Business Plan of Paker Ghor

Business Plan of “Paker Ghor”

Entrepreneurship Development
BUS 416

Prepared for
Jasmine Jaim
Associate Professor
Institute of Business Administration
Jahangirnagar University

Date of Submission
7th January 2017

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 Prepared by

Md. Asiful Hasan

ID: 1787
Diponkar Bhowmik
ID: 1806
Naurin Jahan
ID: 2051

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 Letter of Transmittal

1st January 2017

Jasmine Jaim

Associate Professor

Institute of Business Administration

Jahangirnagar University.

Subject: Submission of Business Plan

Dear Madam,

We would like to submit our business plan of our restaurant named “Paker Ghor” for partial
fulfillment of Entrepreneurship Development course of 7th semester of BBA program. It has
been a great contentment for us to have the opportunity to apply our academic knowledge in
practical field. This business plan was prepared on the basis of the theoretical and practical
learning from this specific course of BBA program, group discussions and secondary data.

We respectfully want to thank you. We couldn’t have prepared this without your cooperation.
Thank you for your kind cooperation. We will be happy to get any kind advice from you
regarding the business plan.

Sincerely,

Md. Asiful Hasan, ID: 1787

Diponkar Bhowmik Dip, ID: 1806

Naurin Jahan, ID: 2051

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 Acknowledgement

This report is a product of one month of queries and involves many peoples’ considerable
attention on it. We would like to take the opportunity to thank those people without whom this
task would have been rather very difficult to complete.

First, we would be thankful to the Almighty. We also thank our course instructor, Jasmine
Jaim, Associate Professor, Institute of Business Administration, Jahangirnagar University, who
has guided us so kindly all the way through our semester. Her wise guidance and clear direction
made us to do this study perfectly.

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 Contents
Executive Summary............................................................................................................................... VII
SECTION I: BUSINESS DESCRIPTION ............................................................................................. 1
1.1 General description of the Venture: ............................................................................................. 1
1.2 Industry Background: .................................................................................................................... 2
1.3 Company History:.......................................................................................................................... 3
1.4 Growth Potential of the venture: ................................................................................................. 3
SECTION II: MARKETING .................................................................................................................. 5
2.1 Research and Analysis: .................................................................................................................. 5
2.1.1 Target Market: ....................................................................................................................... 5
2.1.2 Market size and trends: ......................................................................................................... 6
2.2 Competition: ................................................................................................................................. 7
2.2.1 Traditional Bengali food Restaurants:.................................................................................... 7
2.2.2 Foreign cuisine & Fine dining restaurants: ............................................................................ 7
2.2.3 Fast food Chains: .................................................................................................................... 8
2.4 Marketing Plan: ............................................................................................................................. 9
2.4.1 Sales and Distribution Strategy: ............................................................................................. 9
2.4.2 Distribution strategy: ........................................................................................................... 10
2.4.3 Pricing strategy: ................................................................................................................... 11
2.4.4 Advertising and Promotion strategy: ................................................................................... 11
Section III: Research, design and development segment ...................................................................... 13
3.1 Research & Development: .......................................................................................................... 13
3.2 Cost Structure: ............................................................................................................................ 14
SECTION IV: MANUFACTURING ............................................................................................................ 16
4.1 Location Analysis:........................................................................................................................ 16
4.2 Production Needs: ...................................................................................................................... 16
Section: V: Management....................................................................................................................... 19
5.1 Management Structure Our management structure will be like this: ........................................ 19
5.2 Legal structure ............................................................................................................................ 20
SECTION VI: Financial Analysis......................................................................................................... 21
6.1 Startup Balance Sheet: ................................................................................................................ 21
6.2 Financial Ratios ........................................................................................................................... 22
6.3 Income Projection: ...................................................................................................................... 22
SECTION VII: CRITICAL RISK ANALYSIS .................................................................................... 23
7.1 Potential Problems:..................................................................................................................... 23
7.2 Risks ............................................................................................................................................ 24

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 7.3 Risk Management Strategies: ..................................................................................................... 26
SECTION VIII: MILESTONE SCHEDULE SEGMENT: .................................................................. 28
SECTION IX: Bibliography .................................................................................................................. 29

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 Executive Summary

Every country has its own tradition of foods. Bangladesh has also the same. In the sense of
food habits, Bangladesh is influenced by the regional variations of her history. Being an outpost
of Mughal Empire once, Bangladesh retains its heritage. But within last few years, different
western and exotic cuisines have become popular among the people in this country, especially
in the capital, Dhaka. A remarkable number of restaurants, fast food chains and hotels have
introduced various world famous recipes to us. But in this flow of time, the urban people of
Bangladesh have forgotten the original taste of Bangladeshi cuisine. There are innumerable
special foods and recipes are there in different regions of our country, that many of the urban
people haven’t even tasted yet. Our aim is to establish a fine dining restaurant that will fill up
this gap and serve the people of urban the special and authentic regional flavors in a
sophisticated environment.

The name of venture is Paker Ghor. Bangladesh, especially Dhaka city is a potential place for
restaurant business and that’s why we have planned to establish our first ever branch at
Dhanmondi, Dhaka. If the business grows in near future, we can expand our business and
establish few more ventures at some other potential cities like Mirpur and Uttara. We have a
faith that we can turn our business a successful one within coming 5 years. Since we are
planning for a fine dining restaurant that will not only provide good food but also a
sophisticated environment, so we are targeting a niche market. Our target market will be- upper
class, upper-middle class, middle class, business people and tourists. As this market will be
willing to pay premium for good food and good environment and this market is the one that
searches for the type of food we will be serving.

We are expecting a strong competition from the western food restaurants, other established fine
dining restaurants, traditional food restaurants and fast-food chains in Dhaka. We will be
adopting various selling strategies to attract more and more customers. Our promotional and
advertising strategy is to capture the customers through different social media platforms. We
have given effort for researches so that the business do not fall and can stand up in the industry
successfully. A well-structured ideal management team will be there to make this dream come
true. But of course there will be risks and threats for any new venture like us in the market. We
are strong enough to take proper steps to overcome those difficulties and make Paker Ghor a
top restaurant in the food industry of Bangladesh.

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SECTION I: BUSINESS DESCRIPTION

1.1 General description of the Venture:

Business Name: Paker Ghor

Business Location/s: Dhanmondi, Dhaka.

Contact: 01624207944

Owner/s: Md Asiful Hasan, Diponkar Bhowmik, Nourin Jahan Rinta.

Business Structure: Partnership Business

Business Concept: Traditional Regional Food Restaurant

Mission Statement: To provide happiness and joy through traditional food and environment.

Paker Ghor will provide the dishes from different regions of Bangladesh. The internal
environment of the restaurant will provide Bangladeshi traditional vibe. Our food items will be
from all over the country,

Special feature: Throughout the year specially in in occasional days there will be an
arrangement of traditional art and music performances, like baul and folk music , art exhibition
. For this there will be a specific portion in the dining area.

Products: Followings are food items and dishes will be available in our restaurant

Dhaka Region:

kebabs, naans, kachchi biriyani, haleem, mutton bhuna kichuri, Roust and beef tehari

Chittagong region:

Mezbani, Kalavuna, Shutki related food items

Khulna Region:

Chuijhal, Mug dal with hilsha fish head, dalna, chachchari, luchi-payesh, hilsha with mustard

Sylhet region:

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Tengha (or tok) cooked with vegetables, including amra, defal, olives (belfoi), dewwaa, amshi,
mango choti (aam choti), kul (boroi), hatkhora (or shatkora), ada zamir (ada lembu)

Overall Bengali traditional dishes:

Plain rice ,Chingri Malai curry, Different types of Bhorta, Dal, Chingri vapa, Egg curry, Fish
curry, Sobji curry, Sobji bhaji, Murighonto, Ruti- paratha, Chiken curry , Duck curry ,Shak
bhaji, Chicken pakora, Shahi rezala,Fish dopeaja, Fish korma.

Traditional Bengali deserts:

Doi-chira, Falooda, Chomchom, Kalo Jaam, Roshogolla, Pheerni, Kheer, Halua ( dal, carrot) ,
Jeelapi and Amriti, Shondesh, Shon papri, Khaja, Goja, Jorda, Murobba, bakarkhani

Peetha- Chitoi, Milk Chitoi, Bhapa Peetha, Patishapta Peetha, Chui Peetha, Nakshi Peetha

Bangladeshi Drinks: Borhani, sweet lassi,

1.2 Industry Background:

Food industry is a rapidly growing sector in Bangladesh, employing a significant portion of the
labor force in the country. Between 2004 and 2010, the food processing industry in Bangladesh
grew at an average 7.7 percent per annum. Bangladesh Bureau of Statistics, in its 2006
Economic Census, reported that there were approximately 246 medium-sized food processing
industries employing 19 percent of the industrial manufacturing workforce in Bangladesh or 8
percent of the total manufacturing labor force. The food industry employs 2.45 percent of the
country's total labor force and its share in the GDP was 2.01 percent in 2010. There are also
numerous small scale factories and domestic units engaged in food processing throughout the
country. According to some industry analysts, the food processing sector in Bangladesh is a
4.5 billion US Dollar industry. In 2010, Bangladesh exported over $700 million worth of
processed food and beverages, over 60 percent of them were shrimp and fish products.

Food processing in Bangladesh has traditionally been small scale, with domestic or family
business using common processing knowledge for the conservation and handling of raw
agricultural commodities to make them usable as food and feed. Although commercial scale
food processing using modern technology especially for wheat and rice milling, mustard seed
crushing and very limited bread and cookie manufacturing appeared during the 1960s, the
growth of this sector did not gain momentum in terms of operational scale and quality until the

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1980s. Recently the defining characteristics of the industry has been the processing of
increasingly diverse products to meet the changing demands of the Bangladesh population. The
major food processing sub-sectors in Bangladesh include dairy, edible oil, sugar, rice, wheat,
fruit and vegetable, tea, poultry/beef, pulses and spices and fish processing industries. Induced
by the vigorous growth of the diverse middle class population of Bangladesh and the growing
demands for additional consumption, the food processing sector is set to witness further hefty
expansion in the coming years.

1.3 Company History:

We, the founders of “Paker Ghor” tried to observe the actual food habit of Bangladeshi people
and found out that they always comes back to the original traditional foods of Bangladesh. But
unfortunately there are no opportunity to get those ethnic and regional flavors in Dhaka. We
sat together and thought why there is not a restaurant like that? And that’s how came up with
the idea of this restaurant. We wanted to locate the restaurant at Dhaka because this is where
people from various regions come and maximum of them miss the traditional food items of
different region in a healthy and clean environment. Paker Ghor intends to serve this demand.

1.4 Growth Potential of the venture:

Growth, in all possible directions, is a key priority going forward. Our ambition is to become
a mass brand and serve millions of people. Coming up with a new idea and new way of serving
customers food demand can really stand out in the market. Paker Ghor has the potential to grow
in Bangladeshi restaurant industry. There are many factors that can increase our chances for
success in the areas of planning, location, market analysis, concept, menu, financial feasibility,
staffing, operating systems and more. As restaurant trends go, 2018 is looking to be much like
its predecessor, at least in terms of industry growth and financial forecast. The consumer price
index remains strong, with discretionary income stable, maybe even ticking up. Revenue for
the restaurant industry was estimated at $799 billion at the end of 2017, up 4.3 percent from
the previous year. That overall number, however, is deceptively high, and deflates to 1.7
percent growth when accounting for inflation. Those numbers break down further with $263
billion (3.5 percent growth) ascribed to full service establishments and $234 billion to quick
service and fast casual (an impressive 5.3 percent growth). However, the revised projection for
the industry based on current performance is not meeting that 2017 forecast. Although new

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growth is expected in some segments with the opening of new stores and menu price
adjustments, same store sales continue to remain a challenge with reported rolling three months
average of -1.1 percent and -3.2 percent. And with industry observers predicting
macroeconomic indicators — unemployment level, disposable income — remaining largely
unchanged or edged up only slightly, any period of rapid economic growth is expected to be
out of reach in the next year. In short, we’re looking at nearly flat growth for the restaurant
industry as a whole in 2018. As per recent trend, it is very much noticeable that there is
increasing interest among the people to go out and have quality food in restaurant with friends
and family. Besides most of the restaurant serve exotic dishes and there have inadequacy of
traditional food dishes. People have increased interest of having the traditional dishes in healthy
and well decorated environment. So considering overall situation the growth opportunity of the
venture is very much optimistic.

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SECTION II: MARKETING

2.1 Research and Analysis:

We have the uniqueness from the side we are launching the products those were inbound to
home but we are releasing those items as professional business products. There are some
businesses with this types of product but they doesn't have such type of objectives or goals like
a professional business planning. So, we are confident that we can set up a Strong position in
the traditional food business category.

2.1.1 Target Market:

Paker Ghor intends to serve a specific yet wide range of customers as per its way of service.
The target market of our business is as follows-

 Paker Ghor, being a posh restaurant will target the upper class, upper-middle class
and middle class. This are the people who have enough income but do not get the
opportunity to get their desired flavors of traditional food they look for. Most of the
high-end restaurants serves exotic and western foods. They will be able to spend time
in a perfectly good environment with their family while having their desired traditional
dishes.

 We will also specifically target the business people who are so busy with their career
and do not get the time to cook or go to the various remote regions outside of Dhaka to
taste the traditional foods. It will be very time consuming yet cost infective for them if
they want to do so. So Paker Ghor will be perfect for them to go out for a fine dining in
weekend and holidays.

 Last, but not the least, we will target the tourists who come to our country and intends
to taste our cuisine. But unfortunately there is no restaurant that serves both the purpose
of traditional food serving and a good environment. So the tourists can enjoy both these
things in Paker Ghor.

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2.1.2 Market size and trends:

Bangladesh, a country with mass population and limited land area, may not be considered as a
rich country but its economy is changing gradually. Income level of people both in urban and
rural area is shifting to upward level. Change of its economy is evident by considering the
country’s outlook in capital and even district areas. People are also getting familiar with hi-
tech equipment and fashionable materials. As a result market growth as well as world market
leader’s interest for more investment is also increasing remarkably. The market size is
remarkably big also. Statistics show that 30 million people make up the middle income bracket;
this is more than the population of Sweden, Norway, and Denmark combined. Atiur Rahman,
the governor of the Bangladesh Bank, told in an interview with foreign television Al Jazeera,
“In a decade or so we will be one of the 30 largest economies of the world, and one should
keep that in mind. It is not the size of the country that matters, it’s the population and it’s a
very entrepreneurial population, and there lies our strength.” Despite only one percent direct
foreign investment, the country’s GDP is growing more than six percent a year. The rising
middle class is investing heavily in the stock market and in domestic businesses. It is they who
are behind the economic growth.

In contrast to the socially and culturally defined middle class of the earlier era, today’s middle
class is more of an economic phenomenon. It is no longer value system-based social middle
class, rather the economic feature of the middle class has become prominent nowadays. It is a
class more defined by its disposable income and this class is also driving a consumer revolution.
The Asian Development Bank has come up with a figure of Bangladesh middle class of 37
million people with income ranging between $2 to $20 per capita per day. This is a middle
class which is demanding services of various kinds for their consumption. The new middle
class represents a vast domestic market that has been a key driver of growth. Bangladesh
growth story has not been like the export-driven Chinese or Korean model. Bangladesh has
been more of a case of walking on ten legs – export market and domestic market. Bangladesh
development has been propelled by a combination of factors – exports, domestic economic
activities or the people’s resilience and also remittances. The women in readymade garment
sector have also emerged as consumers and so do families of the remittances earners. In our
growth in 1990s and 2000s, the domestic market played a vital role and it has been a vibrant
market. It is not again export versus domestic market issue. Overall, it is a fast-moving
consumer class which has been reflected in the behavior of the economic middle class. If the
present trend continues, the middle-class will comprise one-third, or 33 percent, of the national

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population in 2030, said Binayak Sen, research director of Bangladesh Institute of
Development Studies.

Bangladesh’s tourism sector has experienced increased growth in recent years, particularly in
the last decade. The direct contribution of the Travel and Tourism sector to GDP was 421.4
billion taka ($5.3 billion), or 2.2 percent of total GDP in 2016, and forecasts suggest sector
growth will increase 6.2 percent annually between 2017 and 2021. In 2016, the total
contribution of the Travel and Tourism sector to employment, including jobs indirectly
supported by the industry was 3.8 percent of total employment (or 2,187,000 jobs).

2.2 Competition:

2.2.1 Traditional Bengali food Restaurants:

There are some existing hotels and restaurants that provide traditional foods. Though there are
no restaurants that provide specifically regional foods from all over the country, but still these
food chains can be strong competitors for Paker Ghor. Some of the popular restaurants that
serves traditional dishes in Dhaka are-

 Tradition BD - Khilgaon, Dhaka

 Baburchi Restaurant – Dhanmondi, Dhaka
 The Dining Room – Banani, Dhaka
 Nanna Biriani – Old Dhaka
 Ghoroa Restaurant – Dhanmondi/Gulshan/Banani, Dhaka
 Kasturi – Gulshan, Dhaka
 Grand Nawab – Nazira Bazar, Dhaka.
 Darbar – Old Dhaka
 Kabab Night – Old Dhaka
 Shan E Mughal – South Banasree, Dhaka
 Paturi – Banani Dhaka.

2.2.2 Foreign cuisine & Fine dining restaurants:

Also there are the restaurants that serves western cuisine are also our potential competitors. It
is a real challenge to compete with these well-established restaurants

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  Latest Recipe-
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 Watercress Restaurant
 Chows
 Café Bazar
 Chile Kotha
 Le Souffle
 Charcoal Steakhouse
 Sublime Restaurant

2.2.3 Fast food Chains:

Fast food chains are the most popular among Dhaka dwellers these days. Many food courts
have made their position strong over the past few years and are strong competitors for our
Bengali traditional food. Some popular names are-

 Pizza Hut
 KFC
 Takeout
 BFC
 American Burger
 Burger King
 Shwarma House
 Preetom
 Peyala
 Sbarro BD
 Naaga Inc
 Pizza Inn

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  Bhooter Bari
 Café Darbar
 Pizza Guy

2.4 Marketing Plan:

Restaurant services, in many ways, encompass most of the four factors mentioned before, but
they do serve tangible products and have varied means of mass production. Usually, the
customers also choose the restaurant for the quality of its food. If the service was unsuccessful,
the customer might hesitate in choosing the particular restaurant again, but if the food was poor,
the customer will most like never visit again. Food can be considered as a tangible product,
since in many ways, it can be sampled beforehand. If the restaurant has a set menu, and well
trained chefs, the food should also be of consistent quality so that a customer can enjoy his/her
favorite meal multiple times without being disappointed. Especially fast food restaurants are
known for their ability to mass-produce the same menu items consistently.

2.4.1 Sales and Distribution Strategy:

We want to focus mostly on our sales and distribution in the physical place of our restaurant.
Our restaurant will be decorated in traditional Bengali ways. It will give a vive of combination
of traditional food and Bengali environment. Besides there will be the option of home delivery.
Initially there will be three waiters and two delivery man who will be key personnel in
distribution.

a. Offer combo meals:

When the NPD, a leading market research firm, conducted a study on 5,000 consumers in order
to understand combo meal purchase behavior, they found that while consumers find these
meals easy to order and good value for money. So we will offer different combo meal of
different items.

b. Portion control

Dishes will be available both in full and half portions. Price will be adjusted as per the plate
size. Thus health conscious customers can have easy choice of food and can order multiple
dishes from the menu. Since Bangladeshi traditional cuisine is of little bit high calorie and high
carb, it will be healthy option for the customers.

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c. Reward system:

We have a plan to introduce loyalty card or reward system on a specific amount of order. For
example, if someone would order anything with 1000 taka, can get a free dessert worth 100
taka. That’s how customers will be more attracted to the purchasing and sales will be increased.

d. Utilize off peak time:

The time when there will be less traffic by customers, can be used too. If morning is the time
when there is less customers, then we can arrange an offer called “Pitha hour” in the morning.
That’s how sales can be boosted.

e. Extending occasions:

We will not limit occasional days within one days. Rather we will offer customers an extended
occasion for coming to our restaurant. For example- we will arrange a “7 days Boishakhi
Mela” at our restaurant so that the boishakhi vibe doesn’t fade away for the customers and they
have the option to spend 7 days with boishakhi eating out.

2.4.2 Distribution strategy:

Our restaurants will have four basic ways to distribute: (1) the traditional telephone method,
(2) social media (3) Restaurant website

a) Telephone reservations:

Telephone reservations give the restaurant more control over the way they take bookings and
allow them to have a personal connection with their customers. During busy times, it may be
difficult to take reservations because of other demands on restaurant staff. From a customer
perspective, telephone r

Reservations may be seen as problematic because of restricted hours, difficulty in calling the
restaurant during busy periods and sometimes inconsistent service. Telephone reservations can
be handled by either having customers call the restaurant directly or by having them call a
dedicated reservation call center.

b) Social Media:

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Everyone is now in social media. It is a very easy and effective way for connecting with
customers. Paker Ghor will have official pages at Facebook from where customer can make
reservations.

c) Restaurant website:

Restaurants can also develop their own website for taking reservations. By doing so, they give
their customers the convenience of making reservations at any time but also control the
restaurant information that is provided to the customer. In addition, customers do not see
information on competing restaurants. While the personal connection is not as high as if
someone calls the restaurant, it is higher than that achieved through a third-party website.
Restaurants have several choices for powering the online reservations capabilities of their
websites. We will have a website for our restaurant that will feature the menu, nutritional
information and specials or promotions.

2.4.3 Pricing strategy:

Our pricing strategy will focus on providing high quality, healthy food that is quick and has a
unique flair. Because of this, we expect to be able to charge somewhat more for our products
than other stores, as long as the customers agree that the food is better than average. Price will
range from5 tk to 300 tk in terms of individual item.

2.4.4 Advertising and Promotion strategy:

In the digital age, taking advantage of the Internet and social media increases awareness and
encourages visits to restaurant. Advertising your restaurant is key to creating a good
distribution channel for business. Internet, print, radio and television advertisements help
attract new customers to business. These individuals might see one of the ads in the newspaper
and decide to give the restaurant a visit. Serving delicious, quality food prompts these
customers to return, and there's a chance that they'll return with friends or recommend the
establishment to others. Although traditional advertising can be expensive, there are some
inexpensive (even free) ways to get the word out about your restaurant. Social media, once
considered 'new media' is now a given for any small business. Using a few different social
media platforms can reach a wide audience and help promote your restaurant in a viral word-
of-mouth fashion.

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We are going to use only social media for our promotion. Social Media offers restaurants a
way to build a strong online presence, which in turn establishes brand loyalty with existing
customers and attracts potential customers. Social media marketing campaign offers restaurants
an opportunity to sell their product and services (think beyond the dining room to catering,
merchandise, and gift certificates). Social media utilizes sites like Facebook, Twitter, Flickr,
Pinterest, Yelp, Foursquare, Stumbleupon, and Instagram. These sites piece together online
conversations and images and help build an online identity for businesses. It also acts as a way
to measure business growth and see if the social media strategies are successful or need
tweaking. Finally, social media allows restaurants to check up on the competition.

a) Facebook

We will have our official Facebook fan page containing our promotional offers and menus. We
will constantly post pictures and short videos of our restaurant, employee working times, and
delicious foods.

b) Instagram

Various types of hashtag posts will be in the instagram that will promote our restaurant to the
customers. Instagram is the perfect place to share the menu and restaurant photos. It seamlessly
integrates with Facebook so the images show on both platforms. Hashtags like #Jhaalfriday,
#Pithaparbon etc will both create the tradition and the trending vibe.

c) YouTube

We will create a YouTube channel of our restaurant, where videos will be published, for
example- Recipes or “cooking show.” Interview with guests; Cooking tips; Chef highlights,
etc. Once we’ve posted our videos on YouTube, they’ll be visible on our Google+ Page. We
will post them on the blog and also send the links on social media platforms. This visual
interaction is sure to increase visibility.

d) Pinterest and Tumblr:

Pinterest and Tumblr are also one of the most used websites all over the world. These websites
are popular for sharing ideas for hugely different things including food. These have also mobile
apps. We can also use these platforms to promote our restaurant more sophistically.

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Section III: Research, design and development segment

Design and development:

All products of our business are well established food dishes within the country. We will
follow the same recipe that is used to make these dishes. We want to add value by using fresh
and authentic ingredient and in the service area. The dining area will be decorated with
Bengali gesture. Hurricane, candle, local art of rural Bangladesh will be used for decorating.
The furniture will be customized by the gesture of the restaurant. For some readymade items
special packaging of the business will be added.

3.1 Research & Development:

We will have a research & development department. We have included this because every
product runs for a fixed amount of time. If it is not changed in from or any other presentation
the product cannot stay in the market. So, to make our products surviving for a long period, we
have a plan to do these followings under this department.

1. Nutrition Test: R&D will setup a nutrition test facility to maintain and observe the nutritious
power of our foods. As we are concerned with our customers' well-being, we are very much
conscious about the nutrition of our foods.

2. Test of Healthiness: We will make comparison the healthiness of all foods will be under
our service. Because the more healthy food we will serve people will get more interested with
our items. And this will be a plus point for our business.

3. New Recipes: We will search for new recipes, new ways of serving foods, or new type of
food which can make a run in parallel to our products. Because innovation creates some extra
images and people are fond of something new. So we will arrange some recipe contest or new
food idea hunt type program to make this in a chain.

4. Mobile App:

With the advancement of mobile technology, ordering from favorite restaurant is easier than
ever. A whole new business opportunity has opened up for those in the market who are prepared
to offer their services to their customers equipped with smartphones. A range of businesses
including restaurants are going the mobile route by developing their own mobile applications

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and mobile websites in order to offer customers to searching and access services through their
mobile phones. Food delivery, restaurants and more, are offering mobile apps & mobile
websites that allow the users to do everything from browse menus, make reservations, put in
orders, and pay for meals, set up delivery and everything in between. Users can order food and
have it delivered right from their mobile, which saves time and money. Mobile loyalty
programs for restaurants can increase repeat business. Mobile reservations at restaurants save
employees & customer’s time. Mobile apps allow customers to automatically book a table at
their favorite restaurant without having to worry about their reservation being lost or
mishandled. From an employee’s perspective, the entire process is automated, saving everyone
time. So after short period of time we will launch the mobile apps for the customer. By this
technology they will able to access the restaurant website easily, can see the set menus, can
give review and also home delivary service will be easier for the customers

3.2 Cost Structure:

Start-up cost will include facilities cost, furniture and equipment, marketing,
regulatory and legal fees, pre-open cost.

Projected Startup cost:

Furniture and equipment 300,000 tk

Lease of the facilities 480,000 tk
Legal fees 100,000 tk
Marketing 30,000 tk
Rent 40,000 tk
Start-up inventory 15,000tk
others 10,000 tk
Total fund required 975,000 tk

Fund will be collected both by contribution of owners and taking bank loans. We will take
400000 tk loan

Bank loans: 400000 tk

Owner’s contribution:

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Asiful Hasan: 200000 tk.

Diponkar Bhowmik: 250000 tk.

Nourin Jahan: 200000 tk.

Total = 1,500,000 tk.

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SECTION IV: MANUFACTURING

4.1 Location Analysis:

We will establish our restaurant in the Dhanmondi area. After generating revenues and reaching
a few milestones, we have a plan to open a few branches in Dhaka. Mirpur and Uttara will be
next two locations after Dhanmondi. The reasons for choosing Dhanmondi as our location are-

 The people of Dhaka are mostly aristocrat who are willing to pay premium for good
food.
 The population is approximately 2,00,00,000, so will be able serve a wide amount of
customer there.
 Their quality of life is considered better than the other areas so they will look for
restaurants with quality food and posh environment.
 The people here are mostly upper class, upper-middle class and middle class which
matches the niche market that we intend to serve.
 There are already a good number of fine dining restaurants here, which proves that it is
a great place for restaurant business.

4.2 Production Needs:

 Facilities:

The facility will include approximately 1,500 square feet of dining area, 600 square feet of
kitchen area, 200 square feet of storage, and 350 square feet of waiting/entry area. It is
assumed that the facility will be under a one-year lease agreement with 4 automatic
extensions (5 year lease). Annual facility costs will be 480000 tk.

 Furniture, Fixtures And Equipment:

Furniture, fixtures and equipment contained in the start-up costs include all major food
preparation equipment, appliances, tools, dining furniture. The Major food preparation
equipment (freezers, ranges, work tables, etc.) will be purchased with start-up capital.

A. Suppliers:

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Suppliers play vital roles to operate a restaurant successfully. The company will mainly use
local wholesale food distributors (Agora, Swapno). The special ingredients will be brought
from the respective regions. The restaurant will use those suppliers who can provide quality
raw materials on time and at good price.

B. Maintaining and tracking inventory:

Marinating and tracking inventory is very important for a restaurant to reduce the cost of food
production. The cost of food production takes the major portion of cost of any restaurant.
Inventory will be done frequently to ensure there is no shortage or surplus in the stock to place
the exact order. For some products it will be done daily, for some items weekly or twice in a
week. Whenever the inventory is done, it should be make sure that inventory is done before the
order is placed. Inventory will be taken before the restaurant opens or after the restaurant has
closed. Because it is quite difficult to get the exact inventory while the restaurant is running.
First in first out (FIFO) method will be used to minimize the spoilage of the food. Inventory
count sheets will be used to keep the records of all items. Daily inventory will be done by the
chef and cross-checked by the executive manager. Weekly inventory will be cross checked by
the executive manager before placing the order.

C. Food production:

Most of the foods will be made from scratch in the kitchen. High standard for cleanliness in
the kitchen, food hygiene, and food safety will be ensured by the chef and monitored by the
executive manager. Different cooking methods such as baking, pan-frying, surfaceheating,
grilling, roasting, boiling, stewing, frying will be used to prepare different dishes; baking.
Spices are an inevitable part of Bengali cuisine. Herbs and spices give Bengali food a perfect
flavor. Different spices such as chili powder, turmeric, coriander, wild celery, ginger, garlic,
cardamom, cinnamon, bay leaf, cumin seed, black cumin, black pepper, nigella seed, sesame
seed, mustard seed, mustard oil, mint, basil, saffron, rose water, vinegar, Panch phoron (blend
of different spices like nigella, cumin, fenugreek, fennel seeds), garam masala (mixture of
ground spices like black and white peppercorns, cloves, cinnamon, nutmeg and mace, black
and green cardamom pods, bay leafs) will be used to get the traditional Bengali flavor. We will
use lactose free food ingredients to prepare our dishes. 17% of the Finns have lactose
intolerance (YLE). We have to take it into consideration when we prepare foods. Usually, dairy
products such as milk, ice cream, cheese as well as bread and cereals cause lactose intolerance

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D. Manufacturing cost:

Manufacturing cost will include cost of raw materials, salaries of chefs, salaries of kitchen
assistants overhead cost, transportation cost. There is many dishes and items available in our
restaurant. As there is no single item. The manufacturing cost will differ one item from another.
Some items will be purchased directly in finished goods form and then required packaging and
level will be added to that product. Grossly it will be 40% of sales.

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Section: V: Management

5.1 Management Structure

Our management structure will be like this:

General Manager

One of the owners will act as general manager. The general manager will be responsible for
the day-to-day operations of the business, including hiring, firing, inventory system,
marketing and advertisement, cash counter and financials training and overseeing the staff,
making sure that the restaurant is maintained in proper operating condition and ensuring that
things run smoothly when the restaurant is open. They also are responsible for totaling up the
daily receipts, making sure that the restaurant adheres to all legal requirements.

Front of House Manager

Another one of the owners will act as front of house manager. He responsible for the
restaurant’s dining area, including setting up service, waiting on customers and interacting

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with the kitchen staff, managing front of the house employees. He will also assist the general
manager and the executive chef in customer relations.

Executive Chef

The executive or head chef will be responsible for back-of-house operations and he is the
manager of the entire kitchen. This includes training and managing other cooks and kitchen
staffs, creating menu items, helping determine the prices the restaurant should place on its
meals. The executive chef will be responsible for all the meals that leave the kitchen .He will
also consult and report to the front of house manager or the general manager directly about
inventory and ordering.

5.2 Legal structure

The ownership structure of the business will be based on written partnership agreements. The
profit and loss will be shared proportionately according to individual investment. As we
mentioned earlier owner will act also as employee of the business and they will receive salary
according their work and position.

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SECTION VI: Financial Analysis

6.1 Startup Balance Sheet:

ASSETS
CURRENT ASSETS
Cash tk 75,000.00
Inventory tk 15,000.00
Prepaid Expenses tk 40,000.00

TOTAL CURRENT ASSETS tk 130,000.00

FIXED (LONG-TERM) ASSETS
Property, Plant, and Equipment tk 780,000.00

TOTAL FIXED ASSETS tk 780,000.00

TOTAL ASSETS tk 910,000.00

LIABILITIES & OWNER'S EQUITY

CURRENT LIABILITIES

TOTAL CURRENT LIABILITIES tk -

LONG-TERM LIABILITIES
Long-Term Debt tk 400,000.00

TOTAL LONG-TERM LIABILITIES tk 400,000.00

OWNER'S EQUITY
Asif’s equity tk 200,000.00
Dip’s equity tk 250,000.00
Rinta’s equity tk 200,000.00
(Expences) tk (140,000.00)

TOTAL OWNER'S EQUITY tk 510,000.00

TOTAL LIABILITIES & OWNER'S EQUITY tk 910,000.00

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6.2 Financial Ratios

COMMON FINANCIAL RATIOS 2019

Debt Ratio (Total Liabilities / Total Assets) 0.47
Current Ratio (Current Assets / Current Liabilities)

Working Capital (Current Assets - Current Liabilities)

160,000
Assets-to-Equity Ratio (Total Assets / Owner's Equity) 1.87
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity) 0.87

6.3 Income Projection:

1st year 2nd year 3rd year 4th year 5th year

Sales 3500000 4200000 5040000 6048000 7257600

COGS 1400000 1680000 2016000 2419200 2903040

Gross Profit 2100000 2520000 3024000 3628800 4354560

Expenses

Rent 480000 480000 480000 480000 480000

Payroll 1200000 1440000 1728000 2073600 2488320

Marketing 600000 600000 600000 600000 600000

Interest 40000 40000 40000 40000 40000

Total Expenses 2320000 2560000 2848000 3193600 3608320

Net Profit -220000 -40000 176000 435200 746240

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SECTION VII: CRITICAL RISK ANALYSIS

7.1 Potential Problems:

Opening a restaurant requires a great deal of capital and poses very high risk. Common statistic
says, 59% of hospitality facilities fail in the initial 3-year period. Running a successful
restaurant can be extremely challenging especially when the choices that diners have are
beyond overwhelming. The three things that usually determine the success of a restaurant are
the food, the service, and the location/atmosphere. There are so many common restaurant
problems in these three things that often escape the untrained eye. One may be able to make it
with two of these factors but having all three can increase your chances of operating a
successful restaurant tremendously. Managers and owners are often faced with difficult
decisions when it comes to the restaurant consulting.

Problem 1: Dwindling Capital

Opening a restaurant is not a cheap proposition, and even after one has budgeted for startups
costs, he/she may not be able to begin operations as soon as hoped. Or customers may be slow
to walk through the door. One might have enough money to get up and running, but then there’s
nothing left and the restaurant hasn’t taken off yet. Restaurant owners need enough capital to
run their business so it can fully establish itself. Owners should plan to have at least enough
money to run for one year. Additionally, restaurant owners need to have enough financial
resources to cope with unexpected costs and increases.

Problem 2: Unique Selling Point

Competition in restaurants is fierce, and if you don’t have a niche, you’ve failed before you
started. All established restaurants (chains or not) all become known for their unique selling
point. A unique selling point offers customers a feeling that enables them to remember us long
after they are gone.

Problem 3: The Menu

One of the most common problems restaurant owners face is the menu. A good menu is a
balancing act. A good menu requires considering how many items are too much versus offering
too little. It’s best to have a smaller number of dishes, but making them really well. Typically,
longer menus take longer to order from, require more ingredients, thus making one have to buy
more ingredients.
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Problem 4: Training and Hiring

One of the unfortunate aspects of the restaurant industry is a high turnover rate in employment.
Restaurants obviously want to hire and train their staff appropriately, but sometimes one may
not have a solid management structure to help everyone understand their role and
responsibilities. Then things get overlooked and customers may feel the frustration on the
backend of this disaster train. Owners may feel they don’t have enough time to adjust current
employee structure because all the other aspects of the business needs attention.

Problem 5: Marketing

You’ve got great food. Your service is on point. You’ve got good reviews online. But still,
people aren’t lining up to come in. Not enough people know about the restaurant, and so one
need to market it better. Many owners fail to market enough or market appropriately.

Problem 6: Customer Service

No matter how we slice it or dice it, the first impression is a memorable one. It can be pretty
assumption-filled if not all questions are answered and needs met. The food may delight the
palates of customers, but the service could drain them. If customers have a bad first trip, it’s
not very likely that they will return for a second go. There is no magical potion that generates
happy and loyal customers- it really does take the entire village to create a great experience.
From management to busboys, every contact made to the customers has to be delightful and
accommodating. Customers can get easily turned off at any point in the dining experience, so
paying attention to their needs and creating a welcoming service is essential.

7.2 Risks

There can be no denying there are uncertainties and variables in the business world today and
restaurants are not immune from those concerns. There have never been this many threats to
the restaurant industry. Threats to your livelihood in the food industry is a very real thing but
surely forewarned is forearmed. Whether starting up, or holding the established position in the
market it’s prudent that potential threats can be identified, and dealt with in a positive and
potentially even profitable way.

Entrepreneurs face many challenges when starting a new business. A depressed economy,
uncertain market conditions and financial struggles all pose a legitimate threat to the successful

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launch of a new company. Business owners must be able to determine the types of risks that
are most likely to affect their new venture and proactively create risk management strategies
that will enable the company to succeed despite having those risks.

1. Market Risk

Current market conditions and trends pose a risk to new businesses. According to an article on
Inc.com, “if industry trends are moving away from your product or service or if potential
customers are already locked up by competitors, it will be difficult to gain customer
momentum.” Market can affect new businesses depending on the nature and location of the
business, prospective competition and product pricing. Markets that are overly saturated with
the same products and services can be detrimental to a new business’ ability to gain significant
market share. Business owners can effectively manage market risk by performing a market
analysis, which helps determine the market potential for their particular product or service. A
marketing plan can help define marketing areas as well as uncover customer needs. Properly
identifying market risk is necessary to manage and/or avoid the risk all together.

2. Financial Risk

The financial standing of a business can often make or break a company’s ability to succeed.
New businesses face significant financial risks. New business owners often fail to plan
financial projections or create working budgets. It is necessary for new businesses to determine
if their product or service is strong enough to support the financial obligations of the business.
A lack of startup funds poses a considerable threat to new businesses. Sufficient capital is
necessary to pay for the owner’s living expenses until the business turns a profit. In addition,
most businesses need inventory, equipment, office supplies and marketing materials to run
effectively. Entrepreneurs who are unable to secure financing often dip into personal savings
or overextend credit cards to fund their new business venture. Personal financial success is
often tied to the success of the new business. If the business does not succeed, a new business
owner could possibly face financial ruin.

1. Management Risk

The organizational structure of a new business, or lack thereof, is another risk in starting a new
business. New business owners with little or no management experience face significant
challenges in running a successful company. Entrepreneurs who hire inept managers run the

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risk of hurting important business functions as well as the overall bottom line of the company.
Managers are often charged with overseeing the day-to-day operations of a company.
Ineffective management can have an adverse effect on sales efficiency, quality control and
customer service.

7.3 Risk Management Strategies:

Creating a profitable food business is a juggling act. One must offer fresh ingredients, create
enticing dishes or cocktails, and know how to market it. The equipment must be maintained
and staff members need the right training. Then there are customer expectations to meet and
potential injuries to combat. But even with the raw ingredients for success, a restaurant,
catering business, or bar may still be one accident away from closing its doors for good. That's
why running a strong food business means preparing for the worst, too – from kitchen fires and
food spoilage to allergic reactions and liquor liability lawsuits.

The following risk management strategies can reduce the likelihood that a serious accident or
liability lawsuit prevents business from thriving-

Strategy 1: Thoroughly Training the Employees

The employees of your restaurant are what make the business go and succeed day to day. In
order for these operations to work successfully, the employees need to be trained properly so
that they can avoid any possible risks in the workplace. There are a few different specific
trainings that your restaurant employees should all go through. All restaurant employees should
have training for equipment handling, safety procedures, and customer service.

Strategy 2: Using Technology

In the day in age of technology owners need to be prepared if they are the type of restaurant
that stores information on computers or media devices. They have to worry about cyber-
security if they are utilizing technology for the restaurant. Download antivirus software, enable
password protection for all devices, and install security cameras around your restaurant.

Strategy 3: Keeping the Restaurant Clean

There is always a risk for a restaurant to get injured or cause damage to the restaurant
throughout the workday. In order to help combat this problem one should keep your kitchen as
clean as possible at all times. Always make sure that there is little clutter throughout your

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restaurant to help steer clear of any hazards. Lastly, if have any railings in your restaurant you
want to make sure those and all furniture are as sturdy as possible at all times.

Strategy 4: Keeping Restaurant Equipment Maintained

The equipment of the restaurant is used to properly prepare and store your food. Managers
should have up to date and maintained equipment at all times in your restaurant for risk
management purposes. They should always have a maintained fridge to avoid any food
spoilage as well as properly working and cleaned heating equipment.

Strategy 5: Health and Safety Codes

During routine inspections of your restaurant, know all of the local health and safety codes.
Make sure that the employees have good hygiene and emphasize to the employee’s correct
food handling, storage and preparation protocols. Additionally, managers will need to have the
correct safety equipment on hand at your restaurant at all times.

Strategy 6: Making Sure to Have All Restaurant Licenses

When one own a restaurant there are certain kinds of licenses he need to have in order to legally
run your day-to-day operations. The first kind of license managers will need, if they offer liquor
to their customers, is your liquor license. Another license they will need is food service license
for the restaurant. Lastly, they will need a business license so that they can legally operate the
restaurant.

Strategy 7: Updating Allergen and Dietary Disclosures

Food allergies affect millions of consumers, and as a restaurant owner, one need to be aware
of all different food allergies and diets. Managers need to update both food and dietary
disclosures. Disclosing this information can help them avoid a costly lawsuit.

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SECTION VIII: MILESTONE SCHEDULE SEGMENT:

A. Goals and Objectives:

Paker Ghor seeks to achieve the following goals:

 Cash flow self-sufficiency by the end of the second year.

 Repay debt from original financing by the end of the fifth year.
 Provide an income for founder-owner with income growth possibilities.
 Sales over 3500000 tk in the first year.

Chart Title
8000000

7000000

6000000

5000000

4000000

3000000

2000000

1000000

0
1st year 2nd year 3rd year 4th year 5th year
-1000000

Sales Gross Profit Net Profit

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SECTION IX: Bibliography

(2012). Bangladesh Econoomy .

(2017). Export.gov.

7 RISK MANAGEMENT STRATEGIES FOR RESTAURANTS. (2017).

Bangladesh - Travel and Tourism Services. (2017). Export.gov.

Griffith, M. (2017). 2018 Restaurant Trends: Industry. Rewards Network

Kimes, S. E. (2011). The Future of Distribution Management in the.

Meltzer, M. (2017). Ten Common Restaurant Problems, and How to Fix Them.

Scott, S. (n.d.). Risks of Starting a New Business.

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