 150 50 Kg 1,05011 Ghee 7 Kg 1072 50 Kg 7,50412 Bason 2.8 Kg 115 20 Kg 80513 Salt 1.4 Kg 15 10 Kg 10514 Sugar 2.8 Kg 58 20 Kg 40615 Red Chilly 3.5 Kg 235 25 Kg 1,64516 Edible Oil 15 (liter.) 1080 105 (liter.) 7,56017 Hing 1.5 tin 22 10 tin 15418 Rice 11.5 Kg 515 80 Kg 3,60519 Cucumber 2.8 Kg 58 20 Kg 40620 Tomato 5 Kg 140 35 Kg 98021 Gur 2 Kg 50 14 Kg 35022 Lemon 0.7 Kg 15 5 Kg 10523 Onion 2.8 kg 46 20 Kg 32224 Potato 1.4 Kg 22 10 Kg 154
Total 4,864 34,048
The item in the following table require only one day in a week
Sr. No. Particular Quantity Required for 1 day Cost for 1 Day (Rs.)1 Cabbage 5 Kg 802 Bean Pod 5 Kg 120
3 Brinjal 5 Kg 1004 Cauliflower 5 Kg 1405 Ladyfinger 5 Kg 1106 Peas 5 Kg 2357 Spinach 5 Kg 858 Vetch 5 Kg 100
Total 1,055
ANNEXURE 6
Menu of Radhe Canteen for lunchDay Food items Rs./ dishMonda Dal, Rice, One vegetable,
(cabbage), Salad, Buttermilk, Chapatti, Gur, one pulses
30
Tuesday Dal, Rice, One vegetable, (bean pods), Salad, curd Buttermilk, Chapatti, Gur, one pulses
30
Wednesday Dal, Rice, One vegetable (brinjal), Salad, curd Buttermilk, Chapatti, Gur, one pulses
30
Thursday Dal, Rice, One vegetable, (cauliflower), Salad, curd Buttermilk, Parothas, Gur, one pulses
30
Friday Dal, Rice, One vegetable, (Ladyfinger), Salad, curd Buttermilk, Parothas, Gur, one pulses
30
Saturday Dal, Rice, One vegetable, (Onion & Potato), Salad, curd Buttermilk, Chapatti, Gur, one pulses
30
Sunday Dal, Rice, One vegetable(Reddish), Salad, curd Buttermilk, Chapatti, Gur, one pulses
30
ANNEXURE 7
Menu of Radhe Canteen for DinnerDay Food items Rs./ dishMonday Dal, Rice, One vegetable,
(peas), Salad, Buttermilk, Chapatti, Gur, one pulses
30
Tuesday Dal, Rice, One vegetable, (potato), Salad, curd Buttermilk, Chapatti, Gur, one pulses
30
Wednesday Curry, Rice, One vegetable (Spinach), Salad, curd
30
Buttermilk, Chapatti, Gur, one pulses
Thursday Dal, Rice, One vegetable, (cauliflower), Salad, curd Buttermilk, Parothas, Gur, one pulses
30
Friday Curry, Rice, One vegetable, (Green pea), Salad, curd Buttermilk, Parothas, Gur, one pulses
30
Saturday Curry, Rice, One vegetable, (Vetch), Salad, curd Buttermilk, Chapatti, Gur, one pulses
30
Sunday Dalfry, Rice, One vegetable(tomato), Salad, curd Buttermilk, Chapatti, Gur, one pulses
30