First year operations will produce a net profit before tax of 34. 77 lakh rupees. This will be generated from an investment of 6 crore in initial capital. Expansion plans will follow in the financial year 2012. Owner’s funding and internally generated cash flow will enable another “huddle” restaurant open. Sales projections for the next twelve quarters are based upon the calculations given to us by ‘The Italia’ . Site surveys will be done and prime locations will be targeted for restaurant expansion. This plan will result in sales revenues growing to Rs. 3. 78 crore by Financial Year 2012 and generating profit after tax of Rs. 60 lakh.
A rapid growth potential has been recognized by the management through the quick success and fast return-on-investment from the first location. Payback of total invested capital on the first location will be realized in less than 2 years of operation. Cash flow becomes positive from operations in second quarter and profits are substantial in the first year. ‘Huddle’ will be a successful restaurant unit featuring a variety of boldly flavored, made-to-order menu items. Our restaurant will create an inviting environment that includes good-subtle interiors, and excellent music via a self prepared playlist, which appeals to everyone.
Our concept offers elements of a casual all day diner, featuring a flexible service model that allows our guests to choose among convenient dining options such as quick casual counter service, casual dining table service or take-out. The Customer coming over for the first time is no big-a-deal, really.. It’s making him come back for the second time that matters the most to us. We want to establish our brand through coordinated marketing and operational execution that ensures brand recognition and the quality and consistency of our concept. These efforts include marketing and promotional programs to support our restaurant.
Our concept is further strengthened by our emphasis on operational excellence supported by stringent operating guidelines and comprehensive employee training. 1. 1Objectives ‘Huddle’ has the objective of initially opening a single location at Greater Kailash-1, M Block market. Our objective is to introduce a restaurant in that locality because of its prime location, it is one of the central locations of South Delhi and mainly catering to people who visit the market and get hold of them by our unique restaurant serving an exotic variety of food and mesmerising ambience. 1. 2Mission Statement The mission is to have great tasting food along with efficient and friendly service because customer satisfaction is paramount. ? Employee welfare will be equally important to our success. Everyone will be treated fairly and with the utmost respect. ? We will combine menu variety, atmosphere, ambiance and a friendly staff to create a sense of ‘place’ in order to reach our goal of overall value in the dining/entertainment experience. ? To ensure that each guest receives prompt, professional, friendly and courteous service, to maintain a clean, comfortable well maintained premises for our guests. To thank each guest for the opportunity to serve them.
1. 3Key Factor’s to Success Our Logo which shows a group of people standing shoulder by shoulder signifies Warmth and Togetherness . That’s how we decided on our Tagline: ……….. Let’s get together ? Our restaurant would be ‘A place of ‘Togetherness’: Sharing good times together. ? It will definitely be a place to share experiences and moments with near and dear ones. ? A place to rejuvenate and relax ? Our interiors would have Subtle Branding in the form of colours :Orange & Black,
• Orange signifies Cheerfulness, Brightness. Gives vibes of friendship, fun, Energy ,Zest and Enthusiasm. • Black denotes Sophistication, Boldness & Uniqueness. ? Through excellent Ambience and feel we would try to get hold of customers by the first contact of which leads to a Brand Recall: Brand identification is paramount. ? Serving Quality food: Consistency in the taste is of utmost importance. Our customers should not feel any change in the taste. The same quality and taste should be maintained. That is an extremely critical factor for our restaurant. ? ‘Spice of Life’ Menu: The menu will appeal to a wide and varied clientele. Excellent & Prompt Service, Friendly Staff: Food is the most important factor in our restaurant, but Service tops it. ? Employee Retention Focus: Employee retention and development programs will be a primary focus and success platform for this business. Through these programs, we will be able to draw seasoned and elite professionals and build a committed work force. ? Cost Control Focus: We will control costs at all times, without exception. Cost Control will be an integrated function of the restaurant from the onset. Cost control is about managing the numbers – interpreting and comparing the numbers that impact the bottom line We would constantly try to come up with new and popular concepts/themes 1. 4. Key Insights for Success in a Restaurant Business ?
LOCATION – Besides good food & great service, we have also located ourselves in a very convenient place for potential customers. ?
EXTENSIVE ADVERTISING – Extensive advertising techniques to promote our restaurant. ?
PRICE OURSELVES AT EXISTENCE –Challenging & a delicate process. ?
SEEKING OUT & KEEPING QUALITY EMPLOYEES – From kitchen managers to Chefs, we intend to maintain the best staff to achieve a positive response from the customers.
HAVE THE RIGHT THEME AND STICK WITH IT –Our good and different environment will make the customer stick around and make return visits.
1. 5 Positioning Statement Positioning is the place you hold in the customers or prospects mind relative to the competition (the cheaper choice, the higher quality choice, et cetera). Effective positioning involves incorporation of Unique Selling Proposition (U. S. P. ). The restaurant would be casual dining and would be targeted at the upper middle segment of the society. The restaurant would ensure the customer has a good fine dining experience. It will be a Casual Dining Restaurant serving Italian Cuisine. ? A comfortable place where people can share good times together and relax. ? Stand out from the other restaurants in the area because of the unique design and decor. ? The menu will appeal to a wide and varied clientele.
2. 0 Company Summary ‘Huddle’ will strive to be one of the premier most Italian restaurants in Delhi/NCR. So incase they don’t find a place in the Big Chills or decide to go for a change, the next name that comes to their mind is ‘huddle’ and of course we do want to have our separate customer base too because we are different than ‘them’.
This will be the first Italian restaurant in the GK-1 M-Block Market. At our restaurant we want our customers to have more fun during their leisure and dining time. The Restaurant will combine menu selection, a happy atmosphere, good lighting, and great service to create a sense of excitement in order to reach our goal of over-all value in a dining and entertainment experience. ‘Huddle’ is a standalone restaurant privately owned by six partners to financially back the new business venture. The expected open date for this bar will be April 1, 2010.
The key elements of ‘HUDDLE’ restaurant concept are as follows:
• It ‘s going to be our food i. e. a unique menu our signature dishes: ‘Bolognaise Pasta and Tiramisu’ and the decor of our restaurant that’s going to get people talking about us. • Consistently good quality Food and Service. The customers may very well expect the similar quality of food and service in our restaurant on every visit. We want them to.
• A Vibrant, Happy and Sophisticated ambience which will appeal to everyone.
• Location is extremely important for our business.
We have selected out location carefully keeping in mind the demographics, the foot-fall count, average income of the people residing in the same or neighbourhood areas etc. 2. 1 Location We would be located in Greater Kailash-1, M-block, Main market. The total area of the plot is 1500 Square Feet which is divided equally among Ground and First Floor. The Rentals applicable in the area are:
• Ground Floor: 750 Sq Ft @ Rs. 475
• First Floor: 750 Sq. Ft @ Rs. 425 3.
Industry Analysis The food industry is on a high as Indians continue to have a feast.
Fuelled by what can be termed as a perfect ingredient for any industry – large disposable incomes – the food sector has been witnessing a marked change in consumption patterns, especially in terms of food. • Food industry growth rate 9% per annum
• Food & beverage imports to India are growing at around 15% annually, India’s food & beverage industry is growing at a rate of 9% pa ? This industry does not have very high barriers for entry which led to the intense competition amongst the brand available in fast food space. There used is lot of promotional schemes as the brand switching is very frequent in India right now. Fast food does not have any substitute as it is the convenience which matters most. Buyer power is weakened by the fact that, while not everyone enjoys fast food. Brand Loyalty also causes the buyer weakness. ? Emerging middle class and burgeoning income levels in India owing to the outsourcing and globalization has caused a lot of change in the traditional conservative nature of Indians. India has been a nation of varied language, religion, culture, season and hence different eating habits and custom. ? The consumer behaviour of the Indian consumer with respect to restaurants which has an expected growth of 20% till 2011.
An emerging industry with global players lining up to grab up the pie makes the chemistry of entire fast food industry quite interesting. Consumer behaviour has always impacted the business and industry of any Fast food industry in India has evolved with time and as per consumer preferences. ? It is an industry where the consumer perception matters most as India has its own traditional food habits. In Restaurants in India, its always experience qualities that matters. 4. Market Analysis We are mainly targeting the youngsters and middle aged people, between the age group of 16 to 50 yrs.
This would include school students, people visiting GK Market for shopping, students from nearby colleges, For example : Gargi College , Kamla Nehru etc. Young professionals who work close by, targeting people working in Nehru Place and other areas in the vicinity. It’s basically a place for all the age groups, mainly people who have a taste for Italian food and are willing to innovate with their tastes and would want to come to a place to Eat and Relax. We would look to create a niche for itself in this market by providing exceptional experience and winning the trust & confidence of its customers. With increasing disposable incomes more and more people prefer to dine in often.
• Change in lifestyle and due to the affect of western culture people are more open to varied cuisines. • Over the years there has been an increase in Expat population in the country therefore the market for Italian restaurants is also widening.
• Common Wealth Games scheduled in 2010 would invite participants from countries across the globe which would have a direct impact on the sales.
GAPS IN THE MARKET ? It is a very unstable industry. ? Immense Competition. ? Trial and Experimentation among customers is very high. Most of the population in the country still prefers Indian Cuisine. ? Italian cuisine not much preferred by old aged people. 5. 0 Competitive Analysis ‘Huddle’ is a Casual dining Italian restaurant. Due to intense competition, restaurateurs must look for ways to differentiate their business to achieve and maintain a competitive advantage. Huddle will fill that niche. The restaurants which are situated in the market are Moti Mahal and Minar which service Mughlai Cuisine. Apart of these restaurants, there is Yo China which is a Chinese joint and Pizza Hut. Pizza Hut also serves a variety of Pizzas but have a limited variety of Pastas available. And does not serve authentic Italian cuisine. Our competition is mainly from the Restaurants which specialise in Italian Food. ? One of our main competitors would be Flavor’s, situated in Defence Colony Market. It serves an extensive menu of truly Italian-Home Style Cuisine and more or less has the same target market we are trying to furnish to. ? Sartoria located in Vasant Vihar could be possibly one of our competitors as well only as far as the food is concerned.
Sartoria is a fine dining restaurant and is mainly targeting to families. It’s not a place where people can come to chill and relax, ours is a casual dining place where people can relax and enjoy great food at the same time. We will be able to differentiate ourselves from the other restaurants in varied aspects:- ? Choice of Customized Pizzas and Pastas as per the preferences of our customers: We will fix a particular amount for ‘Creating your own Pizza or Pasta’ which would mean that our customers can choose unlimited number toppings on their wn and can customize it according to their tastes and preferences. It’s just like cooking for yourself. ? Live Piano presentation on Fridays from 7 to 9 pm ? Wide Array of Deserts and Shakes: Extensive variety of delicious shakes and mouth watering deserts. Our ‘Tiramisu’ would be one of its kinds. ? People can book our restaurant for personal parties, meetings and get togethers. 6. Strategy and Implementation Summary Our strategy is based on serving our a wide range of customers which mainly includes Individuals between the age of 16 and 50.
Upper and middle class: Sophisticated families who live nearby as well as young professionals who work close to the location. What begins as a customized version of a standard product, tailored to the needs of a local clientele, can become a niche product that will fill similar needs in similar markets across the region. Concentration will be on maintaining quality and establishing a strong identity in the market. The identity becomes the source of “critical mass” upon which expansion efforts are based. Not only does it add marketing muscle but it also becomes the framework for further expansion. . 1 Marketing Strategy
6. 1. 1 Launch Strategy ? Initially a single branch of ‘Huddle’ would be launched. ? Exotic variety of food and wine sessions over a period of a week for business clienteles and for the restaurant fraternity. Special Food menu: Attracting a lovely selection of pizza baked in wood-fired ovens, exquisite seafood, home made pastas and vegetarian fare would be the special order of the evening which would make the guests gorge on the delicacies with much delight. ? Special discounts & meal combos during the month of inception. ? Complimentary deserts
6. 1. 2 Promotional Strategy
Advertising budgets and promotions are an on-going process of management geared to promote the brand name and keep the restaurant at the forefront and to make sure there is customer retention and a steady customer acquisition. In addition, funds are budgeted to launch new outlets. The various promotional tools as planned by the management are as follows: ? In-house Promotion o Our customer will be our advertisers. Basically following the ‘word of mouth’ promotion o Special discounts & meal combos during the month of inception. o Complimentary deserts o Special IPL live on big screens along with something nice to munch and drink. Advertising o Getting listed on Times Food Guide. o Getting registered with Just Dial. o Advertising in Newspapers such as Delhi Times. o Advertising in Magazines. o Live Piano presentation on Fridays from 7 to 9 pm. To monitor how well the restaurant is doing we will measure how well the advertising campaign is working. We will take random surveys of the customers and get customer satisfaction forms filled in the restaurant. What we would like to know is how they heard of the restaurant and how they like it. In order to get responses to the surveys there will be discounts given to their order. 6. 1. Pricing Policy All menu items are moderately priced. An average per head bill would be between Rs. 500-700 including food and drinks. The prices of dishes on our menu will increased over the year. The prices of our “star” dishes will be increased and we may also decide to replace certain dishes from the menu in case they aren’t doing very well with something new.
7. Risks and De-Risking Strategies Risks ? Food contamination One of the common and major risks of starting up a restaurant is food contamination. You can’t simply and easily avoid this because, in the first place, the business is all about food.
Even if the management is very particular with the ways foods are being handled, there is always a possibility that the food may be contaminated. ? Prone to robbery and thieves Restaurant businesses can be very risky. Restaurant businesses are prone to thieves and robbers taking active jobs in the restaurant. The problem here is that most of these people were already tried and trusted by their owners and can easily lure their bosses into believing that they can manage your business well, but in reality, they are in for some unscrupulous activities.
In restaurant operations, money is such an easy prey because it can be easily accessed from the drawer or cash register. It would really take an honest staff, particularly a cashier, in order not to be tempted with the easy money right before her eyes. ? Property loss Restaurant businesses can be very risky when it comes to property loss brought about by unexpected hazards such as fire. Since most of the activities of restaurant business are mostly focused in the kitchen, many possible accidents may arise. Most of these perils are connected to fire accidents.
It would be better for restaurant businesses to always have a ready fire extinguisher since it would normally take longer time to get some help once accidents like fire happens. De-risking Strategy ? While evaluating leasehold ventures is to expect minimum sales to investment ratio of 1. 5 to 1. Carefully projecting and considering the sales to investment ratio. ? Keeping a track on the Marketing Costs incurred by our restaurant. ? It is important to estimate the number of customer you expect to serve at each meal period in a typical week.
Also it’s important to find out how many customers similar restaurants in your market area are serving during these meal periods while taking into consideration seating capacity as well. Taking the time to do this will dramatically enhance your understanding of the local market and improve the quality of your sales projection, which is a “critical” component of your prospects for success. ? Enter the customer counts for each meal period along with an estimate of the check average. This will help you determine an estimated sales volume for a typical week. Another for the slow season and a third for a moderate or middle of the road week.
Then estimate the number of weeks for each of the three periods (peak, slow & moderate) and do the math to arrive at an annual projection. ? Because the success of the business will depend on the quality of food you can provide. Hence, your primary attention should be on the food and the service that you provide. Invest in the best chef you can, even if you have to compromise on other things. It is also very important that you and your staff share a good camaraderie? Another main cause why people stumble with this business is that they do not pay much attention to the pricing.
You have to have a good idea of what costs you will incur, including all your overheads, and then set your prices accordingly. At the same time, you have to invest in several things at the start of the business itself. ? Another effective way of getting customers’ attention is to sell gift certificates. Be sure you sell your certificates in different range of amount so your buyers can decide how much they want to spend. Gift certificates allow users to try the service and food of your restaurant risk-free since the certificate has already been paid for them to consume.
