Co-Authors

Aayush Nanda Anirban Paul Gauri Mittal Nishit Vyas

MMSBF23001 MMSBF23007 MMSBF23018 MMSBF23031

Pratik Dash Sachidananda Tripathy Sourav Mondal

MMSBF23035 MMSBF23049 MMSBF23054

Under the guidance

of
Professor Dr. Vijaya Batth

School of Commerce

XIM University, Bhubaneswar

Letter of Intent
 Acknowledgment

We are team CVP and we would like to express our heartfelt gratitude to Professor Dr. Vijaya Batth,
Assistant Professor of Accounting, School of Commerce, XIM University for her constant guidance
throughout this live project. Her constructive criticism and encouragement have helped us immensely
to learn and grow throughout the process.

We would also like to thank Mr. Abhinash Panda, the owner of The Anna's Hut. His willingness to
open the doors of his restaurant to us and provide us with valuable insights into its operations was
invaluable. His generosity and cooperation are greatly appreciated.

Finally, we would also like to thank all those who have directly or indirectly supported us throughout
this project.

Thanking you

Team Cost Visualizing Partners

 Contents

Particulars Page Number

Abstract 1
Introduction 2
Business Model 3
Problem Statement 4
Limitations 5
SWOT Analysis:
Strengths 6
Weakness 7
Opportunities 8
Threats 8
Market Research 10
What If Inference 11
Future Prospects 13
Annexure 14
References 38
 Abstract

In the dynamic landscape of the restaurant industry, establishments like Anna's Hut face multifaceted
challenges in expanding market presence and ensuring sustainable growth. This study delves into the
Cost Volume Profit analysis and strategic analysis of Anna's Hut, a South Indian restaurant located on
the outskirts of Bhubaneswar, with a focus on identifying key issues and proposing actionable
recommendations for improvement.

What picked our interest in doing a live project on Anna's hut was its steadfast dedication to hygiene
and food quality, exemplified by meticulous cleanliness standards and the use of fresh, locally sourced
ingredients. Moreover, the restaurant's inviting ambiance, characterized by leafy trees and authentic
South Indian aromas, sets it apart as a cherished destination for locals and travelers alike.

Through comprehensive market research and analysis, several critical challenges have been identified,
including limited visibility, a complex business model, high reliance on repeat customers, weak online
presence, and limited promotional activities. Furthermore, the study suggests exploring opportunities
to expand the menu offerings to include non-vegetarian options, considering market preferences
and demand trends.

A complete Cost-Volume-Profit (CVP) analysis was performed to assess the feasibility of

implementing a lassi counter at Anna's Hut, using market surveys and consumer preferences. This
research seeks to provide a more sophisticated view of the proposed venture's potential financial
ramifications and profit dynamics.

By implementing these strategic recommendations, Anna's Hut can overcome existing challenges,
strengthen its market position, and cultivate a loyal customer base. Moreover, proactive measures to
address operational inefficiencies and enhance customer engagement will position the restaurant for
sustained success and growth in the competitive culinary landscape of Bhubaneswar and beyond.

1
 Introduction

In the restaurant industry, competition is fierce, requiring establishments to excel in cuisine, service
quality, or overall brand trust to retain customer loyalty. Various factors influence customer
preferences and loyalty, amidst dominance by fast-food chains and multinational hospitality giants.
Despite this, new restaurants can succeed by offering unique value propositions, focusing on quality,
delivering exceptional customer service, creating memorable atmospheres, engaging with the
community, embracing technology, adapting to market changes, organizing special events, managing
online reputation, and prioritizing sustainability and social responsibility. Panda Foods Annas Hut is
one such restaurant that is trying to grab its share in the market.

Founded in February 2023 by Abhinash Panda, who brings a wealth of experience from his executive
role at Vistara Airline, Anna’s Hut which is a franchise of Instacuisino.
Instacuisino LLP, established in August 2021, operates as a Limited Liability Partnership registered
with the Registrar of Companies, Delhi. Drawing upon the expertise of seasoned professionals with
over several years of combined experience

Instacuisino oversees a diverse portfolio comprising 14 brands, offering comprehensive services from
conceptualization to marketing and staffing., Among its prominent brands such as Cafe Tatva, Rang
De Kesar, Chin Singh, Vanilla Sky, Andaz-e-biryani, Anna's Hut, and Cafe de café, etc. Instacuisino
showcases an array of culinary delights spanning Indian, Chinese, Italian, and Continental cuisines.
With restaurant locations spanning various cities in India, including Thiruvananthapuram,
Bhubaneswar, Kolkata, and beyond, Instacuisino endeavors to bring diverse Flavors and exceptional
dining experiences to discerning patrons nationwide.

Mr. Panda successfully forayed into the fashion industry with Panda Fashions in 2019 exemplifying
his dynamic and versatile entrepreneurial acumen. In establishing Panda Fashions, Mr. Panda
showcased not only his ability to identify market opportunities but also his capacity to adapt to diverse
industries. His venture into the fashion sector reflects a keen understanding of consumer trends, design
aesthetics, and business strategies necessary to thrive in a competitive market landscape.

Following his ventures in the fashion industry, Mr. Panda recognized a gap in the market for a well-
established South Indian restaurant offering affordable menus and a pleasant ambiance. His realization
of the necessity for quality dining experiences at reasonable prices positions him as a promising figure
in the culinary scene. As he embarks on this new endeavor, he emerges as a figure to watch, poised to
make a significant impact on the restaurant scene with his commitment to excellence and accessibility.

2
 Business Model

Table 1

Description Key Objective

Anna’s Hut is a restaurant franchise under the Increase sales

umbrella of Instacuisino that sells South Indian pure Profit maximization
vegetarian delicacies. New customer requisites

Customer Customer Our Solution Our Value Our Pricing

Targets Challenges

Residents Repeat customer Potential expansion Pure vegetarian Competitive Pricing

College Students base Advertisement Quality food
Pedestrians No advertisement Delivery options Hygiene
Non-veg demands

Investment Required Growth Opportunity

Rs. 7000 for Lassi Counter Lassi Counter

Potential non-veg options

3
 Problem Statement

1. Location – Anna’s hut is located in “Sundarpada”. The location is on the outskirts of the city of
Bhubaneshwar, due to which the restaurant is not that well known and has few customers. In the 2
km radius, there are 3 more areas, which are also the focus of our primary market research data.
Between XIM University and Anna’s hut, there are 2 areas of interest “Gouri dham” and “Kapila
prasad”. On the other side, the area is “Bhimtangi, Ekram College, and Pokhoriput”.
The aim was to do market research, analyze the data, and widen the customer base.

2. Advertisement – In its initial days Anna’s hut served food for free for the entire 1st week of its
opening. Later down the line it also posted templates in newspapers, about which they currently
enjoy a loyal customer base. What they lack now is the acquisition of new customers as they have
not invested in advertising for a while.
We have attempted to help them advertise better and also came up with proper costing for this
endeavor.

4
 Limitations

Complex Business Model - The restaurant has a complex model of doing business, The restaurant's
reliance on "Pet Puja" software for sales data and billing presents an interesting business model. While
it's great that the software streamlines current sales figures and billing, the inability to access historical
sales data from previous months or years seems like a potential limitation. Understanding past sales
trends is crucial for any business to analyze profitability and make informed decisions. Without access
to this historical data, conducting a Cost-Volume-Profit (CVP) analysis, which is a key tool for
assessing profitability at different sales volumes, becomes difficult.

High repeat customers – High repeat customers however might give a feeling that the restaurant is
doing well. But we have to see that the restaurant Anna Hut has 90% repeat customers, which means
only 10% of new customers are coming. This is a big disadvantage and the company needs to look
after it and increase the percentage of new customers getting onboarded by using different measures.

Lack of Exact Sales Figures - This makes it tough to know what sells well and what doesn't. Without
this data, restaurants might waste money on overstocked ingredients or miss out on profits by
understocking popular items.

High Menu Prices - This can scare away budget-conscious customers, especially considering
Bhubaneswar might have a competitive food scene. Customers might find similar dishes elsewhere for
less. There are also a few existing South Indian Road side shops that sell products at lesser prices,
creating direct competition.

Carpet area too small – The restaurant has a really small carpet area, which affects the seating
capacity, Ambiance, and kitchen functionality issues. A very small space might not be ideal for larger
groups or those seeking a more private dining experience.

Weak online presence - The restaurant lacks a website, and social media pages, or has minimal
engagement with customers online using platforms like Swiggy and Zomato. We analyzed and found
that the restaurant has difficulty in getting business through Swiggy and Zomato because of the high
charges being charged, we tried solving this issue by suggesting they getting orders offline and trying
delivery through their means.
Limited promotional activities - No discounts, special events, or other marketing efforts to attract
new customers and retain existing ones.
Staffing - Finding and retaining staff trained in authentic South Indian cuisine is a challenge. On top
of that, it also incurs an extra cost which needs to be analysed properly beforehand
Low Visibility - The restaurant is located in an obscure, hidden area that lacks foot traffic and makes
it difficult to discover reducing market penetration.

5
 SWOT Analysis

Figure 1

SWOT ANALYSIS

13%

STRENGTH
40%
20% WEAKNESS
OPPORTUNITY
THREAT
27%

Strengths:

• Hygienic and quality of food - Despite its humble setting, this roadside restaurant prioritizes
cleanliness and hygiene with utmost care. From the spotless surfaces of its cooking area to the
diligent handwashing of its staff, every measure is taken to ensure food safety and customer well-
being. Fresh ingredients are sourced daily and prepared with meticulous attention to cleanliness,
promising a dining experience that is not only delicious but also worry-free. So, amidst the rustic
charm of the roadside, patrons can enjoy their meals with confidence, knowing that hygiene is
never compromised.

• Ambiance - Anna’s hut is a charming roadside gem where the aroma of South Indian delights fills
the air. Amidst wooden tables shaded by leafy trees, locals and travelers gather for hearty meals
and lively conversation. With a versatile menu of South Indian and regional specialties, this quaint
eatery exudes warmth and authenticity, inviting you to savor the simple pleasures of countryside
dining. This is a huge plus point as there are no competitors when it comes to ambiance in the
particular area.

• Price competitiveness - Nestled along the roadside, this restaurant delights patrons not only with
its savory dishes but also with its unbeatable prices. Despite its picturesque setting and quality
offerings, it remains committed to affordability, making delicious meals accessible to all. Whether
it's a quick bite or a leisurely feast, diners can indulge without breaking the bank, enjoying the best
of both worlds: great food and great value.

6
• Customer loyalty - This roadside restaurant isn't just a place to grab a meal; it's a cherished
gathering spot woven into the fabric of the community. Its enduring charm, friendly service, and

• consistently delicious food has fostered a deep sense of loyalty among its customers. Regulars
return time and again, not just for the flavourful dishes, but for the warm welcome and familiar
faces that greet them. Here, amidst the rustic ambiance and hearty fare, friendships are forged,
memories are made, and loyalty runs as deep as the flavors on the menu.

• South Indian food - In a world of culinary diversity, this establishment proudly stands as a beacon
of South Indian culinary excellence, earning the loyalty and admiration of all who pass through its
doors. this unique restaurant stands as the sole purveyor of authentic South Indian cuisine in the
area.

• Pure vegetarian – This restaurant proudly stands as a haven for vegetarians and vegans alike.
With its commitment to purity and plant-based cuisine, it offers a delightful array of dishes bursting
with freshness and flavor.

Weakness:

• Less Carpet spaces- One drawback of the roadside restaurant is its limited carpet space. Due to
the constraints of the physical layout, patrons may find themselves feeling a bit cramped during
peak dining hours. The lack of ample space between tables can detract from the overall dining
experience, as guests may feel crowded and have limited privacy during their meals.

• Chef inadequacy- One challenge that this roadside restaurant faces is the inadequacy of its kitchen
staff. With a limited number of chefs, the restaurant may struggle to keep up with the demands of
a busy service, leading to longer wait times and potential inconsistencies in food quality. The
unavailability of a chef poses a significant issue for the roadside restaurant, as there are occasions
when this results in the establishment being closed entirely.

• Less scope for expansion and parking issues - The roadside restaurant faces a challenge in
expanding its real estate footprint due to limited available space in its current location. With
neighboring properties or geographical features constraining the area, the restaurant finds itself
with minimal room for expansion. This limitation restricts the restaurant's ability to accommodate
a growing customer base or introduce new amenities, presenting a significant hurdle in its path to
further development and growth.

• No advertisement - One notable challenge faced by the roadside restaurant is the lack of
advertisement. Despite its exceptional offerings, the restaurant struggles to reach potential
customers due to minimal advertising efforts. This absence of promotion hinders the restaurant's
ability to attract new patrons and expand its customer base. As a result, the restaurant remains
relatively unknown in the community, missing out on opportunities to showcase its unique dining
experience and standout cuisine.

7
 Opportunities:

• Potential non-veg options – As per our suggestions the roadside restaurant is considering
expanding its menu to include non-vegetarian options, presenting both opportunities and
challenges. Introducing meat-based dishes could attract a wider range of customers and cater to
diverse dietary preferences, potentially increasing revenue and broadening its appeal. However,
this decision also requires careful consideration of sourcing high-quality ingredients, maintaining
food safety standards, and accommodating the preferences of existing vegetarian patrons.
Balancing these factors is crucial to ensure a successful and seamless integration of non-vegetarian
offerings into the restaurant's menu, ultimately enhancing its overall dining experience. The plan
is to make an L-shaped counter that will serve smaller non-dishes. This is a future project as the
company is currently associated with its parent company but after 1 year it will be a separate
company and there will be no strings on it.

• Food delivery - The roadside restaurant is exploring the potential of starting a food delivery
service, recognizing the opportunity to reach a wider audience and adapt to changing consumer
preferences. By offering delivery options, the restaurant aims to provide convenience and
accessibility to customers who prefer to dine in the comfort of their homes or workplaces. This
initiative has the potential to increase revenue streams and expand the restaurant's reach beyond its
immediate vicinity. However, implementing a food delivery service requires careful planning and
investment in logistics, packaging, and delivery infrastructure to ensure timely and quality service.
With proper execution, launching a food delivery service holds the promise of enhancing customer
satisfaction and driving growth for the roadside restaurant.

• Lassi Counter - The roadside restaurant is considering adding a Lassi counter to its menu,
recognizing the potential to offer a refreshing and traditional beverage option for its customers.
This addition aligns with the restaurant's commitment to providing authentic and culturally rich
culinary offerings, enhancing its appeal and driving customer satisfaction. The plan is to make an
L-shaped counter that will serve Lassi. This is a future project as the company is currently
associated with its parent company but after 1 year it will be a separate company and there will be
no strings on it.

Threats:

• Price competitiveness – The roadside restaurant faces threats from price competitiveness as other
restaurants in the area may offer similar or lower prices, potentially drawing customers away. This
competition could lead to a decrease in customer traffic and revenue for the roadside restaurant if
it is unable to differentiate itself through unique offerings or value-added services. Balancing price
competitiveness with maintaining quality and profitability is crucial for the roadside restaurant to
mitigate these threats and sustain its business in a competitive market.

8
 Table 2
Dishes Anna’s Hut Gokhibaba Hotel Nukkad Party
Veg Meal - 80 110
Veg Meal (paneer and mushroom 120 100 -
included)
Non veg Meal - 100 180
Non-veg Meal (Mutton) - 180 -

• Wide menu - The roadside restaurant faces threats from having a narrower menu compared to
other restaurants in the area. Competitors with more extensive menus may attract customers
seeking a wider variety of options, potentially reducing foot traffic and revenue for the roadside
establishment. To mitigate this threat, the restaurant must focus on offering high-quality dishes
that showcase its specialties and unique flavors, providing a compelling reason for customers to
choose it over competitors with broader menus. Additionally, the restaurant can consider
periodically updating its menu with seasonal or rotating offerings to keep customers engaged and
attract new patrons.

9
 Market Research

• Market Demand for Home Delivery: The preference for home delivery (73.33%) underscores
the convenience factor sought by consumers, indicating a robust market for delivery-based food
services.

• Brand Awareness: The familiarity with Anna’s Hut Restaurant (60%) suggests effective
branding or marketing strategies employed by the establishment, potentially influencing
consumer choices.

• Lack of Quality South Indian Options: The low percentage (28.33%) of respondents
indicating the presence of high-quality South Indian restaurants nearby implies a potential gap
in the market for superior South Indian cuisine experiences.

• Strong Preference for South Indian Food: With 63.33% of respondents expressing a
preference for South Indian food, there is a clear market segment that favors this cuisine,
presenting an opportunity for businesses to cater to this demand.

• Significance of Local Restaurants: The fact that a considerable portion (78.33%) of

respondents order from local restaurants/Zomato/Swiggy highlights the importance of these
establishments in the food delivery ecosystem, indicating a loyal customer base.

Refer to Annexure 17
Further analysis reveals that a majority (63.33%) of respondents prefer South Indian food, indicating
a strong affinity for this cuisine. However, despite the preference for South Indian cuisine, a
significant portion of respondents (71.67%) believe that there are no nearby South Indian restaurants
offering better-quality food and services. This presents an opportunity for improvement within the
South Indian dining segment, highlighting the need for establishments to focus on enhancing food
quality and service standards to meet consumer expectations.

10
 What if Inference

Recommendations
Based on our market survey and study, it was our opinion that these options if opted by Anna’s Hut
will not only result in increased profit but would encourage new customers and in the end decrease
their variable cost per unit by a significant amount. Some of these strategies mentioned do not require
any prior investment from the restaurant owner and our numbers show that.

Additional Fixed Costs- Advertisement (Annexure 6-11)

During our analysis, we have narrowed down three hot-selling dishes of Anna’s Hut: ‘Onion Masala
Dosa’, ‘Chhole Bhature’, and ‘Pav Bhaji’ which constitute about 45% of their per day sales.

After the calculation of its per unit variable cost and fixed cost per day, holding an assumption that the
fixed cost incurred in making these dishes would be 45% of the total fixed cost per day; we noticed no
current expense has been made on advertisement if we nail out the initial advertisement expense of Rs.
5000 at the inception of the restaurant.

In our assumption, if an advertisement expense of Rs. 3000 is done monthly, that would increase the
offline sales by 30% and the online sales by 50% which would result in a profit percentage increment
of 85%.

Less Variable Costs- Own Delivery (Annexure 12-14)

In our study, we got to the fact that online sales through food-selling sites like Zomato and Swiggy
carry a commission of 30% on their selling price. This requirement puts Anna’s Hut in a puddle. They
do provide additional home delivery through direct orders with a resistance of the minimum cost of
Rs. 500 with no additional delivery charges but for only a 2-kilometer radius. This model of theirs
doesn’t seem to work in adding up to their increase in sales and we propose that with a minimum order
amount of Rs.100 for a radius of 2 kilometers, if they charge an additional Rs. 10 for delivery and Rs.
5 for packaging on their selling price, their variable cost reduces by 20% and the profit margin
increases by 20% as compared to their online sales on Zomato and Swiggy. This profit increment is
done without making any new expenses by the owner.

11
Potential Expansion- A Lassi Counter (Annexure 15-16)

As spoken by the owner, they plan on putting up a counter in front of their restaurant, adjacent to the
parking space which would hold an initial investment of Rs. 7000.
In catering to the needs of the owner, we made certain assumptions for our model.

In making one glass of lassi, we would require Rs. 16 worth of curd since as per our assumption, 1 kg
of curd would make five glasses of lassi and the cost of curd is Rs. 80 per kg. One glass of lassi would
require, 40 grams of sugar for Rs. 50 per kg and 250 grams of ice at Rs. 20 per kg. The cost of
packaging or serving is Rs. 5 per unit.

The flavored lassi holds an additional cost of fruits, flavored syrup, and dry fruits. The mango lassi
would have Rs. 7.5 of mango puree in a glass where the price of mango is Rs. 60 per kg. In the case
of butterscotch lassi, the combined cost of flavoring syrup and dry fruits would be Rs. 10 per unit. The
mixed fruit lassi would contain fruits for Rs.10 per unit and the kesar pista lassi would have Rs.25
worth of kesar pista in one unit.

With the help of our model, we concluded that the restaurant owner would be at breakeven at 20 units
of sales per day where its fixed cost would be one-tenth of its total fixed cost per day and, with the
current assumption of selling approximately 28 units, he’s making a profit of Rs. 90 per day.

Anna’s Hut is required to make 40 sales units per day to make a profit of Rs. 7000 to cover its initial
investment of Rs. 7000 in its first month.

12
 Future Prospects

Looking ahead, as Annas Hut has entered into a two-year contract with Instacuisino, a complex model,
the restaurant should prepare to continue its operations independently once the contract expires.
Furthermore, Annas Hut must explore the inclusion of non-vegetarian options in its menu to potentially
boost sales. Market surveys conducted across various locations have revealed a stronger inclination
among people towards non-vegetarian choices over vegetarian options.

As Annas Hut moves forward, it should strategically plan for the post-contract period with
Instacuisino. Despite the complexities involved in the current partnership model, Annas Hut should
focus on developing its capabilities to operate autonomously. This may involve strengthening its
internal systems, expanding its marketing efforts, and refining its customer service strategies to ensure
a seamless transition once the contract concludes.

Moreover, recognizing the demand for non-vegetarian offerings among consumers is crucial for Annas
Hut's growth trajectory. By incorporating a variety of non-vegetarian dishes into its menu, the
restaurant can cater to a wider audience and capitalize on the preferences of its target market. This
strategic decision aligns with the findings from market surveys, which indicate a clear preference for
non-vegetarian options among patrons.

The restaurant can also reach a larger audience and adjust to shifting customer preferences by offering
food delivery services. The restaurant wants to make dining in the comfort of one's home or place of
business convenient for its patrons, thus it offers delivery choices. This project might boost income
sources and broaden the restaurant's customer base beyond its immediate neighborhood.

Another opportunity to provide its patrons with a refreshing and traditional beverage alternative, the
restaurant is thinking of introducing a lassi counter to its menu. This new endeavor will increase the
restaurant's appeal and boost customer satisfaction in line with its mission to provide genuine,
culturally diverse food offerings.

In summary, Annas Hut should plan for the future by preparing to operate independently post-contract
with Instacuisino and by strategically introducing non-vegetarian options to meet the evolving
demands of its customer base. These proactive measures will position the restaurant for continued
success and growth in the competitive culinary landscape.

13
 Annexures

Annexure-1: Fixed costs in the current scenario

FIXED COST
Particulars Per Month Yearly
FSSAI license renewal fee ₹7,000.00

Billing software renewal ₹9,250.00

Monthly wages
2 chefs ₹32,000.00 ₹384,000.00
2 helpers ₹20,000.00 ₹240,000.00

Insurance ₹8,000.00
Storage rent & cooks' accommodation ₹3,000.00 ₹36,000.00
Electricity ₹2,000.00 ₹24,000.00
Rental premise ₹12,000.00 ₹144,000.00
Total ₹71,020.83 ₹852,250.00
Per day fixed cost ₹2,334.93

Semi – Variable Costs

Fixed Variable
Electricity 2000 8000

14
Annexure-2: Current scenario of per day variables for onion masala dosa

ONION MASALA DOSA

Particulars
Total sales per day 20-25 units
Online 1-2 Units
Offline 23-24 Units
Average sales per day 25 Units

Selling price ₹ 70.00

Less: cost of making per plate of dosa

Dosa ₹ 20.00
Sambhar ₹ 10.00
Chutney (3 types) ₹ 15.00
Total ₹ 45.00

Contribution per unit ₹ 25.00

Offline sales per day 23 units

Sales ₹ 1,610.00
Less: making cost ₹ 1,035.00

Contribution for 23 units ₹ 575.00

Online sales per day 2 units

Selling price ₹ 112.00

Less: cost of making ₹ 45.00

Zomato or Swiggy charges ₹ 33.60
Packaging charges ₹ 5.00
Total variable cost per unit ₹ 83.60
Contribution per unit ₹ 28.40
Contribution for 2 units ₹ 56.80

Total contribution for 25 units ₹ 631.80

15
Annexure-3: Current scenario of per day variables for chhole bhature

CHHOLE BHATURE
Particulars
Total sales per day 15 units
Online 5 Units
Offline 10 Units

Selling price ₹ 80.00

Less: cost of making per plate of chole bhature

Bhature (2 pieces) ₹ 20.00
Chana ₹ 26.00
Total ₹ 46.00

Contribution per unit ₹ 34.00

Offline sales per day 10 units

Sales ₹ 800.00
Less: making cost ₹ 460.00

Contribution for 10 units ₹ 340.00

Online sales per day 5 units

Selling price ₹ 128.00
Less:
Cost of making ₹ 46.00
Zomato and Swiggy charges ₹ 38.40
Packaging charges ₹ 5.00
Total variable cost per unit ₹ 89.40
Contribution per unit ₹ 38.60
Contribution for 5 units ₹ 193.00

Total contribution for 15 units ₹ 533.00

16
Annexure-4: Current scenario of per day variables for pav bhaji

PAV BHAJI
Particulars
Total sales per day 15 units
Online 7 Units
Offline 8 Units

Selling price ₹ 70.00

Less: cost of making per plate of pav bhaji

Pav*2 (purchased) ₹ 9.00
Butter (purchased) ₹ 10.00
Bhaji ₹ 10.00
Total ₹ 29.00

Contribution per unit ₹ 41.00

Offline sales per day 8 units

Sales ₹ 560.00
Less: making cost ₹ 232.00

Contribution for 8 units ₹ 328.00

Online sales per day 7 units

Selling price ₹ 112.00
Less:
Cost of making ₹ 29.00
Zomato and Swiggy charges ₹ 33.60
Packaging charges ₹ 5.00
Total variable cost per unit ₹ 67.60
Contribution per unit ₹ 44.40
Contribution for 7 units ₹ 310.80

Total contribution for 15 units ₹ 638.80

17
Annexure-5: Profit in the current scenario from the best three selling items

Profit in the current scenario from the best three selling items
Particulars Total Offline Sales Total Online Sales Total
Sales ₹ 2,970.00 ₹ 1,648.00 ₹ 4,618.00
Less Variable Cost ₹ 1,727.00 ₹ 1,087.40 ₹ 2,814.40
Contribution ₹ 1,803.60
Less Fixed Cost ₹ 1,050.72
Profit ₹ 752.88

Annexure-6: Effect on the sales and total profit after incurring advertisement
expenditure

Fixed Cost
Particulars Per Month Yearly
FSSAI License Renewal fee ₹583.33 ₹7,000.00

Billing Software Renewal ₹770.83 ₹9,250.00

Monthly Wages
2 Chefs ₹32,000.00 ₹384,000.00
2 Helpers ₹20,000.00 ₹240,000.00
Advertisement ₹3,000.00 ₹36,000.00
Insurance ₹666.67 ₹8,000.00
Storage Rent & Cooks Accommodation ₹3,000.00 ₹36,000.00
Electricity ₹2,000.00 ₹24,000.00
Rental Premise ₹12,000.00 ₹144,000.00
Total ₹888,250.00
Per Day Fixed Cost ₹2,433.56

Semi – Variable costs

Fixed Variable
Electricity 2000 8000

18
Annexure-7: Effects in the contribution generated from the sale of onion masala
dosa after incurring advertisement expenditure

ONION MASALA DOSA

Particulars
Total sales per day 23 units
Online 2 units
Offline 30 units

Selling price ₹ 70.00

Less: cost of making per plate

Dosa ₹ 20.00
Sambhar ₹ 10.00
Chutney (3 types) ₹ 15.00
Total ₹ 45.00

Contribution per unit ₹ 25.00

Offline sales per day 30 units

Sales ₹ 2,100.00
Less: making cost ₹ 1,350.00

Contribution for 30 units ₹ 750.00

Online sales per day 3 units

Selling price ₹ 112.00

Less: cost of making ₹ 45.00

Zomato or Swiggy charges ₹ 33.60
Packaging charges ₹ 5.00
Total variable cost per unit ₹ 83.60
Contribution per unit ₹ 28.40
Contribution for 3 units ₹ 85.20

Total contribution for 33 units ₹ 835.20

19
Annexure-8: Effects in the contribution generated from the sale of chhole bhature
after incurring advertisement expenditure

CHHOLE BHATURE
Particulars
Total sales per day 21 units
Online 8 Units
Offline 13 Units

Selling price ₹ 80.00

Less: cost of making per plate

Bhature (2 pieces) ₹ 20.00
Chana ₹ 26.00
Total ₹ 46.00

Contribution per unit ₹ 34.00

Offline sales per day 13 units

Sales ₹ 1,040.00
Less: making cost ₹ 598.00

Contribution for 13 units ₹ 442.00

Online sales per day 8 units

Selling price ₹ 128.00
Less:
Cost of making ₹ 46.00
Zomato and Swiggy charges ₹ 38.40
Packaging charges ₹ 5.00
Total variable cost per unit ₹ 89.40
Contribution per unit ₹ 38.60
Contribution for 8 units ₹ 308.80

Total contribution for 15 units ₹ 750.80

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Annexure-9: Effects in the contribution generated from the sale of pav bhaji after
incurring advertisement expenditure

PAV BHAJI
Particulars
Total sales per day 21 units
Online 11 Units
Offline 10 Units

Selling price ₹ 70.00

Less: cost of making per plate

Pav*2 (outsourced) ₹ 9.00
Butter (outsourced) ₹ 10.00
Bhaji ₹ 10.00
Total ₹ 29.00

Contribution per unit ₹ 41.00

Offline sales per day 10 units

Sales ₹ 700.00
Less: making cost ₹ 290.00

Contribution for 10 units ₹ 410.00

Online sales per day 11 units

Selling price ₹ 112.00
Less:
Cost of making ₹ 29.00
Zomato and Swiggy charges ₹ 33.60
Packaging charges ₹ 5.00
Total variable cost per unit ₹ 67.60
Contribution per unit ₹ 44.40
Contribution for 11 units ₹ 488.40

Total contribution for 21 units ₹ 898.40

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Annexure-10: Profit from the best three selling items after incurring advertisement
expenditure

Per Day Profit with Advertisement Offline Online Total

Sales ₹ 3,840.00 ₹ 2,592.00 ₹ 6,432.00
Less Variable Cost ₹ 2,238.00 ₹ 1,709.60 ₹ 3,947.60
Contribution ₹ 2,484.40
Less Fixed Cost ₹ 1,095.10
Profit ₹ 1,389.30

Annexure-11: Table showing the incremental profit and profit percentage after
incurring advertisement expenditure

Incremental Profit ₹ 636.42

Incremental Profit percentage 84.53%

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Annexure-12: Table comparing contribution generated from the sale of onion
masala dosa through own delivery services and through Zomato and Swiggy

ONION MASALA DOSA

Scenario 1

Particulars Online sales per day 2 units

Total sales per day 25 units Selling Price ₹ 112.00

Online 2 units

Offline 23 units Less: Cost Of Making ₹ 45.00

Zomato or Swiggy Charges ₹ 33.60

Selling price ₹ 70.00 Packaging Charges ₹ 5.00

Total Variable Cost per unit ₹ 83.60

Less: cost of making per plate Contribution per unit ₹ 28.40

Dosa ₹ 20.00 Contribution for 2 units ₹ 56.80

Sambhar ₹ 10.00

Chutney (3 types) ₹ 15.00 Scenario 2

Total ₹ 45.00 Own Delivery 2 units

Selling Price ₹ 70.00

Contribution per unit ₹ 25.00 Add: Delivery Charges Received ₹ 10

Add: Packaging Charges ₹5

Offline sales per day 23 units Total ₹ 85.00

Sales ₹ 1,610.00 Less: Cost Of Making ₹ 45

Less: making cost ₹ 1,035.00 Contribution per unit ₹ 40

Contribution for 2 units ₹ 80

Contribution ₹ 575.00

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Annexure-13: Table comparing contribution generated from the sale of chhole
bhature through own delivery services and through Zomato and Swiggy

CHHOLE BHATURE
Particulars Scenario 1
Total sales per day 15 units Online sales per day 5 units
Online 5 Units Selling price ₹ 128.00
Offline 10 Units Less:
Cost Of Making ₹ 46.00
Zomato and Swiggy ₹ 38.40
Charges
Selling price ₹ 80.00 Packaging Charges ₹ 5.00
Total variable cost per unit ₹ 89.40
Less: cost of making per plate of chole Contribution per unit ₹ 38.60
bhature

Bhature (2 pieces) ₹ 20.00 Contribution for 5 Units ₹ 193.00

Chana ₹ 26.00
Total ₹ 46.00 Scenario 2
Own Delivery 5 Units
Contribution per unit ₹ 34.00 Selling price ₹ 80
Add: Delivery Charges ₹ 10
Offline sales per day 10 units Packaging Charges ₹5
Sales ₹ 800.00 Total ₹ 95
Less: making cost ₹ 460.00 Total variable cost per unit ₹ 46

Contribution ₹ 340.00 Contribution ₹ 49

Contribution for 5 units ₹ 245

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Annexure-14: Table comparing contribution generated from the sale of pav bhaji
through own delivery services and through Zomato and Swiggy

PAV BHAJI

Particulars Scenario 1

Total sales per day 15 units Online sales per day 7 units

Online 7 Units Selling price ₹ 112.00

Offline 9 Units Less:

Cost Of Making ₹ 29.00

Zomato and Swiggy Charges ₹ 33.60

Selling price ₹ 70.00 Packaging Charges ₹ 5.00

Total variable cost per unit ₹ 67.60

Less: cost of making per plate of Contribution per unit ₹ 44.40

pav bhaji

Pav (2 pieces) ₹ 9.00 Contribution for 7 Units ₹ 310.80

Bhaji ₹ 10.00

Butter ₹ 10.00 Scenario 2

Total ₹ 29.00 Own Delivery 7 Units

Contribution per unit ₹ 41.00 Selling price ₹70

Add: Delivery Charges ₹10

Offline sales per day 9 units Packaging Charges ₹5

Sales ₹ 630.00 Total ₹85

Less: making cost ₹ 261.00 Total variable cost per unit ₹ 29.00

Contribution ₹ 369.00 Contribution ₹56.00

Contribution for 7 units ₹392

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Annexure-15: Total estimated sales and variable cost per day of different types of
lassi

Estimated Total
Type of Current Making Cost of 1 glass of Total
Amount number of Variable
Lassi Price Lassi Sales
glasses of cost
lassi to be
sold per
day

Plain Lassi ₹ 35.00 Plain Curd ₹ 16.00 10 ₹ 350.00 ₹ 280.00

Sugar ₹ 2.00
Ice ₹ 5.00
Packaging Cost ₹ 5.00
Total ₹ 28.00

Mango Lassi ₹ 50.00 Plain Curd ₹ 16.00 5 ₹ 250.00 ₹ 177.50

Sugar ₹ 2.00
Ice ₹ 5.00
Mango puree ₹ 7.50
Packaging Cost ₹ 5.00
Total ₹ 35.50

Butterscotch
Lassi ₹ 50.00 Plain Curd ₹ 16.00 3 ₹ 150.00 ₹ 114.00
Sugar ₹ 2.00
Ice ₹ 5.00
Butterscotch Essence+ dry
fruits ₹ 10.00
Packaging Cost ₹ 5.00
Total ₹ 38.00

Mixed Fruit
Lassi ₹ 50.00 Plain Curd ₹ 16.00 5 ₹ 250.00 ₹ 190.00
Sugar ₹ 2.00
Ice ₹ 5.00
fruits ₹ 10.00
Packaging Cost ₹ 5.00
Total ₹ 38.00

Kesar Pista
Lassi ₹ 70.00 Plain Curd ₹ 16.00 5 ₹ 350.00 ₹ 265.00
Sugar ₹ 2.00
Ice ₹ 5.00
Kesar Pista ₹ 25.00
Packaging Cost ₹ 5.00
Total ₹ 53.00

Total 28 ₹ 1,350.00 ₹ 1,026.50

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Annexure-16: Profit from the sale of lassi per day and monthly

Particulars Per day Monthly

28 Units 840 Units
Sales ₹ 1,350.00 ₹ 40,500.00
Less: variable costs:
Raw materials ₹ 1,026.50 ₹ 30,795.00

Contribution ₹ 323.50 ₹ 9,705.00

Less: fixed costs ₹ 233.49 ₹ 7,004.79

Profit ₹ 90.01 ₹ 2,700.21

P/v 23.96 23.96

Contribution per unit ₹ 11.55 ₹ 11.55

Breakeven in units 20 606
Breakeven sales ₹ 9.74 ₹ 405.00
Margin of safety in units 8 234
Margin of safety in rupees ₹ 3.76 ₹ 112.68

Desired profit ₹ 7,000.00

Required sales in units per month 1212
Required sales in units per day 40

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Annexure-17: Market research data

(Sundarpada)
• Are you familiar with Anna’s Hut Restaurant?

• Is there any South Indian restaurant nearby that serves better-quality food?

28
• Do you prefer South Indian food?

(Bhimtangi)

• Are you familiar with Anna’s Hut Restaurant?

29
• Is there any South Indian restaurant nearby that serves better-quality food?

• Do you prefer South Indian food?

30
 Combined

• Are you familiar with Anna’s Hut Restaurant?

• Is there any South Indian restaurant nearby that serves better-quality food?

31
• Do you prefer South Indian food?

32
Annexure 18: Location’s Snaps

33
Annexure 19: Some snaps taken during market survey in the nearby areas

34
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Annexure 20: Menu card for the new lassi counter

36
Annexure 21: Advertisement pamphlet for social media

37
 References

• https://docs.google.com/spreadsheets/d/11idXS1sorkBHx2dUrdWytRVLBZZIUYqXiJySyBV
npCo/edit?usp=sharing

38