FRIENDS CAFÉ ULTIMATE HANGOUT DESTINATION
BUSINESS PLAN
BUSINESS PROPOSAL: The idea is to establish a focused Quick Service Bakery Outlet (QSBO) chain starting its first unit at sector 14 koperkhairne.
The brand name of the restaurant is Friends Cafe and the company will be registered as Friends Cafe Pvt. Ltd
For Youngsters via quick service and the family who live in residential complexes via quick delivery will be targeted
An outlet of 720 square feet which has been brought by our partner Rohit to operate the restaurant from Circular Road
Subodh, Vaibhav,Deepchand, Rohit, Padma , Archana, Prachi and Shital create a highly qualified team to run the company.
Friends cafe will introduce new menu in the city which will include cakes, muffins, tarts, tea, coffee, all kind of breads, Pasta, Sandwich and Chicken burger to the customer.
Vision Statement: Putting people before products. Create a loyal following. Deliver Quality Products.
Mission Statement: “Establish Friends cafe as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow”
LEGAL REQUISITE TO BE MET 1. 2. 3. 4. 5. 6. 7.
Partenership Deed 1932 The Shops and Establishments Department (BMC). The Licensing Department (BMC). The Health Department (BMC). The Building and Factory Department. The Weights and Measures Department.
FUNDS REQUIRED AND TIMING
We plan to make two major investments: One in plant And Machinery , Raw Materials and one in shop premises development.
FINANCING Total Financing Required
35,00,000
Owner’s Fund
25,00,000
Loan’s
10,00,000
Total Financing
35,00,000
Cost of Goods Manufactured
2013
Total Direct Labour
1,30,000
Total Direct Materials
1,60,000
Manufacturing Overhead
total
75,000
3,65,000
Projected Balance Sheet as on December 31, 2014 Liabilities
Assets
Owner’s Fund
25,00,000
Land & Building
18,00,000
Loans
10,00,000
Plant & Machinery
12,00,000
Reserves & Surpulus
3,90,000
Current Liabilities Payables
Total
Current Assets 4,00,000
42,90,000
Receivables
1,00,000
Cash In Hand
5,50,000
Cash At Bank
6,40,0000
Total
42,90,000
INVENTORIES Raw -Materials Work-In-Progress Finished Stock
ACCOUNTS RECEIVABLE/PAYABLE Receivables
For Bulk Orders we would provide a 15 days credit period.
Payables
We would be getting 1 month credit facility from suppliers.
ESTIMATED PROFIT & LOSS STATEMENT
Sales Less cost of
Year One
Year Two
Year Three
2,364,839
,202,645
7,591,132
2,096,056
4,578,327
6,604,286
268,783
624,318
986,846
224,740
243,404
345,690
44,043
380,914
641,156
9,043
76,184
145,751
32,900
304,730
495,405
sales Gross profit Less expenses Net income before taxes
Provision for taxes Net income after taxes
FINANCIAL PROJECTIONS: BREAK EVEN ANALYIS 1/20/2013
1200 1000
Revenue
800
Break-Even TR = TC
600
} Variable Cost
400
Fixed Cost Total Cost Total Revenue
200 0 0
[
20
40
60
80
100
Units Sold
Total Fixed Cost 15 B/E(Quantity) = Price per Unit – Var. Cost per Unit
]
You can’t be a successful entrepreneur unless you manage, and if you try to manage without some entrepreneurship, you are danger of becoming a bureaucrat
---Peter Drucker, The Frontiers og Management 1986
HUMAN RESOURCE PLAN.
ORGANISATION CHART
Board of Directors Café Manager
Head Baker/chef Stewards Assistant Bakers/chefs
CAFE MANAGER Responsibilities:
To Oversee daily production. Preparing Work Schedules. Assigning Employee Tasks and supervise them. Ensures product quality. Purchases of raw materials. Keeps facility running, and clean. Look after Accounting Duties.
HEAD BAKER/CHEF
Responsibilities:
Working long hours. Ability to follow recipes. Ability to produce quality product. Ability and experience to use ovens and mixers. Dishwashing and janitorial skills. Delegate work to the Assistant bakers. Maintain hygiene.
ASSISTANT BAKER
Responsibilities: Assist Head baker in baking. Maintain Hygiene. Dishwashing and janitorial skills.
Stewards Operate Cash register. Take orders and serve customers. Dishwashing, and basic janitorial skills
HR STRATEGIES Motivation: Best Recipe Award. Star Chef of the month. Monetary/ Non monetary benefits. Grievance redressal System.
ADDITIONAL TRAINING
All staff members will be given six monthly training for one day on Safe Food Handling Course.
SAFETY MEASURES IN THE KITCHEN Clean aprons/ gloves for the bakers/ chefs. First aid kit. Proper place for cutlery. Dress code for the stewards. Quality equipments and standardised kitchen.
SALARY STRUCTURE Designation
Salary
Cafe manager
35,000 p.m
Head baker
20,000 p.m
Assistant Bakers
12,000 p.m
Stewards
8000 p.m
OPERATIONS PLAN
The proposed factory will be consisting of 2000 sq. ft. of land starting its first unit at sector 14 koparkhairane.
Whereas the shop areas will be 300 sq. ft for each outlet.
There will be separate area for each departments.
PLANT LAYOUT
WORK PLAN
The proposed bakery outlet will be working from 4.00-am morning to 11.00 pm
4:00am – Start Baking
8:00am – Bakery Opens
11:00 pm Bakery Closes
SOURCING/RECEIVING
We will buy in bulk from a list of approved vendors.
Recommendations from competitors, customers and wholesale supply houses are some of the factors .
We also rely on newspapers, magazines and the internet if we require more sources.
The criteria includes conformance of products to our quality standards, certification, timely delivery, minimum order quantities.
We will utilize the visual method to keep inventory check.
PROCESS / METHODS
Equipment used are convection oven, commercial mixers, coffee machines, commercial refrigerators and freezers
some of the other supplies will include bakery boxes , cake boxes, cake decorating equipment, dough forming equipment, food display cases and bread equipment.
CLEANING
To minimize pest infestation.
On a quarterly basis level of quality check.
Training course on cleaning procedures
RAW MATERIAL Plain Cakes - Butter, sugar, Maida , baking powder ,Eggs , flavour Sweets – Khoya , Maida , ghee , sugar syrup Chicken Bread – Chicken , Maida , oil, yeast, sugar, salt , masala, onion, Mayonnaise & Ketchup , Cheese
TECHNOLOGY AND PROCESSES
Local machinery or 2nd hand imported machinery available locally
New machinery and installation would not be feasible due to the high costs involved.
Major suppliers of Local and used imported machinery are: Bakexcel Associates, Vashi Saeed Fabrication Works, Thane
BATCH PRODUCTION
MASS CUSTOMIZATION
PLANT & MACHINERY
Automatic oven with different timing and different temperature.
Oven of 7x7x10 feet with 8 rotating stands having 5 trays on each stand is used
Oven capacity will be: 60-kg biscuits in 30 baking minutes at a temperature of 150 degree centigrade.
120 pieces of large Pizza in 20-25 minutes at a temperature of 150 -180 degree centigrade.
MACHINERY REQUIREMENT
Spiral Mixer, Oven, Burner , Deep freezers, Frier , Packing machine, Cold storage equipment, Fixed racks , Trays
Repair & Maintenance Annual Repair & Maintenance of the plant and machinery is expected to be 1 % from Year 1 --4 and 1.5 % from Year 5 --- 10 of the total machinery cost.
Furniture & fixtures
Chairs ,tables & other furniture, Airconditioners , Computers & accessories , Interior designing cost, Electric installations & other utilities
MARKETING PLAN
THE MARKETING MIX 4 P’S
Products/Services
Breads-various varieties Buns Tarts Muffins Cookies Sitting area with coffee/tea and in-store products
MARKETING MIX
Price
Promotion
Cost plus pricing. but still competitive
Pamphlets. Billboards. Colleges. Discount coupons.
Place
KoparKhairane.
SEGMENTATION, TARGETING AND POSITIONING
Population of Koperkhairne and Navi Mumbai.
Target markets
Koperkhairne. Ghansoli. Rabale. Airoli.
Positioning
Affordable healthy and Delicious.
SWOT ANALYSIS
Internal Strengths
Partnership business Location Homemade recipes
Weaknesses New entrant Increased prices of raw material.
SWOT
External Opportunities
Desire for healthier lifestyle. Niche market in urban areas.
External Threats
Change in lifestyle trends. Increased fuel prices. Competitors having competitive prices.
MARKETING PLAN BUDGET Marketing Budget Advertising
Expenses/year
Newspaper
--
Pamphlets
20000
Other Billboard
15000
sponsorship
40000
Promotion and Development Business cards
1900
Travel expenses
15000
Total Marketing Expenses
91,900
STANDING PLAN If
price of bread decreases: have to either increase sales to a break even level the bakery would have to find a way to decrease fixed costs
Methods
additional stall at the Saskatoon farmers market craft sales throughout the province
CONCLUSION
THANK YOU
