Planning for enterprise - opening an Asian Restaurant in the City of Wolverhampton.
PLANNING FOR ENTERPRISE
BE2002
BY
SUNDEEP SINGH CHAHAL
JOHN BATES
CONTENTS-
BUSINESS PLAN
CONTENTS: SECTIONS COVERED
. BUSINESS IDEA/PROPOSAL
2. THE KEY PEOPLE
3. WHY DO YOU WANT TO START THE BUSINESS?/ MARKET OUTLINE
4. MARKET RESEARCH
5. RESULTS OF MARKET RESEARCH
6. COMPETITORS
7. PROJECTED SALES
8. SELLING THE PRODUCT-PROMOTION
9. COSTING OF PRODUCT/ BREAK-EVEN
0. EQUIPMENT & SUPPLY'S
1. COST OF MATERIALS AND STOCK
2. PREMISES
3. EXPENSES AND OVERHEADS
4. CASH FLOW FORECAST, PROFIT & LOSS AND BALANCE SHEET
5. ANY OTHER MATERIALS
6. REFERENCE
SECTION 1
BUSINESS IDEA/PROPOSAL
SECTION 1: - BUSINESS IDEA/PROPOSAL
I have decided to open an Asian Restaurant in the City of Wolverhampton. The restaurant will be named 'Sunny's Indian Restaurant'. There is a lot of demand for Asian foods as more and more people in the UK are eating out in Asian restaurants. The distinctive feature that my restaurant will have will be that we will serve it as fast food. This appears to be a growing industry as more and more people are comforting in having takeaway meals as main meals such as dinner and evening meals as well as snacks.
This business will be set up as a Sole Trader with two friends of mine named 'Parmjit Padda' and 'Vicky Mattu'. Parmjit Padda is a well-known chef in India and has also won the best Asian Chef award in 2002. Parmjit already has the skills of a chief and also knows how to manage a restaurant, he will be giving the necessary training to me and my future employees.
My main objectives are to build brand awareness and customer service, while growing sales. I intend to make use of the following strategies to achieve these objectives:
* Offer high quality, original menu items, utilizing premium vegetables, meats dishes.
* Provide an excellent and fast Take-away value. I intend to provide large portions of fresh, healthy, high-quality food for less than my competitors.
* Build brand awareness through reasonably priced, marketing tactics.
* Pursue efficient restaurant growth.
* Provide superior customer service.
* Leverage the experience, intelligence, and skills of our complicated recommended board.
My Indian Restaurant undertaking is to provide the customer the finest Asian meal and Take-away experience. We exist to attract and maintain customers. When we hold on to this saying, everything else will fall into place. Our services will exceed the expectations of our customers.
My location selection criteria are critical to success (Location, Location, Location), if I don't have a good location there would be no point of my business to start up. I have considered the following suggestions in order for my company to succeed.
* Daytime and evening populations.
* Shopping patterns.
* Car counts.
* Household income levels.
The key elements of the Indian Restaurant will be as follows:
* Distinctive Tastes and flavours - The Restaurant will be branded by the Foods and the menu. The variety of Asian foods will make the business stand out. As more and more people begin to enjoy Asian foods. Wolverhampton dose not have any Asian take-away restaurants in the hart of the town centre.
* Location, location, location -One of the major advantages that the Restaurant will have over its competition will be its location in the new, high profile Wolverhampton Town Centre.
* Quality food - The major factor of the Restaurant would be the food quality and ours will be the best, because this is what customers what customers look for now. A simple menu offering foods of all kinds from vegetable Somosas, to sweet foods. Traditional 'Bombay' appetisers will be on hand for people craving hot savoury snacks, chicken wings, or kebab sticks while they enjoy themselves to popular music in the background.
* Exceptional service - In order to reach and maintain a unique image of quality, the Restaurant will provide attentive and friendly service through a high ratio of service personnel to customers, and will also invest in the training and supervision of its employees.
SECTION 2
THE KEY PEOPLE
SECTION 2: - THE KEY PEOPLE
POSITION IN BUSINESS: OWNER
Name: Sundeep Chahal
Home Address: 8 Wanderers Avenue,
Wolverhampton
Blakenhall
WV2 3HL
Home Number: 01902 332863
Date of Birth: 10th March 1983
Status: Single
Education
Colton Hills Community School 1994-2002
A Level Leisure and Recreation
GNVQ Intermediate Level (1999-2000) Business
Nationality: British
Employment Experience
2001-2003
Part time job at Safeway Petrol Station- my duties involve me to deal with customers at the checkout, make sure that the environment is safe for customers to use and clean up. This job helps me to be more confident and it also helps me to overcome my shyness.
2000-2001
Part time job at KFC- my duties were to prepare food, deal with customer complaints and clean up. I learnt a lot of skills when I worked at KFC they showed me how to deal with various types of customers and how to prepare food. Part time job at Safeway my duties were to stack shelves, help customers and to serve customers.
999
During 1999 I did School work experience at Argos Superstore-duties were to help customers, deal with customer complaints, giving customer refunds, helping with customer purchases, helping with the stock and cleaning up. I also had a part time job at Mir Textiles the shop focused on ready-made suites and Indian dresses.
998
During 1998 I did a Schoolwork experience project. I completed the work experience and gained valuable skills at Wombourne Leisure Center-Duties included looking after the crèche, keeping pool temperature normal, checking the Gym and setting up a football Party for customers. Also I had a part-time job at Padda Fish Shop in bilston-my duties were to serve customers and help with telephone orders.
Interests and Hobbies
I wish to carry on studying to help broaden my career. I am hopping to complete my University course so that I can obtain a Degree at the end of my University life. I also wish to improve my skills and I think that I will be able to at Wolverhampton University. I love doing computer work. I have a variety of computer skills for example I can design my own Internet page. I know how to use lots of different programs for PC's for example Microsoft word 94/98/2000/Xp, Microsoft PowerPoint, Excel, Access and various small programs such as WinZip, Gozila and others.
Resent Education and Knowledge
During the year 1999 and 2000 I did a GNVQ Business Intermediate course where I learnt various skills.
During the year 2000 to 2002 I completed GNVQ A Level Leisure and Recreation. This course helped me to understand the areas of the Recreational industry.
BAHons Business and Finance at the University of Wolverhampton.
BAHons Catering and Management
POSITION IN BUSINESS: KEY CHEF
Name: Parmjit Padda
Address: 53 Ward Road,
Goldthorn Hill,
Wolverhampton,
WV2 2DL
Telephone Number: 01902 452378
Date of Birth: 17/11/75
Status: Married
Education
(1986 - 1993) Stroke High School. Prosser Street, Bilston
(1993 - 1995) Parkfields High School, Wolverhampton Rd, Wolverhampton
(1997 - 2001) University of Birmingham
Subjects
English Language A English Literature B
French B Food Technology A*
Maths A Science B/B
Social Science E Geography D
Advanced GNVQ Business - Distinction
BAHons Food Catering/Preparing Chief
BAHons Business and Management
Work experience
March 1990 - November 1996
Revolution Bar/Nightclub
I was employed as a waiter but also worked on the bar and in the kitchen. This job Required good communication skills and the ability to work under stress.
May 1997 - May 1998
The Park Hall Hotel
I was employed as a silver service waiter, which involved serving a three-course meal to a table of 6 people. This job needed good customer service.
August 2002
Angies Asian Foods
I was a administration assistant and prepared the finest Indian cuisines. This job required a good fast work approach and my knowledge of Asian foods.
December 2002
Won the 'Best Asian Chef Award for 2002'
July 1996
Chamber of Commerce
I was an administration assistant undertaking all general office duties.
Hobbies and Interests
My hobbies include Football, swimming and badminton.
POSITION IN BUSINESS: KEY WORKER
Name: Vickey Mattu
Address: 65 Hawthorn Road,
Blakenhall,
Wolverhampton,
WV2 3TL
Telephone Number: 01902 568426
Date of Birth: 30/09/83
Status: Single
Education
(1994 - 1999) Colton Hills High School. Prosser Street, Bilston
(1999 - 2001) Colton Hills High School, Jeremy Road, Wolverhampton
(2001 - 2003) University of Wolverhampton
Subjects
English Language B English Literature B
German E Design and Technology C
Maths B Science D/D
Art C
Advanced GNVQ Business - Merit
BAHons Business and Management
Work experience
March 1999 - November 2000
Glassy Inn (Pub)
I was employed as a waiter but also worked on the bar and in the kitchen. This job Required good communication skills and the ability to work under stress.
May 2000 - May 2001
Another World (Retail)
I was employed as a supervisor. Duties included count cash, take orders and help around the shop.
June 2001 - July 2002
Denzos
I was employed as business consultant. Carried out various office duties, which included word processing and other computer skills.
Hobbies and Interests
My hobbies are football, computing and going out to clubs and cinemas.
SECTION 3
MARKET OUTLINE
SECTION 3: - MARKET OUTLINE
The Market
The target market of my business will be divided into two market segments, families and individuals. Families will cover the majority of dinner/evening time business with individuals making up the majority of lunchtime business. Also I have considered opening the restaurant at night as there are a lot of night clubs near by the town which could very well boost me business.
Although the fast food industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Trends are very important and 'Sunny's Indian Restaurant' is well positioned for the current interest in lighter, healthier foods at moderate to low prices.
The family segment is increasing annually at 9% with 26,585 potential customers. The individuals have a 8% growth rate with 33, 654 potential people within the segment. (Source: Mintel Report)
My business will be operating ...
This is a preview of the whole essay
Although the fast food industry is very competitive, the lifestyle changes created by modern living continue to fuel its steady growth. More and more people have less time, resources, and ability to cook for themselves. Trends are very important and 'Sunny's Indian Restaurant' is well positioned for the current interest in lighter, healthier foods at moderate to low prices.
The family segment is increasing annually at 9% with 26,585 potential customers. The individuals have a 8% growth rate with 33, 654 potential people within the segment. (Source: Mintel Report)
My business will be operating within the fast-casual position of the restaurant industry. They will be competing against other segments within the industry such as fast food as well as more traditional sit down restaurants.
The customer experience is extremely important as an effective way of distinguishing Sunny's Indian Restaurant. Having such a good experience will encourage repeat business. The second competitive edge is Sunny's Indian Restaurant offering of fast, healthy food. The market has been segmented into two distinct groups hear are some of the main features that stand out:
Families:
* Go out to eat 1.6 times a week (this indicates from my market research)
* Have children
* Enjoy different types of cuisines
* Families that visit the town together
* Dinners out are used as a meal replacement since neither parent has time to cook a meal at home
* Sophisticated families that live within three miles of the site
Individuals:
* Ages 15+
* Eat out 2.3 times a week (this indicates from my market research)
* People that visit the town and gat hungry
* Young professionals that live near the location
* Shoppers who patronize the nearby high rent stores
* Students
* Late night clubbers
* Late night workers
I think that the social class that I will be aiming at is middle and low class as these will be my major customers. The sex will not be relevant as both male and female would want to enjoy my products. I will be aiming at the central and the suburbs of Wolverhampton city as that is where my most likely customers will be approached from. I think the majority of customers that I will have will be students, as they are always looking to save money rather than spending it all at once.
Hear are some of the people we will be aiming our products at:
* Childless Young Professionals- There is a near by bus station just two minuets away from the Restaurant, due to this children and adults that go to school or work will pass the restaurant. These customers will range in age from 15 to 40.
* College Students-By creating an menu that is appealing to college students, we secure a natural progression between the high school student and the young professional. Through word of mouth, the Restaurant expects understand an increase of five percent annually from this segment.
* Tourists and Business Travellers-More and more business travellers and tourists are finding themselves in Wolverhampton City every year. We plan to reach these people through direct marketing to local hotel patrons. We anticipate a 20% annual growth rate in this segment. As our relationships grow with the local hotels, so too will the word of mouth recommendations from the hotel staff. Our future plan is to publish a simple website in order to create awareness to any traveller who wants to take an advanced look at the restaurant.
The following chart outlines the target market segments for the Sunny's Asian Restaurant. I included Childless young professional, collage students, which also would include university and schools, and tourists/business travellers.
SECTION 4
MARKET RESEARCH
SECTION 4:- MARKET RESEARCH
Our customers will be:
* Students
* Late night clubbers
* Tourists
* Local shoppers
* Local shops
Our customers will be found in different parts of Wolverhampton City. Wolverhampton is pretty big so we have broken the areas down
* City Centre
* Goldthorn
* Blakenhall
* Penn
* Compton
* Whitmore Reans
* Other surrounding areas (See Map In Appendix 1)
Customers all way come first and that is why they require the following points in order to gain repeat business:
* Good opening times
* Affordable prices
* Accessible
* More variety
* Excellent customer service
* Higher quality service
* Good reception
PRIMARY RESEARCH
For my 'Sunny's Indian Restaurant' I am going to compile a questionnaire to obtain some vital information that will help me understand more of my company. Below is a questionnaire that I compiled, in order to gain customer feed back.
Questionnaire
Name____________ Reference No _____
. Which age group do you fall under?
Under 18( ) 18-25( ) 26-34( ) 35-39( ) 40+ ( )
2. Which Gender are you?
Male ( ) Female ( )
3. Do you have Children?
Yes ( ) No ( )
4. Do you have a long-term partner?
Yes ( ) No ( )
5. Do you like Asian Foods/Snacks?
Yes ( ) No ( )
6. Do you go out to restaurants/take away? If Yes how often?
Don't go ( ) Once a Week ( ) 2 to 3 times a week ( )
more than 4 times a week ( ) Other (please state)_______________
7. What do you look at in Food? Please tick the relevant boxes.
Quality ( )
Freshness ( )
Price ( )
Other (please state) ________________________
________________________________________
________________________________________
8. On Average how much do you spend in a restaurant/take away?
None ( ) £1-£5 ( ) £6-£10 ( ) £11-£20 ( )
More than £21 ( ) Other (please state)___________________
9. In the last month how many times have you visited a restaurant? Please tick relevant category.
Haven't stay visited ( ) 1-5 times ( ) 6-10 times ( ) More than 11 times ( ) Other(please state)_________________
0. How far do you live from the town centre? Please tick relevant category.
Very Close ( ) 5 minuets ( ) 10 minuets ( ) More than 15 minuets ( ) Other(please state)_________________
1. What do you think of the idea of opening a Indian Takeaway Restaurant?
Very Good ( ) Good ( ) Bad ( )
THANK YOU FOR YOUR CO-OPERATION
SECONDARY RESEARCH
Fast food represents a significant sector in the UK eating-out market, accounting for 13.8% of all consumer expenditure on catering, and 48.9% of total spending at restaurants/takeaways. In 1999, total retail sales rose by 4.2% to £7.73bn. Since 1991, the market has grown by 25.4%.
The largest sector is that of burgers which accounted for 36% of total market value in 1999, followed by Indian food, Chinese food with 25%, and fish and chips with 17%. Pizzas had an 13% share, with fried chicken and sandwiches each taking around 9%.
SOURCE: THE MINTEL REPORT
Recent growth in the UK fast-food/takeaway market has encouraged greater concentration of branding. This is reflected in the numerous link-ups and joint ventures with the leading contract caterers, leisure/catering companies and the large brewers. For example, Whitbread recently consolidated its position in the pizza market by acquiring the Bright Reasons Group, which owns the Pizzaland, Bella Pasta and Pizza Piazza restaurant chains.
The UK fast-food/takeaway trade looks set for further expansion over the next 5 years, benefiting from the expected growth in the eating-out market, and greater outlet expansion by the leading players.
Key Note forecasts that market growth will average 3.7% year-on-year from 2000 to provide a market value of just over £7bn by the year 2004, with the strongest growth coming from the Takeaway (Indian, Chinese, Cantonese etc) and pizza sectors.
(OBTAINED FORM 'THE FOOD INDUSTRY' FOURTEENTH EDITION 1997 EDITED BY
RUSSELL LANGLEY)
The average UK household spends £33.50 a week on restaurants and hotels, according to the latest figures from the Office for National Statistics.
According to the Expenditure and Food Survey, 11 per cent of all household expenditure goes on hotel and restaurant services, making it the third biggest area of spending.
The average household spends £18.90 on restaurant and café meals, £3.60 on take-away meals eaten at home, and £1.90 on contract catering and canteen food every week.
Each household spends an average £4.10 a week on accommodation. People under 49 years of age spent the most on restaurants and hotels, averaging £41.80 a week. Over-75-year-olds spent the least, at just £9.50 a week.
Londoners spent the most on restaurant and café meals - 40% more than the UK average. They spent £15.40 a week, compared with £10.90 nationally.
(OFFICE FOR NATIONAL STATISTICS FROM SOCIAL TRENDS, 1998)
SECTION 5
RESULTS OF MARKET
RESEARCH
SECTION 5:- RESULTS OF MARKET RESEARCH
A total of 90 questionnaires were answered, with most people falling under the 18-25 age group. This could also be based on the time that the questionnaire took place.
The majority of people questioned illustrated that they go out for a takeaway more than 4 times a week although 19 of these stated that they only go out once a week to have a takeaway.
The questionnaires also indicate that the majority of people would consider spending at least £11-£20 pounds per time they go out for a takeaway.
The Results of the questions were as follows:
The factors that attract people to have more takeaways are:
* Flexible (For people that don't have the time too cook)
* Sometimes cheaper
* Open flexible hours
* Can eat on the move
* Discounts (OAP, students etc)
* Wide variety (better menu choice)
* Customer loyalty
* First time friendliness (encourages repeat business)
People expect the following from their choice of fast food services:
* Good quality food
* Not too expensive-cheap
* Fast food
* Good customer service
* Trust
* Positive attitudes
* Positive reputation of the business
* Trained staff
SECTION 6
COMPETITORS
SECTION 6: COMPETITORS
The main competitors which would be located close to Sunny's Indian restaurant would include the following Takeaways/Restaurants:
Name: McDonalds
Manager: Adam Brown
52-53 Dudley Street
Wolverhampton Town Centre
Wolverhampton
Tel No: (01902) 423881
Menu Items: 26
Discounts: Only Staff discounts
Hours of Opening: 7.30am - 9.00pm
Name: KFC
Manager: Nina Rai
25 Queen Square
Wolverhampton Town Centre
Wolverhampton
Tel No: (01902) 425957
Menu Items: 16
Discounts: Only Staff discounts
Hours of Opening: 11.30am - 1.00am
Name: Ship Restaurant, The
Manager: Surham Bakshi
7 St. Georges Parade
Wolverhampton Town Centre
Wolverhampton
Tel No: (01902) 420697
Menu Items: 15
Discounts: None
Hours of Opening: 9.30am - 5.00pm
Name: Sir Jack's Restaurant
Manager: Timothy Westwood
Molineux Stadium Waterloo Road
Wolverhampton
Tel No: (01902) 426272
Menu Items: 20
Discounts: OAP, Staff discounts
Hours of Opening: 11.00am - 11.30pm
Name: Burger King
Manager: Samuel J Tuskear
15 Dudley Street
Wolverhampton Town Centre
Wolverhampton
Tel No: (01902) 420107
Menu Items: 16
Discounts: Only Staff discounts
Hours of Opening: 7.30am - 8.00pm
Name: Flamingo
Manager: Jason Mills
7 Anders Square
Perton
Wolverhampton
Tel No: (01902) 744500
Menu Items: 13
Discounts: None
Hours of Opening: 6.30pm - 12.00Midnight
Name: Mem Sahib Resturant
Manager: Inderjeet Singh
15 Angelvale road
Compton
Wolverhampton
Tel No: (01902) 757555 or 742570
Menu Items: 15
Discounts: OAP only
Hours of Opening: 2.00pm - 7.00pm
Name: Omar E Khayam
Manager: Mohammad Khayam
75-76 Worcester Street
Wolverhampton
Tel No: (01902) 420090
Menu Items: 17
Discounts: None
Hours of Opening: 12.30pm - 8.00pm
To beat our rivals we will offer the following benefits to encourage more customers to visit us instead of the other rivals, we will offer:
- Better products
- Better service/reliability
- More discounts
- More offers
- More variety
- Cheaper price
- Greater flexibility
We are aiming to offer a quality service with more variety, better service, offering lower prices and by giving a warm welcome. All these will help encourage and attract more customers in trying out product range.
SECTION 7
PROJECTED SALES
SECTION 7: PROJECTED SALES
I have asked a local Indian fast food sweet centre to help me project my sales (Below). They said there monthly average sales is around 400 to 450 a month. I have decided that I will make a sale of 350 per month as I have concluded from the research.
Lakshimi Indian Sweet centre
75 Dudley Road
Blakenhall
Wolverhampton
WV2 3DF
Telephone: 01902
This local shop is selling their Somosas at 35p to 40p. The overall cost of my product too produce one Somosa is 12p I will be selling one Somosa for 30p.
As my research indicates the product rang of the competitors lacks in one or two forms. The main market is, university students and people living in the local area taking advantage of the fact that my business will be set up in the town centre and I the only one of its kind (Asian foods) this will probably generate more sales but that we will have to see. My Business will mostly serve Asian cuisines with Indian style sauces, which will be unique in taste.
I think that my business is capable of producing these quantities for example labour I will employing two people with minimum wage, I will also work but will not be paid only when I need the money. On the advertising is a major part that I will need to consider in order for my business to run successfully. I will be using two main methods of advertising 1) Local Express & Star this is a cheep add and is small 2) drop out leaflets I will drop door to door leaflets in doing so I will attract more customers.
I am planning to do exhibition of my products in local town centre of Wolverhampton on show I will show the potential customers the difference of taste, price and quality comparing to other competitors. We may also have seasonal changes as Diwail and other Indian occasions may encourage increased sales.
I am hopping to finance my business by the following methods, borrowing:
* £60,000 from HSBC with 5.6% Apr (this is the cheapest loan so far).
* £20,000 from Direct-line with 6.9 %APR.
* 30,000 me and my, family will round up.
The projected sale profit that I hope to obtain is between £100,000 to £130,000 per year.
SECTION 8
SELLING THE PRODUCTS:
PROMOTION
SECTION 8: SELLING THE PRODUCTS: PROMOTION
The methods that I will use when advertising my products will be crucial, as I will need the right methods. To promote my products I will use the following methods:
* Local Paper add (£40.00 30 words max per 2 weeks, Small add I obtained this costs by telephoning Express & Star for Wolverhampton)
* Posted Leaflets (£225.00 for a total of 10,000 leaflets every 4 months.)
* Advertising at local community places
We will also be advertising in the local community via the following methods:
* Temple
* Blakenhall Community centre
The best way of obtaining our customers is through registering with the takeaway section offered, in the local newspaper. This will help us to meet the market segments we are hoping to reach which are:
* Students
* Individuals
* Family's
* Late night clubbers
* Tourists
* Local shoppers
* Local shops
Our financing for promotion will be set out as follows:
ADVERTISING TYPE
Local Paper add (Express & Star).
Posted Leaflets
Advertising at local community places
Other
COST & QUANTITY
£40.00 (30 words max per 2 weeks, Small).
I will be paying £225.00 for a total of 10,000 leaflets every 4 months.
Free.
Set aside £150.00 for other advertising methods.
PRICE
£80.00 (2 weeks)
£225.00 (every 4 months).
£Nil
£150.00
TOTAL
£455.00
SECTION 9
COSTING OF PRODUCTS
BREAK-EVEN
SECTION 9: COSTING OF PRODUCTS
There are different cost involved in the producing a somosa, the following shows you the cost involved in producing one somosa (one of out products):
(Average Month) £
Material(s)
Potato's 8p
Salt 2p
Flower 2p
Labour 6p
Vegetable Oil 2p
Peas 2p
Onions 1p
Packaging 1p
Total 24p
Therefore it takes me 24p to produce one single somosa, I have considered selling my somosa's at a price of 35p per unit, and therefore I obtain an 11p profit. I must sell 96,780 units per month just to cover my overheads.
I must sell 142,234 units per in order to make £5,000 profits, which are 35,558 units per week.
Therefore my breakeven point is between 90,000 and 100,000 units - approximately £9,900
SECTION 10
SUPPLIERS AND EQUIPMENT
SECTION 10: SUPPLIES AND EQUIPMENT
Below are various suppliers that I will intend to purchase our equipment from:
Argos
9 - 10 Wulfrun Square
Wolverhampton
Telephone: 01902 428858
Index
4 Wulfrun Square
Wolverhampton
Telephone: 01902 422011
Domestic City
0 Ablewell Street
Walsall
Telephone: 01902 646736
Focus DIY
West Street
Stafford Road
Telephone: 01902 423642
B & Q Super centre
New Street
Ring way
West Bromwich
West Midlands
B70 7PN
Telephone: 0121 5251090
Osborn Office Supplies
38 Ward Road
Birmingham
Hansworth
BN2 5HS
Telephone: 01233 73326/7
Fax: 01233 733006
Bonser F. & Sons Ltd
Unit 3
Upper Villiers Street
Blakenhall
Wolverhampton
Telephone: 01902 71107
Middleton Cash & Carry (Fast Foods ONLY)
655 Willenhall Road
Willenhall
WV13 3LL
Telephone: 01902 632325 Or 636573
The Midland E.P.O.S (electronic point of sale) Ltd
PCL House
Mucklow
Halesowen
West Midlands
B62 8DN
Link Waste Management Company
Newspaper House
Chemical Lane
Lonport
Stoke on Trent
ST6 4PB
Telephone: 01782 824026
Bugs Are Us
Wolverhampton Road West
Blakenhall
Wolverhampton
WV2 4FG
Telephone: 01902 459744
Secura Tec Ltd
Birmingham New Road
Wolverhampton
WV4 5TH
Telephone: 01902 674392
My main equipment will be purchased from Indian stores as the equipment I need cannot be purchased from other stores.
Sandhars Supermarket
Wellington Road
Dudley
Telephone: 01384 256672
Abimunum Asian Equipment suppliers
Soho Road
Hansworth
Birmingham
BU2 4RT
Telephone: 0121 565672
My Materials will be purchased from the following:
Heydon .F.R
Warehouse
Eastbourne Street
Walsall
Telephone: 01922 626656
WH Grinnal Warehouse
48 High Street
Stourport-on-Severn
Worcs
Telephone: 0800 358 3240
Bikold Es 1974
Lingen Road
Ludlow Business Park
Ludlow
SY8 1XD
Telephone: 0800 980 8510
TRS International
3443 Lordoral Lane
Slough
Sussex
SU4 5GH
MDH Masala
567 Tomartal Business Park
Central London
London
LY6 7XT
Telephone: 0800 314151
Fruit & Veg
68 Dudley Road
Blackenhall
Wolverhampton
WV2 3TH
Johal Daries
45 Bromworth Grove
West Bromwich
Birmingham
BU5 6YU
Telephone: 0121 465783
Greensill G.R Poultry.
Springhead Poultry Farm
Springhead
Sedgley
WS4 7UH
Telephone: 01902 883037
The following suppliers are for backup purposes only:
Tomes Independent Supplies
Unit 19
Anglesley Buisness Park
Littelworth Road
Hendsford
Telephone: 01543 871000
Booker Supplies
Boundary Industry Estate
Stafford Road
Fordhouses
Wolverhampton
Telephone: 01902 397111
Many of the suppliers offer free delivery on large and small items of equipment. I will also be using the following purchasing methods as well as the ones listed:
* EBay- on-line auctioning, this also has great deals on all sorts of items.
* Local Paper- people are always selling things that may be of use.
* Local Bargain Pages- this paper comes out every Tuesdays and Fridays and has items for purchase.
The following equipment will be required in order for my business to run successfully. Note that theses equipments will be a one off purchase. I have broken the equipments into sections that cover my business.
Toilet
To carry out odd jobs and to maintain the toilet I will need the following equipment:
Plastic Mop and Bucket Costs 6.00 from Sandhars Supermarket
Paper Towels £1 per 100 from Middleton Cash & Carry
Toilet paper £10 for 40 toilet rolls Required 40 rolls from Middleton Cash & Carry
£6.00
£5.00
£10.00
TOTAL
£21.00p
Staffroom
For the staff room I will need the following equipment:
Lockers second hand 2X4 Required 1 purchased from Bonser F. & Sons Ltd
Chairs Required 2 Folding chair, £7.99 Argos Autumn 2003
Table Required 1 medium oak Table, £38.00, Argos Autumn 2003
Staff Notice Board Required 1 From Osborn Office Equipment for £6.99
£50.00
£15.98
£38.00
£6.99
TOTAL
£61.47p
Kitchen
The kitchen will require the following equipment:
Paper Tissues £1 per 100 Required 500 from Middleton Cash & Carry
Large Refrigerator cost £255.00 from Middleton Cash & Carry (Fast Foods site)
Washable floors and walls already installed
Wall cupboards and floor standing cupboards already installed
Very large Vegetable rack (x 1) Vegetable Trolley £15.49, Argos Autumn 2003
Rubbish bin (x 1) £6 from Middleton Cash & Carry (Fast Foods ONLY)
Extractor fan From B & Q costs £65 plus £20 installation
A supply of pots and pans Required 2 Kenwood Stainless Steel 5 piece Cookware Set £19.99, Argos Autumn 2003
Manual Potato peeler costs £1 from T J Hughes Required 10
Electric food mixer (Required 3) Kenwood FP101 Food Processor £37.95, Middleton Cash & Carry
Set of Scales Required 4 Kitchen Scales, £5.99, Middleton Cash & Carry
Single New Sink, £105 for the sink from B&Q and £50 to get it fitted
Electric Kettle Required 2 Kenwood JK700 Cordless Kettle, £19.40, Argos
Cutlery Required 5 Bistro 24 piece white cutlery set with stand, £4.89, Argos
Measuring Jugs Required 6 Jug and 4 Tumblers £2.99, Index
Mugs Required 1 Set of 6 Stoneware Mugs £3.75, Argos
Plates Required 2 16 piece Brunch Set, £8.99, Index
First Aid Kit for staff Required 1 £18.90, Bonser F. & Sons
Fire extinguishers Required 2 Fireproof 800gm Fire Extinguisher, from Bonser F. & Sons Ltd costs £24.99.
Fire Blanket Required 1 £35.12, Osborn Office Supplies
Vacuum Cleaner VAX from Index costs £116.00 required 1
Large Cooker with built in oven (already have this at property)
Large Detached Gas Stove from Abimunum Asian Equipment suppliers Costs £350.00 Required 2
Large Indian Cook bowl costs £9.99 from Abimunum Asian Equipment Required 6
Large Indian Spoons 31cm handles need 6 costs £3.99 from Abimunum
£5.00
£255.00
£Nil
£Nil
£15.49
£6.00
£85.00
£39.98
£10.00
£113.85
£23.96
£155.00
£38.80
£24.45
£17.94
£3.75
£17.98
£18.90
£49.98
£35.12
£116.00
£Nil
£700.00
£59.94
£23.94
TOTAL
£1,816,08
Shop Floor
The shop floor will require the following equipment in order for the business to run successfully:
Till from 'The Midland E.P.O.S (electronic point of sale) Ltd' lowest till priced at around £600.00. Also help line service for 2 years.
Stand up Deep fryer from 'Abimunum Asian Equipment suppliers' costs £880.00.
Desktop 16lb Potato Machine (peeler only) cost £655.00 Delivery is free, 5-year guarantee.
Display Cabinet counter from Abimunum Asian Equipment suppliers in second hand at £6,220,00.
Kenwood Microwave costs £85.00 from Argos
High Ultra violet Bug Catcher Cost £110.00 with cleaning contract for 2 years from 'Bugs are Us'
Waste Bin 1 from 'index' for £5.00
EXIT signs should be posted on all doors Required 4 £3 each
Smoke detectors Required 1 Pair of smoke alarms £7.99
Fire extinguishers Required 2 Fireproof 800gm Fire Extinguisher, from Bonser F. & Sons Ltd costs £24.99.
£600.00
£880.00
£655.00
£6,220,00
£85.00
£110.00
£5.00
£12.00
£7.99
£49.98
TOTAL
£8,624,97p
Safety
For the interest of Health and safety I will need the following equipment:
EXIT signs should be posted all doors Required 3 for spare £6.00 each
Fire extinguishers required 2 for spare Fireproof 800gm Fire Extinguisher, from Bonser F. & Sons Ltd costs £24.99.
Safety Gloves for hazardous chemicals Costs £4.99 each Required 10 from Link Waste Company.
CCTV cameras cost £255 plus installed for £65 from Secura Tec Ltd.
£18.00
£49.98
£49.90
£320.00
TOTAL
£437.88p
TOTAL EQUIPMENT COSTS
Toilet
Staffroom
Kitchen
Shop Floor
Safety
£21.00p
£61.47p
£1,792,14p
£1,816,08p
£437.88p
TOTAL
£10,961,40p
SECTION 11
COST OF MATERIALS/STOCK
(PER MONTH)
SECTION 11: COST OF MATERIALS/STOCK (PER MONTH)
These are all the different types of materials I will require. The suppliers will be those mentioned in the previous section (Section 10: Suppliers and Equipment). Pleases note some of the ingredients you may not have heard of as some of these are spelt in the Asian language.
MATERIAL(s) INFOMATION
Safety Canisters for hazardous substances such as oil. Costs £220 Per month, company supply's 6 Canisters From 'Link Waste Management Company' Emptied twice a week by the company.
Potato's - 25kg bag for £5.00 (I will require 2 and a half bags per day, about 14 bags each week as most of my products will be made of potato's so 14x4=56 bags per month) theses will be supplied by Bikold Es 1974.
Salt - £4.95 per 10kg bag (I will require 2 bags per week, so 2x4=8bags) this will be supplied by TRS International.
Milk - £1.50 per gallons of 3 litters, I need 3 gallons a day, so 3x31 = 93 Gallons per months, as most of my sweets dishes will require milk, this will be supplied by Johal Dairies.
Flower - £2.50p per 5kg bag (I will require 20 bags per week, so 20x4= 80bags per month of 5kg) this will be supplied by Bikold Es 1974.
Butter - £0.54p per 500g per bar (I will require 100 per week, therefore 100x4=400) this will be supplied by Johal Diaries.
Vinegar - £7.00p per gallon (I will require only 3 gallons per month as they will be very big) this will be supplied by WH Grinnal Warehouse.
Almond Nuts - 2kg bag for £2.99 (I will require 3bags per week, so 3x4=12bags) this will be supplied by Heydon .F.R.
Sugar - £0.54p per 500g per bag (I will require 30 per week, therefore 30x4=120, I will need a lot of sugar as all my sweets will need sugar) this will be supplied by TRS International.
Tomato Ketchup - £6.00p per gallon (I will require 15 gallons per month, as Tomato Ketchup will be required as more people prefer sauces with their foods) this will be supplied by WH Grinnal Warehouse.
Chutney - £9.00p per gallon (I will 20 gallons per month as these are a popular sauce as indicated by my market research) this will be supplied by WH Grinnal Warehouse.
Vegetable Oil - £11.99p per drum, which has 20 litters per drum (I will require 14 drums each week as the oil will need to be changed often, therefore 14x4=28) this will be supplied by TRS International.
Food Colouring (pack of 10) - £3.99p each pack contains 8 bottles of 150ml colouring, colours are blue, brown, green, yellow, purple, orange, black and red (I will need 1 packs per week therefore 1x4=4) this will be supplied by Heydon .F.R.
Peas - £0.79p per 1kg pack these will be used often but I require less (I will require 8 packs per week therefore 8x4=32) this will be supplied by Fruit & Veg.
Chick Peas (Indian ingredient) - £1.60p per cans, 5kg these will be used often but I require less (I will require 17 cans per week therefore 17x4=68) Fruit & Veg will supply this.
Onions - 15kg bag for £6.00 (I will require about 3 bags per week as most of my main products will have a onion in them, so therefore 3x4= 12 bags per month) this will be supplied by Bikold Es 1974.
Carrots - 15kg bag for £5.00 (I will require 1 bags per week, so therefore 1x4= 4 bags per month) this will be supplied by Bikold Es 1974.
Cabbage - £2.60 per box, 15 per box (I will require 2 box's per week, so therefore 2x4=8 box's per month) this will be supplied by Bikold Es 1974.
Collie Flower - £4.40 per box, 18 per box (I will also require 3 box's per week, so therefore 3x4=12 box's per month) this will be supplied by Bikold Es 1974.
Garlic (powder) - £2.49p per pack of 2kg (I will need 2 packs per week therefore 2x4=8) this will be supplied by TRS International.
Green Chilli - £6.60 per box, aprox 20-30 per box (I will also require 5 box's per week, so therefore 5x4=20 box's per month) this will be supplied by Fruit & Veg.
Ginger - £4.50 per box, approximately 60 pieces's per box (I will require 2 box's per week, so therefore 2x4=8 box's per month) this will be supplied by MDH Masala.
Turmic (Indian ingredient) - £2.99p per pack of 2kg (I will need 2 packs per week therefore 2x4=8) this will be supplied by MDH Masala.
Red Masala (Indian ingredient) - £1.49p per pack of 1.5kg (I will need 2 packs per week therefore 2x4=8) this will be supplied by MDH Masala.
Black Pepper - £3.49p per pack of 2kg (I will need 2 packs per week therefore 2x4=8) this will be supplied by MDH Masala.
Elephant Atta (Indian Flower) - £13.00 for 32kg bag (I will require 2 bags per week, therefore 2x4=8 bags per month) this will be supplied by TRS International.
Mince Meat - £2.00 per 1kg pack (I will require 30 packs per week so 30x4=120 packs per month) this will be supplied by Greensill G.R.
Chicken (ready to cook Skinned and chopped) - £4.99 a 4.5kg tray (I will require 5 trays a week so, 5x4=25 trays a month) this will be purchased from Greensill G.R.
Coca Cola - 24-pack case at £8.50 (I require 2 cases a week so, 2x4=8 cases a month) I would buy coca cola more as this is purchases more as shown by my market research these will be supplied by WH Grinnal Warehouse.
7up Soft Drink - 24 pack case at £7.50 (I require 1 cases a week so, 1x4=8 cases a month) this will be supplied by WH Grinnal Warehouse.
Dr Pepper Soft Drink - 24 pack case at £7.50 (I require 1 cases a week so, 1x4=8 cases a month) these will be supplied by WH Grinnal Warehouse.
Pepsi Cola - 24 pack case at £5.50 (I require 2 cases a week so, 2x4=8 cases a month). This is also a popular product this will be supplied by WH Grinnal Warehouse.
Plastic Spoons - £4.50 per box, approximately 2000 spoons per box (I will require 4 box's per week, so therefore 4x4=16 box's per month) this will be supplied by WH Grinnal Warehouse.
Plastic Forks - £4.50 per box, approximately 2000 forks per box (I will require 4 box's per week, so therefore 4x4=16 box's per month) this will be supplied by WH Grinnal Warehouse.
Trays Plastic (small) - £1.50 per box, approximately 2500 trays per box (I will require 2 box's per week, so therefore 2x4=32 box's per month) these will be supplied by WH Grinnal Warehouse.
Trays Plastic (big) - £2.50 per box, approximately 2500 trays per box (I will require 2 box's per week, so therefore 2x4=32 box's per month) these will be supplied by WH Grinnal Warehouse.
Per Month Required
contract (6 Canisters will be supplied for a month)
56 bags of 25kg.
5% Discount Given.
8 bags of 10kg at £4.95.
93 gallons (£1.50).
80 bags of 5kg at £2.50.
3% Discount Given.
400 bars of 500g at a price of £0.54p.
3 gallons per month at £7.00.
2 bags (2kg at £2.99).
20 bags (500g, £0.54).
4% Discount Given.
5 gallons per month at £6.00.
20 gallons per month at £9.00.
28 Drums (£11.99 unit)
0% Discount Given.
4 packs (£3.99 pack).
32 packs (£0.79p a 1kg).
68 packs (£1.60p a 5kg can).
2 bags (15kg £3.00).
4 bags (15kg £4.00).
8 box's (£2.60 per box)
2 box's (£4.40 per box)
8 packs (£2.49 2kg)
20 box's (£6.60 a box)
8 box's (£4.50 a box)
8 packs (£2.99 a pack)
8 packs (£1.49 a pack)
8 packs (3.49 a pack)
8 bags (£13.00 a bag)
2% Discount Given
20 packs (£2.00 a pack)
9% Discount Given
25 trays (£4.99 a tray)
8 cases (£8.50 a case)
4 cases (£7.50 a case)
4 cases (£7.50 a case)
8 cases (£5.50 a case)
6 box's (£4.50 a box)
6 box's (£4.50 a box)
8 box's (£1.50 a box)
8 box's (2.50 a box)
Price
£220.00
£280.00
-£14.00
£266.00
£49.50
£139.50
£200.00
-£6.00
£194.00
£216.00
£21.00
£35.68
£64.80
-£2.59
£62.21
£90.00
£180.00
£335.72
-£33.57
£302.15
£15.96
£25.28
£114.24
£36.00
£20.00
£20.80
£52.80
£19.92
£132.00
£36.00
£23.92
£11.92
£27.92
£104.00
-£2.08
£101.92
£240.00
-£21.60
£218.04
£124.75
£68.00
£30.00
£30.00
£44.00
£72.00
£72.00
£12.00
£20.00
TOTAL
£3,105.51
SECTION 12
PREMISES
SECTION 12: PREMISES
I am looking for a retail/takeaway shop. After analysing the location of my competitors and where they are situated I will decide on our location, I am looking at the possible areas where the business may be set up in order to sufficiently run. The sections of this town include the following areas of consideration:
* Blakenhall
* Goldthorn
* Penn
* Parkfields
* Whitmoreans
* Town Centre
* Other Areas (See Appendix 1: The map)
I visited the parts of town that I mentioned to find a suitable location. After a few days I found a perfect location, it was in the centre of town, it is perfect at there is a lot of potential in this area.
The premises is takeaway shop for rent. The full address is (also see Appendix 2: The Premises):
4A Market Street
Wolverhampton
Wolverhampton City
The property is situated fronting onto the eastern side of Market Street, within Wolverhampton City Centre. The property is conveniently located with access to open long stay car parks, the bus, metro and railway stations, all within a short walk of the property.
The property comprises a ground floor shop with access directly to Market Street, together with basement kitchen space. Also WC facilities are on the first floor. There are full height plate glass shop fronts with central access door.
The property has 2 telephone points, double radiator, and store cupboard at the back also a gas central heating boiler in the basement.
The kitchen is 618 Sq Feet and 57.42 Sq Meters having a matching suite of units comprising single drainer sink unit (not in good condition), range of cupboards with matching work tops, gas cooker, suspended wall cupboards, also has plumbing for automatic washing machine and radiator if required.
The Shop floor is 502 Sq Feet and 46.63 Sq Meters. This is a perfect space for the shop floor. The cabinet would fit perfectly. The shop windows also have display cabinets these would be used to display items. The shop floor walls are tilled in black and gold so redecoration would not be required.
The basement is of 421 Sq Feet and 39.09 Sq Meters. This would be an excellent storage space to keep stock, as there are already shelves in place, so you would not need to get builders in.
The rates and rents will be as follows:
* Rates of - £8,014.00
* Rent of - 12,009.00 per annum
* Giving a total of £20,023.00
Planning permission will not be required because I asked: Silk Rowson Plant Chartered Surveyors.
SECTION 13
EXPENSES & OVERHEADS
SECTION 13: EXPENSES & OVERHEADS
This section will show my expenses and overheads for my business. My expenses and overheads will be calculated in Annually figures they are shown on the next page.
EXPENSES AND OVERHEADS
Rent/Rates
Gas
Electricity
Telephone
Postage and stationary
Insurance
Professional Fees
Wages
Advertising
Water
DESCRIPTION
This is included from my premises, which are rates at £8,300 plus the rent of £12,225 per annum (Year) see Appendix 2 for premises.
The gas would be around £250.00 per 3 months as I found out by Lakshimi Sweet Centre in Wolverhampton.
The electricity would be around £300.00 every 3 month, as this would not be metered.
This would not be so much as I would have the BT open-world Business package which gives unlimited calls after 6pm and only 3p per minuet at other times, therefore it costs around 25.00 per month.
This will only occasionally be required so I estimate it around 23.33 per month.
This will be estimated at £1,500,00 per annum.
This includes lawyer fees, checks on equipment etc.
There will be two staff members that will each be paid £3.60 per 9 hours per day, 3 hours in afternoon and 6 in the evening. Total of 63 hours per week and 2 staff members, 253 hours a month (7 Days a week).
This will cost me ever 4 months:
£34.33 ever 3 months.
PRICE PER ANNUM
£20,023.00p
£1,000.00
£1,200.00
£300.00p
£280.00p
£1,000.00p
£500.00p
£23,587.72p
£455.00
£137.32
TOTAL
£48,483.04
SECTION 14
CASH FLOW FORECAST,
PROFIT AND LOSS ACCOUNT
SECTION 14: CASH FLOW FORECAST, PROFIT AND LOSS, BREAKEVEN
PROFIT & LOSS (ANNUAL FORECAST)
SALES (NET OF VAT)
LESS: DIRECT COSTS
COST OF MATERIALS
27,750.00
37,266.12
GROSS PROFIT
90,483.88
Expenses/Overheads
Wages
Rent/Rates
Insurance
Repairs/Renewals
Gas
Water
Electricity
Postage/Stationary
Advertising
Motor & Travel
Telephone
Professional Fees
Interest Charges
Bank Charges
Other (Drawings)
23,587.63
20,023.00
,000.00
-------------
,000.00
37.32
,200.00
280.00
455.00
-------------
300.00
-------------
£4,213.09
-------------
-------------
TOTAL OVERHEADS
52,196.04
TRADING NET PROFIT
38,273.84
LESS DEPRECIATION
NET PROFIT BEFORE TAXATION
,000
CUMULATIVE NET PROFIT
37,273.84
BALANCE SHEET
Balance Sheet for as of 31.12.04
FIXED ASSETS £ £
Machinery:
Large Detached Gas Stove £350.00
LESS DEPRECIATION £38.88 £311.12
Stand up Deep fryer £880.00
LESS DEPRECIATION £110.00 £770.00
Desktop 16lb Potato Machine £655.00
LESS DEPRECIATION £81.87 £537.13
Display Cabinet counter £6,220.00
LESS DEPRECIATION £777.50 £5,442.50
£7,060.75
CURRENT ASSETS
Stock --NA--
Debtors --NA--
Cash £120,000
Net Current Assets £120,000
Total Assets Less Current Liabilities £127,060.75
Represented by
Capital at 1.01.04 30,000
Retained Profit 37,273.84
£67,273.84
Long Term Loan(s)
HSBC Bank £60,000
Direct-Line £20,000
£80,000
Repayment Per annum £20,213.09
£59,786.91
£127,060.75
SECTION 15
ANY OTHER RELEVANT MATERIAL
REFERENCE
The following sources I used in order to compile this Business Plan:
BLACKWELL.E (2002): The Sunday Times: How To Prepare a Business Plan. 4th Ed, Published by Kogan Page Limited
RUSSELL LANGLEY (1997): THE FOOD INDUSTRY' FOURTEENTH EDITION 1997 Published by Puffin Books
Web Sites:
Http//www.Mintel.com
Http//www.statistics.gov.uk
