Advance Diploma: Business Plan for Indiana Restaurant, Melbourne

This document presents a comprehensive business plan for Indiana Restaurant, a proposed 85-seat establishment offering North Indian and Continental cuisine in Flinders Lane, Melbourne. The plan details the restaurant's business structure as a sole proprietorship, its target market focusing on the Indian population and local businesses, and its marketing strategies emphasizing word-of-mouth and newspaper advertisements. The plan outlines the restaurant's vision to become a leading dining choice for Indian food, its goals to attract 100 daily customers, and its financial projections anticipating profitability within the first year with a 10% annual growth rate. Key aspects covered include business details, registration, premises, design, organizational structure, management, innovation, risk management, sustainability, market research, SWOT analysis, advertising, sales objectives, and detailed financial forecasts including profit and loss statements, balance sheets, and cash flow projections. This plan aims to provide a roadmap for the restaurant's success by focusing on quality service, a diverse menu, and effective management strategies.

Running head: ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Advance Diploma in Hospitality and Management
Name of the Student
Name of the University
Authors Note
Course ID

1ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Business Plan Summary:
Business Name: Indiana Restaurant
Business Structure: Sole Proprietorship
Date Registered: 1st April 2018
Location: Flinders Lane Melbourne
ABN: 111 455 596 456
GST: Registered under GSTR ACT 2000
Relevant Experience of Owner: The owners owns the experience of working in a restaurant
as the restaurant manager.
Products: North Indian and Continental Foods
The Market:
Target Market:
The target market of Indiana Restaurant would be focusing on Indian populations range from
low to middle group income class. The target market for Indiana Restaurant would also
include the local business that are specifically locate inside or outside of the Melbourne park
Marketing Strategies:
Word of Mouth: The owners have the database of current existing customers and would be
relaying on this method of attracting and growing the new business.
Newspaper Advertisement: Indiana restaurant will be using the using newspaper
advertisement to promote the business among the probable customers.
The Future:
Vision Statement:
The vision of Indiana Restaurant is to be become the first choice dining place for Indian
foods in the local bay area and be recognized as the respected company. The vision of the
Indiana Restaurant is to be measured by its customers, its employees and the community the
restaurant is representing.
Goals and Objectives:
The objective of Indiana Restaurant owners is to attract a minimum of around 100 customers
each day for dining purpose during the first year of business. The goal of the business is to
provide its customer with excellent pizza service at the reasonable price and offer customer
with the outstanding customer experience measured in terms of 5 per cent rise in sales every
year.
The Finances:
The company anticipates to remain profitable in the first year of operations with the profits
increasing over the span of four years as the owners of Indiana Restaurant would be
establishing and increasing its customer base. It is anticipated that the business will be
generating profit at a rate of 10% on annual basis.

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Table of Contents
The Business..............................................................................................................................4
Business Details.........................................................................................................................4
Registration Details....................................................................................................................4
Business Premises......................................................................................................................5
Location and specific operations................................................................................................5
Restaurant design.......................................................................................................................6
Organization Chart.....................................................................................................................6
Management & Ownership........................................................................................................7
Key Personnel............................................................................................................................8
Innovation................................................................................................................................10
Insurance..................................................................................................................................12
Risk Management.....................................................................................................................12
Operations................................................................................................................................14
Sustainability Plan....................................................................................................................15
The Market:..............................................................................................................................16
Market Research:.....................................................................................................................16
Market Targets:........................................................................................................................17
Environmental/Industry Analysis:...........................................................................................18
Customers:................................................................................................................................20
S.W.O.T Analysis:...................................................................................................................20
Competitors:.............................................................................................................................22

3ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Advertising & Sales:................................................................................................................23
Advertising and sales promotion:.............................................................................................23
Sales and marketing objectives................................................................................................24
Unique Selling Position............................................................................................................24
The Future:...............................................................................................................................25
Vision Statement:.....................................................................................................................25
Mission Statement:...................................................................................................................25
Business Objectives:................................................................................................................26
Action Plan:..............................................................................................................................26
The Finance:.............................................................................................................................27
Key Objective and Financial Review:......................................................................................27
Projected Profit and Loss:........................................................................................................28
Assumptions:............................................................................................................................28
Balance Sheet Forecast:...........................................................................................................28
Profit and Loss Forecast:..........................................................................................................29
Expected Cash Flow:................................................................................................................30
Breakeven:................................................................................................................................30
Reference List:.........................................................................................................................31
Appendix:.................................................................................................................................35

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The Business
Business Details
The Indiana Restaurant will essentially be a moderately priced 85-seat restaurant
offering Indian cuisine and family style food as well as service. Fluffy deep fried luchi, puloa,
(fish curry), mutton biriyani, butter chicken, tandoori chicken along with deserts like Mishti
Doi and Sandesh among many others are all there in the menu. The business will also offer
speciality selections counting lighter options along with smaller portions for particularly
children. The restaurant will necessarily be a family owned one and operated by Writo and
Jeff Watson.
Together both the operators have a collective experience of more than 25 years in the
area of restaurant and catering segment. Essentially, the Watsons will necessarily be leasing a
3000 square feet space situated at Flinders Lane, Melbourne. In essence, this site for business
was previously leased as a Continental Restaurant. Nevertheless, this location was previously
used as a space for restaurant and the former tenant eliminated most of the furniture-fixtures
as well as equipment will need to be reinstated. In addition to this, this specific location will
also call for the need of supplementary renovation for updating the lavatories and enhance the
space for tables in particularly the dinner area (Pakroo, 2018). Furthermore, the decor of the
restaurant will also include wood accented chairs together with beautiful tablecloths.
Registration Details
The business registration details reflects that is primarily available for different new
businesses operating as sole trader, company, trust, superannuation funds, partnership can
necessarily make applications for business name. In addition to this, the business also needs
to get an Australian Business Number (ABN) and tax registrations among many others.
Existing business concerns having ABN can apply for tax registrations else wise AUSkey

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login. ABN is specifically a unique number that permits one to recognize the business to
essentially the government as well as other business. For this purpose, it will be necessary to
provide personal details, business information, associate details, reasons for applications,
business activity details, declaration regarding presentation of true information throughout
the entire application (Burns, 2016). Essentially, business name is particularly a name under
which business can operate. In a bid to ascertain whether a particular business name is
available for the purpose of registration, the Australian Securities & Investments Commission
presents an online database where the availability of the name can be checked (Gartner et al.,
2016).
Business Premises
Location and specific operations
Flinders Lane, Melbourne is the location that is selected for the new concept of Indian
Restaurant. The outlook for this selected location is exceptionally positive and can be
considered as the most progressive development area. In addition to this, several developers
are also infusing huge amounts for specifically commercial, residential as well as retail
development. However, Indiana restaurant can derive benefit from the huge investment and
grant received for restoring and at the same time renovating property (Mullins, 2017). In
addition to this, this market has necessarily been selected as well as examined for the
essential demographics along with retail traffic essential for satisfying the goals established
for acquiring profitability (Dahles & Susilowati, 2015). This area that is necessarily a busy
commercial location has essentially been selected upon a flourishing demographic model and
huge traffic count.

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Restaurant design
Single Level Design Notion: The requirement for total space is around 3000 square feet. In
essence, the Indiana Restaurant will feature a comfortable as well as open model design. In
addition to this, the area for central dining shall necessarily allocate roughly 75 seats, 20
lounge seats together with dining bar having around 12 seats. In all, this restaurant will
arrange for 107 patrons. In addition to this, the operator of the restaurant can also think about
integrating a dinner patio. Furthermore, provisions for zoning, parking together with issues
with accessibility shall be assessed as part of evaluation (Ehrenhard et al., 2017).
Optional/elective patio: Particularly, during the period of busy summer months, different
identified customers of the business that is the Indiana Restaurant can sit outside that is on
patio and the restaurant will offer a unique menu for summer, containing lighter fare, diverse
Indian Exotic food, drinks together with different non-alcoholic offers. The patio of the
Indiana Restaurant is expected to be fun and is said to have a casual atmosphere for the entire
summer crowd.
Organization Chart
The organization chart includes management staff include managers in different
sections (dining, kitchen and staffs). The managers essentially report to owners of the
business (Warren, 2015). There are staffs who are responsible for handling the segments in
the area of cook, waiter as well as cash.

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Figure 1: Figure Representing Organizational Chart
(Source: As Created by Author)
Management & Ownership
The proposed business intends to initiate as a limited liability corporation that is
owned by Writo and Jeff Watson. Writo Watson will necessarily operate as the general
manager as well as executive officer. Again, Jeff Watson operates as the managing director.
The management team of the current business has more than 15 years of experience in
specifically restaurant and hotel, management of business, marketing and finance areas. In
this case, the members of the LLC can consider operation of the business on particularly their
behalf. Nonetheless, the limited liability corporation that is under the state regulations that
provide all the members the authority to hand the overall business of the corporation
(Rahman et al., 2018). Essentially, this specific type of management structure has members
who have the right to engage in daily operations of the corporation.
Managing
Director
Managers
(Dining Area)
Staff (Service) Staff (Waiter)
Managers
(Kitchen)
Staff (Cook)
Manager
(Finance)
Staff
(Cashier)

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Key Personnel
The key personnel of the restaurant include:
The management team of the current business has more than 15 years of experience in
specifically restaurant and hotel, management of business, marketing and finance areas.
Writo Watson: He acts as the General Manager as well as executive officer
Jeff Watson: Jeff Watson operates as the managing director of the company
Shaun Waugh: Manager (Dining Area)
Peter Cross: Manager (Kitchen)
Katherine Dias: Manager (Finance)
Products/Services
Services: Indiana Restaurant will necessarily feature global dishes, an eclectic ambience and
setting of the restaurant and high class service. Again, food offered by the restaurant will
essentially be of the finest and highest quality that is prepared interesting flare. In addition to
this, satisfaction of customers can be considered as the driving force that can help in
attainment of success (Majid et al., 2016). The operator of the business can also intend to
change the menu in every 6 months and at the same time maintain certain “favourites” for
particularly the loyal patrons. Again, portions will be humbly sized, decorated with eye-
catching presentation. In addition to this, the staff members operating in the kitchen area will
necessarily have the best in specifically culinary education as well as work experience. The
creative talents will consequently compliment and praise one another (Cornil & Chandon,
2017).

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Products: The menu of the Indian Restaurant will be the products that will be offered to the
guests. The menu presented below can help in understanding then entire selection of the
menu:
Indiana Menu:
Chicken:
- Chicken Kabab
- Chicken Tengri Kebab
- Chicken Tikka Kabab
- Chicken Tandoori
Mutton:
- Mutton Kabab
- Mutton Bora Kabab
- Mutton Roast Kabab
- Mutton Tikka Kabab
Biriyani
- Mutton Biriyani
- Chicken Biriyani
- Biriyani Rice
- Egg Biriyani
- Vegetable Biriyani
Fish
- Fish Curry

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- Fish Korma
- Fried Chips and Fish
Continental Dishes:
- Herb Stuffed Chicken
- Grilled Chicken with Shallot
- Baked Mushroom and Capsicum
- Quick Salted Caramel Pie
- Grilled Chicken in Mustard Sauce
Veg Dishes:
 Puloa (Veg)
 Plain Rice
 Shukto
 Dal
 Vegetable Curry
Desserts
 Mishti Doi
 Firni
 Malai
 Sandesh

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Innovation
It can be said that the crowding out effect of increasing costs of both healthcare as
well as education has lessened the overall expenditure on food. The innovative trends that the
operators of the current business can take into consideration include:
-Taking into consideration the preferences of customers towards healthier food
alternatives: In this case, the consumers can prefer to have their food at home. However, if
the customers prefer to dine out, then they are generally more inclined and bent towards
consuming healthier and at the same time less processed products (food). Restaurant
operators can attempt to influence specific patterns of consumption by way of implementing
attractive pricing and techniques of marketing (Läikkö-Roto & Nevas, 2014).
-Proper modification of items of menu that are driven by various regulatory norms: The
proposed business of restaurant can concentrate on different narrower as well as more
specialised menus with an aim of enhancing overall quality levels, service as well as speed
(Goleman, 2017).
-Enhancement in different options of food service of the restaurant: nowadays it can be
observed that different restaurants offering identical products are necessarily clustered in the
similar location and this in turn leads to saturation (Chen & Barrows, 2015). In addition to
this, this leads to less number of exclusive consumers in the restaurant outlet (Han et al.,
2016).
-Technological progression: The proposed business of restaurant can adopt several
technologies for the purpose of ordering, making payments and carrying out loyalty
programs. This can help in delivering various convenient and at the same time innate
applications for different customers (Hartmann et al., 2014). There are diverse analysts who
can predict creative uses of products can locate different patrons in many restaurants. face

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recognition technology can be used and in addition to important data from Apple Pay in
addition to similar wallet solutions can make it easier for the purpose of personalizing
experience of customers.
-Innovation in area of maintenance of environment sustainability: Operators of the
business can concentrate on decreasing wastage of food for managing increasing costs and
going green. Increasing awareness regarding sustainability, particularly among millennial can
compel owners of restaurants to institute environment friendly and at the same time
sustainable practices (Grosul & Ivanova, 2017).
-Inclination and preference towards Indian cuisine: Enhancement in the inclination of the
customers towards worldwide or ethnic cuisines like Indian Cuisines can help in promoting
restaurants for diversification of business. As per reports, around 80% of consumers consume
at least Indian Cuisine every month.
-Concentration of Generation Z: These days are presently attempting to appeal to several
individuals and are competing for the purpose of acquiring attention and notice of social
media savvy generation. In addition to this, the operators also have the need to be aware of
generation Z since younger teens are starting to arrive at their own decisions. Furthermore,
demographic can also demand different high tech service, visuals, music for getting sensitive
experiences (Kannan, 2017). In addition to this, proposed business of restaurant will therefore
have the need to adapt as well as modify operational strategy for attracting the target
segment.
Insurance
Restaurant business can cover different risks such as the ones mentioned below:
- Public Liability: injuries suffered owing to falls and slips. Again, risks are also
greater with particularly different phases of restaurants

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- Liability of Product- unnecessary objects in different food
- Business along with general property: Damage suffered to property owing to
vandalism
- Compensation to workers: Burns, strains
- Interruption in business: Profit related to location particularly in the state when
operators might get compelled to close down
Risk Management
Risk of inadequate accessibility to capital
A specific business that is having inadequate capital might fail. The proposed
business of restaurant is necessarily cash intensive and has the requirement of adequate
liquidity for covering various expenses. Fundamentally, cash can be regarded as one of
biggest risks of this business. For this purpose, the operators of this restaurant can consider
mitigation of this specific risk by means of creation of the cash crunch contingency plan. In
addition to this, there is requirement for sufficient cash reserves in cases of emergency.
Risk of different high costs
The entire amount it takes to initiate a food service can be discouraging. This includes
leasehold enhancements, waste processes, insurance, payroll expenses and many others.
However, in case if the requisite costs of the business are not controlled, then the resources of
cash can be considered to be a very serious risks of carrying out the business of restaurant
(Lee et al., 2015). The increasing costs of labour have created several restaurants for the

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purpose of adopting a counter service model. This model can help in decreasing costs of
labour and that can assist businesses in staying in business for a longer period.
The owners of the restaurant can utilize discretion handling diverse suppliers and selecting a
specific location (Kim et al., 2015). The operators can become creative as well as open to
various altering things such as menu, attractive models of service or else hours of operation
for controlling costs.
Risks of lower sales figure
Several owners of restaurant are of the view that the idea is exclusive. However, a
reality of the business of restaurant is that despite doing everything in the right way, there can
be dismal sales. The operators of the restaurant can stress on undertaking market research,
suitable strategies of marketing such as hiring individuals for managing listings on Google
and promoting the business on various social media (Selvanathan et al., 2016).
Legal Consideration
There are certain laws that are applicable to the new business of restaurant, it is
important to be legally complaint, and aware of all rules as well as regulations. The business
owners have the need to register prior to commencement of any kind of business action. In
addition to registering name of the business, particularly various taxes can influence the
business. These include the following:
 -Australian Business Number -Goods and Services Tax -Tax File Number -Pay as you go

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In case of operation and functioning of the current business, there is need for licenses
for ensuring compliance with different legal obligations (Lee et al., 2016). Essentially, the
Australian Business License and Information Service necessarily can help in licenses, permits
as well as registrations that are required to run the business. In this case, food business
License is essential.
In addition to this, the proposed business can comply with the Privacy Act of the year
1988 available from the official website of Office of the Australian Information
Commissioner. The principles of this particular act can help in dealing as well as processing
of diverse personal information, utilizing personal information for purpose of direct
marketing and divulging personal information to people staying abroad. Furthermore, the
proposed also intends to comply with anti-bullying regulations stipulated under the Fair Work
Commission. This regulation can help in addressing the issues of bullying in the workplace
(Lee et al., 2016). Additionally, this proposed business also intends to adhere to the rules
stipulated under the Small Business Fair Dismissal Code. This can help in following the
regulations that are essentially outlined in this specific code before making any plans of
termination of employees.
Operations
The Indiana Restaurant will be situated in Flinders Lane, Melbourne. Essentially, this
restaurant serves exotic lunch, dinner along with after-hours dining specifically during the
week along with weekends. Indiana Restaurant will also operate specially during peak time
for service for acquiring the advantage of street traffic. In addition to this, this restaurant will
also offer after hour patronage from various entertainment facilities in the selected area.
Furthermore, service will also be made available during the specified hours mentioned below:
Lunch: Monday to Sunday (11.30 a.m to 3 p.m)

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Dinner: Monday to Sunday (5 p.m to 1 a.m)
Sustainability Plan
The operator of the Indiana restaurant intends to make their business sustainable and
develop the same in a way that can make it greener and more profitable. The four steps that
can be followed include the following:
- Enhancement of energy efficiency: In majority of restaurants, this is the most
important area that can help in lessening costs with particularly minimal investment.
The supplementary bonus is necessarily what the restaurant can acquire and
communicate to customers regarding the extent the company is sustainable after
decreasing the bills for energy. Simple enhancements such as training staff to handle
equipment effectively, decreasing heating along with cooling bills together with
investing for augmentation of energy efficient process of water heating can make a
huge discrepancy (Lee et al., 2016).
- Introduction of specific program: Yet another important factor behind a flourishing
sustainability plan is figuring out different ways of decreasing total waste. Essentially,
recycling and at the same time composting programs can be regarded to be the most
common ways of addressing the same. Unfortunately, unlike energy efficiency
enhancements, these waste reduction programs can be considered to be either
programs that can be cost neutral or else programs that can enhance operating
expenditures (Kim et al., 2015). However, this does not indicate that these programs
do not deliver benefits. The regional newspaper located in the neighbourhood can also
be considered to be a great way to get to know about the program.
- Alteration in the habits of buying: Particularly, the decisions for buying can help in
knowing about the way of running the business. In addition to this, arriving at
sustainable decisions can also help in making the process a lot greener (Kim et al.,

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2015). The operators of the restaurant will source the ingredients regionally and
sometimes develop their own. In addition to this, the operators of the business can
also think about using compostable disposable items and buying certified sustainable
seafood.
The Market:
Market Research:
The restaurant market in Australia is considered is as the large and diverse business.
The sales of restaurant industry is forecasted to reach $580.1 billion with an increase of 2.5
per cent over the 2016. The market research performed states that the sales of restaurant
industry is forecasted to surpass $650 billion during the year 2020 and equals 4 per cent gross
domestic product of Australia (Kotler, 2015). The overall impact on the economy from the
restaurant industry is anticipated to surpass $1.7 trillion in 2020. On an average basis in
Australia around 120 million people will form the part of the foodservice patrons. Sales in the
full service restaurant have reached $550 billion during the year 2016. Sales in the limited
service restaurant have increased to $174.8 million during 2010 whereas snack and non-
alcoholic beverage bar sales have increased to $24.7 billion.
The Australian industry comprises of around 480,000 restaurants having the
combination of around $500 billion. Majority of restaurant industry comprises of the Taco
Bell, Garden Restaurant, Oliver Garden, Red Lobster. On conducting the primary research, it
is noticed that the market of Australian food industry is highly fragmented by around 50 large
companies hold just 20 percent of market share (Armstrong et al., 2015). The restaurant
market of Australia comprises of the full-service restaurant and very selected or limited place
of eating that includes quick service restaurants such as cafeterias, buffets, snacks bars and
non-alcoholic beverage bars.

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The local area of Melbourne is growing from low to middle class area and counts
more than 3.8 million residents. There are around four hundred thousand businesses that are
close the location of Indiana Restaurant. The average income for individuals in this area
stands around $45000. The expansion in this area is largely because of the response to the
new business and opportunities for employment in the local regions of Melbourne Park
(Keller & Kotler, 2016). Similar Indian food services business that traditionally perform well
in the market have become a potential for the dining experience for the local customers. With
increasing growth in this area there are opportunities for serving the local residents.
Market Targets:
Over the last five years, the owners of Indiana Restaurant have been doing a part time
catering. The home style menus among the customers are very popular during the family
reunion. On a regular basis there has been a demand for opening a full time restaurant in
order to enable the customers to return regularly for enjoying dining experience (Goworek &
McGoldrick, 2015). The owners have selected the subject area for its restaurant mainly
because of the locations to the main business intersection of Flinder’s Lane and Cherry
Street. This would encourage the families that are tired of the day’s work to make a stop for a
home cooked meal, which the customers can enjoy without searching for any other food
dining location.
The target market of Indiana Restaurant would be focusing on Indian populations
range from low to middle group income class. The target market for Indiana Restaurant
would also include the local business that are specifically locate inside or outside of the
Melbourne park (Hollensen, 2015). Typically, according to the market survey conducted by
the owners, the target market would also include the Indian customers that prefer having taste
of Indian and continental food at least once in a day.

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Market survey reveals that customers usually prefer an infrequent substitute to an
costly and time consuming lunch or dinner. Additionally, the market research reveals that
companies usually prefer to order for their employees on a different occasion or during the
exclusive business events. Indiana Restaurant would strive to create an image from the
perspective of target market by offering excellent quality Indian and Continental food largely
for its Indian Customers (Chernev, 2018). The business would look to meet or go beyond its
customer needs, wants and anticipations. Furthermore, Indiana Restaurant would look to
build customer loyalty and word of mouth sales which is lacked by most of its competitors.
Environmental/Industry Analysis:
The Industry analysis is based on the standard industry code 5812 Eating and
Drinking establishment of places largely engaged in the retail sale of prepared foods for on
the premises or instant consumption. The restaurant industry in Australia is largely based on
offering food services to the customers that order food and are served when they are seated
and pay after eating (Kotabe & Helsen, 2014). The establishment might offer food service to
customers with the combination of selling alcoholic beverages and offering carry out services
with non-theatrical music. The Australian restaurant industry primarily comprises of around
480,000 restaurants having the combined yearly revenue of around $400 billion.
Demographic trends, consumer trends and personal income stimulates the demand.
The profitability of the industry can vary where as quick service restaurant generally remains
dependent on the effective operations and greater volume of sales. Full service restaurant
generally remains dependent on items of higher margin and efficient marketing (Bresler &
Lubbe, 2014). Large restaurants have the advantages in purchasing, financing and marketing
whereas smaller restaurants provide superior quality of food and services. The restaurant
industry in Australian is labour intensive.

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Wages in the restaurant industry forms the vital portion of the operating costs. The
prevalence of statutory minimum wages in most of the states raises the need for the players to
keep the costs as low as possible that ultimately increases the importance of suppliers. The
industry analysis suggest that restaurants compete with companies that offer meals or
prepared foods comprising of grocery stores, warehouse clubs, delis and convenience stores.
Furthermore, restaurants generally compete with home cooking facilities. Among the food
service restaurants, a large number of establishments place their focus on the Italian food or
sea food (Jaworski, 2017). Hamburger generally joins the majority of the quick service
restaurants along with the pizza stores and sandwiches. As evident the industry revenue is
approximately split among the food service restaurants and quick service restaurants. Major
industry participants include Taco Bell, Garden Restaurants, Oliver Garden and Red Lobster
are some of the major industry participants.
The annual sales revenue for food service restaurants averages $860,000 on a yearly
basis. Restaurant square foot and the number of seats or tables reflects the number of
customers it can serve directly creates an impact on sales. This is because the restaurant
industry is largely competitive, selection of site is considered to be critical (Foxall, 2014).
The companies that are setting up the restaurant might consider setting up the restaurant by
looking at the population density, household income, competition and visibility.
Customers:
As evident from the market survey the customers of Melbourne area are in great need
of Indian and continental food service restaurant. The section of Linder’s Lane is largely
referred as the fast food alley. The selection of fast food is largely vast and the area is
restricted on its family restaurant choices (Baker & Saren, 2016). According to the national
association of restaurant several consumer trends such as customers usually prefers locally

21ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
sourced meats and seafood. Customer prefer home grown produce along with sustainability
in culinary theme. North-Indian and continental dishes.
Sustainable culinary seafood for local customers are some of the customer preference.
There are several customers that prefer back to basic cuisine with flare of Indian flavour and
farm back ingredients to suit the customer taste and preference. The customer spending on
services is the indicator of rise in sales of 1.8% percent during the year 2016. The average
price for food influences the consumer spending for eating out have increased by 13.1 per
cent in 2016 (Armstrong et al., 2014). The tourism of Indian customers in Australia is the
indicator of increased restaurant revenues for food service and dining places.
S.W.O.T Analysis:
S.W.O.T analysis of Indiana Restaurant is conducted to better understand the strength,
weakness, opportunities and threat surrounding the business.
Strengths:
a. Indiana Restaurant has valuable
strength of inventory which would
assist the business in being
successful.
b. Another business strength of Indiana
Restaurant is location and excellent
quality of North Indian and
Continental dishes which is
presently not available in Linder’s
lane.
c. The state of art North-Indian and
Weakness:
a. There are cost factors that are
associated with keeping the state of
art equipment
b. The business is new to the town
c. There are challenges of start up in
new business
d. There is restricted operating capacity
at the time of peak periods.

22ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Continental food preparation
equipment
d. Clear vision of the owners in the
market needs. The owners
understand the customers’ needs and
are familiar with the customers’
requirements which would combine
the two together.
Opportunities:
a. Fast growing population in the local
area of Linder’s Lane
b. No other specialized Indian food
service restaurant inside the five-
mile radius from the selected
location of restaurant.
c. A large number of middle to low
middle class population and more
than four hundred business in the
area.
d. Customer behaviour changes
because of the economic pressure
economic downturn with increased
preference of dining under home
based environment.
Threat:
a. Variations in the business
environment might lower the sales
b. Higher instances of current taxes and
probable increase in future tax as
well.
c. Increasing operating costs
d. Tighter terms of credit, higher rate
of interest and higher rate of
inflation than anticipated are some
of the business threats.

23ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Competitors:
The business faces some of the competitions from its locally located competitors.
Indiana Restaurant has identified certain competitors that act as the direct competitors for the
business that are as follows;
a. Hardy’s Restaurant: Hardy’s Restaurant is one of the full service restaurant which is
established in 2000. The 200 seater restaurant run as the sole proprietor that has
around 20 twenty employees and derives annual revenue of around $500,000 in sales
revenue on a yearly basis (Porral & Stanton, 2017). Prices are generally higher in this
restaurant and ranges from around $10 to $30 per entrée.
b. Chili’s: This is another competitor that is identified by the business. Chili’s is one of
the chain of restaurant that offers standard fare. The choices of food are numerous and
prices ranges from $8 to $22.
c. Applebee’s: It is a chain of restaurant that offers standard. The quality of food is
considered to be average with each customer entrée fee ranges from $6.99 to $20.
d. Barbeque Den: This is regarded as the direct competition for Indiana Restaurant.
Barbeque is the sole proprietorship that offers primarily barbeque item. Even though
food offering does not compete directly with the subject of the Indiana Restaurant
targets. The entrée fees for the customers or patrons ranges from $12 to $22.
e. Oliver Garden: Oliver garden is located in the interstate and the restaurant is not
located in the target market area of Indiana Restaurant. However, because of the menu
offering of mixed continental flavours and comfort food makes the restaurant an
attractive similar markets (Wentzel, 2017). Additionally, Oliver garden attracts tourist
comfort with entrees ranging from $8 to $22.

24ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Advertising & Sales:
Advertising and sales promotion:
Location: The Indiana Restaurant will be located in the Linder’s Lane at the busy street of
Melbourne. There would be easy of access to interstate and would be located towards the
going home side or the western corner of the intersection.
Word of Mouth: The owners have the database of current existing customers and would be
relaying on this method of attracting and growing the new business.
Website: Indiana Restaurant would be promoting its business through website such as
Facebook page and Twitter site (Kapoor, 2014). The menu and the hours of work will be
easily accessed.
Direct mailing: Bulk mailing will be performed directly to the probable customers or by
including the postcard in the value pack form mailing.
Newspaper Advertisement: Indiana restaurant will be using the using newspaper
advertisement to promote the business among the probable customers.
Event marketing: The owners are planning to join its local customers of commerce and
would be using their network service for its grand opening.
Sales and marketing objectives
The sales and market objectives of Indiana Restaurant will be placing emphasis on the
customer service. The sales and marketing objectives would be aimed at providing home
style meal combined with superior customer service.
Unique Selling Position
The unique selling proposition of Indiana Restaurant is to offer home style meals at
the reasonable price in the comfortable home like setting (Drucker, 2014). The average check

25ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
price is anticipated to range between $8 to $18 that appears in accordance with the industry
standard. The current expertise in North Indian and Continental dishes would help in setting
brand. Furthermore, the owners would be keeping their menu reasonably priced in order to
take the advantage of seasonal produce.

26ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
The Future:
Vision Statement:
The vision of Indiana Restaurant is to be become the first choice dining place for Indian
foods in the local bay area and be recognized as the respected company. The vision of the
Indiana Restaurant is to be measured by its customers, its employees and the community the
restaurant is representing (Parker, 2018). The Indiana restaurant owners considers its values
critical to its success. They values forms the strong foundations of Indian foods by defining
the culture and set the company different from its competitors. The vision statement of the
Indiana Restaurant comprises of the core business values such as;
a. Performance Excellence: The owners aim to act in a responsible manner by
continuously seeking to meet or exceed the customers’ expectations.
b. Promoting Teamwork: The business owners of Indiana Restaurants aim to act as the
team, by remaining committed to each other that is bounded by trust and loyalty.
c. Business Integrity: The vision of Indiana Restaurant owners is to treat each other and
its stakeholders with dignity and respect. The core business values of Indiana
Restaurant comprise of the honesty, ethical behaviour and integrity forms the essential
characteristics of its business conduct (Burns, 2016).
Mission Statement:
The mission of Indiana Restaurant is to provide its customers with the unique and
soothing dining experience that is identical to dining at home. The owners of Indiana
Restaurant would strive to attain this goal by offering menu items incorporating quality of the
ingredients at the reasonable price (Storey, 2016). The mission of Indiana Restaurant is to
remain aware regarding the wellbeing of its customers and staff by treating each and every
customer with dignity and respect similar to the experience of dining at home. Indiana

27ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Restaurant mission is to provide its residents of local bay area with the best quality Indian
and continental food in the area. The company is committed to offering the quality service
and value of money food which is anticipated by the customers. Indiana Restaurant will be
implementing the strategy, staffing and systems to offer each customers with the seamless
three-part customer experience, service product and service environment to meet or exceed
the customer’s anticipations.
Business Objectives:
The objective of Indiana Restaurant owners is to attract a minimum of around 100
customers each day for dining purpose during the first year of business. The goal of the
business is to provide its customer with excellent pizza service at the reasonable price and
offer customer with the outstanding customer experience measured in terms of 5 per cent rise
in sales every year (Schaper et al. 2014). Another business objective of Indiana Restaurant is
to generate positive amount of cash flow from the operations with a minimum of 10 per cent
net profit per sales.
Action Plan:
The owners of Indiana Restaurant will be tailoring their road map to establish their
particular business. A typical action plan for Indiana Restaurant are as follows;

28ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Figure 2: Figure Illustrating Action Plan
(Source: As Created by Author)
The Finance:
Key Objective and Financial Review:
As per the conservative estimation, Indiana Restaurant is anticipated to maintain the
healthy financial position over the upcoming three years. The business would be initially
financed from a bank loan of $80,000 over the period of five years with total capital
investment of approximately $100,000. The source of paying the loan will be from the cash
flow generated from the operations (McKeever, 2016). The owners of the business would be
financing its growth from the cash flow. Following the initial period of five years the owners
of Indiana Restaurant will be able to finance its business expansion.
Identifying desired outcomes
Recognizing preferred solutions
Setting goals and steps of making outcome a reality
Assigning goals to each person
Assigning the desired start date
Assgning a desired end date
Scheduling milestones and status update
Assigning money and time for each objective

29ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Projected Profit and Loss:
The company anticipates to remain profitable in the first year of operations with the
profits increasing over the span of four years as the owners of Indiana Restaurant would be
establishing and increasing its customer base.
Assumptions:
 The price of meal is anticipated to range around $8 to $18
 The average lunch price is anticipated to range around $10
 The average dinner price is anticipated to be around $14
 The restaurant will be located at the Linder’s Lane and would be around 3000 square
feet.
 The restaurant will be looking to employ around 18 employees
 It is anticipated that the revenues will be increasing at a rate of 10% yearly.
Balance Sheet Forecast:
BALANCE SHEET FORECAST [Year 1]
Current assets
Cash $73,38,307
Petty cash
Inventory
Pre-paid expenses
Fixed assets
Leasehold
Property & land
Renovations/improvements
Furniture & fit out
Vehicles $75,000
Equipment/tools $900
Computer equipment $11,000
Accumulated Depreciation -$1,040
Total assets $74,24,168
Current/short-term liabilities

30ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Credit cards payable
Accounts payable $45,000
Interest payable $7,200
Accrued wages
Income tax
More…
Long-term liabilities
Loans $80,000
More…
Total liabilities $1,32,200
NET ASSETS $72,91,968
Profit and Loss Forecast:
Profit and Loss Statement Percentage
Sales Food $122,97,997 76%
Beverage $39,66,455 24%
Total Sales $162,64,452 100%
Cost of Sales Food $40,58,339 25%
Beverage $4,49,440 3%
Total Cost of Sales $45,07,779 28%
Gross Profit Food $82,39,658 51%
Beverage $35,17,015 22%
$0
$0
$0
Total Gross Profit $117,56,673 72%
Other Costs Wages/Salary $5,44,841 3%
Depreciation $1,040 0%
Electricity $7,31,900 5%
Water $5,20,462 3%
Gas $6,09,917 4%
Rent $1,68,000 1%
Telephone $2,06,559 1%

31ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Insurance $90,000 1%
Internet $2,35,835 1%
Advisor $72,000 0%
Marketing $3,98,550 2%
Office expenses $2,47,220 2%
Other expenses $1,23,610 1%
Licence $15,000 0.1%
Rates $4,47,272 2.8%
Bank Interest $7,200 0%
Total Other Costs $44,19,405 27%
Net Profit $73,37,268 45%
Expected Cash Flow:
The conservative projections reflect that the business would be able to generate
positive cash flow with sufficient cash reserves. In addition to generating inflow of cash and
outflow of cash, the business will be focussing on creating a sufficient amount of cash reserve
to meet its contingencies. For detailed cash flow, refer to appendix.
Breakeven:
For the purpose of breakeven analysis, the business assumes that running costs would
be approximately around $44, 19,405 including of payroll, utilities rent and other fixed costs.
The business anticipates to make its breakeven at 61,13,906 with the average anticipated
sales is forecasted to be around $162,64,452.
Break Even
( Expenses/((1-(Cost of Goods Sold/ Net Income))
$61,13,906.82
( Expenses/((1-(Cost of Goods Sold/ Net Income))

32ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
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36ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Appendix:
Cash Flow Statement
January February March April May June July August September October November Dece
Sales Food
$10,44,48
7 $9,43,408
$10,44,48
7
$10,10,79
4
$10,44,48
7
$10,10,79
4
$10,44,48
7
$10,44,48
7 $10,10,794 $10,44,487 $10,10,794 $10,4
Beverage $3,36,877 $3,04,276 $3,36,877 $3,26,010 $3,36,877 $3,26,010 $3,36,877 $3,36,877 $3,26,010 $3,36,877 $3,26,010 $3,3
Total Sales
$13,81,36
4
$12,47,68
4
$13,81,36
4
$13,36,80
4
$13,81,36
4
$13,36,80
4
$13,81,36
4
$13,81,36
4 $13,36,804 $13,81,364 $13,36,804 $13,8
Cost of Sales Food $3,44,681 $3,11,325 $3,44,681 $3,33,562 $3,44,681 $3,33,562 $3,44,681 $3,44,681 $3,33,562 $3,44,681 $3,33,562 $3,4
Beverage $38,172 $34,478 $38,172 $36,940 $38,172 $36,940 $38,172 $38,172 $36,940 $38,172 $36,940 $3
Total Cost of Sales $3,82,852 $3,45,802 $3,82,852 $3,70,502 $3,82,852 $3,70,502 $3,82,852 $3,82,852 $3,70,502 $3,82,852 $3,70,502 $3,8
Gross Profit Food $6,99,807 $6,32,083 $6,99,807 $6,77,232 $6,99,807 $6,77,232 $6,99,807 $6,99,807 $6,77,232 $6,99,807 $6,77,232 $6,9
Beverage $2,98,705 $2,69,798 $2,98,705 $2,89,070 $2,98,705 $2,89,070 $2,98,705 $2,98,705 $2,89,070 $2,98,705 $2,89,070 $2,9
Total Gross Profit $9,98,512 $9,01,882 $9,98,512 $9,66,302 $9,98,512 $9,66,302 $9,98,512 $9,98,512 $9,66,302 $9,98,512 $9,66,302 $9,9
Other Costs Wages/Salary $46,274 $41,796 $46,274 $44,781 $46,274 $44,781 $46,274 $46,274 $44,781 $46,274 $44,781 $4
Depreciation
Electricity $1,80,469 $1,82,474 $1,84,479 $1,8
Water $44,204 $39,926 $44,204 $42,778 $44,204 $42,778 $44,204 $44,204 $42,778 $44,204 $42,778 $4
Gas $51,801 $46,788 $51,801 $50,130 $51,801 $50,130 $51,801 $51,801 $50,130 $51,801 $50,130 $5
Rent $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 $1
Telephone $17,543 $15,846 $17,543 $16,977 $17,543 $16,977 $17,543 $17,543 $16,977 $17,543 $16,977 $1
Insurance $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $7,500 $
Internet $20,030 $18,091 $20,030 $19,384 $20,030 $19,384 $20,030 $20,030 $19,384 $20,030 $19,384 $2
Advisor $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $
Marketing $54,200 $19,800 $19,600 $19,400 $23,400 $22,900 $22,750 $22,750 $34,400 $34,750 $34,800 $8
Office expences $20,997 $18,965 $20,997 $20,319 $20,997 $20,319 $20,997 $20,997 $20,319 $20,997 $20,319 $2
Other expences $10,498 $9,482 $10,498 $10,160 $10,498 $10,160 $10,498 $10,498 $10,160 $10,498 $10,160 $1
Licence $15,000
Rates $37,988 $34,311 $37,988 $36,762 $37,988 $36,762 $37,988 $37,988 $36,762 $37,988 $36,762 $3
Bank Interest $600 $600 $600 $600 $600 $600 $600 $600 $600 $600 $600
Total Other Costs $3,46,635 $2,73,106 $4,77,503 $2,88,792 $3,00,835 $4,74,765 $3,00,185 $3,00,185 $4,88,271 $3,12,185 $3,04,192 $5,5
Net Profit $6,51,877 $6,28,776 $5,21,009 $6,77,510 $6,97,677 $4,91,536 $6,98,327 $6,98,327 $4,78,031 $6,86,327 $6,62,110 $4,4

37ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
Bank Account Opening Balance $6,51,877
$12,80,65
3
$18,01,66
2
$24,79,17
2
$31,76,85
0
$36,68,38
6
$43,66,71
3 $50,65,040 $55,43,072 $62,29,399 $68,9
Current Month $6,51,877 $6,28,776 $5,21,009 $6,77,510 $6,97,677 $4,91,536 $6,98,327 $6,98,327 $4,78,031 $6,86,327 $6,62,110 $4,4
Closing Balance $6,51,877
$12,80,65
3
$18,01,66
2
$24,79,17
2
$31,76,85
0
$36,68,38
6
$43,66,71
3
$50,65,04
0 $55,43,072 $62,29,399 $68,91,509 $73,3
Projected Cash Flow:
Sales Forecasting
Restaurant
Monthly Revenue
Food Beverage
Weekly Sales Forecast Mix Jan $10,44,487 $3,36,877
Sales Monday Tuesday Wednesday Thursday Friday Saturday Sunday Feb $9,43,408 $3,04,276
Mar $10,44,487 $3,36,877
Average Spend Food $150.00 $110.00 $165.00 $120.00 $175.00 $190.00 $182.00 Apl $10,10,794 $3,26,010
Bevrages $45.00 $35.00 $50.00 $30.00 $55.00 $70.00 $64.00 May $10,44,487 $3,36,877
June $10,10,794 $3,26,010
No.of Customers 225 172 234 165 210 242 231 July $10,44,487 $3,36,877
Aug $10,44,487 $3,36,877
Revenue Food $33,750.00 $18,920.00 $38,610.00 $19,800.00 $36,750.00 $45,980.00 $42,042.00 Sep $10,10,794 $3,26,010
$10,125.00 $6,020.00 $11,700.00 $4,950.00 $11,550.00 $16,940.00 $14,784.00 Oct $10,44,487 $3,36,877
Nov $10,10,794 $3,26,010
Total weekly Revenue Food $2,35,852 Dec $10,44,487 $3,36,877
Bevrages $76,069
Average revenue perday Food $33,693 Beverage $10,867 Total $122,97,997 $39,66,455
Monthly Cost
Food Beverage
Weekly Cost Forecast Mix Jan $3,44,681 $38,172
Cost of goods Monday Tuesday Wednesday Thursday Friday Saturday Sunday Feb $3,11,325 $34,478
Average Food $49.50 $36.30 $54.45 $39.60 $57.75 $62.70 $60.06 Mar $3,44,681 $38,172
Beverage $9.00 $3.50 $5.00 $3.00 $5.50 $7.00 $6.40 Apl $3,33,562 $36,940
May $3,44,681 $38,172
No.of Customers 225 172 234 165 210 242 231 June $3,33,562 $36,940
July $3,44,681 $38,172
cost of goods Food $11,138 $6,244 $12,741 $6,534 $12,128 $15,173 $13,874 Aug $3,44,681 $38,172
Beverage $2,025 $602 $1,170 $495 $1,155 $1,694 $1,478 Sep $3,33,562 $36,940
Oct $3,44,681 $38,172
Total weekly cost of
goods Food $77,831 Nov $3,33,562 $36,940
Beverage $8,619 Dec $3,44,681 $38,172
Average Cost per day Food $11,119 Beverage $1,231
Total $40,58,339 $4,49,440
Sales Forecasting:

38ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
DEPRECIATION SCHEDULE - 2016/2017
Asset # Description Acquisition
Date Start Date End Date # days owned Useful Life Depn Method Original
Cost % Opening Written
Down Value
Depreciation
Amount
C
W
D
V
OFFICE
EQUIPMENT
P312 Canon Photocopier 30-06-2016 01-07-2016 30-06-2017 365 5 Diminishing
Value 8,000 200% 8,000 1600
C001 Elite Computer 01-06-2016 01-07-2016 30-06-2017 365 5 Diminishing
Value 3,000 200% 3,000 600
Total 11,000 2200
MOTOR
VEHICLES
M010 Toyota Ute 30-06-2016 01-07-2016 30-06-2017 365 8 Straight Line 35,000 100% 35,000 4375
M011 Toyota Kluger 01-06-2016 01-07-2016 30-06-2017 365 8 Straight Line 40,000 100% 40,000 5000
Total 75,000 9375
LOW-VALUE
POOL
C002 Brother Laser
Printer 01-06-2016 01-07-2016 30-06-2011 365 Diminishing
Value 900 37.50% 900 900
Total 900 900 900
Depreciation Schedule:
Roaster:
Weekly Roster and Costing
No Name Mon Tue Wed Thu Fri Sat Sun Total Hours
1 Bittu 6 5 3 5 7 7 7 40
2 Datta 7 6 5 3 5 7 7 40
3 Ramesh 7 7 6 5 3 5 7 40
4 John 7 7 7 6 5 3 5 40
5 Feroz 5 7 7 7 6 5 3 40
6 Salman 3 5 7 7 7 6 5 40
7 Rajiv 6 6 6 6 6 5 5 40
8 Keshab 5 5 6 6 6 6 6 40
9 Eric 6 6 5 5 6 6 6 40

39ADVANCE DIPLOMA IN HOSPITALITY AND MANAGEMENT
No Name
Total
Hours
Rate of
Pay
Weekly
Wage Super
Annual
Leave
Sick
Leave Total WeeklyCost Month Monthly Wage Cost
1 Bittu 40 $18 $720 $65 $58 $32 $875 January $46,274
2 Datta 40 $18 $720 $65 $58 $32 $875 February $41,796
3 Ramesh 40 $18 $720 $65 $58 $32 $875 March $46,274
4 John 40 $18 $720 $65 $58 $32 $875 April $44,781
5 Feroz 40 $18 $720 $65 $58 $32 $875 May $46,274
6 Salman 40 $25 $1,000 $90 $80 $45 $1,215 June $44,781
7 Rajiv 40 $30 $1,200 $108 $96 $54 $1,458 July $46,274
8 Keshab 40 $35 $1,400 $126 $112 $63 $1,701 August $46,274
9 Eric 40 $35 $1,400 $126 $112 $63 $1,701 September $44,781
0 0 $0 $0 $0 $0 $0 October $46,274
0 0 $0 $0 $0 $0 $0 November $44,781
0 0 $0 $0 $0 $0 $0 December $46,274
Total Weekly Wage $10,449
Daily Wage Cost $1,493
Total Annual
Wage $5,44,841
Marketing Promotion and Selling Cost:
Marketing and Promotion Strategy & Costing
Sno Marketing Strategy Month Total Cost
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 Promotional Leaflets $1,200 $1,800 $1,600 $1,400 $1,900 $1,400 $1,250 $1,250 $1,400 $1,750 $1,800 $1,800 $18,550
2 Outdoor Hoardings $10,000 $10,000 $10,000 $10,000 $15,000 $15,000 $15,000 $15,000 $22,500 $22,500 $22,500 $22,500 $1,90,000
3 Events $35,000 $55,000 $90,000
4 Newspaper Ad $8,000 $8,000 $8,000 $8,000 $6,500 $6,500 $6,500 $6,500 $10,500 $10,500 $10,500 $10,500 $1,00,000
10
Total Marketing Cost $3,98,550
Monthly Marketing
Cost $33,213