“BUSINESS PLAN”

UTTAM SWAAD – ORGANIC

RESTAURANT

Submitted By:
Nisha Khanwani
Jyotsna Nimbalkar
Sunil Pisal
Shreejish Radhakrishnan

Submitted to:
Prof. Edwin
“BUSINESS PLAN”
 UTTAM SWAAD – ORGANIC
RESTAURANT

UTTAM SWAAD is a single-unit, medium-sized restaurant. We focus on organic and

creative food. The restaurant will be located in Mumbai. Most important to us is our
financial success, but we believe this will be achieved by offering high-quality service
and extremely clean, non-greasy food with interesting twists.

Mission
UTTAM SWAAD is a trendy and healthy place to eat, combining an intriguing
atmosphere with excellent, interesting food that is also very good for the people who
eat there. A rewarding place for employees, which is reflected in their service
delivery.

Objectives
1. Sales of $350K the first year, more than half a million the second.
2. Personnel costs less than $300K the first year, less than $400K the second
year.
3. Profitable in year two, better than 7.5% profits on sales by year three.

Company Ownership

The restaurant will start out as a simple sole proprietorship, owned by its founders.

Start-up Summary:
The founders of the company are Nisha Khanwani and her companion Shreejish
Radhakrishnan. Shreejish focuses on the financial issues and Nisha on the personnel
issues. Shreejish earned his business major degree from the S.P.Jain institute of
management.
We have found the location and secured the lease for $2,000 per month. We will be
able to set up shop in time to begin turning back a profit by the end of month eleven
and be profitable in the second year. The place is already equipped as a restaurant
so we plan to come up with a total of $40,000 in capital, plus a $100,000 SBA
guaranteed loan, to start up the company.

Services
UTTAM SWAAD offers a trendy, fun place to have great food in a social
environment. The restaurant offers a large repertoire of ethnic ingredients and
recipes from across the states. Ethnic recipes will be used to provide the customers
with a diverse, unusual menu. The emphasis is on re-introducing the local healthy
options to the city life. Being organic, is just another value addition to it.

People :
  UTTAM SWAAD has assembled a strong management team.
 Nisha Khanwaniwill be the general manager. Nisha has extensive management
experience of organizations ranging from six to 45 people.
 Shreejish Radhakrishnan will be responsible for all of the finance and accounting
functions. Shreejish has seven years experience as a CPA.
 Lastly, UTTAM SWAAD has chefs Jyotsna and Sunil who will be responsible for
the back-end production of the venture. Collectively they have over 37 years of
experience.
 The founders of the company are Nisha Khanwani and her companion Shreejish
Radhakrishnan.
 Shreejish focuses on the financial issues and Nisha on the personnel issues.
Shreejish earned his business major degree from the S.P.Jain institute of
management.
 Nisha has great experience managing personnel and we are quite confident of his
ability to find the best staff possible.
 Our chef, Jyotsna and Sunil, is already on board and has a published cookbook
that will add prestige to the restaurant immediately.
 We will be looking to find a young, ultra-hip staff to make sure we add the edge
that makes UTTAM SWAAD so trendy.
 As the personnel plan shows, we expect to invest in a good team, fairly
compensated. We think the planned staff is in good proportion to the size of the
restaurant and projected revenues.
 Additionally the restaurant employs its staff from the villages and trains them.

Opportunity:
The popularity of organic foods and the restaurants that serve them has
skyrocketed in recent years. A once niche market is now a burgeoning billion-dollar
industry. Organic foods are intrinsically more expensive than processed foods, driving
up a restaurateur's costs. Organic foods are also often in short supply. Still it is possible
to succeed in the marketplace if several rules are taken under consideration.

UTTAM SWAAD believes that the market can be segmented into three distinct groups
that it aims to target.

The Rich Trend setters:

Organic is becoming a way of life for this target segment. Rich lads, who naturally desire
organic foods as well as ethnic cuisine, estimated to be at 10,00,000 in numbers. They
are an easy target to attract for the trials. To hold them and make them repeat customers
is the key.

Nuclear families:
Working couples are usually more interested in trying out places which are trendy and
healthy at the same time. They have double income and it is particularly easy to make
them spend money again - they spend the most on drinks, appetizers and tips.

Diet conscious women segment:

Last group which is particularly interested in the menu's healthy offerings is dieting
women which number 350,000. The organic food menu will always have a line of
extremely delicious very low-fat meals.

Our strategy is simple, we intend to succeed by giving people a

combination of great,healthy, interesting food, and an environment that
attracts "trendy" people like a magnet. Implementation isn't simple, but
that's in the doing of it, not in the plan.
We appeal to carnivores and omnivores, because more so than any other kind of
consumers, vegetarians don't always stay vegetarian. You'll want to make sure that even
if they change their diets they still want to come back

Marketing Plan

Market Penetration
Entry into the market should not be a problem. The store has high visibility with
heavy foot traffic all day long. Rich people will support this new organic
restaurants. In addition, $10,000 has been budgeted for a pre-opening advertising and
public relations campaign.

Marketing Strategy
Focusing on the unique aspect of the product theme (Organic, healthy, tasty foods) a
mix of marketing vehicles will be created to convey our presence, our image, and our
message.
• Print media -- local newspapers, health magazines, business magazines, economic
times
• Broadcast media -- local programming and special interest shows
• Hotel guides
• Direct mail -- subscriber lists, offices for delivery
• Misc. -- yellow pages, charity event
• Delivery & Catering
Food for delivery may be similar to take-out (prepared to order) or it may be
prepared earlier and stocked. Catering will be treated as deliveries
Competitive Edge

 Our competitive edge is the menu, the chef, the environment, and the tie-in to
what's trendy.

 Every dish in the restaurant has been grown out of organically produced
vegetables including spices.

 An interesting fact about the hotel is that you and I can be their vegetable
suppliers. We accept products from any one as far long as it is grown at home
without using chemicals.

Future Plans

 If the business is meeting its projections by month nine, we will start scouting for
asecond location and develop plans for the next unit. Our five year goal is to have
3restaurants in delhi with a combined annual profit of between$500,000 and
$1,000,000

Competition:

Pure (Taj Land’s End): This hotel is the signature restaurant of the hotel and serves
food which is prepared using organic products. The hotel also makes sure that it does
not include saturated fat while preparing various cuisines.
Strength : Well known brand. People already know about taj.
Weakness: cost is high.
Some of the organic restaurants existing in Mumbai.
o Green Way - Organic Produce
o Navdanya - The Organic Shop
o Organic Fab India
o Schroffs Organic Food
o Uday Organics
Context :

 The Food and Drug Administration (FDA) defines organic the procedures that
farmers grow and process food. Because these terms are more in stringent than
conventional farming the practices are much more labor intensive.

 Additionally, shunning the use of products like pesticides and synthetic growth
hormones often results in lower product yield, which leads to smaller amounts of
food that farmers can bring to market. The consequence of this supply and
demand paradigm is the inevitable price hike of organic foods.

 We will have our business located in Mumbai because the target population
mostly resides in Mumbai and suburbs of Mumbai.

Risks and Rewards :

 Organic farming on contract basis requires a long-term approach as it is

based on the trust of farmers, for which grassroot intervention is critical for
its success. Convincing farmers about the economic benefits of contract and
organic farming requires educating the farmers about contract and organic
farming techniques, markets and marketing skills for organic food and fibre,
seeking cooperation from business communities and firms, and informing
consumers about benefits of organic products. This requires significant
extension work at the village level, which requires adequate number of
trained staff and workers.
 Contract organic cultivation is particularly suitable for countries, like India,
with a huge population of small farmers, who still use traditional methods of
farming with few agricultural inputs. Such venture, executed by a proper
agreement, is capable of bringing about favourable changes in the present
conventional agriculture to make it sustainable and commercially viable.
However, for such venture to succeed at a large scale, contracts should be able
to adequately address certain issues, such as timely procurement; higher
premiums; more crops coverage; soil, water and other laboratory testing;
crop insurance; improved inputs; timely payments; prior price information;
direct purchase from farm; collective payment of bonus and produce price;
better extension network; and transparency in grading systems.

 Government should also increase their involvement in promoting the

concept by improving the national organic rules and regulations, achieving
recognition at the international level, promoting domestic market, and
providing financial support on organic manures, biofertilizers and biocontrol
agents.