Red Chilis

Group Members: 1. Ekta Yadav 2. Himanshi Jain 3. Kiran Sharma 4. Megha Girdhar

Owners: Neeraj Kumar & Rakesh Bansal Name of the Restaurant : RED CHILIS- fast food restaurant

Location: Rajori Market, West Delhi

Estimated Project Cost: Rs. 1,81,50,000

Area : 3000 sq. foot

Time Duration: will commence within 60 days

The restaurant will be owned by Neeraj Kumar and Rakesh Bansal, the creator and managing member of the company, Paras Pulp Pvt ltd. Red Chilis will be a moderately priced, high-end, fine dining restaurant with the down home theme. It will be serving vegetarian and non-vegetarian food, Main Cuisine consisting of Indian, Chinese, and sub continental dishes. Restaurant will be leasing 3000 square foot located in Rajouri Market The dcor of Red Chilies will be featured with wood accented construction and the glass dining tables will be surrounded by heavy wooden chairs that will be accompanied by leather seat covers

The restaurant will be opened 7 day a week. Mon fri: 11am to 10 pm Sat sun: 12 am to 12 pm
The estimated cost to open the restaurant is Rs 1, 81, 50,000. Project will require approximately 30 days completing.

The primary objectives of the business plan are:

To become a premier home-style restaurant in Rajouri market, west Delhi To provide high quality meals at reasonable prices with wonderful Experience.

Our Mission is to provide a different, unique and relaxing dining experience the one similar to dining at home. We will try to achieve this goal by: By providing simple, delicious menu items incorporating with quality ingredients at reasonable prices. By treating each and every member of staff and our customers with dignity and respect just like- we would at our own home!

Hiring Top-notch chefs and training them, so they remain top in his game and paying them top wages to ensure they stay with us. Providing excellent product and service, which builds customer loyalty. Word of mouth marketing, every customer who comes in once should recommend us and want to come again.

According to our business plan of red chili restaurant, our restaurant will be open all 7 days in the week and therefore if planned to go for multiple shift system for our employees .that is as follows Mon-Friday 9 am to 11pm Saturday Sunday 10am to 12pm In both the shifts we planned to keep 3 cooks with one head COOK or you can say cook team manger. 3 waiters, one general manger, 1 gate keeper, 2 cleaning persons.
Managers full time Cashier full time Cook - shift wise Cleaning person permanent Gatekeeper permanent

For the suppliers of raw materials our partners have established relations with some qualified suppliers. These will insure ours of delivering the required products to ours at low price without most quality. These suppliers are local shopkeepers in Rajouri but are known for their products in that area.

 Some

of the systems we thinking to use for the purpose of management control system are as follows Order guide Weekly inventory Daily inventory tracking

 Weekly

prime cost report Daily cash control Purchasing records / payables Payroll processing Future service

Position Food Service Manager

Salary 30,000/month

Experience 1-5 years

Job description Manage, coordinate and organize the daily operations Look for customer problems Handle sudden problems i.e. inventory problems, complaints Serve customers Take orders Solve issues Ensures the place(table) clean Billing Taking food orders in the absence of managers Ensures transactions are done properly Clean the tables after customers finish with their food Complete restaurant cleaning in the morning and after closing Solve any issues during any damage. Greeting customers while they come in and go out Help in parking with the vehicles Protection from any unwanted people to enter the restaurant premises

Working hours 10 hours

Entry Level Education High school diploma

Waiter/Waitress

7,0001-3 years 10,000/month(dep ending upon experience) 25,00028,000/month 2-4 years

12 hours

Cashier

10 hours

Cleaner

3,000-5,000/month 0-2 years

12 hours

10th and 12th pass Even college students(gradu ates) can apply Should be graduated Good with calculation and numbers No specific education level required

Security Guard

12,00015,000/month

1-3 years

12 hours (day No specific and night education shift) level required

Indian restaurant industry is worth Rs 75000 croresannual rate of 7% As per Indian Restaurant Market Analysis, this section is expected to grow at a compounded annual growth rate of about 33.6% during 2010-2013. Major companies include- KFC, Pizza Hut, Zen at Leela Palace, Karavali restaurant at The Taj, Sakura at Metropolitan Hotel in Delhi, etc.

This Restaurant Industry comprises establishment primarily engaged in providing food services to patrons who order and are served while seated (i.e., waiter/waitress services) and pay after eating. The Industry consists of full service restaurants(FSR) and limited service eating places which includes Quick service restaurants (QSR) like buffets, snacks bar, cafeteria, and nonalcoholic beverage bars. FSRs depend on high-margin and finance. Whereas, QSRs rely on proficient operations and high volume sales.

 Annual revenue per worker is under Rs 31,00,000. Since this restaurant industry is highly competitive, so the site selection is also critical. MARKET SIZE- The Indian restaurant industry includes 1.5 million restaurant approx.. of which slightly more than 4,000 restaurants form the organized segments with combine annual revenue of about Rs75,000 crores in year 2012-growing at annual rate of 8%.

The Major competitors of Red Chilis are: Bukhara resturant Spice Route Punjabi by Nature Karim's Chor Bizarre MotiMahalDelux The major target of consumer for the initial phase of Red Chilies fits the profile of an average to high-income earner, with a clean, healthy and fresh lifestyle orientation.

Red Chilies will place itself as a high end fine dining restaurant with the down home theme We are using POS system (Integrated software system for restaurants and bars) We can focus on cost savings and various changing trends of the industry. We tend to provide job opportunities to the students

At Red Chilis we are proactive with the employees by reviewing their performance and giving them appraisals We are linked to various social media such as Facebook, Twitter

Strengths Central location of West Delhi which is easy to access and reach 2. Caters to fine dining experience 3. As the owner have industry experience, thus very well know as to how to treat the customers in exceptional way 4. Experience and reliable staff with Can Do attitude 5. Focus on Menu Reengineering 6. Serves food made of quality ingredients
1.

Weaknesses 1. Retention of the employees due to tough competition in the market 2. Difficult to capture the customer insights and demands

SWOT
Threats 1. Government mandatory regulations regarding the health safety, employee safety, healthy environment job, wages etc. 2. Reduction in profits due to decreasing sales or increase in operating costs 3. Consumer perception (Outside food is not safe for health) 4. Other stores and general/convenience stores nearby in the market

Opportunities

1. Less barriers to stop from entering into the markets 2. Outdoor catering services (addition basis)

Tactics: First creating awareness about our restaurant that is by setting up logo and signage Secondly greeting the customers with the services Programs: Employee training on the basis of the customer service

Red Chilis is going to offer quality home style food just in the way the food is offered at home with the price range that dosent increase the standard price Price range: 450-700 Prices are as such that are easily acceptable by the customers as we focus on seasonal menu and also we are planning for the menu reengineering so that we can achieve the customer satisfaction with high profits.

 The

competitive edge of Red Chilis is the human resources that are there in the restaurant (let it be the staff members, workers, cleaners etc.). In our restaurant the meals, services and other things are possible because of the staff members present in the organization. This is our goal to hire those team members that are loyal, honest, hardworking and punctual with good communication skills, know the way to handle customers

We will employ strong marketing efforts in achieving our set up goals. Goals can be achieved by the following means: Database Loyalty/Birthday club program Menu Re-engineering Donations/Charities Develop relationships

The profitability at our restaurant varies according to the individual profit gain by the various dishes. We also focus on cost accounting and inventory management for the profitability By maintaining the cost report and the cost accounting of the restaurant we are able to see for the costs of goods and as to how much have to be paid to the labor.

 Location
Word

of Mouth Direct Mail Newspapers Television/Radio

 Surveys

found that very less customers complain about the problems that they face with the management. If the complaints are serious then they will be documented in the file and customers feedback will be taken at the end of their meal during billing.

 Basic

assumptions:

Meals price range b/w: Rs.400- 750 Average price of lunch: Rs.440 Average Price of dinner: Rs.690 Seating Capacity: 90 seats Employees : 20 Target revenue: Rs.4 to 6 cores

Start-up expenses Restaurant logo and name creation Lease Deposit Contingency Outdoor Sigh Building improvement

Amount(Rs) 50,000 60,000 500,000 150,000 25,00,000

Working capital
Pre opening expenses

86,25,000
740,000

Total Start-up Expenses

1,26,50,000

Start-up Assets

Amount(Rs)

Artwork 5 A/c + 4 LCD Kitchen fully equipped (hood,small wares, burner, work table, utensils etc)

40,000 7,60,000 16,85,000

2 freezers
Liquid fire Protection System 20 wooden dinning Tables 90 wooden chair 20 track lights Table cloth, napkins Big Dish washer 20 Quad Food processor/blender Ice maker having storage Decor 2 Computer system POS system( cash register)

3,00,000
4,00,000 10,00,000 2,50,000 50,000 60,000 3,50,000 45,000 2,00,000 1,00,000 85,000 200,000

Total start up assets Total Start up Cost Required

55,25,000 1,81,50,000

Source of fund Owners fund Bank loan

Amount(Rs) 87,00,000 94,50,000

Total source of fund

1,81,50,000

Use of fund Building Improvement Restaurant assets Administration expenses Promotional Expenses Other Expenses Working Capital Contingency fund 25,00,000 55,25,000 740,000 200,000 60,000 86,25,000 500,000

Total use of funds

1,81,50,000

 Estimated

Sq Feet area: 3000 Avg. lunch price: Rs. 440 Avg. dinner price: Rs.550 No. of seats : 90 Per Day sales projection (assuming 250 customer per day)
Customers Lunch Dinner Total 100 150 250 Avg. price meal(Rs) 440 550 for Sales 44,000 82,500 1,26,500

Per day sales for 250 customers will be Rs.126500 Avg. monthly sales: Rs.37, 95,000(126500* 30)

Annual sales: Rs.4,55,40,000 (37,95,00*12) Annual sales per sq. foot: Rs.15180 (45540000/3000) Annual sales per seat: Rs.5,06,000 (45540000/90)

We are expecting, 5% increase in sales revenues for next 3 years annually.

Particulars Income Sales COGS Gross profit Expenses Salaries & wages Rent

Year 1 In Rs.. 4,55,40,000 (2,01,65,000) 2,53,75,000

Year 2 In Rs. 4,78,17,000 (2,07,88,000) 2,70,29,000

Year 3 In Rs 50207,850 (2,13,30,000) 2,88,77,850

1,13,50,000 6,00,000

1,16,15,000 600,000

1,1710,000 600,000

Insurance
Bad Debts Legal/accounting Miscellaneous Total Expenses

400,000
12,00,000 600,000 600,000 2,33,75,000

500,000
12,50,000 600,000 8964000 2,35,29,000

550,000
13,00,000 600,000 9693850 2,44,53,850

Net profit

20,00,000

35,00,000

44,24,000

Year 1 Assets Current assets Inventory Account Receivables Cash 7,00,000 46,75,000 44,00,000 In Rs..

Year 2 In Rs.

Year 3 In Rs.

735000 45,09,000 4620000 6798750 7586,000

790150 42,59,650 4966500 7308650 8155200

Other Current 64,75,000 Assets Long term Assets 72,25,000

Total Assets
Liabilities and Capital Capital Liabilities Account Payable

2,34,75,000

2,42,48,750

2,54,80,150

14,50,000

1522500 1496250 95,22,500 11707500

1636700 1608450 96,50,000 12585,000

Other current 14,25,000 liability Long term Liability 94,50,000 Capital invested 1,11,50,000

Total Liabilities

2,34,75,000

2,42,48,750

2,54,80,150

Risks associated with out restaurant are employee practices liability, employee dishonesty and product liability. Two hazards which can quickly drive restaurant into bankruptcy are- damages caused by fire and damages being linked to a food borne illness. The main objective of Red Chilis is to develop a risk management plan to minimize all potential safety and security risks; to maintain a positive public image.

We need to provide a safe working environment as well as prepare and train for the unforeseeable accidents, damages etc.