1. SUMMARY OF THE PROJECT
The aim of the project is the creation of a catering company in the city of Krasnodar. Catering - the provision of services for servicing events in the field of providing food of restaurant type. In other words, in the case of an event (corporate event, wedding, etc.) not in a restaurant, but, for example, in nature, a catering company ensures the availability of food at the event. The format of the service can be anything - from the provision of equipment for rent (furniture, boilers, food warmers, dishes) to the event's full accompaniment with serving and serving.
The factors of success of the project include low competition in this segment, the growing popularity of field events in Russia, and the client-oriented approach of the project. The advantage of this format is also a low entry threshold and low current costs.
Investment costs are directed to the acquisition of fixed assets - equipment, furniture, utensils, as well as the organization of a starting advertising campaign. Also, investment costs include funds for the formation of a working capital fund, from which losses of the first periods are compensated, until the project returns to payback.
The project performance indicators testify to its high efficiency and investment attractiveness.
Table 1. Key performance indicators of the project
Payback period (PP), months
Discount payback period (DPP), months
Net present value (NPV), rub.
1 611 562
Return on Investment (ARR), %
Internal rate of return (IRR), %
Profitability Index (PI)
2. COMPANY DESCRIPTION AND INDUSTRY
Catering is part of the catering market. Despite a fairly small market share, which accounts for catering, this segment is subject to the same influences and patterns as the catering market as a whole.
According to experts, 2015 has been the most difficult for the industry in recent years. The main factors of influence were: a decrease in consumer activity due to a drop in real incomes of the population, as well as a food embargo, which led to higher prices and lower profitability of many establishments.
According to the results of 2015, the turnover of public catering in Russia decreased by 5.5% compared to the previous year.
Figure 1. Dynamics of the turnover of the public catering market in 2006 - 2016, billion rubles, % (data from Alfa Bank and RBC)
Restaurants of the middle price segment showed the largest drop - 12.4%. According to the results of 2015, the turnover of this segment amounted to 396 billion rubles. This segment was most affected by counter-sanctions - restriction of food imports, as a result of which prices for many of them increased significantly. As a result - the transition to products of domestic manufacturers, a change in the menu, rising prices for dishes. In addition, the economic crisis negatively affected the middle class, which was the main target audience of casual dining restaurants - people began to save, eat less outside the home.
Against this background, one of the main market trends is the shift in demand from the middle price segment to the budget, in particular, to fast food establishments. This trend is noted by many experts and market participants. It was fast food that became the only market segment that grew amid an unfavorable economic situation. In 2015, its growth amounted to 5.2% in real terms. RBC.research estimates the market volume of stationary fast food restaurants at 198 billion rubles.
Fine stability restaurants in the fine dining segment (high price segment) also showed high stability during the crisis. Here, the decline in volumes in 2015 amounted to only 0.2%, which is apparently due to the high loyalty of the audience, as well as the presence of additional value - people not only consider such establishments not only as a place to meet basic nutritional needs, but also as confirmation of social status, a place for business negotiations, etc. In addition, incomes of the well-off part of the population fell significantly lower than incomes of the middle class.
The most affected are the street food establishments - a decline of 5.5%. The reason is less spontaneous purchases by the population; the decision to visit a catering establishment began to be made more carefully = as a rule, in favor of budget restaurants, fast food restaurants and canteens.
Nevertheless, the segment of canteens also suffered quite a lot due to the appearance of a large number of budget restaurants offering various combo menus and business lunches at affordable prices for the population. This is especially true of chain restaurants, which have the ability to reduce the cost of dishes due to low purchase prices with large volumes. In addition, the dining room format is becoming less and less popular due to its low status. The decline in turnover in this segment was 3.8%.
All of the above changes in the market indicate its democratization - the share of budgetary institutions, including fast food, in the total market volume is growing steadily. In 2015, it increased by 3.3% and amounted to 21.0%, and as of May 2016 - already 21.8%. Growth in the market structure is also shown by chain restaurant projects. They also, as a rule, differ in democratic price and relatively low level of costs.
According to one of the official definitions, catering is a segment of the catering market associated with the provision of services at remote points, including all enterprises and services that provide contracting services for catering to employees of companies and individuals in premises and at catering, as well as providing event services various purposes and retail sale of finished culinary products. In practice, catering is not only the preparation of food and its delivery, but also the service, serving, decoration and other services.
The main types of catering include:
Stationary catering - cooking indoors, including catering in budgetary institutions (schools, hospitals)
Event catering - catering outside (catering)
Delivery contract - various delivery projects (catering for employees in the office)
Retail sale of finished culinary products
According to 2015, the global catering market amounted to $ 70 billion. The volume of the Russian market is more than 500 million dollars. At the same time, experts estimate the potential capacity of the Russian market at $ 10 billion. This indicates a lack of market saturation and wide development opportunities in this area. The capacity (potential) of the Moscow catering market alone is estimated at $ 1 billion. The annual growth of the Russian market corresponds to the world average - 10-12% per year, but it demonstrates a downward trend in growth.
The high market potential is evidenced by the fact that catering in Europe accounts for a little more than 30% of the food market “outside the home”. Thus, this format is ahead of even such a popular segment as fast food. In Russia, the share of catering is very small - according to some estimates, no more than 5% of the total.
Some market studies suggest that one of the most significant negative factors is a high level of competition and, as a result, low profitability. However, studies carried out as part of the feasibility study of the project indicate that, with a sufficiently large number of players in the region, supply does not exceed demand, and profitability can reach 30% or more.
Since the proposed menu is an important component of the catering service, market players, following the main trends of the catering market, offer more and more new products: a vegetarian menu, exotic and diet dishes, and so on.
According to experts, at the beginning of 2016, there were about 700 players in the catering market in Russia. At the same time, about half of them worked only in the Moscow market. Thus, medium and large cities (from 500, 000 people) accounted for an average of 5-7 operators. A feature of regional markets is the presence of established mini-markets with their own microclimate. An extremely low quality of processing applications is noted, which, according to experts, indicates a low market saturation. Also for regional markets is the lack of intelligible language for the competitive advantages of players - in fact, everyone offers similar services and about the same quality of their performance at very close prices. Personal relations play an important role, partnerships developed over the years, recommendations and active promotion activities: direct sales, advertising in search engines.
The main market problems can be attributed, first of all, to the factors typical for the entire Russian economy: a decline in real incomes of the population, a transition to a saving model of consumption, a weakening national currency, and rising food prices. Thus, a decrease in market growth is expected until stagnation.
The factors that will determine the further growth of the market include:
Deadline for the economic recession
Formation of a corporate food culture (allocation of budgets by employers)
Growth of income of the working population (ordering meals for the workplace)
The development of regional markets
The rate at which market volumes approach potential capacity
One of the most interesting trends in the development of the market, experts consider a possible change in the price segment. Previously, all players worked in the middle price segment, since the format of offsite events assumes the availability of income (both for corporate customers and private) at a level not lower than the average, then in a crisis, the situation has changed. If there is a business model that will provide cheap and high-quality service, enterprises in the economy segment will be very popular. However, there are no examples of such business models on the market yet.
The company is located in Krasnodar and covers the market, in fact, the city and the Krasnodar Territory. In the future, with favorable economic conditions, it is possible to enter the markets of other large cities in the region - Rostov-on-Don and Stavropol. Krasnodar is the administrative center of the Krasnodar Territory, one of the largest cities in the Southern Federal District, a major economic, cultural and historical center of the South of Russia. The population of Krasnodar is 850 thousand people, the population of the Krasnodar Territory is 5.6 million people.
The newly created company provides, according to the above classification, almost all types of catering services: stationary and event catering, supply contracts, retail sale of cooking, as well as the provision of equipment, furniture and tableware for rent. The staff of the enterprise is minimal - all business processes that are not related to key ones are outsourced.
3. DESCRIPTION OF GOODS AND SERVICES
The company provides catering services - from equipment rental to full support of events. An office lunch service is also available.
The company has its own food production and qualified personnel, which allows us to prepare high-quality dishes in large quantities. The proposed menu contains hot dishes, grilled dishes, hearty and light snacks, desserts, as well as soft drinks - tea, coffee, juices, mineral table water, carbonated sweet drinks. In addition to the standard menu, the company offers the production of dishes to order in accordance with the wishes and menu of the customer.
Types of events that the project serves:
Banquet - a festive feast with a wide range of hot dishes, desserts and drinks
Reception - an event with hearty and light snacks, when guests move freely around the site
Coffee break - breaks during trainings, presentations, meetings with soft drinks, snacks and desserts
Candy bar - a sweet table, usually at children's parties
Barbecue - hearty meat dishes cooked on an open fire for outdoor events
The company also owns a fairly large assortment of dishes, equipment and furniture, which can be used both for event catering and for renting it out.
Table 2. Assortment of furniture and equipment
Folding banquet table
Round cocktail table
Cases for banquet chairs
Textiles for tables in assortment
Assorted dishes (plates, appliances, glasses)
Drinking water cooler
Food warmer (with burners)
Table 3. Assortment of dishes for lunch with delivery
Beef stroganoff (stewed beef in sour cream sauce)
Baked sea fish
Baked chicken breasts with vegetables
Summer (fresh vegetables)
In Tab. 4 shows the main types of services provided, the average sales receipt and production costs per unit. Given the unique nature of each event, it is not possible to conduct a more detailed segmentation of services.
Table 4. Main types of services, production costs and average bill
GOODS / SERVICES
COSTS UNITS, rub.
TRADING VALUE, %
UNIT COST, rub.
Furniture and equipment rental
4. SALES AND MARKETING
The project is positioned in the middle price segment. The assortment contains dishes that can be attributed to the premium segment; they can be used for some events for which the customer has exclusive requirements. A sample menu is provided in Section 3 of this business plan.
Promotion is carried out using a number of tools. The priority is the so-called "guerrilla marketing", which does not require large capital investments. First of all, these are the personal connections of the project initiator and the project team. This can also include publications on social networks on personal pages using marketing materials - photo and video reports from events, customer reviews and so on.
Paid promotion in social networks is used: targeted advertising and promotion of publications. The following social networks and services are used: fb.com, vk.com, Instagram. As practice and market research shows, social networks give a significant return - up to 20% of the total volume of orders. Contextual advertising, Google AdWords and Yandex.Direct are also used. The estimated return on these promotion channels is up to 30% of the total.
The bulk of orders is expected to be attracted through active sales. A sales department is being formed, which is engaged in the processing of corporate clients - that is, enterprises that regularly conduct events. These include: banks, tour operators, car dealerships, pharmaceutical companies and others. Any company can theoretically use lunch delivery, however, when processing the market, preference is given to branches of large foreign and Russian companies, as well as companies located in closed territories with limited access to public catering establishments or with lack of infrastructure in the immediate vicinity. Sales specialists hold meetings and negotiations on cooperation, form long-term partnerships.
A separate category of clients is professional event organizers, event agencies, which in most cases are the first link with which the client contacts. The same category can also include venues for events where there is no own food production. All these enterprises can act as agents, involving the catering operator as a subcontractor in organizing events. This category can be called project partners. Agent remuneration is provided for them, amounting to 7-10% of the cost of the event. The amount of remuneration is determined individually depending on the profit brought by the agent.
The study of the competitive environment of the regional market indicates that the level of competition in this segment is relatively not high. To date, six catering operators operate in the Rostov-on-Don market. At the same time, they all offer approximately the same menu and level of service. The level of service is quite low: the deadline for submitting a commercial offer can reach several days, there are errors when serving dishes, the menu contains standard items. In addition, regular market processing is not carried out, there are no sales departments.
When forming the competitive advantages of the project, all the shortcomings and mistakes of existing players are taken into account. The main competitive advantages of the project can be formulated as follows:
Customer Oriented Approach
Prompt response to incoming applications
The presence of original dishes (desserts)
Active processing of the market by the sales department; use of scripts and regulations in the work that exclude errors during order processing
Using a CRM system to automate the process of processing orders, which also minimizes the possibility of errors and allows you to structure interaction with the client base
After-sales order processing - collecting feedback from the client in order to eliminate errors in business processes and x optimization
The distribution of the share of various types of services (in monetary terms) in the total income is as follows: equipment rental - 10%, event catering - 60%, lunch delivery - 30%. Despite the low profitability of equipment rental, it is an important way to promote the project. Thus, customers get the opportunity to get acquainted with the company, the quality of service, which, then, will positively affect the reputation of the company and will help to decide in favor of choosing a catering services operator during the next event.
Demand for event catering has a pronounced seasonal character. In December and early January, demand for corporate events rises, in February-April - presentations and cocktail parties, in the summer - for wedding events, in the fall - team building events. The most unproductive months are January, May and November.
Table 5. Planned sales
GOODS / SERVICES
AVERAGE PLANNED VOLUME OF SALES, units / month
PRICE FOR UNIT., Rub.
VARIABLE COSTS, rub.
Furniture and equipment rental
1, 386, 000
5. PRODUCTION PLAN
The company is located in a rented separate room, equipped in accordance with the requirements of the requirements of supervisory authorities. Earlier in this room there was a cafe. The room is rented with all kitchen and related production equipment. The total area of the premises is 60 m2. In addition to food production, the premises also have a warehouse of equipment and an office for sales and administrative staff. There are convenient entrances for loading and unloading.
Technological maps for production are developed by a qualified chef invited from Moscow. All ingredients are purchased in specialized stores and from suppliers serving the food industry. Particular attention is paid to the freshness and quality of the products. All purchased products and ingredients are certified.
Products for the event are purchased one day before the event, immediately before cooking, so you can avoid deep freezing of products, which leads to a deterioration in their taste. Products for delivery of project catering (lunch at the office) are purchased once every three days in accordance with the production plan.
Lunches are delivered in special containers made of polypropylene, having one or two sections, with a high degree of thermal insulation, which allows you to maintain the desired temperature of the products for an hour. The containers are suitable not only for transportation, but also for heating products in them in a microwave oven. In addition, such containers are provided to guests and at a serviced event so that the remaining products can be taken with you.
Depending on the format of the event, the process of organizing the service may look different. Preparatory work begins, on average, 1-2 hours before the event. If necessary, waiters are present at the event.
6. ORGANIZATIONAL PLAN
As the legal form of the project, SP was selected. The tax form is the simplified tax system with the taxation object “income minus expenses”, the rate is 15%. The entire process of project implementation can be divided into several main stages:
The pre-investment stage, during which market analysis is carried out, a feasibility study for the project is drawn up (business plan), preliminary agreements are made with investors, suppliers and potential customers; the pre-investment phase is currently completed
The investment stage, during which investment is made in fixed assets and intangible assets, all basic contracts are concluded, staff are hired and trained; duration - 1 month
Growth stage - the period during which the enterprise, carrying out operational activities, reaches the planned sales volumes; expected duration - 6 months
Maturity stage - the period of operating activities within the framework of established financial indicators; the duration at this stage is not determined, the decision to exit the company from the market and take profit is taken by the project initiator based on an analysis of the economic situation, the competitive environment and other factors.
All administrative and managerial functions are performed directly by an individual entrepreneur - the initiator of the project. For this, he has all the necessary knowledge and skills, as well as many years of experience in the field of catering. All employees are linearly subordinate to the project proponent.
The main staff (Table 6) is in the state, the auxiliary staff is involved as necessary: waiters, cooks, other staff; transportation of lunches and dishes for event catering is carried out by the personal vehicles of the project initiator and the technical project manager, a transport company is involved in the transportation of large furniture and equipment. In addition to sales specialists, the sales staff also includes the technical manager (curator) of the projects, who is responsible for the entire process of the event directly on the site. There are special requirements for this position, since the quality of events and customer satisfaction depend on the qualifications of the project curator.
Table 6. Staffing and payroll
Number of people
Technical Project Manager
₽ 124, 000.00
Social Security contributions:
37 200, 00 ₽
161 200, 00 ₽
7. FINANCIAL PLAN
The financial plan of the project is drawn up for a five-year period and takes into account all the income and expenses of the project. Revenue refers to revenue from operating activities. Other types of income (from investments, from the sale of fixed assets) are not provided for by the project. Revenues of the first year of the project - 12.9 million rubles, net profit (after tax) - 4.2 million rubles. The return on payback is three months after the start of the project. The proceeds of the second year and subsequent years - 16.0 million rubles, net profit - 5.8 million rubles.
The investment cost of the project is 1.25 million rubles, the bulk of which is funds for the purchase of equipment and furniture for events. Part of the investment costs is directed to the formation of a working capital fund, from which the losses of the first periods are covered, before the project reaches its payback. Own funds of the project initiator - 500 000 rubles. The lack of funds is planned to be covered by attracting a bank loan for a period of 24 months at 18% per annum. Loan repayment is carried out annually by annuity payments, credit holidays - three months.
Table 7. Investment costs
Warehouse and office equipment
Equipment and furniture
Website development and promotion
Starting advertising campaign
1 250 000 ₽
500 000, 00 ₽
Required borrowed funds:
750 000 ₽
The variable costs of the average bill by type of service are shown in Table. 4. Fixed costs include rent, utilities, advertising and other types of current expenses, as well as depreciation. The amount of depreciation is determined by the linear method, based on the useful life of fixed assets and intangible assets of five years.
Table 8. Fixed costs
AMOUNT PER MONTH., Rub.
Fuels and lubricants
Communication and Internet
101 500 ₽
A detailed financial plan is provided in App. one.
8. EVALUATION OF EFFICIENCY
Assessment of project effectiveness is carried out on the basis of a detailed analysis of the financial plan, cash flows, as well as simple and integrated performance indicators (Table 1). To account for changes in the value of money over time, the cash flow discounting method is used. The discount rate is accepted at the level of the risk-free rate (yield on government bonds of a comparable investment term - 8%) plus risk for a difficult economic situation - 4%: total 12%.
Simple (PP) and discounted (DPP) payback periods of the project - 6 months. Net present value (NPV) - 1.6 million rubles. The internal rate of return (IRR) is 22%. Profitability Index (PI) - 1.29. All these indicators indicate a sufficiently high efficiency and investment attractiveness of the project.
9. WARRANTIES AND RISKS
To assess all the risks associated with the implementation of the project, a detailed analysis of all external and internal factors is carried out. A summary analysis and measures to eliminate risks is given in Table. 9.
Table 9. Risks associated with the implementation of the project
Level of influence
1. Carrying out routine maintenance of equipment
2. Formation of partnerships with food production, which can outsource production in case of emergency
Production staff errors
1. Continuous monitoring of the quality of products
2. Getting feedback from customers
3. Periodic staff development (training)
Fall in demand for catering services due to worsening economic situation
1. Increasing the activity of the market processing by the sales department
2. Cost reduction due to the transfer of a number of business processes to outsourcing (up to production)
New market entry / tougher competition
1. The formation of a pool of loyal customers
2. Introducing new products
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