FRIENDS CAF

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
Owners Fund Loans Total Financing

35,00,000
25,00,000 10,00,000 35,00,000

Cost of Goods Manufactured

2013

Total Direct Labour

Total Direct Materials Manufacturing Overhead

1,30,000
1,60,000 75,000

total

3,65,000

Projected Balance Sheet as on December 31, 2014 Liabilities Owners Fund Loans Reserves & Surpulus Current Liabilities Payables 4,00,000 25,00,000 10,00,000 3,90,000 Current Assets Receivables Cash In Hand 1,00,000 5,50,000 Assets Land & Building Plant & Machinery 18,00,000 12,00,000

Cash At Bank
Total 42,90,000 Total

6,40,0000
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. We would be getting 1 month credit facility from suppliers.

Payables

ESTIMATED PROFIT & LOSS STATEMENT

Year One Sales Less cost of sales Gross profit Less expenses Net income before taxes 268,783 224,740 44,043 624,318 243,404 380,914 986,846 345,690 641,156 2,364,839 2,096,056 Year Two ,202,645 4,578,327 Year Three 7,591,132 6,604,286

Provision for
taxes Net income after taxes

9,043

76,184

145,751

32,900

304,730

495,405

FINANCIAL PROJECTIONS: BREAK EVEN ANALYIS

1/20/2013

1200 1000 800

Revenue

Break-Even TR = TC

600 400 200 0 0 20 40 60 80 100

} Variable Cost

Fixed Cost Total Cost Total Revenue

Units Sold

Total Fixed Cost 15 B/E(Quantity) = Price per Unit Var. Cost per Unit

You cant 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 Caf 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 Cafe manager Head baker Salary 35,000 p.m 20,000 p.m

Assistant Bakers
Stewards

12,000 p.m
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 PS

Products/Services

Breads-various varieties Buns Tarts Muffins Cookies Sitting area with coffee/tea and in-store products

MARKETING MIX

Price

Cost plus pricing. but still competitive

Promotion

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 Newspaper Pamphlets Other Billboard sponsorship Promotion and Development Business cards Travel expenses Total Marketing Expenses 1900 15000 91,900 15000 40000 Expenses/year -20000

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 additional stall at the Saskatoon farmers market craft sales throughout the province

Methods

CONCLUSION

THANK YOU