Business Plan of a Hang Out Spot
86
Products And Services
Transcript of Business Plan of a Hang Out Spot
Products
And
Services
Products and Services
Features: It will be located in Gulshan, the central hub of Dhaka city where it will be possible to attract a lot of customers since this area is frequented by all. Let’s go! will be located not on a busy road but rather on a quite road within the hearts of Gulshan.
To begin with, the building is a two-storey one with a total floor space of 6000 square feet approximately. The ground floor will be divided into three separate sound-proof rooms. Two the rooms will be equipped with giant projector screens and high-quality sound systems. One of the rooms will be used to view sports matches. The decoration of this area would include comfortable couches and lively colors with murals and wall paintings depicting different kind of sports in motion. We plan to keep this section open till late at night on the days big premier league football matches take place since they are aired at wee hours of night in Bangladesh.
The second room will be a small private movie theater. Basically customers will be able to rent the room for 3 hours to watch a movie of their choice with friends of course. The third room will be a mini karaoke station, which needs no introduction or explanation. Here customers can have ball of a time testing your musical talents, sipping on a glass of mocktail and relishing yummy munchies.
We know that no entertainment will be complete without food so besides providing the customers with snacks and beverages in the screening rooms, we will also have full-fledged restaurant on the 1st floor where they can come with the special someone for a candle-light dinner and dance. The dance floor will be designed aqua colored fluorescent lights that it will give the optical illusion of dancing on a water body. The dance floor will be open from dinner time only as a sumptuous Italian ala carte will be offered during dinner time only. The lunch will be kept simple with some set menu from different cuisines. We have reserved the terrace of the 1st floor for our peace-loving customers. There will be a book-shelf loaded with English and Bengali books from almost all genres and people can sit back and relax with a cup of coffee and their favorite book, during the day time. We will also arrange book reading sessions at regular intervals.
The backyard garden will be decorated profusely with lanterns and lights and a small pond with colorful fishes. During the day time customers can sit under the shade of a tree and ponder upon anything and everything. After sunset, the backyard garden restaurant can be booked for private barbeque parties.
Competition AnalysisWhen it comes to the sports-café, movie-screening room and karaoke competition will be fairly low. Even though similar efforts like a sports café have been made, this many features were not added to any place before. We will not be showcasing matches through regular LCD televisions. Instead, the sports café of Let’s Go!” will be equipped with giant screen projector and high quality sound system like Yamaha MSR100 or Club V Series. And as for the movie room and karaoke, these concepts are brand new to Dhaka. Moreover, since “Let’s Go!” will be located in Gulshan, the affluent crowd here who find it quite difficult to reach Star Cineplex at Panthapath will be willing to pay a whopping amount to watch a movie of their choice at “Let’s Go!” Moreover, the movies that are played at Cineplex are rather ancient. People are done watching them way before they come to Cineplex. We had an added advantage here since we will be having a collection of latest English, Bangla and Hindi movies in the form of blue-ray disks. Customers can also bring their own DVDs with them if they want to watch a movie of their choice.
However, for the restaurant we might face strong competition from popular restaurants like Steak House, El Toro, Spaghetti Jazz and so on but then again our “dinner and dance” facility is an added advantage. The restaurants mentioned above specialize in one or two cuisines. Most restaurants in Dhaka actually do that. It’s either a Thai restaurant or an Italian restaurant or a Mughlai restaurant. The restaurants that offer multi-cuisine are mostly buffet. “Let’s Go!” will have a restaurant which will serve sit-down ala-carte in three cuisines – Thai, Italian and Continental. The terrace café will have a wide variety of snacks and appetizers, which can be ordered from the projection rooms on the ground floor and the garden restaurant as well. From our market research we have also found that breakfast diners are getting really popular these days but there are not too many of that kind. The restaurants of hotels do serve breakfast but they are relatively lavish and hence quite expensive. The small scale cafes like Café Italiano or Mermaid Café also serve breakfast but they start service from 7:30am in the morning. The terrace restaurant at “Let’s Go!” will serve breakfast from as early as 7:00 am in the morning. However, the variety of breakfast will not be that wide though. There will be some set meals, mostly continental accompanied by some local favorite breakfast items. The book reading session at the terrace is also a fairly new concept to Dhaka.
However, we might face some competitive disadvantage as all our direct and indirect competitors are established in their own position. They are also very competitive in terms of price.
Pricing:The tariffs for reservation and the food prices are as follow:
1. Movie Theatre: The movie theatre which will have a capacity to house around 25-30 people, can be reserved in advance or rented upon arrival if it is vacant for the time slot. The rate is Tk.299 per person. It is worth mentioning that there will be a self-service popcorn mention and a small fridge filled with bottles of soft-drinks, absolutely complimentary.
2. Sports Lounge: The rate for the sports café is also Tk.299 per person and will also have the facility of free popcorn and soft drinks.
3. Karaoke Station: There will be no entry fee or any other charge for the karaoke station but guests will be required to order at least one beverage in order to stay there.
4. Restaurant: A detailed menu of the restaurant, with prices has been given below.
Breakfast 7:00 AM – 10:00 AM(Continental)
Item Price
1. Egg (any style), 2 pieces sausage, 2 pieces toasted bread with butter
Tk.199
2. French Omelet served with roasted potatoes and baked beans
Tk.229
3. Four pancakes with maple syrup or honey
Tk.129
4. Three pieces of toasted bread with butter and jam
Tk.119
5. Cornflakes (chocos/ special K/ honey/ strawberry served with hot or cold milk.
Tk.139
Breakfast (Local)
Item Price1. Mixed Vegetable and local style omelet
served with 2 parathas Tk.119
2. Semolina Halwa with 2 parathas Tk.129
The prices of breakfast meals are inclusive of a choice of hot beverage (tea/coffee) or a glass of fresh juice (depends upon availability of fruits).
Snacks served from 10:00 AM through out service hours.
Appetizers:
Item Price1. Chicken/Prawn/Vegetable on toast (8
Pieces)Tk.239
2. Deep Fried Chicken Wings Tk.219
3. Deep Fried Butterfly Praws Tk.239
4. Spring Rolls Tk.199
5. Nachos with Meat Sauce Tk.299
6. Vegetable Tempura Tk.219
7. Mixed Platter(chicken wings, fried prawn, spring roll,
chicken on toast)
Tk.499
Hot Sandwiches:
Item Price1. Smoked Beef Tk.229
2. Smoked Chicken Tk.219
3. Smoked Fish Tk.229
4. Grilled Cheese Tk.209
Cold Sandwiches:Item Price
1. Smoked Beef Tk.229
2. Smoked Chicken Tk.219
4. Fresh Veggies Tk.199
Lunch:
Soup:
Soup of the day – Tk.149
Salad:
Item Price1. Fresh Garden Salad Tk.189
2. Russian Salad Tk.199
3. Chicken Pasta Salad Tk.199
4. Chicken Cashew nut Salad Tk.219
Main Course (Set Menu):
Sizzling Steaks (served with mashed potato and steamed vegetables)
Item Price1. Pepper Streak Tk.499
2. Mushroom Steak Tk.499
3. Mexican Steak Tk.499
4. American Style Steak Tk.499
Fish and Chicken:
Item Price1. Fish and Chips Tk.399
2. Chicken Ala Kiev (served with French fries and steamed vegetables)
Tk.449
3. Chicken Cutlet (served with French Fries)
Tk.399
4. Fish Cutlet (served with French Fries) Tk.299
Noodles/ Rice (Set Menu)
Item Price1. Fried Rice/Noodles served with fried chicken and mixed vegetable in oyster
sauce
Tk.249
2. Fried Rice/Noodles served with dry red chilly beef
Tk.229
3. Fried Rice/Noodles served with tarmarind prawn
Tk.299
4. Fried Rice/Noodles served with lemon ginger chicken
Tk.229
Dinner
Soup (served with dinner roll/garlic bread)
Item Price
1. Cream of Chicken Tk.129
2. Cream of Mushroom Tk.119
3. Cream of Tomato Tk.99
4. French Onion Tk.119
AppetizersItem Price
1. Garlic Bread (4 pieces) Tk.159
2. Cheese Garlic Bread (4 pieces) Tk.179
3. Mozzarella Sticks (6 pieces) Tk.199
4. Calzones (4 pieces) Tk.199
Pizza (served all-day)Item Price
1. Margherita Tk.499
2. Mexican Hot Tk.499
3. Al Funght Tk.499
4. Vegeteriana Tk.479
4. Bolognese Tk.499
5. Oriental Hot Tk.499
6. Mare Tk.499
7. Mince Meat Tk.499
Pasta (Your choice of shape from Ravioli, Tagliattele, Penne with any one of your favorite sauces)
Item Price1. Fresh Tomato Sauce Tk.449
2. Alfredo Sauce Tk.449
3. Pesto Sauce Tk.449
4. Bolognese Sauce Tk.499
5. Pink Sauce of Tomato and Cream Tk.499
6. Lasagne Bolognese Tk.559
7. Lasagne Vegetarian Tk.499
Beef (served with mashed potato and steamed vegetables)
Item Price1. Pepper Streak Tk.499
2. Mushroom Steak Tk.499
3. Mexican Steak Tk.499
4. American Style Steak Tk.499
5. Roasted Beef Tk.499
6. Chateaubriand Tk.549
Chicken (served with mashed potato and steamed vegetables)
Item Price1. Chicken Cacciatore Tk.449
2. Grilled Chicken Tk.449
3. Chicken Picatta Tk449
4. Chicken Ala Kiev Tk.399
Fish (served with mashed potato and steamed vegetables)
Item Price1. Grilled Fish Tk.449
2. Lobster Thermadore Tk.799
3. Fish Sicilliana Tk.549
4. Deep Fried Fish Tk.499
Dessert (served all day)
Item Price1. Brownie Tk49
2. Cheesecake Tk.149
3. Apple Pie Tk.119
4. Cream Caramel Tk.69
5. Cupcake platter Tk.149
6. Chocolate/Lemon Mousse Tk.149
7. Tiramisu Tk.119
8. Choice of Ice-cream Tk.99
Hot Beverages
Item Price1. Regular Tea Tk.49
2. Lemon Tea Tk.49
3. Green Tea Tk.59
4. Cappucino Tk.89
5. Espresso Tk.79
6. Mochachino Tk.99
7. Americano Tk.69
Cold Beverages
Item Price1. Iced Tea Tk.119
2. Iced Coffee Tk.129
3. Oreo Frappe Tk.149
4. Strawberry Jelly Frappe Tk.149
5. Blueberry Cheese Frappe Tk.199
6. Fresh Juice (Mango, Orange, Pineapple, Papaya, Water Melon)
Tk.119
7. Soft-Drinks Tk.39
Mocktails
Item Price1. Sunrise Tk.249
2. Sunset Tk.249
3. Virgin Mojito Tk.249
4. Virgin Pina Colada Tk.249
5. Mud Slide Tk.249
6. Fire Engine Tk.249
7. Tropical Cyclone Tk.249
Marketing Plan
Marketing Plan
Market Research
We realize that no matter how good the venture is, it cannot succeed without effective marketing. We did not want to take a risk by depending on our assumptions about customer preferences therefore we chose to conduct a proper formal market research regarding the demand factors of “Let’s Go!”. We conducted a detailed research on how interested is our target group on our venture, in which sections are they least or most interested, how much are they willing and able to spend for something like “Let’s Go!” and how would they prefer to be approached when “Let’s Go!” is in operation.
We wanted to begin with a secondary research using existing literature like industry publications, journals and so on but for solid data were not available for our industry in concern. However, we did take into consideration the opinions of the owners and managers of some existing lounges and restaurants, who were interviewed in the most informal manner.
However, we have conducted a thorough primary research using the questionnaire attached in the appendix section. Our target market was the urban youth, ranging from late teens to early thirties. As students of North South University we had access to the 12,000 students there. Moreover, we also surveyed some members of Scholastica Alumni Association. It was not possible and feasible for us to survey the entire population, therefore we chose a sample of 50 people from different age ranges.
The findings of our market research have been summarized in the pie charts in the next three pages:
Economics:
Total Size of market: The entire population of Bangladesh is 158,570,535 (July 2011 est.). However, only 28% of these people are part of the urban population. Basically, this 28% is the size of our potential market. However, our target will be narrowed down even more because out of this 28% urban population, a smaller fraction belong to the generation Y and belong to the “youth” group.
Market share percentage: It is very difficult to give an actual figure on the percentage of market share as no concrete data was available regarding the industry in Bangladesh. However, lounges and restaurants are mushrooming around Dhaka city and the urban youth are flocking into any new place that is opened. In this scenario, “Let’s Go!” , being a combination of all sorts of entertainment under one roof, will be at an advantageous position to acquire a substantial market share.
Current Demand in Target Market: Even though the industry is approaching a declining stage, our market survey reveals that there is significant demand for hangout places in the market. The decline can be explained using the innovation factor. Most of the lounges in Dhaka are of the same pattern. They do not offer anything other than food and sheesha. Government regulation against sheesha and people’s boredom with just food are the factors causing the decline. We are here take advantage of that factor. “Let’s Go!” will be from all sors of activities that can be banned by government and will also add more features other than food.
Trend in Target Market: There has been a change in the market trend for entertainment. Nowadays, a major portion of the youth of Bangladesh is financially solvent. Either with a pocket money from parents or their own income from part-time jobs, which again is a growing trend, the urban youth are able and willing to spend money. And most of them want to spend it in a good way. The most popular trend these days is to flock to lounges in groups or as couples. But our market research suggests that people want more. A desired activity among the urban youth is to watch football or cricket matches with their friends. Market research also suggest that there is a high demand for a movie theatres where latest Hollywood and Bollywood movies are screened. Keeping that in mind, we have added the movie screening section in our venture. Our survey also pointed out that a certain percentage of people also want a place where they can go for breakfast.
Industry Analysis using Porter’s Five Factors:
Threat of new entrants:The threat of new entrants is a significant factor, for the current competitors operating in the market for a any good or service. This is one of the major factors amongst Porter's Five factors and it consists of the following five components:
Capital RequirementCapital Requirement for establishing another such business, of a combined lounge, sports cafe and restaurant, is quite high, since it needs investment in several areas, the majority of which will be in real estate for the business and also on high technology equipment. Therefore, the risk of new competition entering into this field will be lower, in comparison to traditional businesses such as a restaurant or a simple movie theater.
Switching cost for buyersSwitching costs for buyers is not a major concern here, as this is a completely new business concept and is targetted towards the youth, who would try out such new places. Moreover, our services will be provided in competitive prices, ensuring that our customers do not have to incur high switching costs, when they choose our lounge as an alternative to their more usual hangout spots.
Government RegulationThis will include obtaining a license from the government for establishing the business, land permit, restaurant license etc, which would not be very difficult to get, is proper documentation and finances can be shown.
Access to distribution channelsSince this is a service busniess, the only channel of distribution would be “Let’s Go!” itself.
Supplier Power:The suppliers are going to have significant power in this industry since it requires certain sophisticated equipment and materials, for which there is only a limited number of suppliers are there in the market.
Concentration of suppliersSuppliers are going to be required for the electronic equipments, cooking facilities, furniture and decoration etc. The plan is to sign long term, exclusive contracts with a handful of distributors who are going to provide us with their products. Hence we can minimize our costs from wholesale purchases and the concentration of suppliers can be kept low.
Importance of suppliers’ product to clientsSuppliers are immensely important in such a business, since the products that our suppliers are selling to us, the unique and high tech equipments might not be readily available with any retailer. Therefore it is important that a proper professional relationship is maintained with all our suppliers.
Buyers’ switching cost to other substitutesAs we are thinking of signing exclusive contracts with the suppliers for most of our materials, switching costs can be significantly high. For eg. If we make a deal with a poultry firm for the supply of meat at a certain quoted price and eventually the deal does not work out, we might have to pay compensation to the company. Moreover changing suppliers will also mean that supplies cannot be bought at that fixed quoted rated and the market price will be used, which will further increase the amount of switching costs.
Buyers’ threat to backward integration No threat of backward integration exists in this type of a retail, service business. Rivalry among existing firmsOur venture “Let’s Go” is a combination of a number of concepts of which the restaurant and lounge are already growing industries in Bangladesh. Thus stiff competition will be there in attracting customers for these two divisions. The other features, however, are completely new ideas and no known other companies are known in Bangladesh for offering this services.
Number and size of competitorsConsidering both restaurants and lounges combinedly the size of the competition is substantial. With new restaurants and lounges opening up in Dhaka everyday, there will be significant competition with both the established brands and new entrants in attracting customers.
Industry Growth Rate
There is rapid growth in the lounge and restaurant business as many entrepreneurs find it to be a lucrative investment. As the living standards of the Bangladeshi citizens are improving day by day, and the fast food culture becoming very popular with today’s young adults, investing in this sector has become very profitable over the past few years.
Product DifferentiationOur concept of bringing all sorts of recreational activities under one roof, is a completely unique concept itself. The combination of a restaurant, movie theater, lounge altogether is unheard of which should be a major point of attraction for our main target market, which is the 18-30 demographics. Also for the rest of the customers, the traditional restaurant services will be provided as well, ensuring that customers from the other age groups also
visit “Let’s Go” over the longer run.
Exit BarriersSignificant exit barriers exist in this business since the risk of sunk costs are quite high. The type of equipments and supporting materials that is required is expensive to begin with and in the case of the business failing to earn sufficient profits, there will be no alternative use for them, implying that investment in this business will have to be for the long term and no early exit strategy can work.
Determinants Of Buyer PowerNumber of buyers relative to sellersAs this service as a whole entertainment package is only provided by “Let’s Go”, it can be said that there is only one seller compared to many buyers. Then again, if individual aspects are considered, then there are many other restaurants and lounges offering similar products. Thus the number of competitors has to be divided upon each unique service that we are offering and will depend on which specific product customers are coming for at our venture.
Switching CostsThere are no direct switching costs for the customers. If they don’t want to take our services, they can simply go to another restaurant or lounge. Sellers threat to forward integrationThere will be limited scope for any further expansion or integration with other firms as the number of services that we are offering is already exceeding that of any other ordinary restaurant or lounge in Dhaka.
Buyer’s Purchase VolumeAccording to our forecasts purchase volumes are expected to increase after a couple of months into its operation. Since some of our concepts are totally new in Bangladesh(for eg. Karaoke) it will take some time for the people to get acquainted with it. However once it is established purchase volumes are predicted to increase as most customers will come for the variety of recreation that we are offering and for every service they avail they will have to pay, automatically maximizing the revenues.
Threat of Substitute ProductsIn terms of substitute products, customers will find numerous substitutes for the services of the restaurant, lounge and movie theatres individually, although, if all the services are considered to be one whole product then there is no other substitute for our product.
Relative price of substitutes Many restaurants, lounges and fast food outlets are now offering food items at reasonable prices. Also the amusement parks, cineplexes etc are also charging an affordable price for their services. Thus it has to be ensured that our pricing is in par or even below then that of our major competitors, at least initially, so that customers are driven away from the established vendors towards our products.
Relative quality of substituteIf not all, the majority of our established competitors are offering high quality products and services, specially the foreign fast food franchises and restaurants. Also the theme parks and cineplexes have now become comparable to international ones. Hence in order to survive in this market, we have to provide supreme quality products which will satisfy our target group of youngsters and create a loyal customer base.
Barriers to Entry:Some probable barriers to entry have been discussed below.
High Capital Cost: One of the prime barriers to enter market for “Lets Go!” will be the capital cost. The funds required by this sports café assumed to be a lofty level. Some of the pointers would be the high cost of equipments in the sports lounge, movie theatre, karaoke station and the restaurant and the maintenance cost of these equipments is quite high. The location to set up this café is also an expensive (Gulshan) selection. One of the approaches would be to collect funds from every possible way such as personal saving, bank loan, preferred stock to meet the high capital cost of this project.
Moderate Production Cost: Though the production cost is not low for “Lets Go!”, it can be scaled as moderate. So it is not a barrier to enter in the market but it will be a issue of strong competition as our other counterpart such as Bench, El Toro, Spagehtti Jazz, Steak House etc are already serving quality produce. Skilled tech savvy labor and quality raw material will be one solution of this matter.
High Marketing Cost: Successful entrance in the market will require a high cost of marketing for “Lets Go!”. As popular counter parts in Dhaka has already established themselves and lets go is a completely new concept in Dhaka, it will be hard to minimize the marketing cost for a brand new concept like “Lets Go!”. Some of the pointers would be – cost of print and broadcast advertising, design and printing cost of all materials such as boxes for the take-aways , web site development, public relations, cost of any special events which is needed. A good solution to minimize the costs would be approaching “Low Cost High Impact Marketing” which can be done over internet with social networking websites, different forums, groups etc
Consumer Acceptance and Brand Recognition: Consumer acceptance and brand recognition is crucial for Lets Go. As the concepts is based on “sports café” - This brand new concept can make a strong impact on building a different brand than other counterparts in consumer mind. So this can be a positive point to cross the barrier.
Training and Skill: one of the issues regarding “Lets Go!” would be skilled trained labor with technological skill. Other counterparts in the business might be working with skilled set of labors but lets go need tech educated labor as the ambience itself has advanced machineries which need to be operated and maintained. After recruitment training and testing employees is a must task if “Lets Go!” wants to survive in this competitive market.
Unique Technology and Patent: “Lets Go!” will display some unique features so that will introduce some new technologies but as there is no patent issues it’s easier to get in the market.
Unions: In Bangladesh labor union and taxpayer union can have strong impact on any new business entering the market. However, since “Lets Go!” is not a manufacturing business and is not of a large scale, there will be no labor unions involved. We are safe from issues regarding labor unions.
Shipping Cost: At primary perspective any issues regarding shipping cost is not a barrier for “Lets Go!” as it doesn’t home deliver but on secondary perspective any issues regarding shipping cost may impact on raw materials which will impact overall business later on. Moreover, we will also be importing some of our equipments like the projectors and sound systems from abroad.
Changes that re likely to affect “Lets Go!” :
Change in Technology: Technology is a substantial part of uniqueness of “Lets Go!”. Our unique features at every part of Lets Go will give customer a touch of new and fresh experience under one roof. But any change in technology might be negative thing for “Lets Go!” s existence. An example to draw this picture would be star Cineplex and Lets Go. If Star Cineplex offers something new to their theatres such as 3D, screens which might be cost inefficient to have in Lets Go in that case we might lose customers.
Change in Government Regulation: Changes in government regulations can affect lets go in two way if government does flexible changes in the act regarding cafes it will be a positive effect but the trends suggest government has passed tough acts for this industry. Lounges and hangout spots for the youth are frowned upon by the government and face strict rules and regulations in formation and operation.
Change in economy: A sudden change in economy can cause massively in the business. In case of inflation the rising price might cause high cost of raw materials effecting business losing customers and in case of recession the business might not catch up profit.
“Lets Go!” through the eyes of potential customers:
As we’ve already mentioned earlier, the urban youth need and want more places to hang out in their free times. Majority of the hangout places in Dhaka focus on food only. The central focus of “Lets Go!” will be entertainment. The people whose first requirement is entertainment while choosing their locations to visit, they will prefer “Lets Go!” to all other places because this is a place where they can access all sorts of legal and healthy entertainment.
“Lets Go!” will be a choice of the following groups of people because:
1. Sports Enthusiasts - The core focus of “Lets Go!” will be the sports café, equipped with giant screen projectors and high definition sound system. Here people will be able to view matches in a air-conditioned comfortable room with their group of friends.
2. Movie Buffs - People in our region of the world are in general movie buffs. A major portion of their entertainment consists of movies and cinema can be enjoyed the most when viewed in giant screens with digital sound system. Unfortunately, in Bangladesh till today there is not a single movie theatre which screens latest movies which the urban youth prefer. Considering the film industry of Bangladesh, Dhallywood, almost the entire urban youth is inclined towards Hollywood and Bollywood movies but they have to resort to television or DVDs to watch these. “Lets Go!” will be the place where they can watch the movie of their choice in an environment where movies can be enjoyed the most. Instead of downloading the movies and watching them on their computer screens or televisions, people will be able to watch the same latest movies in a mini-theatre of their own.
3. Karaoke Station – This concept is totally new in Bangladesh. The spontaneous and fun-loving people or amateur singers, this will be viewed as a new sort of an entertainment.
4. Bookworms - When there are extroverts like sport enthusiasts and movie buffs in the urban youth, there are some introverts too. These are the people who are entertained by a reading of and a discussion about their favorite book, sipping coffee with good company. The terrace café of “Lets Go!” will be viewed by them as the ultimate place of choice to do so.
5. Romantics - Concepts of going out on dates are getting popular day by day. Be it couples just in a relationship, or married couples people love to go out on dates with their special someone and one of the most common and romantic concept of a date is “dinner and dance”. Unfortunately, that concept has not been applied in Bangladesh as yet. “Lets Go!” will do it. Dates usually restrict to just dinner in
Dhaka. “Lets Go!” will add romance to it through it’s dance floor, where couples not only dine but sway to romantic tunes too.
6. Foodies- There might be people who are neither interested in sports nor in movies. They might be single and just hate reading books. Even these sorts of people would want to try out “Lets Go!” because of our sumptuous menu. Snacks, main courses, mocktails with a twist and desserts- all will be a part of our menu. Even though there are other restaurants serving similar food, once they try out the items served at “Lets Go!” they would want to come back for more.
The table below summarizes the features and benefits of each section of “Lets Go!” :
Section Features Benefits
Sports Lounge1. Latest equipments to
view matches.2. Comfortable seating
for groups3. Complimentary soft
drinks, coffee and popcorn
The fun of watching the match in a giant screen with high quality sound system along with a big crowd. It will give the feeling of watching it live.
Mini-movie theatre 1. Collection of new movies
2. Giant screen and HD sound system
3. Comfortable seating for groups.
4. Complimentary soft drinks, coffee and popcorn.
Customers will be watching the latest movies in the mini movie theatre whereas now to watch new movies people either download them or buy DVDs and watch it at home. The only multiplex in Dhaka screens ancient movies.
Karaoke Station1. Live interactive
singing2. Lyrics on screen
Sheer entertainment. A whiff of fresh air amidst conventional things to do.
Restaurant1. Wide variety of food2. Uncommon
beverages.3. Dance floor
Romantic set up exclusively for couple yet proper decorum will be maintained.
Terrace Café1. Open-air2. Book shelf3. Early morning
breakfast
Calm and quiet ambience to sit back and relax.
Garden Restaurant1. Open-air2. Small water body3. Barbeque facilities
Nature’s surrounding.
Customers:
As mentioned earlier, “Let’s Go!” will mainly target the urban youth, ranging from late teens to early thirties. More specifically, the main segmentation can be done in three ways: income, age and lifestyle.
For the sports lounge our main target customer will be teenagers and young adults from the middle income and high income group, who lead an urban lifestyle.
For the mini movie-theatre our target customer group will be almost same as the sports lounge; urban teenagers and young adults from middle and high income group. The only difference will be in their taste and choice of entertainment and not in demographics.
For the karaoke station however we are targeting the urban teenagers and people in their mid 20s from middle and high income group.
The target customers for the restaurant are the young urban couples from middle and higher income group.
The terrace café mainly targets young adults from middle and higher income group. The segmentation of this section has also been done keeping preferences in mind. Young adults who are living alone and are busy with their work are one of the main focuses for the breakfast.
The garden restaurant targets urban young adults and also families to some extent for barbeque parties.
We specially aim to attract teenagers and university going adults, working young adults since they comprise a large segment of our population. To attract students we will provide them with a special offer- student discounts where they will show their ID card and can get 5% discounts on all purchases. By looking at the results of our market survey, we have defined the following groups as targeted segments. Below are our targeted market segments.
Age – Teenagers, Young adults in their 20s and early 30s Gender - We will equally target both sexes. Income – Middle and high income earners Location – People living in Gulshan, Banani, Baridhara, Uttara, Bashundhara and
nearby. People living in the Southern Dhaka usually study in universities and work in offices located in North Dhaka so they are also potential target customers.
Occupation - Students, self-employed, part-time job holders, regular job-holders. Education – High- school students, university
Age:Teenagers,
Young adults
Gender:Male and Female
Education: High
School, University
Occupation:Students and Job Holders
Income:Middle and
High Income
Location:Dhaka
MARKETSEGMENT
S
Competition:
When it comes to the sports-café, movie-screening room and karaoke competition will be fairly low. Even though similar efforts like a sports café have been made, this many features were not added to any place before. In other lounges and cafes matches are shown on LCD televisions but we will be providing projectors and high quality sound system. And as for the movie room and karaoke, these concepts are brand new to Dhaka. Moreover, since “Let’s Go!” will be located in Gulshan, the affluent crowd here who find it quite difficult to reach Star Cineplex at Panthapath will be willing to pay a whopping amount to watch a movie of their choice at “Let’s Go!”
However, for the restaurant we might face strong competition from popular restaurants like Steak House, El Toro, Spaghetti Jazz and so on but then again our “dinner and dance” facility is an added advantage. The book reading session is also a fairly new concept to Dhaka.
List of Major Competitors for each section of “Let’s Go!”:
Sports Lounge
1. Name: The BenchAddress: House: 80,
Road: 23, Gulshan-1, Dhaka - 1212
The sports lounge of “Let’s Go!” is likely to face some direct competition with “The Bench” as they are the first café in Dhaka to come up with the idea of screening live matches. However, “Let’s Go!” will take it to another level. Matches in “The Bench” are screened in normal LCD televisions that people have in their homes. But in “Let’s Go!” we will be screening matches through giant screen projectors and high definition sound systems. We might also face competition from them in terms of location as they are located nearby our premises in Gulshan. If we are at full capacity, our potential customers might decide to go to “The Bench” instead.
Mini Movie Theatre
1. Name: Star CineplexAddress: Bashundhara City
Panthapath Dhaka
The mini movie theatre of “Let’s Go!” might face direct competition with the only multiplex in Dhaka, Star Cineplex. However, even though it is a proper movie theatre, it screens rather old movies which people have already watched. The concept of “Let’s Go!” is quite different here. Since, ours will be a mini movie theatre which can be booked by a group of people, to watch any latest movie of their choice from our DVD collection, we have a competitive advantage here. Another advantage we will enjoy is in terms of location. The affluent crowd of Gulshan who are ready to pay whopping amount for leisure, will definitely prefer “Let’s Go!” over Star Cineplex because of the distance and traffic jam factor.
Once the Jamuna-Bashundhara future park is ready, we might face similar competition from the multiplex there as well.
Karaoke Station
1. Name: Smoke Music CaféAddress: "Hakam Foundation"
Plot# 98, Block C, Road# 11, Banani, Dhaka- 1213
2. Name: Kozmo Wisdom CaféAddress: Bashundhara R/A
Dhaka
3. Name:Kozmo LoungeAddress: Road 11,
Banani, Dhaka 1213
None of these places are of direct competition to the Karaoke Station of “Let’s Go!” as karaoke is an absolutely new concept in Dhaka. Karaoke is a form of interactive entertainment in which amateur singers sing along with recorded music (and/or a music video) using a microphone and public address system. Lyrics are displayed on a video screen, along with a moving symbol or changing color and/or music video images, to guide the singer. However, the places listed above are cafés that arrange live music gigs. Audience participation may or may not happen depending on the situation. However, we still consider them to be of indirect competition to some extent because some music lovers might prefer to listen to live gigs as they might not be comfortable enough with the whole concept of karaoke.
Restaurant
1. Name: Don GiovanniAddress: House– 22
Road- 123 Gulshan 1 Dhaka - 1212
2. Name: Steak HouseAddress: House- 8
Road- 53 Gulshan 2, Dhaka – 1212
3. Name: SpitfireAddress: NWF - 8,
Gulshan North Avenue Gulshan, Dhaka 1212
4. Name: Spaghetti JazzAddress: Rob Bhobon,
Plot 3 (5th Floor) Gulshan 2, Dhaka- 1212
5. Name: Bella ItaliaAddress:
The restaurants listed above will compete with the restaurant of “Let’s Go!” in terms of menu, as the food items we are offering are similar to some items offered in these restaurants. However, the competitive advantage of “Let’s Go!” lies in the ambience and the set up. The unique feature of “Let’s Go!” will be the dance floor and soft music which will create a romantic environment all along. Therefore, while families might prefer other restaurants, young couples who are our target segment for the restaurant will prefer “Let’s Go!” to other restaurants.
Terrace Café
1. Name: Ajo Café Address: Dhaka Art Centre,
House#60, Road-7A, Dhanmondi Dhaka - 1205
2. Name: Mermaid Gallery CaféAddress: House #9,
Road #9, Baridhara Dhaka - 1212
3. Name: Cofi 11Address: Road 118
Gulshan Dhaka
4. Name: Café ItalianoAddress: Road 11
Banani Dhaka
5. Name: Red ShiftAddress: Bay’s Galleria
Gulshan Dhaka
6. Name: Barista LavazzaAddress: Gulshan 1
Dhaka
Some places from the list will compete with the terrace café of “Let’s Go!” in terms of serving breakfast. They are Café Italiano, Red Shift and Mermaid Gallery Café. Others will give us competition in the ambience end. The environment we are trying to create at the terrace café is somewhat like the terrace of cofi 11. However, our prices are competitive and the book shelf is an added feature
Upon analyzing all the competitors listed above, we have narrowed them down to our two main competitors; “The Bench” in terms of the service we are providing and the restaurants “Don Giovanni” and “Steak House” in terms of the food.
Our comparison with our two main competitors has been summarized in the table below: Importance of each competitive factor to the customer.1 = critical; 5 = not very important.
Factor Me Strength Weakness Competitor A
Competitor B
Importance to Customer
Products Restaurants, Karaoke Station, Sports Lounge Movie theater
Sports Café Restaurant 2
Price Moderate to High
High High 2
Quality High High High 2Service High High High 1Reliability Moderate Moderate Moderate 3Expertise As “Let’s
Go!” is new various expertise might be absent
Highly Expert
Highly Expert
4
Company Reputation
A new company with a completely new concept
Highly
ReputedHighly
Reputed3
Location and Appearance
At Gulshan-Building is designed portraying contemporary architectural style
Gulshan. Our neighbor.
Gulshan. Our neighbor.
1
Sales Method
Cash
Cash Cash 5
Advertising High Volume Advertising through print , electronic media, internet etc
Low Volume Advertising- Print Media,
Internet
Low Volume Advertising- Print Media,
Internet
3
Image New and Innovative
Happening Comfortable and tasty
4
From the analysis, we can state that the SWOT of “Let’s Go!”
Strengths:
Live screening of matches on a giant screen projector, using high definition sound system.
Screening of movies on giant screen projector, using high definition system Collection of latest movies on DVD. Option to book entire room for personal groups. Romantic setup of the restaurant exclusively for couples. Dance floor Karaoke Station which is an absolutely new concept in Bangladesh Founded and planned by business school graduates who have practical knowledge
on planning businesses of these sorts. Located in Gulshan – the central hub of Dhaka. Reasonable pricing Variety of healthy and legal entertainment under one roof.
Weaknesses:
Maintenance cost is extremely high New into the industry Too much variety might get difficult to manage
Opportunities:
Demand for entertainment among the urban youth Sports getting popular day by day Can expand in different areas of Dhaka and later on to different cities in
Bangladesh.
Threats:
Most football matches are aired after midnight but there is a Government regulation against keeping lounges open after midnight.
Regular power cut is a major technological threat in Dhaka. Many lounges and cafés already mushrooming around Dhaka city
Niche
As mentioned earlier, “Let’s Go!” will mainly target the urban youth, ranging from late teens to early thirties. The market niches we have selected are city dwellers, mostly in the northern part of Dhaka. However, the citizens of southern Dhaka are also potential customers. In terms of gender, we will target both genders equally. But for the sports lounge, our market niche is young boys and men.
Below are our targeted market segments.
Age – Teenagers, Young adults in their 20s and early 30s Family Unit – Newly weds, young couples without children Gender - We will equally target both sexes. Income – Middle and high income earners Location – People living in Gulshan, Banani, Baridhara, Uttara, Bashundhara and
nearby. People living in the Southern Dhaka usually study in universities and work in offices located in North Dhaka so they are also potential target customers.
Occupation - Students, self-employed, part-time job holders, regular job-holders. Education – High- school students, university
Marketing Strategy
“Let’s go!” will distinguish itself from other competing firms through its marketing and promotional plan and also through the distinguished service it will provide. Marketing strategies includes the four P’s which are as the following:
Product: All sections of “Let’s go!” will be differentiated from its competitors in some aspect. The sports café and mini movie theatre will be the first of their kind in Dhaka with giant screen projectors and high definition sound system. The mini movie theatre will also have a huge collection of all sorts of new and old movies. Hollywood and Bollywood movies along with Bengali classics will be available. Moreover, there will be a self-service popcorn machine and small-fridge filled with soft-drinks in both projection rooms they will absolutely complimentary. The karaoke station itself is a distinguished product or service that will be offered to the clients. The mocktails like sunrise and sunset are also innovative. The restaurant will be open for service from 7:00AM as all three meals will be served there. There will be a combination of local and continental breakfast. For lunch there will a set menu of Thai, Italian and Continental Cuisine. Dinner on the other hand will be a delicious Italian Ala Carte. Other than that, the café and snacks section will be on service from 10:00AM till 11:30PM on normal days and for as long the match goes on, on days of matches. There will be a wide variety of snacks and beverages available throughout the day. During big matches, there will be custom-made drinks and snacks keeping the theme of the teams in mind. There will be lovers’ special mocktails and desserts in the restaurant section for couples.
Place: It will be located in Gulshan, the central hub of Dhaka city where it will be possible to attract a lot of customers since this area is frequented by all. “Let’s Go!” will be located not on a busy road but rather on a quite road within the hearts of Gulshan. This will ensure that the customers coming to are safe from the hustle bustle of Dhaka City. Moreover, the location we have chosen has an empty-lot right beside the building hence there will be adequate parking space, along with the front-yard of our premises. As parking space is a major problem in most of the hangout joints, having enough parking space will give us an added advantage. When it comes to the design of “Let’s Go!”, the interiors will be done in a contemporary fashion, keeping the comfort and taste of the urban youth in mind. For example, the sports café will have murals of different sports in motion. There will be posters of popular movies in the mini-theatre. The restaurant will be decorated in a way so that the entire environment is romantic. The backyard garden will be adorned with profuse lighting and a water body.
Price- The price charged will not be too high or not too low and competitive pricing strategy will be applied. The price range is as followings:
Sports Lounge – Tk.299 per person
Movie Theatre – Tk.299 per person
Food Items: Breakfast- Tk.110-Tk.260 Snacks- Tk.199-399 Set Meals – Tk.249-Tk.599 Desserts- Tk.49-Tk.149 Beverages – Tk.39- Tk.249
The pricing strategy we have implemented is psychological pricing or price ending. The prices are a “odd number”, little less than a round number. All our rates and prices end with the digit “9”. The aim of psychological pricing is to make the customer believe the product is cheaper than it really is. Pricing in this way is intended to attract customers who are looking for “value” and use emotional rather than rational responses to pricing messages.
Moreover, there will be 5% direct cash discounts available for students, which they can avail upon showing their institute ID card. The first 49 customers of “Let’s Go!”, will be given a special “Early Bird” discount card which they can use to avail 5% cash discount on their next 5 visits. Some time after our operation begins, we will try to tie up with any popular mobile operator for a particular season for their subscribers to be eligible for special cash discounts at “Let’s Go!”.
This pricing strategy is in sync with our competitors. We will be on the same level as them. Since, price is an important factor for our target market, we have tried to remain competitive in terms of price.
Promotion: The promotional activities of “Let’s Go!” will begin from the day we start renovating the house we have rented. While the renovation is going on, the covers used to protect the construction material will have the logo of “Let’s Go!” imprinted on them. Moreover, the workers will also be wearing t-shirts with the logo of “Let’s Go!”. This will position us in the minds of potential customers even before our premises are ready. People will know that something called “Let’s Go!” is about to open and will be curious on knowing what it actually is. Some people might even Google us. That is when they are going to be introduced to our website and facebook page, which will have interesting
welcome messages like “coming soon”, “hold your breath”, “ready to get charged up?” and so on. Upon the response of potential customers, we will take the next step toward our before launching promotion. Once we are halfway through the renovation, we will disclose the features of “Let’s Go!” through our website and facebook page. We will also upload graphical images of our interiors to collect feedback from potential customers. The first 99 “likes” we receive on our facebook page will be sent a special message and they will receive a 7% cash discount upon showing that message. Promoting via social networking sites will have a wide coverage and will also be free of cost. Besides all these, we will also follow the conventional techniques of advertising, the first one being newspaper. Colorful advertisement will be published in popular newspapers like The Daily Star and Prothom Alo a few weeks before opening. Flyers will also be given with the newspapers in each and every household of the neighborhood. Advertisement will also be published in popular youth magazines like Star Campus and Ice Today. Posters will be put up in front of schools and universities. The Grand Opening of “Let’s Go!” will be done by a popular celebrity but who that will be will be decided later. However, we have thought of inviting celebrities from all fields in the Grand Opening. Especially popular singers, models and most importantly Bangladesh Cricket Team to open the sports café. With the increasing fame and fortune of the tigers, this will be a great promotion for “Let’s Go!”. We will video record the entire opening ceremony and make an audio visual commercial out of it to air on local DVD channels of Gulshan, Banani, Baridhara and nearby. This will also spread the word fast. Another promotional activity we will conduct is monthly raffle draw. But the twist lies in the prize. We will not give out cash or gift vouchers or materialistic gift. Every month 5 lucky winners will get a personally autographed poster of their favorite cricketer from the Bangladesh Cricket Team. Other than all these, word of mouth is an effective way of promoting “Let’s Go!”
List of Promotional activities and methods of advertising:
1. Pre-opening promotion: Construction workers will be wearing t-shirts with the logo of “Let’s Go!” imprinted on it. Once the shell of the building is done, large banners will be mounted announcing that something is opening soon. Facebook page and website will also be built. The first 99 people to like the page will be given cash discounts on their first purchase.
2. Grand Opening: The grand opening ceremony will be attended by celebrities from different fields.
3. Brochures and Handouts: Inside will be all the important details of “Let’s Go!”. We will explain our menu, prices, hours of operation, method of service, and provide a locator map.
4. Newspaper: We will create several different size ads, generic in nature, to be used for “Let’s Go!”.
5. Radio: We will create one short, humorous, music-based radio commercial, in both a 30- and a 60-second spot. Both commercials will have a 10-second blank bed where we can mention something specific about “Let’s Go!”.
6. Local cable operator DVD Channel: We will create a 60- second audio visual commercial out of the video of the opening ceremony and also the video of the premises. This will be aired on local cable operator Prisma Cable and Fairway Cable’s DVD channels.
7. Point of Purchase: Cash discounts for student, early birds and so on will be given. There will also be a monthly raffle draw between all customers and 5 lucky winners will receive an autographed poster of their favorite cricketer from the Bangladesh Cricket Team.
Promotional Budget (Startup)
Item Amount (Tk.)T-shirts for construction workers (150*25) 3750Banners (6*750) 4500Website designing 7000Newspaper Ad 15000Flyers, Brochures, Posters 16000Local Cable Operator Ad 10000Radio Ad 60000Grand Opening Ceremony 450000Total 576,250
Promotional Budget (Ongoing per month)
Item Amount ((Tk.)Posters 2500Magazine Ad 10000Flyers 4500Total 17000
Distribution Channel
Since, “Let’s Go!” is a service business, there is no distribution channel as such. We will be conducting all our operation inside our premises.
Let’s Go! Customers
Sales Forecast
Sales Forecast (12 Months)
Let's Go!
Fiscal Year Begins Jun-12
12-month Sales Forecast
Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13Sports Section 420 390 450 590 450 480 585 650 540 500 600 680Sale price @ unit 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00Cat 1 TOTAL 146,580 136,110 157,050 205,910 157,050 167,520 204,165 226,850 188,460 174,500 209,400 237,320
Movie Theater 220 260 290 350 400 370 420 550 500 450 375 420Sale price @ unit 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00 349.00Cat 2 TOTAL 76,780 90,740 101,210 122,150 139,600 129,130 146,580 191,950 174,500 157,050 130,875 146,580
Karaoke Room 75 95 120 140 180 100 120 150 170 180 165 175Sale price @ unit 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00 99.00Cat 3 TOTAL 7,425 9,405 11,880 13,860 17,820 9,900 11,880 14,850 16,830 17,820 16,335 17,325 Restaurant/Dance Floor 350 420 450 530 480 495 580 650 720 700 850 800Sale price @ unit 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00 750.00Cat 4 TOTAL 262,500 315,000 337,500 397,500 360,000 371,250 435,000 487,500 540,000 525,000 637,500 600,000
Terrace Café 50 65 70 85 75 90 60 40 70 85 64 95Sale price @ unit 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00Cat 5 TOTAL 10,000 13,000 14,000 17,000 15,000 18,000 12,000 8,000 14,000 17,000 12,800 19,000
Backyard BBQ 275 360 450 480 Sale price @ unit 950.00 950.00 950.00 950.00 950.00 950.00 950.00 950.00 950.00 950.00 950.00 950.00Cat 6 TOTAL 0 0 0 0 0 261,250 342,000 427,500 456,000 0 0 0 Monthly totals: All Categories 503,285 564,255 621,640 756,420 689,470 957,050 1,151,625 1,356,650 1,389,790 891,370 1,006,910 1,020,225
Total Annual Sales
Sports Section Annual TotalsSale price @ unit 6,335Cat 1 TOTAL
2,210,915Movie Theater
Sale price @ unit 4605Cat 2 TOTAL
1,607,145Karaoke Room
Sale price @ unit 1,670Cat 3 TOTAL
1,65,330Restaurant/Dance Floor
Sale price @ unit 7025Cat 4 TOTAL
5,268,750Terrace Café
Sale price @ unit 849Cat 5 TOTAL
1,69,800Backyard BBQ
Sale price @ unit 1,565Cat 6 TOTAL
1,486,750
Totals: All Categories 10908690
Operational Plan
Operational Plan
The operations team will be headed by one of the business partners Muniyat Fabbiha and Abrar Shahriyar Mridha. Najif Nowfal Nawaz and Shadman Sahir Ahmed will act as consultants lending their opinions when required.
Daily Operation:
The terrace café will be open from 7:00AM till midnight. The cleaners will come by 6:00AM to clean the café and kitchen and get things set for the day’s operation. Perishable items like milk and fresh produce will be sent by our suppliers by 6:30AM. However, arrangements for breakfast will start as soon as the kitchen is cleaned. While breakfast is going on, the kitchen staff will start preparing for, snacks and mocktails. Since snacks will be served from 10:00AM till midnight, it requires extensive preparation. Hence, as soon as the produce arrives, some of our kitchen staff will start processing them for making the snacks on our menu. The sports café and mini movie theatre will be open for customers from 10:30 AM. Hence, the cleaning staff will start cleaning the rooms by 9:30 AM. The technicians will start setting up the projectors and sound systems from 9:30AM as well so that we have sufficient time to deal with any unforeseen technical difficulty. However, since most champions league matches are aired after midnight in Bangladesh, the sports café is likely to face most customers during that time.Preparation for lunch will have to begin by 11:00AM because lunch starts at 12:00 noon. However, since the variety of lunch is not that wide, it does not require extensive preparation.Dinner at “Let’s Go!” is a sumptuous ala carte and will require extensive preparations. We are expecting some free time at the kitchen between 3:00PM-5:00PM, so this is the time we will use to start preparing for dinner.All desserts served at “Let’s Go!” will be freshly baked inside our kitchen along with the snacks.The Karaoke station will open at 6:00PM in the evening so the technicians will start setting up everything from 5:00PM to avoid delays due to any unexpected technical difficulty.
Different sections of “Let’s Go!” and their operating hours:
Section TimingTerrace Café 7:30AM - MidnightSports Café 11:00AM- Midnight (time will be extended
as per match schedule)Mini movie theatre 11:00AM-10:00PM
Restaurant 12:30PM-MidnightGarden Restaurant 12:30PM - MidnightKaraoke Station 6:00PM - Midnight
Summary of who will do what daily:
Activity Done byCleaning the premises, spraying pesticides Cleaning staff
Receiving produce from the supplier Kitchen ManagerPreparation of different meals Kitchen Staff
Setting up projection equipments TechniciansCooking Chef
Managing cash CashierSupervising all the staff, checking inventory of perishable food items.
One of the owners
Weekly Operation:
The following operational tasks will be done every week:
1. Inventory checking of non-perishable food items.2. Ordering the diminishing products.3. Checking and ordering for new DVDs.4. Trimming the plants in the garden and cleaning the water body.
Human Resources:
At “Let’s Go!” we will require both skilled and unskilled labor along with professionals. Skilled labor will be required in the form of expert chef to take care of all the cooking, technicians to run the projection equipments and karaoke machines. Waiters or servers need to skilled as well. However, unskilled labor consists of cleaners and gardeners. We will also require two cashiers, each being in charge of a floor.
Here is a list of number of employees we require for each task:
Type of Employee NumberWaiters 12
Bartender 1Chef 3
Kitchen Manager 1Chef’s Assistant 5Cleaning Staff 6
Cashier 2Security Guard 2
Technicians 3Total 35
To find kitchen staff like chef and chef’s assistant, we will advertise in the newspapers, interview them, taste their cooking and then appoint them. The waiters will be recruited via hotel management training institutes. Cleaning staff and security guards will be hired from agencies. For cashiers and technicians we will also advertise in the newspaper and also look for these posts in our networks of known people.
The pay structure of the staff is as follows:
Type of Employee Number Salary (Tk.) Total Salary (Tk.)
Waiters 12 8000 96000Bartender 1 10000 10000
Chef 3 35000 105000Kitchen Manager 1 15000 15000Chef’s Assistant 5 12000 60000Cleaning Staff 6 4000 24000
Cashier 2 10000 20000Security Guard 2 5000 10000
Technicians 3 12000 36000Total 35 376000
The work of each employee will be evaluated from time to time.
Evaluating Process
Let’s go! Evaluating process includes the following elements:
Customers will be asked to name and rate their server on the survey card provided to each table. This will not be seen by the server directly. Customers will drop it into a box as they leave. These cards are dated so that the experience can also be tied to that night's kitchen staff.
Owners will review the survey cards each night and flag any unsatisfactory remarks for discussion with the server and kitchen staff. They will review how to handle the situation in the future.
Three problems with the same server in one month period will call for discussion with the manager and then a period of supervision to determine how to rectify the situation. Servers who don't have their heart in it will generally quit rather than being subject to observation of this type. Servers who are eager to improve will accept feedback, and managers will be able to spot specific areas they can improve from this observation period.
Servers and kitchen staff with consistently excellent results will be rewarded with a monthly bonus, as well as consideration for promotion from within as positions open.
Inventory and Suppliers:
Since, “Let’s Go!” is a hangout place, the inventory will mainly consist of the raw materials and supplies to produce the food items. Poultry, meat, grains, dairy products and vegetables are what mainly our inventory consists of. The perishable produce like dairy products and vegetables will be brought in everyday from our regular supplier. The stocks of non-perishable food items like grains and frozen poultry and meat will be replenished every week.
The supplier of our groceries will be “Kazi Traders” at Gulshan 1 DCC market. Since it is located nearby we can get the products at the lowest possible transport cost. Bulk-buying from them will also give us significant cash discounts. We will sign a contract with them where they will be informed what we need to replenish in our stock and they will just send it. Accounts will be settled with them every month.
Fresh produce will come from a local vegetable vendor at Gulshan 1 DCC market as well. However, these items will be purchased daily under surveillance of our kitchen manager, in order to ensure quality.
Legal Environment
The very first thing “Let’s Go!” will need to get into business is a trade license. According to City Corporation Taxation Rules, 1983 is applicable for the Trade License Rules:
MANNER OF LEVYING TAXES ON PROFESSIONS, TRADES AND CALLINGS
Rule 42. Tax on professions, trades and callings
In levying tax on the profession, trade and calling, a City Corporation shall be guided by the City Corporation Model Tax Schedules, 1985, hereinafter referred to as the Model Tax Schedules.
Rule 43. Liability on account of obtaining licence to carry on profession, trade and calling
(1) No person shall carry on or maintain within the local limits of the City Corporation, either by himself or by agent, any such profession, trade or calling as specified in the Model Tax Schedules, without taking out a licence from the City Corporation which shall be renewable annually :
Provide that the grant of such a licence by the City Corporation shall not be deemed to affect the liability of the licence to take out a separate licence under any other provisions of these rules or by-laws under the Ordinance for the time being in force.
(2) Notwithstanding anything contained in sub-rule (1), the City Corporation may -
(a)when any person is, in the opinion of the City Corporation, unable to pay the tax due for a licence, exempt him from the liability to take out such licence, or declare that he shall be entitled to take out a licence under a lower class than that under which he is chargeable according to the Model Tax Schedules ; or (b)in any other case, exempt any person from liability to take out a licence or declare that any person shall be entitled to take out a licence under a lower class than before.
The Whole Procedure of Filling a Trade License is given below:
Rule 44. Manner of filling application for licence
(1) Any person required to take out a licence under rule 43 shall file an application to the City Corporation in Form 'I', 'J' or 'K' in accordance with the nature of profession trade or
calling, that he carries on or intends to carry on and such Form may be had from the office of the City Corporation on payment of such price as may be fixed by the City Corporation with the prior approval of the government.
(2) For the purpose of considering the application submitted under sub-rule (1), an officer authorized by the Mayor may make such inquiry as may be deemed necessary and may also, by notice, call upon the applicant to furnish such information, records or accounts as may be necessary for the purpose of considering the application and determining tax.
(3) On the recommendation of the authorized officer, the City Corporation shall issue a licence in Form 'L', 'M' or 'N' in accordance with the nature of profession, trade or calling on payment of such amount of tax as may be determined by the City Corporation, but not exceeding the rate of tax specified in the Model Tax Schedules :
Provided that no licence shall be granted unless the City Corporation, on the recommendation of the authorized officer, is satisfied that the proposed trade to be carried on in the locality shall not be dangerous or offensive or to be or likely to be, nuisance to public, or dangerous to life, health or property of the area.
(4) A licence shall be issued exclusively in the name of the licence and such licence is not transferable.
(5) The licence issued shall contain the amount paid, the nature of profession, trade or calling for which it is granted along with location and duration and it shall be deemed to be properly signed if it bears facsimile of the signature of the Mayor stamped thereupon and the signature of the person delivering the licence at the time of receiving payment.
(6) The licence issued by the City Corporation shall remain valid for the financial year and it is renewable annually on payment of the tax.
Provided that, on the expiry of the validity of the licence, the licence shall make an application in Form 'O' within three months of its expiry, deposit in the account of the City Corporation the annual tax payable for the current financial year, and, on production of the existing licence, the City Corporation shall renew the licence for another year ;
Provided further that, if any licensee fails to get his licence renewed within the specified time, the City Corporation may impose a surcharge at the rate of 15 percent of the tax defaulted, but in exceptional cases the City Corporation may exempt any licensee partly or wholly from the payment of surcharge.
(7) The licensee shall not use the licence for any other purposes, except for the purpose and nature of profession, trade or calling it was issued.
(8) The condition, if any, under which a licence is issued, shall be clearly written on the
licence.
(9) After issuance of licence, if it is detected that any wrong declaration was furnished in the application form, or the terms and conditions under which it was issued are violated, the licence shall be liable to cancellation and the licensee shall be liable to penal action under the Ordinance :
Provided that No licence shall be cancelled or penal action shall be taken unless the licensee has been given a reasonable opportunity of showing cause.
Rule45. Postponement of realization of the tax on account of suspension Notwithstanding anything contained in this chapter, the City Corporation may postpone realization of any tax due to it, on account of any profession, trade or calling remains * suspended for more than six months ; in such case, the licensee shall be entitled to a remission to the extent of one-half of the amount due on account of such period :
Provided that -(a)the licensee liable to pay the tax of his agent has given notice in writing about the suspension of the profession, trade or calling to the City Corporation, and(b)the amount of tax to be remitted in respect of such suspension period shall not be calculated from any date prior to the date of delivery of such notice.
Rule 46. Particulars of license (1) Subject to the provisions of rule 43, every licence issued under this chapter shall contain the following further particulars, namely :-
a) the serial number, the date of issue and the name of person or persons to whom it is issued ;b) the nature of the profession, trade or calling in respect of which it is issued ;c) the place or places (=location) where the profession, trade or calling is permitted to be carried on ;d) the amount of tax realized from the profession, trade or calling;e) if the licence is issued in the name of a registered company, the registered name of the company, the address of its registered office, the name and address of the Managing Director and the amount of its authorized capital ;f) if the licence is issued in the name of a firm, the name of the firm, the address of its registered office, the name and address of the Managing Partner and the capital of the business ; andg) validity period.
(2) The Corporation shall maintain separate registers for the licenses issued in respect of profession, trade or calling and the said registers shall contain detail* particulars of the licence, licensee and the amount of tax realized.
Rule 47. Requisition on the owner of house to furnish statement of persons liable to tax. - The City Corporation may, by notice, require all or any owner of any premises or building to furnish the City Corporation with a list of persons carrying on, or reasonably believed to have been carrying on, any profession, trade or calling specifying the nature of the profession, trade or calling and the period during which such profession, trade or calling is being carried on.
Rule 48. Power to change the name of the license-holder on account of transfer. - The Mayor or any other authorized by him in this behalf may, on the application made to him, pass necessary order for alteration or amendment of the name of any license-holder of trade by substituting the name of the person succeeded* by transfer or otherwise.
The Mayor or any other authorized by him in this behalf may, on the application made to him, pass necessary order for alteration or amendment of the name of any license-holder of trade by substituting the name of the person succeeded* by transfer or otherwise.
Condition for obtaining a trade license
Following are the conditions for obtaining a new Trade Licence
1. Incase of general Trade Licence - Attested Copy of Rent Receipt or Rental Agreement and also the copy of the Holding Tax payment receipt
2. Incase of Trade licence for industries - Everything mentioned in sl. no. 1 plus:
No objection declaration on the surrounding Location Map, Copy of fire certificate Declaration on non judicial stamp of Tk. 150/- to abide by the rules & regulation
of DCC, One copy of passport size photograph
3. In case of Clinic/Private Hospital: permission from the Director General of Health. 4. In case of Limited Company :
Memorandum of Article Certificate of In-Corporation Certificate of In-Corporation
5. In case of Printing Press & Residential Hotel - Permission from Deputy Commissioner (DC). 6. Incase of Recruitment Agency - License from Manpower Man-power export Bureau 7. Incase of Arms and Ammunition - Copy of Arms License
8. Incase of Drug and Narcotics - Copy of Drug/Narcotics License 9. Incase of Travailing Agency - Approval from civil aviation authority
Renewal of trade license
Formalities
· Contact concerned zonal Taxation office along-with the previous Trade License · Concerned staff of the zonal taxation office will provide a new Trade License · Fees: Fees for trade licence renewal is same as applicable for a new Trade Licence, which has to be deposited at any Bank indicated on the Trade License.
The Other license needed by Lets Go is described below:
License Name: Fire License (According to “Agni protirodh and nirbapok ayn-2003”)
Licensing Body: Fire Service and Civil Defence (FS&CD)
Contact: With the concerned desk officer
Contact Office: Siddiquebazar Fire Station, Dhaka.
Tel: +88-02-9555555
Licensing Details:
Documents needed to submit to inspector. It can take up to 6 weeks.
License Name: Tax Identification Number (TIN) (According to the Income Tax Ordinance 1984)
Licensing Body: National Board of Revenue (NBR)
Contact: With the concerned Circle officer (as there are various Circles)
Contact Office:
Concerned TAX Circles of your business location. (Dhaka , Chitttagong, Rajshahi, Khulna Zone etc)
Licensing Details:
License Fee: 1000Tk.
Renewal Process: The whole application is done online. Scanned copies of necessary document can be attached. It can take up to 4 weeks.
License Name: VAT Registration (According to the Value Added Tax Act Law 1991- Act No 22)This law is related to imposition of Value Added Tax (VAT) on goods and services at import stage, manufacturing, wholesale and retails levels across Bangladesh.
Licensing Body: National Board of Revenue (NBR)
Bangladesh has enacted the Trade Marks Act at 2008, which allows for the registration of service marks. Bangladesh Intellectual Property Right Office i.e. Department of Patents, Designs and Trade Marks (Trademarks Registering Wing) follow the INTERNATIONAL CLASSIFICATION OF GOODS AND SERVICES under the Nice Agreement (Ninth Edition). The registration of Service Marks System has been included in our present Trade Marks Act, 2009 vide S. R. O. No.211-Law/2008 dated June 30, 2008, w.e.f July 01, 2008. Now any person claiming to be the proprietor of a service mark can file application for registration of any service mark under class-35 to 45So. Let’s Go will need the following documents to file for a trade mark/service mark:
REQUIRED DOCUMENTS:For filing of Trade Mark application in Bangladesh the following documents/information will be required :- (a) Description of the TRADEMARK and if it is a Logo/Device mark then 15 (fifteen) copies Label /logo for each of the application. (b) Full Name, Street Address and Nationality of the applicant(s). (c) Description of goods or service for which the mark is to be registered. (d) The date of use of the Trademark in Bangladesh (if any), it may be used or proposed to be used also. (e) A duly executed Power of Attorney (Form TM-48). After filing of the application for registration of Trade Mark/Service Mark, it will take two to six month for obtaining examination report.
Insurance:
Insurance is a system of spreading the risk of one to the shoulders of many. It is a contract whereby the insurers, on receipt of a consideration known as premium, agree to indemnify the insured against losses arising out of certain specified unforeseen contingencies or perils insured against. Although insurance can be purchased to cover virtually every aspect of the business also it can be a complex subject, with many internal variables that need to be examined before a wise decision can be made. And on the other hand it is not just a form of protection against personal liability also this expense (as insurance is considered as expense) is a tax deductible expense. Our Insurance broker (deals for business purpose with the insurance company, who offered better deal in respect of their service and premiums etc) has advised Sadharan Bima Corporation.
As this general insurance company (public) best suits our need of insurance:
Company: Sadharan Bima Corporation
Address: 33, Dilkusha
Dhaka
Management
And
Organization
Management and Organization
The initial management team depends on the founders themselves, with little back-up. As we grow, we will take on additional help in certain key areas. Part of our basic philosophy will be to run our executive management "lean and mean." We will not add additional overhead until absolutely necessary. This will mean that the initial staff support team will have to "wear many hats," so to speak. By doing this, we will keep our overhead as low as possible, allowing us to adequately staff our restaurants. This will also allow our business partners to recoup their initial investments as quickly as possible and enjoy a higher return.
Thus the management and HR team would be headed by Muniyat Fabbiha. Since, she is a business school graduate majoring in HR, she would know the details of dealing with HR activities. Najif Nowfal Nawaz and Abrar Shahriyar Mridha would act as consultants lending their opinion when required. The job of the management and HR team would be to ensure that the management side of the organization runs smoothly. This team would be heavily involved in making all the decisions required for planning for the needs of the organization in terms of the staff required, hiring employees, motivating employees, evaluating their performance, dealing with their compensation and benefit plans and planning, organizing, directing and controlling the overall organization. The head of HR should be always monitoring the work of the employees, for the restaurant making sure that their behavior is friendly with the customer, for example that they greet the customer with a smile and say thank you after taking the orders. It must be ensure by the head of this team that the workers are always neat and clean since this is a food based service, the cleanliness of the workers and the environment is of utmost importance since that way they will be able to ensure high quality of the food.
Shadman Sahir Ahmed will be in charge of checking and controlling the inventory of perishable and non-perishable items. Sine he is one of the founders, he will be absolutely honest in all purchases and ensure that all the items purchased are of best quality in an economic price. It will be his duty to check inventory every day, consult the kitchen staff and list down what needs to be replenished when. Shadman will also be dealing with the suppliers, contacting them, placing orders and paying them from time to time.
Najif Nowfal Nawaz, a business school graduate with a major in Marketing, will be taking care of all the promotional and public relation activities. He is in charge of designing the whole promotional campaign, contacting all the media we have chosen for
advertising, updating the website and facebook page. Najif will also be taking care of the public relation activities as he will be using his networks to invite all the celebrities for the Grand Opening and other promotional activities from time to time. Muniyat Fabbiha will be assisting him in contacting the Bangladesh Cricket Team for the opening of the sports café and getting the posters signed by them for giving out as prizes of the raffle draw.
Abrar Shahriyar Mridha and Abrarur Rahman, business school graduates with major in Finance and Accounting will be dealing with the major finances of the business. They will be keeping accounts of start-up expenses and also the cash required for operations. They will also be cross checking the daily revenue with cashier. Deposit and withdrawal of cash from the business bank account will also be done by them. However, to withdraw any cash from the bank account of “Let’s Go!” approval from all business partners need to be taken. All 6 partners must be notified of all major cash transactions. Abrar and Abrar will also be in charge of preparing month statements and forwarding them to the other 4 founders.
Professional and Advisory Support:
Here is the list of all organizations and firms whose professional support we will require for starting up “Let’s Go!” and it’s day to day operations.
1. Architect for renovation of the premises:“Riddhi Architects” 7th Floor, Eastern Plaza Hatirpool Dhaka.
2. Purchase of kitchen equipments:“Top1 Trading” Kawran Bazar Dhaka
3. Bank:“Eastern Bank Limited”Gulshan BranchDhaka
4. Recruitment of kitchen staff, waiters and cleaning staff:“Seagull Institute of Hotel Management” 155, Shantinagar Dhaka
5. Brochures and leaflet“Funkfinity Studios”
Financial Plan
