N. R.

Institute of Business Management

GLS University

Business Plan
On
Food truck
(In partial fulfillment of PROM Subject under two years MBA Course of GLS University)

Subject: Entrepreneurship Development

Submitted to: Prof. Kalagi Shah
Submitted by:
1. Sonia Sebastian (NR 15186)
2. Jaysheel Patel (NR 15109)
3. Nisarg Nenugi (NR 15084)
4. Hetvi Dhanak (NR 15026)
5. Mansi Dave (NR 15020)

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Contents
1. Executive
Summary...Error!
Bookmark not defined.
2. Description of the Business4
2.1 Objectives4

2.2Scope4

2.3Vision5

2.4 Mission.5

3. Description of Industry..........................................................................6

3.1 What is fast food? .............................................................................................................6

3.2 Fast food industry overview..6

4. Marketing Plan...9

5. Financial Plan...13

6. Organizational Plan.20

7. Operational Plan...23

8. Conclusions & Recommendations..24

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 Executive Summary

Introduction

Our business is of supplying food to the potential customers. This business is a successful
business as the food sector is profitable sector. The business will be on a wheel that is a moving
vehicle will be our asset and we will supply food in different areas. Our idea is a double decker
bus wherein the ground floor will be kept for ordering and the first floor will be designed so
that the customers can sit, relax and have their food. The customers can order their food and
have it upstairs in the bus itself. We are trying to bring a unique concept in Ahmedabad. We
believe that this we be easily accepted by the youth.

Objective

Our main objective will be to provide good to consumers keeping in mind all the classes of the
society. We also will see to it that that we take care of the hygiene facilities and use all the
fresh eatables. We would also want to give them all the facilities that we can.

Marketing strategy

We are very new in our business. It is a type of startup. We would try our best to spread about
the business through advertisements and hoardings. We will also create a page on social media
through which we can get to the acceptability of our new idea. The places that we have thought
are happening and cool ones where most of the youth of Ahmedabad are seen. Our main target
will be the youth because youth population is more and they readily accept the new ideas.

Service

We assure you about providing good services to all the consumers. We have good members
that are well aware about the etiquettes and mannerisms. We dont need that much of staff we
members are enough for this business and assure u about the perfect services.

Growth of business

We have a lot of competition but we can distinguish ourselves from others as we are on wheels,
we are moving and providing food as well as we give facility in the bus itself to sit and have
your food in the vehicle itself so this is unique in Ahmedabad. There is no one doing this type
of business. This business will grow eventually as this will gain popularity as time passes. This
business will attract the eye of the consumers and food business that is unique will grow.

Conclusion

Finally, we would want to make u aware that we are well acquired with all the skills needed
for this business and we would love to hear about it from you.

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 Description of Business
2.1 Objectives:

Customer satisfaction is our prime objective.

Keeping food costs at less than 40% of revenue.
Promoting and expanding the restaurant concept as a unique restaurant.
Expanding our marketing and advertising in whole Ahmedabad to increase our customer
base.
Being the most recommended food joint.
Providing a variety of different food every day to our customers so you never get bore
Every three months on people demand changing the menu and bringing the eaters to
manufacture and provide the customers with the quality products to the best interest of the
customers.
To create Price competitive Products as part of the effect to increase the world access to
high quality chocolates.
To ensure a hygiene & clean working environment as to continue to produce Safe & Tasty
Products
To strive to Meet & Exceed Customer's Expectations so as to ensure a sustainable business
relationship.

2.2 Scope of business

Food business can never fail in Ahmedabad. Culture and cuisine are two highlights of the city
of Ahmedabad, and not necessarily in that order. Food is so large a preoccupation that places
in New Ahmedabad are actually known by the restaurants located in the area. Eating out is the
most popular form of entertainment and has been in vogue since times immemorial.

In the past, when the city was confined to Old Ahmedabad, Manek Chowk was the prime area
for eating out. At that time there was no concept of restaurants and street fare was the order of
the day. Then slowly the restaurant concept settled in. We want to provide food on wheels that
is our concept.

To be specific we have selected three areas of Ahmedabad which will cater to our business.
They are 1.IIM Ahmedabad- we selected this place as it is a happening place for the youth of
Ahmedabad. Lots of youths come to this place, and anything unique is accepted easily by the
youth which will benefit our business.

2. S.G highway- Well again this is a happening place of Ahmedabad. Here people of all age
groups can be targeted. It is a favorite place to hang out.

3. Different college campuses- Here again the youth is targeted. Well the youth likes to have
food outside the most.

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This business will be profitable as providing good food is a need, and people are ready to shell
out money for food. Our main focus is the youth as the youth is the lifeline of Ahmedabad.
Todays youth is spending abundantly on food and hence it is a profitable business.

2.3 Vision

Our vision is to be the leading fast food chain in Ahmedabad and get up to that peak of being
the most successful food joint.

2.4 Mission

We seek to produce high quality products at competitive price using modern technology to
provide high satisfaction to the consumers.

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 Description of Industry
Introduction
The concept of fast food isn't new. Early in the 19th century, at the start of the Industrial Age
when people had to work 12 to 14 hours a day, there was scarcely any time for long breaks for
eating. The first snack bars and kiosks arose in front of factories. Today, quick meals outside
the home have become an essential part of our lifestyle.

3.1 What is fast food?

The term "fast food" means just that. However, the boundary between fast foods and traditional
dishes is fluid. In particular, it's difficult to provide a qualitative distinction because fast foods
can also include salads and fruit in addition to classic offerings such as hamburgers, hot dogs,
sandwiches, patties, French-fries, fish and chips, etc. The best way to distinguish fast foods is
to use formal characteristics:
Time required - those who eat fast foods do not want to spend a lot of time selecting
and eating, and if necessary will eat standing or walking, on the bus, park bench, or at
work.
The variety of foods and beverages is usually very limited
Fast food frequently does not come with knives and forks, making it "finger food."
When silverware, cups and plates are necessary, they are disposable.

The characteristics of fast food, therefore, are that they require little time, offer a limited
selection, are finger food, and the silverware and plates are disposable. These characteristics
readily illustrate the difference from traditional dining culture.

Many people equate fast foods with convenience foods. This is incorrect since convenience
products are often eaten at home. They require active participation because they must be heated,
stirred, baked, thawed, etc., and are supplemented with other foods.

There are three general categories of fast food businesses:

Self-service restaurants with a fast-food palette like McDonalds, Wendy's, Burger King, Pizza
Hut, etc.
Take-out (or take-away) businesses that sell ready-to-eat foods and beverages "on the street
corner" Hot-dog stands and snack stands with counters or a pair of stand-up tables.

3.2 FAST FOOD INDUSTRY OVERVIEW

Fast food is a food prepared and served quickly at a fast food restaurant or a shop. It is served
usually in a carton or bags in order to minimize cost. Fast food outlets often provide take away
or take out foods in addition to sit down services. Fast food is a multi-billion industry
continuing to grow at a rapid pace in coming years.
Fast food is often highly processed and prepared in an industrial fashion i.e., with standard
ingredient, methodical cooking and production methods.

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India emerging market for global players

The percentage share held by foodservice of total consumer expenditure on food has increased
from a very low base to stand at 2.6% in 2001. Eating at home remains very much ingrained in
Indian culture and changes in eating habits are very slow moving with barriers to eating out
entrenched in certain sectors of Indian society. Traditionally, eating out was looked down upon
in Indian society. The growth in nuclear families, particularly in urban India, exposure to global
media and Western cuisine and an increasing number of women joining the workforce have
had an impact on eating out trends. Increasingly, eating out is becoming synonymous with
entertainment. And very often, it is preferred as a time-saving option to cooking. Not
surprisingly, takeaways are becoming increasingly popular.

India is among the top three countries globally having highest number of people in the spending
capacities in the age group of 25-49 yrs.
India is placed at the second rank in the 2004 global retail development index an annual ranking
of retail investment attractiveness among 30 emerging markets. The lack of consolidation and
model retail concepts in India presents better opportunity to global players. Over 400 shopping
malls, multiplexes, fast food giants, restaurants etc. Are in planning or construction stage across
the country

Market size and major players

Dominated by McDonalds having as many as 75 outlets.
Dominos pizza is present in around 100 locations.
Pizza hut is also catching up and it has planned to establish 125 outlets at the end
of 2005.
Subways has established around 40 outlets
Nirulas is established at Delhi and Noida only. However, it claims to cater 50,000
guests every day.

Major players in fast food are:

MCDONALDS
NIRULAS
PIZZA HUT
DOMINOS PIZZA

Multinational fast-food companies have given domestic competition a run for its money. While
McDonalds sells more than Nirulas, Pizza Hut and Dominos are doing more business than
Pizza Corner. Within nine years of their existence in India since 1996, the multinationals have
grown at a faster pace than their Indian counterparts. According to industry estimates, in 2001,
while McDonald's clocked a turnover of about Rs 125 crore (Rs 1.25 billion), the home-grown
Nirulas, which has been present in the country since 1934, could only garner Rs 100 crore (Rs
1 billion) turnover.

The main reason behind the success of the multinational chains is their expertise in product
development, sourcing practices, quality standards, service levels and standardized operating
procedures in their restaurants, a strength that they have developed over years of experience
around the world. The home grown chains have in the past few years of competition with the
MNCs, learnt a few things but there is still a lot of scope for improvement.

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Trends in Indian Market
Marketing to children's: fast food outlets in India target childrens as their major
customers. They introduce varieties of things that will attract the childrens attention
and by targeting childrens they automatically target their parents because Childrens
are always accompanied by their parents.
Low level customer commitment: Because of the large number of food retail outlets
and also because of the tendency of customer to switch from one product to other (as
food is one areas where customer wants to try everything new that comes to the market),
this industry faces low level customer commitment.

Attracting different segments of the market: Fast food outlets are introducing varieties
of products in order to cater the demands of each and every segment of the market.
They are introducing all categories of product so that people of all age, sex, class,
income group etc can come and become a customer of their food line.

Value added technology services: There is continuous improvement in the technology as

far as fast food market in India is considered. The reason behind that is food is a
perishable item and in order to ensure that it remain fresh for a longer period of time,
there is a need for continuous upgradation in technology. Earlier, Indian people prefer
eating at home but now with the change in trend there is also need for improvement and
upgradation of technology in food sector.

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 Marketing Plan
Trends in Consumer Preferences

The range and variety of fast foods available seems to be growing day by day, which
leads to lot of impulse sales for fast food joints.
Quality foods which used to be unaffordable are now considered mid-priced.
Unique food items like basket chats, live dhokla-handva have become popular.
Variety of foods offered is making the consumers more choosy.

Barriers to entry

Huge startup costs

Ensuring good quality products to the customers
High Level of competition from the well established brands
To keep price of the product low, as it is a price sensitive market

Overcoming the barriers to entry

To overcome the barrier of huge start up costs our van/truck would be taken for lease
for first few years of business.
Marketing of our products would be on the basis good quality and healthy products to
provide a competitive advantage.

1. Description of the business

Our project is on the food industry mainly in Ahmedabad. Locally we will be providing
good food to the consumers at affordable rates. Our main aim is consumer satisfaction. As
consumers are searching for good food at minimal rates so we will try our best to cater to
these needs.

2. Target area
Our targeted consumer will mainly be the youth then corporate companies and middle class
families. The youth is craving for good food and the idea of meals on wheels will first
attract the youth. The maximum population is of the youth & teenager and they are ready
to shell out their money on food. We being a mobile food provider we would also like to
target corporates who during their events can contact us.

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In order to feel customer special, we will write their name on their Serving Cups.

3. Market research
As it is just a start-up we have consulted our seniors and friends. We all know that the food
sector is the most profitable business. It will only expand as time passes. We want to keep
it small for now and will want to expand if profitable. We have observed the spending
capacity of the youth and we also belonging to that same age group know that we too spend
more than half of our pocket money on food and are always in search of unique places to
eat.
4. Consumer preferences and areas of improvement
The consumers mostly prefer good and hygienic food at affordable prices. The main need
of the consumers is a comfortable place where they can hangout as well as have food.

We could improve on our ambience and would want to establish our business more and
more as soon as possible. We could also increase the areas we are covering for profit.
Currently we have thought of three places but we can increase the areas or fix a good place
and be well known in that area and then shift to another area.

5. Growth of business
We have a lot of competition but we can distinguish ourselves from others as we are on
wheels, we are moving and providing food as well as we give facility in the bus itself to sit
and have your food in the vehicle itself so this is unique in Ahmedabad. There is no one
doing this type of business. This business will grow eventually as this will gain popularity
as time passes. This business will attract the eye of the consumers and food business that is
unique will grow.

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6. Strength & opportunities
We will provide reasonable customer satisfaction. We will provide tasty and hygienic food
in a clean and neat dining room with washing and toilet facility. With a reasonable rate &
quantity. All the members of management team are properly qualified for this sector. We
have adequate knowledge about renowned restaurant services all over the world.

7. Weakness & threats

Lack of Ambiance. The restaurant is new and not established. Loan burden. We have
limited owners capital funds. Space for low profit margin. High competition.

8. Future growth
The future growth of the business is possible only if we stand up to the expectations of the
consumers. The consumer spending in future is only going to increase seeing the current
scenario. Hence the business will be profitable in the future as the prices are increasing,
there is inflation so the business has a bright future.

9. Prices
We will always try to keep the prices reasonable. The consumers are willing to pay good
for food. They do not mind spending on food. Even if the prices increase in future the
consumers will be willing to pay for food.

10. Role of the business

Our role will be to benefit the consumers. Provide them with good food and to establish a
good name in the market. We believe in word of mouth.

Marketing strategies:-

Product advantages:-

Raw materials are being purchased directly from factory which reduces the cost of the
materials.
Because of having experienced chefs the quality of our product increases

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 Serving fresh food that is not only good to the taste buds but is also balanced &
nutritional.
Having consistently high quality food , service , speed and atmosphere
Nutritional value mentioned in the varied food items.

How customers will be attracted:-

The vehicle is a super fascinated place to dine in as in the place and the ambience itself
will attract people.

Regularity in services and regularity in time is a peculiarity of our theme.

By creating an appealing and an entertaining environment with unbeatable quality at an

exceptional price.

To promote Western countries breakfast methods, superior service and exciting

concepts to draw in local repeat customers.

Membership card.

Extra 10% discount will be given to seniors and to the college students (just show your
proof of being a student) to attract the city.

By providing promotional coupons.

Promotional method:-

We follow all these given below promotional methods to prosper our business at a faster pace
and also satisfy our customers with quality food.

Billboard Advertisement
Distribution of pamphlets
Banners and small posters in the sectors
Sponsorship in college and office festivals

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 Internet Marketing (Face book, twitter etc)
SMS strategy (register either on the website, Social networking site or at the outlet )
Local news paper
Local TV channel
Local radio Station

Niche

Our niche market would be the children and young generation as fast food is mostly liked by
children and youngsters.

Marketing strategy for niche market

Attractive packing: Our Company will focus on packaging to attract children.

Good quality and healthy chocolates are the factors on which marketing will be done.

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 Financial Plan

Required Financing

As we enter the market we need a capital of 35 to 40 lacs. We are very new in the market so
this much amount will be required to start the business. As we start we need to advertise about
this new venture. And we need reserves if in case of any problem as we are not sure about the
future losses. We cannot say that the business will make only profits, any problem can come
up hence we must be prepared well in advance for this we need finance to tackle all the expected
losses or problems.

To be specific Our financial model is based upon concept plan for the worst , but
manage for the best
Advertising budget
First 4months (50000)
Next 3months (20000)
Remaining months (5000)
Costs allocated to new business enterprise are as follows

Other fixed assets

Sr. No. Particulars Amount

1] Food truck 25,00,000

2] Furniture 1,00,000

3] Layout/decoration/painting 50,000

4] Computer 18000

5] Cooking equipments 2,00,000

6] Office equipments 10,000

TOTAL 28,78,000

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 MACHINARIES

Sr. No. Name of Machine Qty. No. Value

(Rs.)
(1) Microwave 1 10,000
(2) Cooking instruments _ 1,26,000
(3) Grill machine 2 16,000
(4) High Tech Blenders 1 5000
(5) Refrigerator 1 40,000
(6) Juicer 1 3000
Total cost of machinery 2,00,000

Fixed cost

Sr. No. Particulars Amount

1] Rent 1,80,000

2] Legal formality 50,000

3] Insurance 10,000

4] Advertisement exp 95,000

TOTAL 3,35,000

Variable cost

Sr. No. Particulars Amount

1] Salary 3,12,000

2] Fuel 4,80,000

3] Repairs & maintenance 72000

4] Raw materials 4,80,000

TOTAL 13,44,000

Total cost = fixed cost +variable cost

3,35,000+13,44,000

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 = 16,79,000

Projected Profit & Loss A/c (1st Year)

Amount Amount
Particulars (Rs.) Particulars (Rs.)

To
Gross
To Salary A/c: profit 10,00,000

Chefs 2,16,000

Driver/cleaner 96,000

3,12,000

To Depreciation:

Plant & Mach. 20,000

Other fixed
asset 40,000

60,000

To Indirect Exp.:

Misc. Exp. 10,000

Insurance Exp. 10,000

Legal Fees Exp. 50,000

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Rep. & Other
exp 72,000

Advertisement
exp 95,000

2,37,000

To Net Profit 3,91,000

10,00,000 10,00,000

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 Projected BALANCE SHEET (1st Year)

Amount Amount
Liabilities (Rs.) Assets (Rs.)

FIXED
Capital Accounts: ASSETS:

Partners 3500000 Truck 2500000

Secured Loans: Machinery:

Total 200000
-
- dep. 60000 140000

Furniture & Fixture: 100000

Unsecured Loans: Computers: 18,000

Other Fixed Assets:

Cooking
Equipment 2,00,000 2,00,000

Office
equipment 10,000 10,000

Net Profit 3,91,000

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 Cash - in -
hand: 911000

Cash Balance

Stock - in -
hand:

Closing Stock 12000

3891000 3891000

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 Organizational Plan

Jaysheel Patel (Director) Amount of share: 30%

Responsibilities:-

Monitoring progress towards achieving the objectives and policies.

Talking to managers and staff about how the business is performing.
Ensuring that they have access to up-to-date financial data that can be used to assess
the companys performance.
To find the finest staff who love their work.

Sonia Sebastian (General Manager) Amount of share: 20%

Responsibilities:-

Taking responsibilities for the business performance of the wheels.

Analyzing and planning sales level and profitability.
Preparing reports at the end of the week including staff control, food control and sales.

Hetvi Dhanak (Sales & marketing manager) Amount of share: 15%

Responsibilities:-

Organizing marketing activities, such as promotional events and discount schemes.

Setting budgets and agreeing them with senior management for advertisements.
Delivering of the wheels concept to the target market to increase the customers.

Nisarg Nenugi (Human Resource manager) Amount of share:-15%

Responsibilities:-

Responding to customers complaint.

Ensuring that all the workers follow companies uniform standards.
Recruiting, training and motivating staff.

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Mansi Dave (Food & beverages manager) Amount of share:-10%

Responsibilities:-

Planning and coordinating menu.

Advising customers on menu choice.
Organizing and supervising the shifts of kitchen waiting and cleaning staff.
Checking stock level and ordering supplies.

Different skills required in the business

Different skills required in business are as follows

People skills:-You need to be good with people, because you will have different
customers almost every day, you will have repeat customers who have higher
expectations, a high-maintenance shift based staff to manage, suppliers who wont
always meet your expectations or timeframes and creditors who want their money now.
Accountancy skill:-You will have to balance the books, arrange the daily banking
arrange for staff wages to be paid, manage your ratio of costs to profit margin, manage
your BAS payments pay your creditors on time.
Creative skill:-You will need to monitor your advertising campaign, create
promotions, change the menu periodically and provide an atmosphere that is conductive
to return patronage.
Management skill:-You will need to maintain the security and stay ahead of any
potential problems or conflicts. You will need to manage: unhappy customers, the
cleaners, the new staff, the old staff, the part time staff and the chef.
Human resource skills:-You will need to adjust staffing levels to meet customer
demands, you need to manage your shift manager and have extra staff available on a
call.
Negotiation skill:-You need to handle any number of people including the landlord,
your silent partner, health inspector and your suppliers.

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15) Appendices

Laborer Resources Employee Resources

Selection
Board
(Selection Process)

Selected Selected
Labor Employees

As we achieve profits we would like to expand our start up and have a selection board that
would select the laborers and the chefs for our food truck. We have plans to expand it into a
restaurant and provide a range of delicacies to our long term customers.

The selection board would take care of both requirements that is the labors and the employees.
We wish to expand it into a restaurant and achieve that peak of success.

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 Operational Plan
In food truck there is no as such an operational plan as the bus will have all the facilities for
cooking the food and proper sitting areas for our customers.

The food will be cooked as per the order received and served fresh. All our efforts will be put
in to make our customers feel comfortable and relaxed and our aim will be to provide delicious
food.

If we receive enough profits we wish to expand our food joint into a restaurant.

Our Distribution Channel

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 Conclusion and Recommendation:
Conclusion:

This type of start or a venture of a new business gives varied growth to the business. As such
any business based on food will definetly lead to prosperity in business different items
nutritional value and cooperation among staff and coordination with customers is to only key
to a successful business.

"Your idea on wheels would be a unique marketing strategy wherein our eaters will get a
chance to send their special dish on our menus. In this our customers can send us their best
recipe and we will shortlist any 1 per week .And for that 1week that customers dish would be
kept in special counter depending on the thumbs up given to that particular dish 1would be
selected out of the month and will be include in our menu till the next time the menu doesnt
changes. this will in short happen 4tyms in a year ,the customers whose dish gets selected
wins a hamper from us.

Recommendation:

By doing smart and hard work ample of prosperity can be obtained with this business.
You should hire employees who genuinely enjoy their jobs.
You should continuously keep on assessing quality of all aspects mentioned above.
Interacting with customers personally, so they know there feedbacks goes directly to
owners.
Evaluate food choices for popularity.
Future plans:-Our future prospects includes
To slowly increase the staff and the work time from 7pm till 24 hours
The only difference the when will close at 10 and after that there will be only home
delivery of our dinner specialty 10pm-5am home delivery. Parcel only above 300rs
and also 5rs per km
slowly build the same name in the other cities of Gujarat with the same pride , same
honour.
Launch a interactive website where we show how all are dishes can be cooked (only
for registered member , registration fees 500rs)
Like a franchise open it in different cities of our country & slowly start a sister
franchise of meals on wheels in the form of restaurants.

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