BUSINESS DEVELOPMENT PLAN

ON
“FLORET FOOD ZONE”

In partial fulfillment of the requirements for the degree of

Master of Business Administration

Submitted By:
Shreeja Rajakrnikar
Exam Roll No. 20571095

Submitted to:
Rajdhani Model College
Pokhara University

August, 2022
 ACKNOWLEDGEMENT
This report has been conducted for the partial fulfillment of our course for the
requirement of the graduate level degree of MBA. The objective of this business plan
is to give the real scenario of the practical life. It encourages the students to have their
own venture and give something new to the society.

I would like to extend my sincere gratitude to respective lecturer Mr. Bibek Bhandari
for giving us the guidance and mentorship on the creation of our business plan and his
cooperation, advice and also for providing opportunities to enhance our activity and
talent in creating business ideas. I would like to thank our program coordinator Mr.
Basanat Dhakal for assisting us with the suggestions and development of idea.

This business plan is the result of the continuous effort and hard work. I am very
much grateful to all those who directly/indirectly helped in preparing this business
plan from the day of creation of a small idea till the day of the final and complete
business plan. I always believe that there is always a room for improvement and
accordingly I will be looking forward to receive suggestions, for further enriching the
quality of task that I perform.
I would also like to thank the business people from various restaurants, whom we
collected the information for being supportive and sharing their views and ideas
without any hesitation. Their help has played vital role in preparing our business plan.

Sincerely,
Shreeja Rajkarnikar
MBA 4th trimester,
Rajdhani Model College

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 DECLARATION

I, the undersigned, declared that this business plan entitled “Floret Food Zone”
submitted to Rajdhani Model College (Pokhara University) is a result of my own
research carried out in the year 2022 under guidance of Mr. Bibek Bhandari. It has not
been previously submitted to any other University or Institute for the award of any
degree nor does it resemble with other works.

Signature

________________

Shreeja Rajkarnikar

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 Executive Summary
Floret food zone is an interesting and new type of restaurant cooking food with
flowers as ingredients. The restaurant is also going to provide a brilliant and relaxing
atmosphere for people. The start-up management team will combine expertise
manager and the chefs. They need to have at least several years’ experiences on
restaurants. With the development of the restaurant, I will keep inviting more
expertise managers.
The restaurants are going to develop into a name-brand restaurant with unique food
characteristics and establish a leisure resort leading with the flower health care. The
restaurant will offer customers with honest care and comfortable enjoyment to make
customers to enjoy first-class food, service and environment. Flora catering contains
various nutrients and trace element, it has some medical and health care functions,
and it can also enhance the people’s physique and prolong people’s life. The
restaurant will lead the catering trend of 21st century, bringing the idea of flora health,
culture and leisure to the customers.

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 Table of Content
ACKNOWLEDGEMENT........................................................................................................ii
DECLARATION.....................................................................................................................iii
Executive Summary.................................................................................................................iv
Chapter 1..................................................................................................................................1
Introduction..............................................................................................................................1
1.1 Start-up summary............................................................................................................1
1.2 Locations........................................................................................................................2
1.3 The form and financing...................................................................................................3
1.4 Management...................................................................................................................3
1.5 Kitchen Cost Control......................................................................................................3
1.6 Internal and External relationship...................................................................................3
1.7 Product and Services.......................................................................................................4
1.8 Mission and Vision.........................................................................................................5
1.9 Objectives.......................................................................................................................6
1.11 Legal status...................................................................................................................6
Chapter 2..................................................................................................................................7
Industry Analysis......................................................................................................................7
2.1 SWOT Analysis..............................................................................................................8
2.2 PEST Analysis..............................................................................................................10
Chapter 3................................................................................................................................12
Market analysis.......................................................................................................................12
3.1 Market Segmentation and Target Customer..................................................................12
3.2 Buyer Behavior.............................................................................................................13
3.3 Competitor Analysis.....................................................................................................14
3.4 Product Positioning.......................................................................................................15
3.5 Key Success Factors.....................................................................................................15
Chapter 4................................................................................................................................16
Marketing Plan.......................................................................................................................16
4.1 Pricing Strategy.............................................................................................................16
4.2 Brand Challenges..........................................................................................................16
4.3 Marketing Programs......................................................................................................17
4.4 Sales Strategy................................................................................................................17
5.4 Strategic Alliances........................................................................................................18
Chapter 5................................................................................................................................19
Organizational Plan................................................................................................................19
5.1 Management Team........................................................................................................19

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5.2 Organizational Structure...............................................................................................19
5.3 Personal Plan................................................................................................................20
1 Financial Plan..................................................................................................................21

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 Chapter 1
Introduction
Floret food zone is an interesting and new type of restaurant food with flowers
as ingredients. The restaurant is also going to provide a brilliant and relaxing
atmosphere for people. The start-up management team will combine expertise
manager and the chefs. They need to have at least several years’ experiences on
restaurant. With the development of the restaurant, we will keep inviting more
expertise managers.

The restaurant is going to develop into a name-brand restaurant with unique

food characteristics and establish a leisure resort leading with the flower health
care. The restaurant will offer customers with honest care and comfortable
enjoyment to make customers to enjoy first-class food, service and
environment. Flora catering contains various nutrients and trace elements, it
has some medicinal and health care functions, it can also enhance the people’s
physique and prolong people’s life. The restaurant will lead the catering trend

of 21st century, bringing the idea of flora health, culture and leisure to the
customers.

1.1 Start-up summary

The start-up expenses contains rent, facilities, expenses on marketing, sales and
promotion, building website, license and so on. The start-up assets include tables,
chairs, kitchen facilities, various utensils and computers

Start-up

Requirements Unit: NPR

Start-up Expenses
Legal 10,000
Rent 8,000

Facilities 50,000

Marketing, sales and promotion 10,000

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License 3,000

Other 50,000

Total Start-up Expenses 131,000

Start-up Assets

Cash required

Start-up Inventory 60,000

Other Current Assets 50,000

Long-term Assets 10,000

Total Assets 120,000

Total Requirements 251,000

Start-up Funding Unit: NPR

Start-up Expenses to Fund 131,000
Start-up Assets to Fund 120,000
Total Funding Required 251,000
Assets
Non-cash Assets from Start-up 0
Cash Requirements from Start-up 120,000
Additional Cash Raised 0
Cash Balance on Starting Date 120,000
Total Assets 120,000
Liabilities and Capital
Liabilities
Current Borrowing 0
Long-term Liabilities 50,000
Accounts Payable (Outstanding Bills) 0
Other Current Liabilities (interest-free) 0
Total Liabilities 0
Capital
Planned Investment
Parents 100,000
Other 0
Additional Investment Requirement 0
Total Planned Investment 100,000

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 Start-up Expenses 131, 000
Total Capital 31,000
Total Capital and Liabilities 120,000
Total Funding 251,000

1.2 Locations
The location of the restaurant will be near to the international airport, Tinkune in
Kathmandu. The size of the restaurant will be about 150 square meters (Estimation).
It has good environment which is very quiet. It also has a beautiful view. It has a
convenient traffic system and it is only ten minutes from the downtown area. Besides,
it is next to the wealthiest area and there are many famous entertainment places
around there.

1.3 The form and financing

Form: The restaurant will be limited liability. When it is developed into a certain large
scale, it will be switched to share company which can help the restaurant to develop.

Financing: The main source of financing would be owner’s money, relatives, and
friends. The individual person will be regarded as the investor, they may not directly
take part in the operation and management of the company, but they will enjoy the
stock dividends. The restaurant will take help from food science and technology
department as the technical background asking them to help developing products and
technologies, then it could apply loans from the bank. Keeping good reputation,
caring about the preferential policies released by the government, the restaurant could
attract many social investors.

1.4 Management
Archive is the most basic thing. It contains personal profile, quitting time, the reason
for leaving, where did they go and what they are doing now. It is very important to
record their contact methods and let the managers to communicate with them
periodically so that they could be used in the future when the restaurant is developing.
This can help to decrease HR cost and they could be taken as the HR reserve.
Performance is very important. For the employees who is in charge of ordering food.
The restaurant will reward them based on their sales performance and they can get
commission on different dishes they sell. At the mature stage, the restaurant will
develop software which is used to manage employees.

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1.5 Kitchen Cost Control
Kitchen is the core of the business and it will decide if the restaurants will success or
not. It is very important to establish the business stage and create name-brand
business, it needs long term investment, and therefore it needs detailed management
regulations and management team. It has to realize unified standard, size, and process
so that the business can increase efficiency, decrease cost to guarantee the food
standard, quality and service speed.

1.6 Internal and External relationship

 Establishing long term and stable partnership with the flower growing bases in
Kathmandu. Choose a suitable one to develop as the flora health resort.
 Searching for other restaurants that have the similar services and cooperate
with them and study skill from them, if it is possible we can also purchase
local flora products.
 Keep good partnership with the investors.
 Keep expanding social reputation, get the help and support from media,
community and public.

1.7 Product and Services

1.7.1 Product
i. Flora food: the restaurant will use flowers as ingredients to make various
dishes.
ii. Snack: Snack is a unique characteristic of the restaurant, before or after the
meal or when people are discussing issues, we will offer flora deserts to let
them feel these characteristics.
iii. Porridge: there are many types of porridge which is very popular. We could
imitate those using flowers to make porridge to attract our customers.
iv. Flora soup: people love soup before or after the meal. So, we will push out
tasty soup as another characteristic.
v. Flora drinks: when we are running the restaurant, except the normal drinks
such as beer, beverage, we will also provide new kind drinks using flowers
such as flower tea, flower alcohol.
vi. Various sets of flora food: the restaurant will offer different sets of flora to our
customers, such as rose set which means all of the dishes, snacks, and soup are
made of rose which is another unique characteristic.

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1.7.2 Gift Box
i. The colorful effect: The color effect on the customers cannot be described
with figures and words, but we could see the effect in practice.
ii. Fragrance: The fragrance spread out from the flowers can bring some pleased
feelings to the customers, therefore, it is helpful on illness recovery and
prevent from some other illness.
iii. “Happy Family” gift box: On traditional festivals, we will develop gift box
called “Happy Family” which use lily as the ingredients to make snacks and
make them into flower shape which means the whole family will get pleasure
and happiness. The gift box will also include the blessing note from the
restaurant “Hope your family could be happy on this special occasion.” DIY
(Do it yourself) note will also be included in the gift box on how to make a
special fragrant tea(the whole process). The DIY also contains the
arrangement and the schedule of the tea ceremony of the restaurant.
iv. “Rose date” gift box: Using rose to make the heart shape snacks and cakes and
rose tea. It will also include the bless note with “Wish all the lovers will be
sweet forever”.
v. “Happy everyday” gift box: Everyone likes enjoyment and what they care
about the most is that they could get a relax after busy work. In this case, we
will offer them well-made snacks made by chrysanthemum and Ba Bao tea.
There also will be some bless from the restaurant “Please do not forget to take
a rest when you work too hard”.

1.7.3 Service
After making a certain profit’s, our restaurant will develop new service: Flora Health
Care Resort. We are going to develop a new agricultural industry which combines
plant growing and flower visiting resort. We will establish a large base, breeding
different types of flowers for visiting. This can provide consumers with a funny place
to enjoy themselves. At the same time, tourists can enjoy our flora food here and cook
the food themselves under instruction. At the same time, this base can also provide
raw materials ourselves. There will be a place surrounded by the flowers which can
relax customers’ life. They can also drink tea, coffee and some other flora drinks. It
will also provide large and comfortable conference room for business meeting. The
spring flora bath could provide many minerals and elements that can give our skin the

5
best care. Therefore, we could enjoy ourselves in the Spring bath. We will give people
specialist instruction.

1.8 Mission and Vision

Our main goal is to be one of the most successful restaurants in the Nepalese history
by establishing the highest number of chain outlets inside the country. Customer
satisfaction and education are our paramount missions. We will endeavor to meet the
highest standards of excellence through superb customer service and
consistent product delivery in a friendly and comforting environment.

We seek fair and responsible profit, enough to keep the company financially healthy
and ensure continued growth and development.  Responsible profit will fairly
compensate owners and investors for their risk and reward employees for their hard
work, loyalty and commitment.

Employee welfare, participation, and training are equally important to our success.
Every employee will be treated fairly, with dignity and the utmost respect. It is our
responsibility to provide employees with a friendly, comfortable and challenging
work environment with opportunities for growth and development.

1.9 Objectives
 To establish a presence of a successful restaurant in Kathmandu valley and
gain a market shares in the restaurant business.
 To continue providing highest quality of food and service to the customer.
 To make people aware about flower and its taste.
 To make Floret food zone a destination spot for floral lovers.
 To expand into a number of outlets by year three, and expand the business
territory.
 Maintain and expand my outstanding reputation.
1.10 Values
i. Providing unique food, excellent services and elegant environment.
ii. Enhance health, prolong life, cure illnesses and improve physiological
functions.

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 iii. Making people to learn more about the flora catering which can lead the
booming of this industry.
iv. Promoting local economy and traditional Chinese culture based on some
beneficial policies from government.
v. Reducing local employment pressure.

1.11 Legal status

The company will be registered as a private limited company under the company act
2063 by fulfilling all the legal and administrative aspects outlined by the company act
and other administrative requirements. The owners will be guided by the company
during the transaction of the business. It will be guided by the company act and other
rules and laws of the government of Nepal.

Chapter 2
Industry Analysis
Despite the prolonged effects of the Economic Crisis followed by political turmoil
in our country food service industry witnessed growth every year. Much of this
growth was contributed by the cafes/bars, fast food, and food retail sectors, whose
wide appeal amongst a young population, for whom time is of a premium, led to
high levels of growth. This growth is underpinned by market demand and lifestyle
changes, such as seeing eating out as part of trendy lifestyle. In recent years, it is
becoming a worldwide fashion using flowers as the ingredients to make various
foods; flora food is becoming a new trend. Besides, there are also some other
countries using flowers as a way of health care.

Entry of big restaurants, pubs, cafes into the major destination places like
Durbarmarg, Baneswor, Jawalakhel and so on led to the growth in competition in the
marketplace, mainly from fast food chains. This stimulated the rise in the number of
fast food units, both of international and local chains that started recently. Although
there was a slowdown during the maoist insurgency, the food service
industry recovered faster than others, particularly after the peace process.
Franchising became popular in the food service industry through the introduction and
entry of multi-national food service brands, primarily U.S.-owned enterprises, such as
KFC, and Pizza Hut. Currently, there are many local chains that have also

7
experienced growth by applying this system to their operations, as for the example
Bajeko sekuwa, Alina’s bakery café, Road house café, and so on

In recent years, on the beverage market, natural flowers and plants are booming
they are with rich nutrition, no pollution and deeply welcome by consumers.
Therefore, the flora food and drinks will have a great potential market, currently,
in Kathmandu, there is no any exclusive restaurant serving with flora food,
therefore, it has a large market perspective. In addition, there are not so many
high-class restaurants have traditional cultural characteristics, therefore, there
could be a large potential.

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2.1 SWOT Analysis
A SWOT analysis takes information from an environment and separates it into
internal strengths and weaknesses, as well as its external opportunities and threats.
2.1.1 Strength
 Special flavor: some flowers have good aroma and taste when they are
used to make dishes.
 Heath Care: In medical books, the function of flowers has been given
positively confirm, flowers can be used for body care, beauty care, reduce
internal heat, improve eyesight, regulate nerves and body function. Each
flower has the function of nourishing. We will introduce specific function
of each dish in the menu, however, for consumers, especially those with
good economic conditions and high education level, they are beginning to
care about food safety and health. Our products could make them satisfied.
 Cultural Atmosphere: flora catering does not have long and deep culture
and history in Nepal. It is a new unique catering with special
characteristics, and the restaurant is based in deep cultural background city
Kathmandu, therefore, it is suitable.
 Location Advantage: for the location of the restaurant, we are going to
choose the place at the busy area in Kathmandu. The area has many
beneficial factors such as entertainment, culture, leisure, sports, business,
finance, information which collect together as a business cultural circle
with excellent environment, therefore, these could make us have many
target customers.
 Management Advantage: we will provide service with the most advanced
and scientific management ideas. We have long term strategic target. We
are going to find all the details and promote flora catering culture, we are
going to make it big. We also have our own business culture and
management theory, we are going to establish learning organization and
develop with new ideas and keep making creation. We will adopt
customer-oriented marketing management and human resource
management with the humanistic thoughts.

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2.1.2 Weakness
 Currently, the flora catering services are not mature in Kathmandu, there are
no certain groups of customers. They have to be conducted. Some people are
not familiar with it on its flavor and health care function, and safety. It needs
some time to make customers to accept it.
 Lack of the capital and scale effect. There is no cost advantage. The catering
industry is expanding sharply in recent years. Many name brands are also
expanding and increasing their marketing. It will bring us some negative
effects to our restaurant.
 The business may face difficulty in adapting to new technologies and
procedures.
2.1.3 Opportunities
With the constant development of Nepal’s catering industry, the turnover and
employment quality of restaurants are raising, Nepal’s restaurants begin to attach
importance to brand shaping, focusing on the expansion of business scale using
business chain and franchise. In Nepal’s catering market, fast food is mainly western-
style food and the dinner is mainly Nepali food. Western food is gradually blooming,
but still very small scale. Nowadays, as the income level is increasing, consumers not
only attach importance to taste but also to food diversification, balanced nutrition,
health, leisure, dinning environment and its cultural connotations. The current Nepal’s
catering industry, some companies began to focus on the product development,
transferring to the food culture.

2.1.4 Threats
For the catering industry, food taste and excellent services is the base, which need
excellent administrative staff, chefs and waiters. Because there are various kinds of
restaurant in Kathmandu, they are all fighting for talented employees and customers.
Currently, there are not so many top-grade chefs and manager in the catering, which
causing the phenomenon of grabbing talents.
At the very beginning, we all start from nothing, our capital is not enough, and
therefore it is difficult to get the advantage of grabbing talents which compose a big
threat to our business running. Shifts in consumer taste and emergence of substitute
products along with completion from established restaurants are threat to our
business.

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2.2 PEST Analysis
Political

In recent years, with the increased enrollment, graduates are facing big pressure on
looking for jobs, Nepalese government encourage self-employed. These years,
Nepalese government begins focusing on the development of the national traditional
culture, they are making much effort on spreading and continuing the traditional
culture. However, the flower catering is a continuous traditional culture from ancient
time. The government is now also planning on making some policies to double the
sales on retail products to support and develop its local economy.

Economic

In recent twenty years, Nepal’s economy is developing very fast and globally. Under
the influence of the market economy and new techniques expanding, more and more
people are becoming rich. They have new ideas, deep knowledge background, new
consumption thoughts, they are very diligent, they have very strong mental
deterioration, they are and have the potential becoming the mainstream of the
international society and they will be the most important target customers for any
business. They respect top-grade consumption and they are becoming main force for
Nepalese economy and consumption. But they are still at the very beginning stage,
their consumer awareness needs to be conducted.

Social

The social cultural environment contains population environment and cultural

background. Since the policy of reform and open was adopted in Nepal, as
Kathmandu is a city with deep cultural background and year-round spring weather, it
has attracted many excellent people with high quality and high income. In
Kathmandu, the flower catering will be a new kind of characteristic in Nepalese
traditional culture, there will be a potential. Under the influence of the history and
recent development of the economy, Kathmandu culture is multi-culture, it is very
comprehensive and people would like to try food with various flavors.

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Technological

Also, flower catering has a long history in Nepal but they are not becoming
mainstream. But there are many records and researches about it. They have vey
excellent traditional skills as background.

Besides, with the development of economy, there is a long development on the flower
market in recent years, with the development of flora catering techniques extracting
flower oil skills, traffic and a storage skill, all of these make the flora catering
possible and gives it a large space to develop.

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 Chapter 3
Market analysis
Looking at the trend of consumers expenditures for fast food in Kathmandu valley
gives the positive vibes to open up the restaurant. The increasing number of new
establishments such as fast food franchises, fancy restaurants and gourmet bakeries
has shown a significant growth in this sector. Today due to the busy life most of the
people prefer to eat in the restaurants. The only thing we need keep in mind is quality
with the value for their money. So for this we will be focusing to all type of age
groups people.

 Age - Youngsters, single, currently enrolled in college and high school.

 Family unit - We will also appeal to families (young families) with children.
 Gender - We will target both sexes, with a slight skew for males due to their
lower attention to dietary concerns.
 Income - We will appeal to the medium income individuals and to all in the lower
medium income bracket.
According to a recent public survey of people 15 - 45 years old, 80% of those
interviewed like fast food. 90% of them like fast food on a regular basis, and 10% of
them claimed that they like fast food "very much," or "love" fast food. The survey
also provided the following particular reasons for the increasing popularity of fast
food:
 Most of peoples love to window shop, and when they do strolling around the
shopping district, they need a quick bite to accommodate their activities.
 Eating out is being a trend for the people of Kathmandu. They now think it is a
part of life. They do perceive fast food restaurant is a best place to enjoy with
friends and relatives.

3.1 Market Segmentation and Target Customer

The business is targeting middle class people as well as office going peoples will be
our primary market. For this Tinkune is the best place for the restaurant to meet and
hang out. Tinkune is near to the international airport as well as a minute distance drive
from Baneswor. So people working in the international airport from executives to
officers will be our target customers.

13
Our secondary market segment is the "Working peoples." With so many places in the
valley, Baneswor is the appropriate place for the young people as well as working
peoples. Most of the offices as well as corporate houses are located in this place. So
we had the better chance of success in the business, but we also need to face tough
competition. It is found that there are almost 25 big to small restaurants including
bakery café’s which will be serving somewhat similar to our products.
Floret Food Zone intends to cater bulk of working class people as well as youngsters
in Kathmandu. We have chosen this group for several important reasons. It is our goal
to be "the extraordinary fast food restaurant" and we believe that the age group from
20+ and above is the primary age where brand building efforts could take place. They
are on limited or fixed incomes and seek a value/price relationship that will not stretch
their budgets. The business mainly focuses on following target groups:
1. Businessman: For businessman, this group of people cares about the class-level of
the restaurants, when they want to discuss business they need a quite place. Floret
food zone could provide them flora food with unique taste, our excellent service
and unique environment with special ethnic characteristics are also main factors to
attract them,
2. White collars: Currently, people are suffering too much stress from various
aspects, they need a place to enjoy themselves with their families and friends.
Floret food zone can provide them with a relaxing place to have some fun.
3. Tourists: Kathmandu is a tour city and it is called “Heart of Nepal”, there are
thousands of foreign and domestic tourists each year, Floret food zone presents
them with the local food culture to attract them.
4. College Students: Currently, In Kathmandu there is about one hundred thousand
university students, for this group people they chase new and interesting things,
they always gather together for fun, Floret food zone could provide them with an
interesting feeling.

3.2 Buyer Behavior

A recent Consumer Trend and Analysis identified the following needs among our
target markets. Our core group:
 Wants variety and flavor in its food
 Looks for speed of service
 Wants an entertaining and fun experience

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 Insists upon a clean, friendly, and attractive environment
 Adopts a global lifestyle
 Enjoys eating out
 Wants best food in a cheap price.

According to a Report published from various organizations Kathmandu valley solely

consumes large amount of fast food. This is caused because of the huge population of
the valley as well as trend of eating outside in a restaurant. Similarly, this is also
caused by the increasingly younger demographic and rising incomes throughout
Kathmandu valley that have led to lifestyle changes that are influencing consumer
purchases, food, and entertainment choices. Some changes taking place include a
larger professional class along people along with working women, which mean
greater disposable incomes.

3.3 Competitor Analysis

The competition in this arena is the fiercest. Kathmandu is a compact city, but has a
lot to offer. Usually there are a minimum of two to three of restaurant outlets within a
radius of less than 300 meters. For instance, if we talk about Baneswor and
Durbarmarg we can find 3-4 restaurants in the same building. Due to the high volume
of population and limited space in the Kathmandu valley it is quite common. Another
reason is because many retailers do not want to lose sales opportunity, as the
competitors are offering substitutions and similar product categories. This
phenomenon has made Baneswor the best place to eat.
According to the social, economic and social factors in PEST analysis above, various
kind of restaurants march into Tinkune to seize the market, including western-style
fast food, European-style restaurant, Japanese food, Korean food, various Nepali
Cuisines, they all have target customers which enrich the catering industry in
Tinkune, due to the food variety in the catering industry, no restaurants can
monopolize, therefore, competition depends on target customers’ approve, satisfaction
and good impression. Our main competitors in this segment are food outlets within
the 1000 meter radius along the Baneswor Road. In our location, there are Alina’s
bakery café,Rosemary café and Bajeko sekuwa.
Taking these factors into account, our competitors could be replacement and potential
customers:

15
 They also have the same target consumption group which also aims for the high
income people.
 They have their own culture and unique characteristics on the flavor.
 They could be threat to us if there are too close to us.

3.4 Product Positioning

We will set up the position to be top-grade restaurants with healthy, enjoyment and
deep cultural atmosphere. Besides, we will provide unique flavor food and excellent
service. Our target customers are wealthy and high income as well as those affordable
businessmen with high taste. Therefore, we will set the price at a high level, the
environment, atmosphere, service and taste presents mature, exquisite, brilliant, and
elegant culture.

3.5 Key Success Factors

 Keep developing new customers.
 Using Customer-Relationship Management to keep customers.
 Through making advertisements to make the marketing of the products and
brand.
 Build the first-class marketing channel.
 Employ and Train workers effectively and efficiently.
 Establish the excellent learning organization and business culture.
 Establish long-term partnership with suppliers.
 At the mature stage, using expansion strategy and build branch restaurants
nationally.
 No one can make better than we can in terms of taste. Our taste is superior to
others.
 Provide 100% satisfaction to our customers and maintaining the level of
excellent services among other competitors.

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 Chapter 4
Marketing Plan
For the catering industry, marketing is the foundation of development, the restaurant
will use brand marketing. Our strategy is based on serving our markets well. We will
start our first outlet as a "market tester" that could become a model of the expanding
number of outlets in the future. Concentration will be on maintaining quality and
establishing a strong identity in the local market.

A combination of local media along with national media will be utilized. Local media
marketing is most effective, followed by print advertisement. As soon as a
concentration of restaurant is established in a market, then broader media will be
explored. We believe, however, that the best form of advertising is still "buzz." By
providing already established product in the town, with unbeatable quality at an
acceptable price in a clean and friendly outlet, we will be the talk of the town.
Therefore, the execution of our concept is the most critical element of our plan. We
will actively build our brand, through various forms of advertising like paper ad,
visual ad in national television, promotional items and other marketing gimmicks
better than those of other restaurants.

4.1 Pricing Strategy

Our pricing strategy is positioned as "generic", meaning that Rs 200 to Rs 300 per
food item is the average consumer spending for a snack or light lunch in Kathmandu.
Along with it we will be serving flavored flower tea at Rs 80 per cup. Not only this,
we will also be serving various other beverages along with different food items where
the main ingredient would be the flower uses in making the dish.

4.2 Brand Challenges

Floret food zone is not an established brand in Kathmandu but we need to establish a
distinct brand to stand out from the other in Kathmandu Valley.
 Our logo is distinct as fresh, energetic and playful with color elements that are eye
catching.
 Product name is geared toward the target market (working class people), I;e
Floret, and this makes people easy to remember.

17
4.3 Marketing Programs
We will deploy three different marketing tactics to increase customer awareness of
Floret food zone. Our most important tactic will be "word-of-mouth". This will be by
far the cheapest and most effective of our marketing programs because of the high
traffic in targeted Places.

The second tactic will be local marketing. These will be low-budget plans that will
provide community support and awareness of our product. The last marketing effort
will be utilizing national media. This includes visual media as well as paper media.
Although, this will be the mos costly, this tactic is the most effective and huge mass
covering. 
Local Marketing
 Distributing brochures and pamphlets containing our concept and product detail.
 Wall posters.
 Design concept.
 In-store viewing of making food process from making to cooking.
 Standing signage inside malls’ lobby/aisle.
 Grand opening promotion.
 Party catering.

Local Media

 Direct mail piece – containing brochures sent to surrounding addresses.

 Local magazines that target our core customers, such as Free! Magazine.
 Newspaper campaign – placing several large ads throughout the month to aware
our product to the local area.

4.4 Sales Strategy

The sales strategy is to build and open new locations in order to increase revenue.
However, this plan will be implemented when the one "market tester" outlet showed
potential growth. As each individual location will continue to build its local customer
base over the first three years of operation, the goal of each restaurant is to cross the
sales of Rs 15000000 in annual sales, with each outlet to earn about Rs 2000000 per
year.

18
5.4 Strategic Alliances
Our business requires a long relationship with raw suppliers as well as partner
vendors. Which we call business bonding. We will try to maintain loan and good
standing relationship with our flower supplies so as to strengthen our business
relationship.

19
 Chapter 5
Organizational Plan
The initial management team depends on the founder, with little back-up. As we
grow, we will take on additional help and hire certain peoples in certain key areas.
Part of our basic philosophy will be able to run our executive management as a
"knowledge sharing" fellowship. We will not add additional overhead until absolutely
necessary. This will mean that the initial staff support team will have to work extra.
By doing this, we will keep our overhead as low as possible, allowing us to
adequately staff our outlets. This will also allow us and future business partners to
recoup investments as quickly as possible and enjoy a higher return.

At present time, two people Mr. X and Mr. Y will look after all the areas as far as
possible. Others that have helped on the development of this business venture will be
offered an opportunity to grow together with us company at the appropriate time, and
when necessary.

5.1 Management Team

The management team of the restaurant will initially consist of restaurant manager
and a chief chef, the restaurant must need at least 5 years experiences on the
restaurant management and he is in charge of overall management and some other
services such as purchasing, marketing, legal service and so on. The chief chef will be
responsible for the kitchen management such as food making, raw material
purchasing and so on. Except them, we will also employ three helpers, Cashier, bar
tender and security guard. As we expand into multiple locations, each location will
have a primary site manager.

5.2 Organizational Structure

Future organizational structure will include a director who will look after all the
outlets from Kathmandu. He will be responsible for all the activities involved in
running the business. Besides there will be supervisory as well as managerial level. In
the management level there is human resource manager, outlet manager to finance
manager and store manager.
But the Current plan is to have only 15 peoples including outlet manager to security
guard.

20
5.3 Personal Plan
Our initial employees will include one cashier, who will look after cash and keep the
daily records of the transactions. There will be 2 cooks. One will be our head cook of
food zone and other will be his helper. As our head cook has the experience of 18
years in making the product, he will give his best to satisfy the Kathmandu crowd. He
will be in Kathmandu branch for six-month period, and then we will train other staff
to provide the same quality. Similarly, there will be 4 waitors, 2 will be experienced
and rest we will hire based on their knowledge. Same as there will be 2 dishwashers, 2
helpers, one bar tender and two security guards. Each employee will work for 14
hours a day. And the working hour will be 10AM to 10PM. Employees will be given
2 days leave in a month and10 days leave in Dashain and 3 days leave in Tihar.
Similarly, they will be given other holidays looking after the situation and condition
of the business. We will also provide providend fund facility and medical as well as
insurance facility too. Each and every employee will have the life insurance of Rs
500000. In the long run, as we expand our product category and retail outlets, we will
employ more people in the middle management to ensure the focus of our work
smoothly and effectively.
Personnel plan:
Outlet manager: Rs 15000 per month.
Chef: Rs 13000 per month.
Cashier: Rs 10000 per month.
Waiter: Rs 5000 each/ per month.
Bar tender: Rs 7000 per month.
Helpers: Rs 3000 each/per month.
Dishwashers: Rs 5500 each/per month.
Security guard: Rs 7500each/per month.

21
1 Financial Plan

Initial Sources and Uses of Funds

Sources of Fund  
Equity 4,000,000
Long term debt 3,000,000
Total sources of fund 7,000,000
   
Uses of fund  
Furniture 1,400,000
Utensils 800,000
Machinery 1,400,000
Inventory 500,000
Total uses of fund 4,100,000
Cash in hand 2,900,000

Uses of Funds at the beginning of 3rd

year

Sources of Fund
Equity 4,500,000
Long term debt 3,000,000
Total additional cash 7,500,000

Uses of fund
Furniture 1,800,000
Utensils 1,000,000
Machinery 1,900,000
Additional Inventory 600,000
Total uses of fund 5,300,000
Surplus Cash 2,200,000

22
 Income Statement
Year
Particulars 2011 2012 2013 2014 2015
Sales 18,000,00 19,800,00 29,700,00 32,670,00 35,937,000
0 0 0 0
Less: Cost of goods sold 9,000,000 9,900,000 14,850,00 16,335,00 17,968,500
0 0
Gross Margin 9,000,000 9,900,000 14,850,00 16,335,00 17,968,500
0 0
Less: Other expenses
Rent 1,200,000 1,320,000 2,904,000 3,194,400 3,513,840
Marketing Expenses 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100
Staff Expenses 1,440,000 1,584,000 3,484,800 3,833,280 4,216,608
Utilities 240,000 264,000 528,000 580,800 638,880
Repairs and 100,000 110,000 242,000 266,200 292,820
maintenance
Interior Decorations 1,000,000 1,000,000
Miscellaneous 200,000 200,000 200,000 200,000 200,000
EBDIT 3,820,000 5,322,000 5,281,200 6,929,320 7,642,252
Less: Depreciation 540,000 540,000 1,245,000 1,245,000 1,245,000
EBIT 3,280,000 4,782,000 4,036,200 5,684,320 6,397,252
Less: Interest expense 480,000 410,204 809,240 645,526 455,618
EBT 2,800,000 4,371,796 3,226,960 5,038,794 5,941,634
Less: Tax (25%) 700,000 1,092,949 806,740 1,259,698 1,485,409
Net Income 2,100,000 3,278,847 2,420,220 3,779,095 4,456,226

Balance Sheet
2011 2012 2013 2014 2015
Assets
Current Assets
Cash 3,483,7 3,872,6 6,684,94 7,165,47 7,528,27
74 36 5 8 1
Accounts 180,000 198,000 297,000 326,700 359,370
Receivable
Inventory 500,000 500,000 1,100,00 1,100,00 1,100,00
0 0 0
Total Current Assets 4,163,7 4,570,6 8,081,94 8,592,17 8,987,64
74 36 5 8 1
Long term Assets
Furniture 1,400,0 1,400,0 3,200,00 3,200,00 3,200,00
00 00 0 0 0
Utensils 800,000 800,000 1,800,00 1,800,00 1,800,00
0 0 0
Machinery 1,400,0 1,400,0 3,300,00 3,300,00 3,300,00
00 00 0 0 0
Less: Accumulated 540,000 1,080,0 2,325,00 3,570,00 4,815,00
Depreciation 00 0 0 0
Total Long term Assets 3,060,0 2,520,0 5,975,00 4,730,00 3,485,00

23
 00 00 0 0 0
Total Assets 7,223,7 7,090,6 14,056,9 13,322,1 12,472,6
74 36 45 78 41

Capital and Liabilities

Current Liabilities
Accounts Payable 450,000 495,000 742,500 816,750 898,425
Total Current Liabilities 450,000 495,000 742,500 816,750 898,425
Long term Liabilities
Long term loan 2,563,7 2,057,7 4,034,53 2,847,61 1,470,76
74 51 8 2 5
Total long term loan 2,563,7 2,057,7 4,034,53 2,847,61 1,470,76
74 51 8 2 5
Capital
Shareholders’ equity 4,000,0 4,000,0 8,500,00 8,500,00 8,500,00
00 00 0 0 0
Retained Earnings 210,000 537,885 779,907 1,157,81 1,603,43
6 9
Total Capital 4,210,0 4,537,8 9,279,90 9,657,81 10,103,4
00 85 7 6 39
Total Capital and 7,223,7 7,090,6 14,056,9 13,322,1 12,472,6
Liabilities 74 36 45 78 29

Cash Flow Statement

2011 2012 2013 2014 2015
Beginning Cash 2,900,00 3,483,77 6,072,63 6,684,94 7,165,47
Balance 0 4 6 5 8
Cash Inflows
Sales 18,000,0 19,800,0 29,700,0 32,670,0 35,937,0
00 00 00 00 00
Less: Accounts 180,000 198,000 297,000 326,700 359,370
Receivable
Total Cash Inflow 17,820,0 19,782,0 29,601,0 32,640,3 35,904,3
00 00 00 00 30
Total Cash Available 20,720,0 23,265,7 35,673,6 39,325,2 43,069,8
00 74 36 45 08

Cash Outflows
Cost of goods sold 9,000,00 9,900,00 14,850,0 16,335,0 17,968,5
0 0 00 00 00
Less: Accounts 450,000 495,000 742,500 816,750 898,425
payable
Cash outflow on 8,550,00 9,855,00 14,602,5 16,260,7 17,886,8
COGS 0 0 00 50 25
Rent 1,200,00 1,320,00 2,904,00 3,194,40 3,513,84
0 0 0 0 0
Marketing Expenses 1,000,00 1,100,00 1,210,00 1,331,00 1,464,10
0 0 0 0 0

24
Staff Expenses 1,440,00 1,584,00 3,484,80 3,833,28 4,216,60
0 0 0 0 8
Utilities 240,000 264,000 528,000 580,800 638,880
Repairs and 100,000 110,000 242,000 266,200 292,820
maintenance
Interior Designing 1,000,00 1,000,00
0 0
Miscellaneous 200,000 200,000 200,000 200,000 200,000
Expenses
Loan Paid 916,226 916,226 1,832,45 1,832,45 1,832,45
3 3 3
Taxes paid 700,000 1,092,94 806,740 1,259,69 1,485,40
9 8 9
Drawings 1,890,00 2,950,96 2,178,19 3,401,18 4,010,60
0 2 8 6 3
Total Cash Outflow 17,236,2 19,393,1 28,988,6 32,159,7 35,541,5
26 38 91 67 37
Ending Cash Balance 3,483,77 3,872,63 6,684,94 7,165,47 7,528,27
4 6 5 8 1

Beginning Principal 3,000,000

Interest Rate 16%
PVIFA of 16% for 5 yrs 3.27
Annual Loan Payment 916,226

Loan Payment
Schedule
Year Beginning Amount Interest Principa Ending
Principal Paid Expen l Princip
se Paid al
2011 3,000,000 916,226 480,000 436,226 2,563,774
2012 2,563,774 916,226 410,204 506,023 2,057,751
2013 2,057,751 916,226 329,240 586,986 1,470,765
2014 1,470,765 916,226 235,322 680,904 789,861
2015 789,861 916,226 126,378 789,849 12

Loan Payment
Schedule

Year Beginning Amount Interest Principa Ending

Principal Paid Expen l Princip
se Paid al
2013 3,000,000 916,226 480,000 436,226 2,563,774
2014 2,563,774 916,226 410,204 506,023 2,057,751
2015 2,057,751 916,226 329,240 586,986 1,470,765
2016 1,470,765 916,226 235,322 680,904 789,861
2017 789,861 916,226 126,378 789,849 12

25
Critical risks and contingencies:

When we talk about opening up the new venture it is not an easy job. For the smooth
operation of the business everything need to be in perfect condition. When we talk
about our venture then definitely it is not an easy. Bringing raw material “flower”
from different places may not be as easy as we think. The risk factor associated with it
will be political instability. When there is no smooth operation of the government then
different groups and forums will open up in no time. Threat from those peoples along
with local gangsters for money can be a risk factor for us.

26
Appendix Questionnaire

Characteristics and function of Flowers

Characteristic Function
Plum blossom It against freezing and Used for making sweetmeat, and
blossom greatly in early some refreshing tea and
spring. beverage.
Rose It enjoys sunlight and It gives people a fresh feeling.
against cold.
Chinese Rose It enjoys sunlight, has a good
For activating blood
drainage function. circulation and eliminating
stasis.
Peony It enjoys cold and dry. Make alcohol. Can be used in
Cannot bear wet. many dishes.
Honeysuckle Its color can change. Can be used to make tea and
beverage ,and snacks.
Jasmine It enjoys sunlight, warm and Used for making alcohol and
wet. It dislikes shadow many other tasty food.
Lotus Grow in the water. It All parts could be used for
enjoys wet and hates dry. making dishes.
Lily It is very bright. Give It is nutritive. It can be used to
people good taste when make sweet food.
making food.
Chrysanthemum It likes cool and against For hot pot, the tip is tender
cold. when making food.

27