Abbas Shah and Gohar Zaman.                        Business Planning Assignment

                                        May 2002

Business plan for a new service.

I have been asked to produce a business plan for a new product or service of my choice.  Therefore, I have chosen to do it on a new Tandoori Takeaway, which will be open to provide a service to the community in the Bordesley Green area of Birmingham.

In my business plan for the takeaway I need to include a market analysis and plan; a production and quality assurance plan; a financial plan and an evaluation of all the components of my business plan.

The local ‘taste’ on the part of the Pakistani, Indian and white community in the Bordesley Green vicinity for good Asian food is well established.  However, there are a small number of outlets in the Bordesley Green area that offer ‘Indian’ recipes.  Every time you go in Bordesley Green there is an influx of Kebab houses whose primary objective is to sell fast food.  Which is where my business comes in to offer an alternative, to offer a true taste of Indian recipe and compete with these junk food outlets that are destroying the heritage off true Indian recipe.

The policy at my Indian takeaway, which I have named ‘Tandoori Junction’, is to specialise in unique Indian meals prepared with the original Indian texture and aroma to make it special.  My takeaway will include slightly new ranges of products not locally available elsewhere.

The financial forecasts have been prepared and have been included in the business plan, to cover the next 12 trading months and external funding assistance will be required to purchase necessary equipment to open the Indian takeaway.

This is a partnership, we will be both put three thousand pounds out of our own pockets and borrow ten thousand six hundred and fifty pounds from the bank.

Once we have broken even then we will share the profits.

Secondary research

Whilst I was doing secondary research about Indian food over the Internet and market reports, I found out that it accounts for the highest share of the ethnic food markets.  Retail sales rose by approximately 6% between 1996 and 1998 to reach a value of 250 million pounds.  Ready meals are the biggest selling product, although these have seemed slow in growth rates since the mid 90s.

                                                                Source: AC Nielsen 2001

The graph above shows Indian food has more value than any other ethnic foods and more percentage share.  This is an advantage to me because my business is an Indian takeaway, which also gives me great comfort and a source that will motivate me even more to succeed.

The Indian food market has five main flavours: tikka masala, roga josh, korma, balti and madras. Consumers are looking for flavours, which reflects what they see in takeaways.  This has given structure of growth in all areas of the market.

Source: AC Nielsen 2001

The graph on the above shows that there is more value in ready meals than in cooking sauce or ingredients, takeaways are always preparing ready meals for their customers therefore, and this can be an advantage for turnover profit.

Forecast 2002 to 2006

The Ethnic food market will continue to grow strongly over the medium term.  There are a variety of foods to be brought to the market and consumers’ interest in overseas recipes continues to develop.

        Source:  AC Nielsen 2001


The UK population is an ageing one; child population is decreasing whereas over 45 year olds’ group is forecast to grow.  This affects the ethnic food market in various ways.  People are retiring earlier and are on higher incomes, these groups have more time available to spend their money on takeaways.  This should influence positively on all areas of the market, which means my business the ‘Tandoori Junction’ will be having customers, aged 45 and over.  The fall in the under 30 year old population may lead to a slow down in sales of ready meals.

Workingwomen are important consumers of Indian ready meals with 38% having eaten a complete ready meal at takeaways and at home in three months prior against a mean of 30%.


                                                Source: Annual abstract of static’s 2001 (the Stationery Office)

 Secondary research: Market analysis

The UK market for ethnic foods grew rapidly in the late 90s, with sales rising by 29% to £848m between 1996 and 2000.  The largest sectors of the market are Indian and Chinese, with TexMex, Thai, Caribbean, Indonesian/Malaysian and other cuisines taking up smaller market shares.

The ethnic foods market has grown more rapidly than the food market as a whole, for a number of reasons.  Expenditure on food increased in the late 1990s, as levels disposable income grew.  Much of the rise was dedicated to trading up the more premium products and changing to more exciting options.  The wide range of cooking media focusing attention on new eating trends, as well as the increased accessibility has also fuelled this.  Of long haul travel.

Ready meals are a simple entry point into the various ethnic food dishes for many consumers.  The chilled ready meal market in particular saw booming sales in the late 90s, with frozen options seeing greater investment on the part of suppliers more recently.  They are also a convenient way to offer variety in the diet.  Furthermore, accompaniments have seen a rise in sales, as consumers have demanded more authentic eating experiences.

The suppliers to the ethnic food market vary greatly in size.  A number of the UK’s major food processors have a presence in various sectors of the market, but there is also room for many small brands, including those, which are sourced directly and imported for distribution.

The ethnic food market remains in a growth phase and sales will continue to rise year-on-year in the medium term.  There are still many dishes and recipes, as well as cuisines, too be brought to the market – and for the time being consumers are receptive to new options.

Healthy annual sales growth has been a feature of the sector in recent years, as higher disposable incomes have enabled consumers to spend more on eating out and demands for convenience foods have grown.  Store expansion by the leading fast food brands continues to be an essential driver affecting annual sales growth.

The best performing sector last year was chicken, which is often perceived as a healthy fast food option.  Improvements to outlets, new larger outlets and attempts to attract more family dinners have all helped sales.  The fish and chips sector- the traditional British takeaway – continues to suffer from fragmented structure, a lack of branding and continued competition from global fast food brands.  Indian and Chinese takeaways form the largest sub sectors in the ‘other fast food and takeaway outlets’ sector.  These outlets suffer from the same problems as the fish and chips sector.

The fast food and takeaway market is dominated by global brands, led by McDonald’s.  The market is forecast to increase at approximately the same rate in 2002 as in 2001 and should experience steady annual growth up to 2006.  An increasing number of workingwomen, more dual-income families with children and more single-person households will be among the factors influencing sales.  Store expansion will continue and ordering via the Internet will become a feature of the market.

Source: Keynote Market Report 2001,


Source: Keynote Market Report 2001,

The graph above shows that takeaways and restaurants are doing very well than retail sales year by year.  It shows it has had an 11% increase in 5 years.

The graph below shows that more people in C1 social group purchase takeaway food

Market analysis and Market plan

Primary Research (competitor analysis)

To find out what people think about Indian Takeaway I am doing primary research on an established takeaway in the Sparkbrook area of Birmingham called ‘Tandoori Plaice’.

The reason why I have chose this is because I would like to open my own Indian Takeaway in Small Heath and want to find out the overall statistics from our closest competitor in proximity such as statistics on customers, opinions on food price, quality etc, so this information will enable me to plan for my own business.

For the primary research I have prepared a questionnaire aimed at ‘Tandoori Plaice’ customers to see what their opinions are on the takeaway.

‘Tandoori Plaice’ is a small business, which is owned by a sole trader.  Mr Ali the proprietor has owned his Indian takeaway for 7 years situated on Stratford road in Sparkbrook.

For my primary research I have used a questionnaire for the customers of ‘Tandoori Plaice’ to answer my questions.  From the questionnaire I have found that there are more males than females that purchase in the ‘Tandoori Plaice’ takeaway.  My findings suggest that most ‘Tandoori Plaice’ customers are aged between 31-40 years old.  Customers have said that prices are reasonable, meaning, and not too expensive and the quality and service is very good at ‘Tandoori Plaice’.  Most people spend about £16-20 and come once a week.  People have said that the location of ‘Tandoori Plaice’ is very good, and also they have a variety of food flavours to choose from as you can see in their menu.

Customers have said that if a new takeaway in the vicinity opens then they should provide good customer service, good quality and price ranger of products.

Join now!

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. ...

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