Developing Business Model Canvas for Organic Food Restaurant MBA531

This project, submitted by a student at Christ (Deemed to be University), Bengaluru, in December 2021, focuses on the business ideation and development of a business model canvas for an organic food restaurant. The assignment begins with an industry analysis, including a detailed PESTLE analysis (Political, Economic, Social, Technological, Environmental, and Legal factors) to understand the external environment impacting the organic food sector. It then applies Porter's Five Forces model to assess the competitive landscape, evaluating the threat of new entrants, the threat of substitution, and the power of buyers. The analysis considers the unique aspects of the organic food industry, such as government regulations, economic factors, changing consumer preferences, technological advancements, environmental concerns, and legal compliance. The project aims to provide a comprehensive understanding of the organic food market and the strategic considerations necessary for a successful restaurant venture.

ENTREPRENEURSHIP
MBA531
CIA – 2
Business Ideation and Developing Business Model Canvas
on
ORGANIC FOOD RESTAURANT
SUBMITTED BY
PRINCE KUMAR SONI- 2028002
MBA F7
SUBMITTED TO
PROF. ELANGOVAN N
SCHOOL OF BUSINESS AND MANAGEMENT
CHRIST (DEEMED TO BE UNIVERSITY), Bengaluru
December 2021

Industry analysis of Organic Food Industry
PESTLE analysis:
This is the organic food industry's rigorous PEST or PESTLE study, which covers the
industry's political, economic, technical, environmental, and legal elements. The elements
discussed in this article might be beneficial or harmful to the organized food sector;
nevertheless, identifying those characteristics ahead of time allows businesses in this industry
to design strategies to capitalize on opportunities and remove or mitigate dangers.
In the recent past, there is growing concern about the quality of food and there are debates
over the food products and their quality. There was a trend of organic food in the late 80s but
organic food has become part of daily life and people like to eat it at their usual eating time.
Now there are various food brands, which have introduced this new trend of food in the
market and made it popular among people especially those who are in hurry for their classes
and work.
Political Factors
The food sector is under a lot of political pressure since government stability boosts
economic activity in the country, and the government creates many rules to regulate corporate
operations. Because they want to make their population healthy and develop regulations for
the agriculture industry, the government must raise public knowledge about this shifting
trend. If the government cares about the country's health, it would encourage the agriculture
sector to develop healthy food items for its citizens and design legislation that is relatively
simple and convenient to expand production. Government regulations have a significant
impact on the organic food sector, and their business trends can be influenced. If this is a
positive trend, the government should encourage it and pass legislation to make their jobs
easier.
The organic food sector, like all other businesses, is subject to laws that allow it to expand its
operations through free trade agreements. It also faces poor labor standards, particularly in
developing nations, and the government is under a lot of pressure to adopt regulations for
them and to attempt to put them in place as effectively as possible.
Economical factors
Economic factors, situations, and incidents can have an impact on the growth of any industry,
including the retail food industry, for a variety of reasons such as disposable income, interest

rates, inflation, consumer spending, unemployment, taxation, monetary issues, and the recent
economic recession in various countries. The organic food sector sells its goods through a
variety of channels, including mail orders, supermarkets, specialty stores, and direct sales.
Various economic aspects might assist a company build its business and play a key part in
raising consumer requests.
There is a steady movement in the economics of countries, indicating that if they have
economic stability, they may boost product sales and grow their businesses quickly.
Governments must raise labor costs and establish standards for the improvement of their
working classes, which firms must follow. When the cost of labor rises, the cost of supply
and the selling price of the products rise as well. These businesses must construct their
PESTEL study, which will aid them in comprehending the variables that will help them grow
their firm.
Social Factors
The social sector influences people's eating habits and food trends in their communities. It
varies from nation to country as well. Consumers' attitudes on organic food are multifaceted,
and they attach it to their food consciousness, identity, ethics, and ecology. People consider
the meal to be healthier and more beneficial to their health. Despite certain social and
behavioral issues, the use of organic food is growing increasingly popular among the youth of
many nations.
People are more concerned about living a healthy lifestyle, and they are looking for decent
food to provide health and satisfy their nutritional needs. There is rising ethnic variety, and
organic food businesses must take care of it. Food businesses must offer a wide product mix
to appeal to the cultural variety of their customers, as well as reach out to the middle class to
improve sales and gain popularity among a large number of people.
Technological Factors
Technology is employed to get a competitive advantage over rival brands. From the creation
of food goods through packaging and delivery to customers, they must deal with a variety of
technological difficulties. The majority of businesses have begun to accept goods orders
online and deliver them to their customers' homes. They deliver their catalog to their
customers' homes and provide contact information through email, resulting in increased sales
of the brand's items.

To increase the selling of its products, this food company has implemented automated
technology. They must comply with genetically modified organisms (GMOs), which pose a
danger to the supply of items on the market, but they must employ some techniques to lessen
reliance on GMO-containing products.
Environmental Factors
When organic food is created, it is free of chemical fertilizers, synthetic pesticides,
medicines, sewage sludge, genetically modified organisms, and synthetic preservatives.
Organic food also raises public concerns about food safety, pollution, and human and animal
health. Organic food is becoming more popular in industrialized nations as a result of
numerous government policies and laws in this area.
Farmers' production capacity is being impacted by global warming, but companies are
demonstrating their ability to manage food disposal and sustainability. It demonstrates the
importance of the food market in addressing the food supply chain's difficulties.
Legal Factors
To conduct business, the brand must adhere to legal standards. They must pay close attention
to corporate law, investment rules, and environmental legislation to comply with them. They
must also review the essential rules for the production, processing, and marketing of
vegetable and animal products, which are shared with the brands to ensure compliance.
Organic food enterprises should concentrate on environmental protection, antitrust, and labor
legislation to secure the safety of the company and its employees. Labor regulations in
underdeveloped nations are weak and do not assist in meeting client needs. If they adhere to
these principles, the brand's standard and image will improve.
THE 5 FORCE MODEL BY PORTER
A. The risk of New Entrants
The first force, the threat of new entrants, investigates how simple or difficult it is for rivals
to enter the marketplace in the business under consideration. The simpler it is for a rival to
enter the market, the higher the chance that a company's market share would be eroded. Not
only do existing competitors offer a danger to enterprises in an industry; the prospect of new
firms entering the market also has an impact on competitiveness. According to research on

the viewpoint of organic food in underdeveloped nations, new entrants might be a hurdle.
Existing enterprises may extend their operations, creating a possible barrier to new entrants.
The market's entrance barriers might shift based on government rules and licenses. Existing
firms that may adapt their business approach, as well as new ones, might be potential
entrants. The Porter's Five Forces Model was used to analyze the competitive environment of
Thailand's sweet corn business, and it indicated that current firms face intense rivalry. The
competence of new entrants is determined by the amount of difficulty encountered by
incumbent producers. Similarly, Porter's five forces model was used in the booming
aquaculture business in Kenya. The business was expanding at a rapid pace as a result of the
Government of Kenya's (GoK) Economic Stimulus Package (ESP) initiative, which promoted
aquaculture with many subsidies, resulting in a rush into input supplies. According to the
report, there is a significant risk of new entrants, but there is potential for established
agricultural retailers to expand into the provision of aquaculture goods. However, owing to
diminishing amounts from wild catch fisheries and quality difficulties with farmed fish,
procurement prices are high, scaring off many prospective new entrants.
B.Threatening of Substitution
The threat of replacements, the second factor, is particularly dangerous when customers can
quickly discover alternative items with lower costs or higher quality, and when buyers can
simply transfer from one product or service to another at a low cost. This force investigates
how simple it is for customers to move from one company's product or service to another. A
near replacement product limits a firm's capacity to increase prices in the industry. The
rivalry created by a Threat of Substitutes originates from items that are not in the industry.
Substitutes are items that are similar to those previously produced in the industry. Substitutes
may be given by the company and eaten by consumers for a variety of reasons, including
lower pricing or the non-availability of the original items. Substitutes' objective is to boost
the firm's competitiveness in markets where it cannot compete with the same product.
Locally produced organic food is appealing to businesses as long as it makes its way to the
market. The rules governing organic food and cuisine are very important. Substitute product
pressure includes substantial amounts of self-production and consumption by families at
home. The most common substitution for organic food would be low-cost normal
supermarket goods or non-organic products. The issue of substitutes in Kenya's aquaculture
stems from inputs used for capture fisheries and traditional agriculture that may also be
employed in aquaculture. The danger to the input supply sector is substantial since the

business has historically been linked to the agriculture and fishing industries. As a result,
several fishing and agricultural supply companies serve as replacement providers. Capture
fisheries are the primary replacement for fish farming. Other protein sources, such as chicken
and beef, might potentially be used in place of fish. For fish aquaculture, the danger of
alternative goods is great. However, when the availability of wild capture decreases, so does
the danger. The decreasing danger of alternatives for fish farming may tempt new participants
to enter the field, particularly if they own or have access to family land for pond
development. Due to the limited government-licensed hatcheries and the respondents'
declaration of the poor quality of wild-caught fingerlings, there are opportunities to expand
into fingerling production to serve other farms. Fish stores, butcheries, and supermarkets are
potential alternatives for fish market trade, however, the danger to fish marketing is modest.
There are generally low obstacles to enter and leave due to the presence of other formal fish
retail choices and consumers’ preferences. Consumers often buy fish from the open market,
which enables orders to be placed based on individual client preferences. Natural water body
fingerlings and fingerlings from government and private fish hatcheries are replacement
items for the fish farming/input supply industry. However, since there are only a few licensed
fish hatcheries, fish farmers that execute their breeding and hatchery operations (fish farming/
input supply) confront limited replacements.
C. Power of the Buyer
The third factor, buyer power, relates to consumers' negotiating power to affect a producer's
or supplier's profitability. This is determined by the following factors: the number of
customers in the market; the significance of each buyer to the organization; and the cost to
the buyer of moving from one supplier to another. Buyers have strong or high bargaining
power when they: buy in large quantities or control many access points to the final customer,
there are only a few buyers, switching costs to other suppliers are low, there are many
substitutes, and buyers are price sensitive. Buyers also have significant bargaining power
when they can produce the same product or resources themselves rather than buying them
from suppliers. Furthermore, if purchasers buy in huge quantities and are sensitive to
decreased prices, their bargaining power is considerable. This explicitly addresses the
potential of consumers to push down prices. It is influenced by the number of buyers or
customers a firm has, the importance of each client, and how much it would cost a customer
to migrate from one company to another. This component of the Five Forces analysis
paradigm is concerned with the impact of purchasers on firms. A buyer's negotiating power

moves in the opposite direction as that of providers. Because there are fewer purchasers, the
farmer is typically a price taker, and so must accept prices that are not necessarily
proportional with the farmer's investment (both monetary and physical). The effect that
consumers have on a producing business is referred to as buyer power. This examines the
consumer's ability to influence price and quality. Consumers have clout when there are few of
them but numerous sellers, and when switching from one business's goods or services to
another is simple. When customers buy tiny quantities of items and the seller's product is
extremely distinct from any of its rivals, their purchasing power is minimal. According to the
findings of a chicken meat research, buyer power is expanding for chicken meat, the product
is not distinctive and can be acquired from other providers, whole chicken, and frozen
chicken are homogeneous goods, and customers make their selection mostly on price.
Customers who frequent venues where they can acquire particular organic and conventional
foods were included in organic food research as having bargaining power. Identified is that in
the restaurant, there is a bigger selection.
D. Supplier Energy
The fourth factor, supplier power, measures how simple it is for suppliers to raise prices. This
is determined by the following factors: the number of providers of each vital input; the
uniqueness of their product or service; the supplier's relative size and strength; and the cost of
moving from one supplier to another. Suppliers with strong negotiating power might offer
higher-priced or lower-quality raw materials to their consumers. This has a direct impact on
the earnings of the purchasing corporations since they must pay more for supplies. When
there are few suppliers but many buyers, suppliers have strong bargaining power, suppliers
are large and threaten to forward integrate, few substitute raw materials exist, suppliers hold
scarce resources, and the cost of switching raw materials is especially high, suppliers have
strong bargaining power. This force is concerned with how easily providers may raise the
price of products and services. This component of the Five Forces research methodology
assesses the extent to which suppliers force their demands on businesses and industries.
Supplier negotiating strength is usually directly proportionate to the number of participants in
the sector (though the correlation may not be the same). The bargaining power of suppliers
demonstrates the industry's appeal. If there are dominant suppliers in the business, the profit
potential will be minimal. In the instance of Thailand's sweet corn sector, determinants of
supplier power and power of bargaining among sweet corn providers were supplier
concentration. With few suppliers and many buyers, suppliers have power over buyers in

terms of price, quality, and other buying/selling terms; availability of substitute inputs, where
there are some restrictions in substitute products due to the limited variety of sweet corn in
Thailand, and the availability of substitute inputs contributes to the high level of competitive
force and effect. Because excellent quality inputs are supplied worldwide and prices are
established on the global market, suppliers in Kenya's aquaculture have strong negotiating
power for input supply and fish farming/input supply. As a result, there is no room for
bargaining. However, suppliers' negotiating power is significant in fish farming since input
suppliers and fish farmer/input suppliers sell raw materials to fish farmers, and these are
established sectors with some influence over the rates they charge the fish farming sector.
Traders of both wild-caught and farmed fish are common in the fish selling industry.
However, farmed fish account for a minor proportion of fish items on the market; the vast
majority are wild-caught fish. Because farmed fish volumes are restricted in marketplaces,
big-scale wholesalers and middlemen that carry the fish from lakes and farms are the primary
input providers for fish marketing. Due to the lack of formal contracts in the fish marketing
industry, suppliers seem to be in a superior bargaining position with their clients. The high
procurement costs incurred by fish suppliers are passed on to fish marketers, negating some
of the benefits of low entry and exit barriers.
E. Rivalry
The fifth factor, competitive rivalry, illustrates how the previous four forces interact and
determine the structure of competitiveness within an industry. When the influence of these
factors is combined, the amount of competitiveness, profit potential, and overall
attractiveness and performance of the industry are decided. Several elements have a direct
impact on competitive rivalry. When opposing groups are around the same size, the
competitor balance is such that competition is strong. When the pace of development in an
industry is slow, competition is likely to be fierce. High fixed expenses to operate in the
business, as well as strong exit barriers if a company decides to quit the market, will also
result in high competition. Furthermore, when there is little diversity between particular
rivals' product offers, the degree of competition is high. Rivalry is a fundamental predictor of
an industry's competitiveness and profitability. The key motivator is the amount and
capability of market rivals. Many rivals with similar goods and services will lower market
attractiveness. Firms in a competitive industry must fight intensely for a market share,
resulting in poor profitability. When there are numerous rivals, exit barriers are high, industry
development is sluggish or negative, goods are not distinctive and can be readily replaced,

competitors are of equivalent size, and customer loyalty is low, rivalry among competitors is
strong (Porter, 2008). Agricultural output is characterized by a high level of competitive
competition in this regard. Efforts to establish branded or specialized items are rapidly and
successfully replicated, making significant difference impossible. The rivalry has a
significant negative influence on individual profitability in the industry. An increasing and
diverse demand, rapid adoption of new technologies, global agricultural resource constraints,
and society with increasing expectations of agriculture to produce a safe, abundant,
affordable—and now "sustainable"—supply of food, fiber, feed, and energy will all shape
crop producers' future environment. Furthermore, crop producers' capacity to earn profits will
fluctuate in response to the profitability prospects of input suppliers, consumers, rivals,
replacements, and new entrants. Due to the contemporary business environment's quick speed
of competition, a company or industry must be more competitive and aggressive. The
competitiveness of global agriculture has sparked concerns among economists and
policymakers about the need for competitive advantage in emerging nations' agricultural
sectors. Competitiveness may be seen as a consequence, and so greater economic or market
performance is regarded as a sign of competitive advantage. As a result, the unique
assessment of competitive advantage in the agricultural industry adds value to identifying
characteristics that enhance competitive advantage.
Organic Food Serving Restaurant
Food that is cultivated naturally without the use of chemical pesticides and fertilizers is
known as organic food. As a result, organic food is often known as natural food. Organic
food is extremely beneficial to human health. Organic food does not harm humans since it is
not grown or processed with pesticides or chemical fertilizers. Green manure is used to
fertilize fields, and crop rotation is used to prevent pests and diseases, which helps to produce
safer and healthier food items. Organic food is also generally fresher since it does not include
preservatives. Organic farming is also beneficial to the environment since it minimizes
pollution, soil erosion, water conservation, soil fertility, and energy use. Because organic
farming does not use pesticides, it is beneficial to birds, animals, and people who live close to
farms.
Organic Food’s Coronavirus Boost:

The coronavirus pandemic has led to surging demand for organic and sustainable foods,
according to a new report. Organic foods are viewed as being healthier and safer than
conventional alternatives. “Whenever there is a food scare or health scare (like SARS),
consumers look at disease prevention and improving nutrition. Organic foods get a sales to
boost as they are perceived to be healthier and safer than conventional foods. “Organic foods
avoid synthetic pesticides and agrochemicals and are therefore considered to have less
harmful chemicals than conventional foods. Various studies also show that organic foods
have more nutrients than conventional foods. Consumers, therefore, buy organic foods as
they are considered safer and more nutritious than conventional foods.”
Demand boost leads to Supply Challenges
As organic manufacturers react to the sudden increase in demand, supply issues are becoming
evident, Ecovia suggested. In particular, COVID-19 has placed ‘international supply
networks’ for organic products under pressure. According to the research group, ‘many’ of
the raw materials used by European and North American organic food companies are
produced in Asia, Latin America, and Africa. National lockdowns are disrupting supply
chains. For instance, India is a major source of organic tea, herbs, spices, and related
ingredients. Emergency measures introduced in March have halted food processing and
exports. There is also a time lag in the time it takes to increase organic production, Sahota
said. “The challenge is to maintain supply when demand increases. The organic food industry
is prone to supply-demand swings. Since there is a conversion period (typically 18 months)
for organic farming practices, it is not easy to increase the supply of organic products. It is
therefore common to see demand surges that lead to supply shortages. When supply
eventually increases, demand can sometimes taper off. This has been a major issue for
organic meat and dairy products which have experienced under-supply, overproduction, and
then undersupply.
Opportunities
Organic restaurants present amazing opportunities for organic farmers, restaurant owners,
organic handlers, and the organic community as a whole.
Organic Food is Growing in Popularity, Organic food trends show that organic foods are
growing in popularity. Organic, which used to be a novelty term, is now much more
mainstream, and consumers are getting savvy about their organic food purchases. One

consumer survey found that 41% of parents are buying more organic foods than a year ago.
Another large survey notes that over half of adults say they'll choose organic food over
conventional foods.
Most importantly for business owners, organics are here to stay. Current surveys show
that once organic consumer converts, they rarely go back to buying conventional, even when
money is tight. When consumers are this passionate about organic food, restaurants can
safely get on board with organics as well.
1. Organic Food is Growing in Popularity
Organic food trends show that organic foods are growing in popularity. Organic,
which used to be a novelty term, is now much more mainstream, and consumers are
getting savvy about their organic food purchases. One consumer survey found that
41% of parents are buying more organic foods than a year ago. Another large survey
notes that over half of adults say they'll choose organic food over conventional foods.
Most importantly for business owners, organics are here to stay. Current surveys show
that once organic consumer converts, they rarely go back to buying conventional,
even when money is tight. When consumers are this passionate about organic food,
restaurants can safely get on board with organics as well.
2. Organic Restaurants Can be Profitable
While purchasing organic food can cost a restaurant more than purchasing
conventional food, consumers are willing to pay that extra cost to eat in an
environmentally-friendly manner. Surveys show that consumers will cut costs
elsewhere to afford organic food.
One green dining survey found that most consumers are willing to pay more at
restaurants that serve organic and locally grown food. In total, 65% of consumers
noted that they would be willing to pay 10% more to dine at a green restaurant. In the
same survey, a full one-fifth said they'd pay more than 10% more to eat green.
3. Organic Food is Environmentally Responsible
Growing organic food over conventional food has many benefits for the earth we
inhabit. Organic agriculture practices not only protect the planet but can even help

improve current negative environmental issues. When you invest in organic food for
your restaurant, you help protect the environment. For example:
• Organic farming builds healthy, strong soil which can maintain soil nutrients
and help solve erosion problems.
• Organic farming helps to conserve and protect our water supply.
• Organic farming can reduce our need for fossil fuels and help combat the
negative effects of climate change.
• Organic farming encourages healthy biodiversity.
• Organic farming results in less air pollution than conventional farming.
4. Organic Food Can Help Maintain a Sustainable Atmosphere
Organic is not necessarily sustainable, but organic food does lend itself to a
sustainable mindset, which in turn can help improve your restaurant's image.
Incorporating environmentally savvy practices at your restaurants such as water
conservation, energy saving, non-toxic cleaning, sustainable design, eco-minded
equipment, and furnishings, and more go easily hand-in-hand with organic food.
Many consumers note that eco-friendly restaurants are more appealing than non-eco-
minded establishments
5. Organic Food Supports the Local Community
According to The Organic Farming Manual, counties with more organic farms and
farmers have stronger local economies. As an organic restaurant, you directly help
sustain organic farmers and in turn, help to produce a stronger economy. Furthermore,
organics, because of their environmental benefits, help keep your local community
clean and green.
Challenges
The world is taking up a healthier turn for good as people seem to accept the inclusion of
organic food as a part of their daily life. And why not, one should always consume the safest
produce. Yet, the rate of adoption has been slow in the Indian market. Indian population

which represents almost 20% of the world’s population consumes less than 1% of the world’s
total organic produce, despite having the largest organic farmland. Its growth has been
sluggish, with people holding preconceived notions about the segment. Here are a few
hindrances that this segment is facing:
Lack of awareness about organic products: The organic food industry is a fledgling industry
where its consumers mostly belong to the “fad diet” category, with a great lacking of
awareness. Working on a word by mouth principle, core awareness for the category is
negligible, with many people opting for these options as they seem fancy. This deficiency in
knowledge creates consumers that glamorize organic consumption, creating temporary
demand. This, in turn, affects the sustainable growth of the whole industry. The concern for
safe food is still far away.
Consumer preference for low price products: India is a price-sensitive nation, with great
disparity in earning power. Organic food, due to various factors is steeper in price. Unaware
consumers are wary of spending that much on Organic food. Huge difference between the
pricing of Organic and the conventional product price has created disfavor towards Organic
food.
Expensive storage method: Apart from pricing, a hike in expenses is noted in terms of storage
and preservation. A very expensive storage method is being used as chemical input is not
utilized to Restaurant these products for long-term. Conventional farmers enlist the use of
chemicals to reduce their loss of crops, while organic farmers have to remain restricted to
limited natural methods. Without the prerequisite chemical preservatives added to
conventional foods, organic foods face a shorter storage time and shelf life and hence require
a greater level of maintenance.
Outline of Business Idea

Finding a Location for your Restaurant: This is a very crucial and also lengthy step in the
process of starting the organic food Restaurant business and may take months. As discussed
above, location is a paramount factor in the success of the Restaurant. We should try to open
the Restaurant in a prime location where people are well-aware of organic food and ready to
spend money on it. We should also ensure that there are not many competitors in the area.
Securing a location for Restaurant (Documentation, etc.)
We may negotiate concessions with the landlord if you are taking the space on rent. We are
also required to sign a lease agreement. The concessions may be regarding interior design
costs, which may include painting, infrastructure, and maintenance. We also have to apply for
the necessary building permit and would want to take the hell of an interior designer.
Apply for necessary registration and Permits
Some certain formalities and legalities must be fulfilled before you start the operation. These
are as follows:
Finding a o ation for t e estaurantL c h R
e uring a lo ation for our estaurant o u entation etS c c y R (D c m , c.):
l for ne essar registration and er itsApp y c y P m
e iding about rgani Foods e ould be ellingD c O c w w S
etting t e ri es for t e rodu tsS h p c h p c
iring Man o er for t e estaurantsH p w h R
Manage ent of our rgani Food estaurantm Y O c R
Mar eting of t e rgani Food estaurantk h O c R
n est ent re uired for rgani Food estaurant usinessI v m q O c R B
Finan ing tions for rgani estaurant usinessc Op O c R B

• Any entity which proposes to start a food business and handles the preparation and
sale of food requires a permit from the Health Department
• We must get your organic Restaurant certified officially by Organic Trade
Association
• We must file for EIN or Employer Identification Number
• Select the type of entity that may be amongst limited liability company, Sole
Proprietorship or Partnership
• Apply for GST registration (If your turnover is expected to be above Rs. 20 lakhs in
the financial year) and the PAN number
• Open an account in the Bank under the name of your Business
Deciding about Organic Foods we would be Selling
This step is also important for the business. We have to carefully decide about the organic
foods you would be selling in your Restaurant depending upon their demand and profitability.
We may also have to establish a network of organic food distributors. Hence, you would have
to conduct a lot of research before hiring the distributors. We will have to do a lot of inquiries
about pricing, credit, and delivery terms of different distributors.
Setting the prices for your products
Setting appropriate prices for your products requires a lot of calculations. If you set the prices
too low, the sales volume may be high, but you may not be able to cover your fixed and
variable costs. On the other hand, if you set the prices too high, price-sensitive customers
may go off. Hence, you must do a lot of mathematics and set optimal prices for your
products.
Hiring Manpower for Restaurant
Any business requires optimal and sufficient manpower, hence, you need good staff and
managers for important functions such as finance, operations, sales, marketing, Restaurants,
and purchases. The number of staff you require will depend on the size of your operations.

Management of our Organic Food Restaurant
We must maintain the optimal quality of your food products and you must be adaptive to
customer preferences. If your Restaurant is big enough, you may have to install a CCTV
camera to control theft and must also have good control over the supply chain.
Marketing of Organic Food Restaurant
There are many types of marketing techniques such as Word of mouth, advertising on social
media. We can also have our website. There are offline methods as well such as banners and
posters.
Investment required for Organic Food Restaurant Business
On average, the business requires an invest around Rs. 10 lakhs to start an organic food
restaurant business. The investment amount includes a deposit for the rented location (if
taken on rent), running costs for paying salaries, and other operating costs, and inventory of
organic food products. We will also need to spend money on furnishing and interior
decoration.
Financing Options for Organic Restaurant Business
Lendingkart has attractive business loan options. If the established business has all the
prescribed documents and is operative for more than six months, we can eligible for a loan
through Lendingkart. A Business loan Lendingkart offers is unsecured and hence you need
not provide any collateral or security. The EMI’s can be paid monthly or even bi-weekly.