Road side modern dhaba

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ROAD SIDE MODERN DHABA

SERVICE CAPACITY (Value) : Rs. 18,00,000/-
MONTH AND YEAR : July, 2014
OF PREPARATION
PREPARED BY : Sh. V. M. Jha
Deputy Director (Metallurgy)


1. INTRODUCTION
Dhaba services through providing food, breakfast, Tiffin, lunch, dinner and
cold drinks and snacks are very much popular. Now day’s visitors, customers,
tourists, floating people prefer to sit in restaurant for a while and take necessary
appetizer and go away. Thus dhaba can be planned to set up in outer of town/city of
thick population, on the high way side. The more option for food is kept to serve the
more the dhaba will be popular. Further, served food items or readymade items
should be to the tune of the taste and need of the people or visitors. Two more things
to be strictly taken care are the quality of the food provided by the restaurant for
smooth functioning of the restaurant. Rate of different service items depends on the
status of the city/town as well as the cost of raw materials/vegetables, etc.

2. MARKET/SERVICE OPTIONS
With the growth of population and living standard, people are much keen of
taking food in restaurant. Visitors, tourists, office goers take regular food in
restaurant within their budget. Since Provision for vegetarian meals, snacks -
tea/coffee, cool drinks and arrangements for breakfast, Tiffin are kept as an option.
Arrangement for at least 60 persons at a time is considered in the scheme. If service
and quality of food maintained properly good market opportunity are lying.

3. BASIS AND PRESUMPTIONS
i. The profile is prepared for service unit of restaurant for two shifts basis i.e.
from morning 6 AM to 10 PM. Electricity and man power is calculated as per
this presumption.
ii. Cold drinks, tea/ snacks and other facilities will be kept for customer’s
attraction.
iii. Profile strictly discourages the service of any sort of non-vegetarian and
liquor through the restaurant.

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iv. Building is taken as leased/hire basis where provision for kitchen, stores,
counter set up is already there with in the total built up area of 1100 sq. ft.
v. Provisions for Water cooler, refrigerator, cold drinks cooler and air
conditioner, hot case, etc. are considered to maintain service quality.
vi. Music system, audio set, telephone facilities are considered as accessories
items.
vii. Approximately 150-200 nos. of customers are supposed to take service from
the unit.
viii. Leased building is taken as per the choice of the partners of this unit; the
leased provider will provide semi furnished building also.
ix. Loan amount of 65-75% of total capital investment is considered from private
sources, however, option from taking loan from nationalized bank or financial
institute is also kept open. Thus rate of interest over capital investment is
considered as per P.L.R.
x. Cost of accessory items, furniture’s, interior decorative items are taken as per
the local information available and information provided by the entrepreneur.
This is however, changeable according to time, place and supplier or other
local factors.
xi. Interest rate over capital investment has been considered @ 14%.

4. IMPLEMENTATION SCHEDULE
i. Preparation of project profile, preliminary data related 1 month
to project and clearance from different promotional
agencies
ii. Selection of site, lease agreement, etc. 2 month
iii. Arrangement of finance, follow up and interior 2 month
reconstruction/decoration, colour, etc.
iv. Procurement of machinery and accessories, etc. 2 month
v. Recruitment of staff and trial run 2 month

5. Quality Standards
Now a day’s service sectors are also equally developed to acquire ISO 9000
series. Restaurant/hotels should also ensure compliance of all quality aspects. In
broad sense restaurant should maintain quality and service as per the customer's
satisfaction.

Provision for exhaust fan in the kitchen, well maintained wash basin, cleaner
production technique and waste minimization measures must be adopted to face
competition.

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6. FINANCIAL ASPECT
6.1. Fixed Capital
6.1.1. Land & Building: 900 SQ. FT Shed @ 300/SQ.FT Rs. 2,70,000/-

6.1.2. Machinery and Furniture
Sl. No. Description Value (Rs.)
1 Furniture 10 tables with 30 chairs @ 5000 per set 50,000
2 Wooden table with chair 1 pair 5,000
3 Ceiling fan 10 nos 10,000
4 Refrigerator 200 liter cap. 19,000
5 Mixer grinder 5 liter capacity 5,000
6 Wet grinder with Motor capacity 0.5 HP 5,000
7 Water purifier 7,000
8 Cold drinks cooler case One 6,000
9 Plates/ glasses/jugs/mugs/cooking utensils etc 20,000
10 Gas cylinder deposit – 3 cylinders 6,000
11 Gas oven commercial-2NOS 1,500
12 Weighing balance, tools and accessories 4,600
13 Music system/Audio set/TV/VCD/Cable connection 10,000
Total 1,49,100
Total Fixed Capital Rs. 4,19,100/-

6.2. Working Capital (per month)
6.2.1. Personnel
S. No. Designation No Rate Total (Rs.)
1 Manager/Promoter 1 15,000 15,000
2 Cook 2 9,000 18,000
3 Helper/Servicemen 2 8,000 16,000
Total 49,000

6.2.2. Raw Materials including Packaging Materials
Sl. No. Description Value (Rs.)
1. Dal, rice, rawa, sugar, tea, coffee, maida, etc. 20,000
2. Oil, masala, spices, sauce, etc. 8,000
3. Milk, cool drinks, etc. stock (deposit) 13,500
4. Vegetarian item stock paneer, vegetables, curds, sweets, etc. 8,000
5. Gas, cleaning powder, soap, other small misc. items 2,000
6. Non veg item meat, fish ,chicken, egg 10,000
Total 61,500

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6.2.3. Utilities
1. Electricity & Water Rs. 2,000
2. Gas Refueling Rs. 3,000
Total Rs. 5,000

6.2.4. Other Contingent Expenses
S. No. Description Value (Rs.)
1 Travel & Transport 1,500
2 Telephone 500
3 Maintenance 500
4 Advertisement/Publicity 500
5 Insurance, Taxes & Miscellaneous Expenses 500
Total 3,500

6.2.5. Total Recurring Expenditure (per month) Rs. 1,19,000/-

6.3. Total Capital Investment
Fixed Capital Rs. 4,19,100
Working Capital (1 month) Rs. 1,19,000
Total Rs. 5,38,100/-

7. FINANCIAL ANALYSIS
7.1. Cost of Operation (per annum)
S.No. Description Amount (Rs.)
1 Total Recurring Cost per year 14,28,000
2 Depreciation on Machinery & Equipment @ 10% 14,910
3 Depreciation on Shed @ 5% 13,500
4 Interest on Total Investment @ 14% 75,334
Total 15,31,744

7.2. Turnover (per annum)
i. By selling lunch/dinner 100 nos. per day @ 50/- Rs. 1,25,000
Average Per lunch/dinner x 25 working days
ii. Breakfast, tiffin, tea, coffee, cool drinks, etc. Rs. 25,000
Total monthly receipt Rs.1,50,000
Total Turnover (per annum) = Rs.1,50,000 x 12 months = Rs. 18,00,000/-

7.3. Net Profit (per annum)
= Turnover – Cost of Operation
= Rs. 2,68,256/-

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7.4. Net Profit Ratio
=
Net profit per year
X 100
Turnover per year

= 14.9 %

7.5. Rate of Return
=
Net profit per year
X 100
Total Capital Investment

= 49.9 %

7.6. Break-even Point
Fixed Cost (Per Annum) (Rs.)
Total Depreciation 28,410
Total Interest 75,334
Insurances, Taxes, etc. 6,000
40% of salary and wages 2,35,200
40% of other Contingent expenses
(Excluding Insurance & Taxes)
14,400
Total 3,59,344

B.E.P
=
Fixed Cost
X 100
Fixed Cost + Net Profit

= 57.3 %



Address of Machinery & Equipment Suppliers
Branded machines are available in local market.