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Business Development Plan: “Chain Restaurant” Of Bhetghat Submitted To: Ashish Tiwari Bishal B. Shrestha Pradeep Rajopadhaya Submitted By: Mahesh Tiwari MBA term 4 1 | Page
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BDP Mahesh Tiwari

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Page 1: BDP Mahesh Tiwari

Business Development Plan:

“Chain Restaurant”

Of

Bhetghat

Submitted To:

Ashish Tiwari

Bishal B. Shrestha

Pradeep Rajopadhaya

Submitted By:

Mahesh Tiwari

MBA term 4

Ace Institute of Management

August 16, 2010

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Acknowledgement

This report has been conducted for the partial fulfillment of our course for the requirement of the

graduate level degree of MBA. The objective of this business plan is to give the real scenario of

the practical life. It encourages the students to have their own venture and give something new to

the society.

My primary indebtness goes to Mr. Ashish Tiwari, Mr. Bishal Shrestha, and Mr. Pradeep

Rajophadya who provides this opportunity and continuously guide and help in each and every

step of this report. Without their coordination and support this work would be incomplete.

This business plan is the result of the continuous effort and hard work. I am very much grateful

to all those who directly/indirectly helped in preparing this business plan. I always believe that

there is always a room for improvement and accordingly I will be looking forward to receive

suggestions, for further enriching the quality of task that I perform.

Finally, I would like to thank to all the people who help me to conduct the research. And I

specially thank Mr. Chetan Bhandari(Bajeko Sekuwa) who provide the related information and

supported me in making this business plan.

Sincerely,

Mahesh Tiwari

MBA 4th term,

Ace Institute of Management

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Copyright @ all rights reserved

No part of this report may be reproduced, stored or transmitted in any form, or by any means,

without the prior permission of BHETGHAT RESTAURANT/ AUTHOR. No patent liability is

assumed with respect to the use of the information, contained therein. Although every precaution

has been taken in the preparation of this report, the authors assume no responsibility for error or

omission.

Date: 15th August 2010,

Ace Institute of Management

Affiliated to Pokhara University

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Disclaimer

The author is confident that the results of the information in this business plan/report will be

taken as guidance of a more comprehensive study on a future date for the concerned field. The

author is not responsible or liable, legally against the results and consequent decisions based on

the response and decisions given from the author. The views and findings that are included are

entirely based on the authors’ personal experience and views.

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Declaration

I, the undersigned, declared that this report entitled is a result of my own research carried out in

the year 2010. It has not been previously submitted to any other university for any other

examination.

Signature,

…………….

Mahesh Tiwari

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Executive Summary

BHETGHAT RESTAURANT is a locally owned well established restaurant in Narayangarh. It

is established in the year 1988 and is the inventor of the product TASS.The unique blend of taste

and the quality that it serves make it different from others. Since 2 decades we are serving in the

local market of Narayangarh with the overwhelming response from the customers. Today the

core product “TASS” invented by the restaurant owner is being popular inside the country as

well as outside the country. Now in order to expand its market and facilitate the people of

Kathmandu valley it is going to open up the chain restaurant in Kathmandu valley. BHETGHAT

RESTAURANT will provide a combination of excellent food at value pricing, with fun

packaging and atmosphere. BHETGHAT RESTAURANT is the answer to an increasing demand

for snack-type fast food, to be consumed while shopping as well as it can be taken as dinner or

lunch.

As we know that location plays a crucial role in the success and failure of the business we choose

to established our restaurant in the area from Tinkune to Bansewor. For this we will be spending

about Rs 70laks. Among it 40 lakhs will be funded from the owners pocket and rest will be taken

from the bank. Since from the 2 decades we are involved in the restaurant business we believe

that our experience and our manpower involved in it will be our greatest assets.

Our main priority is to make our core product TASS familiar to the residents of Kathmandu and

to expand our business. We will be focusing our product to the working class people as well as

youngsters, as we believe that they are the one who wants quality and taste in the reasonable

price. For this we decided to keep the price Rs 120 per plate which is a bit cheaper than the

existing market. But we think that we can make profit in this rate also. Later, our effort will be a

further development of more retail outlets in the surrounding area with the third year of

operation.

For advertisement of the product we will be spending about Rs1000000 in the advertisement

from national daily to the visual ads in the national television. From our experience we say that

until and unless we cannot cross the daily sales of Rs 50000, we can no more make profit of Rs

2000000 per year.

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Table of Contents

Acknowledgement i

Copyright ii

Disclaimer iii

Declaration iv

Executive Summary v

1. Company Description 1

1.1 Objectives 2

1.2 Mission 2

1.3 Key to success 2

2. Company Description 4

2.1 Company Ownership 4

2.2 Start up Summary 4

2.3 Company Locations and facilities 4

3. Products 5

3.1 Product description 5

3.2 Competitive Comparison 5

3.3 Sales Literature 6

3.4 Sourcing 6

3.5 Future Products 6

4. Market Analysis Summary 7

4.1 Market Segmentation 7

4.2 Target Market Segmentation Strategy 8

4.2.1 Market Needs 8

4.2.2 Market Trends 9

4.3 Industry Analysis 9

4.3.2 Trends in food service retail 10

4.3.2 Competition 11

4.3.3 Main Competitors 11

5. Strategy and Implementation Summary 13

5.1 Competitive Edge 13

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5.2 Marketing Strategy 13

5.2.1 Pricing Strategy 14

5.2.2 Brand Challenges 14

5.2.3 Marketing Programs 14

5.2.5 Positioning Statement 15

5.3 Sales Strategy 15

5.4 Strategic Alliance 15

5.5 Milestones 15

6. Management 16

6.1 Management Team 16

6.2 Organizational Structure 17

6.3 Personal Plan 17

7. Financial Plan 18

8. Critical risk and contingencies 22

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1. Company description

BHETGHAT RESTAURANT is a well renowned restaurant in the Narayangarh. It is established

in the year 1988. It is mostly famous for its TASS. The taste and service that it provides makes it

different from others. The core product of my restaurant is TASS, which is made up of mutton

meat. Besides it also serves various mutton varieties as well as momos. The product name TASS

was named by Mr. Govinda Prasad Tiwari(owner of the restaurant). He is the one who created

the product and marketed it. Today the product is getting popular day by day. Not only inside the

country but outside the country. Even if we talk about the Kathmandu valley we can found many

restaurants saying Chitwan ko tass or Narayangarh ko tass. And if we talk about the market

response about the product we are the market leader. Since from the establishment date to till

now we left all our competitors far behind in Narayangarh. This can also be proved by the survey

conducted by the “NEPAL MAGAZINE” in the year 2008 a part of Kantipur publication which

puts us in the Nepal’s top 10 best place to eat outside valley. So this encourages us to remain in

the business and expand this business further. So my idea is to establish the chain restaurant of

BHETGHAT RESTAURANT in Kathmandu valley.

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1.1 Objectives

To establish a presence of a successful restaurant in Kathmandu valley and gain a market

shares in the restaurant business.

To continue providing highest quality of food and service to the customer.

To make people aware about TASS and its taste.

To make Bhetghat Restaurant a destination spot for mutton lovers.

To expand into a number of outlets by year three, and expand the business territory.

Maintain and expand my outstanding reputation.

1.2 Mission

Our main goal is to be one of the most successful restaurants in the Nepalese history by

establishing the highest number of chain outlets inside the country. Customer satisfaction

and education are our paramount missions. We will endeavor to meet the highest standards of

excellence through superb customer service and consistent product delivery in a friendly and

comforting environment.

We seek fair and responsible profit, enough to keep the company financially healthy and ensure

continued growth and development.  Responsible profit will fairly compensate owners and

investors for their risk and reward employees for their hard work, loyalty and commitment.

Employee welfare, participation, and training are equally important to our success. Every

employee will be treated fairly, with dignity and the utmost respect. It is our responsibility

to provide employees with a friendly, comfortable and challenging work environment with

opportunities for growth and development.

1.3 Keys to Success:

We are the inventor of the product TASS.

No one can make better than we can in terms of taste. Our taste is superior than others.

We are the market leader as well as we only have the formula of ingredients to be mix up

in making TASS.

We have the 22 years of experience in making this product.

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Till the date of establishment to now we have consistency in taste and quality of food that

we deliver.

We have no complaints regarding the quality and hygiene.

From our experience we can understand our customer’s choice and their wants.

Provide 100% satisfaction to our customers and maintaining the level of excellent

services among other competitors.

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2. Company description

2.1 Company Ownership

BHETGHAT RESTAURANT is a privately owned company registered as a sole proprietorship.

So everything expenses that will be occurring in opening up a new venture will be incurred by

the owner itself. There will be no partnership involved.

Reinvestment of earnings will be the backbone of this business after start-up and will ensure

future growth and achievement of the company's goals. A second and possibly third round of

private investment may be considered to aid the company's expansion plans in years two and

three of operations.

2.2 Start-up Summary

Start-up expenses and assets are shown below, and the majority of these funds will be used for

interior design, furniture’s, utensils and to pay rent for three months prior to opening. No legal

costs will be incurred rather than taking license from the Municipality, Small and Cottage

industry as well as Company registered office. Start-up assets include first time investment for

the furniture. Purchases of equipment assets such as kitchen equipment including gas stoves,

utensils and other necessary items, ambient display cases, refrigerators and freezers

and miscellaneous one-time furnishings are necessary. The company anticipates the need for

liquid cash for operating expenses, unforeseen company expenses and to help cover wages for

the first three months of business.

2.3 Company Locations and Facilities

Talking about the location of the restaurant, it will be located in corporate area where we can

have plenty of parking spaces. So it will be located in Tinkune or Baneswor area. The

restaurant must have the space of about 5000 sqft where 100 peoples could enjoy their dinning.

We will equip the restaurant with modern furniture and aim for cleanliness and an open feeling.

We are currently looking at several possible sites in the valley. All of these qualities are

consistent with BHETGHAT RESTAURANT‘s goal of providing a top quality fast food

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experience. We want "word-of-mouth" to be our best form of marketing, where our customers

value our brand as something exciting and cannot wait to tell their friends and neighbors.

3. Products

We have the experience of making the mutton varieties, so we will be serving mutton as well as

chicken items. As we are renowned in the market because of TASS, we will be focusing on our

core product TASS. Not only this we will also be serving chicken items. We will serve our

customer with various domestic as well as international alcoholic drinks so that customer can

have quality time in our restaurant we will offer various merchandise with our logo and colors,

from hats to t-shirts to our core product ,so that our customers can enjoy TASS at home.

3.1 Product Description

BHETGHAT RESTAURANT is primarily selling TASS and mutton MOMO since 2 decades in

Narayangarh and we will continue it in Kathmandu valley also. Along with this we will

facilitate with chicken varieties. Main products sold will be: mutton TASS and MOMO. Making

mutton TASS is not an easy job. It includes hard work and the right combination of more than

25 various ingredients. After the mixture of the ingredients we need at least 3 hours of deep

freezing for the better taste, and then we have to cook at 300 degree centigrade.

3.2 Competitive Comparison

BHETGHAT RESTAURANT has several advantages over its leading competitors:

Inventor of the product. So the composition to be mixed up is only be known by us.

Market leader since its establishment.

It has got the formulae of ingredients to be mixed up in making tass.

Well renowned.

Superior taste than any other competitors.

Experience of 22 years in making the product.

Understand customer demand and choice easily.

High customer satisfaction rate.

We provide better quality, fresh and hygienic food in the cheap price than any other.

We expect a high degree of enthusiasm and offer a fun store with friendly staff that

reflects the company's youthful and energetic culture.

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3.3 Sales Literature

BHETGHAT RESTAURANT will use advertising and sales programs to get the word out to the

customers. Since it is already recognized business but we are opening up the outlet in

Kathmandu valley we need aggressive marketing of the product.

Front page advertisement in the leading newspaper “Kantipur daily” 1 time a week for a

month. Similarly 10,000 color brochures to be distributed throughout destination shopping mall

and facilities: in-store, cinemas, area eateries for making people aware about the product TASS.

Similarly putting banners and hoarding boards in the places like Maitighar, Thapathali,

Kantipath, Jamal and so on.

Making a visual ad and broadcasting it in the leading television channels.

3.4 Sourcing

For making the TASS we need mutton meat. For this the “khashi” must be young and should

not cross the age of 1 year. And this type of khashi is difficult to be available in our market so

we need to bring it from india. Actually we need to bring it from the place called varganjh 300

km away from gorakhpur. We have our own channel involved in all this process in

Narayangarh. So we will continue with it in Kathmandu also. For this we have to provide a

place to our vendor in Kathmandu for processing and he will deliver what the type of product

we want.

3.5 Future Products

For now, we will focus on selling our core product TASS and MOMO. However, as we grow

further, we will add new categories to our menu, such as Beakfast, Lunch, Dinner as well as

Chinese and continental dishes also.

In the future, our growth strategy will be opening up the restaurant in major cities of the country

as well as opening up off highway restaurants also.

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4. Market Analysis Summary

Looking at the trend of consumers expenditures for fast food in Kathmandu valley gives the

positive vibes to open up the restaurant. The increasing number of new establishments such as

fast food franchises, fancy restaurants and gourmet bakeries has shown a significant growth in

this sector. Today due to the busy life most of the people prefer to eat in the restaurants. The only

thing we need keep in mind is quality with the value for their money. So for this we will be

focusing to all type of age groups people.

Age - Youngsters, single, currently enrolled in college and high school.

Family unit - We will also appeal to families (young families) with children.

Gender - We will target both sexes, with a slight skew for males due to their lower

attention to dietary concerns.

Income - We will appeal to the medium income individuals and to all in the lower

medium income bracket.

According to a recent public survey of people 15 - 45 years old, 80% of those interviewed like

fast food. 90% of them like fast food on a regular basis, and 10% of them claimed that they like

fast food "very much," or "love" fast food. The survey also provided the following particular

reasons for the increasing popularity of fast food:

Most of peoples love to window shop, and when they do strolling around the shopping

district, they need a quick bite to accommodate their activities.

Eating out is being a trend for the people of Kathmandu. They now think it is a part of

life. They do perceive fast food restaurant is a best place to enjoy with friends and relatives.

4.1 Market Segmentation

We are targeting middle class people as well as office going peoples will be our primary market.

For this Tinkune is the best place for the restaurant to meet and hang out. Tinkune is near to the

international airport as well as a minute distance drive from Baneswor. So people working in the

international airport from executives to officers will be our target customers.

Our secondary market segment is the "Working peoples." With so many places in the valley,

Baneswor is the appropriate place for the young people as well as working peoples. Most of the

offices as well as corporate houses are located in this place. So we had the better chance of

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success in the business, but we also need to face tough competition. It is found that there are

almost 25 big to small restaurants including bakery café’s which will be serving somewhat

similar to our products.

4.2 Target Market Segment Strategy

BHETGHAT RESTAURANT intends to cater to the bulk of working class people as well as

youngsters in kathmandu. We have chosen this group for several important reasons. It is our goal

to be "the extraordinary fast food restaurant" and we believe that the age group from 20+ and

above is the primary age where brand building efforts could take place. They are on limited or

fixed incomes and seek a value/price relationship that will not stretch their budgets.

Our secondary target is between the ages of 25 and above, which are a heavy lounge/restaurant

user group. They are more flexible in budgets and seek more than a value/price relationship.

Our strategy is, we are featuring MUTTON TASS to fill people’s craving for fast food as most

ideas of lunch as well as snacks.

Second, we want to keep the price point at lunch as fair as possible to keep us in competition

with other fast food outlets. At Rs 120 per plate, we are only slightly below the segment, but we

offer much more excitement than the rest of the competition.

4.2.1 Market Needs

 A recent Consumer Trend and Analysis identified the following needs among our target

markets. Our core group:

Wants variety and flavor in its food, preferably something chilly and spicy.

Looks for speed of service

Wants an entertaining and fun experience

Insists upon a clean, friendly, and attractive environment

Adopts a global lifestyle

Enjoys eating out

Wants best food in a cheap price.

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According to a Report published from various organizations Kathmandu valley solely

consumes 40% of the meat products in Nepal. It includes buff,chicken,mutton,and so on.

This is caused because of the huge population of the valley as well as trend of eating outside

in a restaurant. Similarly this is also caused by the increasingly younger demographic and

rising incomes throughout Kathmandu valley that have led to lifestyle changes that are

influencing consumer purchases, food, and entertainment choices. Some changes taking

place include a larger professional class along people along with working women, which

mean greater disposable incomes.

4.2.2 Market Trends

In the past, most of the people prefer vattis as well as newari khaja ghar as the place to hang out.

But these trend is being changed recently. People prefer restaurants, pubs, bars, cafes these days.

The success of locally grown brands such as ALINA’S BAKERY CAFÉ’S, BAJEKO

SEWUKA,AIRPORT SEKUWA and so on gives the better picture of the people shifting towards

these places. Similarly most of the Nepalese still prefer for the chilly and spicy food. They want

something twakka tukka that could give better taste for their tongue. In this scenario TASS could

be the best option for them.

Though many restaurants have already been opened in the valley for providing the same service

that we serve but we are not afraid of it. Because we still believe that we can serve in the better

way than others in terms of quality, service, and ambience. Today also if we visit the airport side

then we can find many restaurant providing these type of services and huge mass of crowd

waiting to be benefited. The crowd found in those restaurants still proves that there is the

opportunity for this type of restaurants.

4.3 Industry Analysis

Despite the prolonged effects of the Economic Crisis followed by political turmoil in our country

food service industry witnessed growth every year. Much of this growth was contributed by the

cafes/bars, fast food, and food retail sectors, whose wide appeal amongst a young population, for

whom time is of a premium, led to high levels of growth. This growth is underpinned by market

demand and lifestyle changes, such as seeing eating out as part of trendy lifestyle.

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Entry of big restaurants, pubs, cafes into the major destination places like Durbargmarg,

Baneswor,Jawalakhel and so on led to the growth in competition in the marketplace, mainly

from fast food chains. This stimulated the rise in the number of fast food units, both of

international and local chains that started recently. Although there was a slowdown during the

maoist insurgency, the food service industry recovered faster than others, particularly after the

peace process.

Franchising became popular in the food service industry through the introduction and entry of

multi-national food service brands, primarily U.S.-owned enterprises, such as KFC, and Pizza

Hut .Currently, there are many local chains that have also experienced growth by applying this

system to their operations, as for the example Bajeko sekuwa, Alina’s bakery café, Road house

café, and so on.

4.3.1 Trends in Food Service Retail

According to government surveys, people’s spending on "eating out" is continuing to increase.

Spending on cooked food as a percentage of total average food-spend is increasing day by day.

The growth in spending in the food service sector arises from a number of factors:

Increased affluence amongst people, especially those under the age of 40 years.

Increases in the number of outside residents.

Increased convenience-seeking amongst working class people who live in a hectic city

today compared to the much slower pace of life that existed 20 years ago.

When they want convenient cooked food, then they could hardly find. Because of the huge

newar residents in Kathmandu valley everywhere we find the Newari restaurants who serve buff

items only. But for Brahmins it’s being difficult as they prefer mutton varities. So opening up a

restaurant which provides pure mutton varities along with other varities will be the additional

benefit.. As the numbers and variety of food service outlets has increased in Kathmandu valley,

locals have adopted the convenient products of other food service outlets, especially the fast food

outlets, as alternative sources of convenient cooked food. Younger middle and upper income

group families and individuals are also frequent users of the full service restaurants, modern-

style coffee shops and cafés that now exist all across valley.

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Over the past 5 years, there has been a general upgrading in the food service sector which has

seen the establishment of more air conditioned food centers (food courts) that are considerably

cleaner than the traditional hawker markets. At the same time, increased investment from foreign

and local businesses in the sector has also produced an increase in the numbers of:

Foreign chains, including chains such as KFC AND PIZZA HUT.

Modern retail bakery/café outlets such as ALINAS BAKERY CAFÉ, ROAD HOUSE

CAFÉ and so on..

Modern coffee shops.

Domestic chain restaurants such as BAJEKO SEKUWA, AIRPORT SEKUWA and so

on.

4.3.2 Competition

The competition in this arena is the fiercest. Kathmandu is a compact city, but has a lot to offer.

Usually there are a minimum of two to three of restaurant outlets within a radius of less than 300

meters. For instance, if we talk about Baneswor and Durbargmarg we can find 3-4 restaurants in

the same building. One restaurant in one floor and other in the next floor. Due to the high volume

of population and limited space in the Kathmandu valley it is quite common.

Another reason is because many retailers do not want to lose sales opportunity, as the

competitors are offering substitutions and similar product categories. This phenomenon has made

Baneswor and Durbargmarg as well as Kumaripati the best place to eat.

4.3.3 Main Competitors

Our main competitors in this segment are food outlets within the 1000 meter radius along the

Baneswor Road. In our location, there are Alina’s bakery café,Rosemary café,Indreni food land,

Bajeko sekuwa,Siddarth food land, Lama sekuwa corner, prem sekuwa corner .

A. Alinas Bakery Cafe

Alina’s Bakery Café is locally owned franchise having the largest chain outlet in Kathmandu

valley. It has got around 12 outlets and it one of the well reputed Café Since from the

establishment it is serving Chinese Indian and continental food along with Newari khaja’s.

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B. Rosemary café;

Rosemary café is also a locally owned café. It is established in the year 2061. It is popular among

teenagers because of the quality and price of the café. It also serves Chinese, Indian,continental

as well as local foods also. Rosemary café is a good place to hang out, and the place is always

full during lunch hour. It has more than enough tables to serve a maximum of 125 guests. Its

specialty is all-you-can-eat pizza!

C. Bajeko Sekuwa

Bajeko sekuwa is one of the well established and reputed restaurant in Kathmandu valley as it

has 7 outlets.Since from the establishment in the year 2047 it is serving mutton sekuwa and

mutton varities. Our core product Mutton Tass and sekuwa is somewhat similar so to compete

with already established brand is a big challenge for us.

D. Lama Sekuwa Corner

Lama sekuwa corner is also one of the reputed restaurant in the restaurant industry. It is located

in sinamangal and serve both mutton as well as buff varities. But the ambience and hospitality of

lama sekuwa corner is not upto the mark.

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5. Strategy and Implementation Summary

At first, we will open one outlet in Tinkune area or Baneswor area. This will become our "market

testing area," and as we go further in near future we will open up in other places also. In

attracting customers to try our TASS, we will provide a see-through kitchen, so that people will

see how we are committed to freshness in our products.

The kitchen will also let out an aroma of our freshly fried fries into the surroundings area, so that

people will come and try our products.

5.1 Competitive Edge

Our unique and tongue licking taste blend with local flavor gives value to the customer.

Enthusiastic and friendly staff

Supporting merchandise items that support company's brand building.

Our TASS are made of 100% fresh meat, unlike the frozen meat used by competitors.

Innovative ingredients mixed with 25 varities of masala will position us in the different

level than competitors.

5.2 Marketing Strategy

Our strategy is based on serving our markets well. We will start our first outlet as a "market

tester" that could become a model of the expanding number of outlets in the future.

Concentration will be on maintaining quality and establishing a strong identity in the local

market.

A combination of local media along with national media will be utilized. Local media marketing

is most effective, followed by print ad. As soon as a concentration of restaurant is established in

a market, then broader media will be explored. We believe, however, that the best form of

advertising is still "buzz." By providing already established product in the town, with unbeatable

quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town.

Therefore, the execution of our concept is the most critical element of our plan. We will actively

build our brand, through various forms of advertising like paper ad, visual ad in national

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television, promotional items and other marketing gimmicks better than those of other

restaurants.

5.2.1 Pricing Strategy

Our pricing strategy is positioned as "generic", meaning that Rs120 per plate is the average

consumer spending for a snack or light lunch in Kathmandu. Along with it we will be serving

mutton momo at Rs 80 per plate. Not only this we will also be serving various other liquors and

beverages along with different food items.

5.2.2 Brand Challenges

Though BHETGHAT RESTAURANT is already established brand in Narayangarh but we need

to establish a distinct brand to stand out from the other in Kathmandu valley.

Our logo is distinct as fresh, energetic and playful with color elements that are eye

catching.

Product name is geared toward the target market (working class people), I;e TASS, and

this makes people easy to remember.

5.2.3 Marketing Programs

We will deploy three different marketing tactics to increase customer awareness of TASS. Our

most important tactic will be "word-of-mouth". This will be by far the cheapest and most

effective of our marketing programs because of the high traffic in targeted Places.

The second tactic will be local marketing. These will be low-budget plans that will provide

community support and awareness of our product. The last marketing effort will be utilizing

national media. This includes visual media as well as paper media. Although, this will be the

most costly, this tactic is the most effective and huge mass covering. 

Local Marketing

o Distributing brochures and pamphlets containing our concept and product detail.

o Wall posters.

o Design concept.

o In-store viewing of making TASS process from making to cooking.

o Standing signage inside malls’ lobby/aisle.

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o Grand opening promotion.

o Party catering.

 

Local Media

o Direct mail piece – containing brochures sent to surrounding addresses.

o Local magazines that target our core customers, such as Free! Magazine.

o Newspaper campaign – placing several large ads throughout the month to aware

our product to the local area.

5.2.4 Positioning Statement

Our main focus in marketing will be to increase customer awareness in the surrounding

community. We will direct all of our tactics and programs toward the goal of explaining who we

are and what we are all about. We will price our products fairly, keep our standards high, and

execute the concept so that “word-of-mouth” will be our main marketing force.

5.3 Sales Strategy

The sales strategy is to build and open new locations in order to increase revenue. However, this

plan will be implemented when the one "market tester" outlet showed potential growth. As each

individual location will continue to build its local customer base over the first three years of

operation, the goal of each restaurant is to cross the sales of Rs 15000000 in annual sales, with

the each outlet to earn about Rs 2000000 per year.

5.4 Strategic Alliances

Our business requires a long relationship with raw suppliers as well as partner vendors. Which

we called business bonding. We already have a long and good standing relationship with our

meat suppliers called Vanja Meat supplier in Narayangarh. So we will continue it in Kathmandu

too, and we hope to strengthen further our business relationship as well as his business also.

5.5 Milestones

During the initial set up of the company, the co-founder Mr. Mahesh Tiwari will conduct the

planning and implementation in building the brand and the construction of our first outlet.

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Similarly Mr.Govinda Prasad Tiwari will look after the public relation. Similarly Mr. Govinda

Tiwari will also look after the hiring staff as he has the experience of 2 decades on running the

business. The planning and construction will take approximately 2 months, in addition to the

revision and refinement process for the meat processing and settling of our own vendor it might

take extra 2 months. So we are planning to open up the restaurant in the year 2011.

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6. Management Summary

The initial management team depends on the founder, with little back-up. As we grow, we will

take on additional help and hire certain peoples in certain key areas. Part of our basic philosophy

will be able to run our executive management as a "knowledge sharing" fellowship. We will not

add additional overhead until absolutely necessary. This will mean that the initial staff support

team will have to work extra. By doing this, we will keep our overhead as low as possible,

allowing us to adequately staff our outlets. This will also allow us and future business partners to

recoup investments as quickly as possible and enjoy a higher return.

At present time, two people Mr.Mahesh and Mr.Govinda Tiwari will look after all the areas as

far as possible. Others that have helped on the development of this business venture will be

offered an opportunity to grow together with us company at the appropriate time, and when

necessary.

6.1 Management Team

BHETGHAT RESTAURANT today where it stands is all because of Mr. Tiwari who worked

day and night to sustain his living as well as to give something new in his business. So he will be

the director as well as founder of the restaurant. As the restaurant is small in nature, it only

requires a simple organizational structure. Implementation of this organization form will be in

between two peoples to make all major management decisions in addition to monitoring all other

business activities. As we expand into multiple locations, each location will have a primary site

manager.

6.2 Organizational Structure

Future organizational structure will include a director who will look after all the outlets from

Narayangarh to Kathmandu. He will be responsible for all the activities involved in running the

business. Besides there will be supervisory as well as managerial level. In the management level

there comes human resource manager, outlet manager to finance manager and store manager.

But the Current plan is to have only 15 peoples including outlet manager to security guard.

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6.3 Personal Plan

Our initial employees will include one cashier, who will look after cash and keep the daily

records of the transactions. There will be 2 cooks. One will be our head cook cook of

Narayangarh and other will be his helper. As our head cook has the experience of 18 years in

making the product, he will give his best to satisfy the Kathmandu crowd. He will be in

Kathmandu branch for six month period, and then we will train other staff to provide the same

quality. Similarly there will be 4 waitors, 2 will be from Narayangarh branch and rest we will

hire here only. Same as there will be 2 dishwashers,2 helpers, one bar tender and two security

guards. Each employee will work for 14 hours a day. And the working hour will be 10AM to

10PM. Employees will be given 2 days leave in a month and10 days leave in Dashain and 3 days

leave in Tihar. Similarly they will be given other holidays looking after the situation and

condition of the business. We will also provide providend fund facility and medical as well as

insurance facility too. Each and every employee will have the life insurance of Rs 500000. In the

long run, as we expand our product category and retail outlets, we will employ more people in

the middle management to ensure the focus of our work smoothly and effectively.

Personnel plan:

Outlet manager: Rs 15000 per month.

Chef: Rs 13000 per month.

Cashier: Rs 10000 per month.

Waiter: Rs 5000 each/ per month.

Bar tender: Rs 7000 per month.

Helpers: Rs 3000 each/per month.

Dishwashers: Rs 5500 each/per month.

Security guard: Rs 7500each/per month.

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7. Financial Plan

Initial Sources and Uses of Funds

Sources of Fund  Equity                      4,000,000 Long term debt                      3,000,000 Total sources of fund                      7,000,000    Uses of fund  Furniture                      1,400,000 Utensils                         800,000 Machinery                      1,400,000 Inventory                         500,000 Total uses of fund 4,100,000 Cash in hand                      2,900,000 

Uses of Funds at the beginning of 3rd year

Sources of FundEquity                      4,500,000 Long term debt                      3,000,000 Total additional cash 7,500,000

Uses of fundFurniture                      1,800,000 Utensils                      1,000,000 Machinery                      1,900,000 Additional Inventory                         600,000 Total uses of fund 5,300,000 Surplus Cash                      2,200,000 

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Income StatementYear

Particulars 2011 2012 2013 2014 2015Sales 18,000,000 19,800,000 29,700,000 32,670,000 35,937,000

Less: Cost of goods sold 9,000,000 9,900,000 14,850,000 16,335,000 17,968,500Gross Margin 9,000,000 9,900,000 14,850,000 16,335,000 17,968,500

Less: Other expensesRent 1,200,000 1,320,000 2,904,000 3,194,400 3,513,840

Marketing Expenses 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100Staff Expenses 1,440,000 1,584,000 3,484,800 3,833,280 4,216,608

Utilities 240,000 264,000 528,000 580,800 638,880Repairs and maintenance 100,000 110,000 242,000 266,200 292,820

Interior Decorations 1,000,000 1,000,000Miscellaneous 200,000 200,000 200,000 200,000 200,000

EBDIT 3,820,000 5,322,000 5,281,200 6,929,320 7,642,252Less: Depreciation 540,000 540,000 1,245,000 1,245,000 1,245,000

EBIT 3,280,000 4,782,000 4,036,200 5,684,320 6,397,252Less: Interest expense 480,000 410,204 809,240 645,526 455,618

EBT 2,800,000 4,371,796 3,226,960 5,038,794 5,941,634Less: Tax (25%) 700,000 1,092,949 806,740 1,259,698 1,485,409

Net Income 2,100,000 3,278,847 2,420,220 3,779,095 4,456,226

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Balance Sheet

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2011 2012 2013 2014 2015AssetsCurrent Assets

Cash 3,483,774 3,872,636 6,684,945 7,165,478 7,528,271Accounts Receivable 180,000 198,000 297,000 326,700 359,370Inventory 500,000 500,000 1,100,000 1,100,000 1,100,000

Total Current Assets 4,163,774 4,570,636 8,081,945 8,592,178 8,987,641Long term Assets

Furniture 1,400,000 1,400,000 3,200,000 3,200,000 3,200,000Utensils 800,000 800,000 1,800,000 1,800,000 1,800,000Machinery 1,400,000 1,400,000 3,300,000 3,300,000 3,300,000

Less: Accumulated Depreciation 540,000 1,080,000 2,325,000 3,570,000 4,815,000Total Long term Assets 3,060,000 2,520,000 5,975,000 4,730,000 3,485,000Total Assets 7,223,774 7,090,636 14,056,945 13,322,178 12,472,641

Capital and LiabilitiesCurrent Liabilities

Accounts Payable 450,000 495,000 742,500 816,750 898,425Total Current Liabilities 450,000 495,000 742,500 816,750 898,425Long term Liabilities

Long term loan 2,563,774 2,057,751 4,034,538 2,847,612 1,470,765Total long term loan 2,563,774 2,057,751 4,034,538 2,847,612 1,470,765Capital

Shareholders’ equity 4,000,000 4,000,000 8,500,000 8,500,000 8,500,000Retained Earnings 210,000 537,885 779,907 1,157,816 1,603,439

Total Capital 4,210,000 4,537,885 9,279,907 9,657,816 10,103,439Total Capital and Liabilities 7,223,774 7,090,636 14,056,945 13,322,178 12,472,629

Cash Flow Statement2011 2012 2013 2014 2015

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Beginning Cash Balance 2,900,000 3,483,774 6,072,636 6,684,945 7,165,478Cash InflowsSales 18,000,000 19,800,000 29,700,000 32,670,000 35,937,000Less: Accounts Receivable 180,000 198,000 297,000 326,700 359,370Total Cash Inflow 17,820,000 19,782,000 29,601,000 32,640,300 35,904,330Total Cash Available 20,720,000 23,265,774 35,673,636 39,325,245 43,069,808

Cash OutflowsCost of goods sold 9,000,000 9,900,000 14,850,000 16,335,000 17,968,500Less: Accounts payable 450,000 495,000 742,500 816,750 898,425Cash outflow on COGS 8,550,000 9,855,000 14,602,500 16,260,750 17,886,825Rent 1,200,000 1,320,000 2,904,000 3,194,400 3,513,840Marketing Expenses 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100Staff Expenses 1,440,000 1,584,000 3,484,800 3,833,280 4,216,608Utilities 240,000 264,000 528,000 580,800 638,880Repairs and maintenance 100,000 110,000 242,000 266,200 292,820Interior Designing 1,000,000 1,000,000Miscellaneous Expenses 200,000 200,000 200,000 200,000 200,000Loan Paid 916,226 916,226 1,832,453 1,832,453 1,832,453Taxes paid 700,000 1,092,949 806,740 1,259,698 1,485,409Drawings 1,890,000 2,950,962 2,178,198 3,401,186 4,010,603Total Cash Outflow 17,236,226 19,393,138 28,988,691 32,159,767 35,541,537Ending Cash Balance 3,483,774 3,872,636 6,684,945 7,165,478 7,528,271

Beginning Principal 3,000,000Interest Rate 16%PVIFA of 16% for 5 yrs 3.27Annual Loan Payment 916,226

Loan Payment Schedule

Year Beginning Principal

Amount Paid

Interest Expense

Principal Paid

Ending Principal

2011 3,000,000 916,226 480,000 436,226 2,563,7742012 2,563,774 916,226 410,204 506,023 2,057,7512013 2,057,751 916,226 329,240 586,986 1,470,7652014 1,470,765 916,226 235,322 680,904 789,8612015 789,861 916,226 126,378 789,849 12

Loan Payment Schedule

Year Beginning Amount Interest Principal Ending

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Principal Paid Expense Paid Principal2013 3,000,000 916,226 480,000 436,226 2,563,7742014 2,563,774 916,226 410,204 506,023 2,057,7512015 2,057,751 916,226 329,240 586,986 1,470,7652016 1,470,765 916,226 235,322 680,904 789,8612017 789,861 916,226 126,378 789,849 12

8. Critical risks and contingencies:

When we talk about opening up the new venture it is not an easy job. For the smooth operation

of the business everything need to be in perfect condition. When we talk about our venture then

definitely it is not an easy. Bringing raw material “khassi” from india may not be as easy as we

think. The risk factor associated with it will be political instability. When there is no smooth

operation of the government then different groups and forums will open up in no time. Threat

from those peoples along with local gangsters for money can be a risk factor for us. Similarly

settling our local suppliers of Narayangarh in Kathmandu will be the other problem for us. As we

need the best quality of meat we cannot believe in other suppliers of Kathmandu. Because what

we have found that they are selling ship meat saying as mutton. The bands and hadtal from

various political parties and their sister organizations can create disturbance in our business.

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Appendix

FOOD MENU OF

BHETGHAT RESTAURANT

PARTICULARS               AMOUNT PER PLATE (RS)

MUTTON TASS                                                120

MUTTON SEKUWA   140

HYAKULA    150

KALEJO   150

SEKUWA SADEKO   160

HEAD BOIL   140

HEAD FRY   140

HEAD POLERA   140

GIDI FRY   150

RAJKHANI/NASHA   200

MUTTON MOMO    80

MOMO FRY   100

VEG MOMO   60

VEG MOMO FRY   80

VEG CHOWMEIN   60

MUTTON CHOWMEIN   100

MIXED CHOWMEIN   100

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                         BEVERAGE MENU OF

BHETGHAT RESTAURANT

SOFT DRINK

PARTICULARS  AMOUNT RS (PER BOTTEL)

COLD DRINKS 30

CAN JUICE  80

REAL JUICE 30

PLAIN LASSI 35

BANANA LASSI 45

ALHOLIC DRINKS

PARTICULARS  AMOUNT RS (PER BOTTEL)

TUBORG BEER 220

SANMIGUEL BEER 220

CARLSBERG 250

NEPAL ICE 200

LOWRENBREW 200

CAN BEEER 140

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HARD DRINKS

PARTICULARS        QUARTER                    HALF      FULL BOTTLE

SIGNATURE 280  550         1020

ROYAL STAG 240   460          900

MC DOWELLS 240 460     900

BAGPIPER  240  460              900

KHUKHURI RUM  240  460              900

VODKA  220  440               870

GIN 220  440                870

  

THE ABOVE RATE IS SUBJECT TO CHANGE AS PER THE MARKET CONDITION.  ADDITIONAL 10%SERVICE CHARGE AND 13% VAT WILL BE CHARGED.

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