COLLEGE CANTEENGROUP 2:

Topic: Prepare a detail business plan for your own college canteen or hostel mess. Study and workout the Amount of Fund, Financing plan, Feasibility study, Strategic competitive advantage/disadvantage, Risk analysis.

Group Members:Nikhat Parveen AlamVivek SinghSaurav PittyAnkit GargAanchal Arora

What is a College Canteen?

A cafeteria is a type of food service location in which there is little or no table service, whether a restaurant or within an institution such as a large office building or school; a school dining location is also referred to as a dining hall or canteen. Thus, a cafeteria in a college building is called a college canteen. The canteen service is available both to the staff and students of the college.

Other namesA cafeteria in a U.S. military installation is known as a chow hall, a messhall, a galley, mess decks.British Armed Forces parlance, it is known as a cookhouse or mess.Students in the USA often refer to cafeteria as lunchrooms.Some monasteries, boarding schools and older universities refer to their cafeteria as a refectory.

SWOT

STRENGTH• In-house food and beverage

facilities• Affordable price• Wide options available for

non-vegetarians and vegetarians

• Sufficient fund for starting a canteen

WEAKNESS• Staff shortage• Not a big space provided

SWOT (Continued)

Opportunity• Revenue generation• More than 250 people will

have access to the service

Threat• The hawkers below the

college • The food court• Other eating joints

Limitations

• Space provided is not very big• Not enough staff• Expansion scope is less due to space shortage

Objectives•To find out the feasibility , strategic competitiveness and risk of setting up a new canteen in our college• To provide service to students and staff of the institute• To provide at reasonable cost a wide variety of healthy, nutritious enjoyable food and drink•Any profit will be used for the benefit of the institute

Risk factors•Students might prefer outside food• Wastage• Delivery• Satisfying customer’s needs• Freshness of the food• Staff problem

FinancialsProfit and Loss Account Year 2011

To Staff 72,000 By Sales 20,54,400

To Supplier (Mrs. Sharma) 10,62,000

To Raw material 2,16,000

To Overhead Expenses 30,000

To Travelling expense 6,000 To miscellaneous expenses 24,000

To Depreciation 3550

To Profit 6,40,850

9,96,000 9,96,000

Financials

Balance Sheet (2011)

Capital 1,50,000 Machinery 35500

Add: Net profit 6,40,850 7,90,850Less:Depreciation 3550 31950

Current Liability (Creditor) 88,500

Cash in hand 5,000

Cash at bank 8,38,850

8,79,350 8,79,350

FinancialsProjected Cash Flow Statement

2011 2012 2013 2014 2015

Net Sales 14,90,400 1564920 1643166 1725324.3 1811590.515

COGS 8,49,550 892004.4 936604.62 983434.851 1032606.594

Depreciation 3550 3195 2875.5 2587.95 2329.155

Total expenditure 14,10,000 1486674 1561007.7 1639058.085 1721010.989

EBIT or PAT(as no interest or tax) 80,400 78246 82158.3 86266.215 90579.52575

PAT+Depreciation 83,950 81441 85033.8 88854.165 92908.68075

Less: Change in NWC 0 42759.2 39905.46 41900.733 43995.76965

FCF 80,400 35486.8 42252.84 44365.482 46583.7561

Discounting Factor (8%) 8% 0.925925926 0.85733882 0.793832241 0.735029853

PV 6432 32858.14815 36225 35218.75 34240.45139

Thus, since the PV is positive all throughout it is feasible to go ahead with this canteen.

Feasibility of the Project

•Positive cashflow

• PV is positive

• Feasible project

• Profitable for 5 years

Recommendations•It is advisable to go ahead with the proposal of having a college canteen as due to monopoly power in the college premises the college will benefit and we, as the initiators will also succeed in our venture.

•The fixed assets we have will not be replaced for the next 5 years in order to keep the expenses minimum. We will buy the best quality machines so that they sustain for a longer period.

•The menu of the canteen will change with time but it will be altered with an item of the same cost so that the students are given the items at the cost permitted

•The food left over will be given to an old age home in Sealdah. Any student passing that area while going home will be given the responsibility to drop it there so that transport cost is saved

•If there is college on Saturdays then students will be allowed to prepare food items from their homes n sell it in the canteen and this profit will be entirely owned by them

Conclusion• We will work with Mrs. Sharma on a contractual basis and she will be paid on the 1st of every month

•The food will be delivered by her to our college premises so that no extra cost is incurred by us on transport

•We benefit as there is no set up cost to be incurred and no electricity charges to be borne by us

•There will be a profit sharing ratio of 60:40 between the college authority and us

•There is no headache of labour as the college will provide us with the staff

•Any one out of the 5 of us, turn by turn, will keep a check on the accounts on a daily basis

Primary data collected

QUESTIONNAIRE FOR A COLLEGE CANTEEN.docx

QUESTIONNAIRE FOR COLLEGE CANTEEN (Approval).docx

THANK YOU!