Professional Documents
Culture Documents
Truly Delicious
PURPOSE
The purpose to start this business is to serve people of new era with a different and the most
competitive style. We want to help those people who could not spend time in their busy schedule to
take healthy food by diet sandwich which is 100% nutrient, healthy. The prime purpose is to
generate profit by providing superb customer services. We aim to be leader in providing quality
food items that fit into a balanced diet. Our aim is to provide the hygienic and delicious tastes of
sandwich that the customers have never tasted before. We want to add convenience in the lives of
fast food lovers by providing them the most wonderful dining experiences.
Food service business is one of the largest industries in the country. This number has been
increasing for the past seven years. In the past five years the restaurant industry has out-performed
the national GNP by 40%. The reasons given by the Folkney Report (November 1994) are
1) lifestyle changes,
2) economic climate, and
There are 600 new restaurants opening every month and over 200 more needed to keep pace with
increasing demand.
The predicated growth trend is very positive both in short and long-term projections. Folkney states
that “as modern living creates more demands, people will be compelled to eat more meals away
from home”.
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In 2000 The National Restaurant Association released the Foodservice Industry 2015 report that
forecasted how the industry might look in the year 2015. Some highlights from the panel's findings:
Consumers will spend a greater proportion of their food away from home.
Independent operators and entrepreneurs will be the main source of new restaurant concepts.
Nutritional concerns will be critical at all types of foodservice operations, and food flavors will
be important.
Environmental concerns will receive increased attention.
The food concept and product image will attract majority of the
The student -- more and more young people have developed healthy eating habits. Some also go
through a "health food phase" while in college.
The health conscious person of any age or sex -- this includes anyone on a restricted or
prescribed diet or those who have committed to a healthy diet.
Curious and open-minded -- "if you try it, you will like it." Through marketing, publicity, and
word-of-mouth, people will seek out a new experience and learn that nutritious food can be tasty,
fun, convenient, and inexpensive.
The average person (over the age of 12) eats at a fast-food restaurant for an average of 9.2 times
monthly.
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Although the legal status of business tends to play an important role in any setup, the proposed fast
food business is assumed to operate on a partnership of 5 members which may extend in case of
addition of new products that might add significant Business to the existing setup.
INDUSTRY ANALYSIS
Although the restaurant industry is very competitive, the lifestyle changes created by modern living
continue to fuel its steady growth. More and more people have less time, resources, and ability to
cook for themselves. Trends are very important and we are tasking interest to provide lighter,
healthier foods at moderate to low prices.
Critical Success Factors for the local sandwich shop could include:
Establish and maintain an exclusive relationship with a baker to supply on a daily basis, 6 days
per week, a range of specialty and exclusive breads baked according to proprietary recipes
Purchase an extensive range of high quality meats, cheeses, fruits & vegetables
Charge a premium price but one which, together with the product and the service, ensures
customer value-for-money
Promote, make and serve fresh, exclusive, attractive, tasty, well-presented sandwiches always.
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OPERATIONS PLAN
Fast food is the term given to food that can be prepared and served very quickly. While any meal
with low preparation time can be considered to be fast food, typically the term refers to food sold in
a restaurant or store with fast preparation and served to the customer in a packaged form for takeout
take-away or can be consumed at the store or the restaurant.
The operational plan is an essential component to our business plan and it tells the reviewer how we
are going to get your product/service out to market. That is, how we are going to get your product
out of the production stage to the doorstep of you target customer. Speaking about our outlet, we
have three sections in total in our store, which will be catering to different kinds of customers
according to their taste and preferences.
We have positioned our products/store as value for money and quality fast food but at the same time
we are not serving our customers, we want our customers to help themselves this strategy will
also work as word of mouth promotion where the experienced customers will tell new customers
creating a unique interest in the minds of potential customers.
PRODUCTION PROCESS
Preparing a Sandwich
Since it’s a fast food which can be prepared very quickly as half of the things used to produce
something is already ready or prepared now preparing a Sandwich will start with having all the
necessary vegetables on its place which means having our inventories on place, then the process of
making the food that’s the sandwich will start followed by the Finished product that’s sandwich
having Inventories On place Work in Progress Finished Product In order to meet the demand of
inventories which we will be having we will be using sum of the production operation techniques
which will see that we are making optimum utilization of resources and minimum wastage.
Manufacturing Plan
Once an order is received, the associate behind the service counter will begin to assemble the
customers order based on the sales data which will be displayed on a monitor. Each associate
behind the service counter will be responsible for a certain aspect of the assembly line such as;
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placing the necessary ingredient in the bread, adding the required condiments, and making sure the
meal is properly wrapped before delivery and set on a serving container. The assembly line will
have placards or assembly instructions showing how each meal should look and what condiments
need to be on the sandwich. This will ensure that each sandwich is done the same and will maintain
quality. There will also be an associate in the rear of the kitchen who will supply the production line
with more products.
Products
INDUS RASOI has found something that allows us to improve quality and lower costs.
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Improved Quality
The benefits of a better tasting Sandwich should be fairly apparent. Unless of course you prefer
aged sandwich, the fresher sandwich is going to be higher quality if made fresh just for you.
The less obvious benefit is the higher quality customer service that arises from the JIT sandwich
assembly. When “Indus Rasoi” waits for you to order the sandwich, we do a few things to improve
customer service. This higher quality customer service is subject to our ability to actually produce
faster. Without this ability, “Indus Rasoi” ordering costs would be sky-high because the costs
associated with ordering would be the loss of customers tired of ordering fast food that really is not
fast.
Nutrition calculator
“Indus Rasoi” serves a wide range of quality sandwich that can easily fit into individual diet needs
based on the principles of balance, variety and moderation. Our varied menu and range of serving
sizes make it easy to fit our food into a balanced diet and to create a range of meal combinations
that fall within recommended guidelines for calories, fat and other nutrients.
WE are also helping you learn more about our food by adding nutrition information on some of our
packaging. Some of our packaging now includes the “Indus Rasoi” Nutrition Chart. Our goal is to
provide you with the information you need to assist you in making sensible decisions about balance,
variety and moderation in your diet.
2. Lower Costs
The holding costs for sandwich parts are fairly high because of its spoilage costs. Instead of
having a shelf life of months or weeks, the sandwich needs to be sold within 15 minutes or so. The
holding costs go from roughly 20% per week to 100% per hour.
In terms of operating the business, it's as easy as establishing a working relationship with a catering
service to supply the sandwiches on a wholesale basis, while building a customer base to purchase
the lunch meals. Design a menu featuring all the sandwiches, salads and other items available and
distribute the menu to office buildings and factories. Customers would simply place their lunch
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orders in the morning or the day before. Additionally, lunch orders could be placed by way of fax,
phone or e-mail. But we will be delivering our products to our customers within a Geographical
Area of first 5km (Home Delivery) from our Store if customers bill exceeds Rs 200/- and he need
to pay 15% of the bill amount extra as delivery charges which will be lowered as the bill amount
increases in percent.
INVENTORY MANAGEMENT SYSTEM
b) Economic Order Quantity (EOQ) is the level of inventory that minimizes the total inventory
holding costs and ordering costs. The framework used to determine this order quantity is also
known as Wilson EOQ Model. We will order on Daily basis with one order per day and as per our
requirements say for example in the morning we order we will see to it that with that order our
requirement is fulfilled of the day, this will reduce the transportation cost for 1 more order or
unnecessary order .
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For establishing fast food (sandwich) restaurants we have selected Sanghol, Punjab (Near Cordia
Institutes). It is one of the areas where large number of students are present because of educational
Institute is present. Hence majority of the residents in Sanghol are student community. As already
mentioned earlier, students are one of the main customers for sandwich restaurant. Since students
are very busy in going to the colleges during morning they prefer to take healthy food in less time.
For them Sandwich is the most suitable food to fulfill their desires. More over them can get
sandwiches any time.
Cordia Institutes is present at Sanghol which is at centre of the surrounding villages and town.
The student population density is more around the Sanghol as compare to other areas. Since
Sanghol is highly residential area, home delivery will be very easy. The transportation cost will also
very less. For these reasons Sanghol is selected to establish a sandwich industry.
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Generators
Microwaves
Waste bins
How we will manage to serve best and fast to keep up to our customers expectations:-
Use of paper products and plastic wraps keeps labor costs down: Pre-sliced cheese, packs of
jellies and ketchup, getting the customer to help them. A limited menu restricted to items with a
short preparation time would make fast service possible and would also be useful in streamlining
operations.
Utilization of time-saving equipment: Microwave, post mix beverage dispensers etc.
Utilization of labor-saving equipment: Ware washers, automatic potato peelers and automatic
coffee brewers.
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• Racks for mixer parts and bowls
• Large racks in bakery, hot-food preparation, and salad preparation areas for sheet pans, baking
pans, and other large utensils
• Special storage racks for food processor blades and parts
• Large rack or special storage room for catering supplies
• Knife rack in each preparation area
COMPETITIVE EDGE
Location: Location is critical to success. Our store is on Main Street or just off Main Street, there
by taking advantage of walk-by and drive by traffic. But we also need adequate parking to make
shopping at our store convenient for drivers.
Convenience: Customers are willing to pay a little bit more for good food and the convenience of
being able to get what they want without having to travel out of town. Our customers will purchase
our food because it is reliable and delicious.
High quality: Focusing on high quality food, we will draw customers from the competition, as well
as create a local market that has not existed before. If the prices are reasonable and the food is good,
we will have growth through repeat business.
COMPETITIVE STRATEGY
There are three major ways in which we will create an advantage over our competitors:
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this commitment and work with them to continuously monitor, test, and track our ingredients. We
have stringent standards and checks in place in critical areas throughout the food supply chain—
from "fork to farm."
Our Operations and Training manual for restaurant managers includes a whole chapter on food
safety, with requirements and guidance that cover all the critical control points at the restaurant
level—from supply and delivery through storage, preparation, and holding.
Food safety procedures are monitored by staff operations consultants, who regularly visit our
restaurants to advise managers on operations. The consultants also conduct periodic restaurant
operations reviews, which include assessments of food safety procedures. Managers are expected to
correct any irregularities identified.
A big emphasis is being placed on extensive research into the quality and integrity of our
products. They will constantly be tested for our own high standards of freshness and purity. Food
costs and inventory control will be handled by our computer system and checked daily by
management.
Similar to most fast food establishments’, orders will be taken on the right side of the service
counter where money will be exchanged and the customer will be issued a receipt containing the
order selection and a claim number. Cups will be dispensed so the customer can select their desired
drink while waiting for their individual orders to come up. When the order is ready, the associate on
the left side of the counter will call out the claim number for the customer to pickup.
Packaging
Packaging design is a fundamental part of our top quality customer service. Many of our menu
offerings have unique packaging designs to provide insulation, help ensure food safety, and make
them convenient for carryout. This gives us many ongoing opportunities to minimize the
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environmental impacts of our packaging and to provide industry leadership in natural resource
conservation.
Customer service
We plan to adhere to establishing service attitudes and policies for effective quality functioning and
service provision. All the customer complaints which would have to be handled and how we will go
about getting customer feedback such as surveys or through mystery shoppers will all be a part of
the process of adhering to quality standards.
Management controls
Operating a restaurant on a day-to-day basis requires established systems and controls. Many
seasoned restaurateurs have established systems to help them control cost and maintain excellence.
Unfortunately, though, some startup restaurateurs open their doors unprepared to industry expert’s
analysis, we plan to incorporate management controls, tasks and support systems into our plan.
FINANCE PLAN
Finance department is responsible to arrange the cash inflows of the business. It also identifies the
sources from where the finances can obtain to run the business operations smoothly.
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Capitalization needs: The estimated capitalization needed to open the business is approximately
20 lakhs and the planned sources for funding it are personal investments of partners, bank loan and
credit union.
Sales per Full time Team Member = Total Sales / Number of full time equivalent team members.
NPV 4800968.186
Profitability index 2.600322729
Pay back period 37 months
Initial investment 2000000
Require rate of return 15%
USP
“Diet sandwiches” is our USP. We care for the calorie that our sandwiches add to your health. We
give sandwiches that will not make you sluggish in the morning and that can kill your hunger
during the noon, will give you a light feel for your dinner. We are here to break up the common
perception that fast food destroys your health. We value your health than anything else.
Service differentiation
We are providing the customers with diet sandwich so it maintains their health. We will be
providing fast food in area of 5km. from our fast food hub. This is a unique positioning were in the
customer will perceive us different from other fast food outlets.
Segmentation
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For any business it needs to identify the segment they are going to segment the population. We
segment people between age group who are so conscious about their health. We here by segment
our customers into elite (who are youngsters between age 20-30) and premium (people between age
group 30-45).Segmentation helps to cater each individual segment that has commonality.
Targeting
We cater mainly to these two segments that will take care of our sales. Once we are done with our
segmentation we are in to how we will target our segment. Unlike a common segment where you
have wide range of population with different needs, segmentation helps better in targeting our
segment. You have a population with a commonality which you can tap. We focus our two
segments so that they feel their needs are satisfied to the fullest possible.
Positioning
Now the biggest challenge in front of us is how we are going to position our products in front of our
segments. To our elite segment we would like to position our sandwiches as tasty, trendy, with more
varieties. We make them feel that we make them trendy, youthful with the fast foods but with
concern for their health.
Once we could position ourselves to our elite customers here comes our premium customers. Here
lies our greatest challenge and also opportunity. They are the customers who we are looking for.
They are the ones who are really health conscious but need our sandwiches to cope with their fast
moving schedules. To them we are going to position our sandwich as a “Sandwich of their money,
health and time”.
Marketing mix
Product
Our main product is sandwich. We are specializing in producing sandwiches that are not going to
affect your health. We will have customization that is our customers will get their choice of taste.
We use product differentiation strategy were we differentiate our product we make the customer to
feel that we are not offering them the ordinary sandwiches that everyone offers.
Price
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We are going to use cost plus pricing strategy. Since we are going to differentiate our product from
the others we are going have this strategy. Customers will not feel the difference in our price even
if it is high as it appears to be a different one.
Promotion
The foremost activity and most important among the marketing mix is promotion. We need to create
the awareness among the people about our sandwiches. Or else it will be considering as yet another
sandwich in the market that has evolved to add fuel to existing health problems. It is our campaign
that is going to bring out the innovation that we have brought in sandwich. One our advertisement
campaign succeeds sure our sandwich will stand on its own. We would like to go for food festivals,
sponsoring events in colleges, through Fm and hoardings.
Place
This is where we are one step ahead of our competitors. We see to that we are nearer to our
customers. In Punjab our first outlet is in Sanghol place.
DIET SANDWICH is an innovative concept that targets a new, growing market. We assume that
the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation
of quality, consistency and security (safety of food) that will make us the leader of a new style of
dining.
Strategies: Our marketing efforts will be concentrated on take-out and delivery, the areas of most
promising growth. As the market changes, new products may be added to maintain sales.
Milestones: After the restaurant opens, we will keep a close eye on sales and profit. If we are on
target at the end of year 1, we will look to expand it.
Risk evaluation: With any new venture, there is risk involved. The success of our project hinges on
the strength and acceptance of a fairly new market. After year 1, we expect some competition in the
form of other independent units. Chain competition will be much later.
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