Feasibility Analysis to Start a New Indian Restaurant in UK

1. 0 FEASIBILITY STUDY: STARTING A NEW INDIAN RESTAURANT Best Solution for Assignment Writing Problems in Australia

2. 1 Table of Contents Executive summary:................................................................................................................2 1. Introduction:..........................................................................................................................3 2. Product and service description:...................................................................................3 3. The entrepreneurial team:...............................................................................................3 4. Market assessment:........................................................................................................... 4 5. Competition:..........................................................................................................................5 6. Marketing strategy:............................................................................................................ 6 7. Technical and production analysis:..............................................................................8 8. Management capability:................................................................................................... 9 9. Financial analysis:.............................................................................................................10 10. Required financing:........................................................................................................14 11. Economic impact:...........................................................................................................15 12. Conclusions and recommendations:.......................................................................15 Reference list:......................................................................................................................... 17 Best Solution for Assignment Writing Problems in Australia

3. 2 Executive summary: The current report deals with the feasibility analysis of a new restaurant in the UK that aims to serve Indian cuisines among the UK customers of the restaurant industry. The analysis has incorporated the assumptions and scope of business to gain profitability within the industry and target region. The business owner has targeted to locate the restaurant at the Barclaycard Arena as this is one of the commercial hubs at Birmingham, Alabama. However, the competition at this region is higher in presence of potential Indian restaurants. In that case, the increasing demand of the Indian recipes has allowed the market to incorporate further ventures in this region in the UK. Sample Report on Indian Restaurant To Buy Complete Assignment Help Writing Services Kindly Contact Us :- Toll Free: +61 879 057 034 Email - help@assignmentprime.com Website - www.assignmentprime.com Best Solution for Assignment Writing Problems in Australia

4. 3 1. Introduction: The current feasibility study will deliver the external feasibility of a new restaurant in the UK to gauge its acceptability among the target audience. Therefore, before the planning of a new venture is initiated, conduction of the feasibility study is necessary to understand whether the new idea of entrepreneurship is feasible enough to run the business in long run. In this context, Babin and Zikmund (2015) cited that detail market research and growth prospect of the company is important to understand whether the new venture would recover its initial investment and meet the primary goals of the company. Therefore, the current report will therefore deliver the probable market share and profitability that the new venture will acquire after execution of the business planning. 2. Product and service description: The business will be a restaurant of Indian Cuisines in the UK market to promote the products in the foreign market. Therefore, the key products and services in the new venture will be different flavours and essence of Indian culture and tradition through different types of dishes and food items. In that case, Krueger and Casey (2014) cited that product and service specification needs assurance of quality measure to offer value for money to the consumers. Therefore, the service attached to the Indian food items will be the communication, warm behaviour and care of the restaurant visitors with fulfilment of their needs immediately. 3. The entrepreneurial team: Name: “Indian Curry House” Address: The restaurant will be introduced in Birmingham, Alabama near the Barclaycard arena Best Solution for Assignment Writing Problems in Australia

5. 4 Telephone number and email address: The telephone number and the email address of the business will be of the owner of the restaurant. However, disclosure of the contact information will be after the approval of the business plan. Qualification: The minimum qualification of the owner of the restaurant needs to be masters in business management to develop an effective entrepreneurship planning and execute the same properly. However, qualification is not the barrier of an entrepreneurship development. Work history: The owner needs to have significant experience on a Indian restaurant to develop understanding on the requirements of the same. Moreover, in the opinion of Yeung (2013), an entrepreneur needs to have sufficient prior experience in that same area of responsibility to sketch a new ventures on the obstacles, faced by the individual. Therefore, the owner needs to have prior experience in the area of restaurant services to design the plan accordingly. Status: The current status of the owner of the restaurant is an individual and therefore, the business will be a sole trader. 4. Market assessment: Market demand: Demand of the Indian cuisine in the UK market has attained a steady growth during last decades due to the changing lifestyle of the residents of the same. The increasing number of restaurants in the UK has evidenced the same. The British restaurant is now facing lack of sufficient curry flavours to the target audience of the UK residents. In that case, the statistics of the Indian foods in Britain reveals that the number of customers, preferring Indian food items is phenomenal. As a reason, about 10000 Indian restaurants are serving the Best Solution for Assignment Writing Problems in Australia

6. 5 typical Indian flavour to the UK residents where the same serves more than 2 million meals in the UK every week (BBC Inside Out - Curry crisis. 2017). Market trend: According to the current statistics, the Indian restaurant industry is worth more than 2.5 billion every year. However, the section is facing a crisis of proper curry chef and other Indian cuisines in Britain. Use of Indian herbs and special spices has made the Indian recipes comparatively more popular than the local recipes and typical fast foods of the UK. In that case, the owners of the Indian restaurants in the UK are visiting India to find out potential chefs to deliver sufficient Indian flavour in Britain (Economic fears as Indian food prices soar. 2017). Thus, the Indian restaurants in the UK have a scope of gaining significant market share through introducing some unique Indian recipes. Changes: The price of Indian restaurant food has attained a steady growth of 18% in its price level more than a year in the UK. The economists have explained such hike in the price of Indian food in the UK as a significant hike in commodity price hitting the end product of the cuisines. In the opinion of Zhang et al. (2015), price hike reveals the lower purchasing power of the customers and therefore, lower sales volume during the financial years. However, crisis of efficient Indian chef has also contributed to create such situation. Therefore, recruitment of skilled chef would be another option to deliver diversified flavours at an affordable price range. 5. Competition: Competition is another factor in creating a new venture in the target market region as the level of competition reveals the level of market saturation and thus the further scope of the new venture to attain desired market share in Best Solution for Assignment Writing Problems in Australia

7. 6 the target market region. Following are some competitors in the UK serving Indian food. Competitors Location Prices Products and Services Lasan 3-4 Dakota £12.95 Indian cuisine, Building, James specifically the street, sea foods Birmingham B3 Raja Monkey 1355 Stratford £10 Speciality of this Road, restaurant is the Birmingham B28 south Indian thali Itihaas Centre of £16.95 Prawn related Dalkeith recipes are special with Indian herbs Mughal e Azam Stratford Road, £7.45 - £24.95 The restaurant Birmingham B11 serves the typical Mughal and Pakistani cuisines 6. Marketing strategy: Based on the above information and analysis following is the marketing mix that the restaurant would follow in attaining the expected market share and profitability in future. Product: Being the restaurant serving Indian cuisines, the new entity will serve the typical Indian foods including south Indian foods, north Indian cuisines, Best Solution for Assignment Writing Problems in Australia

8. 7 Bengali dishes and traditional tastes of the typical food items. In that case, the number of products in the new restaurant needs to be relatively higher than the other restaurants so that the target audiences would find wider option in Indian cuisines. As cited by Sheth and Sisodia (2015), range of products and services ensures encounter of diversified needs and requirements and thus, acquire a wider number of potential customers. Price: Pricing option reveals the value for money against the investments from customers to deliver equivalent value of the customers’ money. In that case, in presence of the other potential competitors at the same location, competitive pricing would be more potential option to offer the Indian cuisines at comparatively lower price range. Such pricing policy would attract comparatively more customers over its competitors due to availability of wider Indian cuisines at affordable price range. Place: As mentioned in the previous section, the location of the restaurant is at the Barclaycard Arena where the other restaurants are located. In regards of the location, Leonidou et al. (2013) commented that business would faster flourish at the commercial places due to high demand of the specified products. In context of the presence of other restaurants in this area, it is transparent that the place possesses higher demand of food items and thus, feasible place to open a new venture. On the contrary, Kumar et al. (2013) argued that location of a new venture needs to be at the needy places where the option of the same product and its availability is limited in nature. As mentioned in the competitors’ price range, the average price range of the entire product line needs to between £7 and £12 to attract customers for generating sales. However, the profit maximisation needs further increment in the pricing to retain greater margin in its profitability. Apart from price Best Solution for Assignment Writing Problems in Australia

9. 8 increment, the venture would further attempt for increasing the volume of the sales to attain profitability. Promotion: Promotion is another marketing strategy for the new venture to push the Indian cuisines among the UK residents and ensure the growth of the business at a certain rate of improving the revenue and profitability. In this context, Sheth and Sisodia (2015) stated that promotion would follow both the online and offline mode where selection of proper mode of promotional channel enforces to introduce the restaurant through hoarding initially. However, in the era of rapid growth of internet usage in the developed countries, online promotion including email marketing, social media marketing and mobile marketing would be potential enough to attain wider customer volume. Best Solution for Assignment Writing Problems in Australia

10. 9 7. Technical and production analysis: Technical and production deal with the use of techniques and equipments in the production process. The technique is based on the typical cooking process of the Indian foods. However, the equipments of cooking would be quite improved to conduct faster preparation of the Indian cuisine. However, in case of Indian foods, the real flavour of the cuisine needs appropriate time for preparing the Indian recipes. In the words of Leonidou et al. (2013), quality of the products, specifically the food products relies on the preparation mechanisms and the required time of production. Therefore, preparation of Indian cuisine needs significant time in case of the Tandoor items. However, there are also mechanisms to prepare the ingredients so that the preparation of the final item needs minimal time. On the other hand, Sheth and Sisodia (2015) stated that representation of the end product matters in attracting customers through making the same an appetiser. Therefore, continuing the discussion, garnishing mechanism needs to be proper so that it would improve the representation without hampering the real flavour of the item. Moreover, the equipments in this context need to be high end electronic equipments with the user friendly interface of easily use the same. In case of quality, hygiene is a crucial element that needs to be assured through proper cleaning process of wastages, utilisation of fresh ingredients and the prevention of damages in case of the raw materials. 8. Management capability: At the initial phase, the restaurant needs one manager and one cashier to decide the menus and operate the entire process of production and distribution of dishes based on preferences and demands. The manager of the new restaurant needs to have sufficient knowledge on the business management and workforce handling to monitor both operation and staffs’ performance. In the opinion of Dragičević et al. (2014), managers are liable to motivate the workers including chefs and waiters to serve the food and Best Solution for Assignment Writing Problems in Australia

11. 10 behavioural treatment as well. On the other hand, the cahier needs sufficient knowledge on the accounting principles and practices to maintain accuracy in financial statement preparation and reporting of the same. Therefore, looking after the planning and goals of the new venture, a proper hierarchy in the company is needed to convey the instruction following top-down approach of management. 9. Financial analysis: Income statement: Particulars Year 1 Year 2 Year 3 Amou Amou Amou nt nt nt (GBP) (GBP) (GBP) 1. Selling price per dish 7 9 10 Costs relating to the service Variable costs Direct materials per 3 3.15 3.31 dish Direct labour per dish 2 2.1 2.21 Variable production 2 2.2 2.42 overhead 2. Total variable cost 7 7.45 7.9325 per unit 3. Contribution (1-2) 0 1.55 2.0675 4. P/V ratio 0% 17% 21% 5. Number of dishes 30000 33000 36300 served 6. Total contribution 0 51150 75050. Best Solution for Assignment Writing Problems in Australia

12. 11 (3*4) 25 Fixed manufacturing costs Production overhead 2000 2000 2000 Administration and 700 700 700 office cost 7. Total fixed 2700 2700 2700 manufacturing overhead 8. Fixed selling overhead 9. Total fixed costs 2700 2700 2700 (7+8) Profit / (Loss) -2700 48450 72350 Profit Margin - 16.31 19.93 1.29% % % Cash flow statement: Projected cash flow statement Parrticulars Year 1 Year 2 Year 3 Amou Amou Amou nt nt nt (GBP) (GBP) (GBP) Cash flow from operating activity Operating profit -2700 48450 72350 Add. Non cash and non operating expenses Depreciation 1000 1000 1000 Best Solution for Assignment Writing Problems in Australia

13. 12 Amortisation 1000 1000 1000 Loss on sale of assets 500 600 700.00 Adjustment for changes in 22000 22000 22000 working capitral Cash generated from 21800 73050 97050 operating activity before tax Less. Tax paid 0 14535 21705 Net cash flow from 21800 58515 75345 operating activity Cash flow from investing activity Purchase of land - -6000 63000 75000 Purchase of oven - -5000 15000 25000 Net cash used in investing - - 78000 activity 10000 11000 0 Cash flow from financing activity Introduction of capital 28762 25000 0 Cash flow from financing 28762 0 25000 activity 0 Net cash increased during 20942 47515 17834 Best Solution for Assignment Writing Problems in Australia

14. 13 the year 0 5 Add. Opening cash balance 10000 21942 26693 0 5 Closing cash and cash 21942 26693 44528 equivalent 0 5 0 Balance sheet: Projected balance sheet LIABILITY Capital 28762 28762 31262 0 0 0 Loan from bank 10000 10000 10000 Creditors for goods 5000 6000 5600 Creditors for expenses 380 380 480 Total 30300 30400 32870 0 0 0 ASSETS Land 20000 20000 20000 0 0 0 Building 10000 95000 10000 0 0 Ovens 1500 1000 6000 Cash 1500 8000 22700 Total 30300 30400 32870 0 0 0 Best Solution for Assignment Writing Problems in Australia

15. 14 10. Required financing: Particulars Amount (in £) Legal 5000 Office supplies 5000 Insurance 2000 Land and building 75000 Security deposit 15000 Furniture and fixture 38000 Bathroom 14600 Mechanical 5890 Plumbing cost 12000 Floor and wall décor 22000 Electrical equipments 15640 Food licensing 30000 Kitchen equipments 35480 Music and screens 4550 Cleaning 1500 Promotional cost 5960 Total 287620 According to the above option of fund acquisition, it is clear that the total investment in the new venture of opening a new Indian restaurant chain is £287620. The amount needs significant external sources to acquire the fund for initial investment in venture development process. In that case, Dragičević et al. (2014) started that bank loan is most convenient option of funding to acquire the fund against a certain cost of borrowings in the form the interest rate. However, the source of finance would need the break even Best Solution for Assignment Writing Problems in Australia

16. 15 statement and profitability in future to ensure whether the lent amount would be further recovered within a certain time period. 11. Economic impact: Economic impact includes not only financial contribution but also the improvement of social status of the residents of the UK. Development of this venture would reduce the rate of unemployment in Birmingham and other regions indicating enriched economy through improved purchasing power. Therefore, creating the employment is also an economic impact delivering hike in individual and national income through generating flow of cash. On the other hand, tax payment would improve the treasure of government that in turn would be utilised in further development in infrastructural base of the region and other rural regions. Supporting to this statement, Dragičević et al. (2014) mentioned that improved purchasing power of residents further contributes to the social financial enrichment of the customers in Birmingham and poor economic regions while contributing to the national economy as well. As a result, frequent flow of fund through the new venture would therefore improve the economic value and thus, hike the value of currency over the international region. 12. Conclusions and recommendations: Based on the above discussions and analysis of the market analysis, it is clear that the new Indian restaurant in the UK is highly feasible in nature to execute the business idea in real. In the context of current trend and demand statistics of the UK restaurant chain, Indian cuisine has a comparatively higher demand and preference due to the ingredients, used in preparation of the recipes. Therefore, based on the demand of the Indian cuisine, specifically the curry items, the Indian restaurants in Britain are eager to hire the chefs from the India to add the real flavour of Indian Best Solution for Assignment Writing Problems in Australia

17. 16 tradition and culture. However, in order to plan the business in detail on this feasibility report following are the recommendations to be followed. Risk analysis and sensitivity index: The current feasibility report excluded the risk factors and its impact on the business and therefore, the business plan needs detailed information on the probable risk factors and the influence of the same on the business operation. In this regards, risks register matrix is a potential tool to analyse the risk factors along with the severity and trigger. Clear assumptions and deliverables: The business plan needs clear descriptions on the key assumptions and deliverables to set the goals on the same. Such assumption would therefore, incorporate the uncertain elements to make adjustment on time. Primary data collection: Before the planning and execution of the current business idea is conducted, the owner of the venture needs to accumulate primary data in terms of customers’ opinion to set the menu of the restaurants. Such opinion would assist the restaurant manager to prioritise the food items and proceed with the production process accordingly. Best Solution for Assignment Writing Problems in Australia

18. 17 Reference list: ● Babin, B.J. and Zikmund, W.G., (2015). Exploring marketing research. Cengage Learning. ● BBC Inside Out - Curry crisis. (2017). [online] Bbc.co.uk. Available at: http://www.bbc.co.uk/insideout/eastmidlands/series7/curry_chefs.shtml [Accessed 22 Feb. 2017]. ● Dragičević, T., Guerrero, J.M., Vasquez, J.C. and Škrlec, D., (2014). Supervisory control of an adaptive-droop regulated DC microgrid with battery management capability. IEEE Transactions on Power Electronics, 29(2), pp.695-706. ● Economic fears as Indian food prices soar. (2017). [online] Ft.com. Available at: https://www.ft.com/content/66b88094-1976-11e0-a853- 00144feab49a [Accessed 22 Feb. 2017]. ● Krueger, R.A. and Casey, M.A., (2014). Focus groups: A practical guide for applied research. Sage publications. ● Kumar, V., Bhaskaran, V., Mirchandani, R. and Shah, M., (2013). Practice prize winner—creating a measurable social media marketing strategy: increasing the value and ROI of intangibles and tangibles for hokey pokey. Marketing Science, 32(2), pp.194-212. ● Leonidou, L.C., Leonidou, C.N., Fotiadis, T.A. and Zeriti, A., (2013). Resources and capabilities as drivers of hotel environmental marketing strategy: Implications for competitive advantage and performance. Tourism Management, 35, pp.94-110. ● Sheth, J.N. and Sisodia, R.S., (2015). Does marketing need reform?: Fresh perspectives on the future. Routledge. Best Solution for Assignment Writing Problems in Australia