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 (3rd 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”.

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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 : Tk. 1,500,000.

Anik Saha : Tk. 1,500,000.

Ibrahim Khalil : Tk. 1,500,000.

Md. Ariful Islam : Tk. 1,500,000.

Total : Tk. 7,500,000.

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04.03. Management Structure Plan:

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

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General Manager (Kanak Chandra

Saha)

Store & Production Manager (Md. Nuruzzaman

Naeyem)

Nutrition Specialist

Juice MakerHead Chef

Assistance Chef (3)

Head of Marketing and Idiation (Anik

Saha)

HR & Financial Manager (Md. Ariful

Islam)

Flore &Customer Service Manager (Ibrahim Khalil)

Waiter (5)

Cleaner (1)

Security Guard

Dha

ka-M

ymen

sing

h H

ighw

ay

3rd F

loor, Righ

t Half, A

hm

ed T

ower,

Kam

al Atatu

rk A

venu

e, Ban

ani

Walk way for Stuffs

Entertainment

Ground for Kids

Kitchen

Restaurant Store

Cash Counter: Order Receive and take bills

Juice CornerOrder Delivery Counter

Wash Room

s

Ladies Toylets

Walk way for Stuffs

Entertainment

Ground for Kids

Kitchen

Kitchen Store

Cash Counter for Bill Payment Juice Corner

Order Receipt and Delivery Counter

Wash Room

s

Ladies Toylets

05. Restaurant Framework

Walk way for Stuffs

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Table 01

Table 02

Table 05

Table 06

06. Product and Services: Our food Products are categorized into three classes ensuring

health with each foods item.

Category 1: Fruit Juices

SN Juices Nutritional Facts Health Benefits

01 Banana Juice Anti-oxidants, minerals, vitamin-B6,

vitamin-C minerals, potassium.

Instant energy, helps in normal bowel

movements, control heart rate and

blood pressure.

02 Mango Juice Fiber, Vitamin-A, vitamin C, copper Protect against colon, breast,

leukemia and prostate cancers

03 Jackfruit Juice Fiber, vitamin-A, antioxidant vitamin-C,

Vitamin B-complex, potassium,

magnesium, manganese, and iron.

Eliminate cancer-causing chemicals

from the colon, maintain integrity of

skin.

04 Wood Apple Juice Calcium, Phosphorous, Fiber, Protein,

and Iron.

Relief from skin disease, peptic ulcer,

diarrhea, respiratory problem.

05 Apple Juice Phtyto-nutrients, and anti-oxidants Essential for optimal growth,

development, and overall wellness.

06 Carrot Juices Anti-oxidants, carotenes, vitamin-A,

Vitamin B complex dietary fiber, no

cholesterol.

Good eye health, growth and

development, fight against cancers.

Category 2: Green fast foods

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Table 04

Table 03 Table 07

SN Fast foods Nutritional Facts Health Benefits

01 Carrot Cake Anti-oxidants, carotenes, vitamin-A,

Vitamin B complex dietary fiber, no

cholesterol.

Good eye health, growth and

development, fight against cancers.02 Carrot Stick

03 Potato Soup Starch, vitamins, minerals, dietary fiber,

vitamin A, no cholesterol.

Prevent constipation, decrease

absorption of dietary cholesterol,

protect against colon polyps and

cancer.

04 Tomato Soup Very low in any fat contents and have

zero cholesterol level, antioxidants,

dietary fiber, minerals, and vitamins

Help in cholesterol control, weight

reduction diet-programs, protest

against cancers, including colon,

prostate, breast, endometrial, lung,

and pancreatic tumors.

05 Tomato Sandwich

06 Strawberry Salad Vitamin-C, B-complex, vitamin A,

vitamin E, minerals like potassium,

manganese, fluorine, copper, iron and

iodine.

health benefits against cancer, aging,

inflammation and neurological

diseases

07 Pumpkin Apple Bread Storehouse of many anti-oxidant

vitamins such as vitamin-A, vitamin-C,

vitamin-E and Phtyto-nutrients.

Cholesterol controlling and weight

reduction.

08 Porridge (Oats recipe) Protein, carbohydrate, vitamin A,

vitamin B complex, vitamin C, vitamin

D, vitamin E, vitamin K

Reduce the risk of cardiovascular

disease and stroke.

09 Multi-greens Role Vitamin C, vitamin-K, vitamin-A, anti-

oxidants, calcium, fiber, carotene, B-

complex, minerals.

Cholesterol controlling and weight

reduction, protection from

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 Vegetable curry Nutritional Facts Health Benefits

01 Cauliflower & potato curry

Starch, vitamin C, vitamin B complex,

minerals, dietary fiber, vitamin A, Anti-

cancer phyto-chemicals like

Prevent constipation, decrease

absorption of dietary cholesterol,

protect against colon polyps and

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sulforaphane and plant sterols such as

indole-3-carbinol, no cholesterol.

cancer.

02 Pumpkin curry with chickpeas

Dietary fiber, Protein, Manganese , anti-

oxidants, minerals, vitamins A:B, zinc,

iron

Energy Production, Stabilizing

Blood Sugar, cholesterol controlling

and weight reduction03 Chickpeas Dall

04 Coconut curry with carrot

Anti-oxidants, carotenes, vitamin-A,

Vitamin B complex dietary fiber, no

cholesterol.

Good eye health, growth and

development, fight against cancers.

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.

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General Environment

EconomicSocio-culteralGlobalTechnologicalPolitical/LegalDemographic

Industry Environment

(Porter's 5 forces model)

Bargaining Power of SuppliersBargaining Power of BuyersThreat of SubstituteThreat of New entrantsIntensity of Rivalry

Competitors Environment

We have performed this external analysis to generate idea about

our potential Opportunities and

Threats

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 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 nutrition’s, 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.

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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.

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 Porter’s 5 forces model.

Figure: Michael Porter’s 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

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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

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.

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Competitors Profile

All the competitors (Street shop, Boomers Cafe, Star

Kabab & Restaurant, Delicious food and restaurant, Green

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.

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.

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Resource Capabilities Core Competencies Competitive Advantages

All the competitors (Street shop, Boomers Cafe, Star

Kabab & Restaurant, Delicious food and restaurant, Green

External Environment Analysis (Opportunities and Threats)

SWOT AnalysisInternal Environment Analysis (Strengths and Weaknesses)

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.

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:

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)

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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.

People’s perception toward to get a healthy life is increasing as the number of GYM and

Body making center increasing..

Police protection services.

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.

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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.

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 won’t 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.

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Chapter: Three

01. Strategy Formulation (Business Level Strategy):

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 won’t 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

nutrition’s and health benefits.

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Business Level Strategy

Integration of Both Cost Leadership

and Differentiation

Differentiation

Broad Scope Differentiation

Narrow Scope Differentiatio

nCost Ledership

Handpicked Suppliers Third Parties (Distributors)Final destination: Restaurant

Handpicked Suppliers Final destination: Restaurant

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.

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.

Figure: Traditional Raw-materials Procurement System

Figure: Differentiated Direct Procurement System for our Restaurant

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Strategy: Differentiation in Narrow Market

This system will ensure materials freshness and also

cut some costs definitely.

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 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.

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 Sales Strategy Key Points

Green fast foods Standardized Product Strategy 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 Sales Strategy Key Points

Green traditional food (Rice with 4 items)

Assemble to order Strategy 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 Sales Strategy Key Points

Green fruit juices Make to order Strategy Customer choice on fruit menu. Customers taste preferences.

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Handpicked Suppliers of Raw-materialsRestaurant Store

Kitchen: Production of Fast foods

Order Delivery Counter

Juice Corner

Customers

Cash Counter: Order and Bill receive

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:

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)

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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

SN Juices ProductionCost (Tk.)

SellingPrice (Tk.)

Per Unit CM (PC-SP)

CM Ratio

01 Banana Juice 15 30 15 0.50

02 Mango Juice 20 35 15 0.43

03 Jackfruit Juice 18 35 17 0.49

04 Wood Apple Juice 15 30 15 0.50

05 Apple Juice 22 40 18 0.45

06 Carrot Juices 12 20 8 0.40

Total = 102 190 88 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 Juices ProductionCost (Tk.)

SellingPrice (Tk.)

Per Unit CM (PC-SP)

CM Ratio

01 Carrot Cake 20 30 10 0.33

02 Carrot Stick 20 30 10 0.33

03 Potato Soup 17 30 13 0.43

04 Tomato Soup 22 35 13 0.37

05 Tomato Sandwich 23 40 17 0.43

06 Strawberry Salad 30 45 15 0.33

07 Pumpkin Apple Bread 22 42 20 0.48

08 Porridge (Oats recipe) 40 65 25 0.39

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09 Multi-greens Role 18 30 12 0.40

Total = 212 347 135 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 Juices ProductionCost (Tk.)

SellingPrice (Tk.)

Per Unit CM (PC-SP)

CM Ratio

01 Rice 17 30 13 0.43

02 Cauliflower & potato curry 25 45 20 0.44

03 Pumpkin curry with chickpeas 30 50 20 0.40

04 Chickpeas Dall 15 32 17 0.53

05 Coconut curry with carrot 35 60 25 0.42

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.

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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 person’s 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.

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 customer’s want, where they want, at what price they want and what it

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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 don’t prefer veg foods and we believe that we will success as young people’s 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.

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 (3rd 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.

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Marketing Mix

1. Product

2. Price

3. Place

4. Promotion

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.

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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.

Designation No of employee

First Year (2015-16) (Tk.) Second Year (2016-17) (Tk.)Monthly

Salary Per employee

Yearly salary per employee

Total Salary

Monthly Salary Per employee

Yearly salary per employee

Total Salary

Nutrition Specialist 01 50,000 600,000 600,000 55,000 660,000 660,000Head Chef 01 30,000 360,000 360,000 33,000 396,000 396,000Juice Maker 01 15,000 180,000 180,000 16,500 198,000 198,000Assistant Chef 03 12,000 144,000 432,000 13,200 158,400 475,200Waiter 05 5,000 60,000 300,000 5,500 66,000 330,000Security Guard 01 6,000 72,000 72,000 6,600 79,200 79,200Cleaner 01 6,000 72,000 72,000 6,600 79,200 79,200 Grand Total Salary Cost (Year 1) 2,016,000 Grand Total Salary Cost (Year 2) 2,217,600

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 12

Total Salary = Yearly salary per employee No of employee

01.02. Projected Total Fixed costs:

Sl. No Particulars Expenditure (Tk.) Initial FC01 Decoration Costing 1,000,000 1,000,00002 Furniture’s (FA) 600,000 600,00003 Utensil (FA) 300,000 300,00004 Refrigerator (FA) 250,000 250,00005 Gas oven (Industrial) (FA) 150,000 150,00006 Gas Burner (Stove) (FA) 85,000 85,00007 Fruit Juicer (Large) (FA) 35,000 35,00008 Air conditioner (FA) 375,000 375,00009 Other kitchen accessories 200,000 200,00009 Lighting (FA) 100,000 100,00010 Entertainment ground for kinds 80,000 80,00011 Fan (FA) 40,000 40,00012 Other overhead costing (For 2 years) 200,000 100,000 (For 1 Year)13 Advertisement Cost (For 2 Years) (N-3) 200,000 100,00014 Employee Salary (For 2 Years) (N-1) 4,233,600 2,016,000 (For 1 Year)15 Total Bank Interest Cost (For 8 Years) (N-2) 1,810,344 226,293 (For 1 Year)16 Utility Cost (Gas, Electricity and water) (For 2 years) 600,000 300,000 (For 1 Year)17 Floor Rent (For 2 Years) 2,400,000 1,200,000 Total Fixed cost (N-5) Tk. 12,658,944 Tk. 7,157,293

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01.03. Depreciation Calculation of Fixed assets: All the fixed assets will be depreciated by

using straight line method over the lifetime.

Sl. No. Particulars Useful Life Cost (Tk.) Per year Depreciation (Tk.)

01 Furniture’s 10 Years 600,000 60,000

02 Utensil 10 Years 300,000 30,000

03 Refrigerator 8 Years 250,000 31,250

04 Gas oven (Industrial) 5 Years 150,000 30,000

05 Gas Burner (Stove) 5 Years 85,000 17,000

06 Fruit Juicer 5 Years 35,000 7,000

07 Air conditioner 7 Years 375,000 53,571

08 Lighting 3 Years 100,000 33,334

09 Fan 12 Years 40,000 3,334

Depreciation Cost per year for fixed asset 265,489 (Tk.)

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 (1+0.14) 8 or, 2,500,000 = Pmt (4.64) or, Pmt = 2,500,000/4.64

0.14 = 538,793 Tk.

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)

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Total Fixed cost = (N-5), Page 24

01.05. Projected Starting Balance Sheet:

PANCHA BANJON

Starting Balance Sheet

As on January 01, 2015

Particulars TakaAssets:Cash On hand Security for Position (Floor)InventoryTotal Current assets

FurnitureUtensilRefrigeratorGas oven (Industrial)Gas Burner (Stove)Fruit JuicerAir ConditionerLightingFanTotal Fixed AssetsTotal Asset

Equity and Liability:Total Equity CapitalTotal LiabilityTotal Liability and Equity

3,565,0004,000,000

7,565,000

500,0008,065,000

600,000300,000250,000150,00085,00035,000375,000100,00040,0001,935,00010,000,000

7,500,0002,500,00010,000,000

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

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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 0.43

= 12,900,000

( ) Annual Total Salary = 2,200,000

( ) Floor rent = 1,200,000

( ) Advertising Cost = 100,000

( ) 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 2015 2016 2017Total Sales RevenueCost of goods sold (Variable cost) (57%)Gross Profit (EBITDA)

Selling & administrative expenses:Depreciation on Furniture’sDepreciation on UtensilDepreciation on Refrigerator

18,000,00010,260,0007,740,000

60,00030,00031,250

19,800,00011,286,0008,514,000

60,00030,00031,250

21,780,00012,414,6009,365,400

60,00030,00031,250

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Depreciation on Gas oven (Industrial)Depreciation on Gas Burner (Stove)Depreciation on Fruit Juicer (Large)Depreciation on Air conditionerDepreciation on LightingDepreciation on FanUtility cost (Gas, electricity, water)Decoration CostingEntertainment ground for kindsOther overhead costingAdvertisement costEmployee SalaryTotal Selling and administrative expensesTotal Operating profit (EBIT)Bank Interest expenses (N-6)Net Income

30,00017,0007,00053,57133,3343,334300,0001,000,00080,000100,000100,0002,016,0003,861,4893,878,511226,2933,652,218

30,00017,0007,00053,57133,3343,334300,000--100,000100,0002,217,6002,983,0895,530,911226,2935,304,618

30,00017,0007,00053,57133,3343,334300,000--100,000100,0002,439,3603,204,8496,160,551226,2935,934,258

01.08. Projected Cash flow Statement with 3 years outcome:

PANCHA BANJON

Projected Cash flow Statement

For the year ended on December 31

Year Cash Flows Cumulative Cash Flows

Discount Factor, I=8%

PV0 Discounted C.C.F

0 -10,000,000 -10,000,000 1 -10,000,000 -10,000,0001 3,652,218 -6,347,782 0.9259 3,381,589 -6,618,4112 5,304,618 -1,043,164 0.8573 4,547,649 -2,070,7623 5,934,258 4,891,094 0.7938 4,710,614 2,639,852 Net Present Value of the Investment will be 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

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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.

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