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PROJECT FEASIBILITY REPORT ON
MULTI-CUISINE RESTO
A projectSubmitted in the partial fulfillment of the requirement for the
award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
BY
SOHINI MITRA
(BBA/3503/09)
DEPARTMENT OF MANAGEMENTBIRLA INSTITUTE OF TECHNOLOGY
MESRA-835215
KOLKATA EXTENSION CENTER
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CERTIFICATE OF APPROVAL
The foregoing thesis entitled “PROJECT FEASIBILITY
REPORT ON MULTI-CUISINE RESTO, is hereby approved
as a certificate study of research topic and has been presented
in satisfactory manner to warrant its acceptance as
prerequisite to the degree for which it has been submitted.
It is understood that by this approval, the undersigned do not
necessarily endorse any conclusion drawn or opinion expressed
therein, but approve the thesis for the purpose for which it issubmitted.
(Internal Examiner) (External Examiner)
(Chairman) Head of Department
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DECLARATION CERTIFICATE
This is to certify that the work presented in the thesis entitled “PROJECT
FEASIBILITY ON MULTI-CUISINE RESTO” in partial fulfillment of the
requirement for the award of Degree of Bachelor Of Business Administrations of
Birla Institute Of Technology Mesra, Ranchi is an authentic work carried out under
my supervision and guidance.To the best of my knowledge, the content of the thesis
does not form a basis for the award of any previous Degree to anyone else.
Date: (Guide’s name &
Signature)
Designation:
Department:
Head Dean
Department of management (Under Graduate Studies)
Birla Institute of Technology Birla Institute of Technology
Mesra, Kolkata Extension center
Mesra, Kolkata Extension center
Acknowledgement
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I would like to acknowledge my teacher Mrs.Sraboni Dutta for
giving me the opportunity to do such a wonderful project feasibility
report It was her perspective guidance, constant encouragement,constructive criticism and affection which helped me to complete
the project. I would also like to thanks my faculty-in-charge Mr.
R.T. Goswami to provide me an opportunity to do this project. I
would also like to sincerely thank our librarian for providing me
with the right kinds of books to refer to. Also I would like to thank
the almighty and my family for the support and encouragement to
complete this project.
Sohini Mitra
CONTENTS
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CHAPTER 1-EXECUTIVE SUMMARY 6
CHAPTER 2-COMPANY DETAILS 8
CHAPTER 3-OPERATIONAL DETAILS 13
CHAPTER 4-HUMAN RESOURCE PLAN 14
CHAPTER 6-MARKETING PLAN 15
CHAPTER 7-FINANCIAL PLAN 19
CHAPTER 8-CONCLUSION 24
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MULTI – CUISINE RESTO
(An Organic Restaurant)
EXECUTIVE SUMMARY
The food service business is one of the largest industry in the country. In the past five years
the restaurant industry has out-performed. The Characteristics that influence the decision to
purchase food away from home are income, age, and family composition
There are a large number of restaurants in the city. Many of them have a very good
business in the market, Since these restaurants in the near by locality are specialized either
by offering Chinese, snacks & Indian items. So in order to attract the customers I am goingto start a restaurant which will have different cuisines e.g Euoropean, Chinese Japanese,
Indian, Thai, Middle Eastern and Mediteranean cusine based upon organic products.
This concept for Multi-cuisine revolves around several key words: Quality, innovation,
Value, Freshness and Service.
This restaurant will be a superior, full service restaurant, located in the heart of the town,
serving snacks, lunch and dinner service . This new restaurant will give the opportunity tooffer , visitors and businesspeople a unique and welcome alternative in casual dining.
The View- The area of Multi Cuisine Resto will create a community atmosphere as a good,
royal class interior and Comfortable furnishings.
Menu-The menu will be inspired from different countries' specialties,You can get Swedish
specialties like herring, gravlax and meatballs, or you can go a little bit more Internationaland choose a red curry chicken with basmati rice, or an Asian grilled shrimp with spinach,tofu and black bean sauce. We will also have a special pasta dish entree every day .
However, it is the strategy of Multi-Cuisine Resto to give a perception of higher value
than its competitors, through its food, service and entertainment.
Manpower-We will hire the best people available, training, motivating and encourage them,
and thereby retaining the friendliest most efficient staff possible. Our management team is
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comprised of individuals whose backgrounds consist of 20 years experience in food,
restaurant and hotel, management, finance, marketing, art and motion pictures.
Financial Overview: The total capital requirement to start this new business is Rs.23,00,000,as a sole owner of this firm the Plan is being submitted in order to secure a
Business loan for Rs. 15,00,000.
INTRODUCTION
Multi-cuisine Resto is designed to create a communityatmosphere as a good, old fashioned, friendly restaurant. A
priority of Multi-cuisine resto will be serving fresh, healthful
fare with all selections made on the premises from "scratch."
To keep food costs down, the menu will be simple, yetcreative with many interchangeable ingredients. Foods will
come from local and regional suppliers whenever possible,
with a preference for organically grown products
OBJECTIVES
The objective of the project is to study the feasibility of the restaurant that I am going to
start.For studying the feasibility of the restaurant Marketing plan,Operational plan,Human
Resource plan,Marketing plan & Financial plan of the business is made. Also the
profitability and risk analysis of the project is done by making a projected Profit & Loss
account,Projected Balance Sheet.
SWOT ANALYSIS
A SWOT analysis will be developed from the competitive analysis and
market data to identify the strengths, weaknesses, opportunities, and
threats facing the restaurant.
Strength:• The strengths of this restaurant come from a combination of the
menu and the building itself. By offering a variety of food, Multi-
cuisine resto can appeal to multiple tastes and bring in more customers. Whether someone is looking for a herring, gravlax , a salad, or pasta they will be able to choose
from a selection that leaves him/her satisfied. Not only is the variety of the menu a
notable strength, but the nutritional value of these items is as well.
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Weakness:The weaknesses of this business rest in the facts that this is a brand new, unknown business
and that organic food can be quite expensive when compared to other conventionalcounterpart. These weaknesses can be overcome, but the key to achieving this lies in the
marketing of the restaurant
Opportunities:Various opportunities exists that can make multi-cuisine resto – a successful restaurant
There are many demographics that exist within these groups, the most important being the
student population-they prefer wide variety of food specially light snacks, Italian dishes ,
Chinese & deserts etc. all these can be acquired in one place.The largest opportunity for success lies in the growing health conscious attitude of Indians,
who are in search of nutritional foods.
Threats: While there are only a few threats , they must all be handled
Strategically or the business may fail such as Competition from pre-established units and
Increased price.
COMPANY DETAILS
The business that I am going to start is named as Multi-Cuisine Resto,as the name suggests
‘Multi-Cuisine’ will offer menu , inspired from different countries' specialties and Organicfood which is not grown in cocktail of chemicals that means chemical fertilisers or
chemical pesticides. Our restaurant will be located in the heart of the cityRajarhat,Newtown. It will be a sole-proprietorship firm and I will be the sole-owner of thisrestaurant. Major products of the restaurants will be veg and non-veg items,including a
wide variety of dishes ranging from Indian to Chinese,Mexican to Spanish,Italian to Thai
and lots more.We will also be offering a wide range of desserts & beverage items,such as
tea,coffee,juice etc. Positions to be filled include cashiers, line cooks, dishwashers/kitchen aid,
and chefs.There will be a manager approving all hires and financial
decisions. Assistant managers may be needed eventually to handle personnel, most day today finances, and more importantly, the customers during the manager’s absence.
MISSION
The company's goal is that of a multi-faceted success. Our first responsibility is to the
financial well-being of the restaurant. We will meet this goal while trying to consider;
1) the effect of our products on the health and well being of our customers (and our staff)
2) the impact that our business practices and choices will have on the environment, and
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3) the high quality of attitude, fairness, understanding, and generosity between
management, staff, customers, and vendors.
Awareness of all these factors and the responsible actions that result will give our efforts asense of purpose and meaning beyond our basic financial goals.
Multi-cuisine Products & Services
Price
•
Vegetarian meals: INR 250/-• Non-vegetarian meals: INR 350/-
• Breakfast (additional): INR 75/-
• Tea & Coffee: INR 25/-
• Aerated drinks/mineral water: INR 25/-
• We provide receiving services free of cost, but drop to destinations are as per
distance.
Mode of payment:
• We accept payments by Credit Cards (Visa/MasterCard) at the property. For payments by credit card, a service charge of 2.5% is applicable. Cash payments are
more than welcome.
Menu: Initial start-up sample menu:-
Indian Cuisines
Indian cuisines have been world wide famous for it's rich taste, aroma and health benefits.
We offer sumptuous Indian cuisine, which includes different varieties like
• Chola Bhatura
• Matar Paneer • Kadhi Pakoda
• Appam
• Idiappam• Dosa
• Idli Sambhar
• Pav Bhaji etc
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Chinese Cuisines
The popularity of Chinese Cuisine is world wide known. We have a team of cook, which isspecialized in preparing these Chinese cuisine like various soups and dishes which
includes
• Hot And Sour Soup
• Tong Sui (Tangshui)
• Noodle Soup
• Fried noodles
• Chicken Fried Rice
• Sweet and Sour Sauce
• Vegetable Chow Mein
• Szechuan Chicken
Continental Cuisines
The yummy continental cuisine are true specialty of our restaurant. Our
platter of continental cuisine includes light food, which you can enjoy any
time of the day. Perfect for breakfast, lunch, dinner, or as an in-betweensnack, we offer variety in our category of continental cuisine which includes
• Russian Salad
• Corny Mushrooms
• Caribbean Chicken
• Grilled Chicken
• Chicken
• Mushrooms In Tomato And White Wine Sauce
• Cheese Bread Rolls
• Corn Toast
• Lemon Chicken
• Low Fat Chicken etc.
Thai Cuisine
Thai Cuisine is the new taste of the ever shrinking world, the taste and the variety
offered by Thai cuisine is unparalleled to any other in the world. We help our client in designing the perfect menu for the Thai Cuisine, it includes, thai
delicious sea food like
• Thai snacks
• Thai non veg
• Thai Rice with multiple sauces
• Khao Tom
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• Khao Soi
• Thai Curry
European Cuisine
• Bread Puddings
• Butter Pudding
• Black Puddings
• White Puddings
• Roast Potatoes
Italian Cuisine
• Chicken Parmigiana
• Lasagna
• Spaghetti With Tomato Sauce
• Pasta
• Chicken Saltimbocca Connecticut Pasta
Keys to Success
The combination of organic products, unique and innovative fine dining atmosphere will
differentiate us from the competition. The restaurant will stand out from the other restaurants in the area because of the unique design and decor. We will offer a fine dining
experience in a cozy atmosphere.
The menu will appeal to a wide and varied clientele, It is International with an interestingtwist. Controlling costs at all times without exception.
Due to intense competition, restaurateurs must look for ways to differentiate their place of
business in order to achieve and maintain a competitive advantage. The fact that no other
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restaurants in this area has this concept and atmosphere presents us with a window of
opportunity and an entrance into a profitable niche in the market.
Office equipment:
Computer Telephone set
Office furniture
Stationery Electric fan
Lights
Exhaust
AC
Printer
OPERATIONAL DETAILS
Facilities
The restaurant at Rajarhat is 1000 Square ft. in area . The licenses and codes' issues are all
in order. New equipment and dining room furnishings will be purchased and installed by
the general contractor.
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Hours of Operation
The restaurant will be open for lunch and dinner 7 days a week. Service will begin at 11:00
AM and end at 11:00 PM. The restaurant will be closed on National holidays like Republic
Days,Independence Day,Gandhi Jayanti.
Employee Training & Education Employees will
be trained not only in their specific operational duties but in the philosophy and
applications of our concept. They will receive extensive information from the chef and bekept informed of the latest information on healthy eating.
Systems & Controls
A big emphasis is being placed on extensive research into the quality and integrity of our
products. They will constantly be tested for our own high standards of freshness and purity.Food costs and inventory control will be handled by our computer system and checked
daily by management.
Food Production Most food will be prepared on the premises. The kitchen will be
designed for high standards of sanitary efficiency and cleaned daily.
Major organic foods, cereals, soybeans, spices, pulses etc. will bedistributed by the ever green organic food supplier. Food will be made
mostly to order and stored in large coolers in the basement.
Machinery and equipmentEquipments & machinery used in production house:-
Oven
Potato French fries machine
Dough mixture
Food processor
Frying machine
Microwave
French fry cutter
Food cutter
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Sauces
Cutlery set
utensil
Delivery
Food for delivery may be similar to take-out (prepared to order) or it may be prepared
earlier and stocked.
HUMAN RESOURCE PLAN
Management & Organization
This will be a sole-proprietorship firm. I will be the sole
owner of this restaurant. The management style will beinnovative.
Compensation & Incentives
Multi-Cuisine resto will offer competitive wages and salaries
to all employees with benefit packages available to key personnel only.
Management to be Added
There will be a general manager and executive chef. These key employees will be wellchosen and given incentives for performance and growth.
Management Structure & Style
The general manager will be the head of the restaurant. The assistant manager and chefswill report to him. The sub-chefs will report to the chef.
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MARKETING ANALYSIS
The Challenges
Though the restaurant market in the Indian setting is strong and established, certain
challenges can still affect the success of the planned restaurant business. For instance, thelocation of the establishment should be greatly accessible to the market.So,our restaurant
will be in such a place which is easily accessible from the market,residential area. Aside
from physical location, the food or menu offered by the restaurant will be such that suits
consumer needs and tastes and for the customers who are health conscious. All of thesecriteria will be taken into account so as to develop practical solutions to overcome possible
business challenges.
Marketing Strategy Focusing on the unique aspect of the product theme (organic,multi-cuisine restaurant) a mix
of marketing vehicles will be created to convey our presence, our image, and our message.
• Print media -- local newspapers, magazines and student publications
• Broadcast media -- local programming and special interest shows
• Hotel guides, concierge relations, Chamber of Commerce brochures
• Direct mail -- subscriber lists, offices for delivery
• Misc. -- yellow pages, charity events
Market Location & CustomersThe Restaurant will be located in New Town,Rajarhat Junction.The customer base will
come from 5 major segments;
1.Local population -- the area of Rajarhaat which is quite large.
2. Colleges and Universities – There are a large number of colleges in the near by area.
3.Tourism – Tourists from different regions & world wide come and explorekolkata.Tourists here mainly come for the purpose of - Cultural tourism,Ethnic and
Medical tourism.
4.Local businesses – There are various local businesses in the area with a large number of
employees.
The Target Market:
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Multi-cuisine resto will focus on attracting large consumers between 25-60 aged group
people.We want the business man, happy couples, high-end singles, families, tourists with
money, wealthy image seekers and compulsive spenders. We focus on these specific groups
because these are the types of people who frequently visit other restaurants and bars in thearea. They are the ones that are willing to spend their money on good dining and service at
a value price. We generally know the characteristics of our clients with the availabledemographics. Our geographics include people from the local Long Branch area, restaurant patrons from neighboring cities, and tourists from other cities and states. The characteristics
of our clients will be people who are creative, entertaining and sophisticated diners.
Market segmentation
We have defined the following groups as targeted segments.The Business Man: They work hard all day and often stay overnight in a strange city. He
needs a competent establishment that helps impress his clients and prospects. Afterward,
they want to relax and use the money they are making. They are the people that spend the
most on drinks, food and tips.
Happy Couples: The restaurant will have an intimate, romantic, sophisticated atmosphere
that encourages people to bring dates and to have couples arrive.Multi-Cuisine resto wantsto be a search place where people meet each other and develop a network.
The Family: The perfect place for a family dinner. Families will come for theaccommodative menu and friendly service. The excellent value in their meals will keep
multi-cuisine resto in favor with the parents.
High-end Singles: We will attract them with our decor and layout. Our international menu,striking artwork, events, excellent service and engaging clientele will confirm the feeling of
being in "the coolest place" .
Tourists: Kolkata is a city that attracts many vacationers during the months of winter. Multi
cuisine resto will be a destination with its attractive atmosphere, international menu, and
outdoor patio
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Market Trends & The Future:
R ajarhat also called Rajarhat Gopalpur or New Town, Calcutta, is one of India's latestand fastest-growing planned new cities
Demographics: As of 2001 India census[3] , the Rajarhat Gopalpur Municipality had a population of 271,781. With the completion of the establishment and development of the
township, the population of the area is poised for a significant increase.
Entertainment: New Town area is a shopper's paradise in the real sense of the term, many
international & five star hotels are situated near-by but still today this area lacks good
restaurants and pubs of reasonable prices.
Food & health The organic food industry has experienced tremendous growth in the past
two decades.
Since 1990, sales of organic food have increased by nearly 20% annually. Surveys indicatethat many consumers purchase organic foods because of the perceived health and nutrition
benefits of organic products.
As the Foodservice 2000 report stated, this trend will be even more important by the turn of
the century.
As people want to stay home more and cook less our strategy of delivering prepared mealson a weekly or monthly arrangement may be a widespread accepted new way of eating.
COMPETITION
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Swedish, Euoropean, Chinese , Japanese, Indian, Thai, Middle Eastern and
Mediterranean cusine, common theme -- healthy (low-fat, low cholesterol, natural
ingredients), flavorful, and familiar.
Milestones
After the restaurant opens, we will keep a close eye on sales and profit. If we are on target
at the end of year 1, we will look to expand to a second unit.
Risk Evaluation
With any new venture, there is risk involved. The success of our project hinges on thestrength and acceptance of a fairly new market. After year 1, we expect some copycat
competition in the form of other independent units. Chain competition will be much later.
Future plans and Strategic Opportunities
Delivery to offices (even outside of our local area) may become a large part of gross sales.At that point a sales agent would be hired to directly market our products for daily delivery
functions
Financial Analysis
The main goal, like any other business, was to turn a profit. The financial analysis
determined whether or not the restaurant would become a profitable investment by its thirdyear of operations.
The total amount to established that business is Rs. 23,00,000 while in that amount Rs.
15,00,000 will be taken as bank loan. The amount of loan will be repayed in 3 years @14% interest which is the liability of the business.
Here we have prepared our forecasting, Firstly we have
shown our project profit and loss A/c and balance sheet for 3 years.
PROFIT & LOSS ACCOUNTS :
The profit and loss account shows the profit that the business makes. This is also known as
the "Trading, Profit and Loss Account". It is made up of the following components:• Sales
• Direct Costs• Gross Profit
• Indirect Costs
• Net Profit• Taxation
• Director's Drawings
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• Investment in Business
PROFIT & LOSS A/C (3 YEARS)
Projected Profit & Loss Accounts 2012-13 2013-14 2014-15
Sales ( Net of Taxes & Duties) 6240000 9360000 12480000
Less: Cost of Sales 4368000 6552000 8736000
Gross Margin 1872000 2808000 3744000
Salaries & Wages 873600 1310400 1747200
Operating Equipments 327600 491400 655200
Rent 50000 55000 60500
Electricity Charges 25000 27500 30250
Repairs & Maintenance 150000 180000 216000
Rates and Taxes 5000 5000 5000
Insurance 5000 5000 5000
Stationery and Printing 15000 15000 15000
Travelling and Conveyance 25000 25000 25000
Telephone & Postage 5000 5000 5000
Advertisement and Publicity 20000 20000 20000
1501200 2139300 2784150
Porfit Before Interest & Depreciation 370800 668700 959850
Depreciation 102000 114000 120000
Porfit Before Interest 268800 554700 839850
Interest Expenses 214110 214110 214110
Profit Before Tax 54690 340590 625740
Tax Expenses 0 34059 125148
Net Profit 54690 306531 500592
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B A L A N C E S H E E T D E T A I L
The amount of detail shown on a balance sheet depends on the amount of information
desired, the operation’s size and complexity, and whether it is a proprietorship, partnership,or incorporated company.
Projected Balance Sheet 2012-13 2013-14 2014-15
SOURCES OF FUNDS
Own Fund 800000 854690 1301221
Add: Profit for the year 54690 306531 500592
Less: Withdrawal 300000 360000 420000
554690 801221 138181
Revenue The revenues (sales) during the period are recorded here. Sometimes
referred to as the “top line” – revenue shows the total value of sales
made to customers
Cost of sales The direct costs of generating the recorded revenues go into “cost of sales”. This would include the cost of raw materials, components,
goods bought for resale and the direct labour costs of production.
Gross profit The difference between revenue and cost of sales. A simple but very
useful measure of how much profit is generated from every £1 of
revenue before overheads and other expenses are taken into account.Is used to calculate the gross profit margin (%)
Operating profit A key measure of profit. Operating profit records how much profit has
been made in total from the trading activities of the business before
any account is taken of how the business is financed.
Finance expenses Interest paid on bank and other borrowings, less interest incomereceived on cash balances, is shown here. A useful figure for
shareholders to assess how much profit is being used up by the funding
structure of the business.
Profit before tax Calculated as operating profit less finance expenses
Tax An estimate of the amount of corporation tax that is likely to be payable on the recorded profit before tax
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3
Borrowing ( Bank)150000
0 1200000 900000
205469
0
200122
1 2281813
APPLICATION OF FUNDS
FIXED ASSETS
Furniture & Fixtures
100000
0
100000
0
100000
0
Kitchen Equipments 500000 700000 800000
Air Conditioners 100000 100000 100000
Office Equipments 50000 50000 50000
Computer 50000 50000 50000
1700000
1900000 2000000
Less: Depreciation 102000 114000 120000
159800
0 1786000 1880000
CURRENT ASSETS
Inventories 50000 50000 50000
Cash and Bank Balances 558190 384971 639813
608190 434971 689813
CURRENT LIABILITIES AND
PROVISIONSCurrent Liabilities
Sundry Creditors 15000 15000 15000
Bank Borrowing (Overdraft) 136500 204750 273000
151500 219750 288000
NET CURRENT ASSETS 456690 215221 401813
205469
0
200122
1 2281813
Fixed assets
are non-current, non-monetary tangible assets used to support business operations. They are
also known as property, plant, and equipment and commonly referred to as capital assets.
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Fixed assets are long lived and of a more permanent and physical nature, and are not
intended to be sold.
I n v e s t m e n t s
Long-term investments in other companies or in property or plant not connected with theday-to-day running of the business are shown as a separate category of asset. This category
does not include short-term investments, such as
a separate building that is owned and rented to another organization.
L e a s e h o l d C o s t s o r L e a s e h o l d I m p r o v e m e n t s
It is reasonably common for land or the building to be leased. Where a long term lease is
paid in advance, the unexpired portion of this cost should be shown as an asset. Similarly, if improvements are made to a leased building
C U R R E N T L I A B I L I T I E S
Current liabilities are those debts that must be paid or are expected to be paid within a year
I n c o m e T a x P a y a b l e
This is the income tax owed to the government on the company’s taxable income
L O N G - T E R M L I A B I L I T I E S
Long-term liabilities are those due more than one year after the balance sheet date. Included
in this category would be mortgages, bonds, debentures, and notes payable. If there are anylong-term loans from stockholders, they also would appear in that section.
O W N E R S H I P E Q U I T Y
In general terms, the ownership equity section of the balance sheet is the difference
between total assets and total liabilities. It represents the equity, or the interest, of theowners in the enterprise. It comprises two main items, capital stock and retained earnings.
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Conclusion The above projections are just an average figure to get almost a close to
reality figure about what should be the minimum amount of business required to be done.
Based on the project description, the plan for a multi-cuisine restaurant is a goodestablishment within the Indian business industry. Considering the continuous progress of
the Indian restaurant sector, the project plan for the multi-cuisine resto is likely to succeed.In India, an estimate of 5.5% growth in annual sales had been registered for its restaurantsector in 1999.Though fluctuations in sales growth had been observed in the Indian
restaurant market, the sector remained dynamic as menu transitions and new brand
innovations had been introduced by various establishments. A number of factors are also
significant for the growth of the Indian restaurant industry. Among these include the progress of tourism in the country, increase in disposable income as well as work and home
pressures. Due to these factors, a number of consumers have increased preference for going
to cafes and restaurants. Within the Indian food establishment industry, the restaurantsector is the largest in the country. Various range of outlets from small, less costly
operations to branded outlets are also present in the country. Based on the consumer
studies, eating at restaurants is now part of most consumers’ lives in the big cities in thecountry. In fact, the Target Group Index (TGI) has shown that 62% of its respondents have
stated that they eat out during the evenings, whereas 50.8% of the respondents eat out
during the day. These socio-economic factors have greatly contributed to the boosted sales
acquired during the past years. From these aspects, it is apparent that the restaurant sector in the Indian market has high possibilities of further growth and development in the future.
Thus, the project plan for a multi cuisine restaurant is likely to succeed in the industry.
We have studied the operational plan,marketing plan.The study of the financial feasibility
of the project has been done. As we can see that our estimated revenues is more than our estimated costs, we can say that this project is financially feasible. The risk factors have
also been analysed.