Your Fine Dine

2021/05/17
Presented by:

sammy

Yfd03@gmail.com
www.YFDitahari.com
Itahari, Nepal

Mobile: 9812871223
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Contents
Executive Summary...................................................................................................................2

1. Company Description.............................................................................................................1

1.2 Mission statement.............................................................................................................1

1.3 Vision...............................................................................................................................1

1.4 Business Objectives..........................................................................................................1

1.5 Key to success..................................................................................................................2

2. Industry analysis.....................................................................................................................3

2.1 SWOT analysis.................................................................................................................4

2.2 PEST analysis...................................................................................................................4

3. Market Analysis.....................................................................................................................6

3.1 Market segmentation........................................................................................................6

3.2 Competitor comparison....................................................................................................6

4. Marketing plan.......................................................................................................................7

4.1 Product..............................................................................................................................7

4.2 Price..................................................................................................................................7

4.3 Place.................................................................................................................................7

4.4 Promotion.........................................................................................................................8

4.5 Sales Strategy...................................................................................................................8

5. Organization and Management..............................................................................................9

5.1 Organization Structure......................................................................................................9

5.2 Human resource strategy..................................................................................................9

5.2.1 Job duties and Responsibilities..................................................................................9

5.3 Recruitment and selection..............................................................................................10

6. Ownership............................................................................................................................10

6.1 Form of business.............................................................................................................10

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6.2 Legal Status....................................................................................................................10

7. Operation Plan......................................................................................................................11

7.1 Production process..........................................................................................................11

7.2 Quality assurance............................................................................................................11

7.3 Safety and Security.........................................................................................................11

8. Financial Plan.......................................................................................................................12

8.1 Start-up cost....................................................................................................................12

8.2 Source of Fund...............................................................................................................12

8.3 Pro-Forma Income Statement for 3 years.......................................................................13

8.4 Pro-Forma Cash Flow for 3 years..................................................................................15

8.5 Pro-Forma Balance Sheet for 3 Years............................................................................16

9. Appendix and Reference......................................................................................................17

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Executive Summary
Your Fine Dine will be a moderately priced 112 seat restaurant offering Korean food along
with Nepalese cuisines and Karaoke service. Our slogan is “Food, Folks and Fun”. We will
offer specialty selections including a lighter options and smaller portions for a children’s
menu. There will be 4 separate rooms for karaoke where people can sing and enjoy. This plan
will serve as the financial and plan for the first three years of the venture’s operation. The
business will obtain a loan through commercial bank in the amount of 12, 00,000.
Additionally, remaining amount of Rs. 8, 00,000 will be financed by the founder.

The concept of Your Fine Dine is to give tasty and healthy Korean cuisines along with
Nepalese cuisines, and karaoke entertainment service where people can sing and enjoy at
reasonable price in relax ambiance. The business will focus on middle, upper middle- and
upper-class, especially teenagers who are being into Korean industry these days. For this
sake, the company plans to advertise its service facilities through various media and above all
it will rely more on personal links and relationships. The venture will start from the beginning
of 2022. The restaurant will be located in Itahari, eastern line near Oli & Associates.

The concept is of new kind. The idea of Korean cuisine is inspired by seeing the growing
trend of Korean pop musics and Korean dramas, also the Nepalese youths are getting more
interested in Korean cuisines. Also, there are no such karaoke entertainment business in
Itahari. Even though there are no such players with similar concept in the market, but still
some indirect competition can pose a challenge to Your Fine Dine and its business concept.
The market survey conducted shows the business plan to be feasible and also financial
projections for Your Fine Dine show the potential for success and growth in the existing
market.

I will be leasing a space located at Eastern line near Oli and associates. The site is in near
main road of the Itahari city. The décor will feature Korean cultures, wall paintings will
consist of Korean pop artists. And wood accented chairs with blue and white checked table
cloths. Dinner style tables will be surrounded by wooden chairs with comfortable seating
cushions.

The restaurant will be sole proprietorship wholly owned and operated by Samir Chhetri. Total
initial capital investment will be Rs. 20, 00,000 with 40 % equity contribution and 60% loan.
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1. Company Description
Your Fine Dine is newly opened restaurant in sub-metropolitan city, Itahari which will be a
unique concept by adding karaoke in it. In Nepal, diversities in various ethnic group also
differs their eating habit. So, our main focus will be in Korean cuisine and karaoke
accompanied by Nepalese cuisine. The idea of Korean cuisine is inspired by seeing the
growing trend of Korean pop musics and Korean dramas, also the Nepalese youths are
getting more interested in Korean cuisines. The decoration of restaurant will follow Korean
cultures and also the paintings of Korean pop artists. There will be separate 4 Karaoke rooms
with high qualities speaker and monitors. “YFD” is fully dedicated to make sure that the
customers expectation is fulfilled. We aspire to give customer the feeling of home away from
home.

We will recruit and select male as well as female candidates; new and experienced. They will
be given orientation and training to prepare them to suit the customer requirements. All the
employees will have to work under the terms and conditions of Your Fine Dine. Salaries and
benefits will be given by the company as per the contract.

The business will be sole proprietorship wholly owned by the owner, Samir Chhetri. The
restaurant will open 7 days a week in hours from 10:00am to 8:00pm except Thursday from
10:00am to 5:00 pm. Customers can enjoy our menu by visiting us at our locations or by
ordering it by online through our website www.YFDitahari.com.

1.2 Mission statement

YFD is committed to provide a unique Korean style and relaxing dining experience with
karaoke. Also, Build & maintain a team motivated & committed workforce with high work
ethos. We will strive to achieve this goal by providing menu items at reasonable prices, we
will be mindful of the well-being of our customers and staff– treating each and everyone with
dignity and respect.

1.3 Vision
“To become a top restaurant and unique entertainment service provider”

1.4 Business Objectives

 To give quality meals at reasonable prices with exemplary service
 To expand into a number of outlets by year four, and sell the franchise to
neighbouring metro and sub-metro cities, such as Biratnagar, Dharan.
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 To give relaxed ambience to customers where they can eat and sing in karaoke
 To create congenial working environment where all employees’ rights are protected
 To work towards fair competition.
 Promoting and expanding the restaurant concept as unique restaurant

1.5 Key to success

Your Fine Dine will demonstrate its values through its decisions, actions and service it
provides. We believe putting values into practices creates long term benefits for customers
and our employees.

 Customer satisfaction will be the first priority which will be achieved through
customer-oriented services.
 Not only great food, but great service and atmosphere
 Appreciate suggestions and recommendations given by customers and employees
 Hiring skilful chefs and offer them training to keep on top
 All the employees can work with dignity and have gainful employment
 Excellence in entertainment
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2. Industry analysis
The business of food has gained noticeable momentum over the past few decades and the
number of people joining the business has grown significantly. The increasing spending
capacity of Nepalese has been one of the major factors for this. The industry of restaurant and
karaoke is mostly effective in urban areas. The number of restaurants across the country
clearly indicates the profitable opportunities that exist in the eatery sector.

For the industry analysis Your Fine Dine has choose Michael Porter’s industry forces model.
The five forces are threat of new entrants, bargaining power of customers, bargaining power
of suppliers, threat of substitutes, and competitive rivalry within the industry.

 Threat of new entrants

In Itahari’s present situation there are many restaurants but restaurants having Korean
cuisines are only few. Also, the major part is that there are no karaoke services in Itahari,
but by seeing the profit-making opportunity it is expected that there will be entrance of
huge number of companies trying to duplicate business plan of Your Fine Dine.
 Bargaining power of buyer
The bargaining power of buyer is low because our business is cost fixed that customer
does not bargain. Also, our restaurant has a little bit advantage by being only one direct
competitor in Itahari, as because there are no such restaurants in Itahari which have
karaoke in it and also Korean cuisines. In addition, our business will mainly focus on
teenagers that they want to enjoy and party with their friends. Including, the service in our
karaoke has a quality to provide our customer.
 Bargaining power of supplier
The bargaining power of suppliers is high because we are purchasing product in a lot of
numbers. And it has a lot of restaurants in Itahari to provide the equipment. And the costs
of products are not difference with the general market.
 Threat of substitutes
Threat of substitute for YFD is high. There are lot of substitutes available in market.
Customers may switch to other restaurants if the feel like the cost of our restaurants is too
high.
 Competitor’s rivalry
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The rivalry between exiting competitor around our restaurant is low. Our restaurant has
the competitor in direct and indirect. However, it doesn’t affect the business, our
restaurant
has the identity of style such as a Korean culture theme, paintings of Kpop artists and a
quality of equipment’s. And the major point is that we have karaoke service where the
restaurants in Itahari doesn’t have.

2.1 SWOT analysis

Strengths

 Only restaurant that has karaoke in Itahari market

 Location close to main market and colleges
 Customer oriented
 Attractive store design

Weaknesses

 Recruiting and retaining quality employees

 Lack of experience
 Uncertainties about business success
 Competitors may offer similar products/services

Opportunities

 Increasing interest in Korean cuisines

 Increasing trends of Korean pop and dramas among Nepalese youths
 No direct competitors in Itahari.

Threats

 Possibility of new entrants

 Political instability in country
 Existing businesses providing substitutes product like Nepalese cuisines and fast
foods could pose threat to our business
 Indirect competitors in market

2.2 PEST analysis

 Political
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Political uncertainty and instability of government with the collapse of constituent

assembly can negatively affect the business plan. In Nepal there is so much political
instability which may bring chaos to the business.

 Economical
Economic factor affecting business are interest rate, wage rates, and the rate of inflation
(i.e. general level of increase in prices). Currently, in Nepal inflation is prevailing and it
may affect the function of business.
 Social
Social factor affecting business includes culture, norms, lifestyle, population changes etc.
The country is seeing the changing family structure and rising middle and upper middle
class. This can be an opportunity for the company to commence a business.
 Technological
The advancement in the IT has given businesses to better manage its customer profile,
transactions and relationships with key stakeholders. Nepalese companies have realized
the importance and power of having updated technology and have focused on Product
innovations, applications of knowledge, new communication technologies. YFD can
benefit from this rapid change in technology as long as the cost of new technology is
reasonable.
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3. Market Analysis
The restaurant industry is a large and diverse business. Recent years have seen the start-up of
many new restaurants in the city, the industry is fairly stable. Restaurants are available in
every area. However, if we see in Itahari there are only one or few restaurants that serves
Korean cuisines and the major point is that there are no such restaurants or bars that has
karaoke in it. As of now there is increase in trend of Korean pops and Korean dramas so does
youths are getting interested in Korean cuisines, thus people looking for Korean cuisines will
be attracted towards us.

3.1 Market segmentation

YFD will appeal to a broad base of consumers in both the residential and business
community. The location selected for YFD was chosen primarily to appeal to the growing
number of populations in the area. YFD intends to cater to a wide customer base. We want
everyone to feel welcome and entertained.

 Demographic Segmentation

Our geographically segmented target market is mostly teenagers and Urban upper- & Middle-
class families.

 Geographically Segmentation

Geographically segmentation, as being a start-up business so mainly focus will be in Itahari.

 Psychographic Segmentation

Psychographic target market will be teenagers looking place for enjoyment and families
looking place to relax and chill out.

3.2 Competitor comparison

In Itahari, there are several restaurants operating in almost every area. Direct competitor of
Your Fine Dine are those individuals who are involved in providing Karoke, Korean cuisines.
However, if we see there are no direct competitors that are providing the same service as
ours. There are no such restaurants or bars that has karaoke in it or there is no karaoke place
where people can sing and eat in itahari. Also, there are one or only few restaurants that have
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Korean cuisines. Indirect competitors are those restaurants that has fast-foods and Nepalese
cuisines. There are many indirect competitors in the market some of the main are Burger
house, Big bar and grill, Majheri, Purbanchal etc. Such indirect competitors may pose threat
to our business.

4. Marketing plan
Although there are many players in the market but still, we will increase our customer base
through our marketing strategies. We will aware our customers through effective marketing
plan. The strategy we will choose depends upon the expectation and trends of customers,
competition in the industry, and other external environmental factors. Now a days, everyone
is into social media from young teens to old adults thus we will take advantage of social
medias too. Through our marketing efforts we want our customers to know that:

 Our restaurants have relaxing ambiance where friends, family can chill
 We are offering different and tasty Korean cuisines
 We are the first one bringing karaoke entertainment service in Itahari market
 Our ideas are creative and innovative.

4.1 Product
Here are some products listed below which will be available in our restaurant. Also, we will
update and add items according to the trends, taste and preferences of customers

 Korean cuisines (Haejang, Gamjathang, Kimchi items, Bibimbap, Japchae, Tofu,

Ramyeon, Kimpbap, Sushi, Pajeon, Hobak juk, Tteokbokki etc)
 Fast Foods (Pizza, Burgers, Noodles, Momo, Sausages etc)
 Veg and Non-veg snacks
 Nepalese cuisine and snacks (Thakali, Bhatamas sadheko, peanut sadheko, Wai Wai
sadheko, aalu sadheko, chatpate etc)
 Soft drink, Beverages and Hard drinks

And for karaoke there will be 4 separate rooms where customer can sing and enjoy.

4.2 Price
At YFD, cost accounting is important, since the profitability of individual dishes can vary
significantly and will initially determine the cost of the menu items. Also, we will be using
bundle pricing strategy where we will combine several products and sell them in a single
price like Breakfast set, Brunch set, Lunch set, Dinner set etc. We will closely monitor the
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Prime Cost Report which focuses on the controllable expenses of Cost of Goods Sold and
Labour.

4.3 Place
Your Fine Dine location will be in Itahari, East line near Oli & associates. The location is in
near the main road.

Contact:

Email: Yfd03@gmail.com

Website: www.YFDitahari.com

Restaurant no.: 088-664203

Distribution

Our customers can enjoy our service and menu items by coming to our location. And also we
will be delivering our menu through online too, customers can order from our website
www.YFDitahari.com

4.4 Promotion
The best way to reach our potential customers is to develop an intense advertising campaign
promoting our YFD’s concept of "Food, Folks and Fun". Our Advertising Plan and media
schedule call for targeting customers directly through local publications aimed at
respectively, singles, couples, and destination customers. In addition to standard advertising
practices, we will gain considerable recognition through newspapers, newsletters and public
announcements. Loyalty and Birthday Club members will be notified of upcoming special
menu items and to alert them of our catering service. Also, not to forget internet marketing is
the most effective way to promote business these days. A well-maintained Instagram and
Facebook pages with complete customer reviews would be helpful for us to promote. We will
stay current with industry trends and have a webpage, Facebook page and Twitter site. Our
menu, map, and hours of operation will be easily accessed.

4.5 Sales Strategy

Our strategy is simple: we intend to succeed by giving our customers a combination of
delicious and interesting food in an appealing environment, with excellent customer service,
whether on their first visit or their hundredth.
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Our sales plan is to establish and maintain position with our local customers. The strategy is
to build more customers in order to increase revenue. Sales in our business is client service. It
is repeat business. We will focus on making all our customers happy with our food, service
and entertainment options. Our strategy in the restaurant is to have an experienced staff that
know the food, wine and liquor. We will train every new employee so they will fit in with
YFD’s concept.

5. Organization and Management

5.1 Organization Structure
I, Samir Chhetri, will be the major decision maker in the overall management of the business.
I will be responsible for the overview of the overall business. I will be responsible for
planning, goal setting, strategy formulation and implementation of the business. The
company will hire three officers; General manager, Front-of-house staff and Executive chef.
All the managers will be given full authority to manage and operate their respective divisions.
All are independent to formulate plans and strategy for their divisions. However, final
approval will be made by Managing director.

Managing Director

HR manager Front-of-House Staff Executive chef

Fig:- 1

5.2 Human resource strategy

Your Fine Dine will be owned, managed and run by Samir Chhetri as the head and managing
director of the company. The company plans to have three major departments i.e., Human
Resource department, Front-of-house, Back-of-house to smoothly operate its daily activities.

5.2.1 Job duties and Responsibilities

 Human resource manager- The human resource manager will be responsible for hiring,
training and overseeing the staff.
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 Front-of-House Staff- The front-of-house staff will be responsible for the restaurant’s
dining area, bars and beverages, including setting up service, waiting on customers and
interacting with the kitchen staff .
 Executive chef- The executive chef is responsible for back-of-house operations. This
includes training kitchen staff, creating menu items, sourcing and purchasing foods.

5.3 Recruitment and selection

There will be two types of staffs working for the company; permanent and part time. A
permanent staff consists of those working in the management team. They will be hired for
post like Executive chef, human resource/customer relationship officer, database operator.
Newspaper advertisement and personal referral will be used for recruitment of these staffs.
Selection will be done on the basis of review of qualification, prior experience, and
completion of interview.

Part time staffs consist of waiters and waitress. Personal network and referrals will be used to
recruit of these staffs. Selection will be done on the basis of prior work experience.

6. Ownership
6.1 Form of business
The business will be operating in the hospitality and service industry. The company will be
financed using debt and equity. All the equity finance will be contributed by the owner. It
will be a sole proprietorship business.

6.2 Legal Status

The business will be registered according to the rules and regulation of goverment of Nepal
by fulfilling all the legal and administrative aspects. The owners will be personally liable for
any amount owed by the company during the transaction of the business. It will be guided by
rules and laws of government of Nepal.
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7. Operation Plan
7.1 Production process
Only the best quality produce will be used in the production of the food. Production process
will be in customization, where the products are made one at a time according to the specific
needs or wants od individual customer. Staff will be trained in exceptional customer service.
Menus will change regularly to accommodate customer demands. Nightly features will be
offered in the fine dining section.

7.2 Quality assurance

Quality assurance includes i) Tasty food ii) Elegant and refresh atmosphere iii) Friendly
service. Flavours will repeatedly check by professional chefs to make customer satisfy and
also it will change according to the business development requirement. Based on the new
things we learn; we will develop our own characteristics. We will also give our employees
professional training on service to assure the service quality.

It is important not only to focus on flavours but also care about the health of the customers.
Making customers excellent dishes, providing them with beautiful appearance, and healthy
food. For the atmosphere, as the main focus is in Korean cuisines so will set up the restaurant
as Korean cultures and also the painting will be of Korean pop artists.

For karaoke mic, speakers and monitors will be regularly check, it will be of good quality. In
our service customers should feel that they are getting respect, care and love and also it
should let them feel that they are being satisfied what they are paying for.

7.3 Safety and Security

This is the most important area where our business will focus. The business will be guided by
its efforts to cover all the aspects of safety of its customers. I believe the business model
depends on how well and safely the company will provide services with staffs with good
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moral, behavior and with no criminal records. All the staff of Your Fine Dine will be CRB
checked with.

8. Financial Plan
The following sections outline our financial plan:

 Required Cost of Start-Up

 Source of fund
 Income Statement
 Cash Flow
 Balance Sheet

8.1 Start-up cost

Total start-up costs will be Rs 20,00,000, out of which Rs8,00,000 will be contributed by the
owner and the remainder 12,00,000 will be secured through a proposed bank loan.

8.2 Source of Fund

Total start-up costs are estimated to be Rs 20,00,000. The majority of the costs are associated
with the renovations, furniture, kitchen equipment, liquor license, food & restaurant supplies,
legal fees, working capital, marketing and personnel.

Owner will contribute Rs 8,00,000 and are requesting an additional Rs 12,00,000 in the form
of a bank loan.
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8.3 Pro-Forma Income Statement for 3 years

Particular Year 1 (Rs) Year 2 (Rs) Year 3 (Rs)

Sales 1,211,088 1,279,204 1,341,260

Cost of good sold 398,407 406,976 415,276

Gross profit 812,681 872,228 925,984

Operating Expenses

Payroll 400,788 429,828 431,128

Marketing 22,000 25,000 15,000

Depreciation 6,500 6,500 6,500

Leased equipment 12,000 12,000 12,000

Accounting/Payroll Processing 6,600 6,600 6,600

Legal retainer fees 2,400 2,400 2,400

License and permit 6,000 6,000 6,000

Credit card expenses 19,983 21,107 22,130

Bank fees 1,200 1,200 1,200

Music & Entertainment 3,774 3,774 3,774

Training expense 5,008 6,008 6,008

Repairs & Maintenance 9,000 9,000 9,000

Utility Services 26,496 27,821 28,907

Telephone/Communication Expense 1,800 1,800 1,800

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Insurance 21,624 22,705 23,610

Restaurant Occupancy Cost 77,250 79,568 81,955

Payroll Taxes 66,500 71,320 71,567

Exterminator/Trash Removal 4,800 4,800 4,800

Dishware/Uniforms/Cleaning 12,466 13,089 13,612

Supplies/Décor
Printing/Paper/Postage/Subscriptions 9,500 9,500 9,500

Facility (Exterior Cleaning/Grease 3,640 3,640 3,640

Trap/Hood/Windows,etc.)
General Business Comps 22,850 23,125 23,125

Owner Comps 4,524 4,524 4,524

Other Expenses 4,200 4,200 4,200

Total Operating Expenses 750,903 795,509 792,980

Profit before tax 61,778 76,718 133,004

Tax Incurred 29,722 31,864 46408

Net Income 32,056 44,854 86,596

Fig:- 2
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8.4 Pro-Forma Cash Flow for 3 years

Particular Year 1 (Rs) Year 2 (Rs) Year 3 (Rs)

Cash from Operations

Cash Sales 1,211,088 1,279,204 1,341,260

Subtotal Cash from Operations 1,211,088 1,279,204 1,341,260

Additional Cash received 0 0 0

Subtotal Cash received 1,211,088 1,279,204 1,341,260

Expenditures

Expenditures from Operations

Cash Spending 400,788 429,828 431,128

Bill Payments 772,134 796,888 817,391

Subtotal Spent on Operations 1,172,922 1,226,716 1,248,519

Additional Cash Spent

Long-term Liabilities Principal 47,772 47,772 47,772

Repayment
Dividends 20,000 10,000 10,000

Subtotal Cash Spent 1,240,694 1,284,488 1,306,291

Net Cash Flow (29,606) (5,285) 34,968

Cash Balance 87,461 82,176 117,144

Fig:- 3
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8.5 Pro-Forma Balance Sheet for 3 Years

Particular Year 1 (Rs) Year 2 (Rs) Year 3 (Rs)

Assets

Current Assets

Cash 87,461 82,176 117,144

Inventory 40,589 41,462 43,473

Other Current Assets 73,311 73,311 73,311

Total Current Assets 201,362 196,949 Rs.233,929

Long-term Assets

Long-term Assets 65,000 65,000 65,000

Depreciation 13,000 19,500 26,000

Total Long-term Assets 52,000 45,500 39,000

Total Assets 253,361 242,449 272,929

Liabilities and Capital

Current Liabilities

Account Payable 63,657 65,663 67,319

Current Borrowing 0 0 0

Subtotal Current Liabilities 63,657 65,663 67,319

Long-term Liabilities .204,456 156,684 108,912

Total Liabilities 268,113 222,347 176,231

Paid-in Capital 440,000 440,000 440,000

Retained earnings (486,808) (464,752) (429,897)

Earnings (32,056) (44,855) (86,595)

Total Capital (14,752) 20,103 96,698

Toal Liabilities and Capital 253,359 242,449 272,929

Fig:- 4
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9. Appendix and Reference

Figures: -
1. Organization Structure
2. Pro-Forma Income Statement for 3 years
3. Pro-Forma Cash Flow for 3 years
4. Pro-Forma Balance Sheet for 3 years
References: -
1. https://edition.cnn.com/travel/article/best-korean-dishes/index.html
2. www.scribd.com
3. Entrepreneurship book
4. https://fnwonline.com/what-makes-a-restaurant-successful-in-kathmandu/
5. https://www.newbusinessage.com/MagazineArticles/view/1730