Business plan for a fast food chain

Abstract

‘Chaat Bandaar’ is a fast food chain specializing in Indian fast food like vada paav, bhel puri, sev puri etc. This is not a brick and mortar store but a chain of small roadside kiosks manned by a single vendor. The chain caters to 1. The middle class ‘chaat’ lover who cannot take his/her family to a roadside kiosk due to lack of hygiene 2. The college going crowd between 18-22 years of age 3. The just into a job crowd with a high disposable income in the 22-30 age bracket The store will provide standardized food so that the consumer may expect the same taste in every kiosk of the chain. The surroundings will be hygienic and the food products will be handled by a well dressed vendor with minimal handling required. The kiosk itself will be well lit and prominently display the ‘Chaat Bandaar’ brand name. The kiosk will be strategically positioned near colleges, popular hangouts in the city and in malls. The economics of the model are such: In the food retail business, the margins are huge. A typical roadside vendor of bhel puri / paani puri will make a sale 100 plates on an average at Rs.10/plate. Hence he makes a sale of Rs.1000/day with a profit of at least Rs.600 on the conservative side. Assuming sale takes place for only 20 days a month (owing to rains and other unforeseen circumstances), he makes Rs.12000 monthly. With the fixed costs being minimal, to the tune of Rs.10000 for the kiosk itself, breakeven will be possible in the first month itself. In case the kiosk is stationed in the malls, a fee/rental to the mall is also applicable for use of premises, but this is expected to be offset by higher sales. A vendor needs to be employed for running the kiosk and the market rate for such a job ranges from Rs.1500-3000.