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Introduction

Bon Appetit Le Cafe restaurant is going to be located in Laitumkhrah, Shillong. This restaurant will be serving the best and quality food within the reach of all. This will target all type of people from low class to highest level of income group. To give the best food the business will recruit skill labor that is experience in cooking. The business firm will be given required training for the employees in order to enhance the production quality. The business firm will be taken the necessary legal formalities before setting up a business from different Boards like Pollution License from Pollution Board, Trading license from Labor commissioner, License from Municipal board and Local Leaders etc.

Objective of Business
Purpose of choosing Restaurant Business: To serve best and quality food within the reach of all. To serve people according to their needs. To bring awareness on the different tastes of various culture. To bring out new and innovative food products. To generate team building. To learn about how to set up new Venture.

Methodology
In doing this project the information was collected through: Primary Methods: This process of collecting information was based on interviewing face to face to the customer by preparing questionnaire. The interviewee was asked verbally by the interviewer or they were asked to fill up the questionnaire by themselves.

Introduction of the Enterprise


Type of the Business: Restaurant Bon Appetit Le Cafe Name of the Restaurant:

Items of the Restaurant:Western food, Asian food and Indian food. Location of the Restaurant: Number of the Employees: Type of the Firm: Laitumkhrah, Shillong. 2 waiters and 2 cooks.

Private Limited. (Pvt. Ltd.)

Menu of the Restaurant:Breakfast. (E.g. Egg Rolls, Tea and Coffee) Lunch and Dinner. (E.g. Rice, Chicken Biryani, etc) Special: Western: American. Spanish. Italian. Asian: Chinese. Thai. Indian: South Indian special. North Indian special. Capacity of the Restaurant: Between 30 to 40customers.

Marketability
Opening up a Restaurant business in an area like Laitumkhrah will be very much profitable because even if there is huge competition, the density of population is very high in this area, so customer will come due to unavailability of space in other restaurant. If we produce good quality of food we can attract more customers those who come to our restaurant. The life style of the people in this area are also like mostly outside food takers means people here like to eat outside. This is an opportunity to us to enter to the business.

Target Market
The various types of Target Market of the Business are:
Age:

According to age, the target market is from under 6 years to above 60 above.

Family size:

According to family size, the target is for young and single and for Married with children and older.

Gender:

According to gender, the target is both male and female.

Income:

whose

According to income, the target is from low income group, whose income is Rs. 40,000 p.a. to High income group, income is above Rs. 160,000 p.a.

Occupation:

According to occupation, the target is for non-employed and employed.

Location:

According to location, the target is for developing area.

Pricing strategy
The pricing strategy which the business follows is Price Penetration. This is the pricing strategy which the firm usually lowers their products in the beginning and raise the price of the products when the business gains the market share. The business is following this pricing strategy because it will give more attention towards the consumer. In order to gain the market share, in the beginning the business will lower down the price of the products and then increase the price after achievement of the market share.

License
In order to set up the restaurant the following licenses were acquired by the firm from the following Boards: 1) Pollution License should acquire from Pollution Board. 2) Trading License should acquire from Labor Commissioner. 3) License from Municipal Board.

Financial Projection

Fixed Capital:

Rent on Building (Rs. 10,000 x 12) 1,20,000 Arrangement of the building Equipment use in the firm:
a. Coffee Machine b. Refrigerator

Rs. Rs. 50,000

Rs. 10,000 Rs. 15,000 Rs. Rs. Rs. 5,000 Rs. 41,000 10,000 Rs. Rs.2, ========== 5,000 6,000

c. Grinder (Rs. 2,500 each) d. Steamer (Rs. 3,000 each)


e. Stove (Rs. 2,500 each)

Cost of the Tools Cost of the Furniture 30,000

Rs.

Therefore, the total fixed cost incurred is 51,000

Working Capital (Per Month):

Staff Salaries: a. Waiter (Rs. 3,000 per head) b. Cooker (Rs. 3,000 per head) Rs. 6,000 Rs. 6,000 Rs. 12,000

Raw Materials:
a. Vegetables b. Meat

Rs. Rs. Rs.

10,000 10,000 10,000

c. Flour

d. Rice

Rs.

10,000 Rs. 40,000 5,000 5,000 10,000 Rs.

Promotion Telephone Repair and Maintenance

Rs. Rs. Rs.

Therefore, the total working capital expenses incurred is 72,000

The total amount to be invested is; Fixed Cost Working capital expenses Rs.2, 51,000 Rs. 72,000

Therefore total investment is

Rs.3, 23,000 =========

Cost of Production (Per year):

Total working capital expenses (Rs. 72,000 x 12) 64,000 Depreciation on Equipment (10% on Rs. 41,000) 4,100 Depreciation on Tools and Furniture (25% on Rs. 40,000) 10,000

Rs.8, Rs. Rs.

Rs.9, 10,000 ==========

Sale (Per year): January February March April May June July August September October November December Rs. 70,000 Rs. 72,000 Rs. 75,000 Rs. 80,000 Rs. 80,000 Rs. 80,000 Rs. 80,000 Rs. 80,000 Rs. 80,000 Rs. 80,000 Rs. 80,000 Rs. 90,000 Rs.9, 47,000 ==========

Net Profit per year: Sales Cost of Production

Rs.9, 47,000 9, 10,400

= Rs. 36,600 (Profit)

Financial Assessment: Net Profit Ratio:

Profit x 100/ Sales

= Rs. 36,600 x 100/ 9, 47,000 = 3.86 %

Rate of Return:

Profit x 100/ Total Investment

= Rs. 36,600 x 100/ 32,300 = 11.33 %

Break Even Point (Sales):

Fixed expenses x Sales/ Contribution

(Contribution: Sales Variable cost)

= Rs. 2,51,000 x 94,000/ 8,75,000 = Rs. 26,965 (approximately)

SWOT Analysis
Strength: The firm has following Penetration Pricing strategy. The firm will have good quality food. The firm will have good service. The firm is being located in busy area. The firm is having enough capital. The firm is having skill labor.

The firm has its capacity to produce due to skill labor. Weaknesses: The firm is new to Market. The firm has low market share. There may not have financial stability. The firm may not have dedicated workforce. The firm may not produce on time because of machine shutdown. Opportunity: The location is very populated area. The firm will able to deliver or serve a food at lower price. Threat: The competitors might produce better food and service. There may be rise in price. There may be some Government prohibition for some product. There may be new direct competitors which better in everything.