By analysing this takeaway I can run my takeaway better than this by looking at and meeting the customers needs and wants.
To find out how many customers come to the ‘Tandoori Plaice’ each day I observed the number of people and how much they spent each day and represented the data on a chart.
Day Number of customers how much they spend
Monday 50 -60 £300-400
Tuesday 50- 60 £300-400
Wednesday 50-60 £300-400
Thursday 60-70 £300-400
Friday 150-250 £500-700
Saturday 200-300 £600-800
Sunday 100-200 £300-400
Altogether the takeaway’s (‘Tandoori Plaice’) takings come up to £2650 a week. From the data above you can see how much customers spend each day. ‘Tandoori Plaice’ is open 7 days a week, and is open from 2pm until 2am.
Results from the questionnaire
The data was collected using “simple random sampling” but also convenience sampling, this meant that I could choose the size of the sample I felt I required and on a totally random basis. Although for this I worked on the basis of 16 samples, as I felt this was a small but even number that I would easily be able to analyse the results from.
Question 1: Gender
Male Female
- 7
Question 2: Age
Age range number of people
10-15 0
16-20 2
21-25 2
26-30 1
31-40 6
41-50 4
51-60 1
61+ 0
Question 3: prices
Prices Number of people
Cheap 4
Reasonable 11
Expensive 1
Question 4: Quality
Quality number of people
Very good 8
Good 5
Ok 3
Bad 0
Very bad 0
Question 5: how would you rate the service on a scale of 1 to 10 (1 being very bad and 10 being very good)
Service rating number of people
1 0
2 0
3 0
4 0
5 0
6 1
7 2
8 4
9 2
10 7
Question 6: How much do you spend per visit for 1 meal or per order?
Money spent number people
£5-10 4
£11-15 3
£16-20 6
£21-25 1
£26-30 2
£31+ 0
Question 7: How many days do you come?
Number of day’s number of people
Once a week 11
Twice a week 4
Three times a week 1
Daily 0
Question 8: how convenient is the location on a scale of 1 to 10? (1 being very bad and 10 being very good)
Location rating number of people
1 0
2 0
3 1
4 0
5 1
6 0
7 0
8 2
9 5
10 7
Question 9: how good is the product range? (On a scale of 1 to 5, 1 very good and 5 poor)
Product range rating number of people
- 9
- 2
- 5
- 0
- 0
Question 10: Do you live in Small Heath or Sparkbrook or neither?
Area number of people
Small Heath 6
Sparkbrook 8
Neither 1
From the above graphs you can see that mainly it was the younger and middle-aged generation going out to restaurants. You can see from question four that 13 out of 16 said that the quality was very good or good. Also you can see from question six and seven that most of the people went once a week and spent around £16-£20 each time they went a week, so this tells us that they are regular customers.
These results now show us that if we keep having regular customers we will succeed in no time.
Future Marketing Strategies of my takeaway.
The primary products that would be offered by my takeaway the Tandoori Junction would be:
- Asian starters
- Tandoori dishes + Roti (chapatti)
- Chicken dishes
- Sag dishes
- Bryani dishes
- Curry dishes
- Malayon dishes
- Moglai dishes
- Korma dishes
- Kashmiri dishes
- Bhuna dishes
- Duplaiza dishes
- Dhansak dishes
- Pathia dishes
- Madras dishes
- Ceylon dishes
- Vindaloo
- Phai
- Sundries
- Vegetable side dishes
- Desserts
- English meals
Note: The menu will explain these dishes
Promoting the takeaway
I need to distribute leaflets and flyers door to door, which would be delivered by myself. The leaflets are a form of advertising for the takeaway, which is cheap. This I feel is the simplest way to get the message across to would be a customer. Newspaper adverts are another way I could promote my takeaway.
Also pens will be another source of advertising.
Aims and Objectives for the takeaway:
- Increase market share
- Regular increase in turnover
- To provide a high quality service
Target customers
Local people living in Small Heath and Sparkbrook, because Sparkbrook is about 10 minutes walking distance from Small Heath. Passing trade due to my business being situated on the main road in Small Heath, which is Coventry road. Small Heath is also about 5 minutes drive from the city centre and Broad street to be precise where it is busy on Friday and Saturday nights and target customers would also be late night clubbers.
Competitors
There is the ‘Tandoori Plaice’ takeaway, which I have closely looked at in the early part of this assignment. There is also a Chinese restaurant, which is also on Coventry road. Major players such as McDonalds, Little Chef and Burger King will not affect my takeaway as they already have loyal customers who are hard to steal from these major organisations. Therefore, my takeaway will be in fierce competition with Donor Kebab outlets or Kebab houses, as they like to call them, which are scattered, all around Small Heath and Sparkbrook like moths attracted to light!
Marketing Mix of the takeaway
- Product – Quality, Presentation, unique flavoured food.
- Price – Prices that are cheaper than my competitors.
- Promotion – Distribution of menu, advertising on the menu, viral marketing, 2 for one. Offers or buy discounted dishes before a certain time limit daily.
- Place – On a main road; Coventry road in Small Heath, 5 minutes drive from the
- Birmingham city centre.
Distribution strategy
Customers can come to collect their meals or meals can be delivered to them provided that the meal costs over £8. However, delivering the meals in a takeaway is not good because it can cause all sorts of problems like delivery vehicle costs and not enough staff for deliveries.
Pricing strategy
The data on prices in the primary research needs to be used as a benchmark for prices.
As a short-term pricing strategy just to enter the market, I will use is ‘Promotional pricing’ this means that I will charge special low prices for a short period of time this price I feel it would attract more customers and it certainly get my business off the ground in the growth phase.
S.W.O.T ANALYSIS
STRENGTHS: Tandoori Junction will be located on a main road in Small Heath. The
Population around the area is about 5000 approximately and is principally close to the city centre.
There is less competition because there are only 2 takeaways close by. Which are:
Tandoori Plaice (Sparkbrook)
Chinese takeaway on Coventry road
The Chinese takeaway is located on the same road that my takeaway will be located on, it seems that the Chinese takeaway is coping very well even with all the fierce competition with the Kebab houses and fast food outlets in the vicinity. So I believe that starting up an Indian takeaway, will not affect the Chinese takeaway and vice versa.
WEAKNESSES: Most people come out when the weather is good, this can be a problem. In spring and summer people come out, therefore, takeaways are busy that time but in winter the businesses’ sales level decrease.
Takeaways are subject to often-stringent legislation as with most other sectors of the food industry.
OPPORTUNITIES: Tandoori Junction has a very unique selling point USP that is an open kitchen. A majority of Indian takeaways do not have the facilities to show customers how their food is being prepared and the enjoyment and sheer exhilaration of watching food being cooked is second to none.
My staff would be given the artistic licence of preparing some new dishes if the sales figures reach a certain target each week.
THREATS: My competitors are a major threat because they have the capabilities and the know how of getting customers because they have been around longer than my takeaway has so there is no doubt that they’ll hay a few tricks up their sleeves to maintain their share of the market.
P.E.S.T. ANALYSIS
POLITICAL: Foot and mouth disease would affect transport of livestock, which would in turn would affect the supply of meat and dairy products (which are a key part most Indian dishes) due to new laws being introduced.
Public spending – taxation would also be a political factor for takeaways.
ECONOMIC: If employment falls then my business could face problems, because as a result people would not have enough money to spend on takeaways, however, the opposite may occur if employment goes up. If more jobs and wages were promising then there will be more disposable income and then more people would purchase takeaways.
Prices – would increase because lack of supply due to foot and mouth.
If there were a boom in the economy there would generally be more demand, however this could take place via a recession.
Foot and mouth will not only affect the food industry but other industries in the long-term. For example foundries make components which are used in the manufacturing of food, however if the industry was unable to produce that particular food they wouldn’t need to make the components causing the foundries to lose profits due to loss of business.
SOCIAL: Social Trends: Takeaways would be considered leisure facilities for people to spend their disposable income on.
Lifestyles and diverse tastes of consumers.
Demographic issues: The population is getting older which could affect the demand for the takeaways.
TECHNOLOGICAL: For takeaways, new things attract a lot of customers such as new product development, I would therefore, have new products such as new flavourings and also my equipment would need to be durable.
Better cooking equipment would also be used.
Production process (H.R.M) of a takeaway.
Kitchen porter – cutting onions, potatoes, prepare vegetables, clean dishes, and help the 2 chefs
Chef – cook the base (gravy/sauce), cut the chicken, lamb etc, and cook the curry including side dishes, stock control
Tandoori chef – make the Nan bread, rice, starter dishes, and dried dishes made in the oven for example Chicken Tikka.
2 Waiters – answer phone calls, serve customers, operate cash tills, close lids on containers, serve rice into containers, help the 2 chefs, stock control with the chef.
Organisational structure of the takeaway
Boss
Tandoori chef Chef
Waiter Waiter
When the boss is away, one of the waiters who has been there for a long time and knows the way around the takeaway takes the responsibility of giving orders. When the Chef and Tandoori chef are busy, and need some assistance they can ask the waitress for support.
Employment- all permanent jobs
- The Chef would be full time: 56 hours per week
- The Tandoori Chef would be full time: 56 hours per week
- The Kitchen Porter would be part time: 24 hours per week
- The 2 Waiters would be full and part time each week: one 24 hours and the other 56 per week
Performance related bonus.
All employees will have weekly fixed pay, they would get 10% bonus at Christmas:
Chef Tandoori Chef Kitchen Porter Waiter
£240 basic wage £200 basic wage £100 basic wage £150 basic wage
£24 bonus £20 bonus £10 bonus £15
£264 bonus wage £220 bonus wage £110 bonus wage £165 bonus wage
Quality Assurance plan
This can be defined as ‘meeting customers needs’ or ‘what it takes to satisfy the customer’ or ‘fitness for purpose’.
Consumers’ perception of the quality of a product is the most important factor in determining its success.
Quality is more important than price in determining demand for most goods and services. Customers will be prepared to pay for the best value. Value is added by creating those quality standards required by customers.
Anyway, for my Indian takeaway quality will be based on Quality control and Quality assurance. Inspectors carry out quality control. Inspection and testing are the most common methods of carrying out quality control. For takeaways:
- Food is tested before made e.g. raw products mixed with spices
- Food is tested when made e.g. from the spoon, tasting the food.
- I have to make sure the food is looks good and is ‘garnished’ with specific toppings and flavours e.g. coriander on all spice foods and coconut shreds with single cream on all sweet dishes.
Quality Assurance – this is concerned with trying to stop faults from happening in the first place, it is also to make sure products are produced to predetermined standards.
All the food in my takeaway produced will be of the highest standard, because I will purchase the best supplies and raw products around for cooking.
As this is a small business I don’t think it will fall into the category benchmarking e.t.c.
LEGAL CONSIDERATIONS
To run an establishment that involves food, certain standards in my takeaway need to be met. I need to contact the environmental health officer (EHO) through my local council. The EHO will, at the early stage of my takeaway business, ensure that the operation conforms statutory regulations, thereby avoiding costly refits for me. They will also investigate accidents at work involving staff and general public, health and safety complaints and provide information to business and members of the public to increase general awareness of health and safety.
In addition, there are certain regulations my takeaway must abide by. These include food premises (in order to register my Indian takeaway with the local authority), food safety, hygiene and temperature, financial laws such as requirements on food VAT charges as well as a licence if I decide to serve alcohol. I will also be restricted to alcohol being served only with a substantial meal.
Job description
Head chef required
- Chef required for Indian Takeaway
- Accommodation provided
- Minimum 3 years experience
- Health and hygiene certificate required
- Salary Negotiable
Chefs required
- Large Indian bar and restaurant
- Must be self-motivated and possess leadership qualities
- Minimum 3 years experience
- Health and hygiene certificate required
- Salary Negotiable
Waiters required
- Good communication and numercy skills (level 2 and 3).
- Organisation skills
- Very motivated and devoted to hard work
- Salary negotiable
Equipment
Item Cost Location
Refrigerator £800 Catering warehouse
Freezer £350 Bargain pages
Hot plates £600 Catering warehouse/auction
Cooker £1000 Warehouses
Pots and Pans £500 Warehouses
Grinder £700 Wholesalers
Sink and Shelves £600 Warehouse
Tandoori Oven £700 Catering warehouse
Microwaves (2) £500 Curry’s
Fryer £350 Auction
Signage £1000 Factory (made to fit)
Canopy £1000 Factory (made to fit)
Cash tills £50 bargain pages
Total £8150
Cash flow forecast – Assumption made:
- VAT rate remains at 17.5%. All figures included VAT.
- All equipment will be purchased in good working condition.
Stock bought for one week.
Lamb £300 a week
Vegetables £25
Chicken £80
Total £405 a week (Cost of stock every week plus giro which is £200. so final cost is £605 a week, this is paid instalment every week).
Suppliers
Giro foods Ltd Birmingham
Meadway Grocers Birmingham
These are local family groceries, they deliver all over Birmingham and they are also cheap.
Premises
Making a decision to open a business, especially food outlets you have to take a lot into consideration when searching for a property.
I have chosen 3 areas in consideration in Birmingham, which are, Alum Rock, Bordesley green and Small Heath.
We were considering doing a business in Alum Rock and have noticed that there is a vast majority of food outlets. There are 7 Indian restaurants, which include takeaways as well, 3 chip shops, kebab houses and one pizza place. So we believe setting up a business here will not be suitable for profit or might not work out or we will fall into bankruptcy. All Alum Rock businesses have their local loyal customers and they might try out food from a new outlet and after that customers prefer to eat at usual outlets.
Small Heath has many more outlets, as it is a bigger area. It has nine Indian restaurants, five Indian takeaways, four chip shops, kebab houses, three pizza houses and five bakery shops.
Looking at this it shows me it has a huge demand in food. Either to do with snacks or main meals. It shows that it is not a good place to set up a business seeing as though it is over populated with food outlets. There might be a chance to do so but it seems that there would be no point and if everyone else does situate there, they might fall into a problem where they might not have any trade due to other food outlets.
The last place I have chosen is Bordesley Green. This area has only four takeaways, one Chinese restaurant, two chip shops and one pizza house. I believe if we situate the Indian restaurant here it will be successful. This shows me that every one is making money without falling into any financial trouble and situating a Tandoori takeaway here would not be a problem. Also I was brought up in this area so I know how the other shops are doing.
I have found out that we would be making a profit over sales, and have a steady turnover if we are situated here because there is not a major share of food outlets here.
Legal Aspects
Consumer Protection
This is an important area to start a business, which will sell goods directly to consumers, it also regulates trade between businesses, Acts under takeaway:
Trade description Acts – Makes it an offence to apply a false or misleading description to your goods or services and a false or misleading indication of the price.
Sales of goods act – Require that your goods are described that is, they comply with the description given to them. They must be fit for the purpose for the use described to the customers when making the purchase. They must be of satisfactory quality, this allows consumers to return goods for relatively minor defects, which may not necessarily have comprised their fitness for purpose.
All food outlets will have a problem at one time or another to do with food, e.g. lack of flavour, different product packed into the bag, which was not ordered by the customer. Our policy would be that if there were any minor problems with the food we would either return the dishes stated or give them a refund. The only major problem we can see with the food would be food poisoning and this will involve a complaint, to avoid this, we will be very hygienic to not prevent this happening anyway. If this happens we will offer the customer a full refund or a free meal next time they come. Also we will have a full investigation into why this happened.
Sales of Goods and Services Act 1982 – Requires that companies and trades people must use reasonable care and skill in providing services.
Consumer Safety Act 1978 – Allows the government to introduce or update regulations concerning the safety of goods to reduce the risk of personal labelling, container, materials, parts etc and the way it operates meet the relevant safety regulations. Consumers for any damages connected with your product being defective can sue you.
Food and Drink Acts – Concerns catering business as well food and drink producers. These cover food hygiene, food ingredients and the labelling of ingredients, artificial colorants and preservatives.
Food Safety Act 1990 – Control of all aspects of food safety and hygiene throughout the food distribution chain, including locations where food is manufactured, prepared and sold.
Environment
Environmental protection act 1990 – has applicant for the way in which you produce good and services. It seems to prevent pollution of air, water and land from emissions resulting from the product process. It controls waste disposal methods, litter, odours, vibration, noise and other side effects of business that may damage the environment, create a public nuisance.
Employing Labour
Employment protection act 1978 – deals with the fundamental rights of your employees, including their right to receive written particulars of the terms of employment.
Finance of Tandoori Takeaway
Fixed costs:
Rent 5.500 per annum
Rates Water bill £280
Gas £720
Electricity £200
=£1200 yearly
Salaries £2760 a month
£33,120 a year
Total = £39,820
Variable cost
We are doing our estimates on the most popular complete meals taken from Tandoori Plaice. How much it cost to make one product.
NOTE: These figures are part of research and based on most popular dishes at Tandoori Plaice.
Because we have a wide range of products, which we sell at Tandoori Takeaway we have based our break even on what we think is the typical meals.
Normal selling price cost to make product
Starter – Onion Baji £1.30 £0.30
Main meal – Chicken tikka Moss £5.25 £1.00
Side dish – Various £1.90 £0.50
Tandoori Bread – Plain Nan £1.10 £0.20
Sundries – Plain Rice £1.40 £0.70
Drink – Coke etc £0.50 £0.30
Total £11.45 £3.00
£12.00 (2.d.p)
EQUIPMENT & MACHINERY
Equipment Price (£) Width (mm) Depth Height (mm) Electric / Gas
Length (mm)
Fryer 350 1000 725 955 350kw
Hotplate 600 750 750 510 750w
Insect control 100 130 345 290 16w
Microwave 500 each 548 440 352 900w
Tandoori oven 700 900 900 1250 60w
Electronic till 50 400 458 306 21w
Chester fridge 400 600 955 1045 Temp 24*C
Deep freezer 350 758 658 905 Temp 24*C
Drinks fridge 400 1195 647 1855 Temp +10*C
Canopy 1000 8 ft 95 95 1600w
Stainless steel 70 650 420 900
Worktops
Double sinks (2) 100 each 1500 500
Hand wash 40 each 350 400
Basin (2)
We are going to purchase all our machinery, which is stated above. Whichever machinery is complicated to fit into our business we will bring in an experienced engineer. However the basic assemble we can deal with ourselves, following the instructions.
Most of the machinery has a minimum expected life of 10 years. However, in order to obtain a longer lasting lifetime we will maintain and look after all machinery. This can be maintained by looking after equipment and avoid miss use of them.
CASH FLOW
Profit & loss account for the year ending December 2002 for Tandoori takeaway.
£ £
Sales 118400
Opening stock 2420
Purchases 29040
31460
Closing stock 2420
Cost of goods sold 29040
Gross profit 89360
Expenses:
Wages 33,120
Rent 5496
Telephone 280
Insurance 600
Electricity 1200
40696
NET PROFIT 48664
Balance sheet for the year ending 2002 for Tandoori Takeaway.
£ £
FIXED ASSETS
Premises 5500
Equipment 8150
13650
CURRENT ASSETS
Stock 2420
Bank 580
CURRENT LIABILITIES 3000
NET ASSETS 16650
LONG TERM LIABILITIES
Loan 10650
FINANCED BY
Capital 6000
16650
Sources of Finance
Organisations have available to them a number of sources of finance:
Individuals
- Organisation providing venture capital
- Bank and other financial institutions
- Suppliers
- Government
- Profits retained by the business.
For our takeaway we would use bank loans and our own money. By drawing these sources of finance, Tandoori Takeaway would have a number of methods of raising money. In choosing these sources of finance we may have the following:
- The length of the time for finance
- The cost of raising the finance in one-way rather than another
Owners Capital – We would provide £6000 capital £3000 each. We expect a return only if the business proves to be profitable.
Bank loans – These are taken out for a fixed period, repayments being either in instalments or in full at the end of term. The details of bank loans are as follows:
- Source – main dearing banks and merchant banks.
- Cost – In addition to interest charges revived at so many % points over base rates.
- Limit – banks are unlikely to lend more than the owners are putting into the business.
We need to take out a loan of £10,650 and raise £6000 capital from ourselves, which will be raised £300 each for a year. This will equal to £16,650.
Source – The bank we are going to have a loan from is Barclays Bank, because we both have an account there.
Cost – We are going to borrow £10,650 over a 5 year period, therefore our (APR) annual percentage rate will be 11.4% a month.
Limit – If we have a loan for £10,650, we would have loan repayments every month, which will be £231.13.
Profit Margin = Net profit 48664
X 100 = = 41.1%
Sales 118400
Gross Profit = Gross profit 89,360
X 100 = = 75%
Sales 118,400
Return on capital employed =Net profit 48664
X 100 = = 292%
Capital employed 16,650
Sources of Finance.
Internal – own savings £3000 each.
External – Loan of £10650 from bank
Capital altogether equals £16650
EVALUATION
We both decided to do our business on an Indian takeaway based in Birmingham in Bordesley Green. This was because there is a no Indian Takeaway in Bordesley Green. There are only a couple of kebab shops. Seeing as though my family are owners of a restaurant in Stoke I know how an Indian takeaway works. This is why we decided to go about making our business plan on this type of industry.
My uncle who owns the restaurant in Stoke had set up his own business 10 years ago and also he used a business plan as well to take out a loan from the bank. I applied my knowledge from how he went about setting up a business, I decided to apply it for my own.
Seeing as though my uncle knows a lot of takeaways he pointed us to his friend Mr Ali, the owner of Tandoori Plaice to help with the research for our primary and secondary research.
The advantages of this were we could approach customers directly and tell them to fill in a questionnaire seeing that they were regular customers and to find out rest of the research like the costs, rent, rates, stock expenses etc was helped by my uncle who has previous knowledge of the Indian fast food industry.
The only disadvantage I could say was because I work weekends and these are the most busiest days of the week I had to wait for Tandoori Plaice to quiet down before I began to give out the questionnaires. The reason for this was that I had to go to the restaurant at night times. As I work during the days on Saturday and Sunday I get tired after work and I cannot be bothered to go out and get the questionnaires filled in. So I had to go during the weekdays where it is not that busy and then you have the regular customers, who will say that the restaurant is good. So in my view I had to go on weekends because they have new customers and they will not be biased.
I believe the primary and secondary research was straightforward and all the knowledge had to be applied to the finance section of the business plan using facts and figures.
The finance part of the assignment was very hard, it took us ages to balance the balance sheet. The profit and loss sheet was straightforward. We had problems in raising the capital and at the end could only afford £6000 between us and £10650 was taken out on loan. We found out that we needed to range the capital for about £16650 to make the cash flow and balance sheet to flow in an orderly state on both spreadsheets.