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Business plan of the restaurant Chinese cuisine

1. PROJECT SUMMARY
The goal of the project is to open a Chinese restaurant to implement a range of catering services in a city with a population of over 1 million people.

The main advantages of the restaurant business: a high level of profitability and demand for catering services, the ability to find an unoccupied niche, the capacity of the catering market. Difficulties that a restaurateur may encounter: direct dependence of demand for services on the economic situation and income level of the population, selection of qualified employees, documentation, activity of regulatory bodies, fierce competition in the industry.

To implement the project, a total area of ​​350 m2 is rented, located on the main street of the sleeping area of ​​the city, in close proximity to office buildings, residential buildings and a shopping center. The maximum capacity of the restaurant is 70 people, the total area of ​​the visitors’ hall is 225 m2.

The target audience – the population of the city aged 20 to 50 years, preferring delicious, exotic cuisine. Price segment – medium

The volume of initial investment is 2 268 400 rubles. Investment costs are aimed at repairing the premises, filling the interior of the restaurant, purchasing equipment, obtaining a license for alcoholic beverages, purchasing raw materials and creating working capital, which will cover the losses of the initial periods. The main part of the required investment falls on the purchase of equipment – 67%. To implement the project will use its own funds.

Financial calculations cover the five-year period of the project. In accordance with the calculations, the initial investment will pay off after 8 months of work. Return on sales in the first year of operation will be 27.8%.

2. DESCRIPTION OF INDUSTRY AND COMPANY
Today, the culture of public catering in Russia is actively popularized. The rapid growth in the number of establishments and the variety of proposals are shaping Russians’ interest in eating out, which is becoming a habit. Even during the period of economic crisis, the population does not refuse to visit catering establishments, although it tries to save on this type of expenses.

According to experts, the catering market has growth prospects, because it is quite capacious. In comparison with the markets of developed countries, the domestic market looks free – it has room to grow: both in terms of quantity filling, and in terms of consumer demand.

Statistics show that the average per capita expenditure on eating out in Russia is only 741 rubles per month, which is 15 times less than in the United States. In other words, an American with an average level of income spends 15 times more on food in public institutions than the average Russian. In the cost structure of the Russian population, spending on eating out is only 3.6% on average in the country, for Moscow this figure is four times higher.

The main problem of the public catering market in Russia is high dependence on the state of the economy, since the income level of the population corrects the demand for catering services. It is believed that under favorable market conditions, about 25% of catering establishments are at risk. In a crisis situation, more than 50% fall into the risk zone.

Over the past few years, the least successful period for this business was 2015: a fall in turnover of 5.5%, a reduction in the number of players in the market — in large cities, about 30% of restaurateurs left the market, the reduction of networkers’ activities, and the rapid increase in institutions. Against this background, the fall of the market by 3.7% in 2016 looks like an improvement in the situation.

At the end of 2016, the market volume of the public catering exceeded 1,200 billion rubles. The market was supported by the active development of fast food, which has become the most profitable sector of the market. This fact is due to the fact that consumers are striving to save money, not wanting to refuse to visit catering establishments. This trend of consumer behavior led to an increase in the popularity of the delivery service. Statistics show that over the past three years in Russia, interest in food delivery to homes has increased by 2-3%. It should be noted that at present food delivery services are provided by approximately 47% of networks. Therefore, the availability of food delivery services is a significant competitive advantage.

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