Business Idea Development for Indian Tadka Restaurant

This document discusses the business idea development for Indian Tadka restaurant, including market analysis, SWOT analysis, and financial requirements. It explores the need for a themed restaurant in the prime location of the United Kingdom, serving a wide variety of North and South Indian food. The document also covers the Porter's generic model and the strategies to beat the competition in the food industry.

Innovation and
Entrepreneurship

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Business Idea Development .......................................................................................................3
Task 2...............................................................................................................................................5
Business Plan .............................................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business involves an organisation that are engaged in different industrial, commercial
and professional activities. Some business is perform with the intention to earn maximum profit
and aim of many business is to serve the services to society and not to do business for profit
making purpose. Some are operate to fulfil charitable mission. For any type of business it is
necessary to formulate business plan so that it can become easily to make arrangement and tends
to run the business smoothly. As it is prepare for long term and according to that only it become
possible to formulate strategies and frame policies for the purpose of business survival. In this
project business idea is to open Indian Restaurant with the name “ INDIAN TADKA ”in Park lane
, London. The main objective of such restaurant is to serve Huge variety of North and south
Indian food to the people who search for pure vegetarian food court. Various topics related to
business development plan , porter's generic model, SWOT, financial requirements are discuss in
the report (Alayoubi, 2020)
TASK 1
Business Idea Development
On the basis of analysis it is observe that people do not hesitate to spent amount for
delicious and tasty food. And youngster try new food places to take experience. So business idea
which tends to generate is to open themed restaurant in the prime location of the United
Kingdom so that large audience can be attracted easily. The creation of unique and innovative
idea to open theme restaurants. The restaurants will stand out from other competitors due to their
unique design and excellent décor. The costumes of waitresses and waiters will be stunning. Fine
dining experience in cozy atmosphere will be offer to their customers. The main moto of such
restaurant will be to provide quality food item as it will not only concern regarding great food
but to make excellent atmosphere and will offer great services. The menu will appeal to a wide
and varied according different types of customers. It is international with interesting twist of
offering genuine traditional recipes. Special theme nights will be planned like musical nights in
restaurant, Local artist's opening, Midsummer party, Easter dinner , presence of wine tasting
lunch and dinner , smorgasbords as well as special ethnic food & drink nights. As all these
features will attract large customer base. Without exception focus will be on cost controlling

because there are tough competition in hospitality and food industry. And restaurants must focus
for various ways so that to differentiate their business place for the purpose to maintain &
achieve competitive advantage. The restaurant will be plan to design in such a way that no other
hotels and restaurants in the area have this type of concept & atmosphere as this new plan
provides great opportunity to business and through capturing all the opportunity new business
can take entry into profitable niche in the market (Bekmansurov, 2019)
To satisfy the planning , smart strategies must be framed so that by implementing these
effective policies and strategies all work will be done in planner manner. To take competitive
advantage , the porter's generic model is follow-
Porters generic model
The generic strategies can be used to determine or formulate strategies for setting and
implementing new business idea. To beat competition organisation choose clear course. The
main strategies to concentrate on following elements such are describe as follows-
Cost Leadership: The main motto of organisation to capture large part of market share
by appealing to cost consciousness . The main objective of the company is to become lowest cost
producer in context to selected food industry. The main target of the company is to eliminate or
reduce unnecessary cost. This tends to permit the industry to offer their food items and services
below the average cost as a result it will achieve greatest profit. Organisation who tends to
exhibiting cost leadership try to eliminate various traits & attributes that make them best suited
for respective approach such as high level of productivity, low cost base with regards to labour,
overheads , material. Use of bargaining power for the purpose to negotiate low production cost.
Differentiation: the main attention of company is to make their item different from
competitors product so that brand can take competitive advantage. Such type of organisation
make emphasise to target large market and concentrate on concept of differentiation in wide
scale in specific industry than only it will be consider as cost led company. In terms to industry
services , products , the method to gain differentiation can broadly vary across industries. It make
focus to determine that in what manner products as well as brand marketed the product so that it
achieve an image for which audience value. At the time of food items , managers will leads to
focus on various criteria that are considered by consumer with in the industry. The important
trait associated with differentiation led company are strong research , innovation and

development. Superior quality of product, Effective branding as well as marketing (De Bernardi,
2020)
Cost Focus: it indicates those company who tends to develop low cost advantage but
with small market segment as these are average market leading product and will be acceptable to
sufficient number of consumers in terms to earn maximum profit.
Differentiation focus: In this company, try to develop product differentiation , but only
up to small number of , market segment. For respective strategy , first company should identify
small consumer group to focus on to identify different set of needs and if there is no variation in
need than there is no valid basis for differentiation. As it is famous niche marketing strategy .
This method is adopted by small business to force them to niche (Dodgson, 2020)
As customer would prefer to eat food in this restaurant because it provide large variety of
food items at affordable prices and the services which is given by their staff members make the
customers happy and satisfied.
Task 2
Business Plan
1 Market Analysis
The main need of the customer who are Indians in that location is that they like to eat
Indian food but the main problem is that it is not available in the restaurants of United Kingdom.
Therefore to satisfy the desire of customer it is planned to open new restaurant which is totally
pure vegetarian. The target market of this restaurant is Indian customers and other people who
love to eat Indian food. It is Theme restaurant as it is beautifully design so it attracts large
audience. In this restaurant huge variety of north , south and east India dishes are available. The
size of the restaurant is medium as it employees around 50 employees to serve their services to
create good brand image. The dinning area in the restaurant is so large so that around 300
customers are easily set at a time. As many restaurants are open in beaten path but choosing to
open restaurant in a prime locations so that large customers might visit mostly in special as well
on festive occasion (Duening, 2020)
2 Industry Analysis

As the business will deals in food and beverages industry. The most common
characteristic of such hotel and restaurant industry are explain in detail in the below mentioned
paragraphs as these are as follows-
Character of food industry Wide range of beverages Convenient Location Tasty & delicious food Good services Reasonable cost Hygiene as well as cleanliness
 Hospitable atmosphere
The competition in this industry is very tough. As the location where new restaurant is
plan to set up involve huge competitors because so many restaurants and hotels are placed in that
location. Few of the famous restaurants that are located in UK are Casamia, waterside Inn,
Belmond le Manoir, Hands and flowers etc. as these are great competitor to the restaurant which
is newly opened (Kiminami, 2019)
3. Operation Detail
The location of the premises is Park Lane, London. It is the major road in the city. The
street is key bus corridors in location of Central London. Park lane is the part of inner ring road
and starts from Hyde park corner in South to Marble Arch in North and it tends to separates
Hyde park to the west from Mayfair to east. There are various large and historically important
beautiful properties. Beautiful and attracted parks are present in some areas of that location.
4. SWOT Analysis:
Strength
 The location of the restaurant “ Indian Tadka” is so perfect as there is no India restaurants
and hotels are there so it is advantage to business because it tends to increase demand of
Indian Tadka by the Indians and who like to eat such type of food.
 Infrastructure and interior of the restaurant Indian Tadka is very attractive and beautiful.
In Indian state style their staff serve the meal to customers. As state wise theme of the
restaurant is set for example according to state interior of restaurant is decorated.
Weakness

 As it serves only vegetarian Indian food and non availability of Non veg in the restaurant
Indian Tadka make negative impact on the business of it. Because generally 95 % of the
population of UK like to eat Non veg food item (Laspita, 2019)
 As their competitor serve multicusine but Indian Tadka prefer to serve Indian cuisine
only due to non availability of sufficient capital.
Opportunities
 It has great chance to expand business by serving multi cusine for different type of people
of different locations having different taste.
 It is great opportunity for “ Indian Tadka ” to start to serve junk food , fast food because
youth love to eat junk food most so it can easily expand the business by serving variety
of food and attract large part of the audience .
Threat
 Threat of entry of new similar business and high competition is generally face by Indian
Tadka restaurant. Non Stability in demand of customers as preference of people change in a minute so it is
difficult to analyse the market in context to consumers (Liguori, 2020)
5. Financial Requirements
To open new restaurant in prime location involves huge cost and owner must make
arrangement of large amount so that they can make investment in the things that are necessary
for business. Initially it involves huge cost to purchase furniture, decorative items, in purchasing
crockeries, necessary equipments. As building is taken on lease which also require large amount
to make payment to lesser. To purchase raw material there is also a need to arrange large
amount of money. On the basis of following factors we can get an idea of cost that needs to set
up a restaurant. Capital- To start journey as restaurateur there is need to applying for bank loan.
Collateral security is given to take loan and it also require to find a guarantor . Another
method to secure the initial investment is to look for investors. Buy/ Rent: The fixed overhead for restaurant is monthly rent/ EMI. It involve
maintenance charges for building. Staff- There is need to appoint as well as retain skilled employees who helps to run the
restaurant smoothly. Hiring can be done through referral or by giving advertisement in

social media, news papers etc. as there will be need to money for payment of yearly
bonus, salaries and also fund will require for advertisement ( Schuelke-Leech, 2020) Licences- The cost of obtaining licenses vary as per the type of restaurant. It is expensive
to take licence of liquor. Food costs- To prepare meal there is need to purchase fresh vegetables. The regular food
cost is around 20 to 30% of the price that was written in the menu card. One should
compare the prices of three or four vendors and than purchase the groceries which is less
costly.
 Advertising & marketing- By taking help of offline & online media we can create
awareness among audience regarding the restaurant which we are ready to start. Not more
than 2% of revenue is spent on the activity related to marketing & advertising (Wang,
H., 2019)

Cash flow refer to net amount of cash equivalents and cash which is transfer inside or
outside of business operations. It is prepare by a company in order to identify there financial
position in market place (R.A and Ullah, 2014). Every organisation estimate and try to enhance
there profit as compare to there part year profit. Cash flow statement of INDIAN TADKA is
given below:-
` (Amount in £)
Particulars January February March April May June
Sales 3500 4600 4700 5200 6200 6500
Other income 1500 2500 2600 2650 2000 2200
Total inflows 5000 7100 7300 7850 8200 8700
Cash Outflows
Variable cost:
Materials 450 500 530 650 740 830
labour 490 540 580 750 820 940
Other variable cost 200 250 260 340 420 520
Fixed cost:
Rent 1000 1000 1000 1000 1000 1000
Salaries 800 800 800 800 800 800
Other fixed cost 200 250 250 360 320 320
Net cash flow 1860 3760 3880 3950 4100 4290
Particulars July August September October November December Total
Sales 8900 14000 18500 20000 21500 24500 138100
Other income 2250 2050 1300 2600 2750 2850 27250
Total inflows 11150 16050 19800 22600 24250 27350 165350
Cash Outflows

CONCLUSION
After deep study and analysis it is observe that people do not hesitate to spent amount for
delicious and tasty food. And youngster try new food places to take experience. So business idea
which tends to generate is to open themed restaurant in the prime location of the United
Kingdom so that large audience can be attracted easily. The creation of unique and innovative
idea to open theme restaurants. As it is not easy to run a successful restaurant. In the beginning it
attract multiple expenses. The restaurants will stand out from other competitors due to their
unique design and excellent décor. Also if good and tasty food is deliver consistently, than in
restaurant customers will keep coming. The restaurant will be plan to design in such a way that
no other hotels and restaurants in the area have this type of concept & atmosphere as this new
plan provides great opportunity to business and through capturing all the opportunity new
business can take entry into profitable niche in the market (Sergi, 2019)

REFERENCES
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