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Analysis of Restaurant Industry
Kolkata the City of Joy food lover
It is one of the largest cities in India covering an
area of 187 square km and housing a population
of more than 4.6 million
Earlier restaurant were limited to Park Street
Now food joints are opening in all possible
locations, Currently there are 459 restaurant andcafs
People are ready to experiment and try new
varieties
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Industry Competitors
(Segment Rivalry)
High
Potential Entrants
(Threat)
High
Substitutes
(Threat Of Substitutes)
High
Buyers
(Buyers power)
High
Suppliers
(Supplier Power)
Medium
Porter Five Force Model
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Introduction
Affam is a Multi-cuisine Restaurant and a
Caf cum lounge opening on 26th January
2008
Owners Mr. A & Mr B (Brothers)
Address 11/3 Sarat Bose Road, Kolkata-20
TaglineHungry for more Total Cost of the project
Floor Area 2700 square feet
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Caf cum Lounge
Area 1000 square feet
Seating Capacity - 75
Food Italian, Chinese,
Mexican, & Indian.
Drinks Coffee, Tea &
Mock tails.
Hookah 25 Flavors (nontobacco)
Pool Table 1
Timings 11am to 11pm
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Multi-cuisine Restaurant
Area 1000 square feet
Seating Capacity 75
Food Italian, Chinese,
Mexican, Continental &Indian.
Drinks Coffee, Tea &
Mock tailsTimings 11.30am to
3.30pm & 7pm to 11pm
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Service
Staff
Head Chef from IHRM, Kolkata
5 Cooks Local
1 Manager
20 Waiters
1 Pool + 2 Hookah
3 Cleaner
2 Guards
2 Valet Parking
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Add-ons
Membership Card Point system
Feedback Form Suggestions and Complaints
Take Away CounterDebit and Credit Card Acceptance
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Price*
Caf
Food: Rs.35 to Rs.200
Drinks: Rs.50 to Rs.150
Hookah: Rs.150 to Rs.200
Pool: Rs. 75 per half an hr
Parties: Minimum Rs 150
per plate for 50 people
Multi-cuisine
Food: Rs. 45 to Rs.300
Drinks: Rs. 50 to Rs.150
Lunch Buffet: Rs. 250
* Exclusive of Service Tax and VAT
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Place
11/3 Sarat Bose Road, Kolkata-20
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Promotions
Word Of Mouth
Direct Marketing
Inaugural Invitations
Advertising
Newspaper- Telegraph: Metro & Graphiti
Outdoor Hoardings, Piers and Metro station Radio 93.5 Red FM
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Market Segmentation and Targeting
Basis of Segmentation Cafe Family Joint
Geographic Kolkata Kolkata
Demographic
Age
Gender
Income Occupation
16 30
Both male & female
Sec A and BStudents and young
professional
For all
Both male & female
Sec A and BBusinessmen,
Professionals, Housewives
Psychographic
Lifestyle Outdoor oriented Outdoor oriented
Behavioral Occasion
Benefits
Attitude towards product
Regular
Quality, service
enthusiastic
Regular
Quality, service
enthusiastic
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Positioning
USP of restaurant- Everything Under One Roof
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Layers of Product
KCORE
BASIC
EXPECTED
Multi-cuisine
And cafe
food
quality
AUGMENTEDGood service,comfort, Ambience
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SWOT Analysis
Strengths
Good quality food.
Good service.
Comfort of the customer.
Good Ambience
Weaknesses
Lack of presence throughout thecity.
Space shortage.
ThreatsCompetition From
Other Cafs like CCD, Barista, AquaJava, Mezze, Soho, Flavors. etc
Opportunities
Rising potential in the domesticmarket
Growing love of people for food.
SWOT
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Funds
Sources of fund Amount in Rupees
Plot owned by Mr A & B 2,70,00,000
Mr. A 75,00,000
Mr. B 75,00,000
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Expenses
Fixed Expenditure Rupees
Land (2700sq X 10,000) 2,70,00,000
Interior Decorator 60,00,000
Kitchen & Cutlery 5,50,000
Electricity(4 months) 10,000
Hookah (10X3500) 35,000
Pool Table 50,000
Advertising 34,11,200
Total 3,70,56,000
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Advertising Expense
Items Details Rupees
Hoardings 5 area, size 80X40 5,00,000
Metro Railways 5 Stations Package deal 1,50,000
Telegraph Metro Size 24X10 @Rs. 1110 percm X 8 times in a month
21,31,200
Graphiti
(Sunday Magazine)
On 26th January, 2008 3,30,000
Piers (Lighted Kiosk) 4 under AJC Bose Road
Flyover Pillars (4 X 50,000)
2,00,000
Radio 93.5 Red Fm Rs. 150 per sec X 10sec X 10
days X 6 times per day
90,000
Invitations 10,000
Total 34,11,200
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Working Capital
Items Details Amt in Rupees
1 Head Chef 15,000
5 Cooks 9000 X 5 45,000
1 Manager 20,000
20 waiters 20 X 2000 40,000
1 Pool Caretaker + 2 Hookah 3 X 2000 6000
3 Cleaners 1500 X 3 45000
2 Guards 2500 X 2 5000
2 Valet Parking 1500 X 2 3000
Electricity 50,000
LPG 700 X 30 21,000
Milk, Groceries & food items 1,11,000
Misc 5000
Total 3,26,500
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Revenue
Items Details Amount in Rupees
Caf cum Lounge
(food & hookah)
Mon- Fri: 500
Sat: 1000, Sun: 800
23,28,000
Multi-Cuisine Mon-Fri: 250
Sat: 500, Sun: 500
13,50,000
Pool 8 hrs per dayRs. 75 for hr
36,000
Total 37,14,000
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Pay Back Period
Items Amount in Rupees
Fixed Expenditure 3,70,56,000
Working Capital 3,26,500
Revenue 37,14,000
Incremental Profit (monthly) 33,87,500
Cost of Fund 10 %
Pay Back Period 13 months
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Future Plans
Open up chain of Restaurants in Kolkata & in
other cities
Get feedback from customers and constantly
improve in different areas of servicing
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Thank You