Chapter: One

01. Business Overview:

We are going to start a restaurant business differently from other restaurant in Banani.
PANCHA BANJON is the name of our restaurant. We have selected this name because this
name provides a probable approximate concept of our food items. We will place our restaurant
PANCHA BANJON to meet demand for 100% Vegetable Based foods. Our main focus is to
develop a narrow differentiate outlet in Banani Area. 1,000 square fit are needed for this project
and we have selected Ahmed tower (3 rd Floor; left half) with monthly tk.100, 000 rent. We will
form our business as a partnership business having 5 partners, so we (5 Partners) will finance
total equity capital equally and remaining capital amount will be collected from bank loan. Our
food menu will include traditional foods like Rice with Vegetable curry, fast foods and Juice as
refreshment drink. All the foods of our restaurant will made based on 100% vegetable and
contain multivitamins, calorie, protein, fiber and minerals. We will employ and train employees
to provide high quality services to customers. Our service capacity will be 42 (Having 7 tables
with 6 chairs per table) customers at a time. All the transactions will make on cash. Our
restaurant remains open 7 days in a weak from 8:00 AM to 09:00 PM. Our target customers are
the persons these who want to have a healthy and peaceful life. Most probably in Bangladesh,
after 50 years peoples think about healthiness and want to avoid fatty junk foods because in this
stage people becoming affected by diabetics, heart block problem, high blood pressure and so
more. So, somebody may think that over 50 years are the customers of our restaurant, but it is
not true. Because the young generation also have possibilities to suffer from the above health
problems. Our customer can be from any age range because we believe that Prevention is better
than redress.

1 | Page

02. Vision:
To provide best alternative of medicine with food for healthy life at a fair price.

03. Mission:

Improve food quality on basis of nutrition.

Make sure the presents of multi-vitamins, minerals, protein, iron, fiber.
Employ nutrition specialist to advice chef and day to day improve food quality.
Collect raw-materials from hand-picked suppliers.
Emphasize to go for backward integration. It will cut cost and ensure perfectness of
materials.

04. Startup Summary:

04.01. Business Form and Partners: Our Business will form and conducted by the Bangladesh
partnership Act-1932 (General Partnership). Numbers of partners are 5. All partners contribute
equally in the equity capital, and remaining amount will be collected from bank loan.
Five (5) Partners are: Kanak Chandra Saha, Md. Nuruzzaman Naeyem, Anik Saha, Ibrahim
Khalil, Md. Ariful Islam.
04.02. Financial Budget: Total Capital Budget Tk. 10,000,000. Total Equity Capital Tk.
7,500,000 and Bank loan will be Tk. 2,500,000.
Kanak Chandra Saha

: Tk. 1,500,000.

Md. Nuruzzaman Naeyem

Anik Saha
Ibrahim Khalil

: Tk. 1,500,000.

General
General
Manager : Tk.
(Kanak
Chandra
(Kanak Chandra
Saha)
: Tk.

StoreMd.
& Ariful Islam
Head of
Production
and
Marketing
ManagerTotal
(Md.
Idiation (Anik
Nuruzzaman
Saha)
Naeyem)

1,500,000.
1,500,000.

: Tk. 1,500,000.

HR & Financial
Manager
(Md.
: Tk. 7,500,000.
Ariful Islam)

Nutrition

Waiter (5)

04.03. Management
Structure Plan:
Specialist
Head Chef

Flore
&Customer
Service
Manager
(Ibrahim Khalil)

Security Guard

2 | P a g(1)
e
Cleaner

Juice
Juice Maker
Maker

Assistance Chef
(3)

Dhaka-Mymensingh Highway

04.04. Location: Ahmed Tower (3rd Floor), Kamal Ataturk Avenue, Banani, Dhaka.

3rd Floor,
Right
Half,
Ahmed
Tower,
Kamal
Ataturk
Avenue,
Banani

3 | Page

05. Restaurant Framework

Walk way for Stuffs

Table 01

Table 05

Table 02

Table 06

4 | Page

Table 03

Table 07

Table 04

Walk way for Stuffs Ki

Cash Counter for Bill Payment
Order Receipt and Delivery Counter

06. Product and Services: Our food Products are categorized into three classes
ensuring
Juice Corner
health with each foods item.

Walk way for StuffsRes

Category 1: Fruit Juices

SN
01

Cash Counter: Order Receive and take bills

Order Delivery Counter

Juices
Banana Juice

Nutritional Facts

Corner
Health Juice
Benefits

Anti-oxidants, minerals, vitamin-B6,

Instant energy, helps in normal bowel

vitamin-C minerals, potassium.

movements, control heart rate and

02

Mango Juice

Fiber, Vitamin-A, vitamin C, copper

blood pressure.
Protect against colon, breast,

03

Jackfruit Juice

Fiber, vitamin-A, antioxidant vitamin-C,

leukemia and prostate cancers

Eliminate cancer-causing chemicals

Vitamin B-complex, potassium,

from the colon, maintain integrity of

04

Wood Apple Juice

magnesium, manganese, and iron.

Calcium, Phosphorous, Fiber, Protein,

skin.
Relief from skin disease, peptic ulcer,

05

Apple Juice

and Iron.
Phtyto-nutrients, and anti-oxidants

diarrhea, respiratory problem.

Essential for optimal growth,

06

Carrot Juices

Anti-oxidants, carotenes, vitamin-A,

development, and overall wellness.

Good eye health, growth and

Vitamin B complex dietary fiber, no

development, fight against cancers.

cholesterol.

Category 2: Green fast foods

SN

Fast foods

01

Carrot Cake

02

Carrot Stick

Nutritional Facts

Health Benefits

Anti-oxidants, carotenes, vitamin-A,

Good eye health, growth and

Vitamin B complex dietary fiber, no

development, fight against cancers.

cholesterol.

5 | Page

Entr

/Exit

Potato Soup

Entry/Exit

03

Starch, vitamins, minerals, dietary fiber,

Prevent constipation, decrease

vitamin A, no cholesterol.

absorption of dietary cholesterol,

protect against colon polyps and

04

Tomato Soup

05

Tomato Sandwich

06

Strawberry Salad

07

08

09

Pumpkin Apple Bread

Porridge (Oats recipe)

Multi-greens Role

Very low in any fat contents and have

cancer.
Help in cholesterol control, weight

zero cholesterol level, antioxidants,

reduction diet-programs, protest

dietary fiber, minerals, and vitamins

against cancers, including colon,

prostate, breast, endometrial, lung,

Vitamin-C, B-complex, vitamin A,

and pancreatic tumors.

health benefits against cancer, aging,

vitamin E, minerals like potassium,

inflammation and neurological

manganese, fluorine, copper, iron and

diseases

iodine.
Storehouse of many anti-oxidant

Cholesterol controlling and weight

vitamins such as vitamin-A, vitamin-C,

reduction.

vitamin-E and Phtyto-nutrients.

Protein, carbohydrate, vitamin A,

Reduce the risk of cardiovascular

vitamin B complex, vitamin C, vitamin

disease and stroke.

D, vitamin E, vitamin K
Vitamin C, vitamin-K, vitamin-A, anti-

Cholesterol controlling and weight

oxidants, calcium, fiber, carotene, B-

reduction, protection from

complex, minerals.

hemorrhoids, colon cancer diseases,

protection against free radical injury
and flu-like viral infections

Category 3: Green Traditional Foods

(Rice with three four items)
SN
01

02
03
04

Vegetable curry
Cauliflower &
potato curry

Pumpkin curry
with chickpeas
Chickpeas Dall
Coconut curry
with carrot

Nutritional Facts

Health Benefits

Starch, vitamin C, vitamin B complex,

Prevent constipation, decrease

minerals, dietary fiber, vitamin A, Anti-

absorption of dietary cholesterol,

cancer phyto-chemicals like

protect against colon polyps and

sulforaphane and plant sterols such as

cancer.

indole-3-carbinol, no cholesterol.
Dietary fiber, Protein, Manganese , anti-

Energy Production, Stabilizing

oxidants, minerals, vitamins A:B, zinc,

Blood Sugar, cholesterol controlling

iron
Anti-oxidants, carotenes, vitamin-A,

and weight reduction

Good eye health, growth and

Vitamin B complex dietary fiber, no

development, fight against cancers.

cholesterol.

6 | Page

 Chapter: Two
01. External Environment Analysis: Our external environment analysis has designed
on General environment, Industry environment and also Competitors environment. These
three external environment factors have much influence on our business performance.

General
Environment

Economic
Socio-culteral
Global
Technological
Political/Legal
Demographic

Industry
Environment
Environment
(Porter's
(Porter's 5
5
forces model)

We have performed this

external analysis to
Bargaining Power of
Suppliers
generate idea about our
Bargaining Power of
potential Opportunities
Buyers
Threat of Substitute
and Threats

Threat of New entrants

Intensity of Rivalry

Competitors
Competitors
Environment
Environment

01.01. General Environment: General environment is the external environment of any industry
on which industry has no control but the general environmental factors has great impact on any
business.
01.01.01. Economic Segment: The inflation rate in Bangladesh is 6.84%,
Unemployment rate 4.5%. Bank interest rate on business loan is 14-16%,
Trade deficit is tk. 73.10 Billion in August 2014, Budget deficit foe 2014-15
7 | Page

is taka 67,553 crore, which is 4.5% of total budget. Personal Savings in

Bangladesh increased to 1771.53 BDT Billion in 2012 from 1536.82 BDT
Billion in 2011 which is all time high record. GDP growth rate is 6.12% and
per capita income is 1190$.
01.01.02. Socio-cultural Segment: Bangladesh is a demographic country and going to
become a secular country. Now male and female work together, take education, participate in
each and every event. Even in many work sectors (Like garments, hospitality industry)
female are more advanced than male. So, female are also our potential customers. Peoples
are also becoming aware about their health and nutritions, for this the number of Gym going
persons (both male and female) and gymnasiums are raising. Moreover people are also
changing food habit concentrating on healthiness although the number is much low as
compared with whole population.
01.01.03. Global Segment: Bangladesh maintaining its global communication with other
country by FDI, exporting and importing businesses. Bangladesh government encourages
FDI, so many countries trading here and also increasing competition in every industry. In fact
in food industry, franchising and licensing is running and under those some foreign fast food
company is competing as well as the domestic businessman are also gathering in this industry
rapidly.
01.01.04. Technological Segment: Bangladesh is a less developed country having less
contribution in technological innovation but the usage of technology is so high in
Bangladesh. Nowadays television is available in most of the houses.

Mobile phone

subscribers are 11.5cr and internet subscribers are 4.41cr. Facebook users are also 3,352,680
in Bangladesh on Dec 31/12.
01.01.05. Political/Legal Segment: Forming a partnership business is very easy by the
Bangladesh partnership act 1932 and also salvation. There is no double (Corporate tax,
Income tax) taxation. Only the partners will pay income tax if the individual income per year
exceeds tk. 220,000. Now politically Bangladesh is in stable position and perhaps this
stability will continue for long time. Especially in Dhaka city all time police service available
to protect any kind of violence.
8 | Page

01.01.06. Demographic Segment: Demographically we will achieve a significant advantage

in case of number of customers. Bangladesh is a small country but its population is very high,
in Dhaka city 15.39 million and in Banani area 28, 1337. In total population Muslim are
89.5%, Hindu 9.6%, and other 0.9%. Per capita income is $1190. Especially in banani area,
the people of high income level, high quality lifestyle live.

01.02. Industry Environment Analysis: To analysis our fast food industry we have focused on
Michael Porters 5 forces model.

Figure: Michael Porters 5 Forces Model

01.02.01. Bargaining Power of Buyers (High): Bargaining power of buyers is also very high
if we analyze the as usual food items. Because there are several restaurants like KFC,
Boomers, Star-kabab, Delicious food, Chung Pi and Street shops in Banani. Customers have
much choice and power for switch a restaurant to another. But in another sense, bargaining
power of buyers is low, if they look for 100% vegetable based green foods because our
restaurant will be only choice for customer to serve with 100% vegetable based food.
01.02.02. Bargaining Power of Suppliers (Low): Our raw materials are mainly domestic
vegetables, fruits and spices and some food grains. There are huge Suppliers in Dhaka city to
support the supply of vegetables, so we have huge choice to switch one supplier to another.
All of we know that the Karwouan Bazar is the giant market for vegetables in Dhaka city
9 | Page

from which all vegetables items are supplied to each and every corner of Dhaka. So, the
suppliers bargaining power is so low.
01.02.03. Threat of Substitute (High): We take fast foods/heavy foods just to meet our
hunger need. So, the substitute of our food items is very high as well as substitute food
suppliers. For example; Biscuits, fruits, Bun are our substitute as people can meet the need
for Veg. foods by taking these. In this case we have to face s strong threat of substitute
products.
01.02.04. Threat of New Entrants (High): Threat of new entrants is also very high as fast
food industry in Bangladesh is open. Anyone can take entry in this market as well as legal
permission is also easy to take. Already we have to compete with huge competitors and must
have to be alert about potential competitors. For this we have decided to differentiate our
products based on only vegetables.
01.02.05. Intensity of Rivalry (High): Intensity of competition among competitions is very
high as number of restaurants in Banani is huge. Moreover street shops are also competes
with KFC, Boomers, Star-kabab, delicious food, Chung Pi; Street shops are taking a large
number of customers.

01.03. Competitor environment (Overview) Analysis: There is no business exist where has no
existence of competition. This competition may more or less. In Banani fast food industry this
competition is so high as many local and also exist multinational competitor.

Competito
rs Profile

All the competitors (Street shop,

Boomers Cafe, Star Kabab &
Restaurant, Delicious food and
restaurant, Green species, and KFC
serve non-veg foods to customers.

10 | P a g e

Food Items served by the Compefitors: 1.Burger (with Chicken, Beef, and Mattoon),
2.Fried Rice, Poruta with 2 or 3 items (Chilly Chicken, Beef Curry, Prawn Curry),
3.Chowmein (with chicken, egg and prawn), 4.Beef & Mattoon Dopeaja, 5.Curry Items
(Chicken, Beef, Mattoon, Prawn). 6.Prawn Malai Curry, 7.Tandoori Chicken, 8.Sheekh
Kabab ( Beef), 9.Chicken Reshmi Kabab, 10.Prawn Toast, 11.Chicken Salad, 12.Chicken
Wings, 13.Grilled Chicken Sandwich, 14.Chicken Broast, 15.Somucha, 16.Singara (with
chicken), 17.Roll (with chicken and beef) and so more.

02. Internal Environment Analysis: Internal analysis is performed to get Strengths,

weaknesses and also to buildup core competencies to get competitive advantages. Because
competitive advantage is a powerful thing to beat the competitors.

Resource

Capabilities

Core
Competencies

Competitive
Advantages

Above four steps maintains chronological system. We may not create core competencies
without having capabilities and also we may not have competitive advantages without
creating core competencies.
02.01. Resource: We will finance huge amount to differentiate our food products. We already
explained as we are going to experienced with business first time, we may not able to be cost
leader. So, fund is our resource.
02.02. Capabilities: As our finding is high we will gain capacity to employ nutrition
specialist to suggest chef in case of making food to differentiate our food items and for
improve food quality.
11 | P a g e

02.03. Core-Competencies: Using knowledge and idea from nutrition specialist, we will
gain core-competencies in producing high quality green foods. We will also gain
opportunities to launch and update new food products as substitute of medicine to protest
against possible health problems.
02.04. Competitive Advantages: There is no any restaurant in Banani based on only
vegetables by maintaining health benefits. So, our restaurant will be the first restaurant based
on vegetables to serve the peoples these who want 100% vegetable based fresh and healthy
food as well as to capture the vegetarian customers.

03. SWOT Analysis:

External Environment Analysis (Opportunities and Threats)

SWOT Analysis
Internal Environment Analysis (Strengths and Weaknesses)

03.01. Opportunities:
Single Taxation Facilities. (As our business is partnership business, only the owners will
pay tax on their individual income and no corporate tax on our business)
Considerable bank interest rate on loan. (Bank interest rate on loan for working capital
loan and also for funding SME is around 13-15%. The central bank also willing to
decrease this rate to enhance GDP)
There no vegetable based restaurant in Banani area. (All the competitors in banani area
serving foods with chicken, fish, beef, Mattoon and also egg in all of their food items).
Opportunity to promotional activity by online (Alomost every person use mobile phone
among them the young generation are also use internet for educational/professional
purpose and they also active in facebook. So, we can advertise by facebook).
High number of customers both male and female as the population in Dhaka 15.39
millions and population in Gulshan thana 281,337.
Peoples perception toward to get a healthy life is increasing as the number of GYM and
Body making center increasing..
Police protection services.
12 | P a g e

 Personal savings growth is also very high. Personal Saving in Bangladesh increased to

1771.53 BDT Billion in 2012 from 1536.82 BDT Billion in 2011 which is all time high
record.
03.02. Threats:
Threat from substitute is high as many street shop and varieties stores are offering
biscuits, fruits, and other substitute of fast foods.
High customers bargaining power. Customers have many options to shift one restaurant
to another and one food items to another food items. The vegetarian customer may switch
non-veg foods from vegetables.
Have to face high competition from the competitors like boomers, KFC, Chung Pi, Star
Kabab and also from street shops.
Customers are not used to take 100% vegetable based foods. Basically Bangladeshi
peoples are used to take high spices, delicious and non-veg food items. They take foods
without thinking about health benefits.
No entry barriers. Anybody can take entry in the fast food market in Bangladesh without
facing entry restriction. This market is fully open to all.
FDI, Licensing, franchising is legally permitted. Government is also promote Forign
direct investment, franchising and licensing investments to reduce unemployment
problems and to increase GDP.
03.03. Strengths
Fund size is large as we (5 owners) will invest huge money from own fund and also take
much amount of bank loan.
Banani is a very attractive location to setup restaurant business as some private
universities and some schools are located in Banani. Moreover the some corporate
business centers are also operating here.
Producing 100% vegetable based foods is a significant strength for us. Because if a
customer want to take 100% vegetable based food, he or she must come to visit our
restaurant.
Day to day improve food quality by the inspection of nutrition specialist. (All the food
items will be improve and modify with seasonal vegetables and innovative health
ingredients advised by our nutrition specialist.
13 | P a g e

 Advice customers about food habit.

03.04. Weaknesses
Price is in moderate level due to high costing on nutrition conservation. So, we may lose
the customers who are very price sensitive.
As all of the food items of our restaurant will be 100% vegetable based, we wont be able
to meet demand to Non-veg. items.
High investment risk, due to this concept is very unique and customers are used to take
non-veg. fast foods.
No brand image as we are starting initially.

Chapter: Three
01. Strategy Formulation (Business Level Strategy):
Integration of
Both Cost
Leadership and
Differentiation

Business Level
Strategy

Differentiatio
n

Cost Ledership

Broad Scope
Differentiation
Narrow
Scope
Differentiatio
n

14 | P a g e

Figure: Our Business Level Strategy

01.01. Reason for Choosing Narrow Scope Differentiation: Our business level strategy is fully
based on Narrow Differentiation rather than being cost leader. As we are new comer in the
business in a very competitive market, it will be very hard or may impossible for us to be cost
leader, because we have no prior experiences in business, profitability, employee efficiency etc.
Moreover the cost leaders in any industry have gained this competitive advantage after
performing more than minimum five years. Another risk of being cost leader is falling in product
quality. We wont compromise with our food quality as our vision is to provide high quality food
to customers as alternative of medicine. For this we will differentiate our food product based on
Green marketing. All of our food products will made only bases on vegetables by maintain
nutritions and health benefits.

01.02. The key points of our Strategy:

High quality food with health benefit.
Differentiation based on green (food) marketing.

Chapter: Four
01. Strategy Implementation: Our Business strategy is Narrow scope differentiation. We
will differentiate our all organizational functions like Human resource, Operations (Productions),
Marketing/Sales etc; however our main focus is on differentiate food products based of
vegetables only.
Strategy: Differentiation in Narrow Market
15 | P a g e

01.01. Differentiation in sourcing raw-materials: As our commitment is providing healthy

food, differentiation strategy must need to be also performed in case of sourcing raw-materials.
Because it is impossible to make healthy food by using defected raw-materials, moreover our
main raw-materials are vegetables, fruits and some food grains, where exist high chance to rotten
of materials. So, we will contact and collect materials from handpicked suppliers rather than
collecting from third parties. We use this method just to ensure the freshness of vegetables.
Final destination: Restaurant
Handpicked Suppliers

Third Parties (Distributors)

Figure: Traditional Raw-materials Procurement System

Handpicked Suppliers Final destination: Restaurant

Figure: Differentiated Direct Procurement System for our Restaurant

01.02. Differentiation in Stuffing (HR): All stuffs (without chef, Cleaner) will be employed
who have passed HSC and also determined to engage in hospitality
profession. A nutrition specialist will be appointed to advice in using
materials, production procedures to maintain good food quality. Our
chef and also juice maker will be appointed with high knowledge

This system will ensure

materials freshness and
also cut some costs
definitely.

about nutritional facts of vegetables and fruits.

01.03. Differentiation in Production: The production functions of all food items will be done
without using any artificial color taste and flavors. Generally restaurants use artificial food color
to look food delicious; uses artificial taste and flavors to attract customers, but these elements are
responsible for heart diseases, diabetics, and damage brain growth and so on.

16 | P a g e

01.04. Differentiation in Distribution system (Sales): In case of our Green fast food items we
will use Standardized product strategy. That means all the food items will be ready made to serve
to customers after getting order from customers.
Food Category

Green fast foods

Sales Strategy

Standardized Product Strategy

Key Points

Readymade to serve
Same taste will be maintained for
all customers.

In case of our Green traditional foods we will use Assemble to order strategy. That means we
will offer 4 items with rice for customer choice. Customer will be facilitating to choice any two,
three or four items to take with rice.
Food Category

Green traditional
food (Rice with 4
items)

Sales Strategy

Assemble to order Strategy

Key Points

Readymade to serve
Customers have opportunity to
choice two, three or four items
with rice.

In case of our Green fruit juices (Refreshment drinks) we will use Make to order strategy. That
means we will make fruit juices just after receiving order from customer. This strategy will
ensure juices freshness.
Food Category

Green fruit juices

Sales Strategy

Make to order Strategy

Key Points

Customer choice on fruit menu.

Customers taste preferences.

01.05. Differentiation in Restaurant Decoration: As our products are 100% vegetable based
and Bangladeshi customers are not yet used to take 100% vegetable based foods, we must have
to take challenges to inform customers about our foods health benefits. So, to inform customers
of our each and every food items health benefits, we will decorate tables, walls with our foods
health beneficial messages. Which food contains which nutritional facts and what kind of health
benefit is there this kind of messages we will write on walls, on tables in very informative way.

02. Flow Chart of All operations:

17 | P a g e

Kitchen: Production of Fast foods

Order Delivery Counter

Cash Counter: Order and Bill receive

Handpicked Suppliers of Raw-materials

Restaurant Store

Juice Corner

Customers

02.01. Action Plans to Perform (From procurement to Assemble for delivery of foods)
Step 1: Contacting and collecting Raw materials (Vegetables, fruits and other elements) from
handpicked suppliers
Step 2: Sending all materials to restaurant store. When inventory is about to finish again store
manager will call for supplies of materials.
Step 3: Passing vegetables and necessary materials of our green fast foods and green traditional
foods to kitchen and fruits and required materials for juices to juice corner.
Step 4: After production all fast food items will be decorated to order delivery counter except
fruit juices. Fruit juices will make and pass to delivery counter just after receiving order.

02.02. Action Plans to Perform (From accepting order to delivery foods)

Step 1: Customer will choose food items form menu receipt and submit the receipt to cash
counter with bill and take token from cash counter.
Step 2: Order receipt will be sent to delivery counter.
Step 3: Food will be serve to customer according to token number from order delivery counter.

03. Production cost and Pricing Plan:

(Note: PC-Production cost, SP-Selling Price, CM-Contribution Margin, CM Ratio = Per unit CM/SP)

Production (Variable) cost and Pricing Table of Fruit Juices

18 | P a g e

SN

01
02
03
04
05
06

Juices

Banana Juice
Mango Juice
Jackfruit Juice
Wood Apple Juice
Apple Juice
Carrot Juices
Total =

Productio
n
Cost (Tk.)
15
20
18
15
22
12
102

Selling
Price (Tk.)

Per Unit CM
(PC-SP)

30
35
35
30
40
20
190

15
15
17
15
18
8
88

CM Ratio

0.50
0.43
0.49
0.50
0.45
0.40
0.46
(Average CM Ratio)

(Note: PC-Production cost, SP-Selling Price, CM-Contribution Margin, CM Ratio = Per unit CM/SP)

Production (Variable) cost and Pricing Table of Green fast foods

SN

01
02
03
04
05
06
07
08
09

Juices

Carrot Cake
Carrot Stick
Potato Soup
Tomato Soup
Tomato Sandwich
Strawberry Salad
Pumpkin Apple Bread
Porridge (Oats recipe)
Multi-greens Role
Total =

Productio
n
Cost (Tk.)
20
20
17
22
23
30
22
40
18
212

Selling
Price (Tk.)

Per Unit CM
(PC-SP)

30
30
30
35
40
45
42
65
30
347

10
10
13
13
17
15
20
25
12
135

CM Ratio

0.33
0.33
0.43
0.37
0.43
0.33
0.48
0.39
0.40
0.39
(Average CM Ratio)

(Note: PC-Production cost, SP-Selling Price, CM-Contribution Margin, CM Ratio = Per unit CM/SP)

Production (Variable) cost and Pricing Table of Green traditional food

(Rice with 4 items)
SN

01
02
03
04
05

Juices

Rice
Cauliflower & potato curry
Pumpkin curry with chickpeas
Chickpeas Dall
Coconut curry with carrot

Productio
n
Cost (Tk.)
17
25
30
15
35

Selling
Price (Tk.)

Per Unit CM
(PC-SP)

30
45
50
32
60

13
20
20
17
25

CM Ratio

0.43
0.44
0.40
0.53
0.42

19 | P a g e

Total =

122

217

95

0.44
(Average CM Ratio)

04. Target Market and Customers:

Our target market is niche market rather than mass market. We have decided Banani areas as our
target market and our restaurant setup planning is also based on this. We are first time
introducing in the business, naturally the ideal way is to selecting a niche (focus) market and
serve accordingly. Our target customers are the persons these who believe in healthy and
peaceful life with organic food and also the persons of over age 35 who are suffering from
diabetes, high blood pressure, over weight and other diseases where required a regular diet
maintenance.

Persons in all
ages who
believe in
healthy and
peaceful life
with organic
food.

Persons over
35 who are
suffering from
diabeties anf
high blood
pressure.

Target
Customers
(Banani)

05. Customer Segmentation:

We have segmented our customers on the basis of Age structure and professions, however all the
food items we will serve are helpful for each persons at any age cycle. Food preferences
changes with profession or work. Following is our customer segmentation.
05.01. Segment 1 (Green fast foods): This food is categorized for the young (School, college
and university going students) persons. Basically students prefer lite food as breakfast and Tiffin.
From survey we have also found that the maximum demands for fast foods are come from
students.
20 | P a g e

Here, Age Level: 12-25 years and Profession: Student

05.02. Segment 2 (Green traditional food: Heavy food): We will serve rice with 4 curry items as
green traditional food. We have deigned this food for professionals. The maximum professional
persons go restaurant and look for heavy food to meet their hunger demand of launch and dinner.
Here, Age Level: Over 25 years and Profession: Engaged in job or business or professionals.
(Note: All of our food items are affordable in any age level and also our fresh fruit juice also segmented and
recommended to all customers in any profession)

06. Marketing Mix: Marketing mix is a combination of our key matrixes on which a
business competes in the market and satisfies customer demand. Our marketing mix helps us to
understand what customers want, where they want, at what price they want and what it
requires reaching the products to the customers. The marketing mix is also a familiar as
marketing strategy tool, with 4 ps.
Product (What): We have already explained that most of the customers are used to take non-veg
foods, but the vegetarian customers are also always looking for 100% vegetable based foods. So,
our products are 100% vegetable based green fast foods, traditional foods and fruit juices to meet
the demand for vegetarian customers. We have also take challenges to capture young (students)
who dont prefer veg foods and we believe that we will success as young peoples are becoming
health conscious.
Price: All of our products are green and also our commitment is to provide high quality food. So,
the price of our food items will be at moderate level. We think our planned price quotation will
affordable for all kind of customers.
1.
1. Product
Product

4.
4.
Promotion
Promotion

Marketing
Marketing
Mix
Mix

2. Price
2.
Price

21 | P a g e
3.
3. Place
Place

Place: This is our significant limitation for which we will operate in niche market (Banani). Our
concentration is opening a single outlet in Ahmed Tower (3 rd Floor), Kamal Ataturk Avenue
(Banani). So, we offer customers to come at our restaurant to give us opportunity to serve them
with our green healthy foods.
Promotion: For promotion we will use 3 ways 1. Postering and pasting them around whole Banani area.
2. Distributing leaflet to all students of school, college and universities.
3. We will make Sticker describing all of our food items and paste them is buses.
4. Face book Promotion by like page PANCHA BANJON
Approximate cost for advertising will be Tk. 100,000 for each year. (N-3)

07. Market Trend:

Our fast food market is so competitive, especially like Banani area. In Banani area; some
domestic company, Street shop as well as multinational fast food giant (KFC) are competing. As
Banani is an area where exist some renowned private universities, schools and also the residents
are of high living standard, the maximum customers are young with high living standard. For this
the fast food companies are introducing food items based on only taste rather than giving
importance on nutrition and healthiness. The market trend is introducing tasty foods, improving
restaurant decoration and attracting customers. The customers are also used to take these foods
regularly rather than thinking about healthy organic foods, because still now there is none
restaurant based on 100% organic healthy green food.
22 | P a g e

23 | P a g e

 Chapter: Five
01. Financial Plan: For any kind of business, it is used as decision maker indicator,
whether we will go for invest or not. This plan provides the entire expenditure outline and
also possible outflows will generate from business. Another most important this is, we
can get idea about Payback period and breakeven point from this chapter.
01.01. Projected Salary Sheet for Two years.

Designati
on

N
o
o
f
e
m
p
l
o
y
e
e

First Year (2015-16) (Tk.)

M
Y

o
e
nt
a
hl
rl
y
y
S
s
al
al
ar
a
y
r
P
y
er
p
e
e
m
r
pl
e
o
m
ye
p
e
l
o
y
e
e
5
6

0,
0
0
0,
0
0
0
0
0

Nutrition
Specialis
t

0
1

Head
Chef

0
1

3
0,
0
0
0

3
6
0,
0
0
0

Juice
Maker

0
1

1
5,
0
0
0

1
8
0,
0
0
0

Assistant

T
o
t
a
l

Second Year (2016-17) (Tk.)

Mont
Yearl

hly
y
Salar
salar
y Per
y per
empl
empl
oyee
oyee

S
a
l
a
r
y

6
0
0
,
0
0
0
3
6
0
,
0
0
0
1
8
0
,
0
0
0
4

T
ot
al
S
al
ar
y

55,00
0

660,0
00

6
6
0,
0
0
0

33,00
0

396,0
00

3
9
6,
0
0
0

16,50
0

198,0
00

1
9
8,
0
0
0

13,20

158,4

24 | P a g e

Chef

2,
0
0
0

4
4,
0
0
0

Waiter

0
5

5,
0
0
0

6
0,
0
0
0

Security
Guard

0
1

6,
0
0
0

7
2,
0
0
0

Cleaner

0
1

6,
0
0
0

7
2,
0
0
0

Grand Total Salary

Cost (Year 1)

3
2
,
0
0
0
3
0
0
,
0
0
0
7
2
,
0
0
0
7
2
,
0
0
0
2
,
0
1
6
,
0
0
0

00

7
5,
2
0
0

5,500

66,00
0

3
3
0,
0
0
0

6,600

79,20
0

7
9,
2
0
0

6,600

79,20
0

7
9,
2
0
0

Grand Total Salary Cost

(Year 2)

2,
2
1
7,
6
0
0

Salary for Two years: 2,016,000+2,217,600 = 4,233,600 Tk. (N-1)

Salary will be increased at 10% each year if business runs profitably. (Authority has the right to change any
decision)

Yearly Salary Per employee = Monthly salary per employee

Total Salary = Yearly salary per employee

12

No of employee

01.02. Projected Total Fixed costs:

Sl.

01

02

Particulars

Expenditure
(Tk.)

Initial FC

Decoration Costing

1,000,000

1,000,000

Furnitures (FA)

600,000

600,000

Utensil (FA)

300,000

300,000

25 | P a g e

03

04

05

06

07

08

09

09

10

11

12

13

14

15

16

17

Refrigerator (FA)

250,000

250,000

Gas oven (Industrial) (FA)

150,000

150,000

Gas Burner (Stove) (FA)

85,000

85,000

Fruit Juicer (Large) (FA)

35,000

35,000

Air conditioner (FA)

375,000

375,000

Other kitchen accessories

200,000

200,000

Lighting (FA)

100,000

100,000

Entertainment ground for kinds

80,000

80,000

Fan (FA)

40,000

40,000

Other overhead costing (For 2 years)

200,000

Advertisement Cost (For 2 Years) (N-3)

200,000

100,000 (For
1 Year)
100,000

Employee Salary (For 2 Years) (N-1)

4,233,600

Total Bank Interest Cost (For 8 Years) (N-2)

1,810,344

Utility Cost (Gas, Electricity and water) (For

2 years)
Floor Rent (For 2 Years)

600,000

2,400,000

2,016,000
(For 1 Year)
226,293 (For
1 Year)
300,000 (For
1 Year)
1,200,000

Tk.
12,658,944

Tk. 7,157,293

Total Fixed
cost (N-5)

01.03. Depreciation Calculation of Fixed assets: All the fixed assets will be depreciated
by using straight line method over the lifetime.

Particulars

Sl.

Use
ful

Cost
(Tk.)

Per year
Depreciation (Tk.)

Life

Furnitures

01

600,000

60,000

300,000

30,000

250,000

31,250

Yea
Utensil

02

10
rs
10
Yea

Refrigerator

rs
8

26 | P a g e

03

Yea
rs
5

Gas oven

04

(Industrial)

Gas Burner

05

(Stove)

30,000

85,000

17,000

35,000

7,000

375,000

53,571

100,000

33,334

40,000

3,334

Yea
rs
5
Yea
rs
5

Fruit Juicer

150,000

06

Yea
rs
7

Air conditioner

07

Yea
rs
3

Lighting

08

Yea
rs
12

Fan

09

Yea
rs
Depreciation Cost per year for

265,489 (Tk.)

fixed asset

01.04. Loan amount, Installment and Interest calculation:

Our Projected Bank loan will be: Tk. 2,500,000. Time Duration: 8 Years, Interest Rate:
14%
Yearly Installment will be:
1

PVA= Pmt
2,500,000/4.64

(1+0.14) 8

0.14

or, 2,500,000 = Pmt (4.64) or, Pmt =

= 538,793

Tk.

27 | P a g e

 Against loan we have to pay as installment per years Tk. 538,793.

So, Total repayment amount = 538,793

8 = Tk. 4,310,344

Total interest amount

= Repayment amount Principal

= 4,310,344 2,500,000

= 1,810,344 (N-2)

Per year interest expense

= 1,810,344/8 = Tk. 226,293 (N-6)

01.05. Projected Starting Balance Sheet:

PANCHA BANJON
Starting Balance Sheet
As on January 01, 2015
Particulars

Assets:
Cash
On hand
Security for Position (Floor)
Inventory
Total Current assets

Taka

3,565,00
0
4,000,00
0

Furniture
Utensil
Refrigerator
Gas oven (Industrial)
Gas Burner (Stove)
Fruit Juicer
Air Conditioner
Lighting
Fan
Total Fixed Assets
Total Asset

Equity and Liability:

7,565,000

500,000
8,065,000
600,000
300,000
250,000
150,000
85,000
35,000
375,000
100,000
40,000
1,935,000
10,000,00
0

28 | P a g e

 Total Equity Capital

Total Liability
Total Liability and Equity

7,500,000
2,500,000
10,000,00
0

01.06. Break-even Point Analysis:

Average Contribution Margin ratio = (Average CM ratio of fruit Juices + Average CM ratio of Green fast
foods +
Average CM ratio of Green traditional food) / 3

= (0.46+0.39+0.44) / 3

= 0.43

Break-even Point (Sales) = Total fixed cost / Average CM Ratio

= 12,658,944 / 0.43

= Tk. 29,439,405

Our approximate break-even point is Tk. 29,439,405. That means when we achieve this
sales target, all of our fixed costs including 2 years total salary expenses, 2 years Floor
rent, 2 years Utility expenses and also total bank interest payment will be withdrawn.
Moreover after achieving this sales target our profit will be measured by following way
for each year

Suppose, Total Sales Revenue = Tk. 30,000,000, Annual Total Salary = Tk. 2,200,000, Floor rent Tk.
1,200,000, Advertising cost Tk. 100,000, Overhead expenses Tk. 100,000 and Utility expenses, Tk.
300,000 (All the figures are for one year).
Gross Profit will be = Total Sales Revenue Average CM Ratio

= 30,000,000

= 12,900,000

) Annual Total Salary = 2,200,000

(

0.43

) Floor rent = 1,200,000

Total Fixed cost =

(N-5), Page 24

) Advertising Cost = 100,000

29 | P a g e

) Utility expenses = 100,000

) Overhead Expenses = 100,000
Net Income = Tk. 9,200,000

01.07. Projected Income Statement for 3 years:

(CM ratio = 0.43 or 43% and Variable cost ratio will be (1- 0.43) = 0.57 or 57%)

(Our 1st year Sales target is = 18,000,000 and also willing to increase this sales revenue per year at 10%)

PANCHA BANJON
Projected Income Statement
For the year ended on December 31
Particulars
Total Sales Revenue
Cost of goods sold (Variable cost)
(57%)
Gross Profit (EBITDA)

Selling & administrative expenses:

Depreciation on Furnitures
Depreciation on Utensil
Depreciation on Refrigerator
Depreciation on Gas oven (Industrial)
Depreciation on Gas Burner (Stove)
Depreciation on Fruit Juicer (Large)
Depreciation on Air conditioner
Depreciation on Lighting
Depreciation on Fan
Utility cost (Gas, electricity, water)
Decoration Costing
Entertainment ground for kinds
Other overhead costing
Advertisement cost
Employee Salary
Total Selling and administrative
expenses
Total Operating profit (EBIT)

2015
18,000,0
00
10,260,0
00
7,740,00
0

60,000
30,000
31,250
30,000
17,000
7,000
53,571
33,334
3,334
300,000
1,000,00
0
80,000
100,000
100,000
2,016,00
0

2016
19,80
0,000
11,28
6,000
8,514
,000

60,00
0
30,00
0
31,25
0
30,00
0
17,00
0
7,000
53,57
1
33,33
4
3,334
300,0

2017
21,78
0,000
12,41
4,600
9,365,
400

60,00
0
30,00
0
31,25
0
30,00
0
17,00
0
7,000
53,57
1
33,33
4
3,334
300,0
30 | P a g e

 Bank Interest expenses (N-6)

Net Income

3,861,48
9
3,878,51
1
226,293
3,652,21
8

00
100,0
00
100,0
00
2,217
,600
2,983
,089
5,530
,911
226,2
93
5,304
,618

00
100,0
00
100,0
00
2,439,
360
3,204,
849
6,160,
551
226,2
93
5,934,
258

01.08. Projected Cash flow Statement with 3 years outcome:

PANCHA BANJON
Projected Cash flow Statement
For the year ended on December 31

Cash
Flow
s

10,0
00,0
00
3,65
2,21
8
5,30
4,61
8
5,93

Cumul
ative
Cash
Flows
10,000,
000

Discou
nt
Factor,
I=8%
1

-10,000,000

10,000,
000

6,347,7
82
1,043,1
64
4,891,0

0.9259

3,381,589

0.8573

4,547,649

0.7938

4,710,614

6,618,4
11
2,070,7
62
2,639,8

PV0

Discou
nted
C.C.F

31 | P a g e

4,25
94
8
Net Present Value of the Investment

will be

52
Tk.
2,639,792

01.09. Projected Payback Period

PBP = 2 + (1,043,164/5,934,258)

= 2.18 Years

01.10. Projected Discounted Payback Period

PBP = 2 + (2,070,762/4,710,614)

= 2.44 Years

Conclusion:
Business plan is not only a plan, it is guideline which guide and indicate how business

operations will be done to generate superior profit. We have designed this plan keeping
goal of wealth maximization rather than profit maximization, because we want to run our
business for a long run. For this reason we adopt green food marketing strategy in
restaurant business which is very new concept in our targeted market. We also believe
business is also an opportunity to do something new for human. Human body is not like
robot, and also life is only one. So, we should take care of our health. If you take
regularly unhealthy food, doing hard physical exercise may not work for health benefit.
We are going to place our food items as substitute of medicine to ensure sound health.

32 | P a g e