- Country: India
- Industry: Food, Beverages, Tabacco
- Stage: Expansion/Growth
- Investment size: $400,000 / min. $250,000
- Type of investment: Debt, Equity
The largest Veg Restaurant in the area Hyderabad and Secunderabad, offering authentic North Indian cuisine food. We are seeking an investor to help our business grow.
Our sustainable development is based on an emphasis on quality taste and dedicated customer service. Our restaurant business was started in the year 1981. Our group’s first venture is Shree Shyam Nivas which is located in Pan Bazar, Secunderabad. It is a 48 seat Veg. Restaurant & 21 Economy Rooms project. We were the pioneers who started the Marwari – Gujarati Thali system in twin cities. Till date the Thali system still exists with the same quality and taste. The only change is the ambience which is converted into an A/C Restaurant with pleasing yet simple décor. There could not be any more further expansion in this premises giving the space constrain in the premises of the building it is located since it was started long back, nearly more than 30 years ago. Till date this restaurant is very popular especially amongst the business class people who are in the trading business in the market area of Secunderabad. Nowadays lots of corporate employees are also turning up in huge numbers and enjoying the unlimited Veg Thalis at a throw-away price in an air conditioned restaurant. All the major newspapers have published articles about this restaurant dating right from the year 1993.
Now coming to the business proposal, where our group’s two other ventures are going to be merged. Highlights are as mentioned below:
Roti Shhoti started in the year July 2010 and is now the biggest Vegetarian Restaurant in Hyderabad-Secunderabad. It is spread over 3 floors and has a seating capacity of 300 Pax over an area of over 12000 sq. ft. It has a Banquet Hall on the 3rd Floor with a seating capacity of 100 to 150 Pax. It is very popular within the people of the twin cities and has an excellent rating on restaurant sites like Trip Advisor, Zomato and Just Dial etc. Even if you just type Roti Shhoti in Google search page there are about 20+ pages opening about our restaurant. It also has 800+ likes on its Facebook page. Moreover, the place in which the restaurant is located is absolutely apt for this kind of venture as it is called the Khaoo-Piyoo Gali of the city. The residential population is majorly vegetarian, comprising mostly of Upper Middle Class North Indian residents.
We want to better utilize the restaurant by introducing a Sweet Showroom & Food Court. For the preparation of the food for this extended line we will use premises within our existing hotel.
Hotel Rahul International was started in the year 2005. It is a 35 room property spread in an area of approx. 12000 Sq. Ft. having 4 floors with ample cellar parking. It is located in the heart of the city of Secunderabad in Parklane area which is the business hub of the city. The rooms are quite big in comparison to nearly by hotels. The room size is so big for a budget hotel that if we had 4 feet more space the number of rooms would have doubled in number. The room categories include Deluxe, Super Deluxe, Executive and Suite Rooms. All the rooms are modestly priced. The hotel is on a long lease agreement till 2025. This hotel was recently renovated at a cost of Rs. 25 Lakhs. It has a turnover of approx. Rs. 4,50,000 per month. The day-to-day expenses incurred for the running of this project including rent, electricity, salaries etc. are nearly about Rs. 3,50,000 monthly.
We have a few things that really make us different than other restaurants. Firstly, the name of the restaurant itself is a crowd puller: Roti Shhoti. It’s very catchy and at the same time it says what the business is all about with the tagline Khaoo Jee Bhar Kay. Secondly, we have an in-house A/C kids’ play room with games and other items for children to play, which no other restaurant has in our city. We have also put 2 maids to look after the kids so the parents can dine peacefully while their children enjoy playing. We have 8 P.D.R's (Private Dining Rooms) from 8 to 30pax. This private dining culture is very popular in Western countries but in India restaurants have one or maximum a couple of such cabins. We on the other hand have 8 of these so at one time many family gatherings, ladies kitty parties & corporate meetings can take place during lunch and dinner so that the groups can have their food in privacy. All P.D.R's have attached washrooms and LCD TVs. Even the sweet showroom and food court name which we have thought out is very different. The name is Chhotu Motu Halwai wherein Chhotu Motu is very catchy and Halwai is very traditional, and the name itself clearly indicates the nature of the business. We have also created two characters of these two persons Chhotu & Motu which might get pretty popular in the near future. Both the names of the restaurant Roti Shhoti & the sweet showroom Chhotu Motu Halwai have already been registered and approved. The TM (Trade Mark) logo is sanctioned for both and currently is under usage for Roti Shhoti already.
Rationale for the deal
Roti Shhoti is on a registered lease deed for 12 years but also after the completion of these 12 years there is no obligation of vacating the premises - it is only mentioned that the rent will have to be paid as per the market rate. The present day-to-day expenses incurred for the running of this project including rent, electricity, salaries etc. is about Rs: 8,50,000/- monthly. We are currently having daily sales of approx. Rs: 40000/- To Rs: 50000/- making it to 12 to 15 Lakhs in a month. However, in terms of revenue generation we had expected sales of 1 Lakh per day after the third year of inception which is not impossible but presently we are behind this target.
Use of financing
Recently we planned for further expansion by introducing a Sweet Showroom (approx. 800 Sq. Ft.) & Food Court (approx. 1500 Sq. Ft.) at the ground floor to increase the sales because it is very difficult to attain 1 lakh per day average sales just from lunch and dinner in the vegetarian sector. Also, we are using the entrance space of the restaurant for office, children’s play room and waiting lounge and there is absolutely no income generated from that. The frontage and the entrance are the top most valuable in terms of revenue generation for any commercial enterprise and moreover, since it is within our own premises we would not have to pay any extra rent and deposit which any other person would have to pay if they started the same business. With the inception of this sweet showroom & food court the business revenue will definitely increase. The reason as of now the business is just lunch and dinner wherein timing of lunch is from 12:30 p.m. to 3:30 p.m. and dinner from 7:00 p.m. to 11:00 p.m. After this expansion there will be Sweet Showroom, Breakfast, Lunch, Evening Snacks & Chat, Dinner and the restaurant will be open from 7:30 a.m. to 11:00 p.m. There shall be no break & close down in-between which will definitely play a positive role in generating more revenue and shall help in successfully achieving the target of sales of approx. Rs.1 Lakh per day and Rs. 30 Lakhs per month.
Secondly, our restaurant is the biggest Veg. Restaurant in two twin cities: We have 3 floors and at present at any given point of time only 2 floors are being utilized. During lunch we do not operate the ground floor. We have Al-A-Carte on the 1st floor & Buffet on the 2nd floor. During dinner time we operate ground and 1st floor and the 2nd floor is not under operation. All the 3 floors are operational at the same time only on Sunday, at dinner buffets or any festival or national holiday. So as of now complete utilization is there only for approx. 65 days in a year, while in the remaining days only 2 floors are operational.
When the Food Court & Sweet Showroom open, all the 3 floors will be operational for all the 365 days of the year at the same time. Since this is a running business with an existing footfall of 200+ guests every day the proposed business shall start clicking immediately. All the existing goodwill, image and popularity of the restaurant will benefit the Sweet Showroom & Food Court.
Hotel Rahul International is being merged in the proposal for the reason that the workshop of this sweet showroom will be set up on the 5th Floor of the Hotel. There are several reasons, the first of which is the distance. The hotel is very close to the proposed sweet showroom - at a distance of about half a kilometre. Secondly, since the workshop will be within our hotel’s premises we would not have to pay any extra rent and deposit which any other person would have to pay if they would start business of a similar nature. Thirdly, we already have a 2000 Sq. Ft. hall ready which will be used for storage of raw materials, and cutting, packing of the sweets, and a place of 1000 Sq. Ft. for the kitchen workshop where the sweets will be prepared. Since the workshop
Opportunity for the investor
We seek an investment of Up To Rs. 2,00,00,000 (Rupees Two Crores) wherein a private limited company shall be formed in the name of the present license holder. Its directors will be the existing business operators, as well as the investors.
It is proposed that both parties shall be drawing a fixed sum of Rs. 2 Lakhs each on a monthly basis from the business venture and not more than that as of now for two to three months till the Food Court & Sweet Showroom open up. The reason for this requirement is that there should be liquid cash left in the business for its day-to-day operations.
We have been running both these ventures, namely Hotel Rahul for the past 6 years and Roti Shhoti for about two years now, so we can guarantee a minimum withdrawal of Rs. 2 Lakhs per month for both parties even in the present business as on today position without opening of the Food Court & Sweet Showroom. This amount can be easily drawn and will not affect the functionality of the running business. The Profit & Loss accounts will be done either half-yearly or annually as mutually decided by both parties.
Once the Sweet Showroom & Food Court open and the business comes into a proper operational routine after 2 to 3 months the amount fixed for monthly withdrawal can be increased up to 3 to 4 Lakhs per each party as a fixed monthly income. The exact remuneration of monthly drawings can be mutually decided by both the parties involved with the business. Both parties will have an equal share in the business.
I have given you a detailed explanation of this entire business proposal for investment as per my best knowledge. If you need any further information please do not hesitate to contact me over the same.
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