Operation Management of a Mushroom restaurant

TANJINA MAHBUB (12-95694-2)IFFAR ARA (13-96629-1) SHAHIDA SULTANA (12-96337-3)PARVIN CHY (13-96529-1)SK. MD. TAHA (13-96562-1)

Welcome to our presentation

The Restaurant of Mushroom Recipes

Business: Restaurant Business

Name: Kitchen of Mushroom

Our Mission:To take place in people’s mind by sharing delicious tastes and creating joyful memories with one of the most popular, nutritious and medicinal Vegetable-Mushroom.

Our Vision:Introducing Mushroom as an alternate of high price vegetables and medicine.

INTRODUCTION

Types of Mushroom

• White Mushrooms• Crimini Mushrooms• Portabella Mushrooms• Oyster Mushrooms• Shiitake Mushrooms• Enoki Mushrooms• Beech Mushrooms• Maitake Mushrooms

Why Mushroom?Usually people choose the products which are familiar, available in market or easy to produce. But it could be a big challenge to bring something which is new and only available to us. And that will create the demand and customers for it. So, that’s why we choose Mushroom as our core ingredient, because-1) Still in Bangladesh people are not well known with mushroom or mushroom made food items. 2) It is not much available in our local market and where found is very much expensive. 3) Mushroom production is not easy and time consuming, but if know the right procedure it needs less labor, space, and invest. 4) Mushroom production is highly profitable because of less labor, space and investment. 5) Many people don’t even know how to process and cook mushroom.

FOOD VALUE OF MUSHROOM• source of phosphorus, magnesium, potassium and selenium• contains low sodium, carbohydrate, copper and fat content and high fiber. • helps to stop migraine headaches , mental illnesses. • source of selenium, an antioxidant that works with vitamin E to protect cells.

Production/ operation requirementsOyster mushroom or Pleurotus spp. mushroom temperature is 15-30C and relative humidity is 70-80%. Indoor production is possible in our country throughout the year for White oyster and Grey Oyster mushroom

1.Substrate 2.Preparation of substrate - Sterilization / Pasteurization 3. Inoculation / Spawning4. Incubation5. Fruiting6. Harvest7.Yield

PRODUCT OR SERVICE Provide both products and services We will serve 10 categories of mushroom food itemsVisual menu card

Product Line

A set of related products sold by a single company.

Beta Test

Can be considered "pre-release testing”.

WE WILL OFFER FOLLOWING FOOD ITEMS AS OUR PRODUCTS:

1. Mushroom Appetizers :

2. Mushroom Soup:

3. Mushroom Burger:

4. Mushroom Pizza :

5. Mushroom Pasta:

6. Mushroom Sandwich:

7. Mushroom Package :

8. Mushroom Dessert:

9. Mushroom Tea & Coffee:

10. Ice-cream with Mushroom flavor:

Expansion of product line in future:

Primarily we are going to offer 10 categories of food but if we find this restaurant customer required more items then we will expand our product line. We have a plan to upgrade our product line by adding some more food items. Those are:

•Mushroom pie•Mushroom Biryani•Mushroom Ravioli •Mushroom Salad etc.

TECHNOLOGY

Market Environment

It is a specific place where the product or service will be sold to the end users

• Limited number of people consume mushroom• The target place will be Gulshan, Baridhara, Banani• In Bangladesh we don’t have whole mushroom recipe related

restaurant • The number of recipe will be increased based on the demand

of the consumer• The target consumer will be High and mid income level

people

Competition

Competition is where two or more business organizations are competing with a similar products or services for gaining the profit.

• There are no direct competitors if we consider only restaurant business.

• If we consider to sell our produced mushrooms directly to the consumer we have some direct competitors.

• Mushroom is the core competencies of our restaurant.• Indirectly some other restaurant in our targeted areas are our

indirect competitors.

Competition (Cont’d)

There are some key entry barriers of our company• Other restaurants have variety of foods core

ingredients beside mushroom. • Higher initial investment.• We don’t have self service option no buffet offer.• Our recipes will only available when customers will

make order, because its hard to preserve cooked mushroom long time. It might loss the taste and quality.

Industry

• Our restaurant business is under the industry restaurant

• There are lots of other restaurant in this restaurant industry

• The number of restaurant is also high in Bangladesh especially in the urban areas

• Based on the customer demand the number of restaurant is also increasing

Business model

• At first to produce mushroom by own self in own area.

• Then make recipes with the mushrooms and sell it to the customers.

• By this business will generate the revenue.

Marketing and sales strategy

Marketing Strategy

• Make delicious recipes by adding value to the mushroom and serve it to the customers.

•Market the fresh or dried mushroom directly to the customers.

(at own restaurant)

Advertising strategy

Print media: Local newspapers and magazines.

Broadcast media: Radio stations.

Internet: Website (Facebook), direct e-mail.

Directories: Yellow pages.

Sales strategy

• Our sales plan is to establish and maintain position with our local customers. • We will focus on making all our customers happy with our food, service and entertainment options. • Our strategy in the restaurant is to have an experienced staff that knows the food & service.

• The strategy will help to attract more customers in order to increase revenue.

• We have segmented our target customers in two parts-1) Customers for fresh or dried mushroom:(a) We will provide oyster mushroom directly to the customers in cheapest price per 100gm pack @20-25tk

(b) Bring White Mushroom in local market which is totally new and not available.

(c) With Mushroom we will provide a recipe with our restaurant name, address and a small list of other food items available in our restaurant.

Customer Segmentation

(b) Campaign few of our food items like Grilled mushroom with cheese, BBQ mushroom, Stick mushroom to the college & university students, front of super markets, fairs.

2) Customers for Restaurant:(a) We will have an outdoor open space sitting arrangement in our restaurant , where teen agers, students or group of friends can gather and gossip for long time. We will have some less cost snacks like pizza, mushroom corn, Burger, sandwich etc for them.(b) For families & corporate customers in dinner time we will have some packages consist of appetizer, main course and desserts, which will be a bit costly, but our better environment, service and different types of quality foods will make it worthy.

Customer Segmentation

Distribution strategy

Producer

Manufacturer Customer (when serving direct)

Consumer (when selling direct)

Pricing strategy• As we are manufacturing mushroom by own self so the cost will be lower

which will support our pricing strategy to get profit. And the expected gross profit margins of the business will 25-35 percent. It looks like that the prices of the food items are going to be high in the market. But it’s not that much for the customers because our targeted customers are high and mid level person of the society. On the other hand, the price of restaurant items in our country is always taking with the profit level of 25-35 percent because of the high investment in assets.

Business premises, location, size, shifts and costs

Location: Gulshan, Banani and Baridhara Size: 1500 square feet

Shifts: production process the business will follow two shifts, morning and noon.

Costs: About 2,50,00,000 Taka ( Tow Core Fifty Thousand Taka Only)

INTELLECTUAL PROPERTY

• The concept of intellectual property allows owning creativity and innovations in the same way as physical property

• Utilizing and exploiting by the agricultural food in own property

• Logo, slogan• Trademark• Never licensing and patent agreement

REGULATIONS / ENVIRONMENTAL ISSUES

• Does not have any government regulation• No environmental problem• Customer services• Mobile court of food • Highest standard of food production

Management and personnel

Under the enterprise there will be several managers to manage the whole business. They will be always responsible for their own work. We will give same importance in the management part of the production and restaurant.

Here have listed down the proposed key managers, titles, responsibilities, relevant background, experience, skills, and costs.

In Mushroom Farming In the Restaurant In farming and Restaurant(both)

Titles Production manager Restaurant manager Financial manager

Managers in number Only 1 Only 1 Only 1

Responsibilities To run and control the production process and to help & train the labors in production work. Also to check the quality of the produced mushroom and help if there are anything wrong.

To control the whole restaurant environment and the stuff to train & manage them.

To check all the financial conditions of the whole business.

Relevant background Educated in the field of agro-business and operation management

Graduated in Management or Marketing

Graduated in Accounting & finance

Experience 3-5 years 2-5 years 3-5 years

Skills Critical Thinking, Monitoring & Complex Problem Solving

Strong communication & customer relations

Problem solving & Analytical

Costs (assumed) 10,000 taka 8,000 taka 11,000 taka

Personnel requirements, skills, qualifications and financial implications:

Personnel requirements Skills Qualifications Financial Implications

In Year1

(All amount

in Taka)

Year 2 (long

run)

Labor for mushroom

production (4), (5)

Hard working H.S.C 2,800 3,500

Kitchen Chief (1) Food organize &

speed

Any professional

cooking degree or

training

9,000 9,000

Kitchen helper (2), (3) Cleaning &

sanitation

N/A 1,200 1,800

Waiter (4), (5) Good command

in English

Undergraduate 8,000 10,000

Cleaner (2) Cleanliness N/A 1,000 1,000

Guard (2) Sincere S.S.C 3,000 3,000

Total Payroll (assumed) 25,000 28,300

Total People 15 18

Approximate Financial Profit & Expenses

• Total Current Asset:Cash- 71,10,000tkInventory- 50,00,000tk1, 21, 10, 000tk

• Total Fixed Asset:Land (Mushroom Production Firm) - 25,00,000tkEquipments(Mushroom Production)- 50,000tkSecurity Deposit (Restaurant & Storage)- 5,00,000tkFurniture & Decoration (Restaurant)- 25,00,000tkEquipments ( Restaurant)- 25,00,000tkVehicle -20,00,000tkOthers- 50,000tk1, 01, 00,000tk

Approximate Financial Profit & Expenses

• Total Fixed Cost:Rent ( Restaurant)- 12,00,000tkRent ( Cold Storage)- 6,00,000tkWork Salary (Firm)- 3,60,000tkEmployee Salary ( Restaurant)- 6,00,000tk

27, 60,000tk• Total Variable cost:

Utility Bills- 6,00,000tkTransportation & Others- 5,00,000tkRaw Materials- 20,00,000tk

26, 00,000tk

Approximate Financial Profit & Expenses

• Sales:Mushroom Sale- 37,50,000tkRestaurant- 70,00,000tk

1, 07, 50,000tk • Profit: Revenue – (Total Variable cost + Total Fixed cost)

= 1, 07, 50,000 – 53, 60,000= 53, 90,000tk (Approximate)

Authenticity of Profit Statement In our prediction it’s possible to spawn about 12,000 – 15,000kg of Oyster

mushroom in a year with the setup of only 4, 00,000 - 5, 00,000tk. That’s mean per KG production cost is only about 33-35tk, where we can sell it by 200-250tk per KG (Less than present market price 300-350tk). There are many other mushrooms which are more expensive.So if sell forecasting is 15000kg @ 250tk it stands 37, 50,000tk per year. This is very much possible as the present demand in super markets where the few places mushroom found are above 12000kg per year.

As our estimated sales for restaurant is 70, 00,000tk per year which comes about 19,500tk sales each day. Other restaurants most of the time do not have customers between day to noon time, but as our restaurant is very close to our target customers and we have environmental arrangements for all types of customers, our service, food quality and also mobile food courts we believe we will never run out off selling. And also as we are producing our own core ingredient, so the costing of our foods will be less and profit will be high.

CRITICAL RISK FACTORS

• Don’t have different verity of ingredient. • Load shedding can hamper the cooling system in the

production process• Lack of established marketing channel for direct selling

mushroom.• Political strike in the location.• Increasing number of competitors.

Solutions• Cold storage to preserve produced mushrooms.• Select a suitable place for the restaurant close to our target customers (as

our target customers belongs to Gulshan, Banani, Baridhara).• Cold storage will be part of our restaurant that we can have our raw

materials and inventories whenever we need. And the production house will be somewhere like Gazipur, that the transportation will be easy and cost will be less. As we can get our needs in any circumstances and the customers can reach us within no time.

• As we are the package of an entertainment with different kind of foods, before our competitors reach to our customers, we will make them habited to us for our caring services and innovative recipes.

Conclusion

Any Question?