ECONOMICS PROJECT ON YUMMY CORNER

Our group met with Mr.Alok Thakur uncle of Akhil who is the individual owner of

Yummy Corner, Shopprix Mall, Kaling Marg, Sector 5, Vaishali, Ghaziabad, Uttar Pradesh.

When we went to the Store, we saw the working of the store. We learnt about all the factors

for creating an output from the process of production.

The inputs ranged from Food making ingredients like Bread, Vegetables, Spices, etc. Labour

input in the form of cooking staff including chefs and other juniors, waiters to serve the food,

food making fuel in the form of commercial LPG and electricity in making food items. The

variable inputs comprise of labour, food making ingredients, LPG and Electricity. The fixed

inputs are stores, Electronic Billing Machine, Computer System & Pin Card Machine. The

business largest expenses are Rent & Hired Workers.

Yummy Corner Expenses Chart as provided by Mr.Alok Thakur

Factors of Inputs Figures in %

Food & Beverage 32%

Labour 33%
 Electricity 7%

Rent 10%

Other Miscellaneous Expenses 10%

Profit 8%

Yummy Corner Expenses

8%
10% 32%
10%
7%

33%

Food & Beverage Labor Electricity Rent Other Miscellaneous Expenses Profit

The food business mainly depends upon on it chefs because we always say “khana banne vale

ke hatho main jadoo hai”, and with this perception Mr Alok have hired professional chefs

and cooking staff. At present there are 5 chefs and 6 support staff with 2 cleaning workers.

So, they are not everywhere available which make them scarce as well as highly expensive

for the business.

As, we know the whole business is a food business and there are lot of competitors available

in the market due to which they must watch market very closely as some of the big names

such as Pizza Hut, Bikanervala, Dominos, McDonald’s & many more.

Since, it is a monopolistic competition, the products generated and marketed are distinct, but

near replacements. It is a combination of perfect competition and monopoly. This business

operates under conditions of monopolistic competition. Everyone provides something distinct

in this situation and has an aspect of uniqueness, but they all compete for the same

customer’s in essence.

The Yummy Corner offer the same types of products and services at a cheaper price than

Dominos, Bikaner, and Haldiram’s. Also, the tastes are not commonly available in the area.

All can get everything under one roof. Also, we observed that they don’t provide non-veg

food from same counter which enables them to be focused by the large group of Vegetarians

during all over the years and especially on Festivals.

When there is tough competition in the market, it is an urgent requirement of the business to

act for running the business in the long run else it will lead to closing of the business. So, Mr

Alok told some important steps which included are Fast Delivery which is the most

important factor for demand in these days and they are taking help of Zomato & Swiggy for

better delivery. Good quality products are also focused as they are the most important part

of the business. The company prioritizes quality over pricing never compromises on the

level of food provided. Middle class customers are largely targeted in this food counter as

its price is very low as compared to other stores. Our economy is dominated by middle

income level consumers and we developed according to that target market. He also

focused on how to reduce food waste.

 Plan Ahead

Recycle Buy what

what you you need
cant eat

How to reduce
food waste

Eat it all or
Store
store left
correctly
overs for later

Cook the
right
amount

As per reviews we saw some issues related to customer satisfaction in which the most

common was no sitting area in the outlet. Packaging was also the main issue as the food is

not properly packed. He said the list is long and all the customers have different wants which

makes it difficult to serve all.

So, in overall he told “It is very strategic to know the reviews whether it is positive or

negative to improve our performances and it will not only help in running the business but

will also help in customer satisfaction.

Now when we learnt about the pros and cons of the business, we went ahead about the

comparison with the competitor which were mainly Haldiram’s & local vendors in that area.

At present, India's Food and Beverage Industry may be an energetic and flourishing scene,

yet it is likewise broadly flighty and exceptionally focused.

The Haldiram’s and Yummy Corner is making the same segment food and having the same

target audience. Their approach towards customer is almost the same that of the food counter.

Their product is also homogeneous which makes it difficult for the customer to choose.
Now when we knew the orientation of the same business type we went upon the

competitiveness of the business which made us very thinkable towards different approach

towards customers, The advertising pattern of Haldiram’s is very high as it has very huge

capital with it as Yummy Corner has low capital vested with it. The price charged of

Haldiram’s was high as compared to Yummy Corner. The product as earlier discussed was

same but Haldirams was selling large varieties of sweets which was not there in Yummy

Corner.

Since, the factors of production rises and rest remains Ceteris paribus the prices will increased

due to increase in prices of production leading to fall in demand of food items. As, asked by

Mr.Alok he told us the increase in price by 22% (Assumed) which led to a -16.66% decrease

in sales (Qd). And, in the end, revenue went up by 1.67%. So the price hike was just enough

to offset the decrease in sales. Thus, because the percent change to price was more than the

percent change in Qd, we have inelastic demand.

Here is an illustration:

Price Qd TR ₹

100 30 3000

122 25 3050

22% -16.66% 1.67%

As we can see, we started at a price of ₹1 and selling a quantity of 30, which gave us ₹30 in

revenue. A 16.66% drop in quantity would bring sales down to 25. And a 1.66% increase in

revenue would raise total revenue to 3050. Dividing this new total revenue by the new
quantity (sales), that gives us the new selling price of ₹122. And calculating the percentage

change to price gives us just over 22%. So as we can easily see, the percent change to price

was greater than the percentage change in quantity demanded. And that means we have

inelastic demand. So with the higher price offsetting the drop in volume (sales), it led to our

profiting!

Mr.Alok told us “Notwithstanding the size and traditional players, unless you have something

to give that catches the patron's eye, you're likely to have difficulty standing out from the

crowd. Even if your restaurant gets off to an excellent beginning, by taking away your

customers, fresh competitors may enter the market and blemish the game for you. While

India's restaurant section is booming, longevity and sustainability are always a matter.”

To continue, their company requirements must be raised to attract the audience.

As our discussion with Mr.Alok was ended we recapitulate all the words of him and we

learnt that we have not only learn Economics from this assignment but also

Management as well as Marketing and how they are interlinked.

We depend in a community on others to generate and sell almost all the products and

facilities that we need. Usually, however, the origins of these products and facilities are not

other people but organisations formed to produce and distribute products and facilities

explicitly. Nearly every organisation in our society — whether it's a company, a non-profit

organisation, or a government unit — can be seen as offering a collection of products,

facilities, or both. The function of executives and managers is the duty for supervising and

creating choices for these organisations.

It will perceive the significance of learning material organization fields, for example,

promoting, generation/activities initiative, account, and business technique, regardless

of whether we are doubtful about the need to learn and appreciate financial aspects.

While we can actualize promoting, generation/activities authority, and money strategies

without knowing the basic financial matters, any individual who wishes to know the

why and how behind the strategy needs to welcome the economic rationale for the

technique.

We are living in a globe where assets are constrained, which is the reason financial aspects is

a down to earth science. We can't have all we need. Others likewise need the equivalent

uncommon supports that we need. Associations giving items and offices will possibly suffer

and thrive on the off chance that they satisfy, and do as such productively, the prerequisites

for which they were created. Since the customers of the association likewise have limited

assets, they won't designate their rare assets to get next to zero noteworthiness. What's more,

regardless of whether the products or administrations are of worth, the client will move to the

next provider if another association can meet a similar need with an increasingly great trade

for the client. The association must, as such, create significance for its customers, which is

the differentiation between what they gain and what they produce.

The managers who understand economics have a competitive advantage in creating

value.

GROUP 1

Akhil Kumar Thakur PGMA1908

Uttkarsh Singh PGMA1942

Astha Singh PGMA1901

Abdullah Khan PGMA1902

Ankita Verma PGMA1911