Factors Affecting Consumers Eating-Out Choices in India

Questions: To conduct a survey to find out if people are interested in the new Buffet restaurant idea. To determine the right target market for the new Buffet. To measure the feasibility of the new Buffet restaurant in Karolbagh, Delhi. Answer: Introduction: The main purpose of this business plan is to make Indian restaurant where customers can get the best of regional cuisine from all parts of India. There is a plan to have an experienced staff that will make delicious Indian dishes using only the finest and freshest ingredients and spices. For make it reality, the strategic business plan needs to be established. The location for this business plan has been selected at Karol Bagh, in New Delhi. There are many factors which makes this chosen location a most feasible place to set up a new business. Driven by the average growth rate of 7 to 8 percent over last few years and three fifty million strong and growing middle-classes with enhancing purchasing power, the business market of India is reforming the worlds economy. Investment in almost every industry (Food, Education, Retail, Healthcare, and Energy) of the nations economy has a promise of high returns that has caught the attention of foreign franchisees and the investors. The start up budget cost of Rs.1236000 has been estimated for make this project a successful one. Rationale: Significant economic and dynamic facts: India has experienced acceleration in sustainable growth rates per capital income over the previous years (Ali Nath, 2013). It has been grown by about 23% in 2010-2015. The positive fact is that the nation has been successfully increasing urbanization and rising disposable incomes, which encourages large number of business entrant. The present size of the Indian food industry stands at Rs 247680 crore per annum and is expected to increase at 11 per cent by the year of 2018. In addition, New Delhi with a popularity of 16.78 million will definitely consider a target customer for the new project. Another factor is that Delhi, the capital of India one of the favourite places of the foreign investors compared to any other Indian cities. The restaurant sector is a significant element of the Indias economy and new employment opportunities in this industry should prominently grow in the future as a result of the direct demographic changes. However, the national consumers spend only 2.6% of their food expenditure in restaurants and hotels. On the other hand, British, American consumers spend 29% and 46% respectively. These statistics indicate that there is a large scope for the growth of the food business in India in the coming years. Menu diversification: Indian consumers are seeking variety of menu. High-income consumers are like to experiment various fusion buffet and new generation are willing to taste new foods at their daily schedule. Therefore, an All you can eat buffet, Fusion Buffet will surely gained the popularity with the industry growth. Number of Restaurants in India The assessment of total number of restaurants in New Delhi is not a very easy task. Most of the food service providers get their licenses from the local municipality. The license has mainly taken from the point of view of hygiene and health. Therefore, the authority needs to follow all legal proceedings before starting business operation for this project as well. The roadside restaurants are very popular in India. So the location of the business must be selected in such a way, where number of customers can get their fusion buffets at the easiest way. Restaurant valuations and Feasibility studies: The restaurant business has not yet flourished fully into a mature business in India. In spite of that, it has been evaluated that there is a huge market scope in India mostly because of the competition and changing market trends. These stimulated largely at this industry expansion in all major metro cities like New Delhi. May be for this reason, the many restaurants change their operation one hands to the others. Restaurants valuation, indeed, an important factor, needs to be handled with specialized manner and the appraisers of restaurant real estate generally consider three approaches for valuation: the sales comparison method, the cost method and the income method. Each has its own strength and weaknesses. Here the cost approach should be the most feasible because it will consider the estimated cost of buying a site appropriately for fusion buffet development. By analyzing both the developmental cost figures and current market conditions and considering other attributes like loca tion, size, standard and facilities, this project is completely feasible. It is also expected that this investment will generate high returns and anticipated income can be covered its expenses in the long run. Mission To serve high quality delicious Indian cuisine at the reasonable price with a little bit of twist of local flavors, receiving good customer response is the ultimate mission of the company. Vision Establish a diversified food variety by incorporating best of the cuisines from different parts of India along with premium quality services is the strategic vision of the Fusion Buffets. The company is willing to achieve the leading position in buffet restaurant business in New Delhi and enable sustainable growth and industry progress. Aim To bringing diverse taste of Indian foods with high quality customer services is the main aim of this business plan. Figure 1: Estimated highlights (Source: Created by author) Objective To target high income Indian consumers who are seeking variety in their choice of food To achieve average sales between Rs5000000-80000000 in a financial year To maintain gross margin 71% in the initial phase and ensure it to grow by 74% in the next phase so that 77% growth can be achieved within three years from the date of inception. To establish a brand recognition in India Design and Structure of the report The concept of the proposed business should be clear and realistic. So this business plan needs to highlight a perfect business concept including all key elements like target market, list of food deliveries, features, planning for business involvement and so on. These strategic concepts will help to achieve the vision and mission statement of the Fusion Buffet. A study of business feasibility is another component which assesses how this business plan is realistic. There are five major areas needs to be researched in this section, including the food service, related food industry, market capitalization, organizational aspects and financial factors. The direction of the business efforts should be well directed so that emergent resources used in optimally. For analyzing the feasibility of this business plan, it is required to use business model highlighting factors like the core strategies to enjoy the competitive advantages. The business model will help to develop business networks, which are essential for sustainable business ventures. The brand value enhancement can be increased by the use of a strategic business model. The entire business proposal is depends on the business plan. It will help Fusion Buffets to reach their goal within a time frame. The realistic plan must incorporate the risk factors which can often be diversified with proper planning. A proper start up budget with future investment estimation is an essential part of the new venture, like Fusion Buffets. Relevant Models and source of information The primary market and industry research will be done for understanding the growth factor of the business. The relevant information and data may be collected from the FSSAI (Food Safety and Standards Authority of India), journals, books related to hotel and restaurant industry of India and many more. The management tools like SWOT and PESTEL will be used for analyzing future market scope. Actionable assumptions It will assume that the current food industry in India is stable, growing and no economic downfall/ recession has been take place in the recent times. It will also anticipate that no capital scarcity is there and the sufficient resource can absorb all operational expenses related to this business. This will assume that there are no sudden changes in market analysis findings and demand of the buffet food industry. Timescales for achievement Then following table is important for achieving the milestones with dates and people in change and budget for each. This schedule highlights the emphasis for planning and implements it into a realistic way: Figure- 2: Plan of activities (Source: Created by Author) Milestones Start date Finish date Managers Department Site selection 1.8.2016 5.9.2016 Founder Management Business Design 10.9.2016 1.1.2017 Founder Management Website Design 1.1.2017 25.1.2017 Design Manager Website Restaurant furniture and others 5.1.2017 1.2.2017 Head of the Admin Management Bar, restaurant and Kitchen Equipment 2.2.2017 28.2.2017 Head of the Admin Management Construction of Fusion Buffet 1.1.2017 23.4.2017 Founder Management Inspection 15.3.2017 31.3.2017 Head of the Admin Management Recruitment of font staff, back staff, head chef 1.3.2017 1.4.2017 Head of the HR Human Resource Department Opening of Fusion Buffets 1.5.2017 1.5.2017 Founder Founder Business and marketing plan check 1.12.2016 ongoing Marketing head Marketing Finance review 1.8.2016 ongoing Finance head Finance Table 1: Time scale for achievement (Source: Created by Author) Business Concept Product and services Fusion Buffets will try to experiment a lot of Indian, southwest and Asian foods, which is very popular in India, specifically in metro cities, like New Delhi. In metros, some important demographic changes have emerged in recent times: a lot of working women gets a little time to cook at home; a huge people travels more and is exposed to different types of cuisine (English, 2012). So the variety of taste should be the USP of the company. Nowadays, major sections of people are health conscious (Srivastava Bhano, 2016). Fusion Buffets will pay a special attention to make food healthy and delicious concentrating more on experimental twists and turns. It will try to experiment trends like Chino latino which is a Chinese style of cooking adding some exotic flavors or Indo-latino where a typical herbs are used in preparation of Indian Tandoor dishes. The Indian customers are also like Sushi, Hawaiian and Japanese foods cooking fusion with a lot of seafood, which are healthy and tasty as w ell. Fusion buffets is going to introduce a new recipe like the fresh Indian ingredients cooked in Thai style. With an emphasis on ingredients such as vegetables, fish, grains and serve different types of main course is the USP of this business. The variation of food starts from starters where north Indian dishes like Chaat, Awadhi prawns, Shami kebab are very popular in Delhi. However, a large population of Delhi is coming from South and West part of the nation. So Fusion buffet is planning to present both the cuisine with a blend of new surprises. Apart from restaurant dishes, the bar and lounge are another attraction for high profile customers. Here the customers can enjoy their private time with a variety of drink options. The owner of the business is looking for a high standard customer services. So Fusion buffet is quite confident to have presented themselves as an ultimate destination to enjoy with food and drink. Target Market Karol Bagh has been selected for the food business because of its location to the very busy intersection of Ghaffar market and Ajmal khan road. This area is known for shoppers destination and situated at the Central Delhi. So the target market consists of high profile business people, middle-class families, tourists, couples and college-goers as well. All these target audiences will feel more appreciated by cool atmosphere and premium services. The separate arrangements of foods and drinks will be comfortable for the middle-class Indians (Okeiyi et al. 2014). The blends of good food with drinking option with a sophisticated environment would be ideal for dates, romantic meeting spot for the couples. Additionally, the target consumers for this business luckily have a high purchasing power, which is definitely a favorable factor for the new venture. Target Customers Age group Characteristics Delivered food items i) Business communities 30- 60 Preferred to eat healthy foods with premium quality soft and hard drinks To be introduced experimental starters added healthy quotient, supreme quality of hard drinks ii) Couples/Single end customers/families 22-45 Preferred to eat healthy delicious Indian dishes, deserts and soft drinks Availability of all types of regional Indian cuisines like north Indian dishes like dal-chawal, dal-makhani, south Indian dishes like idly, dosa, uttapam, eastern dishes like various fish items and east Indias famous chole butture and many more. iii) Teenagers 13-19 Love to taste fast Indian dishes Various types of rolls (Chicken, mutton, paneer), popular Indian cutlets, Chinese dishes iv) International Tourists/foreigners 25-52 Authentic Indian foods and international cuisines as well, premium quality hard drinks Traditional Indian dishes along with variety of international cuisines (sushi, Thai, continental) Table 2: Target Customers (Source: Created by Author) Value-added services Unique added services always generated more customer responses and increased the brand recognition (Thai Anh, 2016). It has been planned to present unlimited buffets services at a fixed amount. The rates will be varied with days. In weekend, rates must be higher but affordable. For additional promotion, the company will have a plan for discount services at the pick season so that more customers get an opportunity to taste their foods and services. The menu will be changing in every weekend so that customers can get fusion of new experimental dishes at a sophisticated atmosphere. There is a plan to employ exceptional staff with the can do attitude so that customers get the best services from them. Unique Features Indian cuisine encompasses a wide ranges of regional cuisines: for example, Delhi is a place of Dal makhani and chole bathure (north Indian dishes), whereas people from Kolkata is fond of fish items. So the idea will to bring the taste of Kolkata and serve it in a traditional way in front of the Delhi audience. The seasonal dishes will also be introduced at times so that people can celebrate the occasions with the appropriate foods as well. Fusion Buffet will accept cash and cards both. The owner of the business is also planning to collaborate to other businesses for the promotional events. The idea is to promote this food brand with the soft-drinks companies. It will provide special offer like buffets coupons along with soft drinks where customers will pay only the buffet amount excluding the cost of soft drinks. It will get the additional response and returns will be higher. Stakeholders Response The stakeholders response for any new entrant business is always an important consideration because it is directly related to the sustainability of the venture (Javed, 2015). Future Buffet restaurant shall have two different kinds of stakeholders: internal and external. Internal stakeholders who run the business operations directly like Fusion Buffets owner, employees, manager, chefs, shareholders, directors. Shareholders or investors of Fusion Buffet are very cooperative so far and ready to invest in this business so that they will earn good return against such investments (Siemering, 2014). The owner of the business is quite optimistic to get a good support in future business enhancement. Also the enthusiastic employees and administrative people of Fusion Buffet will be committed and motivated to give the best service to customers. Therefore, the business will get the best response from their internal stakeholders. On the other hand, the response of external stakeholders like custo mers, suppliers of the business will also be evaluated. The good response from the target audiences is already analyzed. Furthermore, the locally sourced vegetables, meats and seafood are all easily available at the area of Karol Bagh. Therefore, the new business can easily be flourished with the source of good suppliers response. Growth Opportunities The food service industry is growing rapidly and this sector is largely responsible for the nations GDP growth. Table 3: Growth Opportunity of the dining business (Source: Created by Authors) The growing market size can easily accommodate the new entrant business where the restaurant segments will continue to rise their per capital return because of: Increasing working professional who hardly gets time to cook Rapid development and consumerism Increasing purchasing power of individuals Rise in number of nuclear families Little barriers to entry allows for quick business opportunities Feasibility Research The feasibility research Plan It is always a matter of concern whether the opening of food dining business at Karol Bagh in New Delhi feasible in the future or not. Such feasibility must be planned strategically with highlighting the important components like industry analysis, growth opportunity of the delivered products and services, market analysis, segmentation and trends. The feasibility research will also evaluate the organizational structure and the financial sources, so that the business planner needs to take essential decisions for such business establishment. All these aspects need to analyzed in the feasibility plan section for mitigating systematic and unsystematic risks and ensure the long term sustainability. Needs of primary and secondary data The entire feasibility research will be done with the help of primary and secondary data. Primary data are those, which are collected for a particular investigation like market research feasibility study. The secondary information regarding this business plan will be collected from the different Indian restaurant sites, statistics from the Indian governments reports, books, academics, journal and various published articles. Here all types of information are relevant for doing such feasibility analysis because various sources explore different areas of the business plan. Research Methodology Procedures for data collection To determine if a new dining business can successfully generate high revenue in Koral Bagh, New Delhi, a business must be established. The strategic procedure of presenting such business plan will require comprehensive wide research including key components like market trends, competitors edge, market segment, growth, needs, market positioning and many more. At the beginning of the business plan, the offered products or services must be described. The interviews of various restaurant owners of India, their views, and approaches all are relevant for this feasibility studies. The following are the qualitative responses related to the proposed business plan. What do you think about eating out? Convenient than cooking myself Expensive Very rarely Doesn't matter Standard Deviation Responses All Data 16 1 3 0 6.44 20 (80%) (5%) (15%) (0%) Table 4: Habits of Eating Out in India (Source: Created by Author) How many times do you eat outside in a week? 1-2 3-5 6-7 Standard Deviation Responses All Data 10 9 1 4.03 20 (50%) (45%) (5%) Table 5: Satistics of eating out in a week (Source: Created by Author) How often do you eat in a restaurant? Frequently Sometimes Never Standard Deviation Responses All Data 11 8 1 4.19 20 (55%) (40%) (5%) Table 6: Statistics of Indian people to eat in Restaurant (Source: Created by Author). When choosing a restaurant what factors do you consider most ? Ambiance Variety Price Hygiene Service Other Standard Deviation Responses 3 8 2 4 1 2 2.29 20 (15%) (40%) (10%) (20%) (5%) (10%) Table 7: Choosing factors of customers (Source: Created by Author) The financial documents related to this food industry are then quantitative part of the business plan. In this financial part, the start-up costs, operational costs must be incorporated. In addition, the cost of labor, opening inventory, PPE, marketing, advertising, cost of furniture and necessary equipments all should be planned and analyzed. The most of the information will find related on websites selling the products that is required for start-up the business. The proper organizational space must be discussed for planning space accommodation. The desired for this project is between, 1800 to 2000 square feet. It can be assumed that 60 percent of the space will be used for dining, and 40% will accommodate for preparation, cooking and storage sections. The future renovation costs must be planned at the time of start-up cost estimation. In addition, market population must be researched for a realistic business plan. In that case, the census data will be required for getting accurate details of the population demographically as well as the details of household income distribution and per capital income of the selected area, i.e. New Delhi. Data analysis procedures The above collected data must be analyzed both in the way of qualitative and quantitative. A SWOT (Strengths, Weaknesses, opportunities and threats) analysis will be discussed from the market information and competitive analysis. It will help to identify the internal factors that are significant to achieve the business objectives. The future scope and capabilities, a competitive advantages must be developed. It ensures the future stability. Finally, for ascertaining if Fusion Buffets will be able to generate and maintain a profit, profitability study will needs to be evaluated. This will be done by analyzing sales forecasts, statement of cash flows, breakeven analysis to ascertain if Fusion Buffet is indeed profitable. Assumptions It has been assumed in this business plan that dining business is growing and this project is getting a good response from the stakeholders side. The assumption is also made that Fusion buffets will get their distributors and suppliers easily from the market Limitation The estimated sales, revenue, and related costs may be fluctuated. It is not possible to highlight all the possible factors within limited resources and time. Key areas of feasibility research Products/Services feasibility Fusion buffets will offer fresh and mouth-watering dishes with a variety of regional Indian cuisines. Along with that, the various alcoholic and non-alcoholic drinks like champagnes and wines will be served as customers demand (Byrd et al. 2016). The lunch and dinner will be served at the scheduled time. Every day the lunch will be served at 12:00 am to 3:00 pm whereas dinner will be ready from 6:00 pm to 11:00 pm. Most of the target audiences are preferred to have their dinner at restaurant in India. So the dinner serving time will be longer than lunch time. Planning for a fixed plate menu will also be considered for getting more response from the customers. It means serving foods will not be changed as per the customers request and price of that item will be lower for this reason. This will attempt to get the higher returns despite the lower price will be charged against those item. In addition, the main course dishes will provide fusion of Indian cuisine: from North Indias favouri te Dal makhani to East Indias popular Fish curry all will be served on a daily basis. For the demand of international customers or tourists, Fusion Buffet will provide various international dishes adding Indian flavours in it. Additionally, the efficient employees of Fusion Buffets will deliver the supreme quality service. Figure 3: Estimated service of the business (Source: Created by Author) The research have been conducted (secondary research and questionnaires), for evaluating customer preferences towards the combination of bar, lounge, fine dining restaurants. The traditional Indian taste, preferences, availability of variety of drinks- all are the prime factors of the selection of the buffet restaurant by the Indian consumers. Industry feasibility The food service industry of India is worth $41.3 billion and growing at a CAGR of eleven percent (Hastings, 2015). The industry insiders have already estimated to reach 68 billion dollar by 2018. The most favourable statistics is that the age group profiles of those who eat out are between 21 to 30 years. It is promising that the youth of India are willing to eat out and directly contributed in growth of the industry. Majority of restaurants are established major cities where density of residential areas is high. Properties, which are near at workplace, are also in high demand. Therefore, the Karol Bagh destination is the ideal for this business plan because that area comprises of both and positioned at the Central part of Delhi. Table 8: Going-out habit of Indian Youth (Source: Quadri-Felitti Fiore, 2016) Competitive Analysis The franchise business model now is very popular in India since in mid- 1990s. The brands like Subway, CPK, Papa Johns, Dunkin Donuts, Starbucks, Pizza express all are very popular in all metro cities (Fong et al. 2016). But a good ethnic Indian cuisine is very rare to find. So there is a huge growth opportunity in this industry. The all food products of these brands are expensive and highly responsible for gaining obesity. It has been analysed that young Indian consumers are highly price sensitive and health conscious. Therefore, the products of Fusion buffets are quite appropriate according to the situation. It will surely get the competitive edge over the other established brands in the market. Figure 4: Variety of regional Indian dishes (Source: Dhaugoda Dang, 2015) Market Analysis Market segment: This business plan will appeal the broad base of audiences in both business communities and the residential people. The selection location is a junction of both. Primarily, Karol Bagh location was chosen for growing number of households and workplace premises. That particular area is highly populated of over 52000 according to the Census Report, 2014. The market study also highlighted that the area is comprised with a mixture of multi-family and single family housing whose average purchasing power is very high. Market Taste: Delhi people are quite nostalgic about the Indian cuisine and love to experiment different flavours from several parts of the India (Kasliwal Agarwal, 2015). However the international food franchises are quite popular but they can also comfortably eat Indian cuisine with their families, and friends (Singh et al. 2015). Market condition: Strengths Low price menu can be possible due to per employee cost is low Less barriers for starting up a food business in India (Hair et al. 2015) Less paper works required for getting food license Government intervention is lower Weaknesses Getting consistent suppliers are very difficult. Foreign franchisees are very popular nowadays in food market (Zannierah Syed Marzuki et al. 2012) Fine dining opportunity is not affordable for all Indian Majority of people still love to eat at home Provide adequate staff training system is missing (Hua et al. 2016) Employing and retaining quality employees are difficult Opportunities Trends related to eating healthier explores many business opportunities Average consumers purchasing power is gaining People gets little time to cook at home Young generation shows their interest to join this industry Huge offer extra catering services Threats: Operating costs gradually increases (Hou Henderson, 2016) Highly competitive Faithful distributors are very rare to find Promotional costs are high Table 9: SWOT Analysis of Indian market condition (Source: created by Author) Market positioning: Majority of consumers believe that meals at home are more hygienic and healthier than eating at restaurants (Appelroth, 2015). In that context, Fusion Buffet is ideal to work on a mission to deliver premier quality products with sophisticated atmosphere. Therefore, Fusion buffet will be positioned as the high standard authenticated Indian cuisine destination. Organisational feasibility A good managerial contribution is required for organisational development (Sahoo 2016). It is an essential part of service industry like food and beverages. Fusion Buffets is trying to establish a self-owned business. Therefore good management control can be expected from the management people of the entity. It is important to pay maximum attention in staff discipline, expert communication skills and offer expertise level of hospitality, customer service along with the food services. Then the service provider will surely achieve a stable internal management system within an organisation. Financial feasibility Pricing option: Most of the food service providers take advantage of fabulous credit terms with their suppliers (Barrows et al. 2016). They also take additional advantages of seasonality for example in local produce items. By this, organisations can easily focus on the controllable expenses of the labour and cost of goods sold. As a new start-up business Fusion Buffets will also control employee by recruiting local employees and local suppliers. The cost related to promotion and advertising can be restricted by using direct mail and mouth publicity strategy. Source of fund: Fusion Buffet is looking forward to submit their business plan to the nationalised bank to obtain a business loan at of Rs 5crores. It has been analysed that bank interest of nationalised bank is provide loan at a low interest rate, compare to other foreign banks (Hou Henderson, 2016). This loan will be used to purchase the restaurant assets and other necessary equipments. The cost of dcor, construction, operational expenses all are required a huge amount investment. A planned start up cost list will be helpful for analyzing the application of such funds: Start up expenses Amount (Rs) Cost of construction Graphic logo and name creation Contingencies Outdoor Sign Building improvements Working capital Pre-opening expenses Total Start-up Expenses Start-up Assets Artwork Walk In Cooler Commercial dishwasher with sink in table Stainless steel freezers (2) 20 blenders Ice maker with storage bin Stainless Steel Hood with Exhaust 3 Door reach in beverage cooler Sandwich Prep Reach Ins (3) Kitchen small wares Six burner Restaurant Range (2) Wood Tables (20) Liquid fire protection system Table cloths, napkins Art, Dcor Cash register +POS system Office Laptop Total Start-up Assets Total required start-up costs 15000000 156000 200000 40000 1000000 10000000 2250000 28646000 55000 25000 85000 120000 75000 40000 105000 100000 35000 27000 140000 525000 65000 19000 105000 90000 54000 1665000 30311000 Table 10: Estimated start-up expense details (Source: Created by Author) The above analysis shows that this food project is completely feasible and market-driven. So the business owners can expect a higher returns in the long run. Business Model The above feasibility research clearly indicates that the proposed business plan of Fusion Buffets is realistic and the goal can be achieved at the specified period. However, the unique business model is required to establish with specifying core business strategy. An essential resource for business sustainability and competitive edge needs to be addressed in a proper manner so that all management people can give their efforts for achieving the business goal (Rothlin McCann, 2016). In this section, each element of the business model is trying to established with its exclusive features. Business drivers Strategic Partners Customer segments Key service offering Value-added Activities Key resources Fusion buffets owner High class business communities, wealthy personalities like movie star, artists Offering fresh and delicious starters and main course menu with ever demanding wide range of drinks such as wine, champagnes, other liquors, Beverages i) Delivery ordered foods and drinks with short span of time ii) Serve high quality customer services by the front staff of Fusion Buffets iii) Wi-Fi network availability, air-conditioned facility, soothing music at the background can be available at customers request iv) Internal bakery system will incorporate into the business so that fresh backed food items can be delivered whenever ordered by customers. i) Good coordination within the front-end and back-end operational team ii) goods external relationships with stakeholders like distributors and suppliers, partners like Coca-Cola, Pepsi iii) full support from the promotional team which will help to establish brand name and get the highest customer response iv) Owners review system to enhance the service of the company with times Suppliers Middle class families, teenagers, High- end single, i) Offering tasty and varieties of regional Indian food items with made some twist and turn by maintain the ethnic feeling. ii) Youth loves to eat international cuisine (Barrows et al. 2016). Therefore, appointed chefs shall be comfortable to do international dishes along with Indian cuisine as well. i) Delicious food deliveries at minimal time with maintain cleanliness ii) Full cooperation from the manager and front-end staff for handling child like to provide perambulator for the convenience of the customers at the time of eating iii) Provide sophisticated atmosphere and well trained employee for customer experiences iv) Premium hygiene maintenance Distributors Couples Offering superior quality foods inspired by regional cuisines from India Cosy comfortable ambiance for highest customer satisfaction Employees and management people Regional and International Tourists, foreigners Offering Chino latino dishes which is a Chinese style of cooking adding some exotic flavors or Indo-latino where a typical herbs are used in preparation of Indian Tandoor dishes. Offering Sushi, Hawaiian and Japanese foods, which are healthy and tasty as well. Fusion buffets is going to introduce a new recipe like the fresh Indian ingredients cooked in Thai style. i) For adding facilities, Fusion Buffets will provide different types of books and International music for getting good response from the tourist and foreigners. Indian music can also be played and extend the Indian cultural heritage. ii) Add some uniqueness in food serving process like introduce a modern bar trills at bar section or dining under the soothing lightings or candles Cost Structure A mixed cost structure will be maintained for handling fixed costs as well as the variable costs like promotional expenses, staff salaries, design costs, repair and maintenance Relationship with customers Building a sustainable relationship by providing comfortable, relaxed, friendly, soothing atmosphere with premium quality services Revenue Streams Fusion Buffet will make its revenue through selling high quality foods and drinks for target audiences. Restaurant has enough floor space for arranging business meetings, family functions and other special events, theme parties. Key partners Fusion Buffet is looking forward to make agreements with indiamart, Flip card, e-bay.com to get kitchen appliances, and other necessary restaurant items so that they can get commission at the time of purchasing. ii)Partnership with Coca cola, Pepsi for delivering soft drinks. Partnership with Liquor manufacturers like Kingfishers, Back pipers are those who will deliver hard drinks on long term basis Table 11: Main business drivers of Fusion Buffets (Source: Created by Author) Core business strategy Selection of business strategy depends on the situation (Burlton, 2015). Here product differentiation strategy would be ideal for Fusion Buffets. The main essence of this business plan is to deliver Indian cuisines at reasonable prices. Therefore, Fusion Buffet can use this strategy to set themselves apart from key competitors. The product differentiation strategy will help to build its brand loyalty (Block et al. 2015). However, the product differentiation is the main strategy; the company should also concentrate the cost leadership strategy, which will enforce to reduce operating costs while charging coverage prices of restaurant industry (Bassi et al. 2015). For cost leadership approach, the products price needs to be checked on daily basis to maintain the price differentiation strategy (Alstete, Beutell, 2016). Generally, a good food at reasonable price is always desirable for customers and Fusion Buffets will implement this in their business model. Figure 5: Product differentiation strategy Source: Ibrahim, A. B. (2015) Core extension strategy Fusion Buffets need to develop its future expansion plan at the backend. Ansoffs matrix model is appropriate for business extension. This model has divided into four parts: product development, market penetration, diversification, and market expansion (Medarac et al. 2015). Figure 6: Ansoffs matrix model of Fusion Buffets (Source: created by Author) Competitive advantages i) Location is critical for success of the business (Krishna, 2014). Therefore, the parking convenience for customers will be taken care of with high priority because, parking-hassle is a common concern nowadays for the customers, especially when they eat put for dinner at the end of workday traffic. ii) A reasonable price structure for each dish will surely attract large number of customers. The management of Fusion Buffets will review their food prices with other existing brands so that the price competitiveness can be maintained. iii) Online food order system will enhance customer convenience. iv) Many of the small restaurants struggled due to lack of suppliers of grocery items (Reay et al. 2015). For these reason, Fusion Buffet tries to contact a large number of substitute suppliers so that customers may not feel compromised anytime. The management will give full concentration towards the highest customer preferences. Essential network establishment A proper network system is required to establish brand awareness (Rothaermel, 2015). Fusion Buffets need to plan promotional and networking strategy well. The company plans to se local radio as one of means for advertising. FM radio has gained huge popularity especially in the entry of the private players (Icmrindia.org 2016). It is also identified that the promotion via radio will be comparatively cost effective rather than television. The company will also try to promote their brand through their website. Nowadays, people like to book their table in advance. Fusion Buffets will also provide online booking system for making the entire system more customised and hassle-free. One favourable aspect of the food business is that once a potential customer steps into the establishment, the chances of purchase are very high (Lane Andersen, 2015). So constant reviewing promotional plan will increase the products attractiveness and brand awareness. Sustainability resources Business sustainability is always desirable factor for any start-up businesses (Hutt Speh, 2012). There are three pillars of sustainability: Economic stability, Social development, Protection of environment (Vignali, 2015). Economic sustainability: Fusion Buffets needs to take consider the Indian economic fluctuation in the product/price market. The operating costs have been increasing which required to be reduced by employee performance efficiency (Sahu, 2015). Once the business starts its operation, Fusion buffets will concentrate to reduce the promotional/advertising costs. The growth of the business indicates stronger operational relationships with its employees and industry people. Therefore, once the company successfully maintain high employee retention process, it will indirectly influence in the industry growth. The increased market share approach is also appropriate for business sustainability is the long run. Social development: Making the entire food processing system healthy and tasty is one of the key motivational factor for Fusion Buffets. The brand is already committed to deliver fresh, healthy Indian dishes. The staffs will be trained for maintain the hygiene and cleanliness. The owner of the Fusion Buffet is also pessimistic about using injurious food items like ajinomoto into their dishes which have huge side-effects (Annambhotla 2015). This social responses will surely help to develop business sustainability (Thai Anh, 2016). Protection of environment: Fusion Buffet is looking forward to save power consumption approaches at their restaurant area (Majumdar et al. 2013). The design team of the Fusion Buffets is going to use a high amount of natural lightening for their decor like use of candles at the fine dining area. The business is committed to prevent the pollution and keep their carbon emission low by the use of improved technological devise for their food processing system. Requirement of resources Primary Activities Secondary Activities i) purchase of raw materials, kitchen appliances, foodstuffs, technological devices (inbound logistics) ii) Font staff attendance for taking orders, serving the ordered foods at a short span of time and collect payments (cash and card) along with service tax and give receipts to customers. After that the cleanliness will also be maintained (operations) iii) Proper IT system use for taking online orders and free delivery service, online purchases (outbound logistics) iv) resource for market expenses, promotional activities, improvised menu, setting promotional events for generate customer responses (marketing) v) Superior customer service with high quality foods (inspired by the taste of India) and drinks at the soothing ambiance (Service) i) Training employees for providing better services ii) Conducting research and collecting feedbacks from potential customers iii) Increase items of foods after getting response of the target customers iv) Technological devise advancements and installation of crime protection system in IT devices v) Repair and maintenance of assets of Fusion Buffets vi) Trying to accept green technologies and recycling waste vii) Import various hard drinks like champagnes, wines for the international clients Table 12: Primary and Secondary Activities of resources (Source: Created by Author) Business Plan Business plan is the written roadmap to achieve Fusion Buffets goal (Ong Yussof, 2015). The future of this dining restaurant is completely depending on this business plan. The systematic approach will be taken for the management of this newly formed business. They are also looking forward to use investment-seeking approach to convey their vision to potential investors, bankers and the appointed management executive as well (McKeever, 2014). Furthermore, Fusion Buffet is also making an effort to attract key employees, deal with suppliers or simply to understand how to make the entire operation successful. Systematic Approach to deliver business plan Milestone (Activities) Star Date End Date i) Interaction with brokers and discussion about the site preferences 1.8.2016 31.8 2016 ii) Site selection 17.8.2016 31.8.2016 iii) Approval of final business location 1.9.2016 2.9.2016 iv) Legal papers proceeding at Karol Bagh Municipality , apply for liquor license 3.9.2016 15.10.2016 v) Financing of investors 1.10.2016 31.12.2017 vi) Engage in partnership deals (contractual) 15.10.2016 31.8.2017 vii) Engage in consultation team for recruitment process 20.10.2016 25.10.2016 viii) Hire recruitment Architect (Contractual) 1.11.2016 3.11.2016 ix) Contact service tax department and getting approval for service operation and received the service tax no for Fusion Buffets and license 1.10.2016 31.10.2016 x) Head Chef selection, Managerial people appointments 15.10.2016 10.11.2016 xi) Employee selection 14.10.2016 31.10.2016 xii) Received final Contractor copy 31.10.2016 1.11.2016 xiii) Hire interior design firm 1.9.2016 4.9.2016 xiv) Hire head kitchen Engineer 5.10.2016 6.10.2016 xv) Construction each kitchen, lounge, Bar areas as per model (after finalizing best tender option) 3.10.2016 31.12.2016 xvi) Restaurant design complete 1.2.2017 28.2.2017 xvii) Interior and Kitchen design complete 5.2.2017 28.2.2017 xviii) Fusion Buffets opening date sent to investors 31.3.2017 1.4.2017 xix) Final decision regarding Menu and Drinks 5.4.2017 10.4.2017 xx) Brand promotion via Radio, leaflets 1.4.2017 ongoing xxi) Media plan review 15.4.2017 Every month on 15th xxii) Approved service license and liquor license 20.4.2017 21.4.2017 xxiii) Corporate Brochure 15.4.2017 16.4.2017 xxiv) Website launch 20.4.2017 22.4.2017 xxv) Start website promotion 22.4.2017 ongoing xxvi) Employee training session 14.4.2017 21.4.2017 xxvii) Open corporate accounts (3) 20.4.2017 21.4.2017 xxviii) Restaurant opening and start operation 1.7.2017 2.7.2017 Table 13: Systematic approach of business plan (Source: Created by Author) Organisational Plan Implementation Fusion Buffet needs to ensure the smoothness dining operations. A full cooperative approach from the management side is highly desirable. The company is mainly looking for the expert level services from the font-end and back-end employees. The management makes sure that the distance of kitchen to restaurant area is minimal so that employees can easily serve the ordered dishes to customers. As per the operational plan, the kitchen section will be divided into four parts: north, south, east, west sections. However, the Chinese and other popular international cuisines will also make available to keep in mind Indian customers (youth-favourable) as well as the international tourists. The organisational structure, which is being approved, is as follows: Figure 7: Organisation Structure (Source: Created by Author) Production Blueprint Figure 8: Production Blueprint (Source: Created by Author) Marketing Implementation Plan Fusion Buffets has now realised that the success of the brand completely depends on unique marketing strategy. The marketing model is previously highlighted what approach they will take to gain the brand awareness (Monteiro, 2013). Initially, they will concentrate the product promotion via radio and through their own website, because it is cost effective and popular as well (Wheelen Hunger, 2012). Once the brand recognised by the target customers, they would try to increase more investment on the promotional activities via television, Hotel and restaurant magazines and online site as well. Therefore, Fusion Buffets will achieve these goals by using the following: Database: Fusion Buffets will begin their campaign by marketing to their existing database of customers. The company will send them personal emails fliers announcing their grand opening . The company will continually update its own database to capture attention of new audiences by providing a fishbowl for business cards in the lobby and offer a weekly or monthly drawing. Loyalty events/ birthday or other ceremonies: Fusion Buffets will offer birthday/ loyalty club proving a complementary starters like Resmi kebab, chicken tikkas, panner pakoras for the birthday person. A current report from the National Restaurant Association of India described how this simple approach could increase revenues as much as 15 percent due to repeat business (Rothlin McCann, 2016). Fusion Buffets will also be active in the local community and the organisation plan to take an active role by donating to sport clubs, under-privileged charitable organisation, local churches in the local area of Karol Bagh. They have additional planning for participating in the cultural/Environmental awareness programs, food events and many more. Fusion Buffets will also strive to develop rapport with local business in the area of central part of Delhi as quick, comfortable lunch choice. In the future, the organisation plan on establishing a marketing campaign to call on the local business in the marketing are, deliver sample menu and encourage them to consider Fusion Buffets as the restaurant of choice for their next business lunch on. Product position plan Figure 9 Hutt, : Product Position Plan (Source:Speh, 2012) The product position plan is indicating the prices of the food products will be moderate since the customers of high profiles will be visiting the restaurant. On the other hand, the product position map is also signifying the good quality of food that can attract more customers (Rothaermel, 2015). Gathering more customers will ensure the enhancement of the business profitability. Sales Plan Sales Strategy While undertaking a skilled process of sales planning, it is important to identify the peak times (Terho et al. 2015). In case of restaurant, the company needs to keep the focus on good crowd. The crowded place is always attracted to the customers and the line should be moving. Another most important aspect is to select the convenient foods, which can satisfy the customers tastes (Navarro, 2015). It is to be indicated that the formulation of a sales plan must contain the process of developing the repetitive business. The regular customers are given the discount coupons, which are quite effective for re-visiting the restaurant. The selection of the menu is also much essential in such cases. Since, the restaurant is focusing on the high profile customers and foods of the moderate prices, the variations will be on regular basis. Moreover, the customer feedback survey will be undertaken before they are leaving the restaurant. The gathering of such feedbacks is essential for streamlining the food to match with the tastes (Shpak Nestor Yu, 2013). Therefore, the local people would be much interested in visiting the restaurants more often. The next segment is to provide the customer good ambience that can be comfortable for them to eat and spend quality time with the family. The restaurant will be including the home delivery services within a selected period of time. Sales Forecast Sales 2016 2017 Breakfast lines 161500 169575 Lunch Lines 130600 137130 Coffee lines 100000 105000 Take-out Dishes 123000 129150 Other 56000 58800 Total Sales 571100 599655 Table 14: Sales forecast Source: Created by Authors Figure 10: Sales Forecast of Fusion Buffet (Source: Created by Author) Total Payroll Plan Personnel Plan 2016 2017 Owner 500000 525000 Counter Clerks 1000000 500000 Bushboys 50000 250000 Kitchen 650000 550000 Total Payroll 2200000 1825000 Table 15: Payroll plan (Source: Created by Author) Budgeted income statement of Fusion Buffet 2016 2017 sales 850000 892500 Direct Cost of Sales 189000 198450 Gross Profit 661000 694050 Gross Margin % 78% 78% Expenses Payroll 236000 245440 Marketing/ Promotion 6000 6240 Depreciation 2500 2600 Music entertainment 3000 3120 Repairs maintenance 5000 5200 Utilities services (gas/electric/water/sewer) 6000 6240 Telephone/Communication expense 500 520 Insurance 12000 12480 Restaurant occupancy cost (Rent) 60000 62400 Printing/Paper/Postage/Subscriptions (deliveries) 2600 2704 Total Operating Expenses 333600 346944 Profit before taxes 327400 347106 Interest expense (8% rate) 72000 74000 Taxes incurred (30%) 98220 103131 Net Profit 157180 169975 Net profit % 18% 19% Table 16: Budgeted Income Statement (Source: Created by Author) Supply Chain Management Plan: Fusion Buffets will purchase its necessary food processing items like kitchen utensils, appliances, stationery items of the bar area from the online store like Indiamart (Indiamart.com, 2016). They will get a discount rate for bulk purchasing. Fusion Buffets will also contact local farmers of Karol Bagh to get fresh vegetables at the lowest prices. It will reduce the transportation costs as well. Communication Plan with Stakeholders: Prime Stakeholders Responsibilities and communication patterns Owners who have the main responsibilities to control over revenue and operational expenses Direct communication with all managerial heads to monitor every part of the business Identifying business problems and find-out remedies as soon as possible Business managers who have full authorisation to take care of daily restaurant operation Making bookings, social networking and business website promotional activities via emails, phones, on-line chats Suppliers who provides raw materials Maintain production control and forwarding reports to owners, managers via email, direct interactions Bank gives the financial strength offering loans and credits Improving cash flow, function of treasury management and enhance continuous funding by arranging meeting with owners of the Fusion Buffets within a monthly interval. 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