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ENTREPRENEURSHIP BUSINESS PLAN PROJECT Student…
ENTREPRENEURSHIP
BUSINESS PLAN PROJECT
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Section III: Company IntroductionIntroduction
Indian food has become extremely well-known throughout the world, due to its wide variety of tastes, special spices, and abundance of vegetarian and non-vegetarian dishes. Indian food is renowned for its flavourful depth and aromatic aromas that tempt the palate. The chance to start an Indian restaurant and street food business is attractive given the enormous popularity of Indian food. This business plan seeks to offer a thorough analysis of the Indian restaurant and street food industries, including market analysis, competitive landscape, target market, and target market analysis. The Indian restaurant and street food industry is well-positioned for success due to the rising demand for Indian cuisine and street food.
The problem associated with the plan is that while Indian food is becoming more and more popular, many people still have trouble finding real, high-quality Indian food. Also, some people might not know how to navigate the intricate menu options of Indian cuisine or may not have easy access to Indian eateries. This offers a chance to develop a distinctive eating experience that serves high-quality Indian food and gives clients access to a menu that is simple to understand.
The business plan also seeks to capitalise on this market by offering a distinctive dining experience that combines the robust flavours of Indian food with the energetic atmosphere of Indian street food. The eatery’s menu will include vegan, vegetarian, and non-vegetarian alternatives to suit a variety of tastes and preferences. Customers will find it easier to enjoy their preferred foods at their convenience thanks to the company’s online and takeout services.
Company vision, mission, values and goals
Mission
Our mission is to give consumers a memorable dining experience that combines premium products, age-old cooking methods, and top-notch customer support. In addition to supporting a sustainable and moral business strategy, we are dedicated to fostering a welcoming and inclusive environment that honors India’s rich cultural legacy. We are committed to giving every visitor who enters our doors great customer service because we believe that every customer deserves to feel cherished and appreciated.
Vision
Our vision is to establish ourselves as the leading Indian restaurant in moose jaw and beyond, renowned for our dedication to superior cuisine and customer care. In addition to develop and evolve our menu to accommodate the shifting tastes and preferences of our customers, we intend to grow our business by opening new locations. In the long run, we want to establish ourselves as a cherished fixture in the neighborhood and a popular travel destination for foodies everywhere.
Section IV – Background ResearchSocietal-level analysis- PESTEL Analysis
Framework
Description
Impact
Political
The political climate in Canada is stable, and the country has a democratic government that supports business development and foreign investment. Yet, the restaurant business is heavily controlled, and proprietors are required to follow stringent hygienic and food safety guidelines. The Canadian government supports startups and small enterprises by offering a variety of incentives and tools. Yet, there are several regulations governing the restaurant business, and establishments are required to follow strict guidelines for food safety and hygiene. This entails acquiring a number of licences, including a liquor licence and a permit for a food service establishment. Violations may result in severe fines, legal repercussions, or possibly closure. The availability of skilled workers can also be impacted by immigration laws and visa limitations, particularly when hiring chefs and kitchen personnel with experience in Indian cuisine.
HIGH
Social
With the diversity of its population, Indian food is becoming increasingly popular in Canada. The influence of social media and online review sites on restaurant reputation has grown significantly.Multiculturalism is a pillar of Canadian society, which is one of the most diverse nations in the world. Indian food is one such ethnic dish that is in high demand. Although clients frequently use these platforms to research restaurants before choosing where to eat, social media and online review sites have also grown in importance in defining the reputation of dining establishments. As a result, the company’s success depends on having a strong internet presence and a good reputation.
HIGH
Economic
The restaurant business is expanding in Canada, as the economy is steady. The profitability of the company, however, can be impacted by variables like inflation, increasing labour expenses, and modifications in consumer behaviour. The Canadian economy is strong and expanding, offering a wide range of commercial prospects. With Canadians spending more money on eating out, the restaurant sector is also expanding. Nonetheless, the business’s profitability may be impacted by inflation, increasing labour expenses, and changes in ingredient prices. The ongoing COVID-19 pandemic has also had a major effect on the restaurant industry, with numerous establishments closing as a result of decreased foot traffic and boosted operating expenses for safety precautions.
MEDIUM
Technological
The restaurant sector is heavily reliant on technology, from online ordering and reservations to digital marketing and inventory control. Using and incorporating new technologies can improve the productivity and efficiency of the company. From online ordering and bookings to digital marketing and inventory management, technology is playing an increasingly significant role in the restaurant sector. New technology adoption and integration can improve the effectiveness and efficiency of the company’s operations. Yet, especially for small organisations, deploying and maintaining new technology may be expensive and time-consuming.
MEDIUM
Legal
Canada’s legal system is reliable and friendly to business. Restaurants must, however, abide by stringent labour laws and rules for food safety. Legal repercussions and reputational harm to the restaurant may ensue from failure to comply. In Canada, the business climate is generally steady and favourable. Restaurants must, however, abide by stringent labour laws and rules for food safety. Failing to do so may result in fines, bad press, and reputational harm for the business. Also, the current COVID-19 pandemic has resulted in more rules regarding social distance, capacity restrictions, and mask requirements, which could have a big influence on the restaurant’s operations and revenue.
HIGH
Environmental
In the restaurant business, environmental sustainability is becoming more and more crucial. Businesses may attract clients that care about the environment by implementing eco-friendly practices including decreasing food waste, utilising sustainable packaging, and sourcing local ingredients. The restaurant sector is placing more and more emphasis on environmental sustainability, and customers are becoming more aware of how their eating choices affect the environment. Businesses may attract clients that care about the environment by implementing eco-friendly practises including decreasing food waste, utilising sustainable packaging, and sourcing local ingredients. Yet, putting in place sustainable practises can be expensive and necessitate major adjustments to the way the company runs.
LOW TO MEDIUM
Industry-level Trends- Porter’s Five Forces Analysis
Framework
Description
Impact
Threat from New Entrants
The restaurant business in Canada is extremely competitive, and new competitors can easily enter the market. However, the high initial expenses needed to open an Indian restaurant or a street food stand may make it difficult for new competitors to enter the market. There is a moderate threat from new competitors entering the Canadian restaurant market. Potential competitors may be discouraged from opening restaurants because of the hefty start-up costs. Yet, if a rival offers a standout feature, like a celebrity chef or a distinctive eating experience, it will have no trouble luring clients and competing in the market. Food trucks also have low entrance barriers, which can increase competition and offer more options for street food.
MEDIUM
Bargaining power of Suppliers
Because several products and spices used in Indian cuisine may be imported from elsewhere, suppliers have significant negotiating leverage. The profitability of the restaurant may be impacted by changes in commodity prices and availability. By using local suppliers, the restaurant can, nevertheless, bargain for lower costs. An Indian restaurant and street food business strategy in Canada has strong supplier negotiating leverage. Indian food may involve the importation of numerous spices, herbs, and other ingredients from other countries, which could result in greater expenditures due to import taxes and shipping expenses. The restaurant may have trouble locating trustworthy suppliers who can match their needs, which could have an effect on the calibre of the cuisine they offer.
MEDIUM
Bargaining power of Buyers
Customers in the Canadian restaurant sector have a lot of options, which gives them significant bargaining power. To keep clients, the restaurant needs to stand out from its rivals and offer top-notch food and service. Customers can make informed choices about where to eat more easily thanks to social media and internet review sites. Customers have significant negotiating power when it comes to an Indian restaurant and street food business strategy in Canada. Customers have many dining options to pick from, including various Indian restaurants and possibilities for street cuisine. Using social media and online review sites, consumers can quickly compare meal pricing and quality, which puts pressure on restaurants to deliver high-quality goods and services in order to keep patrons.
HIGH
Threat from Substitutes
With so many options available to clients, including other cuisines, the restaurant sector faces a serious challenge from substitutes. The eatery must set itself apart by offering authentic, top-notch Indian food and a distinctive dining experience. A business strategy for an Indian restaurant and street cuisine in Canada faces a serious threat from substitutes. Customers have a wide range of dining alternatives, including fast food restaurants and other eateries serving various cuisines. Also, the expansion of online meal delivery services like skip and DoorDash boosts competition and makes it simpler for customers to place orders from their prefered restaurants. For the restaurant to distinguish itself from the competition, it must concentrate on providing authentic, high-quality Indian food and a distinctive dining experience.
HIGH
Rivalry among Competitors
Indian cuisine is one of the many eating alternatives offered by a number of rivals in Canada’s fiercely competitive restaurant market. To draw and keep guests, the restaurant needs to stand out by providing delicious, original meals, top-notch service, and an unforgettable dining experience. In Canada, the competition for customers with Indian restaurants and street food is fierce. There are numerous rivals offering Indian cuisine options in the very competitive Canadian restaurant market. To set itself apart from rival eateries, the restaurant must concentrate on providing distinctive menu items, top-notch service, and an unforgettable eating experience. To be profitable while maintaining the restaurant’s competitiveness, pricing methods must be carefully handled.
HIGH
Market-level Analysis
Market Potential Analysis
Estimating the market’s overall size, prospective market share, and revenue predictions are necessary to determine the market potential for an Indian restaurant and street food venture in Canada.
Total Market size:- The Canada-India Business Council estimates that the Canadian market for Indian food will be worth over CAD 3 billion in 2020 and increase at an average pace of 8% per year. Therefore, a market size of CAD 3.24 billion is predicted for 2021.
Target Market:- Those in the Indian community, local foodies, or travellers seeking out special dining opportunities will be the target market of our company.
Market Potential Share:- Calculate the possible market share that the business plan can capture once the target market has been estimated. This may depend on the company’s USP, which may include the calibre of the meal, the authenticity of the menu, or the degree of customer service offered. For instance, if the target market is estimated to have 10,000 people in it and the goal is to take 5% of it, the possible market share would be 500 clients.
Project Revenue:- The potential market share should be multiplied by the typical customer expenditure to forecast revenue. Canadians spend an average of CAD 9.80 a meal on takeout and fast food, per a 2020 poll by Statistics Canada. The predicted weekly revenue, assuming the restaurant serves 500 people each week, would be CAD 7,500 if it is estimated that consumers will spend CAD 15 on average per meal.
Other factors:- There are more aspects to take into account, like seasonality, competition, and operational costs, which could have an impact on the revenue estimates. For instance, revenue may fluctuate depending on whether it is higher or lower during the winter. Similar to how other Indian eateries or food carts could affect the market share. Also, the profitability will be impacted by operating expenses including rent, utilities, and staffing.
Overall, extensive investigation and study of many aspects are needed to determine the market potential for an Indian restaurant and street food business in Canada. Although it might be difficult to anticipate market size and revenue with accuracy, making educated decisions regarding a company’s strategy and plan can be aided by anticipating these numbers.
Target Market Behavioural Analysis
Demographics
The menu, price, and marketing methods can be more effectively tailored if business people are aware of the target market’s demographics. The Indian population in Canada is one of the ethnic groups with the quickest rate of growth, with the majority residing in small city like Moose jaw, . Indians are a desirable market for food entrepreneurs due to their substantial representation in the technology and healthcare industries.
Psychographics
A distinctive selling proposition that appeals to the target market can be developed by understanding its psychographics, which include lifestyle, personality, values, and attitudes. For instance, Indians are renowned as food enthusiasts who love spiciness, flavour, and scent in their meals. Businesses can capitalise on this by delivering traditional Indian cuisine and reenacting the street food experience because they also respect tradition and cultural authenticity.
Consumption Habits
Determining the type of food, amount sizes, and meal timings can be made easier by being aware of the target market’s consumption patterns. Indians traditionally eat three meals a day, the largest and most elaborate of which is dinner. Also, they enjoy sharing meals, which gives businesses the chance to serve family-style or tapas-style meals.
Purchasing Behaviour
Effective marketing and promotional tactics may be developed with the help of understanding how the target market makes purchasing decisions. Indians are affected by online evaluations and word-of-mouth recommendations, so establishing a strong online presence and providing top-notch customer service can help businesses draw in and keep clients.
Price Sensitivity
Pricing the menu appropriately depends on knowing how price sensitive the target market is. Indians frequently seek out high-quality meals at competitive pricing. They will, however, pay more for special dining occasions and premium foods.
Secondary and primary research
Primary Research
Customers appreciate spicy, tasty, and authentic Indian food, according to surveys and in-person conversations. Vegetarian and vegan alternatives also appeal to a lot of clients.
According to research, buyers favour handy sites including downtown districts, food courts, and busy retail malls.
The quality of the food and the level of customer service varies across competitors, who provide a variety of Indian dishes. Strong brand identities, distinctive menu items, and interesting marketing tactics distinguish the most prosperous rivals.
Menu testing reveals that customer like large portion sizes as well as the flavour and presentation of meals like butter chicken, samosas, and naan bread.
Secondary Research
Market Size and Growth: The Canadian market for Indian cuisine is expected to develop at an average pace of 8% per year. The appeal of ethnic food is rising, and the number of Indians living in Canada is expanding, which is what is driving this rise.
Consumer Trends: Several restaurants are now offering vegan fare, as Canadians are becoming more and more interested in plant-based and vegan options.
Regulations: In Canada, there are stringent rules and criteria that must be followed by enterprises operating in the food industry. These rules include adhering to laws governing labour and food safety, as well as tight regulations.
Economic and demographic data show that the average income in major Indian-populated city in Canada, such Moose jaw is rising along with the population.
Competitor Analysis
Competitor’s identification: – Three major rivals have been identified by the Indian restaurant and street food industries in Moose jaw: Ruchi masala, Spice hut, and Nits thai.
Examine the menus of rival restaurants: Together with some fusion meals like butter chicken poutine, Ruchi masala offers a large selection of traditional Indian foods like biryani, butter chicken, and paneer tikka. Entrees on their menu are reasonably affordable, with prices in CAD ranging from $12 to $18. The tandoori cuisine that Spice hut specialises in includes tandoori chicken, tandoori shrimp, and tandoori paneer. Entrees on their menu are reasonably affordable, costing between $10 and $15 CDN.
Indian classics and modern creations like butter chicken tacos and butter chicken grilled cheese are also served at Nits thai. Entrees on their menu are slightly more expensive than those of their two rivals, with prices in the range of $14 to $20 CDN.
Marketing techniques used by competitors: – Ruchi masala promotes special offers and discounts to draw clients. They also offer benefits to regular clients. Spice hut provides delivery through third-party services and has a smartphone app for simple ordering. Nits thai works with regional culinary bloggers and influencers and has a significant social media presence, with a concentration on Instagram and Facebook.
Customer services:- Customer service provided by Ruchi masala and Spice hut is on par with industry standards, with helpful staff and a tidy dining environment. With a contemporary and chic atmosphere, Nits thai offers a more upmarket experience.
Describe the Strengths and Weaknesses of the Business: Ruchi masala features a large selection of food and runs specials and discounts. Spice hut offers tandoori cuisine and includes a smartphone app for simple ordering. Spice Restaurant serves fusion cuisine and has a stylish interior design. Inconsistent food and service quality may be a weakness.
Firm level analysis
Market Share
In 2020, the Canadian market for Indian food is expected to be worth over 3 billion CAD and grow at an average rate of 8% per year, according to the Canada-India Business Council. The estimated market size for 2021 is 3.24 billion Canadian dollars.
SWOT analysis
STRENGTHS
A broad variety of traditional Indian meals, renowned for their robust flavours and aromatic spices, are available at Raj Darbar. For those who enjoy Indian food in the Moose Jaw area, Raj Darbar will stand out as a special dining experience because of the utilisation of traditional cooking methods and high-quality ingredients.
A group of knowledgeable and skilled managers with extensive expertise in the restaurant business is part of the Raj Darbar business model. Their operational, food safety, and customer service competence will guarantee effective and seamless operations, resulting in satisfied and devoted customers.
WEAKNESSES
Customers inmoose jawhave access to a variety of dining alternatives thanks to the region’s competitive restaurant scene. Raj Darbar will have to set itself apart from rival restaurants by emphasising its distinctive value proposition, superior food, and first-rate customer support.
Lack of initial client base and brand awareness may be another Raj Darbar issue. Raj Darbar can encounter difficulties establishing its brand awareness and attracting a dependable clientele as a new eatery in the Moose jaw .
OPPORTUNITIES
Consumers are increasingly looking for unique and unusual dining options, including Indian food. Raj Darbar can take advantage of this chance by providing a genuine Indian dining experience and satisfying the growing demand for ethnic food in the Moose jaw .
Historic sites and events are among the popular tourist attractions in the Moose jaw . By highlighting its authentic Indian cuisine as a distinctive eating choice, Raj Darbar can draw travellers who are eager to sample a variety of cuisines.
THREATS
Seasonal variations in tourism and local clientele inmoose jawcould have an effect on the restaurant’s earnings. To maintain profitability during all seasons, Raj Darbar must plan and manage its operations appropriately.
The cost of food, labour, and other running expenses can change drastically in the restaurant business. In order to maintain profitability and competitive pricing while ensuring that food quality and service standards are met, Raj Darbar needs to carefully control and monitor these costs.
Founder’s Fit Analysis
Using the “4C” paradigm of Complementary, Competence, Commitment, and Compatibility, the founder’s fit analysis for Raj Darbar Indian Street Food Restaurant is as follows:
Complementary
Raj Darbar Indian Street Food Restaurant’s founding members, who each provide a unique set of skills and knowledge, complement one another. The first founder has experience running restaurants and cooking Indian food, the second has marketing and business development expertise, the third is a talented chef with a speciality in Indian cuisines, and the fourth has a solid foundation in finance and accounting. Their combined skill set spans crucial areas of operations, marketing, culinary prowess, and financial management, resulting in a team that is well-rounded and complementary.
Competence
Each founder has a demonstrated history of success in their individual fields of expertise. The management experience of Founder 1 in Indian restaurants, the marketing expertise of Founder 2, the culinary expertise of Founder 3, and the financial expertise of Founder 4 show that they are qualified for their positions. This suggests that they have the abilities and information required to carry out the Raj Darbar Indian Street Food Restaurant business plan effectively.
Commitment
By their prior experience and knowledge of the restaurant business, the founding members have demonstrated their dedication to the company. They have worked hard to develop the essential abilities, and they both genuinely love Indian food and entrepreneurship. Their determination to launch a new business in moose jaw demonstrates their devotion, which shows a strong drive and dedication to the success of Raj Darbar Indian Street Food Restaurant.
Compatibility
The founding members get along well, which is crucial for a successful team. They have previously collaborated and have the same goals in mind for the restaurant industry. They get along well, have complimentary personalities, and recognise each other’s advantages and disadvantages. The founding members’ compatibility is essential for the successful teamwork, communication, and decision-making that are essential for the success of an entrepreneurial enterprise.
Section V- Marketing PlanTarget segmentation and ideal customer profile
First segment:
Asian Society
Second Segment:
Modern Suburbia
Third Segment:
South Asians
Demography
25 – 75 years
Large families with Middle aged parents
Multigenerational families
First and second- generation Sikh, Hindu and Muslim Families
More than 80% are minorities
Speaks mostly punjabi
Mixed occupation
University or College
Average income
(Nearly $100,000) per household
Family with children of all ages.
Own or rent a duplex or low rise or single-detached home
30 – 40 Years old
Younger and middle-aged families or single
University or college
The diversity is high here.
Income of $137,614 per household.
The occupation is mixed.
Single attached or semi-detached or row houses
Within 45 years
Middle to older families
High school
Income $119,291
Diversity High
Home single to duplex and detached.
Blue collar job and service sector jobs
Single detached or semi duplex houses
Geography
Canada
Eastern and western Moose jaw
People coming from South Asia
Urban living
Rent or own Single/Detached or Duplex
Canada
Asian and Southeast Asian
People coming from Asia
Urban living
Single/Detached or
South and east of Canada
Blue Collar Job
Single or detached home
Urban people
Families and singles
Physiography
The elders who are living in the urban fringe
Multi-generational
People with multi-generational families.
People who share details of you on social media.
Containing children of all ages
Aware of the latest technologies
South and South Asia
Average-aged players.
Actively associated with sports.
Crafted
Streams music
Use smartphones
Key friendly basketball and hockey club.
Over 65 Years old
Empty resters
Fond of the food and culture of India
Prioritise other lifes like humans
Brand loyal
Have sufficient income for retirement
Behavioural
Who has been looking for Indian and other asian restaurants nearby.
The people who do Leisure activities, enjoy zoos, carnivals, football games, sports bars and ethnic resturants
Who would want to achieve better than the average quality of food and beverages
Customers who drive minivans.
They use and share every day on social media.
The mobile app will give the amount of food ordered and it needs to be done quickly.
The app must be effective and should satisfy the requirements
Done shopping
Watches News
Eats rolled oats and cereal
Have a high savings account
Reads online newspaper every day
Shoppes at Indigo
Ideal customer profile
An ideal customer – Sam Raina
(Source: Helmold, 2022)
Sam Raina is a 38 years old middle-aged man of Indian origin. His ancestral home is in India, Punjab. He is a manager at XXXX Bank in Moose jaw. Sam, being a manager at the bank, has a very hectic schedule. He works from 10 AM to 7 PM, five days a week. He uses his phone as a refreshment when he gets a break from work. He follows many social media influencers and gets very fascinated with finding any new location to go for a vacation or new restaurants for dining. He gets really tired after returning home and always tries to enjoy the weekends with his family or friends forgetting about the bank.
In his house, he has a wife, Rehana and two children who are 10 and 13 years old respectively. Along with this, he has his father, mother, uncle, aunt and father-in-law in his house. All the family members except his father-in-law is Punjabi. Rehana and his father are Indian Muslims, they are also fluent in Punjabi. He lives in a duplex that he bought last year.
At the weekends most of the time Sam and Rehana try to plan for a better day and evening. They look at their phones, and search on social media for the best restaurants, bars, nearby zoos, football games etc. Sam tries to make the most of the day on the weekends. In the morning they spent at a nearby zoo or waterpark or amusement park for the children, for lunch, they search for an ethnic or Indian-origin restaurant most of the time and also at night a special dinner with every family member.
One weekend, as usual, Sam and Rehana were searching on the internet for any new restaurants of Indian origin. There are a few restaurants which can offer a variety of Indian foods. Both of them miss the spicy flavour of every Indian cuisine. Eventually while searching they found the Raj Darbar Restaurant which offers a variety of Indian and Asian cuisine which is just perfect for them. They can go and have the experience by themselves or order online from directly the restaurant for the whole family.
there are multiple bars and restaurants in Moose jaw which offer Indian food but the variety and quality of food that Raj Darbar Restaurant will offer is unique. Not only the food, the service and the ambience will attract customers again and again.
Branding Strategy
Name: Raj Darbar Restaurant
Location: Moose jaw, Canada(111 manitoba st e. before raj Darbar there was Boston pizza)
Brand Personality Characteristics
i) Indian and South Asian Cuisine
The Raj Darbar Restaurant offers a variety of Indian and South Asian cuisines made by native Asian or experienced chefs. There are a variety of sections and each is divided into Indian and South Asian divisions. Every food item is freshly made and served the way they are meant to be served. For example, if someone orders Chinese spicy noodles, they will be served with chopsticks. Again, if someone orders Lassi (A Refresher on the Indian menu) then it will be served in authentic Punjabi lassi cups.
ii) Ambience and Sophistication
The ambience is amusing for the first-time comers. The whole restaurant is decorated in Indian and South Asian styles. Starting from the lamps to the fans, tables, chairs and also the dress code of the employees and the receptionist are decorated maintaining the ambience.
iii) The Services and Personalised Experience
The service here is unforgettable. At each table, customised music is played and the customers can also ask to change the playlist if needed. The staff here is trained to be polite, and gentle and have given the knowledge about Indian and different South Asian cultures. Most of the staff are of Asian origin. So, they can easily mix with the customers.
iv) Distinctiveness
Raj Darbar Restaurant is distinct from other restaurants in terms of food, service and experiences. The restaurant offers a variety of distinct cuisines which are distinct to a certain region of the Asian countries and which are not found in any of the other restaurants in Moose jaw. For example, in the dessert and sweets section Kheer, Amriti with Rabdi are some Indian sweets which are not available in any other Indian restaurants. For the South Asian section, Dim Sum and Pho are Chinese and Vietnamese native foods that are only available in Raj Darbar.
The tagline for raj Darbar:
Experience the Royalty of Indian Cuisine at Raj Darbar
Our company raj Darbar logo:
Marketing mix details
Product
In the Raj Darbar Restaurant, all of the food products are made by authentic, native and well-trained Asian chefs. They use authentic ingredients and spices to make the food delicious. Every food item is first tested by professionals and then only approved to be given to the customers. The dishes are also separated into different sections like vegetarian and non-vegetarian, light or heavy meals etc. There are many options from which the customers can choose their desired food. From starters, and refreshers, to main courses and side dishes, sweets and desserts and a special dish of the day every product gives a different taste and value which is unforgettable.
Price
The dishes have different price points, some of them
