Bawarchi is a small restaurant located in a elegant area of West Ealing, London. Bawarchis Prominence will be on Carbon free organic food. With target of sustainable development Bawarchi's prominence will be on organic food.In order to reduce dependence on fossil fuels the restaurant will obtain food locally whenever possible thereby reducing impact on environment. No animals are killed, no-one goes hungry because of us and the earth's resources are used efficiently. That's why we offer you nourishing, delicious, pure vegetarian meals.
Services
Bawarchi will have a stylish, enjoyable place to have tasty organic food. Chef Sandeep has a huge selection of receips and special ethnic ingredients. Bawarchi expects purchases to be mainly as per the chef's recommendations. Customers will be presented with large Ethnic recipes will be used to provide the customers with a diverse, atypical menu. Acknowledging the treand within food industry for healthy cuisine Chef Sandeep will also be emphasizing healthy dishes.
Customers
Market for Bawarchi Restaurant can be divided into four sections that the restaurant aims to target.The four main group of customers are
The lonely rich which number around 400,000 people.
The young happy customers which are growing at an annual rate of 8% with 150,000 potential customers.
The rich hippies who naturally desire organic foods as well as ethnic cuisine.
People particularly interested in the menu's healthy offerings is dieting women.
Management
Bawarchi will be managed by a effectivecomprising of Tanveer Shaikh the general manager. Rupesh is very experienced person with extensive management experience of managing an organizations comprising from 6 to 45 people. Finance and accounts functions will be managed by Asma Nazir. Bawarchi's profit and track will be on Asma's financial control skills. The back-end production of the venture will be responsibility of chef Sandeep. Chef Sandeep is a published, visible fixture in the London community and has over 12 years of experience.
Strict financial control will ensure Bawarchi's financial success. Also, Ensuring of success will be through provision of a high-quality service and extremely clean, non-greasy food with interesting twists. Rates in the menu will be increased as the restaurnt attracts more and more customers and charging a premium for the feeling of being in the "in crowd."
The market and financial analyses indicate that with a start-up expenditure of £ 90,000, Bawarchi can spawn £ 225,000 in sales by first year, £320,000 in sales by the end of year two and produce net profits of 7.5% on sales by the end of year three. Profitability will be reached by year two.
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Bawarchi Restaurant
Highlights
1.1 Objectives
1. Sales of £ 225 K the 1st year, more than half a million pounds the 2nd year.
2. Personnel costs below the margin of £ 190K , below £250K the second year.
3. Profitable in year two, better than 7.5% profits on sales by year three.
1.2 Mission
Bawarchi is a great stylish restaurant to enjoy excellent innovative food to eat in an captivating atmosphere. Our aim is to make fair profit for the owner and a comfortable rewarding place for the employees.
2.0 Company Summary
Bawarchi based on my passion, and a sustainable planet dream and the vision to introduce the concept of Bawarchi philosophy is paramount. The intelligence of human beings to understand, accept and adapt to a more sustainable way is my hope solid performance.
One of the main contributors to global environmental degradation is the livestock industry. Wide spread impact of mass meat production and about the environment whilst making other economic and social costs on all aspects of the effects are unsustainably. Greenhouse gas emissions, inefficient use of resources, deforestation, water pollution, land degradation, unfair trade, ill health and obesity are just some of these costs. Bawarchi menu completely free meat, vegetarian options that eliminate the negative effects of livestock production whilst providing nutrition to the delicious range. Bawarchi dishes that all the food that loves life and the planet offer the world travels.
Bawarchi we also develop sustainably in all aspects of its operations to focus on, especially, our social, economic and environmental efforts are conceived and implemented with consistency in their origin.
Each and every person a Bawarchi food consumption for the planet and all its inhabitants is a small but meaningful difference. We know that to save a life to save an entire world, that a seed in all of the world holds the possibility of regenerating forests. And even if carbon emissions and grain Bawarchi food or water or a liter of oil saves one kilogram, Bawarchi cumulative benefits of food imaginable! Together we can change the planet's current trajectory! Bawarchi delicious vegetarian options with the goal to provide guests and in doing so, empower them for a meal at a time to make a positive impact on the environment. That Bawarchi ground-breaking research has undertaken the first comprehensive CO2e footprint for every item on our menu is provided. Everyone has a role to play, but we make a significant contribution and Bawarchi for you to see exactly how much life and are designed to help the planet.
We stand at the crossroads of past and future. Vegetarianism, or at the very least substantial reduction in meat consumption, a simple, multiple environmental, social and economic stability immediately available way to reach the goal.
Bawarchi is a single small sized restaurant. Primary target is excellent interesting organic food. The choice of location will be a prime spot in west ealing in west of london. Financial success will be at core which can be achieved by offering excellent non greasy innovative food with interesting twists and at the same time providing high quality service.
Start-up
Requirements
Start-up Expenses
Legal
$1,000
Stationery etc.
$1,000
Pro
Other
$1,000
Total Start-up Expenses
$3,000
Start-up Assets Needed
Cash Balance on Starting Date
$88,000
Other Current Assets
$50,000
Total Current Assets
$138,000
Long-term Assets
$0
Total Assets
$138,000
Total Requirements
$141,000
Funding
Investment
Investor 1
$25,000
Investor 2
$15,000
Total Investment
$40,000
Current Liabilities
Accounts Payable
$1,000
Current Liabilities
$1,000
Long-term Liabilities
$100,000
Total Liabilities
$101,000
Loss at Start-up
($3,000)
Total Capital
$37,000
Total Capital and Liabilities
$138,000
2.1 Company Ownership
The restaurant initially will be a sole proprietorship which will be owned by its owners.
2.2 Start-up Summary
The core initiators of the Restaurant are Tanveer Shaikh and his companion Asma Nazir. Asma primary duty will be to focus on the issues dealing with finance and Rupesh will be dealing with personnel issues.
Location has already been decided and has been secured on lease for £ 1200 per month.The restaurant will be started on time and profit can be turned by the end of eleven months and earn a profit next year. We will be able to set up shop in time to begin turning back a profit by the end of month eleven and be profitable in the second year. As the decided place is already equipped as a restaurant so we plan to come up with a total of £25000 in capital, plus a £65,000 loan to start up the company.
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Start-up
3.0 Services
The Menu
The menu provided by the restaurant is going to be extremely simple but changing every day. Chefs ordering will comprise upto 85 % of th e ordering. This stratergy will help us reduce waste and plan purchasing ingredients. The menu includes various dishes like
Soups and Salads
Vegetable couscous
Pea o Spinach Soup
Roasted tomato soup
Etc
Quick bites
Tacos
Flat breads
Chips
Burgers
Field Mushroom Burger
Tex Mex burger
Indian chutney burger
Hearties
Salsa
Spinach Potato tart
Red curry noodles
Spicy vegetable noodles
Roasted vegetable lasange
Vegetable Biryani
Mild green curry vegetables
Obsession
Choc o treat
Apple Crumble
Organic Ingredients
When you eat at Bawarchi food we make sure that your food any meat,poultry, eggs, fish, seafood or insects or other animal bits and gelatine, animal rennet or other by products such as pieces meat, fish, eggy or other questionable additivesin any form or disguise!
The organic ingredient element will allow us to price to the extremely wealthy Internet
entrepreneurs who are looking to spend an exorbitant amount of money to have peace of
mind that their money is still coming back to themselves. Bawarchi will be extremely ecologically responsible.
Ethnic Ingredients and Recipes
Chef Sandeep is efficient in designing and innovating menu offerings from different world cultures. Bawarchi will try to procure authentic ingridients to provide authentic cultural recipes.
Pg 4
4.1 Market Segmentation
4.0 Market Analysis Summary
As the founders have excellent knowledge about the area and its target group of customers. The core feeling that these target customers will share is the feeling of being 'in crowd' and having achieved it in life.we plan to increase the price of the menu as the customer base increases and charge a premium for the 'in crowd' feeling.
The Lonely Rich
Tech workers fall into this category of customers. Also most of these tech workers are internet workers. Their life revolves around the computers, servers and the writing of code and people to guide them in decision making. They are in contact with each other but would desperately like to get away from that environment and spend the money they have gathered overtime. They mostly spend on drinks and appetizers.
Young Happy Couples
Restaurant provides environment that encourages people to bring dates to the joints will welcome couples. It will be strange to others, and Bawarchi is a social place where people come together and form a network. These young couples are generally very successful also balanced and will spend less on drinks.
The Rich Hippies
London has large group of hippies with massive impact on the city
Government and private enterprises. They wear tie-die but drive BMWs and long to be in a social circle . We meet their ecological thinking and will help them to contribute to charity and
Part with more of their money
Dieting Women
Great tasting organic food menu always has a line of very low fat diet.
Bawarchi Women's meeting table like they do in shows like Sex and the City,
All types of cases referring to feeling good about the food they eat.
Table: Market Analysis
Market Analysis
Potential Customers
Growth
2001
2002
2003
2004
2005
CAGR
Lonely Rich
10%
400,000
440,000
484,000
532,400
585,640
10.00%
Young Happy Couples
8%
150,000
162,000
174,960
188,957
204,074
8.00%
Rich Hippies
6%
250,000
265,000
280,900
297,754
315,619
6.00%
Dieting Women
7%
350,000
374,500
400,715
428,765
458,779
7.00%
Other
5%
50,000
52,500
55,125
57,881
60,775
5.00%
Total
7.87%
1,200,000
1,294,000
1,395,700
1,505,757
1,624,887
7.87%
Market Analysis (Pie)
Lonely Rich
Young Happy Couples
Rich Hippies
Dieting Women
Other
5.0 Strategy and Implementation Summary
Our strategy is simple, we have great people, want to succeed by a combination of healthy,
Interestingly, food and an atmosphere like a magnet to let"trendy" people come.
Implementation is not easy, but that it is not in the plan.
5.1 Competitive Edge
Our competitive edge is the menu, the chef, the environment, and the tie-in to what's trendy.
5.2 Sales Strategy
As the table shows, we intend to deliver sales of about $350K in the first year, and to double
that by the third year of the plan.
Table: Sales Forecast
Sales Forecast
Unit Sales
2001
2002
2003
Meals
22,822
35,000
45,000
Drinks
11,415
17,500
22,500
Other
240
500
1,000
Total Unit Sales
34,477
53,000
68,500
Unit Prices
2001
2002
2003
Meals
$15.00
$15.00
$15.00
Drinks
$2.00
$2.00
$2.00
Other
$10.00
$10.00
$10.00
Sales
Meals
$342,330
$525,000
$675,000
Drinks
$22,830
$35,000
$45,000
Other
$2,400
$5,000
$10,000
Total Sales
$367,560
$565,000
$730,000
Direct Unit Costs
2001
2002
2003
Meals
$2.00
$2.00
$2.00
Drinks
$0.50
$0.50
$0.50
Other
$1.00
$1.00
$1.00
Direct Cost of Sales
2001
2002
2003
Meals
$45,644
$70,000
$90,000
Drinks
$5,708
$8,750
$11,250
Other
$240
$500
$1,000
Subtotal Direct Cost of Sales
$51,592
$79,250
$102,250
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6.0 Management Summary
Rupesh great personnel management experience and believe in his ability we very best possible for their employees . Our chef, Sandeep Srivastava, the board has already published a cookbook that will add prestige to the restaurant immediately. We are a young, ultra-hip to make sure we add the edge that makes Bawarchi so trendy people will be looking to find.
6.1 Personnel Plan
As the personnel plan shows, we have a good team, is expected to invest significantly in compensation. We think the restaurant staff planned and estimated revenue in good proportion to the size of
Table: Personnel
Personnel Plan
2001
2002
2003
Manager
$60,000
$65,000
$70,000
Hostess
$42,000
$45,000
$50,000
Chef
$54,000
$60,000
$65,000
Cleaning
$30,000
$35,000
$40,000
Waiters
$72,000
$100,000
$130,000
Other
$24,000
$52,000
$55,000
Total People
8
10
12
Total Payroll
$282,000
$357,000
$410,000
7.0 Financial Plan
We have our own capital increased to $ 30,000, and $ 100,000 a 10-year loan guaranteed by SBA lending as expected. It provides the bulk of funding necessary to start-up.
7.1 Break-even Analysis
Our break-even analysis, the total cost of sales in total sales by serving meals, and all operating expenses for the first year numbers are based on the average. These are presented as revenue per unit, per unit costs and fixed costs. We know that it really is not the same as fixed cost, but real risk of these conservative assumptions make for a better assessment.
Break-even Analysis
$20,000
$10,000
$0
($10,000)
($20,000)
($30,000)
0
4000
8000
12000
16000
20000
Monthly break-even point
Break-even point = where line intersects with 0
Table: Break-even Analysis
Break-even Analysis:
Monthly Units Break-even
14,028
Monthly Revenue Break-even
$146,453
Assumptions:
Average Per-Unit Revenue
$10.44
Average Per-Unit Variable Cost
$8.34
Estimated Monthly Fixed Cost
$29,459
Pg 9
7.2 Projected Profit and Loss
Table: Profit and Loss
Pro Forma Profit and Loss
2001
2002
2003
Sales
$367,560
$565,000
$730,000
Direct Cost of Sales
$51,592
$79,250
$102,250
Production Payroll
$0
$0
$0
Other
$0
$0
$0
------------
------------
------------
Total Cost of Sales
$51,592
$79,250
$102,250
Gross Margin
$315,969
$485,750
$627,750
Gross Margin %
85.96%
85.97%
85.99%
Expenses:
Payroll
$282,000
$357,000
$410,000
Sales and Marketing and Other Expenses
$27,000
$35,830
$72,122
Depreciation
$1,000
$1,050$1,103
Utilities
$1,200
$1,260
$1,323
Payroll Taxes
$42,300
$53,550
$61,500
Other
$0
$0
$0
------------
------------
------------
Total Operating Expenses
$353,500
$448,690
$546,047
Profit Before Interest and Taxes
($37,532)
$37,060
$81,703
Interest Expense
$10,000
$9,500
$8,250
Taxes Incurred
$0
$6,890
$18,363
Net Profit
($47,532)
$20,670
$55,090
Net Profit/Sales
-12.93%
3.66%
7.55%
Include Negative Taxes
FALSE
TRUE
TRUE
($20,000)
Pg 10
7.3 Projected Cash Flow
Cash flow projection shows that the cost for ongoing expenses and provisions to start his own business generate cash flow sufficient to support operations until our requirements are sufficient
Table: Cash Flow
Pro Forma Cash Flow
2001
2002
2003
Cash Received
Cash from Operations:
Cash Sales
$367,560
$565,000
$730,000
Cash from Receivables
$0
$0
$0
Subtotal Cash from Operations
$367,560
$565,000
$730,000
Additional Cash Received
Non Operating (Other) Income
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
Sample
New Long-term Liabilities
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
New Investment Received
$0
$0
$0
Subtotal Cash Received
$367,560
$565,000
$730,000
Expenditures
2001
2002
2003
Expenditures from Operations:
Cash Spending
$8,979
$13,273
$20,231
Payment of Accounts Payable
$395,818
$525,084
$645,600
Subtotal Spent on Operations
$404,797
$538,357
$665,831
Additional Cash Spent
Non Operating (Other) Expense
$0
$0
$0
Principal Repayment of Current Borrowing
$0
$0
$0
Other Liabilities Principal Repayment
$0
$0
$0
Long-term Liabilities Principal Repayment
$0
$10,000
$15,000
Purchase Other Current Assets
$0
$0
$0
Subtotal Cash Spent
$404,797
$548,357
$680,831
Net Cash Flow
($37,237)
$16,643
$49,169
Cash Balance
$50,763
$67,405
$116,574
Pg 1
Cash
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
Net Cash Flow
Cash Balance
$20,000
$10,000
$0
($10,000)
($20,000)
Jan Feb Mar Apr May Jun
Jul Aug
Sep Oct Nov Dec
$20,670
$10,139
$115,355
$10,139
$40,000 ($29,862) $55,090 $65,228 $163,422 $65,228
Paid-in Capital Retained Earnings Earnings
Total Capital
Total Liabilities and Capital Net Worth
$75,000
$98,194
Long-term Liabilities Total Liabilities
Accounts Payable
Current Borrowing Other Current Liabilities
Subtotal Current Liabilities
2001
$10,294
$0
$0
$10,294
Liabilities and Capital
$0
$2,050 ($2,050)
$115,355
$0
$0
$15,217
$90,000
$105,217
$40,000 ($50,532)
$0
2002
$67,405
$50,000
$117,405
2001
$50,763
$50,000
$100,763
Table: Balance Sheet
Pro Forma Balance Sheet
Assets Current Assets Cash
Other Current Assets Total Current Assets Long-term Assets Long-term Assets Accumulated Depreciation Total Long-term Assets Total Assets
three years.
7.4 Projected Balance Sheet
The table shows projected balance sheet for
$116,574
$50,000
$166,574
$0
$3,153 ($3,153) $163,422
2003
$23,194
$0
$0
$23,194
$100,000
$110,294
($47,532) ($10,532) $99,763 ($10,532)
2003
$1,000 ($1,000) $99,763
