BUSINESS PLAN

ON

HARD ROCK MOBILE CAFÉ

SUBMITTED TO: - SUBMITTED BY:-

PROF HARSH MAHESHWRI DWAIPAYAN GOSWAMI

PGDM SERVICES (09-11)
PGSF0913
 COMPANY INFORMATION

COMPANY NAME: HARD ROCK INCORPORAION

BUSINESS FORM: MOBILE COFFEE SHOP

BUSINESS NAME: HARD ROCK MOBILE CAFÉ

ADDRESS: #22, Camac Street,

Park Street H.O.
Kolkata -700016

FAX: 509-6666-5898

TELEPHONE: 033-22830773

COMPANY’S WEBSITE: www.hardrockmobilecafe.co.in

EMAIL ADDRESS: goswmidwaipayan@gmail.com

CONTACT PERSON: DWAIPAYAN GOSWAMI

DATE OF ESTABLISHMENT: 1st august 2010

DAYS OPEN: 7 DAYS A WEEK

TIMINGS: 7:00 A.M. – 9:00 P.M.

COMPANY’S LOGO:-
 TABLE OF CONTENTS

Executive summary
• Type of Business
• Company summary
• Management
• Product/Service and Competition
• Exit
•
1 Background and Purpose
1.10 Current Situation
1.20 The resource based concept

2 Objectives
2.10 Short Term
2.20 Long Term

3 Market Analyses
3.10 Overall Market
3.20 Specific Market
3.30 Competitive Factors
3.40 Pricing
3.50 Advertising & promotion.

4 Development and production

4.10 Resource Requirement
4.20 Quality Assurance
4.30 Identify Locations

5 Marketing
5.10 Marketing strategies and resources
5.20 Sales Forecast

6 Financial Plans
6.10 Financial Statement
6.20 Break-Even Analysis
6.30 Sales Forecast
6.40 Cash Flow

7 Organizational Management
7.10 Key personnel resources
7.20 Human Resource Management

8 Summary and Conclusions

9 Scheduling and Milestone

 EXECUTIVE SUMMERY

COMPANY’S ADDRESS:
HARD ROCK MOBILE CAFÉ
#22, Camac Street,
Park Street H.O.
Kolkata -700016

WEBSITE: - www.hardrockmobilecafe.co.in

EMAIL ID: - goswamidwaipayan@yahoo.com

CONTACT: - DWAIPAYAN GOSWAMI

TYPE OF BUSINESS: - The hard rock mobile coffee shop is a specialty beverage
retailer. It uses a system that is new to the beverage and food service industry
to provide hot and cold beverages in a convenient and time-efficient way.
Mobile coffee shop provides its customers the ability to drive up and order
their choice of a custom-blended espresso drink, freshly brewed coffee, or
other beverage. TDP is offering a high-quality option to the fast-food, gas
station, or institutional coffee. The hard rock mobile café will target two
markets:

The Daily Commuter: - Someone traveling to/from work, out shopping, delivering
goods or services, or just out for a drive.

The Captive Consumer: - Someone who is in a restricted environment that

does not allow convenient departure and return while searching for
refreshments, or where refreshments stands are an integral part of the
environment.

MANAGEMENT: - Mobile café located in heart of city of Kolkata will lead by Mr.
Dwaipayan Goswami who has 4 years of experience in sales marketing in food
products in FMCG sector. He has done his MBA in service sector with in dual
specialization of IT and Marketing.

PRODUCTS AND SERVICE COMPETITION: - Mobile coffee shop provides its

patrons the finest hot and cold beverages, specializing in specialty coffees and
custom blended teas. In addition, it will offer select domestic soft drinks,
Italian sodas, fresh-baked pastries, and other confections. Seasonally, TDP
will add beverages such as hot apple cider, hot chocolate, frozen coffees, and
more.
The Hard Rock Mobile Café considers itself to be a player in the retail coffee house
industry. Primary competition will come from following sources: Café Coffee
 Day, Barista, Traditional coffee shop, Fast Food outlets and even from
Convenience stores.

USE OF PROCEED: - We need at least 50 lakh for the starting of the business.

EXIT PLAN: - Our projected value at the end of the third year is r projected value of the
business is 15, 00,000 this represent an IRR of 60%. Hard Rock Cafe chooses to become
the Drive-thru version of Starbucks, obtaining thousands of rupees through an initial
public or private offering that would allow the company to open twenty to thirty facilities
per year in the region of the country between the mountain ranges, in both major and
small metropolitan communities. This is the preferred Exit Strategy of the Management
Team. The danger in this is that competitors would rise up and establish a foothold on a
community before--or in the midst of--the arrival of The Hard Rock, causing a potential
for a drain on revenues and a dramatic increase in advertising expenditures to maintain
market share. Knowing these risks--and planning for them--gives company the edge
needed to make this scenario work.
 BACK GROUND AND PURPOSE

CURRENT SITUATUION: - Hard Rock Mobile café would be operating at

different location in Kolkata. The main idea behind is to target the daily
commuters and captive consumers. It will also generate an opportunity for
creating the job. Differentiating ourselves from other more traditional cafes has
given us the ability to effectively compete on the beverage and pastry side of the
business with the already entrenched competition. Sales are brisk and in-line with
projections. Hard Rock café would provide one of the best coffee services with
the state-of-art-technology available in various mobile coffee shops.

THE RESOURCE BASED CONCEPT: - Besides the financial and technical support
that is being provided we need to have fresh coffee beans which is integral part of
our business success. Apart from that the customized coffee van, coffee machine
are also be considered as an integral part for the success of our business.
 OBJECTIVES

SHORT TERM: - The Hard Rock Mobile Cafe has established three firm objectives it
wishes to achieve in the next three years:
1. Thirteen Drive-thru locations and four fully booked Mobile Cafes by the end of
the third year.

2. Gross Margin of 45% or more.

3. Net After-tax Profit above 15% of Sales.

LONG TERM: - The Mobile Café Objective is in three-fold, with each being as integral
to our success as the next.

1. Product Objective - Provide customers the finest quality beverage in the most
efficient time.
2. Community Objective - Provide community support through customer
involvement.
3. Economic Objective - Operate and grow at a profitable rate through sound
economic decisions.
 MARKETING ANALYSES

OVER ALL MARKET: - Indian Coffee Board puts country's coffee production at
2.90 tones (Post monsoon estimation) and 3.06 tones (Post Blossom Estimation)
respectively. For the present crop year beginning October, the board has estimated an
output of Arabica at 101,525 tones and Robusta 204,755 tones. Karnataka leads the
country with 2.05 tones (Post monsoon estimation) and 2.21 tones (Post Blossom
Estimation) production followed by Kerala and Tamil Nadu. According to ICO
estimate, India produced over 3.1 million bags of 60 kgs each in 2009 compared with
3.3 million bags in 2007.Country's coffee exports during fiscal 2008-09 stood at 1.96
lakh tones signifying marked decline from 2.18 lakh tones in 2007-08.

SPECIFIC MARKET: - The Mobile Café will focus on two markets:

1. The Daily Commuter - someone traveling to or from work, out shopping,

delivering goods or services, or just out for a drive. Commuters are defined as any
one or more individuals in a motorized vehicle traveling from point "A" to point
"B." The Mobile Coffee shop’s greatest concentration will be on commuters
heading to or from work, or those out on their lunch break

2. The Captive Consumer - Someone who is in a restricted environment that does

not allow convenient departure and return while searching for refreshments, or
where refreshments stands are an integral part of the environment. Examples
would include high school and college campuses, where there is limited time
between classes, and corporate campuses where the same time constraints are
involved, but regarding meetings and project deadlines, and special events--such
as carnivals, fairs or festivals-where there is an admission price to enter the gate,
but exiting would mean another admission fee, or where refreshments are an
integral part of the festivities.

COMPETITIVE FACTORS: - There are four general competitors in The Mobile

coffee shop drive-thru market. They are the national specialty beverage chains, such as
Starbucks and Barista, local coffee houses--or cafes--with an established clientele and a
quality product, fast food restaurants, and convenience stores. There is a dramatic
distinction among the patrons of each of these outlets. Competitors to the Mobile Cafes
on campuses would include fast food restaurants-assuming they are close enough to the
consumer that they can get there and back in the minimal allotted time, vending
machines, and company or school cafeterias. The consumers in this environment are
looking for quick, convenient, fairly priced, quality refreshment that will allow them to
purchase the product and return to work, class, or other activity. Competitors to the
Mobile Cafes at events such as festivals and fairs would include all the other vendors
who are licensed to sell refreshments.

PRICING: - We will keep the price of instant coffee at Rs.20 which is quite cheaper as
compared to Café Coffee day or Barista

ADVERTISING AND PROMOTION: - We believe in quality of products so our

service products will self flurries on goodwill & words of mouth.
 DEVELOPMENT AND PRODUCTION

RESOURCE EQUIPMENT: - We need at least 50 lakh for starting our business which
includes buying of customized Van, Coffee Machines and Computers.

QUALITY ASSURANCE:-

1. We create a sense of quality assurance of green and roasted coffee products, new
coffee product development, and coffee specification programs.

2. Coffee products for quick-service restaurants, fine and casual dining and
convenient stores.

IDENTIFYING LOCATION: -

We will have our head quarters in above mention address and from their we will
operating at various location in the city of Kolkata

.
 MARKETING

MARKETING STRATEGY AND RESOURCES:- Hard Rock Mobile Café target

market is the mobile individual who has more money than time, and excellent taste in a
choice of beverage, but no time to linger in a cafe. By locating the Drive-Thrus in high
traffic/high visibility areas, this unique--and abundant--consumer will seek. The Hard
Rock Mobile Café out and become a regular guest.
To penetrate the target market for the Mobile Cafes, these units will do what they were
designed to do. The Hard Rock will take the cafe to the customer. By using the
community support program Hard Rock is instituting, arrangements will be made to visit
a high school, college campus, or a corporate campus once or twice a month (Even visit
these facilities for special games, tournaments, recruiting events, or corporate open
houses). And, for every cup or baked good sold, a portion is returned to the high school
or college. It becomes a tremendous, painless way for the institution to gain a financial
reward while providing a pleasant and fulfilling benefit to their students or employees.

SALES FORECAST: - In the first year of its operation Hard Rock will have ten
customized mobile vans will be fully operated. The first five will be operated within third
month of this plan and the next five will be operated by end of this year. Hard Rock is
building in a certain amount of ramp-up for each facility while commuters become
familiar with its presence. These fully operated mobile vans will generate more than 5
lacs in the first year of its operation.
In the second quarter of the second fiscal year, The Hard Rock will deploy next 10 fully
operated mobile coffee shops. Hard Rock Chain expects all ten mobile units to generate
revenue 10, 00,000 in the second year. In the third fiscal year, with an additional 10 more
mobile vans deployed, Hard Rock expects to see amount of revenue generated is
something close to15 lacs.
 FINANCIAL PLANS

FINANCIAL STATEMENTS: - The Hard Rock Café Company’s financial picture is

quite promising. Since it is operating a cash business, the initial cost is significantly
less than many start-ups these days. The process is labor intensive and TDP recognizes
that a higher level of talent is required. The financial investment in its employees will be
one of the greatest differentiators between Hard Rock and its competition. For the
purpose of this pro-forma plan, the facilities and equipment are financed. These items
are capital expenditures and will be available for financing. There will be a minimum of
inventory on hand so as to keep the product fresh and to take advantage of price drops,
when and if they should occur.

BREAK-EVEN ANALYSIS:-To arrive at the average monthly fixed costs, Hard Rock
cafe calculated the fixed costs for the Drive-thru. Using the average price per unit,
less the average cost per unit, divided into the fixed costs of operation, Company
concludes that we will need to sell at least the number of units shown in the
following table and chart to reach break-even each month.

Monthly Units Break-even Rs. 2986

Monthly Revenue Break-even Rs. 75,000

Assumptions
Average Per-Unit Revenue Rs.20
Average Per-Unit Variable Cost Rs.2
Estimated Monthly Fixed Cost Rs. 10,000

SALES FORECAST:-Revenues for the first year of operation are based on an almost
10% growth rate from month to month. This is an aggressive estimate, but we feel
that our strong emphasis on marketing will have positive results. Annually,
beyond the first year of operations, we're predicting a growth rate of roughly 10%.
We'll have a better idea of potential growth rate beyond year one as we make our
way through our first year. The plan will be updated as we receive more
information.

CASH FLOW:-
Initial capital requirement (cash outflow) = 50, 00,000(-)
Investment recovery (cash inflow) = 75,000 p.m (+)
Operating expense = 25,000 p.m (-)
= 50,000 p.m
 BALANCE SHEET

ASSETS

Current Assets
Cash 15, 00,000
Account receivable 2, 25,000
Deposits Prepays 3, 41,000
Inventory 1, 00,000

Total Current Assets 21, 66, 000

Fixed Assets
Vehicles 5, 00,000
Start up costs 50, 00, 000
Other equipments 3, 00,000
Less Accumulated Depreciation (3, 75,000)

Total Fixed Assets 54, 25,000

 ORGANIZATIONAL MANAGEMENT

KEY PERSONNEL RESOURCES: - The Mobile Coffee Shop is a relatively flat

organization. Overhead for management will be kept to a minimum and all senior
managers will be "hands-on" workers. There is no intention of having a top-heavy
organization that drains profits and complicates decisions.
At the zenith of this three-year plan, there will be four "Executive" positions: chief
operating officer, chief financial officer, chief information officer, and director of
marketing. There will be other mid-management positions, such as district managers for
every four Drive-thrus, and a facilities manager to oversee the maintenance and stocking
of the Mobile Cafes, as well as overseeing the maintenance and replacement of
equipment in the Drive-thru facilities.

HUMAN RESOURCE MANAGEMENT: - The management of hard rock cafe realizes

that motivated and committed human resources are the key to the success of a coffee
business. Therefore the company took great care in selecting the right kind of people and
made an effort to retain them. Consequently, the company's human resource policies
reflected its commitment to its employees.
The Company relied on its baristas and other frontline staff to a great extent in creating a
kind of experience which differentiated it from competitors. Therefore the company paid
considerable attention to the kind of people it recruited. The Company’s recruitment
motto is "To have the right people hiring the right people."
 SUMMARY AND CONCLUSION

The Hard Rock will penetrate the commuter and captive consumer markets by deploying
Drive-thru facilities and Mobile Cafes in the most logical and accessible locations. The
Drive-thrus are designed to handle two-sided traffic and dispense customer-designed,
specially ordered cups of specialty beverages in less time than required for a visit to the
locally owned cafe or one of the national chains. The company has identified its market
as busy, mobile people whose time is already at a premium, but desire a refreshing, high
quality beverage or baked item while commuting to or from work or school. In addition
to providing a quality product and an extensive menu of delicious items, to ensure
customer awareness and loyalty, as well as positive public and media support, Hard Rock
could be donating up to 7.5% of revenue from each cup sold in individual Drive-thrus to
the charities of the customers' choice.
 SCHEDULING AND MILESTONE

The Milestone table reflects critical dates for occupying headquarters, launching the first
Drive-thru and subsequent Drive-thrus, as well as deployment of the mobile units. The
company also defines our break-even month, our website launch and subsequent visitor
interaction function, and other key markers that will help us measure our success in time
and accomplishment.