Business plan OnSalt & Pepper

Restaurant

INDEX

1. Executive Summary..………….…………….…………………….……3

2. Company Description…………………………………………………..6

3. Products & Services..…………………………..…………………...….7

4. Marketing Mix Strategies………………………………………………10

5. Market Research & Competition……………………………………....13

6. Management Plan……….………………………………………….....15

7. Operational Plan……………………………………………………….17

8. Financial Plan………………………………………………………….19

9. Risk Factors…………………………..………………………………21

Page | 2

1. Executive Summary

Salt & Pepper Restaurant is an eating establishment focusing on healthy, nutritious, and fast food

to the college area in Mumbai. The Salt & Pepper Restaurant will be an upscale specializing in a

combination of fast hot or cold sandwiches and salads plus specific recipes focusing on the

healthy and nutrious food. Based on this distinct menu, Salt & Pepper Restaurant will follow a

differentiation strategy that will provide unique, or hard to find choices to healthy food patrons.

The keys to success for Salt & Pepper restaurant will be repeat business, an excellent location

convenient to downtown businesses and its unique cuisine The company will be a owned by me

and will be providing capital investment and there will be an additional raised in short term loan.

Entering into this market will be easy; the industry is not highly competitive, with periodic

overcapacity, high margins, and low entry/exit barriers. In addition, there is a large number of

substitutes, and the suppliers to this market have a great deal of power. In order to overcome

these issues, the company has acquired an excellent locality in the downtown area and intends to

provide a suitably upscale environment to draw in the company's main target market segment,

the business professionals, college students and the families with their children who come for

having healthy dinner. The company will seek to provide these customers with the maximum

number of services to create the greatest sales volume during the company's peak hours of

operation. The company will have a comprehensive marketing, advertising, and promotion

campaign that will maximize word-of-mouth marketing and will consist of radio, printed

material, billboards and discounts. The company has planned to offer its products at a slightly

higher price than that of its Competitors. This is to provide credibility to its clients as an upscale

establishment that provides a unique menu. This will also provide the funds to cover the higher

than expected operating costs due to the differentiated and expanded menu. It is estimated that

Business plan On Salt & Pepper Restaurant, the company will earn revenues of approximately by

year three, and maintain a healthy cash flow.

1.1 Objectives Salt & Pepper Restaurant seeks to achieve the following goals:

• Cash flow self sufficiency by the end of the first year.

• Repay debt from original financing by the end of the coming year.

• Provide an income for founder-owner with income growth possibilities.

Page | 3

• Becoming profitable in 2rd year, better profits on sales by year three.

1.2 Mission "Our restaurant will be a place where people come to relax, have a good time, and

enjoy a great meal”. From the moment our customers walk in the door, they are greeted by a

warm atmosphere, subtle music, and friendly and courteous staff.

Our goal is to give our customers total satisfaction and exceed their expectations through:

Commitment to the continuous development and training of our staff Good corporate

citizenship and supporting the development of the society and community Commitment to our

Vision

1.3 Vision Salt & Pepper Restaurant Vision is to remain the leading fast food restaurant in

Mumbai, by delivering total customer satisfaction through: Quality Service Cleanliness

Value by the development, contribution & commitment of our staff.

1.4 Salt & Pepper restaurant Core Values

Dream Big: We believe in the unlimited potential that lies within all people and are

committed to providing opportunities for people to achieve their dreams

Work Hard: We believe that hard work and front-end effort are prerequisites for success

Get It Done: We believe that achieving positive results is the key to continued success for

everyone

Play Fair: We believe that winning teams play by the Golden Rule. We treat our customers,

business partners and teams as they want to be treated–with respect.

Have Fun: We believe that life is meant to be enjoyed. Success comes more quickly by

having fun while working toward our objectives

Make A Difference: We believe that as a company and as individuals we have the

responsibility to improve the quality of life for our employees and communities. Keys to

Success The keys to success in this business are:

Page | 4

1. Product quality: Food, coffee-based beverages, and entertainment are our products. They

must be of the high quality and value.

2. Service: Our patrons are paying to have a good time. Their experience will suffer if service

is not of the highest caliber. Each member of the staff will be courteous, efficient, and

attentive.

3. Marketing: We will need to target our audience early and often.

4. Management: We will need to have a firm grasp on food, beverage, and labor costs. The

dining/entertainment/coffeehouse experience must be delivered in a fashion that will not only

inspire repeat business, but encourage word-of-mouth recommendations to others. Proper

inventory, employee management, and quality control is key.

Page | 5

2. Company description

Though the future looks bright for the food-service industry overall, there are no guarantees in

this business. Even the most successful operators will tell you this isn't a "get rich quick"

industry. It's more like a "work hard and make a living" industry. The name of my restaurant will

be Salt & Pepper Restaurant, which means that we will serve healthy food. It has been formed as

sole proprietorship firm. In which I would be the owner. Restaurants are classified into three

primary categories: quick-service, midscale and upscale. Restaurant service style would be:

Restaurants are classified into three primary categories: quick-service, midscale and upscale. My

service style will be Quick-service restaurants are also known as fast-food restaurants. These

establishments offer limited menus of items that are prepared quickly and sold for a relatively

low price. In addition to very casual dining areas, they typically offer drive-thru windows and

take-out service. When people think of fast-food restaurants, they often think of hamburgers and

French fries, but establishments in this category also serve salads, hot dogs, sandwiches, pizza,

salad with dressing on the side or fat free salad dressing, Fruit or fruit and yogurt i.e. Lassi, Fat

free / low fat milk or water, Whole wheat rolls, Sandwiches, Coffee, Hotdog, Pizza, and the list

goes on………….

2.2 Start-up Summary The founders of the company are Miss. Shweta Narkhede and her family

member Mr. Jayant Narkhede will focus on the managerial aspects, customer relationship

management, and financial tasks along with promotional activities and Mr. Monty on the

personnel issues.

Page | 6

3. Products and Services

The purpose of any food service is to provide nutrition while offering the added benefit of tasting

good. At Salt & Pepper Restaurant, customers will eat traditional favorites without the guilt of

consuming unhealthy and heavy fast food. They will also have the opportunity to sample

authentic, adventurous fare and increase their awareness of different coffee flavors.

Selecting a Food Concept

Restaurant patrons want to be delighted with their dining experience, but they don't necessarily

want to be surprised. If you're anticipating a family-style steakhouse (based on the name or the

décor of the establishment), but you find yourself in a more formal environment with a

bewildering--and pricey--gourmet menu, the surprise may keep you from enjoying the restaurant.

Concepts will help my restaurant give a way to let patrons know in advance what to expect and

also to provide some structure for their operation. Sandwich Shop: One reason sandwich shops

are so successful is that they enjoy high profit margins. Sandwich shops can also change their

menus quickly and easily to adapt to current tastes. For example, with the growing interest in

health and nutrition in the India, sandwich shops have started offering more low-fat, healthy

ingredients in their sandwiches, salads and other menu items. In addition, many sandwich shops

have been able to keep up with workers who eat at their workplaces by adding delivery and

catering to their sit-down and take-out operations. Sandwich shops can be differentiated by the

foods they serve. Most sandwich shops serve only sandwiches, possibly with some side dishes or

desserts. A delicatessen usually offers a more extensive menu, including sandwiches, prepared

meats, smoked fish, cheeses, salads, relishes and various hot entrees.

Coffeehouse: With more than 400 billion cups consumed every year, coffee is the world's most

popular beverage. But beyond the beverage itself, people frequent coffeehouses and espresso

bars for a variety of reasons: to meet with friends, for a quick lunch and a drink to perk up the

afternoon, or simply to start off each morning with a great cup of coffee to start off each

morning. Most successful coffeehouses have heavy foot traffic and high-volume sales. The

majority will serve up to 500 customers per day and manage up to five customer turnovers

during the lunch hour, despite having limited floor space and modest seating capacity. Profit

Page | 7

margins for coffee and espresso drinks are extremely high--after all, we're dealing with a product

that's more than 95 percent water. Features and Benefits The food at Salt & Pepper Restaurant

offers several unique benefits to the consumer. It will satisfy customers’ craving for a tasty and

fast meal while meeting rising expectations for healthy alternatives. The food will be fresh, made

to order, and low fat. Fresh fruits and vegetables increase flavor while lowering calories. Healthy

Health Restaurant will offer Salads dressing, yogurt and different coffee ranges that are just as

easy to eat on the go as fast-food hamburgers with less than half the fat. We also provide with

some fast foods and some fixed meals for student as we are in location advantage of attracting lot

of student. Product/Service Limitations Perishability of inventory is the major product limitation.

Care must be taken to order proper amounts and use fresh foods immediately. The format of

three to five changing entrees per evening will help mitigate this liability. Menus can be adjusted

based on ingredient availability. Product/Service Liability Salt & Pepper Restaurant faces two

major areas of costly liability.

Food poisoning is a real threat. The resulting medical costs and possible punitive damages can

significantly affect the bottom line. Worse yet is the bad word of mouth resulting from such an

incident. Safe food handling and employee sanitation must be constantly monitored. Proper

training is essential. Along with proper training and systems, adequate insurance will be

purchased. Facilities An existing restaurant-equipped building with adequate parking is being

leased. Few modifications are necessary and most are cosmetic in nature. The building is 5000

square feet with a dining area of 1000 square feet enough to comfortably seat 50 patrons.

Suppliers All the major food distributors in the region make regular deliveries to local grocers

and restaurants. Negotiations are well under way with LOCAL dealers to deliver staples and

seasonal produce. Specialty items will be purchased from National Foods Agency at least twice a

week. Numerous other suppliers can be used if delivery issues arise. Local farmers’ markets will

also be a source for fresh ingredients. Target Market: No single food-service operation has

universal appeal. This is a fact that many newer entrepreneurs have trouble accepting, but the

reality is that you will never capture 100 percent of the market. When you try to please everyone,

you end up pleasing no one. So focus on the 5 or 10 percent of the market that you can get, and

forget about the rest. With that said who is eating at restaurants? Our target market consists of

Page | 8

college students, athletes, and families with children; they will be looking for healthy,

inexpensive, and filling food. Primary market being college students. Secondary market being

the parents with their children who want healthy food.

Page | 9

4. Marketing Mix Strategies

Our Vision is for you to achieve “a health nirvana every time you step into The Salt & Pepper.”

Marketing Programme Promotional and Positioning Strategy The slogan for our restaurant is

“Salt & Pepper,” a place to acquire a healthy life at a livable price.” Our slogan reflects our

difference because while most establishments offer healthy choices on their menu, our entire

menu is researched to be a healthy choice. Good health connotes a long life, and our customers

can “live” well at our affordable prices. This is what separates us from our competitors.

Marketing Mix The four strategies of the marketing mix (product, price, promotion and place)

are interconnected. Action in one affects decisions in another. The order of dealing with each can

vary, i.e. place can occur before promotion, etc. But first, the target population must be defined

and then the strategies are directed toward this target population (market).

1- Product (the food items that are served at a restaurant) Product needs to be different, better,

more dazzling than what is offered by the big food suppliers. Most restaurants are willing to pay

a price premium for local farm-fresh food, but only if it exceeds the product supply or quality of

what the mainstream vendors offer. So on the product part will be list of different items which

we are going to serve.

Salad with dressing on the side or fat free salad dressing

Fruit or fruit and yogurt i.e. Lassi

South and Punjabi Dishes

Fat free / low fat milk or water

Whole wheat rolls

Sandwiches

Coffee

Hotdog

Pizza

And the list goes on………….

2- Place (the restaurant and where it is located) Salt & Pepper will use direct marketing channels

since it deals directly with its consumers. The location we have chosen for our Salt & Pepper

restaurant is near the MET College campus. This will put the Salt & Pepper near most

Page | 10

classrooms on campus along with near the majority of dorms on campus. Lastly, it will be near

most of the sporting events that will take place on campus, which will help with sales to visitors

of the campus. And it will be also good for the people coming to chawpaty where the family will

be coming with their children. So they may also be created as source of revenue.

3- Price (costs of menu items) We want to convey a message of familiarity, understanding, and

perhaps even friendship through our low prices. During the beginning of our new company, we

will use the markup price strategy. Our skimming price strategy works with our target market

mainly, because it is cheap. Therefore, since our target market consists of college students,

athletes, and families with children, they will be looking for healthy, inexpensive, and filling

food.

The Salt & Pepper gives the customer a simple price that is easy on the budget to accommodate a

simple diet that is healthy for your body. If this mission is accomplished, we will be able to build

a strong relationship with our more familiar customers. Accomplishing this will allow our

business to grow. Our markup price strategy works with our target market mainly, because it is

cheap. Therefore, since our target market consists of college students, one who works on his

health and families with children, they will be looking for healthy, inexpensive, and filling food.

It is important that we keep in the same pricing range as our competitors, because if we raise our

prices too high, then we will fail to make sales, but if we reduce our prices too low, then we will

lose money. We will use some of their ideas for discounts such as the punch cards. The punch

cards really attract customers, since they know that one day after buying nine meals; they have a

free meal coming to them. In addition, by using the punch cards, our revenue will dramatically

increase, because those particular people with the cards will still have to buy a certain number of

meals before they receive their free one.

4- Promote (the methods used to let consumers know about the restaurant and what it serves)

The Salt & Pepper will have is the promotional opportunities that will encourage customers to

return. These opportunities include punch cards for a meal “on the house” after a customers has

purchased ten meals. There will also be a half priced meal if customer brings a friend. Telling a

friend is the strongest mode of advertising there is and The Salt & Pepper will not overlook such

an influence. Bringing a customer in for the first time is easy but making sure that the customer

Page | 11

will return is the hardest part for any new business.

Opening day is a very important part in our promotional strategy. One promotional objective we

will execute is if a customer brings in a friend, they will receive half-off their price. We will

know if we accomplished this task because our cashiers will decide if the customer receives the

half-off discount. Another objective we will execute is giving out free samples of our food in the

hopes that our customers come back for more and be excited about trying the variety of healthy

dishes. To determine if this is being accomplished, we will be participating, and by actually

giving out the free samples we can research if the demonstrated foods have a higher growth in

sales.

Page | 12

5. Market Research & Competition

It’s very important for any industry to carry out market research in order to serve their clients, in

order to have good name. By conducting a market analysis I will be able to answer questions

such as:

What trends are emerging in the food service industry?

What are the strengths and weaknesses of my competition?

Is my location suitable?

Does my concept fill a niche in the market?

What is the potential number of customers I can serve per year?

Consumers will spend a greater portion of their food rupees away from home;

Competition in the food service industry will be more intense as growth continues;

Major food service chains will increase their shares of both sales and units;

Independent operators will be the main source of new restaurant concepts;

Nutritional concerns will be critical at all types of food service operations; and

Service will become a more important point of differentiation.

Competition Market conditions in my area will have a significant impact on the profitability of

my restaurant. The strength of the local market affects how many customers my restaurant will

serve and the menu prices that my restaurant can charge. Existing market area restaurants can

provide valuable information to help me analyze demand and market opportunities. We can

assess their competitive strengths and weaknesses and learn from their successes and failures.

First, I will identify how many restaurants are in my market area. Then, will identify those

restaurants that appeal to the types of customers (market segments) that I plan to serve. I would

also identify all other restaurants located in my immediate area because they can also impact my

Page | 13

business. Will be also referring to the Yellow Pages and my local Chamber of Commerce for

listings of area food-service operations. It is also important for me to identify any market area

restaurants that have closed, and for what reasons. Also, learn what new restaurants are planned

for the market area and determine how they might affect mine operation. After identifying my

competition, will visit and evaluate each restaurant. Speak with the manager of each operation, if

possible. Will Use the below competition checklist as a guide for taking notes. After identifying

my competition, visit and evaluate each restaurant. Speak with the manager of each operation, if

possible. Use the competition checklist as a guide for taking notes.

Loyalty: The target market is majorly constructed by the busy customers. They may be loyal to

one food centre. The element of loyalty is the biggest question as the nature and need of

customers / consumers are concerned.

Competitors may arise.

Consumer Behaviour: The low-cultured people may spoil the environment of restaurant.

Again the shops and corporates are very huge market, too potential and are not yet

covered. These people tend to manage third food from tidy and unclean small marts.

First mover advantage: This will be the first its kind of restaurant in this area. There are

many small sandwich corners in the area but there isn’t any structured restaurant.

Staff : The tendency of the worker in this industry is to keep on changing the job. Even at

the time of doing the full time job these people may join any contractual labor job and

may remain absent for several days.

Page | 14

6. Management Plan

Before deciding how to organize an operation, prospective entrepreneurs need to identify the

legal structure that will be best suit the demands of the venture. So the management plan is part

of business plan that describes the venture’s form of ownership-that is proprietorship, partnership

and corporation. In my Salt & Pepper restaurant, the method of creation will be sole

proprietorship i.e. will be created by me. So that I can be able to have unlimited liability. But if I

would have any plans for expansion in the future i.e. by opening a branch in other city then

would change my management style to partnership. Legal form of business: Sole proprietorship

Liability: here as we are sole proprietorship there is no distinction between business entity and

the owners. Then, to satisfy any outstanding debt of the business, creditors may squeeze any

assets the owners have outside the business. Cost of starting business: as per the various types of

form of business the least expensive is proprietorship where the only costs incurred may be for

filling for a business or trade name. There are several categories of personnel in the restaurant

business: manager, cooks, servers, busboys, dishwashers. When my restaurant is still new, some

employees' duties may cross over from one category to another. For example, my manager may

double as the host, and servers may also bus tables. I will be sure to hire people who are willing

to be flexible in their duties. My payroll costs, including my own salary and that of your

managers, should be about 24 to 35 percent of my total gross sales. Job Design The primary

responsibilities of each of the roles, in our restaurant shall be as described below:

1. Restaurant Manager: Overall management of the restaurant Supervision of restaurant

Customer management Cash supervision Security concerns to be handled Retention of

talents Growth of the restaurant

2. Serving Waiters: Serving of the dishes on tables Placement of dishes on table

Coordination with the kitchen Effective order handling Serving of dishes

3. Order Taking Waiters: Receiving of orders from customers Allocation of tables to the

serving waiters introducing the different delicacies to the guests tracking loyal and

beneficial customers coordinating with kitchen and serving waiters

4. Chefs and Helper Menu management Preparation of dishes

Page | 15

When I start out, I'll probably need three cooks--two full times and one part time. Restaurant

workers typically work shifts from 10 a.m. to 4 p.m. or 4 p.m. to closing. But one lead cook may

need to arrive early in the morning to begin preparing soups, bread and other items to be served

that day. One full-time cook should work days, and the other evenings. The part-time cook will

help during peak hours, such as weekend rushes, and can work as a line cook during slower

periods, doing simple preparation. Cooking schools can usually provide me with leads to the best

in the business, but will look around and place newspaper ads before we hire. Customers will

become regulars only if they can expect the best every time they dine at your restaurant. To

provide that, I'll need top-notch cooks and chefs. Salaries for chefs and cooks vary according to

their experience and your menu. Servers: My servers will have the most interaction with

customers, so they need to make a favorable impression and work well under pressure, meeting

the demands of customers at several tables while maintaining a pleasant demeanor. There are

two times of day for wait staff: very slow and very busy. Schedule your employees accordingly.

The lunch rush, for example, starts around 11:30 a.m. and continues until 1:30 or 2 p.m.

Restaurants are often slow again until the dinner crowd arrives around 5:30 to 6 p.m.

Because servers in most establishments earn a good portion of their income from tips, they're

usually paid minimum wage or just slightly more. When my restaurant is new, I may want to hire

only experienced servers so we don't have to provide extensive training. As we become

established, however, we should develop training systems to help both new, inexperienced

employees and veteran servers understand our philosophy and the image we want to project.

Wages and Salaries

Designation No. of employee Rs/person Total

Chef 6 100000 600000

Helpers 15 30000 450000

Waiters 20 10000 200000

Cleaners 8 6000 48000

Managers 8 125000 1000000

Security 6 20000 120000

Drivers 8 15000 120000

Page | 16

7. Operational Plan

All business manufacturing or non manufacturing should include an operation plan’s part of

business plan. Here in these section describes the flow of goods and services from production to

the customer. As a service provider I would also need this section in the business plan in order to

explain chronological steps in completing a business transaction. Here in my firm, performance

often depends on location, facility layout and personnel, which can, in, turn affect service quality

(including such factors as reliability, responsiveness and assurance).The process of delivering

this service quality is what distinguishes one new service venture from another and thus needs to

be the focus of operation plan. Operation plan begin by describing the location of my new

venture. Then listing the advantages of the location, listing down the zoning regulations or tax

considerations, access to transportation and whether my suppliers would be conveniently located.

Depending on the location of the business, I will have to file articles of incorporation or

organization. (Approval is quick.) Once established, I’ll be able to secure a Sales Tax

Identification Number, which registers my business with the State government. The next step:

more paperwork. First, my physical space will have to meet all the local zoning laws governing

restaurants. Then, once you install all my equipment, I have to pass muster with the local

department of health services or a related restaurant regulation agency. (The governing bureaus

vary state to state.)

In operation plan I need to decide

From whom will merchandise be purchased?

How will the inventory control system operate?

What are the storage needs of the restaurant and how will they be promoted?

How will the goods flow to the customer?

What are the technology utilization requirements to service customers effectively?

These operational analysis guidelines may be used by the manager of a single food service

establishment for self-analysis, or by the unit manager's supervisor. Receiving, Storage, Issuing

and Inventory It is important to control the functions of receiving, storage, issuing and inventory

because of the thousands of money of merchandise involved, to maintain the quality level of

food, to insure that what was ordered was delivered and that what is needed is available. It may

Page | 17

be that my profit is shrinking at my back door-by pilfering of food, by accepting products below

specifications, by items being short on count or weight and, most often, by paying for items that

did not arrive. One employee will be trained to verify both quantity and quality of food and

supplies received. This employee should have the authority and responsibility for receiving,

storage, and issuing. Procedures must be designed to maintain the quality of the product and to

minimize the loss of food and supplies through spoilage and theft. Foods should be checked for

weight, count, quality, price, and for what was ordered. Extensions on the delivery ticket need to

be checked. Then there will be management schedule unannounced spot-check at the receiving

area to insure that established receiving procedures are followed? Are foods stored immediately

after receipt, stored in the proper place, at the correct temperature, and properly rotated? A

particular individual should be responsible for the merchandise in the storage area and see that

the storage areas are properly secured.

Organizational Structure Followed:

Page | 18

Owner

Finance Manager

HR Manager

Operation Manager

Drivers Security Waiters

Marketing Manager

Kitchen Manager

Chef

Helpers

Page | 19

8. Financial Plan

We will start the Salt & Pepper restaurant with the investment of Rs.50000000 /-.

Our start-up costs come to Rs.5 Crore which is mostly ,expensed equipment, furniture, painting,

reconstruction, rent, start-up labor, working capital, marketing ,personnel, and legal and

consulting costs associated with opening our restaurant.

Startup expenses (in Rs.)

Legal expenses(registration) 100000

Office supplies 50000

Uniform(for chef and waiters) 50000

Rent 1000000

Outdoor patio and garden setting 20000

Furniture-2bigtable,

12medium,8small, 60 chairs, 20

bamboo chairs 500000

Cash register and software 30000

Bathrooms repair(labor/material 150000

Windows repair(material/labor) 50000

Floor and wall coverings 1000000

Paint 100000

Lighting and lamps 50000

Petrol and gas expenses 50000

Page | 20

Initial supply of food and beverages 1000000

Kitchen supplies and crockeries 250000

Music stereo/ TV 100000

High chair and booster seat-(4+4) 25000

Cleaning 50000

Water tanks 50000

Advertising and promotions 5000000

4 CD DAWN 250000

Generator 5KVa 100000

AC 700000

Balance will be kept as safety reserves.

Page | 21

9. Risk factors

Every new venture will be faced with some potential hazards, given the particular industry and

competitive environment. So it is important for me as an entrepreneur to make assessment of risk

in the following manner. First to indicate potential risk to the business and the discussion of

might happen if these risks turn into reality. And finally I would suggest a strategy that can be

employed either to prevent, minimize or respond to the risk should they occur A new entry

involves considerable risk for me and my firm. Risk here refers to the probability, and

magnitude, of downside loss, which could result in bankruptcy. The risk of downside loss is

partly derived from my uncertainties over market demand, technological development and the

actions of competitors. While it is true that more restaurants die than live, there’s a say that the

ones that die are the ones that never had a chance to survive. Many things can go wrong with a

restaurant. But most of these flaws can be fixed at the planning stage. Overpricing is the number

one killer. The second is poor control and mismanagement. This is why it is important to work

with someone who knows the business and not just team up with a few friends, none of whom

have any idea about running a restaurant, and hire a manager to do it for you. If I would be

taking an existing restaurant format and opening a branch in a different city, then it is most

important for me to understand the demographics of my new customers and price my menu

accordingly. At the most we can use strategies to reduce or some or all of these uncertainties and

there by reduce the risk of downward loss. These strategies depend on me, whether to choice

about which customer group to serve and how to serve them i.e. scope.

As it’s a new entry into the market I have many risk factors, whether the restaurant will work or

not, so to safe guard myself I would use narrow scope strategy, which would help me form a

specific and small product range to a small number of customers groups in order to satisfy

particular need. And by using these strategies I may also expertise or may not, but would help

me form a particular group. So with these strategy I can reduce the risk associated with

competition and other risk which is associated that market demands does not materializes as

expected or change over the time. With more Indians travelling abroad and sampling

international restaurants and cuisines, they are ready to experiment with their food. All this bodes

Page | 22

well for the industry and my investment. And If I have a product that scores 7 out of 10, I have a

hit on my hands. "It is like any other business. You have to control your costs and run a tight

operation. If you manage to keep your prices down and your employees' hands off the till, that's

half the battle won."

Page | 23