BUSINESS PLAN ON SEKUWA AND BHANSA GHAR

Submitted to
Dr Khagendra Prashad Ojha

Submitted by
1.Kavita Joshi
2.Minakashi Pathak
3.Kalpana Parajuli
4.Muna Baral

Executive Summary:
The business plan entitled Sekuwa N Bhansa Ghar is going to be carried out as a partial fulfillment of
course Business Plan Development at Uniglobe College, Pokhara University.
Among the Nepalese people the trend of eating in a restaurant is becoming more popular. Restaurant
business is booming a lot in todays context. In Nepal Nepali Thali and Sekuwa is one of the famous
foods. Nepali Thali is the main course of food in the daily lives of Neplease people, and meat is one of
the top most consumed foods in Nepal and the whole world. In Nepal peoples spend about 5% on meat
products and Nepal stands second most meat consuming nation in south Asia.
Company Profile
Name: Sekuwa N Bhansa Ghar
Address: Main Road, Dhangadhi
Sekuwa N Bhansa Ghar (SNB) is going to be operating at Dhangadi. The main target is to serve peoples
of dhangadhi, as the city is growing and peoples are looking for new and quality food restaurant with
pleasant ambiance these days, The city has grown in recent years and peoples outdoor food habits is in
increasing trend. The venture will be established with the investment of 22 lakhs. The main focus is to
satisfy the customer and provide the service as per their demand. The main objective of our business is to
give excellent services in Dhangadhi area that distinguishes it from the rest.
Product and services that are served by the SNB are categorized in two ways. The restaurant will be
primarily focusing on Sekuwa, Nepali Thali and beverage, as secondary product it will also serve fast
food, soft-drinks and the service feature itself to the customers. As per the market analysis we found that
main road area closure to Bus Park of dhangadhi is feasible for the opening of the business like this. The
population of this area is in increasing trend. Similarly this area has number of colleges, offices,
organization and is the main business center of this region. Dhangadhi is one of custom point in Nepal,
So large number of business men from within the country and India visit the place frequently.

Chapter 1: Introduction
1.1 Background of the SNB Restaurant
Restaurant business is booming a lot in todays context and the trend for eating in a restaurant is
becoming more popular among the Nepalese people. Usually restaurant are mean to have quality time
with family, friends, colleagues and many major events like weddings, birthday etc. There are about more
than 30 restaurants in the Dhangadhi and this has created the intense competition from the restaurant
business. However, it cannot be assured that every restaurant satisfy the customers.
The main focus is to satisfy the customer and provide the service as per their demand. As the main
product SNB will be focusing on Sekuwa, Nepali Thali and beverages. The layout of the restaurant will
be designed on such a way that pleases the eyes of customers and makes them feel relaxed and happy. We
will focus on our layout and our two main products as to differentiate from other and attract the
customers. SNB staffs will be customers friendly so to create the good image the staff will greet the
customers as they entered, Food will be served at minimal time as the customer ordered the items so that
they dont have to wait for long time.
We believe on best quality, so food served in SNB is hygienic and healthy. We do not compromise on
quality. SNB will facilitate its delivery services to the major organization located at Dhangadhi.
Similarly for the customer convenience there will be waiting lounge and rest room too. SNB is targeting
the people of all age group and is the proper place to spend good time. The main objective of our
business is to give excellent services in Dhangadhi area that distinguishes it from the rest.

1.2 Vision
The visions that guide the SNB are:

To provide quality and delicious healthy food as per customer need.

To standout in the market by offering unique food service in terms of various forms of service.

To get hold of profitable market share.

To expand our food chain within Regional.

1.3Mission Statement
Our companys overall proceedings will be directed towards achieving the following

mission:

Reach out to the customers by providing quality food services to fulfill their needs thereby obtaining
sustainable growth and profit margin by mobilizing all the resources effectively.

1.4Objectives
To provide high quality food
To provide customer friendly environment
To gain maximum market share within five years(approx. 10% market share)
To maximize profit and minimize cost
To increase the branches within region
To leave a remarkable quality service image on peoples mind.

Chapter 2
Marketing Plan
2.1 Products and services:
Sekuwa N BhansaGhar will mainly be focusing on high quality and hygienic food. Our menu will
include almost all food that is being demanded by todays people. It will be serving sekuwa, Nepali Thali
and beverages as the main product. The restaurant will also be focusing on beverages as people love to
have it with meat. It will also be serving fast foods like momo, chowmein, burger, Pizza etc. The foods
will be delivered as per the instruction and delivered as soon as possible. The drinks that will be served
are beer, whiskey, Rum, Vodka, Wine and soft drinks like coke, Fanta, Milk Shake, lassi etc.
Main Course:
Nepali Thali
It will contain food items like rice, dal, two types of seasonable curry, green vegetable (sag), meat items
either chicken or mutton, pickle, papad, green salad etc. It will also include roti (chapatti) as it is also a
main course of thali in terai region.
Sekuwa Item
It will be serving mutton and chicken sekuwa, in chicken it will be serving the wings and leg pieces. The
sekuwa will be rosted in coal. It will also be serving sekuwa in set which include food items like
bhuja/chura, Pickel(Achar), SedakoBhatmas etc.
Beverages:
It will be serving soft and hard dinks in this section.
Table 1: Menu items

Particular
Nepali Thali
Non veg
Chicken
Mutton
Veg

price

150
180
100

Other Food course

Items
Soups
Burger
Momo
Pizza
Sandwich
Chowmein
Fried Rice
Spring Roll
Thukpa
Chicken Chilly
Chips chilly
Pullan/Biryani
Naan/Roti

Drinks

Price Range
70-80
Cold
Beverages
75-105
Coke,Fanta,sprite,soda
Real90-115
juice
125-135
Banana Lassi
Milk80-145
Shake
80-110
Cold Coffee
55-115
Thanda
Shake
95-130
BadamPista Shake
80-110
Peanut
Butter Shake
120-140
Ice Milk Shake
Red70-80
Bull
120-185
Hot Beverages
Tea 10-55
B/M

Price
40
40
50
50
60
60
60
55
70
70
25
35
25
25
55

Coffee B/M
Lemon Tea
Hot lemon
Hot lemon with honey
Beer
Touborg
Carlsberg
Nepal Ice
Hard Drinks
Royal Stag
Signature
Vodka
Bagpiper
Rum
Wine

250
280
200
60ml
120
130
120
110
110

Qrt
350
360
350
330
330

half
630
730
630
620
620

Full
1200
1350
1200
1150
1150

2.1.1 Service Features

There will be two ways a customer can get food. They may sit at restaurant and get full service from a
waitperson. Delivery will be available at certain times and to a limited area. Other services are as follows

Free WI-Fi area

Waiting lounge

2.2Dhangadhi as market:
Dhangadhi is a city in Far-Western Development of Nepal bordering India. It is the capital of Kailali
District in the province of Seti. Located in the Far Western Region of Nepal on the border of India, the
city of Dhangadhi is one of the entry points into the country for people traveling from India. It was
established in 2033 B.S and is divided into 14 wards.
Dhangadhi is the main business centre of the Seti Zone. Dhangadhi is the major business hub for Far
Western Region of Nepal and is the major provider of education, health and employment opportunities in
the west Nepal.

2.3 Target customers:

As the target customer the restaurant will be business peoples, families, travelers, local peoples, internal
and external tourists, Indians business men, Nepalese Indian army, staff of bus and trucks.
Market location and customers
Main Road near bus park area is one of the most desirable retail location and one of the best business
areas of the town. The different customer base will come from different segments like:

Local population

Colleges students

Tourism

Business and offices

Business Man

Nepalese Indian army

Transport staffs

2.4

Competitors:

Every business in the todays context face intense competition so does the restaurant business as there are
number of restaurant booming frequently. However, we can put effort on providing better service from
our side in order to increase the number of customer. The main competitors of SNB Restaurant are
small local hotels and some restaurants like Tharu Cottage, Bells Caf, Hotel Devoti and Hotel Rubus
etc.
2.4.1 Intensity

of rivalry:

There is a huge competition of restaurant business in the market and there are number of restaurant that
are running and everyone is doing well on their business. So to exit in such market is not an easy task.
Every tries to provide better and quality service and tries to satisfy the customer however we will
maintain friendly environment to the customers which people seeks a lot. Different innovation can be
updated in near future.

2.4.2 Threat of new entrants:

The threats of new entrants are high, as capital requirements is not so high, but due to low level of
differentiation possible it can act as barrier to entry. The customer usually faces the low switching cost.

2.4.3 Threats of substitute products

The threat of substitute can be taken in both ways. It can be high or not that high. The people who want to
go to the restaurant may not weight against the substitutes. But if the average income of people is low
they may tend to spend low so in such cases they can prefer to visit the places where they can get the
food at minimal prices like mini hotels. Similarly these days foods can be get at readymade form in
supermarket so for easiness people may prefer them. Hence, frozen food available at market can be risk.

2.4.4 Bargaining power of customer

The bargaining power at the restaurant will be very high because there are number of competitors in the
market hence switching cost is low.

2.4.5 Bargaining power of supplier

Since there are number of suppliers in the market for any item that are needed for restaurant business like
grocery item, fresh vegetables, fruits, kitchen ware and many more. Hence the bargaining power of the
suppliers is low.

2.5

Promotional strategies:

The advertisements will include socialmedia(facebook,twitter),local newspapers, pamphlets, local

television channel and local fm.

2.6

Pricing strategies:

Price is the only factor that gives us revenue. We plan to price the products at a price that will let us
pay off what is spent and make a reasonable profit. During the opening month, the prices will be
slightly lower than that of the competitors.If the flow of the business is relatively good, then the
prices will be slightly higher compared to those of the competitors. The pricing will really be
determined on what have been spent in making the product, and also to make a reasonable profit.

2.7 Company strategies:

The primary goal of SNB Restaurant is to provide products and services that will fulfill the need and
desire of customers in a way that is convenient, easily accessible and financially acceptable to the
customer. Along with this primary goal we aim to increase our sales by every year as compare to the base
year. Thus our company strategies will revolve around these goals.

2.7.1 Pay Attention to the Quality of the Customer Experience

Many restaurateurs are focused on the quality of the experience their customers have when they come to
their establishments. This basically means the quality of the food, service, and overall level of hospitality.
By providing a satisfying and enjoyable experience, restaurant owners are giving their customers the
opportunity to break away from all the economic and social dreariness currently consuming the world.

2.7.2 Hire the Right Restaurant Staff and Keep Them Motivated
One of the most important factors in the customer experience is the level of service the customer
receives. This translates into having qualified and courteous staff on hand. An effective restaurant
manager will also look for ways to keep employees happy and motivated by setting in place performance
measurements and incentives and actively seeking employee feedback.

2.7.3 Create the Perception of Value at the Restaurant

One successful strategy used by restaurant owners is to focus on their customers' perception of value. But
communicating to customers that they are getting a good value (in terms of food quality, portioning, or
ambiance) while at the same time not cheapening the perception of the business is actually a delicate
balancing act that requires sound pricing strategy, menu planning, and marketing.

2.7.4 Use the Internet to Advertise the Restaurant

The Internet can be an effective and often cheap means of advertising a small business, and many
successful restaurant owners are taking full advantage of this medium.

2.8 Major marketing risks:

Insufficient capital.
Difficult to find highly paid customers.
There may be technical problems as well as operating problems such as delay from suppliers for
raw materials, breakdown of furniture and kitchenware, change in the layout, hiring and firing of
staff and many more.

Mitigating risks:

Identify the nature and importance of various sources in the market that might cause
you
to earn lower profits.

Up to dates with competitors price.

Focus on hospitality service.

2.9 SWOT Analysis of Sekuwa and Bhansa Ghar

Strength

Specialized in its main course that is sekuwa and Nepali Thali

Varieties of food item in single premise.

Facility for proper and safe parking
Good layout

Weaknesses

Lack of experience

Quality Manpower

New in the market

Low focus on other food item

Opportunities

Scope for growth as restaurant culture is prospering in Dhangadhi

Increasing trend in demand food products

Changing life style of people

First standard restaurant focusing this product

Threats

Number of existing restaurants can create tough competition

People can copy the business and operate

Environmental uncertainty.

2.10 Marketing mix:

2.10.1 Product
Our product is healthy, hygienic, moderate priced food items that include Sekuwa, Nepali Thali and
beverages as the main product, while it will also be serving Nepali, Indian and Chinese cuisines. There
will be many ways this product will be served to the customers and the target customers.

Direct delivery at specific locations

Catering services at parties, gatherings, functions

Contract with business houses, offices and institutes for any food items
Similarly catering services will be provided on demand on orders coming either the telephone or fax. The
menu would depend on the customers choice and amount he/she is willing to spend. Our primary focus
is the production of food, which would appeal to working middle class and upper middle class group. Our
products would consist of different varieties of food that could be bought in moderate prices.

The major attributes of our product and service would are:

Ability to reach to the target market.

Convenience to customers.

Ability to reach different potential market through various forms of service.

2.10.2 Price

Our price will be based on cost plus method

The menu prices of food, catering services shall be set to match our expected profit.

2.10.3 Place
The SNB Restaurant will be located at dhangadhi, bus park area. I have selected this placebecause this
place is growing a lot in the field of business. In this area there are
many commercial banks, school, colleges, and shops. This area is crowded with Indian

tourist and

business man, business man coming from all the part of regional area. Being near to Bus Park we will be
expecting lots of travelers to come to our restaurant.
2.10.4 Promotion

For the first year of operation we will focus on exposure of our business through to the public through
various promotional measures.

We would advertise in local media such as Ghoda Ghodi FM, Dinesh FM and scrolling messages in the
TV.

We plan to distribute pamphlets and brouchers once a month.

Direct selling at our market area would also contribute to the promotion

Hording board at main chowk cauraha, LN chowk and Hospital chowk.

Table 2: Marketing Budget

Media name
Dinesh

&

Schedule

Cost per advertising

Ghoda 40sec, twice a week, for Rs. 300

Ghodi FM

one year

Pamplates

Personal distribution, once Rs 2000

a month for first year

Cost per year

Rs 30,000

Rs. 24,000

Hording board

Throughout year

Total yearly cost

Rs. 46,000
Rs. 100,000

2.11 Sales forcaste:

From the survey we conclude that around 200 customers visit the restaurant. Hence in this report the
average customer that the SNB will be estimating is around is 150 per day in the first year. However, the
sale that has been forecasted in this report is on the basis of the number of item customers consumed per
day.

Table 3: Sales forecast

Period
Year 1
Year 2
Year 3
Year 4
Year 5

Sales
Revenue
8,859,750.
00
9,745,725.
00
11,899,530
.23
14,529,326
.40
17,740,307
.54

CHAPTER 3:
Operational plan:
3.1 Procurement
For the necessary raw material we will be dealing with different suppliers. It will be checked on daily
basis and in case of any needed material we will contact related supplier and they will be supplying to us
as soon as possible.
Vegetable item supplied by: Vegetables market (haat bazaar)
Meat supplied by: Local Vendor
Table 4: Sources of equipment

Equipment types
Electrical equipment

Sources
Mayaz computers, Main Road, S.K electronics, LN

Kitchen Appliances
Furniture

chowk
From India
Raja Ram Furniture, chauraha

3.2 Layout design

The layout of the restaurant will be designed in such a way so as to increase the efficiency, ease,
maximizing revenues and reducing costs. The design is made keeping the customer needs and
preferences in mind. The only area where we are differentiating our restaurant is in the layout itself. We
will create such warm atmosphere that will bring customers time and again. There will be tables and
cushion setting arrangement to the customers. Ground setting arrangements will cover major portion of
the restaurant, and few chair and couch setting arrangement will be made for customer who are
uncomfortable setting on the ground. The setting arrangements will be made in such a way that customer
get comfort an there is no harm in the flow of work. Proper space will between each sit so that there is
no disturbance to other customers.

3.3 Human resource Planning

Every business house needs the right kind of staff in order to increase the productivity. Hence it is very
important task to assign right person at the right place at the right time. The success of any business
depends on the staff they hold and their day to day performance. We focus on employing deserving staff
as per the task and this help to build the image we want to create and deliver.
Table 5: Salary sheet

Designation

Number

Salary per Total

month

Manager
Cook
Helper
Waiter
Dish Washer
Cashier/Accountant
Store Keeper
Gatekeeper
Total

1
3
2
5
2
1
1
1
16

15,000.00
12,000.00
6,000.00
6,000.00
3,000.00
8,500.00
8,500.00
3,500.00

15,000.00
36,000.00
12,000.00
30,000.00
6,000.00
8,500.00
8,500.00
3,500.00
119,500.00

3.4Organization Structure
The company runs in a participatory management process. The employees and the owners of the
company are free to give advices or suggestions. In the decision making process, the final decision will
be taken with the collective consent of the employees and owner.
Figure 1: Organization Structure

Manager

Chef

Accounta
nt

Cook

Store Keeper

Cashier

Helper

Waiter

Dishwash
er

Cleaner

3.5 Location
The SNB will be located at main road (near buspark) Dhangadhi.we have selected this place because this
place is growing a lot in the field of business. In this area there are many commercial banks, school, and
colleges, private and international organizations. The place is of students, shoppers, professionals and
business man and visitors. This area is also crowded with internal and Indian tourists. Since the place is
near Buspark peoples going and coming from Dhangadhi will be attracted by this restaurant. Hence this
can be potential market from tourism point of view. Similarly this area is near to residential area. So our
restaurant will be suitable and accessible by all the people who want to spend their quality time in
friendly environment. The place also has ample parking space.

3.6Quality Management
Restaurants are in the business of serving food to their customers. The quality of the food and service is
defined as meeting or exceeding the expectations of the customer as if promised by the restaurant. The

food should be properly prepared and the service should be prompt and courteous. The benefit of quality
food and service is that customers will come back and will recommend the restaurant to friends.
Quality of food
There is artistry in the preparation of food. Some food can be prepared to be delicious, while another
recipe can make a dish that is repugnant. But note that taste of the food is not the quality of the food.
Fulfills specifications
The quality of a product is defined as whether it fulfills its stated and implied specifications. The
customer expects the food to be what is promised on the menu, to be cooked and prepared properly, to be
clean and to have the correct flavor. That is considered quality food.
Consistent
The quality of the food will be consistent every time and we need to assure that to the customers
Quality of service
We will focus on quality service. Not only are people buying a meal in a restaurant, but they are also
paying for a certain leve
Friendly service We assure to provide the friendly service like waiters and waitresses not only friendly,
but they are also entertaining. They might come up to your table and sing a song or play a musical
instrument. The novelty of the extra service could bring in mor

Chapter 4:
Financial plan:
This section deals with estimated total project costs and estimated operating income and expenditure and
the financial position of the business for the five years.
Table 6: Initial capital requirement
Per operating expenses
registration
Set up
Other
Total pre operating
expenses
fixed assets
gas stove
gas cylinder
oven
refrigerator/freezer
utensils
crockeries
Furnitures
Flooring and Curtains
Decorations, lamps and
vases
PC
Receipts printer
AC
telephone
and
other
equipment
TV
DVD set & Speakers
Invertors
Total fixed Assets
current assets
stock
cash in hand
total

RS.
15,000
100,000
20,000
135,000
30,000
20,000
40,000
150,000
70,000
100,000
500,000
100,000
100,000
40,000
20,000
100,000
20,000
100,000
60,000
100,000
1,550,000
200,000
315,000
2,200,000

Form of ownership
SNB Restaurant will be registered under the name of SNB Restaurant. The entire amount will be invested
by kavita, Kalpana, minakshi and muna and will be the partnership of the company.

Table 7 Operating
Expenses
Particulars

Year 1
1,434,000.0
0

Year 2
1,434,000.0
0

Year 3
1,577,400.0
0

Year 4
1,577,400.0
0

Year 5
1,577,400.0
0

Dashain Allowance

119,500.00

119,500.00

131,450.00

131,450.00

131,450.00

Dress Allowance

112,000.00

112,000.00

112,000.00

112,000.00

112,000.00

Advertisement
Rent

100,000.00
240,000.00

100,000.00
264,000.00

80,000.00
290,400.00

64,000.00
319,440.00

51,200.00
351,384.00

Depreciation

367,500.00

262,500.00

250,700.00

191,315.63

196,319.19

Electricity

60,000.00

63,000.00

66,150.00

69,457.00

72,950.00

Fuel and Gas

100,000.00

110,000.00

121,000.00

133,100.00

146,410.00

Telephone Expenses

36,000.00

37,800.00

39,690.00

41,700.00

43,800.00

Cleaning expenses

40,000.00

42,000.00

44,100.00

46,305.00

48,620.00

Internet
Miscellaneous
Expenses
Transportation
Expenses
Repair
Maintenance
Magazine
newspaper

15,000.00

15,000.00

15,000.00

15,000.00

15,000.00

40,000.00

42,000.00

44,100.00

46,305.00

48,620.00

60,000.00

63,000.00

66,150.00

69,458.00

72,931.00

60,000.00

63,000.00

66,150.00

69,458.00

72,931.00

20,000.00

21,000.00

22,050.00

23,153.00

24,311.00

60,000.00

60,000.00

60,000.00

60,000.00

60,000.00

Salaries

and
and

Audit Fee Expenses

Total

2,864,000
.00

2,808,800
.00

2,986,340.
00

2,969,541 3,025,326.
.63
19

Assumption made on the overhead expenses

Salaries will be constant for 2 years and there will be increment of 10% on the 3 rd and again
remain constant till 5th year.

Dashain allowance is one month of salary distributed yearly

Rent is on the contract basis i.e. 30 thousand for the first years and will increase @10% on
further succeeding years.

Expenses like electricity, water charges etc. will increase by 5% every year

Other expenses like internet, dress allowance are kept constant.

Depreciation for fixed assets is depreciated by 25% & 15% annually on Diminishing margin
method basis

Table 7: Income Statement

Particulars
Sales Revenue
Less: Cost of goods sold
Gross Profit

Year 1

Year 2

Year 3

Year 4

Year 5

8,859,750.0
0
5,082,375.0
0
3,777,375.0
0

9,745,725.0
0
6,205,579.8
8
3,540,145.1
2

11,899,530.2
3
7,577,013.0
3
4,322,517.2
0

14,529,326.
40
9,251,532.9
1
5,277,793.4
9

17,740,307.
54
11,296,121.6
8
6,444,185.8
6

Less:Operating expenses

2,864,000.0 2,808,800.0 2,986,340.0 2,969,541.6 3,025,326.1

0
0
0
3
9

Less: amortization

27,000.00

27,000.00

27,000.00

27,000.00

27,000.00

886,375.00

704,345.12

1,309,177.2
0

2,281,251.8
7

3,391,859.6
7

less: Interest Expenses

80,000.00

80,000.00

80,000.00

80,000.00

80,000.00

Net Profit Before Tax

806,375.00

624,345.12

1,229,177.2
0

2,201,251.8
7

3,311,859.67

Less:
@25%

201,593.75

156,086.28

307,294.30

550,312.97

827,964.92

604,781.25

468,258.84

921,882.90

1,650,938.9
0

2,483,894.7
5

Net
Profit
Interest &Tax

Tax

Before

expenses

Net Profit

The restaurant is expected to generate sufficient revenue to meet all its costs, and make Rs 604,781.25 net
income in the first year of operation. The organization is expected to have less profit in second year due
to high cost of goods sold.
Assumption:

Tax rate is assumed to be 25% for five years

The sales are expected to be increased by 10% each year

The Interest rate assumed to be 10% per years

The costs of raw materials are assumed to be increased by 10 % each year.

Cost of raw materials and are expected to go up by 11% to meet the annual inflation.

The price of the goods sold are expected to be same for first two year but will increase 11%
annually to meet inflation from the third year onwards
Table 9: Cash Flow statement

Particulars
opening
cash
balance
(A) Cash Flow
from Operating
Activities:
net profit
Increase/decrease
in current assets
(Inventory)
Add:
Adjustments
Depreciation
Amortization
Net cash flow
from Operating
Activities
(B) Cash Flow
from Investing
Activities:
Fixed
Assets
Purchase
pre
operating
expenses
Net Cash Flow
from Investing
Activities
(C) Cash Flow
from Financing
Activities:
Increase
/
(Decrease)
in
Share Capital
Increase in long
term debt

Year 0

Year 1

Year 2

Year 3

Year 4

Year 5

535,000.00

850,456.25

1,213,608.02

1,453,684.60

1,977,988.01

604,781.25

468,258.84

921,882.90

1,650,938.90

2,483,894.75

-200,000.00

-20,000.00

-22,000.00

-24,200.00

-26,620.00

367,500.00
27,000.00

262,500.00
27,000.00

250,700.00
27,000.00

191,315.63
27,000.00

196,319.19
27,000.00

799,281.25

737,758.84

1,177,582.90

1,845,054.53

2,680,593.94

1,530,000.0
0

-200,000.00

-200,000.00

135,000.00
1,665,000.0
0

-200,000.00

-200,000.00

483,825.0
0

374,607.07

737,506.3
2

1,320,751.
12

1,987,115.
80

-483,825.00

374,607.0
7

-737,506.32

1,320,751.12

-1,987,115.80

315,456.25

363,151.77

240,076.58

524,303.41

493,478.14

850,456.25

1,213,608.02

1,453,684.60

1,977,988.01

2,471,466.15

1,400,000.0
0
8,00,000

Dividend
payment
Net Cash Flow
from financing
Activities
Net Cash Flow
(A+B+C)
Closing Cash &
535,000.00
Bank Balances

Assumption

Dividend is distributed on about 80% of the net profit, where remaining 20% will be kept in the
business.

Inventories will be kept for 15 days stock and will be increasing by 10% and 11% each year to
meet the annual inflation and sales growth.

New assets will be added at 3rd and 5th year amounting Rs 200,000.00

Table10: Balance sheet

Particulars

Year 0

Capital and
Liabilities:
Shareholder
Fund
Share
1,400,000.0
Capital
0
long
term
800,000.00
debt
Retained
Earning
2,200,000.0
Total
0
Assets
1,530,000.0
Fixed Assets
0
Current
Assets,
Advances
and
Deposits
Inventories
pre operating
135,000.00
expenses
Advances
and Deposits
Cash
and
Bank
535,000.00
Balances
2,200,000.0
Total
0

Year 1

Year 2

Year 3

Year 4

Year 5

1,400,000.0
0

1,400,000.0
0

1,400,000.0
0

1,400,000.0
0

1,400,000.0
0

800,000.00

800,000.00

800,000.00

800,000.00

800,000.00

120,956.25

214,608.02

398,984.60

729,172.38

2,320,956.2
5

2,414,608.0
2

2,598,984.6
0

2,929,172.3
8

1,225,951.3
3
3,425,951.3
3

1,162,500.
00

900,000.0
0

849,300.0
0

657,984.3
8

661,665.1
9

200,000.00

220,000.00

242,000.00

266,200.00

292,820.00

108,000.00

81,000.00

54,000.00

27,000.00

850,456.25

1,213,608.0
2

1,453,684.6
0

1,977,988.0
1

2,471,466.1
5

2,320,956.2
5

2,414,608.0
2

2,598,984.6
0

2,929,172.3
9

3,425,951.3
4

Table 11: Net Present value calculation

NPV
Year 0
Year 1
Year 2
Year 3
Year 4
Year 5

CFAT
2,200,000
.00
604,781.2
5
468,258.8
4
921,882.9
0
1,650,938
.90
2,483,894
.75

0.91
0.83
0.75
0.68
0.62

Total
NPV

PV

550,350.9
4
388,654.8
4
691,412.1
8
1,122,638
.45
1,540,014
.75
4,293,071
.15
2,093,071
.15

Table 12: Ratios

Ratios

Year 1

Year 2

Year 3

Year 4

Year 5

0.068

0.048

0.077

0.11

0.14

Debt ratio

0.34

0.33

0.31

0.27

0.23

ROA
ROE

0.26
0.34

0.19
0.26

0.35
0.53

0.56
0.94

0.72
1.42

contribution
margin

1,467,87
5.00

1,180,84
5.13

1,773,87
7.20

2,686,56
7.50

3,802,17
8.86

BEP in Sales

3,509,797
.92

3,932,639
.31

3,117,302
.43

2,192,002
.63

1,914,478
.21

Net
Ratio

Profit

The return the company will get after mobilizing its total assets is 28 % in year 1 while it will increased
to 73% in fifth year. The return that the equity holder will get by investing their money in this business
will be 28% in first year and it will increase to 73% in fifth year. The time that it takes the business to
recoup the cost of the investment is 2.59 years.

CHAPTER 5
Summary and conclusion:
Among the Nepalese people the trend of eating in a restaurant is becoming more popular. Restaurant
business is booming a lot in todays context. There are more than 30 restaurants in dhangadhi so it has
created a huge competition. The main competitors are Top in town, Bells Cafe, Tharu cottage and many
more. The main competitors are Top in town, Bells Cafe, Tharu cottage and many more.
The company follows different strategy like sales, pricing and promotion. However, the main aim is to
provide best service and win the market. The raw material needed by the restaurant will be provided
from different suppliers and wholesaler. The main focus is made on the layout design to attract the
customer. SNB will have 16 staffs member all being capable of doing assigned task initially and increase
the number of staffs as the demand goes high. SNB will have capacity of serving 70 customers at a time
and will follow various major for quality management.
Our product is healthy, hygienic, moderate priced food items that include Sekuwa, Nepali Thali and
Beverage as main product, while will also be serving Nepali, Indian and Chinese cuisines. Price will be
based on cost plus method. Promotion will be done through advertisement on TV, magazine, hoarding
board and will be distributing pamphlets and brouchers too.
The net profit on the first year will be of Rs 604,781.25 and the cash flow of 850,456.25.
Our future plan is to increase the outlets around regional area and to cover major cities of far western like
Mahendranagar, TikaPur. The main aim is to increase the market share by 10%.s