03/09/2017 Business Plan of Food

Hub

AMIT SHARMA, ANUP KOPPAD AND BRAJESH KUMAR

FOODHUB
Contents
1.Executive Summary ................................................................................................................................... 2
1.1 Objectives ........................................................................................................................................... 2
1.2 Mission................................................................................................................................................ 3
1.3 Keys to Success................................................................................................................................... 3
2. Business Description ................................................................................................................................. 4
2.1 Company Ownership .......................................................................................................................... 4
2.2 Company Locations and Facilities ...................................................................................................... 4
3. Product Description .................................................................................................................................. 5
4. Competitive Comparison .......................................................................................................................... 5
5. Market Analysis Summary ........................................................................................................................ 6
6.Marketing Strategy..................................................................................................................................... 7
6.1 Marketing Programs............................................................................................................................ 7
7. Current Operations and future operations: .............................................................................................. 8
8. Management Summary ............................................................................................................................. 9
8.1 Management Team.............................................................................................................................. 9
9. Pro-Forma Balance Sheet........................................................................................................................ 10
10. Pro-Forma Profit and Loss Statement ................................................................................................... 10
1.Executive Summary
Food Hub is a locally owned food outlet that will be positioned as an Unique food restaurant
through our creative approach to the company's image and detail presentation. Food Hub will
provide a combination of excellent food at value pricing, with fun packaging and atmosphere.
Food Hub is the answer to an increasing demand for tasty and local food, to be consumed while
spending fun time with family and friends in food Hub.

In today's highly competitive environment, it is becoming increasingly difficult to differentiate

one food outlet from another. Bangalore is a city where we find people from different states and
also countries. So, we have a plan to open a food outlet where we aim to provide special/unique
food of different districts of Karnataka. We would be opening 12 different food stalls/stores as a
part of initial entry strategy in our food hub.

Our main priority is to establish one outlet in a mall with more footfalls, preferably in one of
prominent shopping malls in Bangalore. Later, our effort will be a further development of more
retail outlets in the surrounding area.

This plan is prepared to obtain a location for the initial launch of this concept. Additional financing
will need to be secured for the two subsequent outlets, anticipated in month 13 and early in year
three. The financing, in addition to the capital contributions from shareholders, will allow Food
Hub to successfully open and expand through year two. The initial capital investment will allow
Food Hub to provide its customers with a value-driven, entertaining experience through the
creativity of its founders.

Food Hub will entice youngsters to bring their friends and family with our innovative environment,
Fresh and popular foods with good quality.

1.1 Objectives

• To establish a presence as a successful local food outlet and gain a market share in
Bangalore’s fast food industry.
• To make Food Hub a destination spot for mall.

• To expand into a number of outlets by year three.

1.2 Mission

Our main goal is to be one of the most successful food outlets in Bangalore, starting with one retail
outlet located inside a major shopping mall as a "market tester."

Our main focus will be serving high-quality food at a great value.

1.3 Keys to Success

To succeed in this business, we must:

• Create a unique, innovative, entertaining menu that will differentiate us from the rest of the
competition.

• Control costs at all times, in all areas and implement a conservative approach to growth policy.
Although, we provide more than enough fund to open more than one outlet, we want to be on
the safe side of the business.

• Sell the products that are of the highest quality, as well as keeping the customers happy with
all of our product categories from food to store merchandising.

• Provide 100% satisfaction to our customers and maintaining the level of excellent services
among other competitors.

• Get access to high-traffic shopping malls near the target market.

• Promote good values of company culture and business philosophy.

2. Business Description

Food Hub is a platform provided to the different districts’ famous stall/store/small restaurant
vendors who are not able to scale up their business. Our outlet also provides excellent and
friendly customer service to support the ambience of fun, energetic and youthful lifestyle.

Our store will feature displaying our items which are being sold so that they are able to see it on
the display TV and choose which they want to eat. Our customers will also be able to read our in-
house brochures in regards to all knowledge about the benefits of the items they are going to eat. Our
store will be decorated with fast food setting, such as a bright counters and display menu on the wall.

2.1 Company Ownership

Food Hub is a privately held company. Amit Sharma, Anup Koppad and Brajesh Kumar are the
joint owners of the company. All hold an MBA degree from XIME, Bangalore, true entrepreneurs
by heart, with specialization in Marketing Management.

2.2 Company Locations and Facilities

Food Hub locations will range in size from 3500-4500-meter square and will seat from 100-120
guests. Our first location will be on the larger end of this range. The location will feature its own
originality in other brand building attributes. We will equip the outlet with modern furniture
and aim for cleanliness and an open feeling.

The space selection will be chosen based upon the following criteria:

• Community size: minimum of 800,000 people within a radius of 8 kilometers.

• Tourist destination.

• Easy access.

• Large percentage of teenagers in the community.

All of these qualities are consistent with Food Hub' goal of providing a top-quality food
experience. We want "word-of-mouth" to be our best form of marketing, where our customers
value our brand as something exciting and cannot wait to tell their friends and neighbors.

3. Product Description
• Sri Sairam’s Chats and Juice – Malleshwaram
• Puchka’s – Marathahalli
• Dadar Vada Pav – Indiranagar
• Khan Saheb Grills and Rolls – Indiranagar, Bangalore
• Sri Guru Kottureshwara Davangere Benne Dosa, Davanagere
• Just Fish – Fish Experts, Mangalore
• Shri Sai Prasad Khanawali, Bijapur
• Mudde Madappa Mess, Majestic
• Karnataka Delicacies – A Foodhub Venture
• Chandrappa Hotel Restaurant, Mathikere

4. Competitive Comparison
Although Foodhub shares many similar features with other popular street food vendors operating
in Bangalore like Dyu Art Cafe (Koramangala 5th block), V V Puram Food Street Bangalore
(V V Puram), etc , It is not based on a single kitchen model. Foodhub provides the unique feature
of having all possible local street taste under one roof at most affordable price range.

Foodhub is not designed to compete directly with the restaurant chains but to promote a fast food
culture with quality and convenience. Unlike other fast food networks, Foodhub will not focus on
a single kitchen model but will utilize the best cooking art which prevails on streets of a given
place/city/state providing diversity and innovation in taste. Every food stall will be taken care by
their own dedicated kitchen staff which are the original street vendor from different place
handpicked by our management executives.

Foodhub is meant to complement the already well-established food chain network and
infrastructure by integrating the vast street food vendors into the system. Well established food
chains like Taco Bell, KFC, Burger King, Dominos, etc have a huge customer base but most of
them belong to upper & well to do segment of society who have enough disposable income,
compared to them a common man will always prefer a place where he/she will get the basic
services and maximum return of their expenditure. This is the space where we as a service provider
are looking to provide maximum value to our customer using our model of collating different street
food vendors which are quite famous in their domain of work.

High end Restaurants and Food chains cannot give a price range which can be affordable by all or
atleast by a major segment of society, This segment will always cater to low price and fast delivery
food items. Foodhub will allow its customers to leverage different taste with certified quality
provided by our Brand under a single roof within affordable price range very much similar to what
they used to have on streets. Lower price range with no compromise in taste & quality will always
be our point of difference as compared to our competitors. We will make money with increasing
number of footfalls and positive word of mouth by our satisfied customers.

Food Hub has several advantages over its leading competitors:

• Unique "fusion" concept of food items.

• We expect a high degree of enthusiasm and offer a fun store with friendly staff, that reflects
the company's youthful and energetic culture.

5. Market Analysis Summary

Consumer expenditures for food in Bangalore is more compare to another city. The increasing
number of new establishments such as fast food franchises, fancy restaurants and gourmet bakeries
around Bangalore has shown a significant growth in this sector.

A much broader appeal exists for weekend slots because those are the days when most of our core
target market enjoys the mall going activities.
• Age - Youngsters, single, currently enrolled in college and high school.

• Family unit - We will also appeal to families (young families) with children.

• Gender - We will target both sexes.

• Income - We will appeal to the medium income individuals and to all in the lower medium
income bracket.

Our concept will have very broad appeal. It is our goal to be the hip destination for food cravings.

6.Marketing Strategy
Our strategy is based on serving our markets well. We will start our first outlet as a "market tester"
that could become a model of the expanding number of outlets in the future. Concentration will be
on maintaining quality and establishing a strong identity in the local market.

A combination of local media and local store marketing programs will be utilized at each location.
Local store marketing is most effective, followed by print ad. As soon as a concentration of stores
is established in a market, then broader media will be explored. We believe, however, that the best
form of advertising is still "buzz." By providing a fun and energetic environment, with unbeatable
quality at an acceptable price in a clean and friendly outlet, we will be the talk of the town.
Therefore, the execution of our concept is the most critical element of our plan.

6.1 Marketing Programs

We will deploy three different marketing tactics to increase customer awareness of Food Hub. Our
most important tactic will be "word-of-mouth" and in-store marketing. This will be by far the
cheapest and most effective of our marketing programs because of the high traffic in targeted
shopping locations.

The second tactic will be local store marketing. These will be low-budget plans that will provide
community support and awareness of our facility. The last marketing effort will be utilizing local
media. Although, this will be the costliest, this tactic will be used sparingly as a supplement where
necessary.
• In-Store Marketing

o In-store brochures containing our concept and philosophy.

o Wall posters.

o Design concept.

o In-store viewing of making fries process from cutting to frying.

o Standing signages inside malls’ lobby/aisle.

o Outdoor signage (if possible).

o Grand opening promotion.

o Party catering.

o Merchandising items.

• Local Store Marketing

o Brochures.

o Free occasional t-shirts at local stores events.

• Local Media

o Direct mail piece – containing brochures sent to surrounding addresses.

o Web page – containing company philosophy, history and news.

o Newspaper campaign – placing several large ads throughout the month to explain our
concept to the local area.

7. Current Operations and future operations:

Currently, our team is working on setting up the physical space for 10 outlets from several districts
at one place and we have considered ‘Mall’ to setup our initial operations and this is because of
the ‘footfalls’ which matter a lot in this particular segment of business.

Our business would be supported by the tailored IT systems to help the processes such as app
development, website development, ERP support, delivery management system, etc in the coming
days to make the process fully functional. Strategic Marketing is very crucial in this competitive
business as stealing your business idea is quite common and modifying it to make it more better is
known fact. So, we would concentrate on continuous efforts on unconventional ways of
promotions as the business grows with time.

We know that there is good scope for this project but unless we visualize on long term objectives
and growth and continuous developments and innovation, there is less scope for us to grow. So,
we believe that in this service sector, satisfying both the parties, i.e. the vendors and the consumers
is important and must and these would be supported by both technology and the dynamic strategies
which we use to get hold of the market.

8. Management Summary
The initial management team depends on the founders themselves, with little back-up. As we grow,
we will take on additional help in certain key areas. Part of our basic philosophy will be able to
run our executive management as a "knowledge sharing" fellowship. We will not add additional
overhead until absolutely necessary. This will mean that the initial staff support team will have to
work extra. By doing this, we will keep our overhead as low as possible, allowing us to adequately
staff our outlets. This will also allow us and future business partners to recoup investments as
quickly as possible and enjoy a higher return.

At present time, Food Hub is being owned by its 3 founders. Others that have helped on the
development of this business venture will be offered an opportunity to grow together with the
company at the appropriate time, and when the time comes, the 3 founders’ share will be
consolidated as one entity.

8.1 Management Team

Food Hub is currently the creative idea of its three founders. As the company is small in nature, it
only requires a simple organizational structure. Implementation of this organization form calls for
all three individuals to make all major management decisions in addition to monitoring all other
business activities.As we expand into multiple locations, each location will have a primary site
manager.
9. Pro-Forma Balance Sheet

Year1 Year2

Particulars
Liabilities 2160000 3677301
Capital 10672301 10672301
Total Liabilities 12832301 14349602

Assets
Fixed Assets 1500000 1200000
Depreciation 300000 300000
Capital work in progress
Cash 2000000 500000
P&L a/c -1517301 11582201
Total Assets 2282699 13582201

10. Pro-Forma Profit and Loss Statement

SALES 1styear 2ndyear

Total 15525000 44640000
1st quarter 1800000 8316000
2nd quarter 2970000 10800000
3rd quarter 4320000 12240000
4rth quarter 6435000 13284000

Margin (60%) 9315000 26784000

Operating Cost
Labour Cost 48000 54000
Miscellaneous 24000 26400
Property Cost 3000000 3000000
Utilities 25000 25000
Tax 3407926 9799024
Waste Removal 27375 27375
Insurance 200000 0
Advertising
Expense 2000000 1000000
Delivery Expenses 100000 20000
Maintenance Cost 500000 500000
Furniture Cost 500000 50000
IT Expenses 5000000 500000
TOTAL 14832301 15001799

Profit/Loss -5517301 11782201