Tech restaurant

Tech restaurant

• 1.
  UNIVERSAL BUSINESS SCHOOL KARJAT ProgramName: Entrepreneurial Strategies Professor Name: Prof. Bibhas Bhasumatray Student Name: Ronak Nitin Modi Roll Number: 1355 Batch: MBA3 Date of Submission: 28th March, 2014 Assignment: TechRestro Concept
• 2.
  Sr. No TopicsPage No. 1 Executive Summary 2 Business Concept 3 New Category 4 Problem to be solved 5 Who are our Customers? Segmentation & Targeting 6 Current Competition 7 Customer’s Pain Points 8 Service Design 9 Marketing Strategy – 4 Ps of Marketing Mix 10 Business Model Canvas 11 Action Plan – Phase-I and Phase-II
• 3.
  Executive Summary TechRestro isa new medium size restaurant located at city area adjacent to Western Express Highway. The restaurant emphasize on organic food and ordering system. Cuisine at TechRestro will be ordered using a iPad mechanism. Services TechRestro will offer a tech, trendy, fun place to have great organic food in a tech environment. Creative recipes will be used to provide the customers with diverse and unusual menu offerings. iPad mechanism will be used by customers for placing order. They can scroll up/ down/left/right for selecting their favorite cuisine and placing the order. Multiple payment options are available such as using Credit Card, Debit Card or Cash. They can also access internet and play games using iPad. Our team will be emphasizing on recognizing the trend within the restaurant industry, demand for healthy cuisines and other specifications. Additionally, the restaurant will provide local foods which will reduce the cost of fossil fuels used for transportation. Customers The market can be segmented into three groups that it aims to target.  The first group that will be targeted is the rich healthy people who are particularly interested in organic food.  The second group that will be targeted is youth who desire to have trendy food.  The third group that will be targeted is dieting women who are particularly interested in healthy offerings. Key to Success  Repeat business: Each and every customer who visits once should visit again and should also recommend others.  Location: Convenience is essential. We need to be close to our target market.  Right food: Wide variety of healthy food should be available as different people have different needs and desire. Objectives  Repay debt by the end of second year.  To make sales of over 3cr in year 1.  To make sales of over 4cr from year 2.  To capture 25% of market till end of year 3.
• 4.
  BUSINESS CONCEPT TechRestro isa 60 seat fine-dining restaurant with a 20 seat lounge. We focus on our New Organic menu. We will be located in the booming, and rapidly expanding Western Express Road. The outlook for the future of Long Branch is promising.. The area is in need of a warm and friendly place with excellent food. A place where you always know you will get the best of everything. TechRestro will feature a cozy dining room and an elegant lounge. Comfortable furnishings and decor with soothing warm tones. The lounge has comfy couches and antique love seats with a softly lit bar. It will be the perfect place to stop in for a bite to eat, for a drink or for a small business meeting. For extra comfort and to please a large group of people we will make up special art cultures for customers. The menu will be inspired from different countries' specialties. You can get specialties like Caremal custard, Jelly yogurt and meatballs, or you can go a little bit more International and choose a red curry chicken with basmati rice, or an Asian grilled sandwiches with spinach and black bean sauce. We will also have a special pasta dish entree every day plus. Adding value will be an interesting business lunch menu with specialties every day. The menu will change every week but keep the favorites. Prices will be competitive with other upscale restaurants in the area. The lounge and restaurant will be open seven days a week. We will offer special theme nights to attract new customers. The restaurant will be fine dining in a cozy atmosphere. Warm colors, fresh flowers, soft music, candles and amazing artwork from some of the areas most notable new artists. This will contribute to a sense of community and give new artists a chance to show their work. During the busy summer months you can also sit outside and we will offer a special summer menu, featuring lighter fare, exotic drinks, as well as non-alcoholic offerings. We will hire the best people available, training, motivating and encourage them, and thereby retaining the friendliest most efficient staff possible. Our management team is comprised of individuals whose backgrounds consist of 10 years experience in food, restaurant and hotel, catering, management, finance, marketing, art.. Most important to us is our financial success and we believe this will be achieved by offering high-quality service and excellent food with an interesting twist. We have created financial projections based on our experience and knowledge of the area.
• 5.
  NEW CATEGORY TechRestro isan eating place where people are served food, drinks and desserts in exchange of money. The food is served normally within a building even though, one can be given packed food to be eaten away. In TechRestro restaurant people can order food with the help of iPad. Customer can scan menu card itself using iPad and order food. The order will directly go to the kitchen staff where LED screen are attached on wall. Kitchen staff can recognize who ordered the food through the table no and the list of food being order by them. Customer will be informed about the time in which the food will be served to them on their iPads. Customer can also cancel or add the food through their iPad. One manager will be taking care of the management. If one person is sitting and he has ordered 5 chicken plates then the manager confirms where is ok with the order or not because he might have ordered by mistake. Menu cards of TechRestro are also unique because on the right side of every item there is a barcode of that item. Customers can scan the barcode with their barcode scanner and can visit the website where video of “ HOW THE FOOD IS PREPARED” are uploaded. They can see how the food is prepared in the kitchen area. Customer can also give feedback of their experience using iPad. Their feedback will be addressed by the management staff and the futher information will be emailed to the them. Customers can also pay their bill using iPad. They can use their credit card, debit card, TechRestro card to make payment. If the customer prefers to use TechRestro card then on every expense of 100rs they will get 10payback points on their TechRestro card updated which they can use on their next visit to our restaurant. When the customer will end up collecting 100 payback points they can redeem those points or can get one time free meal worth 1000rs on working days.
• 6.
  PROBLEM TO BESOLVED 1.Taste People believe that organic food tastes better than non-organic food. The reason for this is that it is produced using organic means of production. Furthermore, organic food is often sold locally, resulting in availability of fresh produce in the market, which usually does taste better than produce that has been frozen, shipped, and transported across long distances. 2. Environment Responsibility Growing organic food has many benefits for the earth. Organic agriculture practices not only protect the planet but also help improve current environmental issues. Investment in organic food for our restaurant we will help protect the environment.  Organic farming builds healthy, strong soil which can maintain soil nutrients and help solve erosion problems.  Organic food helps in protecting our water supply.
• 7.
   Organic farmingcan reduce our need for fossil fuels and helps combat the negative effects of climate change.  Organic farming encourages healthy biodiversity.  Organic farming results in less air pollution than conventional farming. 3. Overall Health Since organic food is not prepared using chemical fertilizers it does not contain any traces of these strong chemicals and might not affect the human body in negative ways. Natural fertilizers, like manure, work perfectly fine, and organic farmers are happy to use this smellier, yet safer, form of fertilizer. 4. No Waiting Since the order can be placed directly from the iPad there is no need to wait for the waiter. Customer can scan the menu card and directly place order. The time wasted in waiting for waiter to come and take the order is saved. 5. Animal Welfare Animal welfare is an important aspect of producing organic milk, organic meat, organic poultry, and organic fish. People feel happy that the animals are not confined to a miserable caged life when they eat organic animal products. WHO ARE OUR CUSTOMERS Consumer expenditures for fast food in India rose during the end of the year 2000. The increasing number of new establishments such as fast food franchises, fancy restaurants and gourmet bakeries around India has shown a significant growth in this sector. Food spending is around 56% of total consumer expenditures in India, A much broader appeal exists for weekend slots because those are the days when most of our core target market enjoys the mall going activities.  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 and High income individuals and to all in the lower medium income bracket. Our concept will have very broad appeal. It is our goal to be the hip destination for fast food cravings. According to a recent public survey of people 15 - 45 years old, 80% of those interviewed like Organic food. Many of them like Organic food on a regular basis, and 10% of them claimed that they like Organic food very much. The survey also provided the following particular reasons for the increasing popularity of fast food:
• 8.
   People have52 weekends and three long holidays a year. Most of Indian love to window shop, and when they do strolling around the shopping district, they need a quick bite to accommodate their activities.  White-collar workers in offices have stopped bring lunch, and enjoy Sandwiches, Burger, pizza and organic fruit juice.  Parents give more money to kids and students to buy lunch. Organic food is naturally their first choice, because of the brand building effort that heavily targets their age group.  Eating out still remains as Indian common habit of life. They do not perceive fast food is a luxury, and they enjoy it by bringing their family, especially if they have smaller kids, in the environment of the western-style fast food outlets. MARKET SEGMENTATION AND TARGETING We are targeting young Indian as our primary market. Western Express Highway is the place to meet and hang out after busy schedule . Due to heavy extra-curricular activities among Indian youth, it is common for tennagers to have lunch inside restaurants, and not at home. Our secondary market segment is the "Working Indians." With so many shopping malls in the near by area, Western Express Highway is the haven for shoppers and job. For the business market we need to focus on specific companies with specific opportunities. For individuals we need perform word-of-mouth recommendations, probably depending on business customers. The business market has the potential of providing large volume sales to the company during the peak hours of 11 a.m. to 2 p.m., both through small groups of business people visiting NWD and delivery orders. Satisfaction of this group will provide a vital long-term revenue stream. For the business market, the company plans to do specific target marketing through flyers, business discounts, billboards, and creating a record of fast delivery. For the individual groups seeking breakfast or lunch downtown, or take-home meals, it is necessary for the company to build an effective word-of-mouth marketing strategy. The company will do this slowly, realizing that much of this will grow from its business market. The company is also planning on doing a number of joint marketing efforts with other local companies such as the production and distribution of a referral book to be given to various individuals. This in turn would help to drive our word-of-mouth marketing efforts.
• 9.
  CURRENT COMPETITION The competitionTechRestro facing is vast. This includes every eating establishment in Mira-Bhayander area and Western Express way. Major competitors include:-  Western Hotel  Sai Garden  McDonalds  Dominoz  Fountain Hotel  Pali Hill Subway  Pizza Hut  Express Inn  Shree Nidhi  Navrang Hotel  Da Paratha  Delhi Darbar  Daras Dhaba  Pali Piew  Greeen Avenue  Rajesh Hotel  Rajasthani Theme Restaurant  Sea and Rock  Santosh Food and Bar  Zaika Restaurant  Veg Sarag
• 10.
   Veggies  SaiAvenue Furthermore, there are a large number of substitute suppliers from grocery stores that offer prepackaged meals.  Big Bazaar  Reliance Fresh  D-Mart  Subhiksha  Rajesh Food Bazaar These big brands are also in competition as they can steal business in certain situations. SERVICES The Tablet Menu Card The menu is going to be extremely simple and will keep on changing every week. We will keep a small group of constants that will be served everyday. A new category called as chef's recommendation will be added to the menu card. Customer can scan the menu car using iPad and can place the order instantly. Special offers, discount coupons, meal packages will be displayed on the iPad screen itself. Special ingredients list will be mentioned below every food item. A QR code will be placed on the right side of each food item so that customers can scan the QR code and can see a video of “HOW FOOD IS PREPARED”. All these will help in decreasing waste and plan ingredients purchasing. Organic Ingredients The organic ingredient element will allow us to price high to extremely wealthy Internet customers who are looking to spend huge amount of money to have peace of mind. After spending hard earn money they will feel that their money is still coming back to themselves. We will be extremely conscious about environment and will spread this message across our customers. Ethnic Ingredients and Recipes Our chef will have great expertise in designing and producing menu offerings from many different world cultures. We will try to bring all the traditional, authentic ingredients necessary to hold true to these varied and interesting cultural recipes.
• 11.
  Interior People need tokeep life interesting, and our artwork will reflect the world influences that are core to the attitude of our customers . Online Order We will develop a website www.TechRestro.com where people can order their food online. On ordering the food the page will show the List of order, bill amount, bill no, order date, order time, the delivery time and offers on next purchase. Subscribed users will also be allowed to plays games and watch TechRestro videos. PRODUCT Snacks  25 varieties Fasting Items  7 varieties Dosa  80 varieties Sandwichies  22 varieties Pizza and Burger  30 varieties Starters  40 varieties Punjabi and Moghlai Dishes
• 12.
   100 varieties TandooriRoti  32 varieties Basmati Khazana  45 varieties Chinese Cuisin  50 varieties Salad  17 varietes/ 1 Raita Dessert  24 varieties PRICE  999 rs for 2 People  On Wednesday- 700 rs for 2 people  Buffet System- 450 rs (Unlimited food)  Birthday Party (20 People) - 9999 rs PROMOTION New Year Eve Special: One of the biggest night for restaurant. We offer appetizers, buffet, drinks. Special discount of 15% for families. Valentine’s Day: Valentine’s Day is all about couples and romance. Special for 2 themes. Dance and party over night. Special discount of Rs 500 for couples. Happy Hour: We offer happy hour specials during the week for working people. Social Media Marketing: We will create our page on social media websites such as Twitter, Facebook, Google+, YouTube, Word press. Coupons: Everyone likes a deal, offering coupons for a percent off a meal, a free dessert to frequently visiting customer.
• 13.
  Winetasting: Specialty dinnerssuch as dinner theater, fundraisers and wine tasting are great way to get extra business through the door in slow times. Video Playlist: We will create a playlist of creative cuisine, events, offers, upcoming cuisine to attract more customers to visit TechRestro. Business Model Canves for TechRestro KEY PARTNERS KEY ACTIVITIES VALUE PREPOSITION CUSTOMER RELATIOSHIP SEGMENTATION CATERERS SALES RECEIVE CUPONS BASED PROMOTION YOUTH EVENT PLANNER ADVERTISING ON FOOD PREFERENCES CUPONS ENTREPRENEUR TRAVEL AGENCIES MARKETING FESTIVAL OFFERS WOMENS HEALTH CLUB FREE DELIVERY DEALS BASED ON FOOD FREE HOME DELIVERY CHILDRENS HOTELS PREFERENCES EVENTS KEY RESOURCES CHANNELS LAND, FOOD, WATER PARTNER BENEFIT OF B2C: DIRECT TO CUSTOMER HUMAN RESOURCE OFFERING VALUE ADDED B2B: CATERERS, HOTELS, EVENT COOL STORAGE SERVICES. MANAGERS
• 14.
  COST STRUCTURE REVENUESTREAM DEVELOPMENT SALE OF FOOD/ LIQOUR MAINTAINANCE RESERVATIONS FOR BIRTHDAY PARTIES COOL STORAGE ADVERTISING EMPLOYEES SALARY BUFFET SYSTEM MARKETING RENT CONTAINERS Profit and Loss Statement Year 1 Year 2 Year 3 Sales 649,2210 681,6820 715,7660 Direct Cost of Sales 230,1780 259,0390 271,9900 Other kitchen expenses 36,0000 40,0000 45,0000 Total Cost of Sales 266,1780 299,0300 316,9910 Gross Margin 383,0430 382,6430 398,775 Gross Margin % 59.00% 56.13% 55.71% Expenses Payroll 186,0000 135,0000 170,0000 Sales and Marketing and Other Expenses 81,0000 57,5000 76,0000 Depreciation 0 0 0 Utilities 2,4000 2,4000 2,4000
• 15.
  Insurance 6,0000 6,60007,2000 Payroll Taxes 27,9000 20,2500 25,5000 Other 0 0 0 Total Operating Expenses 303,3000 221,7500 281,1000 Profit Before Interest and Taxes 79,7400 160,8900 117,6700 EBITDA 79,7400 160,8900 117,6700 Interest Expense 3,6700 1,2500 0 Taxes Incurred 22,8100 47,8900 35,3000 Net Profit 53,2400 111,7400 82,3700 Net Profit/Sales 8.20% 16.39% 11.51%