This is a business plan project of our coursework for BBA, NMIMS. The business plan includes the company descriptions, products & services offered, marketing & promotions overview, financial statement analysis and operations management of a new business. The team members included Anuj Bakshi Siddharth Shah Shreet Shah Shyla Jha Samah Visaria

1. Business Plan: Sauté
Group Members( TY BBA - B):
AnujBakshi : 66
Siddharth Shah: 81
Shreet Shah: 98
Shyla Jha: 99
SamahVisaria: 117

2. Executive Summary
Sauté is the first of its kind, organic and health restaurant in India. We serve organic food that is essentially
made of domestically grown products that are chemical and preservative free. Our specialty at Sauté is our
ingredients along with the manner in which we prepare our dishes. All food preparations at Sauté are done in
the healthiest manner keeping in mind, the needs and preferences of our target market.
Our mission at Sauté isto provide value to our customers by offering great tasting, nutritious food and solutions
for conscious and healthy living along with quality service at all times.
Sauté’s target market:
 Young professionals and College Graduates:
Professionals who are health conscious today and prefer healthier food options while eating out. The
age bracket for this category is: 18 to 30.
 Middle aged group:
From this category we target the upper middle class in Mumbai who are looking for healthier eating
out options for themselves, their families and their children. The age bracket for this category is: 30 to
50.
 Older age group:
In this category our focus shifts to serving healthier food to people who are extremely health conscious
and are suffering from various health problems/diseases (such as diabetes, high cholesterol, obesity)
and are forced to follow a lot of food restrictions. Keeping their restrictions in mind, we have devised
suitable product offerings for them. The age bracket for this category is: 50 +
Owners:
The owners of Sauté are a Limited Liability Partnership with Anuj Bakshi, Siddharth Shah, Shreet Shah,
Shyla Jha and Samah Visaria as equal partners. Under this partnership, we share profits, losses and
expenses equally.
Future of the Business and the Industry:
Demand for Organic products is expected to increase due to increasing cases of lifestyle diseases, exposure
to Health and Wellness products available globally as well as locally through modern retail channel and
communication and marketing initiatives by new entrants in India.
The Indian organic food market is growing at a steady rate of 40% annually, more so because of a growing
population with high disposable income and rising health consciousness.India is the second most willing
nation to pay a premium for food that is safe. Firms in India are finding that there is a rising consumption
of organic products by middle class Indians and this is creating a brand new market opportunity.
It is expected that 37% Indians will believe that the most important reason for consuming organic food is
because they think it is better for them and their family. 26% Indian consumers will consider organic food

3. better for the environment and hence will consume them. 15% Indians will consume organic food because
there is little or no use of pesticides in their produce.
Greater awareness of health issues drives purchase of food products with health supplements indicating
even greater room for growth. This market is expected to grow largely in the urban centers over the next 5
to 10 years where Health and Wellness products would see more attraction and could be available more
easily through established modern and traditional retail channels.
The global organic market currently stands at around 65 billion dollars and is growing at a robust annual
rate of over 5 billion dollars.

4. Sauté Company Description
Company Description:
Sauté is the first of its kind, organic and health restaurant in India. All ingredients used at Sauté for all its
preparations and dishes are organic in nature. It is located in 28, Aram Nagar 1,Versova, Andheri(West),
Mumbai- 400061.
Sauté aims to capitalize on the growing demand for Organic, Fresh and Healthy food. We are a restaurant that
is the first of its kind in India, to serve organic food that is essentially made of domestically grown products
that are chemical and preservative free. Our specialty lies, in not only our organic ingredients but also the
technique in which our dishes are prepared. Meal preparations at Sauté are innovative and healthier than
conventional preparations (for example: less oil for cooking, no deep frying)
The idea behind Sauté is to provide a great place to come and eat, enjoy a healthy meal, and leave happy and
the intent on coming back when hunger strikes again. Sauté will establish itself as a restaurant that serves
healthy, nutritious fast food. Initially the idea of such a place can seem intimidating to any person. Healthy
food has a bad reputation of being bland, bad tasting, or just plain revolting. However, our intention is to not
only make healthy food delicious but also appealing to any person who wants a meal that actually benefits the
body.
Concept Generation:
Organic Foods benefits the environment, the producers or farmers and the consumers. Organic foods carry
are grown without fertilizers or pesticides, thus adapting to the harsh environment by producing more
proteins and collect nutrients from the surroundings. They carry no risks of having toxic substances that can
be hazardous to human health when consumed. Organic Food can help prevent many illnesses that are
connected to the chemicals we obtain in our foods.
Thus capitalizing on the benefits of organic food, we at Sauté use only organic food products as ingredients. All
our products are organically grown, not through conventional farming.
Vision Statement:
To be a vehicle of consciousness in the market by creating a restaurant which inspires, promotes and supports
well-being for all its customers and the community.
Mission statement:
To provide value to our customers by offering great tasting, nutritious food and solutions for conscious and
healthy living along with quality service at all times.

5. Company Goals and Objectives:
 Constant commitment to customer satisfaction by offering high nutritious food with exceptional
quality service.
 Creating awareness and help improving health and well being of our customers and the community.
 Focus on constant and never ending improvement.
 Create a challenging and rewarding work environment that provides our employees with an
opportunity for personal growth as well as career advancement.
 Emphasis on an innovative approach to business.
 We wish to achieve is to break even and begin to make profit within the next 3 years.
Business Philosophy:
Sauté’s target market includes the following:
 Young professionals and College Graduates:
Professionals who are health conscious today and prefer healthier food options while eating out. The
age bracket for this category is: 18 to 30.
 Middle aged group:
From this category we target the upper middle class in Mumbai who are looking for healthier eating
out options for themselves, their families and their children. The age bracket for this category is: 30 to
50.
 Older age group:
In this category our focus shifts to serving healthier food to people who are extremely health conscious
and are suffering from various health problems/diseases (such as diabetes, high cholesterol, obesity)
and are forced to follow a lot of food restrictions. Keeping their restrictions in mind, we have devised
suitable product offerings for them. The age bracket for this category is: 50 +
Industry Description:
The Indian organic food market is growing at a steady rate of 40% annually, more so because of a growing
population with high disposable income and rising health consciousness.
The global organic market currently stands at around 65 billion dollars and is growing at a robust annual rate
of over 5 billion dollars.
Under the 11th Five Year Plan (2007-2012), the country targeted the development of five million hectares of
cultivable land into certified organic farmland by promoting a scheme to compensate farmers for the lower
yield of such crops.

6. The reason for emphasis on organic farming was its positive effects on biodiversity and effective soil
management that could go a long way in mitigating and even reversing the effects of climate change, as also
minimizing carbon emissions.
Weaknesses of the industry:
 Although organic farming is picking up pace in India, the sector has been jostling with lack of
awareness, knowledge and confidence about organic farming and food products among both farmers
and consumers.
 Research and development is another significant area which requires serious attention and the same
can be addressed by setting up research institutions aimed at improving different aspects of organic
production across India.
(source: The Associated Chambers Of Commerce and Industry Of India, International Competence Centre For
Organic Agriculture)
Thus looking at the above mentioned,Sauté will capitalize on the tremendous growth potential of the organic
food industry in the long term. Currently, it will reap all the benefits of being the first mover in this industry
and will help create awareness about the rising concern for health and wellness of individuals.
Industry Trends:
Changes in the industry (short term and long term):
 Increasing consumption of organic food is expected as the number of people who are health conscious
today is on a drastic rise.
 Increasing Competition is expected in the next few years as the industry is still at its development stage
in India and is projected to be a booming and an attractive market here.
 Government Regulations and certifications are expected to increase in this industry.
How will Sauté take advantage of changing industry trends?
1. First Mover advantage:
As Sauté is the first of its kind, Health and Organic restaurant in Mumbai it will capitalize on all aspects of
being the first in the industry. This will be a major factor that will help Sauté take advantage of industry trends.
Sauté will counter its future competition in the following ways:
 Sauté will be the most experienced in this industry thus allowing it to gain trust and confidence of its
customers. Trust and confidence of customers will be gained by maintaining the authenticity of our
product offerings and by delivering quality service. This will help Sauté build a loyal base of customers.
 As Sauté is the first in the industry, we will follow an “innovative approach” in product offerings,
service delivery and promotional techniques. Whereas, our competition will follow an “imitative
approach” of the same, thus leaving us with an advantage over them.

7. 2. Dynamic management:
At Sauté we will maintain a dynamic process of working. We will make regular changes in our
management activities, such as change promotional techniques, technological advancements, pricing
techniques will be in synchronization with our target market. Our dynamic functioning will help us
adapt to major changes in industry such as eating habits, increasing disposable income, etc.
Sauté’s core competencies and strengths:
 Offering customers food varieties with highest nutrition content such as minerals, vitamins and
essential fatty acids.
 Working towards constant improvement and innovation.
 Delivering exceptional quality service.
 Be open to change. Constantly reexamine the situation. Put measurable qualifications to our
growth and productivity.
 Strong ethical values: Emphasis on development and promotion of organic food thus helping the
environment and animals.
 Promoting the concept of ‘Living healthy’ in all possible ways.
Legal form of ownership:
We, at Sauté, will adopt a General partnership ownership format.
We are a partnership of 5 who will divide responsibility for management and liability, as well as the shares of
profit or loss will be done equally between all partners at Sauté.
We have chosen this form of ownership as it helps us in the following ways:
 A partnership is relatively easy to establish.
 With more than one owner at Sauté, the ability to raise funds is increased, because each partner can
contribute to the funds requires and also borrowing capacity of partners may be greater.
 A partnership may benefit from the combination of complementary skills of partners. There is a wider
pool of knowledge, skills and contacts that will help tremendously in the establishment of Sauté.
 The partnership format can be cost-effective as each partner specializes in different aspects of their
business.
 This form of ownership will provide us with moral support and will allow for more creative
brainstorming.

9. Sauté Products and Services:
Description of products or services:
Sauté is the first of its kind, organic and health restaurant in India. We serve organic food that is essentially
made of domestically grown products that are chemical and preservative free. Our specialty at Sauté is our
ingredients along with the manner in which we prepare our dishes. All food preparations at Sauté are done in
the healthiest manner keeping in mind, the needs and preferences of our target market.
Our Menu:
Our menu will essentially be chalked out by our chef and his team, keeping in mind the various common
health apprehensions and healthiest cooking techniques. At Sauté we have designed a special Menu
presentation strategy that will help us add value to our customers while choosing from our various food
offerings at Sauté. (Menu strategy further explained in Marketing Plan)
Factors affecting Competitive Advantage of Sauté
Level of Quality:
Sauté will ensure the quality of all its products (i.e the ingredients used) by recognized certification.
Sauté certified by international organic farming institution ECOCERT. We will ensure that all our fruits, grains
and vegetables come from guaranteed organic produce. All plastic packaging material used by Organic Garden
will be made of biodegradable plastic.
Emotional Quotient:
Sauté will constant highlight the benefits of organic products thus instilling a “feel good” factor among its
prospect customers. Customers will feel good about eating something that is pure food, healthy, and tastes
better than processed food and also the fact that they are contributing to the development of the
environment.
First Mover advantage as an “All healthy meals” Restaurant:
Sauté will be the first organic restaurant in Mumbai. Most restaurants contain just a few healthy items to
cover every corner of the market. Hence, Sauté wants to emphasize that there are just too many bad meals
being consumed by the public every day. The only way to thwart such an unhealthy diet is give no option but
a delicious meal that is good for a person. This will completely separate the restaurant from the fast food
stereotype and establish a unique trait.
Fresh food to eat:

10. Many places have the food shipped in frozen and already cooked. Reheating food is not an option at Sauté.
Fresh ingredients mean more delicious food and a sense that the restaurant actually cares for the health of
the customers. This benefits the business by making the customers feel important and in return will increase
the likelihood of returning to the restaurant to eat again.
Factors affecting Competitive Disadvantage of Sauté
No previous Business Models in the industry:
Sauté is at a competitive disadvantage here as it is the first of its kind in the industry. It cannot refer to
previous business models or strategies to refer to while building its base unlike its future competition will
have. Sauté cannot learn from mistakes of previous businesses.
Solution: Hence at Sauté, we will have to carefully measure all our moves before taking them.
Partners lack of experience in the industry:
All partners at Sauté are new to a restaurant business and possess no previous knowledge or experience in the
field.
Solution: All partners regularly update themselves with the required knowledge of the business in all aspects.
Risk of Authenticity:
Sauté may experience a high risk of authenticity or disbelief. As this is this is the first of its kind offering in the
industry, prospects may be apprehensive about the authenticity of our products.
Solution: Sauté will ensure the most respected licenses to maintain its standards and authenticity. It will also
devise a strategic promotional technique to position itself correctly in the mind of its consumers thus trying to
eliminate this risk.
High Dependency Levels:
Sauté suffers from the risk of high dependency on its suppliers. The number of organic product suppliers is few
in number in India currently; hence it increases our dependability on them.
Solution: Sauté will maintain good relationships with suppliers at all times. The growth in organic farming
industry will also help us eliminate this risk over time.
Lack of awareness among customers:
Solution: The primary method to promote these products is by creating awareness and educating consumers
on the various health benefits of organic food. Government is also taking various steps to promoted organic
farming that will help increase its awareness.

11. Sauté Marketing Plan:
Market Research: Primary
We conducted a survey keeping in mind our target market and estimated the following:
Frequency of our target market eating out in a week:
Frequency of eating junk food:
16%
62%
13%
9%
0-1
2-3
4-5
more than 5
41%
55%
4%
Yes, a lot
Ocassionally
Rarely

12. What health measures do you take?
Are you health conscious?
29%
7%
8%
7%
49%
Gym
Dietician
Health Doctor
Yoga
Any other fitness
activity
0
10
20
30
40
50
60
70
Yes No
%OfRespondents

13. Do you or any of your family members have any of the following?
Would you/ your family dine at a place that served health food without compromising a lot on
taste?
21%
13%
18%
22%
12%
14%
Obesity
Heart Disease
High Cholestrol
Diabetes
Alcoholism
Slow Metabolism
53.6
36.2
10.1
0
10
20
30
40
50
60
Yes maybe No

14. How much would you or your family be willing to spend per person at such a restaurant?
16%
48%
27%
9%
0-300
300-600
600-1000
> 1000

15. Marketing Plan
Market Research: Secondary
Food consumption patterns in India:
 Indian consumers are now increasingly becoming health conscious and are opting for organic products
acknowledged for their virtues.
 Rapid urbanization, rising incomes, changing lifestyles and dietary patterns and growing health
consciousness have triggered the growth of health & wellness foods in India. Higher incomes could be
expected to drive shifts in dietary patterns from basic subsistence foods to more value added food
categories like Health &Wellness products.
 India along with Ukraine is the second most willing nation to pay a premium for food that is safe (85%).
 More than half the Indian consumers (53%) will not eat food that has crossed its best before date even
if it looks & smells alright.
 78% of Indians regularly purchase iodine enhanced cooking salt. This purchase behavior is also evident
in Cholesterol reducing oils (51%), showing the shift towards healthier food supplements.
 In India, the preference for whole grain, high-fiber products is very high, owing to the habitual
consumption of wheat flour preparations.
Heath Disorders in India:
 With more sedentary living, higher work stress, rising pollution levels and growing consumption of
unhealthy fast food, lifestyle disorders / diseases are gaining prominence in India.
 Some of the widely experienced disorders include obesity, heart disorders and digestive disorders
diabetes.
 With growing concerns about lifestyle diseases, urban consumers are showing increasing preference of
low-fat, low-sugar / carbohydrate and low cholesterol products.
Demand for Organic Food in India:
 Firms in India are finding that there is a rising consumption of organic products by middle class Indians
and this is creating a brand new market opportunity.
 69 % Indians vouch for Organic food and agree that it is safer than conventionally produced food.
 It is expected that 37% Indians will believe that the most important reason for consuming organic food
is because they think it is better for them and their family.
26% Indian consumers will consider organic food better for the environment and hence will consume
them.

16. 15% Indians will consume organic food because there is little or no use of pesticides in their produce.
 Greater Awareness of Health Issues Drives Purchase of Food Products with Health Supplements
Indicating Even Greater Room for Growth.
 Indians Keen to Purchase Organic Foods for Their Children but Organic Foods Suffer from Poor
Availability and Premium Price Perception.
 87 % of Indian consumers who will purchase organic foods will be motivated by the perceived benefits
they can derive for their children’s’ health.
 Demand for H&W is expected to increase due to increasing cases of lifestyle diseases, exposure to
H&W products available globally as well as locally through modern retail channel and communication
and marketing initiatives by new entrants in India.
 This market is expected to grow largely in the urban centers over the next 5 to 10 years where H&W
products would see more attraction and could be available more easily through established modern
and traditional retail channels.
 Organic Haus, an all-organic brand that retails products sourced mainly from 18 German, Austrian and
European manufacturers, said it was aiming to open up to 30 stores across the country in next two
years.
Major issues in the Indian organic food industry:
 Though benefits of organic food are widely acknowledged, the overall low awareness will appear to be
hampering purchases.
 Credibility turned out to be the major consideration in this industry.
 Higher prices for organic products are still an impediment. If a household shifts completely to organic
food products, the extra spend comes to around 1,500 per month, according to organic producers.
Sources:
AC Nielsen Global Online Survey conducted on 15th
February, 2010.
AC Nielsen syndicate survey conducted on 20th
February, 2006.
Economic Times: 19 August, 2011.
Economic Times: 14 March, 2012.
“The health and wellness industry in India” Report by TATA.

17. Economics
Current demand in target market:
 Indian consumers are now increasingly becoming health conscious and are opting for organic products
acknowledged for their virtues.
 Organic Food is currently considered as a niche segment by the Indian consumers.
Trends in target market—growth trends, trends in consumer preferences, and trends in
product development.
As per the AC Nielsen Global Online survey on 15 February 2010:
 India along with Ukraine is the second most willing nation to pay a premium for food that is safe (85%).
 69 % Indians want to shift to Organic food and agree that it is safer than conventionally produced food.
According to RNCOS latest research report “Indian Organic Food Market Analysis”
 The country’s nascent organic food market is fast transforming into the world’s fastest growing organic
food market.
 It has been anticipated that the sector will post significant growth during 2011-2013, invariably
growing at a CAGR of 15%.
According to the Ac Nielsen Online survey in 2006:
 87 percent of Indian consumers who will purchase organic foods will be motivated by the perceived
benefits they can derive for their children’s’ health.
Growth potential and opportunity for a business of your size:
As per the AC Nielsen Global Online survey on 15 February 2010:
 It is expected that 37% Indians will believe that the most important reason for consuming organic food
is because they think it is better for them and their family.
 It is expected that 26% Indian consumers will consider organic food better for the environment and
hence will consume them.
 It is expected that 15% Indians will consume organic food because there is little or no use of pesticides
in their produce.
Hence, we believe in the success of our proposed business concept.

18. Barriers to entry and our strategies to overcome them:
 High capital costs:
The cost of capital is high in any restaurant business, especially in our case, when our offering is
completely new a lot of extra technological facilities such as efficient cold storage for organic
vegetables are required. In addition to which we have equipment costs, leasing structures, rent for
location of restaurant, etc.
Solution: At Sauté we will try to achieve our projected sales forecasts in order to overcome all high
capital costs by positive returns.
 High production costs:
As organic farming/ products are very different from conventional products, they differ on various
aspects including costs. The costs associated with using organic products and healthier supplements
while preparation of food increases our costs here.
 High marketing costs:
For any non conventional business concept to work or be recognized, the marketing costs associated
with it are very high. Even at Sauté, we will aggressively promote our restaurant in the beginning to
help us get the required footfalls to maintain them.
Solution: We will devise most low cost promotional techniques, such as mutually beneficial tie ups with
gyms, dieticians, etc in order to avoid high costs of marketing.
 Consumer acceptance and brand recognition:
One of the major risks we will suffer from at Sauté is authenticity or disbelief as we do not have any
strong brand name or any other factor of credibility above us.
Solution: Sauté will ensure the most respected licenses to maintain its standards and authenticity. It
will also devise a strategic promotional technique to position itself correctly in the mind of its
consumers thus trying to eliminate this risk.
 Training and skills:
Our chefs will have to been to given regular training in order to learn and adapt to the healthiest
cooking techniques prevalent.
How could the following affect your company?
 Change in government regulations:
Increasing government efforts to promote organic farming will help us increase awareness of organic
food in Mumbai which is essential in the Indian market as a whole. One of our current competitive
disadvantages is lack of awareness or the organic food industry and its benefits in India.

19.  Change in the economy
Changes in the economy such as rising disposable incomes and propensity to consume, growth in
target market size etc will benefit us tremendously as we are the first of this kind in the Indian market.
Our dynamic functioning will help us adapt to major changes in industry such as increasing target
market size, increasing disposable income, etc.
 Change in your industry
Change in our own industry could include higher competition which we will counter by the following:
- First mover’s advantage:
We will follow an “innovative approach” in all our product offerings, service delivery and
promotional techniques. Sauté will be the most experienced in this industry thus allowing it to gain
trust and confidence of its customers. Trust and confidence of customers will be gained by
maintaining the authenticity of our product offerings and by delivering quality service.
- Dynamic Management Process:
We will make regular changes in our management activities, such as change promotional
techniques, technological advancements, pricing techniques will be in synchronization with our
target market.

20. Product
Sauté Menu:
Sauté is a multi cuisine restaurant that serves an assortment of cuisines such as Continental, Italian and Indian.
Our chef will have great latitude in designing and producing the menu offerings. We will endeavor to procure
all the authentic ingredients necessary to hold true to the varied and interesting cultural recipes.
Some of our Dishes would include:
 Salads
 Soups/Broths
 Steamed items(momos, dimsums)
 Fruit salads
 Fresh Juices
Our menu will be designed in an innovating and interesting manner to enhance customer satisfaction and add
value to our offerings:
 3 Menu strategy:
We will be preparing a 3 Menu strategy with the help of our chefs. The basic idea will be to have
separate dishes for Breakfast (being healthier and heavier than the rest), Lunch (being moderate and
fun) and Dinner (being light and tasty)
 Menu design Strategy:
We have an innovative idea to design each of the three menus. Every menu will have three sections
with dishes ranging from the healthiest options to the “least healthy” options.
 Nutrition Tables: These will be provided for all dishes. It helps in comparison among various dishes.
 Salad bar: For the salad bar that we will open there will be a defined menu as well as a customization
strategy. Certain famous healthy salads as per our chefs’ expertise will be on the menu. And customers
will also be able to “make their own” salads as per their likes and dislikes of ingredients. There will be a
special attendant at the salad bar counter for this purpose.
Important features of our products/service:
 All ingredients at Sauté are organic, i.e made in a way that limits the use of synthetic materials during
production.
 Variety of healthy food offerings available to customers without compromising on taste.
 High Nutritional importance: customers are provided with nutrition tables and information for each
dish or preparation on tablet
 High ethical standards are maintained as Sauté promotes organic farming that is beneficial to both the
environment and animals.
Important benefits of our products/service:
 Sauté offerings provide the healthiest preparation of recipes also suitable for patients such as diabetes,
high cholesterol, obesity, etc

21.  Customers have the advantage of comparing dishes on nutrition content.
 Sauté offerings reduce risk of diseases such as cancer, obesity, Alzheimer’s and some birth defects by
using organic ingredients that are pesticide free.
 Sauté products will have great fresh taste is considered a bonus among the Benefits of Organic Food.
Unrefined provisions are fresher and have richer taste.
 Organic food offerings have higher minerals, vitamins and essential fatty acids.
 Safer food option for children.
Supplementary Services provided at Sauté:
1. Order taking:
Order Entry
 On site order fulfillment
 Telephone order placement
Reservations:
 Tables
2. Billing Elements:
 Invoices for Individual transactions
3. Payment Elements:
 Cash handling
 Credit/Debit card handling
 Tokens/vouchers
 Coupon Redemption
4. Counseling:
 Customized advice to customers
 Menu suggestions
5. Hospitality:
 Greetings
 Food and beverages
 Washrooms
 Waiting facilities and amenities
 Security
6. Safekeeping:
For Customers-
 Parking Facilities, Valet Parking for vehicles
 Security Personnel

22. For Products-
 Packaging of food during home delivery
7. Exceptions:
Special Requests-
 Medical or disability needs
 Dietary Requirements
 Children needs
Handling special Communication:
 Complaints, compliments and Suggestions via a feedback form
Problem Solving:
 Resolving difficulties that arise during service delivery
 Resolving difficulties caused by accidents, failures, etc
 Assisting customers who have suffered accidents or a medical emergency
Restitution:
 Refunds
 Compensation in kind for unsatisfactory service (such as a complimentary dish)

23. Customers
Sauté’s target market includes the following:
 Young professionals and College Graduates:
Professionals who are health conscious today and prefer healthier food options while eating out. The age bracket for
this category is: 18 to 30.
 Middle aged group:
From this category we target the upper middle class in Mumbai who are looking for healthier eating out options for
themselves, their families and their children. The age bracket for this category is: 30 to 50.
 Older age group:
In this category our focus shifts to serving healthier food to people who are extremely health conscious and are
suffering from various health problems/diseases (such as diabetes, high cholesterol, obesity) and are enforced with a lot
of food restrictions. Keeping their restrictions in mind, we have devised suitable product offerings for them. The age
bracket for this category is: 50 +
Characteristics of our target market:
 According to the Ac Nielsen Health and wellness Consumer Survey in June 2010: 38 % Indians believe that bad
food habits like consuming junk & oily food and adulterated food have an adverse affect on health and 36 %
believe that bad, irregular habits like consumption of alcohol/cigarettes and lack of exercise & nutritious diet are
factors contributing to poor health.
 There is a significant shift in the food palate and eating habits that is visible
across the country and across all income levels.
 69% of Indians are altering their diets to tackle obesity and associated diseases (diabetes and cardiovascular).
 Nutritional and wellness products have become affordable and accessible due to a rise in disposable income and
the advent of new retail channels. The urban middle class is increasingly opting for preventive cure over post-
diagnostic treatment.
 Rapid urbanization, rising incomes, changing lifestyles and dietary patterns and growing health consciousness
have triggered the growth of health & wellness foods in India.
Geographic locations:
We are looking at attracting our target population primarily from 2 districts, i.eAndheri (West) and Bandra.
Customer’s demographic profile:
Demographic
Variables:
Young Professionals Middle aged
Group
Older Aged Group

24. Age 18-30 30-50 50+
Gender Male, Female Male, Female Male, Female
Location Andheri(w), Bandra Andheri(w),Bandra Andheri(w),Bandra
Income
Level
Upper Middle Class Upper Middle Class Upper Middle Class
Social Class
or
Occupation
Tv actors, Dieticians,
Doctors, Middle
management
Middle
management
positions
Higher Management
positions, Retired
individuals
Education Graduates or Post
Graduates
Post Graduates Secondary Education

25. Competition
Saute’ is a health restaurant that uses the combination of organic products and specific cooking techniques to
produce very healthy dishes. Such a business model is the first of its kind in Mumbai on such a direct basis.
There have been numerous restaurants/eateries/cafes that have tried to promote the idea of health food.
However, these cannot be identified as competitors because all of them have incorporated the concept of diet
or health food in some part of their model (menus), while still predominantly catering to their original target
market, whichever kind it may have been.
This would mean that the competition we will be facing would either be with respect to organic products,
which we use for our final product, or with some of our concepts being the basic business model of other such
businesses (restaurants, cafes, etc)
As per the above understanding our major competitors are:
Indirect competitor:
ORGANIC GARDEN
Address: shop no. 2, Beach apartments CHS Ltd., Plot no. 25, J.P Road, Versova, Andheri(West), Mumbai-
400061.
Organic Garden is a retail store for purchase of organic products i.e. fruits and vegetables. It is a relatively new
concept as fruits and veggies are generally bought from local vendors and, more recently, from super/hyper
markets like Star Bazaar. However, with evolving trends citizens are becoming more and more aware of their
surroundings, environment and a forward-looking trend is being formed to go back to nature and use natural
products. This people are showing more interest in organic products (no pesticides/artificial injecting)
This chain of store was recently opened about 4 months ago keeping in mind the increasing population of
health conscience people.
Although these are our suppliers, they do come under the bracket of our competitors. The competition we will
be facing, though, is of the indirect kind. They would be competitors because, essentially, they provide the
same benefits that our products would provide (i.e. organic food/nutritious food at home as opposed to the
same at a restaurant)
However, the threat they pose is minimal as our business models are different since our final products and
customer experiences are not comparable. We promote the idea of eating healthy food outside, whereas,
they are aimed at getting local buyers to buy their products on a daily basis.
A more positive approach, which could be incorporated in our working, would be to look at each other as
promoters of our concepts. This is because, essentially, all their targets/ customers would also be interested in
our restaurant and vice-versa.

26. Another note on which our competition is eased out is that since they are our suppliers, we are also now part
of their customers.
Organic Garden is still to establish itself completely in the market.
Direct Competitor
SUBWAY:
Address: 3&4, Darya Darshan, JP Road, Versova, Mumbai- 400061, Maharashtra.
Subway is an American restaurant franchise that primarily sells submarine sandwiches (subs) and salads.
It has decades of experience in the food industry and enjoys a specific and very well established brand
position. It serves food as per the concept of eating fresh (derived healthy) which is even evident from its
tagline “Eat fresh”
Subway has been known for years as being one of the few “healthy” options to eat out for the figure
conscience and health conscience youngsters.
Although their business model is based on similar parameters as Sauté, there are a number of factors that
differentiate us completely. They are:
1. Subway mainly provides only a particular type of sandwich and salads. They provide only a small part of our
concept (menu), which is salad. Sauté will provide a salad bar for its customers with a variety of healthy
options to pick from. This makes Subway a competitor for only a part of the product.
Although, the concept of a salad bar is not very new as many restaurants have had it for a while (Eat around
the corner), but this does not make them our competitors as our business grounds are totally different and
diverse.
2. Subway’s target audience comprises mainly of the youth. Our target encompasses a lot more than just
health conscience youngsters/professionals. Thus, in this respect too, Subway becomes a competitor for only
a part of the target market.
3. Another very important point of difference is that of the ambience, projected image, feel of the
restaurants. Subway has positioned itself as a very fast-paced eatery. It is considered more as a hangout joint
than a diner. Its products are also such that they could even come under the on-the-go foods bracket and this
practice is in place as well. Subway does not position itself as a restaurant where customers come for a quiet
family dinner. Sauté will position itself as a full-fledged dining experience where one could also come for a
quick bite. The restaurant ambience/image, though not too formal, will not be as casual as Subway.
4. Subway practices a self-service process of delivering their product, whereas, Sauté is a more formalized, sit-
down dinner.

27. 5. Subway has always enjoyed as the image of the healthy or nutritious food. However, this is mainly when it is
compared with the other available options of eating outside which are of course, mostly not healthier. With
Sauté now coming in the market this will change. Sauté will be the healthier place to eat at. Subway
sandwiches and salads, though said to be healthy, generally contain cheese, a lot of meat, various breads and
a variety of not-so-healthy sauces. Of course, these ingredients are optional and are incorporated in the food
as per instructions from the customer, but that is irrelevant at this stage. Our target market includes the older
generation that eats healthy out of no choice and many restrictions. And so Sauté will provide food that is
actually for such people and no kind of unhealthy food will even be an option for customers. This of course will
be done keeping in mind factors like taste, appeal to the customer and actual possibility of such dishes.
The above differences are not only to draw out a line of differentiation between Subway and Sauté but, also to
portray on what basis we can minimize the threat posed for Sauté by Subway.
Competitive advantages Of Sauté:
 A platter of healthy varieties of food will be available to our customers,
 We will position ourselves unlike any other restaurant, the only “all healthy meals” restaurant in
Mumbai.
 Huge base of target market unlike competitors.
 Customers have the advantage of comparing dishes on nutrition content before consumption.
 Instilling a “feel good” factor among its prospect customers by healthy food consumption and
contributing to the development of the environment.
Competitive Disadvantages of Sauté:
 No international or strong domestic brand name /credibility factor.
 Lack of awareness of organic food products among customers in current industry. Hence, effective
promotion tolls and high marketing costs to be incurred.

28. Promotion
Sauté is a niche concept. It provides healthy food made with organic vegetables mainly to cater to the needs
of health conscience people. This might sound innovate and different, but has its limitation of being a very
unconventional concept. This could have something to do with the authenticity of the idea. People should be
convinced that this is beneficial for them and that it is actually what it claims to be.
Convincing potential customers is the key to converting them in repeat customers. This means our promotion
of Sauté is extremely important and should be carried out exceptionally well.
Companies today are using innovative ways to promote and advertise. Sauté will also use some such tactics.
The basic idea around which our promotional tactics will revolve (before start up) is to create hype. This has its
pros and cons. We do not want to create hype that will lead to high expectations and in turn low reviews. Nor
do we want to be depicted as a snobbish diner for high-end customers only. The kind of buzz we want to
create in the suburbs is that of some social value. Sauté should be sought after. We want everyone to be
curious and awaiting its opening. Special care will be taken to ensure the timing of our promotions as we do
not want to start so much in advance that it fizzles out by the time we arrive in the market.
Various methods for promotion are:
Teasers:
Before we start with anything directly promoting Sauté there will be indirect teasers that do not completely
reveal the idea of the restaurant but just make the customers think about what this new brand is. There have
been a couple of such campaigns that have created a lot of curiosity in minds of the audience as to what is
being advertised. Care will be taken not to over promote or frustrate the population. Method of this type of
advertising will be outdoor media.
Social Media:
This is the most effective form of advertising or creation of awareness especially when it comes to the youth
segments. We will be creating our own Facebook and Twitter pages and spreading the word through
immediate friends and family. This method of promotion is one of the most inexpensive while it still gets
people talking about your product.
Magazine articles:
A tailor-made write-up about the upcoming restaurant with certain insights from our head chefs, just a few
days before the opening night. Articles have their advantages over ads as they are more realistic and reliable
in this respect. Food Magazines will be publishing these paid-for pieces as per our timing convenience.
Newspaper Ads:
Although articles have their benefits we will need to use some measure to spread the word to the population
at large. This will provide a huge platform for Sauté. Newspapers – iDiva, Mumbai Mirror, Mid-day

29. Tie-ups:
Tie-up with Organic Garden (our supplies) to promote our restaurant in return of full yearly supply contract
from them as well as mention of their products in our restaurant (promotion for them) Promotions will vary
from time to time- Pamphlets, Word of Mouth, Discount coupons.
Our next Tie-up is going to be with Gold’s Gym/ Sykz Gym. This is again going to be a low cost tie up, as it will
be based on a mutually beneficial relationship. This tie up will help the gym by providing its customers more
value. Customers will be able to avail of special discounts or offers at Sauté. Sauté in return will benefit by
attracting foot falls and will add to the restaurants customer database.
Brand ambassador/endorser:
Celebrity nutritionist of renowned fame, RujutaDivekar will endorse our brand and regularly tweet about it
(pre start-up phase)
Word-of-Mouth:
This will play a big role in our promotion. As per custom and tradition, opening night of our restaurant will be
an invitees-only affair. Our celebrity endorser along with a couple of other well known TV personalities of
personal contact will be present to inaugurate the restaurant. The event will be covered by a leading
newspaper and will be tweeted about by our guest’s thus ensuring good social media coverage.
Early bird Offers:
We at Sauté will have early bird offers for the first 2 weeks in the restaurant to attract foot falls. These offers
would include free meals, special discounts during breakfast/lunch, 50% off on membership of our gym
associate, etc.
Website:
This will be an on-going promotional activity that will be started after the initial few days of our restaurant.
Promotional Budget
Before startup
Considering all our planned strategic promotional techniques we would like to execute, we have allocated a
budget if INR 200000 for start up promotions. This has been accounted for in the startup expenses budget.
Ongoing
Considering all our planned strategic promotional techniques we would like to execute, we have allocated a
budget if INR 100000 for our ongoing promotions. This has been accounted for in the profit and loss account.

30. Pricing:
Our offerings at Sauté will be priced moderately. Our prices will be affordable to our target group. Each
appetizer will be priced at an approximate of INR 200-300. Whereas, each main course preparation will be
priced at an approximate of INR 300-400.
Each dish in the menu is priced to maximize sales and profitability. For instance, high-margin-high-moving
dishes will be promoted by the restaurant by giving a “meal of the day/ hot picks list”, and low-margin-low-
moving dishes will be eventually taken off the menu, which we will have an idea of in the first few months of
the business.
So this means, that for some dishes, the food cost is as low as five per cent (steamed rice, for example), while
in others it is as high as 50 per cent (Seafood). While it may seem like highway robbery to charge Rs70 for a
bottle of water or Rs200 for a small bowl of steamed rice, these low-food-cost dishes are necessary to keep
the restaurant running. If these low-food-cost-high-priced items were not around, sea food on the same menu
would cost as much as three times more, and would have no takers.
Hence, we have not decided a fixed % of profit margin that is constant across all dishes at
Sauté.
Our pricing strategy in relation to competitive analysis:
Yes, our pricing strategy fits in synchronization with our competitors (i.e both direct and indirect) prices.
Our pricing strategy in comparison to our competitors has been explained clearly below.
Comparison of competitor’s prices:
As our direct competitor that is, Subway is priced affordably just like us. We will face competition from
Subway but only certain product categories such as salads and hence this pricing tactic has been adopted by
us. This price war can be won by us as our offering is healthier in all aspects than our competitor. Hence, if one
is paying the same price a healthier option will definitely be more attractive to him.
Whereas, our indirect competitor that competes with us only on our product ingredients and currently exists
on a completely different distribution channel is priced much higher. The cost of organic products at their
outlets are almost double than conventional prices of fruits, vegetables, etc.
We have priced our dishes much lower than the cost of than their individual product rates in order to
capitalize on our customers to choose this format or organic food consumption over theirs. Another
advantage of our pricing technique is that it includes the cost of a complete healthy meal unlike our
competition here.

31. Important of price as a competitive factor:
 As per the Ac Nielsen Global Online Survey 2010:India along with Ukraine is the second most willing
nation to pay a premium for food that is safe (85%).
Sauté has 3 different target groups of customers. Of these groups, only young professionals are expected to
make their decisions based on price. Our value proposition is exclusive and despite that we are not going to be
charging a high premium for it, in order to cater to all our target groups effectively specially focusing on young
professionals.
As mentioned above, we do not face too much direct competition in the market, our pricing strategy is
appropriate in order to achieve the expected sales and will help us correctly position ourselves in the mind of
the consumer.
Credit Policies:
As Sauté is a restaurant, we deal mainly in cash transactions but also provide our customers with an option of
paying by credit/debit cards.
Customer Service provided at Sauté:
1. Order taking:
Order Entry
On site order fulfillment
Telephone order placement
Reservations:
Table
2. Billing Elements:
Invoices for Individual transactions
3. Payment Elements:
Cash handling
Credit/Debit card handling
Tokens/vouchers
Coupon Redemption
4. Counseling:
Customized advice to customers
Menu suggestions
5. Hospitality:
Greetings
Food and beverages
Washrooms

32. Waiting facilities and amenities
Security
6. Safekeeping:
For Customers-
Parking Facilities, Valet Parking for vehicles
Security Personnel
For Products-
Packaging of food during home delivery
7. Exceptions:
Special Requests-
Medical or disability needs
Dietary Requirements
Children needs
Handling special Communication:
Complaints, compliments and Suggestions via a feedback form
Problem Solving:
Resolving difficulties that arise during service delivery
Resolving difficulties caused by accidents, failures, etc
Assisting customers who have suffered accidents or a medical emergency
Restitution:
Refunds
Compensation in kind for unsatisfactory service (such as a complimentary dish)

33. Proposed Location
The proposed location we have given in our Plan for Sauté is Versova. The reason for this choice of location is
that Versova as an area is developing into a youth as well as high end consumer junction. The entire Versova
Beach stretch already has a lot of footfalls because of the existing restaurants. There are places like CCD,
Domino’s, Bru World Café, Chai Coffee, Cheelizza, WTF for the young college going crowd. Our competitor,
Subway, is also located there. It is beneficial for us to be located near them be For the upper middle class
bracket of families and young professionals there are trendy restaurants like Ivy, Fil Fil, Mia Cucina and the
very popular, recently opened Café Mangi. Organic Garden(supplier) has also opened a branch there. Other
famous spots on the stretch include Sancha, Hakim’s Alim, Aura Spa and other such upcoming, forward-
looking businesses. This shows a rising trend in that area to splurge on high-end lifestyle.
What we are aimed at doing is taking percentage of the share of wallet assigned by customers to spend on
these places. This is location was ideal not only this respect but also because rent rate of Versova is relatively
lower when compared to other posh locations like Bandra. Once we establish ourselves and our position in the
area we can think of moving to places like Juhu, Bandra, or even South Bombay side.
If customers come to Sauté, valet services for their cars will be available to them. Versova’s Aaram Nagar is an
open ground space. Although it cannot be used as a parking lot some space will be available to us to station
customers’ cars there. On the Versova beach road as well parking is not difficult for customers who choose to
park themselves. Public transport to Versova is also very easily available which highlights its accessibility.
As per the list of restaurants mentioned right above Versova has an established image of a fun and trendy ,
youth centric, upper middle class area for recreation. This completely goes with the image we want to build
for and associate with Sauté.

34. Distribution Channel:
We will sell our products through two main channels that are-
Retail outlet:
Sauté will be located in 28, Aram Nagar 1, Versova, Andheri West, Mumbai 400061.We currently have just one
retail outlet in the city.
Direct Channel:
Sauté will also operate through one direct channel of distribution that is Telephone.
We will also provide the facility of home delivery of our food offerings thus including the above mentioned
channel of distribution.

35. Sales Forecasts:
Unit Sales Meals Drinks
Total
sales
1 3300 900 4,200
2 3391 925 4,316
3 3484 950 4,434
4 3580 976 4,556
5 3678 1003 4,681
6 3779 1031 4,810
7 3883 1059 4,942
8 3990 1088 5,078
9 4100 1118 5,218
10 4213 1149 5,361
11 4328 1180 5,509
12 4447 1213 5,660
Year 1 46174 12593 58,767
Year 2 48483 13223 61,705
Year 3 47756 13024 60,780
Year 4 49905 13610 63,515
This the sales forecast for the first 4 years of the company coupled with the breakup of the first year. We have
made the following assumptions from our research –
1. The restaurant will serve 20 tables everyday with 5 unit meals per table. This leads to 110 unit meals a
day.
2. The restaurant will serve 30 drinks a day.
3. For the first year, the unit sales will increase by 2.75% every month.
4. For the second year, the unit sales will increase by 5% for that year.
5. For the third year, the unit sales will decrease by 1.5% for that year.
6. For the fourth year, the unit sales will increase by 4.5% for that year.

37. Management and Organization
The company has 5 partners. Each partner has distinct roles and functions.
Anuj Bakshi – Operations
Samah Visaria – Liaison
Shyla Jha – Marketing
Shreet Shah – Operating Finances
Siddharth Shah – Auditing
In case a partner is not present, any other partner can assume his/her responsibility.
Organizational Flowchart for the Kitchen
Kitchen
Manager
Head Chef
Asst Chef
Asst Chef
Asst Chef
Purchase
Manager

38. Organizational Flowchart for the serving area
Key Advisors
 Attorney – Ms Apeksha Parekh
 Accountant – Yogesh D. Shah
 Insurance agent – Gautam Doshi
 Banker – Excellent Co-operative Bank
 Consultant or consultants - Strategic Advisory Management
 Mentors and key advisors – Mr Sandeep Bakshi
Mr Sandeep Shah
Mr Shailesh Shah
Floor
Manager
Waiting
Staff
Cleaning
Staff
Delivery
Staff
Security Valet

39. Start Up Funds Required
Particulars Rate Qty Amount
INTERIOR
DESIGNING 1050000
INTERIORS
Tables 1800 20 36000
Chairs 1375 95 130625
Tablecloth 875 45 39375
Dining Sets 5000 45 225000
Extra Glasses 250 100 25000
Serving Sets 2500 45 112500
KITCHEN
Kitchen Counters 500000
Industrial Fridge 80000 2 160000
Industrial Oven 17500 3 52500
Storage 150000
Kitchenware 50000
Appliances 125000
STAFF
Staff Clothes 500 15 7500
PROMOTIONS 200000
LEGAL FEES
Licenses 300000
Security Deposit 1000000
Bikes 17500 2 35000
Funds Required 4198500
This is the quantum of startup funding required. It envisages all the expenses required to bring the restaurant
to just before functional and operational level. The funding will be explained in the latter stages.

40. Personal Financial Statement
Anuj Bakshi
Particulars Amount
Cash at hand 150,000
Equity 575,000
Property 1,200,000
Bonds 450,000
Total 2,375,000
Samah Visaria
Particulars Amount
Equity 675,000
Gold 940,000
Cash at bank 100,000
Total 1,715,000
Shreet Shah
Particulars Amount
Cash at bank 350,000
Cash at hand 100,000
Equity 300,000
Mutual Fund 250,000
Gold 280,000
Total 1,280,000
Shyla Jha
Particulars Amount
Cash in hand 150,000
Gold 740,000
Cash at bank 500,000
Property 450,000
Total 1,840,000
Siddharth Shah
Patriculars Amount
Cash at bank 2,500,000
Car 190,000
Total 2,690,000

41. The given above is the personal financial statement of all the partners. Their combined networth is Rs
9,900,000. For the purpose of funding the startup, their assets and networth is the primary source of money.
Any additional sources of finance will be sourced later if and when required. Currently all partners will
contribute INR 900,000 towards initial capital to form a LLP
20%
20%
20%
20%
20%
Start Up Funding
Siddharth Shah Anuj Bakshi Samah Visaria Shyla Jha Shreet Shah

42. Sales Forecasting
Unit Sales Meals Drinks Total Sales
Month 1 3,000 900 3,900
Month 2 3,083 925 4,007
Month 3 3,167 950 4,117
Month 4 3,254 976 4,231
Month 5 3,344 1,003 4,347
Month 6 3,436 1,031 4,467
Month 7 3,530 1,059 4,589
Month 8 3,627 1,088 4,716
Month 9 3,727 1,118 4,845
Month 10 3,830 1,149 4,979
Month 11 3,935 1,180 5,115
Month 12 4,043 1,213 5,256
Year 1 41,976 12,593 54,569
Year 2 44,075 13,223 57,298
Year 3 43,414 13,024 56,438
Year 4 45,368 13,610 58,978
This the sales forecast for the first 4 years of the company coupled with the breakup of the first year. We have
made the following assumptions from our research –
7. The restaurant will serve 20 tables everyday with 5 unit meals per table. This leads to 100 unit meals a
day.
8. The restaurant will serve 30 drinks a day.
9. For the first year, the unit sales will increase by 2.75% every month.
10. For the second year, the unit sales will increase by 5% for that year.
11. For the third year, the unit sales will decrease by 1.5% for that year.
12. For the fourth year, the unit sales will increase by 4.5% for that year.

43. Revenue Forecasting
Revenue Meals Drinks Total Sales
Month 1 1,200,000 135,000 1,335,000
Month 2 1,233,000 138,713 1,371,713
Month 3 1,266,908 142,527 1,409,435
Month 4 1,301,747 146,447 1,448,194
Month 5 1,337,546 150,474 1,488,019
Month 6 1,374,328 154,612 1,528,940
Month 7 1,412,122 158,864 1,570,986
Month 8 1,450,955 163,232 1,614,188
Month 9 1,490,857 167,721 1,658,578
Month 10 1,531,855 172,334 1,704,189
Month 11 1,573,981 177,073 1,751,054
Month 12 1,617,266 181,942 1,799,208
Year 1 16,790,565 1,888,939 18,679,503
Year 2 17,630,093 1,983,385 19,613,478
Year 3 17,365,642 1,953,635 19,319,276
Year 4 18,147,095 2,041,548 20,188,644
From the Sales Forecast, we have made the following Revenue Forecast. For the purpose of the revenue
forecasting, we have made the following assumptions-
1. Unit Meal price is INR 400
2. Unit Drink price is INR 150
3. The prices of units do not increase for the first 4 years.

45. Profit & Loss Account for the First Year of Business
Months 1 2 3 4 5 6 7 8 9 10 11 12
Sales 1,335,000 1,371,713 1,409,435 1,448,194 1,488,019 1,528,940 1,570,986 1,614,188 1,658,578 1,704,189 1,751,054 1,799,208
COGS 534,000 548,685 563,774 579,278 595,208 611,576 628,394 645,675 663,431 681,676 700,422 719,683
Gross Margin 801,000 823,028 845,661 868,916 892,812 917,364 942,591 968,513 995,147 1,022,513 1,050,632 1,079,525
Overheads
Administrative
Salaries 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Telephone 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Rent 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000
Electricity 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000
Water 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Maintenance 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
Professional Fees
Selling &
Distribution
Advertising &
Promotion 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Delivery Charges 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000 12,000
Total Expenses 567,000 567,000 567,000 567,000 567,000 567,000 567,000 567,000 567,000 567,000 567,000 567,000
Net Income 234,000 256,028 278,661 301,916 325,812 350,364 375,591 401,513 428,147 455,513 483,632 512,525

46. Net Income year for the first
0
100,000
200,000
300,000
400,000
500,000
600,000
1 2 3 4 5 6 7 8 9 10 11 12

47. Profit and Loss Account for 4 years
Particulars Year 1 Year 2 Year 3 Year 4
Sales 18,679,503 19,613,478 19,319,276 20,188,644
COGS 7,471,801 7,845,391 7,727,711 8,075,457
Gross Margin 11,207,702 11,768,087 11,591,566 12,113,186
Overheads
Administrative
Salaries 2,400,000 2,400,000 2,400,000 2,400,000
Insurance 20,000 20,000 20,000 20,000
Telephone 60,000 60,000 60,000 60,000
Rent 2,400,000 2,400,000 2,400,000 2,400,000
Electricity 300,000 300,000 300,000 300,000
Water 120,000 120,000 120,000 120,000
Maintenance 180,000 180,000 180,000 180,000
Professional Fees 500,000 500,000 500,000 500,000
Financial
Depreciation 164,100 164,100 164,100 164,100
Selling &
Distribution
Advertising &
Promotions 1,200,000 1,200,000 1,200,000 1,200,000
Delivery Charges 144,000 144,000 144,000 144,000
Total Expenses 7,488,100 7,488,100 7,488,100 7,488,100
Net Income 3,719,602 4,279,987 4,103,466 4,625,086
Tax 1,115,881 1,283,996 1,231,040 1,387,526
EAT 2,603,721 2,995,991 2,872,426 3,237,560

48. Profits for the First 4 Years
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
1 2 3 4

49. Break Even Analysis
Direct Costs
COGS 31,120,361
Indirect Costs
Salaries 9,600,000
Rent 9,600,000
Electricity 1,200,000
Water 480,000
Depreciation 656,400
Professional Fees 2,000,000
Maintenance 720,000
Advertising & Promotions 4,800,000
Delivery 576,000
Start up expenses 4,198,500
Telephone 240,000
Insurance 80,000
Total Cost 65,271,261
Average Sales Price per
unit 342
Average Cost per unit 287
Break even Point 190,680
The restaurant will break even at 190,680 unit sales. This will take place in the fourth year of operations.
Break Even Analysis Calculations:
Average Sales Price per unit = Revenue of Unit Meals + Revenue of Unit Drinks
Total Unit Meals + Total Unit Drinks
Average Cost per unit = Direct Cost + Indirect Cost___
Total Unit Meals + Total Unit Drinks
Break Even Point = Total Cost_________
Average Sales Price per unit