D. TECHNICAL ASPECTS:
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1 FAST FOOD PARLOUR A. INTRODUCTION: In the present day world, people are heading towards fast food restaurants, for the purpose of snacking. Fast food is selling like real hot cakes especially amongst the younger generation. Though fast food is not a very healthy option to go in for, still people are opting for it because today fast foods have become an integral part of fad trend. The Hoteliers claim that their food prices are fixed not to make any substantial profit but just to make both ends meet. Their overhead costs are high. In fast food restaurant, the overheads can be kept to the minimum, and the prices of the food served can be kept low due to low labour force and low overheads, and other minimum infrastructure like furniture etc. Considering the growth in floating population in the cities and fast moving life people prefer to spend bare minimum time in the restaurants. In this context, fast food parlors are the most suitable alternative. B. PRODUCT USES & SPECIFICATIONS: There is no product specification for fast food restaurant. The standards are determined by ultimate consumers who are regular visitors to a restaurant. C. MARKET POTENTIAL: The proposed parlour should be in a central place, so that it can cater to the requirements of middle class, and other upper and lower middle income groups. The motto of the parlour should be to maintain a high standard of food and warm and quick service to the customs at affordable rates. The project should be conceived with the aim of providing basic necessities to the customers. All South Indian vegetarian dishes and other fast moving north Indian dishes should be provided to the customers.
2 D. TECHNICAL ASPECTS: 1. Plant & Machinery : In order to provide adequate facilities the following equipments and furniture are required to be maintained. Nos 1. Steam Boiler SBC Diesel Burner Blower 1 3. Rice Cooking Vessel 10 kg Hall/Veg. Vessel 10 kg Idly Cooking Plant IP Gas Cooking Range 3 in Gas Cooking Range 2 in Dosaplate 4 x 21/2 x Workable with 3 shelves Wortable with sink Washing sink 3 in Dish handling table Cleansing Rack 4 in Wet grinder 10 ltrs Wet grinder 5 ltrs Dirty Collection trolly Deepfreezer 3 doors Pipeline valve fittings LS 19. Aluminium Glading LS 20. Paw Bajji Counter Bhel puri counter Samosa hotcase Juice counter hole hotcase hole hotcase Service counter with 7 hole bainmarie Potato peeler Milk Boiler 1
3 29. Salamander 1 GAS LINE: 1. Supply of Gas Line 2. Supply of Exhaust Hood with all accessories 3. Electricals & Furnitures All the equipments are proposed to be purchased from reputed suppliers of these equipments, who have experience in supplying similiar items to various hotel. 3. Facilities to be provided : The parlour should provide the following facilities Morning Tea/Coffee Breakfast Mini Lunch Evening Tea/Coffee Snacks Also fast moving North Indian dishes like Bhel Puri, Pani Puri, Bread Channa etc. Should also be provided. 4. Raw Materials : The materials required for hotel are general provisions, consumables, groceries and vegetables. These can be purchased on daily and weekly basis. No finance is required for storing these items. 5. Land & Building: Building required 300 sqft. Rented. 6. Utilities: Electricity Steam : Power requirement is Rs.3000/- per month. : For Idli and other cooking purposes. Water : Water is required for cooking, washing and consumption.
4 Effluent treatment : No harmful effluents envisaged. Man Power Requirement: Production Rs./Mont h Total 1. Cooks Assistants Waiters Supervisors Cleaners Add: Benefits 20% Total Annually Rs.9.86 lakhs. Administrative 1. Manager Add: Benefits 20% 1400 Annually Total 8400 Rs.1.01 lakh. 7. IMPLEMENTATION SCHEDULE: The machines are available from the suppliers indigenously. can be implemented within a month. The project 8. ASSUMPTIONS 1. Sales per day at 100% Rs Sales per annumrs lakhs 2. Occupancy/Utilsation Year1-60%, Year2-70%and Year3-80% 3. Material cost 50 % of the sales revenue 4. Power charges Rs.5000 per month 5. Repairs and Maintenance Rs per annum 6. Depreciation normal rates at written down value method 7. Administration and general expenses Rs per month.
5 8. Interest on Term Loan 12% p.a. 9. Income tax is provided at 33.99% on taxable income. LIST OF MACHINERY & EQUIPMENT SUPPLIERS: 1. ARV Engineering Industries Pvt. Ltd., No.6, Amaravathi Nagar Main Road, Kurinji, Arumbakkam, Chennai M/s.Classic Canteen Systems, PK5, Sidco Industrial Estate, Ekkattuthangal, Chennai M/s.Micro Engineering Works, 32, Teynampet Ramasamy Mudali Street, Chennai FINANCIAL ASPECTS 1. COST OF PROJECT [Rs.lakhs] Land & Building (Advance) 0.50 Equipment & Furniture Pre-Operative expenses 0.50 Margin for WC 0.50 Total MEANS OF FINANCE Capital 4.50 Term Loan 8.00 Total COST OF PRODUCTION & PROFITABILITY STATEMENTS [Rs.lakhs] Details of Income: Rate assumed per hour Rs.1,500 No. of hours per day 16 hours Income per day Rs.24,000 No. of days p.a. 350 days Income per annum (Rs.lakhs) Rs lakhs Years Income per annum -100% (Rs.lakhs) Utilisation 60% 70% 80% Income per annum Raw Materials Power
6 Wages & Salaries Repairs & Maintenance Depreciation Cost of Production Admin. & General expenses Selling expenses Interest on Term Loan Interest on Working Capital Total Profit Before Tax Provision for tax Profit After Tax Add: Depreciation Cash Accruals WORKING CAPITAL: Months Values % Margin Bank Consumptions Amount Finance Expenses % PROFITABILITY RATIOS BASED ON 80% UTILISATION Profit after Tax Sales Profit before Interest and Tax Total Investment Profit after Tax Promoters Capital BREAK EVEN LEVEL Fixed Cost (FC): [Rs.lakhs] Wages & Salaries Power 0.48 Repairs & Maintenance 0.44 Depreciation 1.19 Admin. & General expenses 1.59 Interest on TL Profit Before Tax (P) BEL FC x x FC +P % of installed capacity 17% 143% 254% x 100
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