Nandi Chat Bhandar

-Microeconomic
analysis
GROUP - 8
ANKIT RAJPUT
DIWAKAR JAIN
NAIYA MEHTA
RANJOT SINGH
SHALINI SINGH
VAISHNAVI S

Agenda
Introduction

of Nandi Chat

Bhandar
Products
Market Demand
Profit Maximization
Cost Structure
Peak Demand & Price
Effect of Government Regulations
Competition & Challenges

Introduction
Small sized local chat shop
25 years old
Approximately 200 customers/day
Average sales : 10,000
12000/day
Operating time : 5pm to 9pm

Products
Raj Kachori
Katori Chat
Special Dhai Puri
Special Sev Puri
Samosa Masala
Sev Puri
Bhel Puri
Dhai Puri
Dhai Papdi
Special Masala
Puri
Tomato Chat
Kachori Masala
Aloo Tikki
Aloo Puri
Masala Puri
Pani Puri
Plain Samosa
Plain kachori
Plain Aloo Tikki

Market Demand
Demand

is high
Most of the items are sold out by
the evening itself
Price increase has no effect on
demand
Demand inelastic in short run

Equations Followed:
P = 44 - 0.3Q
MR = 44 - 0.6Q
MC = 0.05Q
AC = 0.025Q +
145/Q

Profit Maximization

Cost Structure
Own

building no rental cost

Fixed costs
- Salaries of Rs.15000
- Electricity Bill of Rs.
Variable costs
- Supplies price

Change in Demand &

Pricing

Change in Demand &

Pricing

Effect of Government
Regulations

Competition & Challenges

Intensity

of rivalry Low
- Location and cost advantage

Threat
1.
2.
3.
4.
5.

of substitutes :
Healthier options (fruit chaats, salads)
Home cooking (only opportunity cost
is time spent is kitchen)
Other fast foods (momos etc.)
No switching costs for consumers
Supplier To maintain high quality
raw material (Papdi, Kachauri etc.)

Expansion Opportunities
Home

delivery service (Main

driver of fast food is
convenience )

Franchise
Catering

Model

Services

Crux