ENTREPRENEURSHIP DEVELOPMENT PROJECT

2D-CAFE

Submitted By:

2020685 Madhulika Endluru

2020677 Vanshita Pasari

Under the guidance of

Prof. Ananthavalli Ramesh

Asst. Professor, School of Business and Management

In Partial Fulfilment of the Requirements for the Award of the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (Deemed to be University)

BANGALORE
2022

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 CERTIFICATE

This is to certify that the Entrepreneurship Development Project submitted by Vanshita Pasari
([Link]. 2020677)and Madhulika Endluru Sudhakar (Reg No. 2020685) titled “Will-o-wisp: The
2D Cafe” submitted to CHRIST (Deemed to be University), in partial fulfilment of the requirements
for the award of the Degree of Bachelor of Business Administration, is a record of original study
undertaken by Vanshita Pasari and Madhulika Endluru Sudhakar, during the period 2021 – 2022 in
the School of Business and Management at CHRIST(Deemed to be University), Bangalore, under
my supervision and guidance. The project has not formed the basis for award of any Degree/
Diploma/ Associate ship/ Fellowship or other similar title of recognition to any other University.

Prof. Ananthavalli Ramesh

Place: Bengaluru
Asst. Professor
Date: 10 April 2022 School of Business and Management

Dr. Amalanathan. S
Head of Department
School of Business and Management

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 DECLARATION

We, Vanshita Pasari (Reg. No.2020677) and Madhulika Endluru Sudhakar (Reg. No. 2020685),
hereby declare that the project, titled“Will-o-Wisp: The 2D Cafe,” submitted to CHRIST(Deemed
to be University), in partial fulfilment of the requirements for the award of the Degree of Bachelor
of Business Administration is a record of original and independent study undertaken by me during
2021–2022 under the supervision and guidance of Prof. Ananthavalli Ramesh, School of Business
and Management. I also declare that this dissertation has not been submitted for the award of any
degree, diploma, associateship, fellowship or other title to any other Institution/University.

Place: Bangalore
Date: 10April 2022. Vanshita pasari (2020677)

Madhulika Endluru Sudhakar (2020685)

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 ACKNOWLEDGEMENT

We, Vanshita Pasari and Madhulika Endluru Sudhakar would like to express my profound gratitude
to all those who have been instrumental in the preparation of this research Project Report. I wish to
place on record our deep gratitude to my project guide, prof. Ananthavalli Ramesh, for guiding me
through this project with valuable and timely advice. I would like to thank Dr. (Fr). Abraham V M,
Vice Chancellor, Dr. Jain Mathew, Dean and Dr. Amalanathan S, HOD, School of Business and
Management for their encouragement.

Last but not the least; I would like to thank my parents and friends for their constant help and
support.

Vanshita pasari (2020677)

Madhulika Endluru Sudhakar (2020685)

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 TABLE OF CONTENTS

SL. NO. PARTICULARS PAGE NO.

1 Chapter -1 Introduction 7-13
1.1 Introduction to Micro, Small and Medium Enterprises
1.2 Industry profile
1.3 Entrepreneur’s Profile
1.4 Approximate investment requirements
2 Chapter - 2 Executive summary 14-16
3 Chapter - 3 Partnership Deed 17-20
4 Chapter 4 - Market Survey 21-30
4.1 Feasibility of the Project
4.2 SWOT Analysis
4.3 Present and future scenario
4.4 Competitors
4.5 Challenges
4.6 Worst Case Scenario and Contingency Plan
5 Chapter 5 - Marketing 31-41
5.1 STP:Segmentation - Targeting - Positioning
5.2 7Ps of marketing
5.3 Branding and advertising strategies
5.4 Michael Porter’s five force analysis
5.5 Product/Service Description
5.6 USP
5.7 Sales/ demand forecasting

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SL. NO. PARTICULARS PAGE NO.
6 Chapter 6 -Human Resource Plan 42-49
6.1 Organisational Structure
6.2 Number of founding members
6.3 Training procedure & implementation
6.4 Management structure
6.5 Number of employees
6.6 Job specifications and Job description
6.7 Salary breakup and fringe benefits
6.8 Working hours and conditions
6.9 Punctuality, leave policy and maternity benefit
6.10 Recruitment sources
6.11 Retirement policy
7 Chapter 7- Production and Operations 50-55
7.1 Floor plans
7.2 Material used
7.3 Quality policy
7.4 Maintenance policy
7.5 Location policy
8 Chapter 8 - Financial plan 56-68
8.1 Initial investment
8.2 Sources of fund
8.3 Cost of capital
8.4 Depreciation
8.5 Revenue model
8.6 Operating expenses
8.7 Profit & Loss A/C
8.8 Balance sheet
8.9 Break even analysis
8.10 Payback period
8.11 Risk analysis
9 Chapter 9 - Executive Plan 69-70
10 Chapter 10 - Conclusion 71-72
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CHAPTER 1- INTRODUCTION

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1.1 Introduction to Micro, Small and Medium Enterprises

A small-scale business can be called as a project or venture which involves a small budget or is run
by a small group of people. According to the definition provided by the official government website
for business, “A small scale industry (SSI) is a business setup in which the financial commitment
towards infrastructure such as building & equipment, whether made as an owner or on rental or
purchase basis, does not surpass Rs.5 Crore.

The Small Industries Development Organization (SIDO) was under the control of the ministry, as
was the public sector undertakings National Small Industries Corporation Limited (NSIC). It is the
Office of the Development Commissioner for Small Scale Industries. SIDO was established in 1954
on the basis of the recommendations of the Ford Foundation.

Various Services provided by SIDO to the SMEs: -

Facilities for testing, tool mending, training for entrepreneurship development, preparation of
project and product profiles, technical and managerial consultancy, assistance for exports, pollution
and energy audits. SIDO also provides economic information services and advises the Government
in policy formulation for the promotion and development of SSIs.

As per the rules of the government, one need not procure a license either from the state or central
government to set up a small business venture anywhere in India. However, registering a small-
scale business with the State Directorate or Commissioner of Industries or DIC will make it easier
to apply for financial assistance from the government bodies such as the Department of Industries.
The National Small Industries Corporation is also a government body, which assists the small
business owners in availing financial assistance machinery on hire-purchase basis. Government has
also eased the rules and regulations to avail the benefits of schemes such as capital subsidy reduced
custom duty on selected items, credit guarantee scheme, various state government benefits and
ISO-9000 certification reimbursement and furthermore. Since our business’s investment is not more
than Rs. 5 crores, it will fall under Small Scale Industry (SSI).

8
1.2 Industry Profile
The food and beverages industry involves processing raw food materials, packaging, and
distributing them. The basic needs of customers for food and beverages are met by the foodservice
industry, this includes fresh, prepared foods as well as packaged foods, and alcoholic and non-
alcoholic beverages. Foodservice operations may vary in size, style, location, and the market they
are catering to, from a street side tea stall to an exclusive fine dining restaurant of a deluxe hotel,
and from mid-day meal services for school children to meals for industrial workers, all come under
the fold of the F&B sector.

The number of people availing the services of the food industry is vastly increasing due to their
increased disposable income. The service industry is different from other industries in satisfying the
needs of customers. It satisfies one of the most important physiological needs off the consumers,
that is creative, satisfying meals and distinctive service like ambience, good interiors.

The market size of the food and beverage industry in India was worth INR 3,80,000 crore by 2017
and is showing a revenue of US$7,623m in 2021. The user penetration will be 13.7% in 2021 and is
expected to hit 24.0% by 2025. Revenue is expected to show an annual growth rate (CAGR
2021-2025) of 10.35%, resulting in a projected market volume of US$11,305m by 2025.

When it comes to the Indian restaurant industry it is worth Rs.75,000 crores and is growing at an
annual rate of 7%. The industry is highly fragmented with 1.5 million eating outlets, of which a
little more than 3,000 outlets form the organised segment. The organised segment is rapidly
growing at an annual rate of 16%. Quick service segment has a market with a growth rate of 21%.

The current scenario of the food and beverage industry shows that it accounts for 3% of India’s
GDP and is the single largest employer in the country, with more than 7.3 million workforce but due
to the nationwide lockdown this industry went through a downward spiral with few predictions
suggesting that nearly a quarter of all restaurants may shut down or lose their well established
markets.

When it comes to the hygiene standards of the industry, the cafes which are slowly opening their
doors for business and operating for limited hours in certain states, the question of safety with
regards to ordering and dining in remains for the consumer. During this situation, all major food
delivery apps have begun precisely mentioning the hygiene standards of restaurants on their
platforms.
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Also, food safety and hygiene in India has seen extraordinary growth recently. Aspects like
temperature control, frequent sanitation, use of masks and safe packing mechanisms are the new
norms and also compulsion in the food and beverages industry.

The health and safety audit agencies are specifically being employed to ensure standards and build
consumer confidence. But presently, these are not a compulsion in India; however, the Food Safety
and Standards Authority of India (FSSAI) has initiated a 48-point checklist on hygiene ratings for
restaurants and cafes to comply with.

Contactless engagement has become a priority for the industry to facilitate automated
conversational interaction between customers and service staff. Contactless solutions based on AI
and digital payment options are expected to gain more attention and be the new normal for the
hospitality sector and will modify the industry standards for the post-COVID era too. Other aspects
like, at home experiences, gourmet street food brands, healthy food brands, chef driven delivery
restaurants and cloud kitchens also gained a lot of interest among the customers during this
situation.

The industry is moving forward to digitisation at its core. Services will grow to be more
personalised and customer-centric, creative service offerings will be launched, health and safety
will be standardised, operations will become less labour intensive. All these changes will elevate
customer experience and set new standards for the industry in the post-COVID era.

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1.3 Entrepreneur’s Profile
Table 1.1 Entrepreneur profile - partner 1

Name Vanshita Pasari

Date of birth 13th March 2002

Address
205, Madgul Habitat, Chandni Chowk, kanke
road, Ranchi, Jharkhand - 834008

Mobile +91-7544015350

E-mail ID [Link]@[Link]

Languages English, Hindi and Marwari

Objective

To build a place where I always craved to be

Current Occupation Pursuing Bachelor of Business Administration

(BBA) from Christ (Deemed to be University)

Areas of interest
Reading books, Exploring different pop
culture, Sketching, dancing

Strengths Self-motivated and disciplined, Good

communication skills, Patient and highly
optimistic.

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Table 1.2 Entrepreneur profile - partner 2
Name Madhulika Endluru Sudhakar

Date of birth 17th May, 2002

Address #3086, VHBCS layout, 4th phase girinagar,

near kattriguppe water tank circle, BSK 3rd
stage, bangalore-85

Mobile +91 8217877698

E-mail ID [Link]@[Link]

Languages English, Hindi, Kannada, Telugu.

Objective To lead a satisfying career and life ahead.

Current Occupation Pursuing Bachelor of Business Administration

(BBA) from Christ (Deemed to be University)

Areas of interest
Learning languages, designing, writing, and
painting.

Strengths
Optimistic, good listener, understanding, good
convincing skills.

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1.4 Approximate Investment Requirement

The investment made by the partners is Rs 40,00,000. Rs 20,00,000 by each partner

in the form of cash and bank balance. Rs 60.00,000 will be acquired as a loan at 9.8% from HDFC
Bank. The total investment will come upto 1 crore.

13
CHAPTER 2 - EXECUTIVE SUMMARY

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We will be opening a themed cafe in Koramangala, Bangalore which will be based on a cartoon/
comic book that creates an illusion of you entering in a 2D world, it is well-decorated monochrome
decor which has white floors, walls, furniture, and black lining borders, the cutlery, mugs, dishes
too look like flat line drawings. The customers will not only be able to admire the unusual interior
but will also experience a very satisfying ambience and fine quality of food and drinks provided in
our cafe, these features also act as the unique selling point of our business.

The tagline goes like ‘It’s one of a kind’ this is because the theme provides a whole experience
wherein people can not only enjoy the atmosphere and food but also we at the cafe are going to give
our first 500 customers a golden membership that will enable them to use our comic store at the
second floor of our cafe which they can also use to conduct important meetings, get togethers and
hold events like book singing and reading events.

We aim at targeting teens and young people as our potential customers, for knowing people’s
opinion on this theme we conducted a small survey and got 92 responses. We saw that the majority
of our respondents haven't visited a 2D cafe but wish to visit if it is located in their locality or city.
We will focus on word of mouth, social media marketing along with print ads, official merch and
influence marketing too. After capturing the local market we aim to open our stores throughout the
country and expand our business.

Our cafe consists of 14 employees and the 2 partners, the managerial department will consist of 1
head manager, floor staff and security guard, the finance department will be handled by Partner 1
Ms. Vanshita Pasari and no additional staff is required other than external CA. The partner 2
[Link] Endluru Sudhakar will handle the HR and Marketing department and no additional
staff is required. The kitchen staff will consist of gourmet chef and sous chefs, and delivery staff.

Ms. Vanshita Pasari will be the CFO and Ms. Madhulika Endluru Sudhakar will be the COO of the
cafe, the capital bought into the business will be Rs.40,00,000 each partner contributing
Rs.20,00,000 and Rs.60,00,000 will be taken as loan from HDFC bank at 9.8% and the profits will
be shared equally among the partners. The revenue model will be based on the golden membership,
and customers can get access to the exclusive second floor through membership only. Membership
can be bought on a monthly, quarterly, and Annual basis. Ground floor cafe will be open to all.

We will be giving our customers very reasonable prices for our food and services so that we can
earn their trust as a brand, and once we gain our potential customers we will add certain
15
recommended menus from them so that we show them that their opinions are surely considered and
their needs are satisfied. With the comic store plan on the second floor we want to provide our
customers with their personal space and privacy so that they can work and do their tasks without
any disturbance. We look forward to creating our own identity by leading this themed cafe industry
by providing best quality food and ambience according to our potential customers. The cafe will
focus on making its own brand name and satisfying our customer preferences.

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CHAPTER 3 - PARTNERSHIP DEED

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3.1 Partnership Deed

This deed of partnership is made on 8th April 2022 between:

1. Madhulika Endluru, Daughter of Mr. Sudhakar Endluru, residing at 3086, VHBCS layout
katriguppe BSK 3rd stage, Bangalore 560085 hereinafter referred to as FIRST PARTNER.

2. Vanshita pasari, Daughter of Mr. Anand Kumar pasari, residing at 295, mogul habitat, kanke
road, ranchi, Jharkhand-834008 hereinafter referred to as SECOND PARTNER.

Whereas, the parties here have agreed to commence business in partnership and it is expedient to
have written instrument of partnership. Now this partnership deed witnesses as follows:

1. BUSINESS ACTIVITY

The parties here have mutually agreed to carry on the business of a 2D themes Cafe. The
Cafe primary offering is gourmet roasted coffees with varieties such as mocha,
caramelicious, white mocha, candy bar latte, and brewed coffee. Complementing the coffee
will be a smoothie line including wild berry, strawberry, peach, mango and lemonade.
Rounding out the simple menu line will be pastries, Sandwiches and Pizza.

2. PLACE OF BUSINESS

The principal place of the partnership business will be situated in

Koramangala,Bangalore, Karnataka , 560034.

3. DURATION OF PARTNERSHIP
The duration of the partnership will be at will.

4. CAPITAL OF THE FIRM

Initially the capital of the firm shall be Rs. 40,00,000( The capital brought in by partners)

5. PROFIT SHARING RATIO

The profit or loss of the firm shall be shared equally among all the partners and transferred
to the partner's current account.
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6. MANAGEMENT

The First Partner of the firm shall be Managing Partner and she will look after all the day to
day transactions of the firm and any legal activities in the name of the firm and the
remaining partners shall cooperate to do so.

7. OPERATION OF BANK ACCOUNTS

The firm shall open a current account in the name of Will-O-Wisp- The 2D Cafe at any bank
and such account shall be operated by Vanshita Pasari and Madhulika Endluru jointly as
declared from time to time to the Banks.

8. BORROWING

The written consent of all Partners will be required for the partnership to avail credit
facilities from any financial institution.

9. ACCOUNTS

The firms shall regularly maintain in the ordinary course of business, true and correct

accounts of all its transactions and also of all its assets and liabilities, the property books of

account, which shall ordinarily be kept at the firm’s place of business. The accounting year

shall be the financial year from 1st April onwards and the balance sheet shall be properly

audited and the same shall be signed by all the Partners. Every Partner shall have access to

the books and the right to verify their correctness.

10. RETIREMENT
If any partner shall at any time during the subsistence of the partnership, be desirous of
retiring from the firm, it shall be competent from him/her to do so, provided he/she shall
give at least one calendar month notice of his/her intention of doing so. The remaining
partner shall pay to the retiring partner or his/her legal representatives of the deceased
partner, the purchase money of his/her share in the assets of the firm.

19
11. DEATH OF PARTNER
In the event of the death of any partners, one of the legal representatives of the deceased
partner shall become the partner of the firm and in the event the legal representative show
their denial to point the firm, they shall be paid the part of the part of the purchase amount
calculated as on the date of the death of the partner.

12. ARBITRATION
Whenever there by any difference of opinion or any dispute between the partners the
partners shall refer the same to an arbitration of one person. The decision of the arbitration
so nominated shall be final and binding on all partners, such arbitration proceedings shall be
governed by Indian Arbitration Act, which is in force.

In witness whereof, this deed of partnership is signed sealed and delivered this 8th April
2022 at Bangalore, Karnataka:

VANSHITA PASARI MADHULIKA ENDLURU SUDHAKAR

205, Madgul Habitat, Chandni Chowk, 3086, VHBCS layout, 4th phase girinagar, near
kanke road, Ranchi, Jharkhand - 834008
kattriguppe water tank circle, BSK 3rd stage,
bangalore-85

20
CHAPTER 4 - MARKET SURVEY

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4.1 Feasibility of the Project
Feasibility Analysis is an analytical program through which the project manager determines the
project success ratio and through feasibility study project manager is able to see whether the project
will be useful for us or not and how much time it will take to get completed. Also, a feasibility
study allows the project manager to determine all positive and negative points of the project.

Types of Feasibility:

• Technical Feasibility- The engineering feasibility of the project is viewed in the technical
feasibility. Certain important engineering aspects are covered which are necessary for the
designing of the project like civil, structural, and other relevant aspects. The technical
capability of the projected technologies and the capabilities of the personnel to be employed
in the project are considered. We will be installing air conditioners throughout the place. The
structure and design of the cafe will be as though which provides the best structural stability
and is pleasing to the eye of the customer. All the equipment in the kitchen will be according
to the requirements of the kitchen staff.

• Managerial Feasibility- It is ascertained by certain key elements like employee involvement,

demonstrated management, availability & capability and commitment. The management and
organizational structure of the project are addressed by this feasibility which ensures that the
proponent’s structure mentioned in the submitter is feasible to the kind of operation
undertaken.

• Economic Feasibility- It refers to the feasibility of the considered project to produce

economic benefits. A benefit-cost analysis is needed. Furthermore, the economic feasibility
of a project can also be evaluated by a break-even analysis. In order to facilitate the
consistent basis for the evaluation, the tangible and intangible facet of a project must be
translated into economic terms. The customers will be provided with amenities at a
reasonable price that will not pierce their pocket.

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 • Financial Feasibility- This must be differentiated from economic feasibility. The ability of
the project management to raise sufficient funds required to implement the proposed project
is included in the financial feasibility. Other aspects of financial feasibility should also be
viewed, if appropriate, like creditworthiness, loan availability, equity, and loan schedule.
The implications of land purchase, leases and other estates inland are also reviewed in the
financial feasibility analysis. We will bring our own initial capital and will be contracting the
construction to an agency.

• Safety Feasibility- Another important aspect that must be considered in the project planning
is safety feasibility. Safety feasibility involves the analysis of the project in order to
ascertain its capacity to implement & operate safely with the least unfavourable effects on
the environment. Mostly in complex projects, environmental impact assessment is not
properly addressed. We have already filed for various safety certificates and licenses that
include fire safety, employee safety and so on.

• Market Feasibility- The potential influence of market demand, competitive activities and
available market share should be considered in the market feasibility analysis. During the
start-up, ramp up and commercial start-up phases of the project, possible competitive
activities (local, regional, national and international) should be analysed for early
contingency funding and the impacts on the operating costs. We will be focusing on high
profile individuals and students together thanks to our affordable plans which fit everyone’s
pocket. If the venture is a success, we plan to expand it.

Market Survey responses

In order to learn about what people understand and know about 2D themed cafes we conducted a
small survey by circulating a questionnaire consisting of 6 questions, and it was circulated to people
of different age groups and the following pie-charts show the analysis of the responses we got from
our survey.

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 Fig 2.1 Pie chart of Age groups

This chart shows that different age groups took part in the survey, we can conclude that the majority
of them belong to the 15-20 age group and the next majority is 20-25 age group, so the teenagers
and young people tend to show a lot of interest in our theme.

Fig 2.2 Pie chart of Awareness about themed cafe

The majority of people do know about the existence of themed cafes and are well aware of those
cafes. This can be a huge benefit for us as they would definitely want to visit our 2D cafe.

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 Fig 2.3 Pie Chart showing customer preference on visiting 2D cafe

88% of our respondents would visit a themed cafe located in their area or city, this shows they show
interest in this and will definitely pay a visit to our cafe as well.

Fig 2.4 Pie chart showing customer awareness about 2D cafe

Since this theme is not a common one in India there is a probability that people would not have
heard/visited the 2D themed cafe, this is again a huge advantage for us as the adopters of this theme
in South India, this will be a unique cafe as it will be introduced in the south market for the very
first time and will surely attract a lot of customers.

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 Fig 2.5 Pie chart showing customer preference to comic themed cafe over regular cafe. 81.5%
of our respondents gave a positive response that they would surely visit the 2D cafe which is
cartoon/comic book themed where everything looks like you have entered another dimension.

Fig 2.6 Graph showing Customers Basic requirements.

The majority of respondents said that they would look for food quality and ambience when they
visit a cafe, Will-O-Wisp aims at providing the best ambience possible along with quality food and
as per the concern of our next majority of respondents, they look for affordable prices and good
interior and we at our cafe focus on giving our customers reasonable price and the interior has it’s
unique charm too.

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 Fig 2.7 Pie chart showing preference of respondents to attend small book/comic events As we
plan to open a small comic store along with organising events like get togethers, book reading
events and fairs at our Cafe, so more than 51.1% of our potential customers would prefer these and
can benefit from this service provided by us.

4.2 SWOT ANALYSIS

STRENGTHS

1. Unique interior

2. Peaceful ambience

3. Personalised taste

4. Professional staff

5. A mini library

WEAKNESS

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 1. The first few initial shipments of supplies (coffee, cups, napkins, ingredients, etc) can be
hectic and will lead to unexpected use of resources, as the procedures of buying wholesale
are unfamiliar.

2. As a newer café, potential consumers and customers have not heard of us; so proper
marketing will need to be established to assure our target demographic knows and
understands our products.

3. Our financial resources, such as funding, sources of income and investment opportunities
limit our reach and impact in the market.

OPPORTUNITIES

1. Setting up of Branches across the city and different states across the country.

2. Hosting events like book launch, book reading

3. Ability to cater the needs of untapped markets.

4. Increasing demand.

THREATS

1. Duplication of our idea

2. Competition from other themed cafes

3. Inability to diversify into specific verticals

4.3 Present and Future Scenario

Our cafe presents a new way to enjoy Bangalore's population. With the infusion of the unique
interior and ambience we open up an untapped market with the ability to attract people to our new
concept. In general, themed cafes are a gold mine, still waiting to be fully exploited in a country
28
like India. However, Bangalore with its plethora of young population and higher spending potential
is and will be the perfect setting for 2D cafe to establish itself as a hub of amazing hangout spots for
recreation and food.

4.4 Competitors
The main competitors of our cafe will be other innovative themed cafes. Some of them are :-

1. Cafe down the alley

2. Two Friends Cauldron

3. Despiwich Dragon’s kitchen

These are said to be one of the best themed cafes in Bengaluru, but along with these cafes, there are
also many normal cafes across the city to give them a tough competition.

4.5 Challenges
A lot of cafes open and close everyday.

1. Operational Cost - Keeping the minimum value for our operational costs for the first few
months will be difficult but it should be in control after a point of time in order to avoid the
future drawback we might face because of it.

2. Management- Maintaining the quality of staff would be a major challenge for the
management team. It is very difficult to find people who are fit to run such a business while
making minimum errors. As a new establishment, the first few months will be difficult in
terms of staffing and training.

4.6 Worst Case Scenario and Contingency Plan

The reason why most cafe startups fail is because they find it difficult to achieve economic
sustainability:

29
The worst scenario of a business would be – not operating effectively and efficiency so we should
be ready with the contingent plan. The reason behind the failure is the most important issue which
should be looked after before we implement our contingency plan. We have prepared our
contingency plans in a way that we can easily alter them in case of any unfortunate event.

Contingency Plan 1 - In case of low demand from customers

Converting book Club into a cafe on both the floors and start renting the second floor for various
events like book launch, Comic cons, book readings, meetings, etc.

Contingency Plan 2- We aim to reach out to the maximum number of people possible, in a case
where we aren't successful enough to do so, we have a substitute plan for the same.

We will advertise our unique proposition in malls and other public places and give a chance to the
public to experience the cafe through various 2D props which would encourage them to visit the
actual cafe to experience more. Such actions would lead to an increased demand for our cafe and a
trending name on the mouth of everyone, since all know a word of appreciation by a few is quite a
good method of promoting our product.

30
CHAPTER 5 - MARKETING

31
5.1 STP: Segmentation - Targeting - Positioning
Segmentation :

• By price: We have decided to offer a reasonably priced membership which will create a
higher value in the eyes of the prospective customers. People who want to experience luxury
will not mind paying an extra rupee for the best that they are getting. We offer interior
pleasant to the eyes and music soothing to the ears which makes the visit all the more worth
it.

• People who can't afford membership can also experience the 2D world by visiting our cafe.

• By service: The cafe assures a quality time spent with family and friends as it offers
minimal or no disruptions or problems in membership. Since it's located in Koramangala,
it’s easier to locate and is safe as compared to the other hangout places. Also, the ambience,
soothing music provides peace to the customers.

• By customer type: Since demographics show that the cafe is located in an area where there
are more young people and also families, the cafe offers a wide range of activities and also
gives the opportunity to modify their experience according to their taste.

• Geographically: The Cafe’s first branch will be opened in Koramangala, Bangalore. Later
we will expand to other areas after we create a name in the market. In future we aim to
expand in other cities as well.

Current and future attractiveness of the chosen market segments

The market segments chosen are feasible for the current and present scenario as there is an
increasing demand for themed cafes and time places which offer a high-quality experience. The
different variety of activities being conducted live help the customers spend time with their family
and friends peacefully. Since we offer what the others don’t, we tend to not to worry much about the
competition hitting us as it is a completely new theme and idea in the city.

Targeting:

Population in Bengaluru falls mainly in the age category of 18-40 yrs. Therefore, we will mainly
target this age group as it consists of both youth that are working and are ready to spend to
32
experience the best and also there are families. The customers that we are targeting belong to
Upper-Middle Class and High-Class Group.

Positioning:

We want to position ourselves as an upscale cafe which is spread across the country with branches
running well and serving the customers to the best of our capability and giving a chance to the
people to experience what they miss in their own city and provide them to get a chance to feel it.

5.2 7P’s Marketing

PRODUCT : Here, the service is being served to the consumers. The cafe provides an innovative
décor to give it an outlook that will attract the customers as soon as they enter. Our golden
membership programme, a mini library will be our major place of income, where we will attract
them through the quality that they are looking forward to and modified according to their demand.
We also will alter our services according to the recommendations and the seasonal variants. Our
product includes a different atmosphere offering an experience to be on the relaxing point of life
which they might have never seen before because of their regular work stress. As aesthetic beauty
attracts and calms people and the theme will definitely attract youngsters, it becomes a perfect blend
of a family and a friendly place to be with.

PRICE : The cafe requires quite a good amount of investments as we tend to provide a different
atmosphere for the customers. The services in the cafe would not be overpriced, as we want the
customer to find the cafe worth the amount they spend. The prices of our services will be meant
mainly for the upper-middle and higher-income earning group. Bengaluru being full of working
class and educational hub, who are ready to spend quality time after a stressful day. Our prices will
be targeted at that consumer market.

PLACE : It will contain enough seating during busy periods, so that everyone will get enough space
to enjoy their quality time. Our cafe is opening in Bengaluru, which is one of the largest cities of
India and growing day by day. Moreover, the concept of our cafe is offering services in a peaceful
33
atmosphere, a mini library where people can have their meetings, book reading events etc.,under
one roof. The people of Bengaluru have an open outlook on things, and therefore we believe that
this cafe will be a good place for interacting with family and friends. Moreover, it is located in
Koramangala, which is one of the favorite leisure areas for everyone.

PEOPLE : The management, Chefs, managers, Cleaners and Securities, these are the people who
are involved in the marketing process, such as deciding business strategies, planning, serving the
customers, cooking the food and cleaning up afterwards, maintain the decency of the cafe, keeping
the place hygienic and avoiding any type of unwanted activities, as without them the cafe would fail
to exist. In this case it does not represent the customers.

PROCESS : How the cafe is managed is paramount to a good business, as unless everyone involved
knows what their functions are to ensure the smooth running of the establishment, none of the
customers will receive good service, or the excellent facilities they expect, or a clean and
respectable place to enjoy it in.

PHYSICAL EVIDENCE : The ambience and decor of the cafe, the environment of the business
comprises the physical evidence of the marketing mix. We aim to provide good service to our
customers to ensure consistency, continuity, and good practice. Our spatial layout will also
contribute in forming the physical evidence as it checks on smooth functionality. Moreover, our
unique physical features, name and symbol will be used in identifying and distinguishing us from
the rest.

PROMOTION : the cafe will be promoted over online marketing, loyalty programs, building
strong bran identity etc,. Providing the best service and rite amount of hospitality will help in mouth
to mouth publicity.

34
5.3 Branding and Advertising Strategy

Phase 1 will include educating customers about our unique selling

proposition, interior design and other services.

Loyalty Programs: First 500 customers contact details will be recorded and
they will be given Golden membership wherein they will get exciting
offers through lifetime.
Online Marketing: All our posts and content will be promoted on
Instagram and other social media platforms too as the goal is to reach
maximum people and educate them. Other techniques like content
marketing and search engine optimization will be carried out later after the
successful establishment of business in the market.

Phase 2 will include promoting the cafe and will focus on portraying how
we are different from the others.

1. Building a strong brand identity plays a crucial role in attracting

potential customers. Strong brand identity also has a more significant
effect on our social media presence amongst our competitors, So it is
important to build our establishment’s identity by understanding our
target clients and creating it around them.

2. The next thing will be to find out what our potential customers would
look for. Finally, by building the brand identity reflecting their
interests on the social channels and also on our advertising material
we will be able to satisfy their needs and increase our sales by 25%.

35
Phase 3 will focus on retaining our potential customers and increase our
reputation in the market.

1. Hospitality on special days (birthdays and anniversaries) through

offering them services like a complimentary cake or cupcakes and
coupons, which can make them appreciate our cordial behavior and
want to come back to our cafe regularly.

2. Providing space and ambience wherein kids, youngsters and aged

people can spend quality time and find their own space in our cafe as
the theme can attract all groups of people.

Phase 4 will focus on expanding our business on a large scale wherein we

will organise book launch events, book reading events at our mini will-o-
wisp library, kids and teens will also be able to read comic books and
spend quality time with solitariness or with their friends.
After the successful completion of this phase we are planning to open
outlets in different areas across the city and then in other states of the
country in coming years.

36
 Poster

Instagram post

37
 Instagram marketing post

5.4 Michael Porter’s five force Analysis

Five Forces Analysis assumes that there are five important forces that determine competitive power
in a business situation.

• Threat of substitution- Although similar concepts do prevail in the market and the customers
may prefer to go for them, but our concept and decor is a new one so there is minimal threat
of substitutes for our cafe Will-O-Wisp. Moreover, till the time we would face the fear of
substitution we would have created a stand for ourselves in the market. Also, our
differentiated services provide us an edge.

• Threat of new Entrants- The threat of new entrants is high because of the following reasons:
Realization of scope in such concepts: More and more entrepreneurs have realized the scope

38
 in such concepts and they know that a concept like this can prevail in the market.

• Bargaining power of customers- The prices are reasonable and the services offered are new
in the market. The volume that we offer is quite worth the amount they are spending. Also,
the coupons and the offers add to their benefits. Therefore, the prices are insensitive and the
bargaining power of the customers is very low as the cafe offers fixed prices for the dishes
mentioned in the menu.

• Bargaining power of suppliers- The bargaining power of suppliers is medium as we would

be only buying quality products and raw materials from the suppliers, so that we can provide
value to our customers. Also, as the business operations to some extent will be affected by
the change in the costs of raw materials offered, the supplier may have some bargaining
power. Also, it will depend on the quantity that we are purchasing from them, if the quantity
is huge the bargaining power of suppliers will be comparatively less than in a situation
where the quantity supplied is more.

• Intensity of competitive rivalry- The idea of our cafe is very innovative and different.
Though prevailing similar concepts in the market are a competition, the intensity of rivalry
is very low. Because we definitely have a unique identity than others, Bengaluru has a
number of cafes but there is no such cafe which offers exactly the same specialty as us.
Though overall competition from rivals might affect us in some cases initially, but it would
not affect our working in the long run as the cafe holds its own image.

39
5.5 Product/Service Description

“Will-O-Wisp” has a peaceful atmosphere. It offers a high level of comfort and value of money. It's
a theme based Cafe. Theme cafes are not mainstream. They stand out. Customers look for
something unique to splurge their money. People just don’t want to come into a cafe, eat, pay and
go. They want something very unique for them to visit the cafe frequently and to discover more
about it. There has been one line which has been successful in doing so, which are the Theme
Restaurants and cafes in the market. Theme restaurants are entirely different from the normal
restaurants as they are based on a theme, be it a jungle or a cave or anything under the sun.

We aim to hire trained professionals to cater to the needs of all the customers. Our management
team is composed of individuals who are efficient enough to handle the complexities of different
departments in the restaurant, such as preparing the different cuisines, maintaining the privacy of
the customers as well. The staff personnel will maintain the restaurant operations and make sure
that it is well maintained.

It has a well-arranged seating with different sections based on interiors signifying different
concepts. It has several private chambers as well, to not to disrupt the customer’s privacy
The population of Bengaluru mainly lies in the age group of 18- 50 years. This is an age group
which comprises graduate students who mostly are fond of experiencing something new,
businessmen and corporate personnel who find a place for socializing and also, families who are
looking for a peaceful and quality time, we are here to serve all those needs and provide the best
possible service.

40
5.6 USP of service/product
The main USP of this cafe is that when you enter, it creates optical illusion, which makes customers
feel as though they’ve crossed dimensions into a comic book illustration. When visitors step
through the door, they’re greeted with black and white comic strip furniture, walls, and floors. Even
the mugs, dishes, and cutlery look like flat line drawings. We aim to provide a peaceful and unique
ambience to the customers as until now this theme hasn’t been introduced in the South Indian
market, the idea and concept of this cafe is new and since many people look for a cafe with a good
interior and atmosphere our 2D cafe can fulfil those needs.

Tagline- It’s one of a kind.

5.7 Sales/ Demand Forecasting

The food and beverage industry keeps on evolving and observing new trends with every time that
passes by. Be it the establishment of food trucks or about going ‘all-vegan’, the industry in India
keeps growing its scope with new and innovative food experiences. Another major trend that is
moulding in the current scenario of theme-based restaurants and cafes.

It is also called ‘concept cafes’ where everything is like an experiment in the initial phase and
includes from food to cutlery to ambience and the whole experience.

Handling a regular restaurant is quite different from operating a theme-based restaurant/cafe in

many ways. The cost of operating differs as theme-based requires a lot of other infrastructure than a
regular restaurant. The process of approaching people is the most important thing; it differentiates a
high-end café from a typical restaurant. Here everything in the restaurant is decided as per the
theme, the menu, props, atmosphere, administration, cutlery and designs, and the area so that the
place should have the look and feel of the theme in its entirety. Hence, our cafe Will-O-Wisp
definitely has a high probability of gaining popularity and attention from many people for it is one
of the kind among the others.

41
CHAPTER 6 - HUMAN RESOURCES PLAN

42
6.1 Organisational Structure

6.2 Number of Founding Members

There will be two founding partners for this venture. Ms. Vanshita Pasari
will be the CFO and Ms. Madhulika Endluru Sudhakar will be the COO.

6.3 Training Procedure and implementation

This is a type of training Programme in which training is given to the employee of the organization
that he/she must become a perfectionist in hospitality. Various professionals from all over the city
who are specialized in this field are invited and training sessions for about two months are
conducted for the employees.

Based on Performance Appraisal, training needs will be constantly assessed every 3 months, in
order to identify any potential gaps. We believe that our induction process will initially help identify
any gap initially, and help bring all employees in line with our vision and style of service.
43
6.4 Management structure
The management Structure of the cafe follows two way communication.

1. Both the partners will be head of one department.

• Human resources and Marketing Department will be led by Partner 2

• Finance Department will be led by Partner 1

2. Head manager - They will lead Floor staff and security Guard

3. Gourmet Chef- They will be head of the kitchen Department. They will lead Sous chef,
floor staff and Barista.

4. Head Manger will also deal with Delivery Staff.

6.5 Number of employees

Department No. of employees required

Managerial department • 1 Head manager

• 4 floor Staff

• 1 security Guard
Finance department Partner 1 (CFO) will be incharge of this
department.
No additional staff is required other than
external CA.
HR and Marketing Partner 2 will be in charge with no additional
staff
Kitchen staff department • 1 gourmet Chef (head chef)

• 2 sous Chef (assistant chef)

• 1 Barista

• 1 Floor Staff
Delivery staff department 3 Delivering staff will be required.

44
6.6 job Description and Specification

Jobs Job Description Job satisfaction

Gourmet chef -Studying recipes -Qualification required- degree in the

-Setting up menu culinary arts , hospitality or related
-Preparing high quality dishes fields.
-Delegate task to kitchen staff -Should
-Apprentice programs are required
be familiar with Sanitation regulations
and implement them in the whole -Extensive professional experience in
kitchen. food service.
-Working hours- at least 9 hours

Sous Chef -Works under Gourmet chef Leads -Formal culinary training -Extensive
kitchen in the absence of the gourmet food and beverage knowledge.
chef. -Knowledge of restaurants industry
and restaurant regulations.
-Trains new employees.
-Strong organisational skills.
-Working hours - at least 9 hours
Barista -Preparing and serving hot and cold -2 years work experience
beverages.
-Great communication skills
-Taking orders and serving customers.
-Customer service skills and
-Cleaning table area. knowledge

-Ordering receiving and distributing -Positive and approachable attitude

stock supplies
Manager -Coordinating with all the departments -Degree in management, hospitality
or any other related fields
-Maintain receipts of stock purchased
-Customer service skills and
-Receiving order payment. knowledge

-Maintaining staff profiles -Excellent communication skills

-Coordinate with vendors and other

suppliers

-Nurture friendly relationships with

customers

45
Floor staff - Cleaning utensils and cutlery -No minimum education required.

- Clear dirty tableware Set tables. -Ability to stand for extended periods

- Assist the other staff -Sound knowledge of proper food

handling procedures
- Assisting customers to get suitable
tables . -Effective communication skills
Delivery staff -To pick food from the cafe, and -Valid Driver's license, Clean driving
transport it to predetermined routes record
and deliver it to the customers.
-No minimum education required
-Taking payment for the food upon
delivery. -Familiar with local streets and areas

6.7 Salary and Fringe benefits.

Salary structure for 3 years.

46
Fringe Benefits

For many workers, the benefits plan offered by their employers is as important, if not more so, than
salary or wages. This is especially true of medical insurance for the worker and his family, since
uninsured illnesses or accidents can wreak financial havoc. Employee benefits aren't cheap, but
offering good benefits can result in attracting the best workers

• Medical Insurance

• Life insurance

• Retirement Benefits

• Paid leaves

6.8 Working hours and conditions:

Basic working hours start from 10 am. Cafés start from 11 am onwards. Last working hour will be
till 9 pm.

• Are responsible for the health and safety of their co-workers and customers.

• Are responsible for work outcomes.

• Communicate with co-workers and customers daily in person.

• Work in a group or as part of a team.

• Work indoors most of the time, but may sometimes work in outdoor serving areas.

• Often wear a special uniform or dress according to a dress code.

• Generally, have a set schedule each week

• May work part time or full time, but most work less than 40 hours a week.

• May work weekends, evenings, and holidays.

47
6.9 Punctuality, leave policy and maternity benefit:

• Punctuality Policy: Employees are expected to be present for work, on time, every day. Regular
attendance and punctuality are important for smooth operation of your team and the company as
a whole. Arriving late, being tardy, and absenteeism cause disruptions and burdens colleagues.
If any of the workers are absent for more than 4 days without any notice, then they’re obliged to
work extra shifts or get a cut in their salary accordingly.

• Leave policy: Paid leave of minimum 15 days casual leave and 15 days sick leave is provided to
employees excluding national holidays in a year. After which the organization would be
deducting the amount from their salary depending on the no. of leaves taken. An employee
becomes entitled to these leaves after working for a specified period. The employee who works
in the company on national/other festival holidays will be entitled to get double wages for that
day.

• Maternity Benefit Policy: We are firmly committed to protecting the rights of expectant
mothers. This policy is made to treat women affected by pregnancy, childbirth or related
medical conditions in the same manner as other employees unable to work because of their
physical condition in all employment aspects, including recruitment, hiring, training,
promotion and benefits. At that point, pregnant employees are entitled to receive all benefits.
When the employee returns to work, she is entitled to return to the same or equivalent job with

no loss of service or other rights or privileges.

6.10 Recruitment Sources

Objective:

• To streamline the recruitment process

48
• To ensure that we always hire right people at the right time for the right job

• To establish a strong employer branding to attract the best talents available in the industry.

Sources of Recruitment

In this industry the best source of recruitment would be external sources through the means of
advertisement in newspapers, magazines, billboards, through agents, through exchanges etc. Once
we begin operations a prominent source of recruitment will be employee contacts and
recommendations. This is used for Sous Chefs, Waiters and Support Staff. The next source is the
company’s contacts in the industry. The last source is Agencies. For managerial posts, executive
chefs and corporate employees, the company uses online job portals, particularly [Link]

6.11 Retirement Policy

1. Employees’ Provident Fund Organization: The employees' provident fund organization is a

statutory body of the government of India under the ministry of labor and employment. It
administers a compulsory contributory provident fund scheme, pension scheme and an
insurance scheme. It is one of the largest social security organizations in India in terms of
the number of covered beneficiaries and the volume of financial transactions undertaken.

2. Retirement Gratuity: Retirement gratuity is admissible to all employees who retire after
completion of 5 years of qualifying service at the rate of .one-fourth of consideration for
each completed six monthly period of qualifying service subject to maximum of 16 1/2
times the consideration or amount Rs.3.50 lakhs, whichever is less. Consideration for the
purpose of gratuity means: basic pay, stagnation increment, dearness pays, non practicing
allowance and dearness allowance on the date of cessation of service.

49
CHAPTER 7 - PRODUCTION AND OPERATIONS

50
7.1 Floor plan

Ground floor

Kitchen

51
 First oor

7.2 Materials used

(Which include confectioners, dehydrators, kitchen tools, measuring tools and scales, mixology,
moulds, molecular tools, serve ware and whippers)

Deep freezer-1

Saute Pan-8

Stock/Soup pots- 8

Saucepans-8

Chef knife set-15

Pizza paddle-4

Whisks-4

52
fl
Mixing bowls-20

Plastic inserts for coolers

Steam Table

Entrée plates-200v

Pasta bowls-100

Metal or plastic shelves for walk in coolers

Cleaning rags

Cleaning dispenser

5 extinguisher

Containers

Computers Sets for billing

Bookshelf and a stage Café Furniture

Plates and Cutlery

Air Conditioner – 18 pcs (1.5 ton)

Ceiling Speakers – 1641

Speaker Amplifier – 2

Light Setup

7.3 Quality policy

Quality policy and certi cate Safe Quality Food Standard (SQF) Certi cation
Safe Quality Food (SQF) Certification from SGS proves that our organization produces, processes,
prepares and handles food products to the highest possible standards. SQF is designed as a food
safety programme, but it also covers product quality (at level 3), a feature that is unique to a

53
fi
fi
certification programme of this type. The SQF programme is recognized by the Global Food Safety
Initiative (GFSI) as a scheme that can offer a seamless ‘field to fork’ food safety and quality
certification solution. It provides supply chain management for both primary production and food
manufacturing and Distribution.
The SQF system consists of the SQF Code Edition 7 and its corresponding guidance documents. It
is a Hazard Analysis Critical Control Point (HACCP), quality-based supplier assurance code
designed to meet the food safety and quality system requirements applied by a primary producer.
The SQF Institute’s Code is a rigorous and internationally-credible food safety management system.
Our SQF Certification programme and SQF training courses provide all food manufacturing,
distribution and trading organizations with an opportunity for continuous improvement.

There are three levels of certification available with SQF Code Edition 7: Level 1: Food Safety
Fundamentals

Level 2: Certified HACCP Food Safety Plans

Level 3: Comprehensive Food Safety and Quality Management Systems

7.4 Maintenance Policy

In our cafe, the maintenance function is handled by professionals in the most cost-effective manner
possible. Components of a maintenance policy:

● Prioritization of work: Our main priority would be to maintain the restaurant as well as
we can to cater to the customer’s needs.
1. Emergency repairs

2. General cleaning

3. Inspection

4. Preventive maintenance

● Performance standards and goals: We will set a minimum level of performance or cost
effectiveness which will reflect the level of maintenance and will be an indication when that
minimum level goes down.
Work order system: A comprehensive work order system that includes all work request information
54
like source of work, description of work, priority, cost to complete, days to complete, and hours to
perform. This information is required for the Authority to plan for the delivery of maintenance
services as well as evaluate performance. To obtain the greatest effectiveness, all work requests and
activities performed by maintenance staff must be recorded on work orders.

1. Safety procedures

2. Health and safety standards

Long range planning: The Authority will put in place and maintain a long-range

maintenance planning capability in order to ensure the most cost-effective use of Authority
resources and the maximum useful life of Authority properties.

7.5 Location Policy

Highly pampered is the Koramangala crowd, blessed with several places to visit in Koramangala.
Being in close proximity to several tourist spots, Koramangala people enjoy luxurious stays to
thrilling get togethers, having wonderful time with their families and friends, going out for a dinner
or having a family dine out, our location would be perfect for the start. It is very much suitable
because students as well as families come to this place to enjoy their day out. Having said that, this
place is very beautiful and has many places to spend quality time. Will-O-Wisp will surely call in
many teens, youngsters and families.

55
CHAPTER 8 - FINANCIAL PLAN

56
The following chapter of Financial plan discusses about the all the financial details about the
functioning of the cafe through the funds provided by vanshita pasari – Rs.20,00,000/-; Madhulika
Endluru Sudhakar Rs20,00,000/- , HDFC Bank – 60,00,000 @ 9.8% p.a

8.1 Initial Investment

Table 8.2- Initial Investment

INVESTMENTS AMOUNT

Land Security Deposit (3 Months Deposit) 700000

Civil work and Tiling @ 40 sq. ft.(finishing) 72,000

Lighting in Building @ 75 sq. ft. 135,000

(Includes Wiring, Purchasing and Installation)

57
 Texture and Paint @ 75 sq. ft. 135,000

Air Conditioner (41,990/-) 8 pcs 355920

Ceiling Speakers 13,744

(Bosch Speaker – Rs. 859)

Toilet (2 sets) [1 set cost 96,700 app.] 193400

Computers on all 2 Floors 94000

(Dell Inspiron 5509- Rs. 47000)

Ground Floor Interior (Includes all Lounges 500000

and Sofa Sets)

CCTV Camera (HikVision – 20 cameras) 49,986

First Floor Interior 800000

Plates and Cutlery 150000

Café Machines 500000

Crew Uniform 45,000

TOTAL 3744050

8.2 Sources of Funds

Following are the sources of funds

Table 8.3- Sources of funds

Source of Funds Amount

Vanshita Pasari 20,00,000

Madhulika Endluru 20,00,000

HDFC Bank @ 9.8% 60,00,000

58
8.3 Cost of Capital

Salary is given to Partners. The only borrowed fund is Loan from HDFC bank @ 9.8%
Table 8.4- Cost of Capital
Year Funds Interest/ Rate
Salary

2021-2022 Partners' funds

4000000 2400000

Long term
Borrowing

9.80
6000000 544852
%

2022-2023 Partners' funds

4000000 5200000

Long term
Borrowing

9.80
6000000 444598
%

2023-2024 Partners' funds

4000000 6000000

Long term
Borrowing

9.80
6000000 334066
%

8.4 Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its
estimated residual value. Depreciation has been provided on the WDV method. The fixed assets for
the business comprises of Cooking Equipment, Cutlery and Furniture & Fittings

59
 Table 8.5- Depreciation rates

Useful Life Rate of Depreciation

Furniture & Fitting 10 years 10%

Cutlery 3-4 years 50%

Café Machines 4-5 years 30%

Table 8.6 - Depreciated values

Year
Item Year 2 Year 3
1

10800 9720 8748

Furniture & Fitting
00 00 00

37,5 187
Cutlery 75000
00 50

3500 3500 2450

Cafe Machines
00 00 00

15050 13595 11 3 8 5
Total
00 00 50

8.5 Revenue Model

The Cafe is divided into two floors.
Ground floor is a cafe. First floor is an exclusive area where only members can enter. It has a lot of
Theme books, comic books, manga etc. It also has a stage to exclusive events. Members can use it.

Table 8.7 Membership pricing (In Rs.)

Time Period Monthly Quarterly Annually

5
5,5
Membership 0 1,400
00
0
Customers can get Access to the exclusive second floor through membership only. Membership can
be bought on a monthly, quarterly, and Annual basis. Ground floor cafe will be open to all.

60
 Table 8.8 Revenue Projection (in Rs.)
Particulars Month Month Month Month 8- Year 1 Year 2 Year 3
(Average
1 2-3 4-7 12 )

Membership Programme

Memberships 50 200 500 1000 1000 1400 1800

Avg. Revenue 1400 1400 1400 1400 5500 5500 5500

T o t a l 70000 280000 700000 1400000 5500000 7700000 9900000

Revenue

Café

Daily Avg. 100 70 70 80 80 100 120

Customers

Revenue Per 300 300 300 300 300 300 300

Customer

Daily Average 30,000 21,000 21,000 24,000 24,000 30,000 36,000

Revenue

No. of days 30 60 90 150 330 330 330

T o t a l 90000 126000 189000 3600000 7920000 9900000 1188000

Revenue 0 0 0 0

Table 8.9 Consolidated Revenue

Particulars Year 1 Year 2 Year 3

Total revenue per year 13,420,000 17,600,000 21,780,00

0

61
8.6 Operating Expenses
Table 8.10 Operating expenses (2021-2022)

2021-2022

Operating Expense

Sr. Particulars Rate Total (Per Total ( Per

No. Annum) Month)

1 Land On Rent Rs.170,000/Month 2,040,000.00 170,000.00

2 Power 660 KWH @ Rs 6/ KWH 3,960.00 330.00

3 Water 2500 per month 30,000.00 2,500.00

4 Marketing 1500000 125,000.00

5 Cleaning Materials Rs 10,000/- per 120,000.00 10,000.00

month

6 Electricity Rs 30000/- per 360,000.00 30,000.00

month

7 Office Rs 1000/- per 12,000.00 1,000.00

month
Miscellaneous
Expense

8 Miscellaneous Rs 5,000/- per 60,000.00 5,000.00

Grocery month

9 Repair And Rs 20000/- per 240,000.00 20,000.00

Maintenance month

10 Miscellaneous Rs 15000/- per 180,000.00 15,000.00

month

Total 4,545,960.00 378,830.00

62
 Table 8.11 Operating expenses (2022-2023)

2022-2023

Operating Expense

Sr. Particulars Rate Total (Per Total ( Per

No. Annum) Month)

1 Land On Rent Rs.170,000/Month 2,040,000.00 170,000.00

2 Power 660 KWH @ Rs 6/ KWH 3,960.00 330.00

3 Water 2500 per month 30,000.00 2,500.00

4 Marketing 1480000 123,333.33

5 Cleaning Materials Rs 15,000/- per 180,000.00 15,000.00

month

6 Electricity Rs 30000/- per 360,000.00 30,000.00

month

7 Office Rs 1000/- per 12,000.00 1,000.00

month
Miscellaneous
Expense

8 Miscellaneous Rs 5,000/- per 60,000.00 5,000.00

Grocery month

9 Repair And Rs 20000/- per 240,000.00 20,000.00

Maintenance month

10 Miscellaneous Rs 15000/- per 180,000.00 15,000.00

month

Total 4,585,960.00 382,163.33

63
 Table 8.12 Operating expenses (2023-2024)

2023-24

Operating Expense

Sr. Particulars Rate Total (Per Total ( Per

No. Annum) Month)

1 Land On Rent Rs.170,000/Month 2,040,000.00 170,000.00

2 Power 660 KWH @ Rs 6/ KWH 3,960.00 330.00

3 Water 2500 per month 30,000.00 2,500.00

4 Marketing 1500000 125,000.00

5 Cleaning Materials Rs 20,000/- per 240,000.00 20,000.00

month

6 Electricity Rs 30000/- per 360,000.00 30,000.00

month

7 Office Rs 1000/- per 12,000.00 1,000.00

month
Miscellaneous
Expense

8 Miscellaneous Rs 5,000/- per 60,000.00 5,000.00

Grocery month

9 Repair And Rs 20000/- per 240,000.00 20,000.00

Maintenance month

10 Miscellaneous Rs 15000/- per 180,000.00 15,000.00

month

Total 4,665,960.00 388,830.00

64
8.7 Profit and Loss Account
Table 8.13 Projected P&L Account (in Rs.)

PARTICULARS 2021-22 2022-23 2023-24

Gross Sales

Total revenue per year 13420000 17600000 21780000

Net sales 13420000 17600000 21780000

Expenses

Operating Expenses:

Raw Materials 1400000 1800000 1800000

Salaries 6480000 9484000 10498200

Operating Expenses 4545960 4585960 4665960

Non-Operating Expenses

Depreciation 345000 145500 220950

Interest on loan 544852 444598 334066

Total Expenditure 13315812 16460058 17519176

Net Profit 104,188 1,139,942 4,260,824

less: Tax 31256.4 341982.6 1278247.2

Net profit after tax 72931.6 797959.4 2982576.8

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8.8 Balance Sheet
BALANCE SHEET

2021-2022 2022-2023 2023-2024

LIABILITIES

4,000,000. 4,000,000. 4,000,000.

Partner’s Capital
00 00 00

5,022,140.0 3,944,027.0 2,755,380.0

Loan
0 0 0

2,982,576.8
Add: Net Profit 72,931.60 797,959.40
0

TOTAL LIABILITIES 9095071.6 8741986.4 9737956.8

Non-Current Assets:

Fixed Assets 250000 350000 180000

Furniture & Fittings 1080000 972000 874800

Cutlery 75000 37500 18750

Café Machines 350000 350000 245000

Investment 2500000 2000000 1500000

Current Assets

Security Deposit 700000 700000 700000

Current Assets 200000 400000 800000

Inventory (Manga/Comics) 300000 350000 575000

Cash in Hand 35000 140000 160000

Cash at Bank 2000000 2400000 4400000

Miscellaneous expenses 1605071.6 1042486.4 284406.8

TOTAL ASSETS 9095071.6 8741986.4 9737956.8

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8.9 Break-even analysis
Table 8.14 Break Even Analysis

Break Even Analysis

Particulars Amount( In Rs. )

Sales 13420000

Variable Cost 1872000

Direct Material 1400000

Contribution 10148000

Fixed Cost 8883960

Profit 1264040

P/V Ratio 75.61847988

Break Even Sales 11748398.03

8.10 Pay- back period

The payback period refers to the amount of time it takes to recover the cost of an investment.
Simply put, the payback period is the length of time an investment reaches a break-even point. In
the previous table we calculate the break-even sales, next table calculates the payback period.

Table 8.15 Pay-back period

Pay-Back period

Particulars Amount(in Rs.)

Sales 13420000

Break Even Sales 11748398.03

Payback Period 1.142283396

1 year 2 months (Approx )

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8.11 Risk Analysis

Cafe Will-o-wisp might have to face a few risks with respect to the following mentioned reasons:
● Over estimation of revenues: If the revenue mode that we have assumed to be true, In a case

where the revenues are less than the amount assumed then it will pose a threat to the
efficient working of the restaurant because all the other operations or the profit and loss
statement have been formed on the basis of arbitrary figures.
● Scope: It's very difficult to determine the accurate scope of the industry in these uncertain
times.
● Competition: Bengaluru has several others, though our concept is different but it being the
hub, competitors might arise.
● Inflation: If the prices of the food supplies/ raw materials rise in the near future or further

future it will affect the effective and efficient operations of the club. Since, the cost of
production for us will increase which will lead to a reduction in Revenue and profit.
● Abnormal loss: The key risk for cafe businesses is fire. Fires in commercial kitchens are a

common occurrence and can have potentially devastating effects. A kitchen fire can start in
an instant and take hold very quickly. There is a high fire risk associated with commercial
kitchens and the potential for accidents is exacerbated in these fast-paced, highly-pressured
environments. Combine this with large volumes of flammable cooking oil, naked flames and
heat sources, and it simply increases the risk.
● There is risk of theft as well, therefore we will have to keep track of what goes on in the
restaurant, like buying good quality safe where we can store our precious possessions of the
restaurants.
● Pandemic- the biggest risk of all.
● Recovery strategy: There will be a business continuity plan, which will help overcome and
fight the risks and despite the failures the business can keep going due to the plan proposed.

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CHAPTER 9 - EXECUTIVE PLAN

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Our strategies initially will focus on giving a simple and easy approach, we intend to succeed by
giving people a combination of excellent and interesting food in an environment that appeals to a
wide and varied group. We will focus on maintaining quality and establishing a strong identity in
our target market. Our main focus in marketing will be to increase customer awareness in the
surrounding areas of Bengaluru.

We will keep our standards high and execute the concept so that word-of-mouth,social media and
print ads will be our main marketing force. We will create an appealing and soothing environment
with unbeatable quality at an exceptional price. An exciting and themed restaurant, we want to grab
the attention of people across the city. Therefore, the execution of our concept is the most critical
element of our plan. All menu items are moderately priced for the area. While we are not striving to
be the best -priced restaurant, we are aiming to be the value leader.

We aim to keep prices as reasonable as possible, so that we can grab a large market share. We aim
to keep our prices minimum for 2-3 years till the time we are able to function smoothly and start
making a profit. We operate with an optimistic opinion that we will be able to provide a good and
memorable experience to get a few loyal and regular customers.

Marketing will be implemented Phase wise. Interior will be checked, maintained and repaired
regularly. Food menu will also be changed in few months according to the Chef’s Knowledge and
Team discussion.

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CHAPTER 10 - CONCLUSION

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To conclude, our cafe Will-O-Wisp is nothing short of an innovation. As entrepreneurs, in the
restaurant and cafe industry, we have to look both at feasibility as well as an engaging concept.
Bengaluru is a melting pot for good eateries and cafes. With the bar for competition set high, we are
posed with the challenge of creating a concept that will appeal to both the tastes as well as
predetermined expectations.

Cafe Will-O-Wisp will be a redefining experience in Bengaluru. The central location of the club in
Koramangala will help in attracting a large market share. With a streamlined focus on delivering top
class customer experience, we are equally focused on developing the staff required to deliver that
experience. We have identified that the success of this cafe is highly dependent on the ability of our
staff to fit in with our theme, and share our vision and love for delivering an amazing experience in
terms of food and personalized experience.

We aim at becoming market leaders, in the themed restaurant category and look to expand our
operation around India, serving as a hub for diners looking for an experience different from the rest.
We aim at being the central cog of this beautiful fusion and aim to reap the complete benefit of
being first movers in the southern India market.

ORIGINALITY REPORT : 7%

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