Entrepreneurship Management Project Report on

GROUP NO: 7

Submitted To:

Submitted By:

Group No: 7

Prof. Shinu Abhi
Carvalho,

Clevin

Vamsi Kanth,

Vivek Kumar Chaturvedi.

Executive Summary
“A well-run restaurant is like a winning baseball team. It makes the most of every crew member's talent and takes advantage of every split-second opportunity to speed up service. “

This is what we have tried to leverage through our business plan “Oceania”. “Oceania” is a restaurant for fun-seeking as well as sophisticated diners looking for good food in a fascinating atmosphere; where they are given a chance to experience the wonderful underwater and jungle themed restaurants which they had missed out so far. Today it is seen that with most of the people are interested to spend their leisure time going out to different places which gives them new look and experience. After a feasibility study of cross section of people, in Karnataka, Tamil Nadu, Andhra Pradesh, Bangalore and Chennai in the age group between 20 to 50 years, the most preferred menus have been selected for start – up phase of the restaurant. The menus offered would be:  On the Water's services are all delivered in their extraordinary atmosphere which includes a comprehensive art and culture collection from US and India.  The menu contains traditional favorites such as  Other menu items are kebobs, chutneys, flat breads and desserts. Everything is fresh, homemade, and prepared daily.

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 And addition to the menu other services including the wine and beverages and sprits The differentiating factor of “Oceania” would be it’s extensively for young adults, keeping in mind the fact that their experience is different from that of others because of which they may not feel existed with other restaurants. Though “Oceania” had been called a restaurant, it would be more than a just restaurant, it would be a single stop solution for younger and adult generations where they acquire new experience and also engage in hobbies for leading a more fulfilling and enriching life. There would be well attractive space birthday parties celebrations, and other occasions and many more of such events to keep people engaged. The positioning of the restaurant would be a not a restaurant but an amazing place, where one spends one’s time constructively, experiencing new things. The industry when analyzed using Porter’s Five Force model, showed that it is quite attractive, as there is no player in the market at present which provides a similar offering. “Oceania” faces indirect competition from players like local restaurant players and pubs Initially the restaurant would start at one location Bangalore – which would be acting as separate profit centers and managing their operations independently. The menus offered would remain same throughout and regional preference would be taken into consideration for the traditional menu. The menus are priced differently for weekdays, weekend. The revenue generation would be based on certain charges for each item. “Oceania” would be breaking even in the third year of operations. An initial startup capital of Rs. 4 cores would be required for starting the 2 units. The growth plans are to expand based on the movement and demand of the market.

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“Oceania” is a novel idea and the major reason for its success would be its innovative serving model. The impression and experience that the people would enjoy with “Oceania” would lead it forward in the future and this would be a major platform for them to enjoy their passion and lead a more happy life. There is need for this offering in the market and we are passionate about this idea, so “Oceania” is a means to match the need with our passion.

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Background Information
Concept We have experience it ourselves more need for new restaurants when we spoke to our friends and relatives about the themed restaurants and their leisure time hobbies. This inspired us to come up with an arrangement that would make them happy at fascinating atmosphere and keep them engaged in our absence, thus leading to origin of “Oceania” The concept of “Oceania” originates from the fact that, in this age of advanced technology and unorganized restaurants, a majority of our younger’s and adults feels left behind and looking for something new fascinating atmosphere restaurants. Also, people need something to make them feel new every time to themselves with and at present there is no such offering in the market. “Oceania” aims to become that the place for the youngsters where they can enjoy their passion. “Oceania” is different because of the exclusivity for elderly people and the variety of items offered under a single roof. “Oceania” would be a restaurant meant especially for younger people where menu contains traditional favorites, other menu items are kebobs, chutneys, flat breads and desserts. Everything is fresh, homemade, and prepared daily. In addition to the menu other services including the wine, beverages, and sprits. Though “Oceania” has been called a restaurant, it would be more than a just restaurant, it would be a single stop solution for younger and adult generations where they acquire new experience and also engage in hobbies for leading a more fulfilling and enriching life. There would be well attractive space birthday parties celebrations, and other occasions and many more of such events to keep people engaged. The positioning of the restaurant would be a not a restaurant but an amazing place, where one spends one’s time constructively, experiencing new things. 3

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Drivers 60% of the population of India is between 20 to 50 years. These people spend their leisure time by hanging around restaurants, pubs and shopping centers. At the same time, they are mostly bored going to the same places every time. For these people it becomes even more difficult spending their time as they do not like to see the same places every time. Few of the major driving factors that lead to the conceptualization of “Oceania” are as follow:  Increasingly demand for restaurants in our day to day life.  Younger generations are looking for something new to have fun.  No well organized and wonderful themed restaurants in the market Due to the above mentioned factors it could be concluded that youngsters need to engage themselves in for fun and joy to lead a happier life and hence “Oceania” is the solution.

Business Proposition
Services Offered One thing that is always consistent with on restaurant is their impeccable service. All server staff hired has extensive experience and all go through three weeks of training, ensuring benchmarked customer service. On the Water's services are all delivered in their extraordinary atmosphere which includes a comprehensive art and culture collection from US and India. This provides an authentic surrounding that at times seems to distract everyone as they analyze the wealth of artifacts on display. The menu contains traditional favorites. These favorites are differentiated through the use of the freshest organic ingredients. Most people are not 3

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aware of how much better the items taste when they are prepared with the freshest ingredients and made with love. Other menu items are kebobs, chutneys, flat breads and desserts. Everything is fresh, homemade, and prepared daily. The menus are of daily (Weekdays), weekends basis. The medium for serving would be both in US and increase India traditions. It can be assumed that most adults would not be comfortable with only nontraditional food as the medium of serving and therefore traditional food would be a more preferred medium. This would primarily the market coverage and also helps in scalability.

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Customer Profile On the restaurant will be targeting locals and tourists who are active restaurant seekers. There will be a special focus on young adults with 15K 60K of income looking for good food and a great time. In addition to the young adults with money to spend, On the Water will also be targeting adults and tourists. The general demographics are males and females ages 20-50 with some or all of a college education.

Historically, if there is a dip in the general economy, the restaurant industry is usually effected far less that the overall economy. To some degree this is because of people's perception that food, regardless whether it is from the grocery or restaurants is a fundamental necessity of life and spend accordingly. Pricing Strategy The price for each of the item mentioned are enlisted below. All the figures shown below are monthly charges and are in Indian rupees. Positioning The restaurants will be positioned as merely a service provider but as a way of fun and joy. The tagline of

“Experience the

reality……”

would be used to create reality and new experience

to customers. It is like a new world to youngsters or adults.

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The unique selling propositions of the offering are as follow:  A underwater restaurant with affordable price menu (Underwater Restaurant)  Experience the jungle atmosphere in the city (Jungle Restaurant)  Feel as a king from the extraordinary services  All food items under single roof Promotion of the Service The initial response towards the project is greatly dependent on the marketing strategies adopted. Branding:  To build a brand image for itself, the restaurant has chosen the brand elements like the logo, the tagline that goes well with its value proposition.  The advertisements should focus on new world, reality, fun and joy in restaurants, with the target audience. Communication strategy: The communication objective is to initially develop awareness about the USP in the market as this is a new concept and then concentrate on influencing the customers to experience the reality. Three elements have been considered as part of the marketing communication mix. Marketing channels: Various marketing channels have been considered like newspapers, TV channels and radio. Tie – ups with five stars hotels and big corporate institutions to get the corporate look. 3

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External customers: Those customers who experienced the reality would definitely spread the experience about the reality and services provided at “Oceania”. It is believed that word of mouth would reach create more loyalty and publicity than any other branding. Word of mouth would be the main form of our communication to the potential customers.

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Infrastructure Requirements for Execution In the initial stage the plan is to start two restaurants in Bangalore – The major infrastructure requirement for starting the venture is the space for setting up the restaurant. Apart from the space requirements, other requirements include furniture, High quality glass, and cooking furniture as well. The premises would be taken either on rental or lease and all other requirements would be purchased. Approximately an area of 1lakh square feet is being considered for underwater restaurant and approximately an area of 70000 to 80000 square feet is being considered for Jungle restaurant. Internet connections would also be required for which connections will be subscribed to and monthly charges would be paid. The approximate details of quantities required have been specified in the financials section. Organization Structure The business model is based on the idea of each of these two units would acts as separate profit centers and manage their operations independently. The menu would remain same but the item charges would differ for each restaurant.

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Each unit shall have a Manager who will manage the day to day operations of the units and would be reporting on thrice a week basis to us. The unit will have As the demand grows, the number of employees will increase according to manage the workload. Thus the organization chart, which is quite flat structure initially, is shown.

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Industry and Market Analysis

The concept of “Oceania” originates from the fact that, in this age of advanced technology and unorganized restaurants, a majority of our younger’s and adults feels left behind and looking for something new fascinating atmosphere restaurants. Also, people need something to make them feel new every time to themselves with and at present there is no such offering in the market. “Oceania” aims to become that the place for the youngsters where they can enjoy their passion. Few of the major driving factors that lead to the conceptualization of “Oceania” are as follow:  Increasingly demand for restaurants in our day to day life.  Younger generations are looking for something new to have fun.  No well organized and wonderful themed restaurants in the market Due to the above mentioned factors it could be concluded that youngsters need to engage themselves in for fun and joy to lead a happier life and hence “Oceania” is the solution. Players in the market “Oceania” faces numerous challenges from number of restaurants, star hotels and other independent services. The major competitors would be big value chain restaurants like Ohris Restaurants, Khairali restaurants, 3

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Hyderabad House, independent services likes KFC, Mc Donald’s, Pizza Hunt, Dominos, local players and other star hotels like Taj residency, Leela Palace, Holiday Inn, Oberoi etc. All these competitors positioned themselves as a place to have food which is called restaurant. And none of these food chains are in themed based.

But “Oceania” will definitely enjoy the competitive advantage in positioning itself saying

“Experience the reality……”

which

would

prove the reality and new experience to customers under water and jungle themed restaurants. It would be more than a just restaurant, it would be a single stop solution for younger and adult generations where they acquire new experience and also engage in hobbies for leading a more fulfilling and enriching life. There would be well attractive space birthday parties celebrations, and other occasions and many more of such events to keep people engaged. The positioning of the restaurant would be a not a restaurant but an amazing place, where one spends one’s time constructively, experiencing new things.

Aspirations of the Oceania
Vision & Mission On The restaurant is a business that envelopes fine dining of unique Mediterranean taste and an excellent bar and grill atmosphere. The mission is not only to have great tasting food, but have efficient and friendly service. Our di ning environment is not only welcoming and sophisticated; it is unique in design, with walls on almost all sides that are constantly wet with running water and a lush jungle ceiling that will hang from above. We concentrate on customer satisfaction and quality food that is always fresh 3

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and specially selected. We will not judge a customer on class or dress. We want the On The Water grill to be place people can enjoy a good meal and meet new friends at our tropical Mediterranean Honey bar located inside the restaurant. Background of Entrepreneurs The team comprises of two budding entrepreneurs who are currently pursuing their PGDM (MBA) from IFIM B- School, Bangalore and both of them are specializing in Marketing and General Management. Among both entrepreneurs, one has one and half years of corporate experience in Marketing and also specialized in Accounting Package from BDPS. And other one has experience in Event Management Marketing and actively participated in Personality Development Programs. Also both of them have proved the leadership skills in organizing seminars at IFIM campus and worked as Team Leaders for various projects. Moreover one of them has good experience in Marketing Research and worked with AC Nielson Org Marg Pvt Ltd which would be of added benefit for understanding the needs of customers in better way.

Company Summary
“Oceania” creates and serves a wild atmosphere for dining and eloquent Mediterranean feasts for people who love the restaurant and bar scene, as well as a good time spent out on the town. Its customers are creative, funseeking, and sophisticated diners who wish to be best served by the restaurant they choose. Company Ownership “Oceania” is a partnership business owned in majority by its partners. The business employs the manager, Support Staff and Employees. Financial Plan

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The following topics and tables outline our financial plan. We plan to turn a significant profit, but we will structure the business so as to maintain a healthy cash flow. Important Assumptions The financial plan depends upon important assumptions, most of which are shown in the following table. The key underlying assumptions are:
 

We assume a slow-growth economy, without major recession. We assume that there are no unforeseen changes in the expectancy in the popularity of our restaurant. We assume access to investments and financing are sufficient to maintain and fulfill our financial plan as shown in the tables. General Assumptions Year 1 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 1 10.00% 10.00% 25.42% 0 Year 2 2 10.00% 10.00% 25.00% 0 Year 3 3 10.00% 10.00% 25.42% 0

Start-up Summary Our start-up expenses come to Rs. 4 Cores which is mostly expensed equipment, rent, and legal and consulting costs associated with opening our restaurants. We also require 60 lakhs of start-up assets, which includes 50 lakhs cash and 10 lakhs of long-term assets. The start-up costs are to be financed some by direct owner investment, as well as with the help of a major investor.
Start-up Expenses Start-up Expenses Legal

50,000.00

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Stationery etc. Menus Consultants Insurance Rent Capital Cost Other Total Start-up Expenses Start-up Assets Cash Required Start-up Inventory Total Assets Total Requirements 100,000.00 30,000.00 100,000.00 500,000.00 7,000,000.00 25,000,000.00 1,000,000.00 33,780,000.0 0

5,000,000.00 1,000,000.00 6,000,000.00 39,780,000.0 0

Strategy and Implementation Summary
The following sections outline the strategy and implementation summary for “Oceania”. Sales Strategy

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The important elements of the sales forecast are shown in the following table. The sales of food, drinks take a while to grow but will grow in second year.
Sales Forecast Unit Sales Year 1 25,000 20,000 45,000 Unit Prices 400 50 Sales 10000000 1000000 11000000 Direct Unit Costs 150 25 Direct Cost of Sales Covercharge Meals Drinks Subtotal Direct Cost of Sales 3750000 500000 4250000 5250000 625000 5875000 7500000 1000000 8500000

Meals Drinks Total Unit Sales

Year 2 35,000 25,000 60,000

Year 3 50,000 40,000 90,000

Meals Drinks

400 50

430 60

Meals Drinks Total Sales

14000000 1250000 15250000

21500000 2400000 23900000

Meals Drinks

150 25

150 25

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Management Summary Our management philosophy is based on responsibility and mutual respect. People who work at “Oceania” want to work there because we have an environment that encourages creativity and achievement. The team includes a maximum of eight to twelve employees, under a president/manager of one. Personnel Plan The personnel plan reflects what we would like to keep as a steady positioning throughout the years. Our total headcount will increase from 54 to 66 come year3 because that's the beginning of our "good" season. However, we plan to keep the head count at 60 because of the space and dynamics of the restaurant. It appears we don't need more than 66 employees to run the business until the fourth and fifth year, if and when we are successful enough to expand. Detailed monthly projections are included in the appendix.

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Year 1 No of Sta ff Manager Hostess Waiters/Waitre sses Bartenders Support Staff Cocktail Waitresses Chefs Total People Total Payroll 2 10 14 4 6 10 8 54 44,0 00 283,0 00 3,396, 000 Salar y 15,0 00 3,00 0 5,00 0 4,50 0 3,50 0 5,00 0 8,00 0 PM 30,00 0 30,00 0 70,00 0 18,00 0 21,00 0 50,00 0 64,00 0 PA 360,00 0 360,00 0 840,00 0 216,00 0 252,00 0 600,00 0 768,00 0

Payroll Plan Year 2 No of Staff 2 12 16 4 8 10 10 62 44,0 00 322,0 00 3,864, 000 Salar y 15,0 00 3,00 0 5,00 0 4,50 0 3,50 0 5,00 0 8,00 0 PM 30,00 0 36,00 0 80,00 0 18,00 0 28,00 0 50,00 0 80,00 0 PA 360,00 0 432,00 0 960,00 0 216,00 0 336,00 0 600,00 0 960,00 0 No of Staff 2 12 18 6 8 10 10 66 PP

Year 3 PM 30,00 0 36,00 0 90,00 0 27,00 0 28,00 0 50,00 0 80,00 0 PA 360,00 0 432,00 0 1,080,0 00 324,00 0 336,00 0 600,00 0 960,00 0

15,0 00 3,00 0 5,00 0 4,50 0 3,50 0 5,00 0 8,00 0

44,0 00

341,0 00

4,092, 000

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3 (Three) years Profit and Loss Statement
The figures relating to the associated costs are for 2 units and have been estimated for 3 years. The investments (in Rs) on a yearly basis for one unit:

Pro Forma Profit and Loss
Year 1
Sales Direct Cost of Sales Other Total Cost of Sales Gross Margin Gross Margin % 11,000,000 4,250,000 4,250,000 6,750,000 61%

Year 2
15,250,000 5,875,000 5,875,000 9,375,000 61%

Year 3
23,900,000 8,500,000 8,500,000 15,400,000 64%

Payroll Sales and Marketing and Other Expenses Depreciation Insurance Rent Utilities Leased Equipment Payroll Taxes Other Total Operating Expenses Profit Before Interest and Taxes EBITDA Interest Expense Taxes Incurred Net Profit Net Profit/Sales

Expenses 3,396,000 300,000

3,864,000 200,000

4,092,000 200,000

700,000

700,000

700,000

237,720

270,480

286,440

4,633,720

5,034,480

5,278,440

2,116,280 2,116,280 200,000 1,916,280 17%

4,340,520 4,340,520 200,000 4,140,520 27%

10,121,560 10,121,560 200,000 9,921,560 42% 3

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Conclusion
We consider that the idea is different from the other offerings in the market because no other restaurants of this kind exist in the market. So “Oceania” will definitely enjoy the competitive advantage from the day one itself and also can be excepted to perform competitively in future.

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Annexure The excepted sample view of Under Water Restaurant

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The excepted sample view of Jungle Restaurant

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