COLLEGE CANTEEN

GROUP 2:

Topic: Prepare a detail business plan for your own

college canteen or hostel mess. Study and workout the
Amount of Fund, Financing plan, Feasibility study,
Strategic competitive advantage/disadvantage, Risk
analysis.

Group Members:
Nikhat Parveen Alam
Vivek Singh
Saurav Pitty
Ankit Garg
Aanchal Arora
 What is a College Canteen?

A cafeteria is a type of food service location in

which there is little or no table service, whether a
restaurant or within an institution such as a large
office building or school; a school dining location
is also referred to as a dining hall or canteen.
Thus, a cafeteria in a college building is called a
college canteen. The canteen service is available
both to the staff and students of the college.
 Other names
A cafeteria in a U.S. military installation is
known as a chow hall, a messhall, a galley, mess
decks.
British Armed Forces parlance, it is known as a
cookhouse or mess.
Students in the USA often refer to cafeteria as
lunchrooms.
Some monasteries, boarding schools and older
universities refer to their cafeteria as a refectory.
 SWOT
STRENGTH WEAKNESS
• In-house food and beverage • Staff shortage
facilities • Not a big space provided
• Affordable price
• Wide options available for
non-vegetarians and
vegetarians
• Sufficient fund for starting a
canteen
 SWOT (Continued)
Opportunity Threat
• Revenue generation • The hawkers below the
• More than 250 people will college
have access to the service • The food court
• Other eating joints
 Limitations

• Space provided is not very big

• Not enough staff
• Expansion scope is less due to space shortage
 Objectives
•To find out the feasibility , strategic
competitiveness and risk of setting up a new
canteen in our college
• To provide service to students and staff of the
institute
• To provide at reasonable cost a wide variety of
healthy, nutritious enjoyable food and drink
•Any profit will be used for the benefit of the
institute
 Risk factors
•Students might prefer outside food
• Wastage
• Delivery
• Satisfying customer’s needs
• Freshness of the food
• Staff problem
 Financials
Profit and Loss Account     Year 2011  
   
To Staff 72,000 By Sales 20,54,400
To Supplier (Mrs. Sharma) 10,62,000  
To Raw material 2,16,000  
To Overhead Expenses 30,000  
To Travelling expense 6,000  
To miscellaneous
expenses 24,000  
To Depreciation 3550  
To Profit 6,40,850  
  9,96,000    9,96,000
 Financials

Balance Sheet (2011)          

     

Capital 1,50,000  Machinery 35500 

Less:Depreci
Add: Net profit 6,40,850 7,90,850 ation 3550 31950
Current Liability Cash in
(Creditor) 88,500 hand 5,000
Cash at
    bank 8,38,850

    8,79,350    8,79,350
 Financials
Projected Cash Flow Statement        
  2011 2012 2013 2014 2015
Net Sales 14,90,400 1564920 1643166 1725324.3 1811590.515
COGS 8,49,550 892004.4 936604.62 983434.851 1032606.594
Depreciation 3550 3195 2875.5 2587.95 2329.155
Total expenditure 14,10,000 1486674 1561007.7 1639058.085 1721010.989
EBIT or PAT(as no interest or
tax) 80,400 78246 82158.3 86266.215 90579.52575
PAT+Depreciation 83,950 81441 85033.8 88854.165 92908.68075
Less: Change in NWC 0 42759.2 39905.46 41900.733 43995.76965
FCF 80,400 35486.8 42252.84 44365.482 46583.7561
Discounting Factor (8%) 8% 0.925925926 0.85733882 0.793832241 0.735029853
PV 6432 32858.14815 36225 35218.75 34240.45139
   
           
Thus, since the PV is positive all throughout it is feasible to go ahead with this canteen.
 Feasibility of the Project

•Positive cashflow

• PV is positive

• Feasible project

• Profitable for 5 years

 Recommendations
•It is advisable to go ahead with the proposal of having a college canteen as due
to monopoly power in the college premises the college will benefit and we, as
the initiators will also succeed in our venture.

•The fixed assets we have will not be replaced for the next 5 years in order to
keep the expenses minimum. We will buy the best quality machines so that
they sustain for a longer period.

•The menu of the canteen will change with time but it will be altered with an
item of the same cost so that the students are given the items at the cost
permitted

•The food left over will be given to an old age home in Sealdah. Any student
passing that area while going home will be given the responsibility to drop it
there so that transport cost is saved

•If there is college on Saturdays then students will be allowed to prepare food
items from their homes n sell it in the canteen and this profit will be entirely
owned by them
 Conclusion
• We will work with Mrs. Sharma on a contractual basis and she will be paid on
the 1st of every month

•The food will be delivered by her to our college premises so that no extra cost
is incurred by us on transport

•We benefit as there is no set up cost to be incurred and no electricity charges

to be borne by us

•There will be a profit sharing ratio of 60:40 between the college authority and
us

•There is no headache of labour as the college will provide us with the staff

•Any one out of the 5 of us, turn by turn, will keep a check on the accounts on a
daily basis
 Primary data collected
QUESTIONNAIRE FOR A COLLEGE CANTEEN.docx

QUESTIONNAIRE FOR COLLEGE CANTEEN (Approval).docx

THANK YOU!