BAKERY Business plan

FRIENDS CAFÉULTIMATE HANGOUT

DESTINATION

BUSINESS PLAN

BUSINESS PROPOSAL:

The idea is to establish a focused Quick Service Bakery Outlet (QSBO) chain starting its first unit at sector 14 koperkhairne.

The brand name of the restaurant is Friends Cafe and the company will be registered as Friends Cafe Pvt. Ltd

For Youngsters via quick service and the family who live in residential complexes via quick delivery will be targeted

An outlet of 720 square feet which has been brought by our partner Rohit to operate the restaurant from Circular Road

Subodh, Vaibhav,Deepchand, Rohit, Padma , Archana, Prachi and Shital create a highly qualified team to run the company.

Friends cafe will introduce new menu in the city which will include cakes, muffins, tarts, tea, coffee, all kind of breads, Pasta, Sandwich and Chicken burger to the customer.

Vision Statement: Putting people before products.

Create a loyal following.

Deliver Quality Products.

Mission Statement:

“Establish Friends cafe as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow”

LEGAL REQUISITE TO BE MET

1. Partenership Deed 19322. The Shops and Establishments Department3. (BMC).4. The Licensing Department (BMC).5. The Health Department (BMC).6. The Building and Factory Department.7. The Weights and Measures Department.

FUNDS REQUIRED AND TIMING

We plan to make two major investments: One in plant And Machinery , Raw Materials and one in shop premises development.

FINANCING

Total Financing Required

35,00,000

Owner’s Fund 25,00,000

Loan’s 10,00,000

Total Financing 35,00,000

Cost of Goods Manufactured 2013

Total Direct Labour 1,30,000

Total Direct Materials 1,60,000

Manufacturing Overhead 75,000

total 3,65,000

Projected Balance Sheet as on December 31, 2014

Liabilities   Assets  

Owner’s Fund  25,00,000 Land & Building  18,00,000

Loans 10,00,000 Plant & Machinery 12,00,000

Reserves & Surpulus 3,90,000

Current Liabilities Current Assets

Payables 4,00,000 Receivables 1,00,000

Cash In Hand 5,50,000

Cash At Bank 6,40,0000

Total 42,90,000 Total 42,90,000

INVENTORIES

Raw -Materials Work-In-Progress Finished Stock

ACCOUNTS RECEIVABLE/PAYABLE

ReceivablesFor Bulk Orders we would provide a 15 days

credit period. Payables

We would be getting 1 month credit facility from suppliers.

ESTIMATED PROFIT & LOSS STATEMENT

Year One Year Two Year Three

Sales 2,364,839 ,202,645 7,591,132

Less cost of

sales

2,096,056 4,578,327 6,604,286

Gross profit 268,783 624,318 986,846

Less expenses 224,740 243,404 345,690

Net income

before taxes

44,043 380,914 641,156

Provision for

taxes

9,043 76,184 145,751

Net income after

taxes

32,900 304,730 495,405

04

/08

/23

15

FINANCIAL PROJECTIONS:BREAK EVEN ANALYIS

B/E(Quantity) =B/E(Quantity) =Total Fixed CostTotal Fixed Cost

Price per Unit – Var. Cost per UnitPrice per Unit – Var. Cost per Unit

0

200

400

600

800

1000

1200

0 20 40 60 80 100

Fixed Cost

Total Cost

Total Revenue

Break-EvenBreak-Even

TR = TCTR = TC

Units Sold

Reve

nue

[ ]

}Variable Cost

You can’t be a successful entrepreneur unless you manage, and if you try to manage without some entrepreneurship, you are danger of becoming a bureaucrat

---Peter Drucker,The Frontiers og Management 1986

HUMAN RESOURCE PLAN.

Board of Directors

Head Baker/chef

Assistant Bakers/chefs

Café Manager

Stewards

ORGANISATION CHART

CAFE MANAGER

Responsibilities:To Oversee daily production.Preparing Work Schedules.Assigning Employee Tasks and supervise

them.Ensures product quality.Purchases of raw materials.Keeps facility running, and clean.Look after Accounting Duties.

HEAD BAKER/CHEF

Responsibilities: Working long hours. Ability to follow recipes. Ability to produce quality product. Ability and experience to use ovens and mixers. Dishwashing and janitorial skills. Delegate work to the Assistant bakers. Maintain hygiene.

ASSISTANT BAKER

Responsibilities: Assist Head baker in baking. Maintain Hygiene. Dishwashing and janitorial skills.

Stewards

Operate Cash register. Take orders and serve customers. Dishwashing, and basic janitorial skills

HR STRATEGIES

Motivation:- Best Recipe Award. Star Chef of the month. Monetary/ Non monetary benefits. Grievance redressal System.

ADDITIONAL TRAINING All staff members will be given six monthly

training for one day on Safe Food Handling Course.

SAFETY MEASURES IN THE KITCHEN

Clean aprons/ gloves for the bakers/ chefs. First aid kit. Proper place for cutlery. Dress code for the stewards. Quality equipments and standardised kitchen.

Designation Salary

Cafe manager 35,000 p.m

Head baker 20,000 p.m

Assistant Bakers 12,000 p.m

Stewards 8000 p.m

SALARY STRUCTURE

OPERATIONS PLAN

The proposed factory will be consisting of 2000 sq. ft. of land starting its first unit at sector 14 koparkhairane.

Whereas the shop areas will be 300 sq. ft for each outlet.

There will be separate area for each departments.

PLANT LAYOUT

WORK PLAN

The proposed bakery outlet will be working from 4.00-am morning to 11.00 pm

4:00am – Start Baking

8:00am – Bakery Opens

11:00 pm Bakery Closes

SOURCING/RECEIVING We will buy in bulk from a list of approved vendors.

Recommendations from competitors, customers and wholesale supply houses are some of the factors .

We also rely on newspapers, magazines and the internet if we require more sources.

The criteria includes conformance of products to our quality standards, certification, timely delivery, minimum order quantities.

We will utilize the visual method to keep inventory check.

PROCESS / METHODS

Equipment used are convection oven, commercial mixers, coffee machines, commercial refrigerators and freezers

some of the other supplies will include bakery boxes , cake boxes, cake decorating equipment, dough forming equipment, food display cases and bread equipment.

CLEANING

To minimize pest infestation.

On a quarterly basis level of quality check.

Training course on cleaning procedures

RAW MATERIALPlain Cakes - Butter, sugar, Maida , baking

powder ,Eggs , flavour

Sweets – Khoya , Maida , ghee , sugar syrup

Chicken Bread – Chicken , Maida , oil, yeast, sugar, salt , masala, onion, Mayonnaise & Ketchup , Cheese

TECHNOLOGY AND PROCESSES

Local machinery or 2nd hand imported machinery available locally

New machinery and installation would not be feasible due to the high costs involved.

Major suppliers of Local and used imported machinery are:

Bakexcel Associates, Vashi Saeed Fabrication Works, Thane

BATCH PRODUCTION

MASS CUSTOMIZATION

PLANT & MACHINERY Automatic oven with different timing and

different temperature.

Oven of 7x7x10 feet with 8 rotating stands having 5 trays on each stand is used

Oven capacity will be: 60-kg biscuits in 30 baking minutes at a

temperature of 150 degree centigrade.

120 pieces of large Pizza in 20-25 minutes at a temperature of 150 -180 degree centigrade.

MACHINERY REQUIREMENT Spiral Mixer, Oven, Burner , Deep freezers,

Frier , Packing machine, Cold storage equipment, Fixed racks , Trays

Repair & MaintenanceAnnual Repair & Maintenance of the plant and

machinery is expected to be 1 % from Year 1 ---

4 and 1.5 % from Year 5 --- 10 of the total machinery cost.

Furniture & fixtures Chairs ,tables & other furniture, Airconditioners

, Computers & accessories , Interior designing cost, Electric installations & other utilities

MARKETING PLAN

THE MARKETING MIX 4 P’S

Products/Services Breads-various varieties Buns Tarts Muffins Cookies Sitting area with

coffee/tea and in-store products

MARKETING MIX Price

Cost plus pricing. but still competitive

Promotion Pamphlets. Billboards. Colleges. Discount coupons.

Place KoparKhairane.

SEGMENTATION, TARGETING AND POSITIONING

Population of Koperkhairne and Navi Mumbai.

Target markets Koperkhairne. Ghansoli. Rabale. Airoli.

Positioning Affordable healthy and Delicious.

SWOT ANALYSIS

Internal Strengths Partnership business Location Homemade recipes

Weaknesses New entrant Increased prices of raw material.

SWOT

External Opportunities Desire for healthier lifestyle. Niche market in urban areas.

External Threats Change in lifestyle trends. Increased fuel prices. Competitors having competitive prices.

MARKETING PLAN BUDGET

Marketing Budget

Advertising Expenses/year

Newspaper --

Pamphlets 20000

Other

Billboard 15000

sponsorship 40000

Promotion and Development

Business cards 1900

Travel expenses 15000

Total Marketing Expenses 91,900

STANDING PLAN

If price of bread decreases:have to either increase sales to a break even

levelthe bakery would have to find a way to

decrease fixed costs Methods

additional stall at the Saskatoon farmers market

craft sales throughout the province

CONCLUSION

THANK YOU