Taste of India: Finest Asian cuisine

Executive Summary:

Taste of India is a new medium sized reastraunt located in East London. Its emphasis would be on organic and ethnic Indian food. An emphasis on organic food is based on our core values and commitment towards social welfare. Its staff would be the experienced and professionally trained chefs from India. Every effort has been made to set up the business adhering to the strictest environmental norms and hygiene requirements.

The following plan is set out to provide, the key stake holders and business partners, an insight into the business venture.

The Venture

With a classy, relaxing and an energetic ambience; menu ranging from the erstwhile Moghalai dishes to the Savory South Indian recepies; choicest cocktails, inhouse music and Valet Parking, the restraunt is set to offer something to anyone looking at having a good time.

Market Segmentation

With the growth trend towards 'specialty restaurant', Taste of India believes that it has a strong market. Its main target audience will be rich Asians who naturally desire organic foods as well as ethnic cuisine, estimated to be more than 635,000 (DMAG, Census Update,2006) in numbers. The second group that will be targeted are the young nuclear families with double income. The third group which is particularly interested in the menu's healthy offerings is dieting women. Finally, the growing British community having a liking for Asian food.

There are two main factors based on which we expect our initiative to succeed. Firstly, a huge demand for speciality restraunt business in the area. With a large percentage of Asian community, there is a huge market potential for quality Asian food. Secondly, the strengthening economic triggers (HM Treasury, 2009). With London's restraunt business set to post growth rates in 2010 and with the consumer spending expected to grow over the next two quarters, the timing of our initiative could'nt have been better.

Business Strategy:

All business decisions have been made keeping the fundamentals in mind, mostly so the 4Ps of marketing (Lilien, GL., Kotler, P., Moorthy, KS.,1992).

Product

Taste of India very large sized offering both buffet and ala carte. A collection of ethnic Asian food awaits with a common theme - healthy, flavorful and familiar. We presently do not have a bar, but plan to open it next year.

Place

Taste of India is located in Green Street; the most commercial, lively and happening of the places in East London. It has a huge Asian community in the surrounding areas. The residential areas are only a stone's throw away, making the restaurant accesible to everyone. All our suppliers are within a radius of 1 mile. This would mean better inventory management, shorter waiting times and fresh raw materials. There are a lot of medium sized office set ups around, providing an opportunity to tap the professional catering segment.

Price

All our offerings are fairly priced, considering the highest quality standards that we maintain. We offer a lot of complimentary packages and have recently included the "One Pound" menu. As a guide, a 5 course ala carte meal for 2 would cost around 20 pounds.

Promotion

With a significant amount of start up capital set aside for promotion and innovative Brand awareness strategies, we hope to create a impact very early, mostly relying on the print media. We have entered into agreements with leading retail outlets to issue discount coupons for customers making significant amount of purchases in a calendar month. We have also conducted a number of road shows across busy commercial centres in East London.

Objectives:

We aim to run business on our following objectives. Every major business decision would be made with the following objectives in mind:

  1. Strive to be amongst the best speciality restraunts in the area.
  2. Break even within 12 months of inception.
  3. Achieve top lines of ? 1,000,000 in the first year with a profit margin of 40%.
  4. Maintain 20% annual growth rates over the next 3 years, improving the profit margin by 10%.

Mission:

Taste of India is a fine speciality restaurant offering the most cost effective, tasty and quality Indian food that is very nourishing. Its an eco friendly initiative, confirming to strict environmental norms. It strives for Ultimate service, consistent quality and positive impact; while being profitable to its owners and rewarding for its employees.

Ownership:

Taste of India is legally registered as a Sole proprietorship, private entity limited by guarantee. It will be solely owned by [Ype your name]. [Type your name] will also manage the unit and will be solely responsible for financial and employee management.

Management:

Taste of India is set up with a working staff of 26 full time employess.

[Type you name] will be the General Manager. With an MBA from London College Of Business, and extensive working knowledge of the catering industry, he would provide the leadership under which Taste of india is to flourish. He would be reported to by the heads of Marketing, Personnel, Finance and Production desks. Detailed references to individaul staff is available, upon request, to the stake holders.

Financials

  1. Initial Outlay:
  2. As outlined below, the business is set up with a planned investment of £ 1,75,550; funded from the propreitory investment of £ 1,00,000 and rest through a secured business loan from British India bank PLC.

  3. Projected Profit and Loss
  4. We have done a thorough opportunity assesment and market research based on which the financial projections are made. These projects are made under following assumptions:

    1. The economy stays stable.
    2. Consumer spending increases by 10% each year.
    3. Inflation rate would be 5% over the forecasted period.
    4. Tax rates remain the same.

  5. Projected Cash Flows:
  6. We aim to manage our collections on a daily basis. As the following projections suggest, we are self sustaining and hence can manage our treasuries even in periods of low turnover, without seeking external credit. As with any cash flow projections, the following is based on assumptions for Inventory turnover, Accounts Payable & Recievable, payment periods, amongst others. Our cash flows project the aggressive plans that we lay for ourselves, investing extensively in business expansion.

  7. Projected Balance Sheet
  8. Our projected figures reflect the strong belief in our business opporttunity. We expect to post a positive networth straight in the year of inception and grow at compounding rates thereafter. There should be no difficulties in honoring our debt obligations and our business expansion plans.

  9. Break Even Analysis
  10. The business would break even in the first year of inceptipn.

SWOT Analysis:

Strengths:

  • Highly competent Personnel
  • Good networks with professional caterers.
  • Good networks with local suppliers
  • Lucrative credit terms with banks.
  • Wide range of Asian Cuisine on menu.

Weaknesses:

  • New set up with little brand recognition.
  • Limited back up funding in case of emergencies.

Opportunities:

  • A growing speciality restraunt business in vicinity.
  • A large base of wealthy Asian community in the area.
  • Indian Cuisine growing in the English community.
  • Extremely lucrative and untapped business opportunities with corporate clients.

Threats:

  • Fierce competion.
  • Presence of establish brands in the targetted market segment.
  • Legal restrictions and costs involved in hiring skilled Indian Chefs.

Long-Term Development & Exit Plan

No well planned business initiative is set up with even if it has the slightest probability of a failure. In the unforeseen circumstances of Taste of India not doing well, we would try to find a buyer and integrate. All efforts would be made to transfer the obligations and employees as an ongoing concern. If unsucceful of making a decent deal, the setup would be liquidated and proceeds would be used to honor any outstanding liabilities in the order of their preferences. Any surplus would be credited to the promoter. If the proceeds do not suffice to clear the debtors, the promoter would be personally responsible to the extent of his guarantee.

Bibliography:

  • Greater London Authority, 2009. Census Update. [pdf] London: Department of Health.Available at: http://www.london.gov.uk/gla/publications/factsandfigures/dmag-update-2006-09.pdf [Accessed 10 Nov 2009].
  • HM Treasury, 2009. Forecasts for the UK economy. [pdf] London: HM Treasury.Available at: http://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_085307 [Accessed 10 Nov 2009].
  • Lilien, GL, Kotler, P., Moorthy, KS. "Marketing Models", 1992. Prentice-Hall International. Englewood Cliffs NJ

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