http://www.littleindia.com/news/123/ARTICLE/1445/2005-03-05.

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GUPTA CHAAT CENTRE

BY
NEHA GOYAL (78)
RASHMI KADAM (83)
PUSHKRAJ PANDIT (109)
JYOTI RATHOD (118)
PGDM 2007-09 TRIMESTER VI (FINANCE SPECIALISATION)

TABLE OF CONTENTS
1

SR.N

SUB NO

TOPIC

O
1

Executive Summary

Current Offering

PAGE
NO
1
1

SWOT Analysis
Survey Results

New Ideas for Implementation

Marketing Plan

Steps To Execution of the Plan

13

Financial Projections & Analysis

14

6
10
12

EXECUTIVE SUMMARY
Mumbai food comprises a wide range of exotic traditional cuisines and spicy
fast food. The local residents of Mumbai love to savour spicy chaat from the
road side food stalls of the city. Bhelpuri, Pav Bhaji, Pani Puri and Vada Pav are

some of the delicacies of Mumbai. There must be something about chaats or

street food of India that multinationals with their variety of chips and burgers
have not been able to replace. Despite the sudden mushrooming of American
fast food joints across Indian metros, churning out their monotonous fare of
burgers and French fries and insipid coffees, the grassroots level street food
and dhabas will always be there.
Mumbais chaat stalls are found in every corner of Bombay. Its an
indispensable part of street food culture in Mumbai. Chaats are really light on
the budget and can be eaten easily at anytime of the day and which is quite
filling.
The business that we have chosen to work on is Gupta Chaat Centre
which offers a variety of chaat items like Sev Puri, Bhel, Sandwich
(Cheese, Grill), Dahi Puri, Pani Puri and Cold Drinks Corn Dishes.
We think that Gupta Chaat Centre has a good potential to be an
effective business. A number of parameters like networking,
marketing, etc which are required for an effective business are
missing in the way Gupta Chaat Centre is presently running their
business either due to capital constraints or underutilisation of the
resources.

CURRENT OFFERING

SWOT ANALYSIS

Strengths
Space They have space for seating area which they have not utilised properly.
Staff/Skills The people working at Gupta Chaat Centre were mobile chaatwala
prior to becoming an employee at this centre. So they are already experienced,
skilled and efficient.
There are 3-4 people at the front and their roles are very clearly defined
according to their skills and competencies. For example, there is one person
responsible for collecting cash and taking orders.
Quick service and customer satisfaction is at the core of all their activities
Support activities - required for running this business are already in place. By
support activities we mean:
Transportation of raw materials, pre-preparation work (chopping, peeling, etc)
is all done with efficiency since the staff is already experienced.
Sourcing of raw materials - It is done in required quantities from optimal
sources and prices.
Weaknesses
Location - Due to its location, not many people are aware of Gupta Chaat
Centre.
Marketing They have not worked on marketing. The only marketing this
business has is word of mouth marketing.
Offerings Currently their offerings are limited.
Working hours Their working hours are from 2 pm to 10 pm. They are not
making use of the space available before 2 pm. They are paying rent on a
monthly basis for the whole day.
Opportunities
Marketing Marketing is one way in which they can make people aware of their
chaat centre. They can start by distributing pamphlets outside the colleges in
Matunga area since their budget is very low and the target audience will be
college goers.
Forward integration They can start catering business. They can send people
with mobile chaat at kids birthday parties, small functions, etc. And at these
functions or parties they can distribute pamphlets here as well.Also they can
set up stalls at weddings.

Expansion With the opportunities that we can explore by applying design

thinking to the existing business model expanding it to include a larger
customer base with diversified products.
Varieties/diversification Introduce other items like nimbu pani, jaljeera, vada
pav, ice cream, etc
Working hours (Presently 2 10) They should start some other business in the
same space which is idle before 2 pm.
Mobile chaat At a particular time of the day maybe when the colleges or
office gets over or during breaks they can send one of their staff members with
mobile chaat
Threat
Increase in the number of competitors
Since their centre is on rent, there is a possibility of the owner to impose
certain restrictions
Due to Low profits margins there is a lower reserve to compensate for a
seasonal or accidental loss.
Currently in this area there are 3 major colleges which form a major customer
base for the chaatwalas. In these respective colleges there are canteens which
have similar offerings. However, they fail to attract college crowd due to lack of
expertise at making chaats. This is a major reason chaat centres outside
institutes attract people. If the college canteens offer a similar offering as the
chaat centre outside then there can be a considerable reduction in the
customer base of these chaat centres which can seriously jeopardise their
business viability.

SURVEY RESULTS

1.

How often do you have chaat (frequency)?

Weekly
Once in 2 weeks
Once in 3 weeks
Once a month

29
8
7
6
50

2. Where do you go for chaats?

Particular chaat
Any chaat centre

16
34
50

3. Rank the below according to your preference: - ( 1 being highest and 5 being lowest) .
No two parameters can have the same.
Price
Taste /
Hygiene
Quantity

43
26
11
7
6

Location

13
100

4. How much time do you generally spend at a chaat centre?

Less than 10 min
10 mins - 20 min
More than 20 min

3
26
21
50

5. Do you avoid chaats because of the calorie content?

Yes
No

20
30
50

6. Would you be encouraged to have low calorie chaat?

7

Yes
No

38
12
50

7. Would you be tempted to spend more time at a chaat centre if there was sitting area?
Yes
No

31
19
50

8.Are you willing to pay more for a customised chaat?

Yes
No

33
17
50

9. If yes how much?

More that 3 Rs
More that 5 Rs
More that 10 Rs

19
10
4
33

10. Are you willing to try new items at a chaat centre?

Yes
No

27
23
50

11. Which of the following do you eat most no of times?

Bhel puri
Sev puri
Pani puri
No of These

7
15
13
15
50
Findings From the Survey
1.
Generally a Chaat is not
preferred by any criteria but the
choice is adhoc most of the time
2.
Generally price is the major
factor influencing the customers
3.
Most of the people spend
10 mins- 20 mins having chaat
leaving a good window to sell

more
4.
There is low awareness of the calories related to chaat but this
can be turned in an opportunity by making them conscious about
calories
5.
People come to socialize more than just have chaat when they
come in aleast 2 or more

6.
People like to customize their chaat as per their taste and
preferences.
7.
New items have a good potential if they fair well in the initial
phases of introduction as a good number of customers have shown
interest in trying something new
NEW IDEAS FOR IMPLEMENTATION
1) DIET CHAAT
Obesity has reached epidemic proportions in India in the 21st century,
affecting 5% of the country's population. India is following a trend of
other developing countries that are steadily becoming more obese.
Unhealthy, processed food has become much more accessible following
India's continued integration in global food markets. Indians are
genetically susceptible to weight accumulation especially around the
waist.
With increase in the awareness of health and other health related
businesses, there is an increasing trend of people in the urban areas that
are becoming more aware of the diet and calorie conscious while having
food.
Still there is a low level of consciousness among people for diet
related restriction while having chaat ( we found from survey). This can
be a real threat if people change their fast food habit w.r.t chaat and
vada pav being calorie conscious
To start with, this offering will be beneficial form two point of view
(calorie values analyses what we include). Increase in awareness of the
calorie intake when we have chaat will increase the customers comfort
feel about having regular chaat
Secondly it will attract people by clearing the perception of it being not
healthy (as a part of fast food)
Baked puri replacing fried puri used in pani puri , roasted boondi instead
of fried boondi, using mineral water instead of tap water, no potato as
they have high calorie content
2) CUSTOMISATION
In todays world most of the companies are opting for customisation to
attract customers. Companies are willing to go an extra mile to satisfy
the customers since there is huge competition in every field.
We at Gupta chaat centre are proposing to use this concept to not only
retain customers but also attract new customers as they will be getting a
lot of variety to choose from. In this concept we would be having a
different counter wherein the customers would be allowed to choose
from the vast varieties. These varieties would be different from the

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usual ingredients that are popular amongst all the chaat

centres. For eg:- when a person selects to have a plate of paani puri he
can decide to have all 6 puris in 6 different ways. This would also
involve the customers in the entire process.
Gupta chaat centre recently started new items like Punjabi bhel which
has become even more popular than the regular bhel since people want
to try something new every time.

3) SEATING ARRANGEMENT
We found from the primary research that many people spend reasonable
amount of time at the chaat center and it can be used as an opportunity
in the plan for business expansion
Generally at all chaat centres people stand and eat, but here we have
space for sitting. This can increase the waiting time to 20 mins . Now the
customer not only visits to eat and sit over there but also have a good
time and chat with friends and hence it also becomes a socializing place.
Same person does not eat the same thing twice. While they Chat over
Chaat other items like cold drinks and ice creams can also be sold to
them.
There can be a combo offering that includes a chaat and a cold drink
(with some discount)
For example, if bhel puri is Rs.13 and cold drink is 10, the total comes to
Rs.23
But we can sell a combo offer with a discount for Rs. 21
This is similar to Mac Donalds Happy Meal
It can be improved by offering a beautiful designed lunch pack. However
this can be feasible once it becomes widely acceptable and the sales
pick up.
4) Diversification of Offerings/Products
Currently their working hours are from 2 pm to 10 pm. The place is
unutilised in the morning. During this time, we can set up a stall to sell
cutting tea, nimbu pani and jal jeera. Though Cutting tea will be from 8
to 2 whereas nimbu pani and jaljeera will be sold throughout the day.
The cost of selling these items will be very low. So the investment
required for this will be negligible.

11

Mumbai has a hot and humid climate for a major part of the year.
Therefore, offerings like nimbu pani and jaljeera will always be in
demand and they are cheap too. So we can sell them throughout the
day.
Also there will be free home delivery of sandwiches between 8 am to 2
pm (Order size > Rs.30)
Since the chaat stall starts at 2 pm, there is an opportunity to set up a
cutting chai stall from 8 am to 11 am which can be an additional source
of income. Cutting tea is very famous in Mumbai. People generally have
it when they are going to office, before starting their daily routine and
during breaks from work.
5) MARKETING PLAN
Currently Gupta chaat Centre does not do much of marketing.
The customers come to know about the chaat center by word of mouth.
The fame of this chaat totally depends on the performance with respect
to the Quantity, Quality, Price and word of mouth marketing by regular
customers.
It is not feasible to advertise through sign boards or printing posters
since the cost will be considerable. The cheapest and most effective way
would be printing pamphlets and distributing that in front of colleges in
vicinity, outside hotels like DP which are frequented by many customers.
Putting up a stall in fairs and college fests. And using this opportunity to
distribute pamphlets as well.

Diversified products
and offerings
Diet Chaat

Customized chaat

Gupta Chaat Centre

Seating arrangement

Marketing

STEPS TO EXECUTION OF THE PLAN

1) Hiring and Training Human Capital

12

For expansion of the business new people will be required with the setup of
new processes. Currently they have 7 people, we are proposing to
increasing it to 9 or 10. More human capital will be required to include
mobile stalls and the setup of desk for customized chaat.
2) Purchase of new Instruments.
Implementation of new processes will require investment in form of a fridge,
chairs, utensils, Tables, small stalls etc. This will be a fixed investment over
time.
3) Building Supply Chain for new Items
New offerings like Ice creams and the modification to the existing offerings
like diet
chaat require new raw materials which were not required earlier. To keep
the business
going a supply chain which is similar to the existing procurement model
needs to be
built.
4) Planning SOPs (standard operating procedure) for the new products.
With the training of the new human capital there is a requirement for a new
process
plan in place, for the planning of an SOP of how the business will operate
and how
new functions are to be included in the current business model.
5) Advertising and marketing
The new business plan requires marketing in form of distributing
pamphlets, taking
catering orders, participation in college festivals etc. There needs to be a
shift of
marketing by word of mouth to making their presence felt in the targeted
locality/area.
6) Implementation of new unique selling proposition
The Unique selling propositions of business include setting up of sitting
proper
arrangement, offering wide range of products and diversifying the present
offering by
making customized and diet chaat.
7) Monitoring of new offerings
The success of the current business heavily depends on the monitoring of
the new
ideas that are to be implemented. It depends on:
If the customers are having other items while they sit at the chaat
center for a longer time?

13

If the chaat center is getting acceptable as a socializing place?

What are the sales of the modified offerings?
What is the awareness of the people after the marketing efforts. Has it
increased the number of people visiting the chaat center?

Sales Projections:
Volume/Day
SP
Total Sales daily
Annual Sales

Financial Projections & Analysis

Presently
Year 1
Year 2
Year 3
200
250
300
350
15
18
20
22
3000
4500
6000
7700
1095000
1642500
2190000
2810500

Year 4
400
24
9600
3504000

Year 5
450
26
11700
4270500

Costs (Annual):RM
Electricity
Rent
Fridge for ice cream
Depn @ 10%
Salary
Others
Total Costs
PBT
Taxes as per slab
system
PAT
Our profit as a group
Individual profit

420000
18000
180000
0

525000
30000
198000
60000

336000
30000
984000
111000

504000
30000
1347000
295500

656250
30000
217800
0
6000
529200
30000
1469250
720750

820313
30000
239580
0
6000
555660
30000
1681553
1128948

1025391
30000
263538
0
6000
583443
30000
1938372
1565628

1281738
30000
289891.8
0
6000
612615.15
30000
2250245
2020255

0
111000

14550
129100
280950
591650
140475
295825
35118.75 73956.25

243684
885264

374688
1190940

511076
1509179

Ratios
ROI
Projected Return

18%
188%
325000.0 720000.0

352%

526%

708%

Get out Point

zw

422500

ROI = PBIT / Total investments

ASSUMPTIONS

Presently they sell 200 plates per day.We assume volume/day will

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increase by 25% each year for 5 years

Presently avg SP is Rs.15. It will increase on account of inflation and the

changed rates of offerings

Rent increases by 10% and Salary increases every year by 5%

Due to the installment of new fridge for ice creams, the electricity cost
goes up 2500 per month (presently 1500 per month)

RM cost increases by 25% each year

We will be making an investment of around 2.5 lacs ( each one of us will

invest around 62,500). We will be entering into a 50:50 profit sharing
model till the year in which ROI on our initial investment crosses 130%
mark. We exit this year

Break even for us will reach in the 2nd year in the 9th or 10th month

Structuring of the agreement

15

Rent:
Sq ft Area
Rent per sq ft
Monthly Rent
Annual Rent

Presently
350
42.8571
15000
180000

RM Costs:
Weekly Raw Material
Dry
Dialy Raw Material
Monthly RM cost

16000
19000
35000

Employees:
Currently To be
Executives
6
9
Owner
1
1
Monthly Salary costs
28000
42000
Annual Salary Costs
336000 504000
Owner is also salaried (Rs.4000 equal to the other staff)
In year 1, sal increases by 5% i.e. 4200 each
Initial
investments
Deposits
License
Setup Cost
Fridge * 2

180000
10000
50000
65000
305000

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Pani-Puri is a well known snack among every body (especially girls).Pani-Puri has
different-different names in every state of India. Eating Pani-Puri is an Art. If you will not
practice it you can never enjoy its taste. Its sweet & salty taste gives us refreshness, just
like F5 on computers desktop. Bole too maza aa gaya. Me & my gang (group of girls, but
I am not a college gabber) are a big fan of Pani-Puri, because the shop is situated just in
front of my college gate, and the shop keeper very well knows the art of attracting
customer.
So the 4 Ps of Pani-Puri are given bellow enjoy it:Target Customers: Girls / boys accompany them compulsorily
Product

: Pani-Puri with multiple varieties

Price

: Depend on the Shopkeeper

Place
: In front of the girls college especially/ in
market where females often come for
shopping
Promotion : WOM (Word of Mouth)
Bas Naam Hi Kafi Hai
Segmentation : Micro Marketing
(Customization: according to the demand
of the customer)
USP

: Customer Satisfaction

PLC Stage

: Always on boom

Future of the Business : Immense Scope

The above detail explains the importance of the business of Pani-Puri. One can do a
small project on it (MBA & PGDM). I dont know why we like it. A common round shape
snacks with salty- spicy liquid, which we eat without counting. After taking a number of
pieces when we pay the bill, then only we came to know how many we have gobbled up.
So friends if you dont remember the taste of Pani-Puri then leave your seat & find its shop
& enjoy it right now no matter you are a boy or a girl. Of course monopoly is of girls here,
but no compulsion that boys cant eat it. So friends go for it

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http://www.littleindia.com/news/123/ARTICLE/1445/2005-03-05.html

Pani Puri or McDonalds? A Look At Globalization

The Lonely Canadian

With Salman Khan rapping "East or West, India is the best" and my mother
humming along in the background, I can't help but question the validity of the lyrics.
Sure, Salman Khans words were probably scripted by some underpaid Bollywood writer,
but the sentiment must have some sort of factual basis. I mean, it can't be that Mr.
Khan or my mother, blindly believe that having 1/3 of their nation living in abject
poverty that rivals sub-Saharan Africa makes it "the best".
Peering through a telescope - one fixated on the streets of Banglore or Mumbai gives
limits our view of India. I'm going to guess that Salman Khan and his Bollywood kin
have been bolstered by the events of globalization over the last two decades in making
their musical claim.
Excluding Bollywoods attempt at hardcore rap, I'm going to say that globalization in its
most basic form is benificial - economically atleast. Why? Thats simple - its the best
system we've got.
Globalization is the international system that replaced the cold war system. It effects
everyones domestic politics and everyones international relations. The cold war system
was defined by the idea of division, symbolized by the Berlin Wall. It was like the Nile
River delta, filled with dykes and damns. We could not go far without running into a
wall.
Globalization is defined by a single word - integration - and all the threats and
oppurtunities of this system flow from integration. It to is symbolized by an image, not
a wall but a web. Globalization has blown up the dykes and damns of the Cold War
System, and replaced the formers definitions of "First world" "second world" and "third
world" with, that of a "fast world" and "slow world".
Thomas L. Friedman
Globalization levels the economic playing field. For most countries, it was clear the old
system leaned heavily to Western (European and North American) economies.
Globalization changes that. It allows countries like India and China to capitalize on their
greatest natural resourse - their citizenry.
With both countries touting massive populations that surpass those of North America
and Europe combined, globalization allows for the unique oppurtunity for these
countries to promote competitive labor prices. Outsourcing is a product of this recent
phenomenon. Most people I've spoken to accept that globalization has in general, been
a good thing for developing nations. Yet the success of globalization seems to go hand
in hand with the fear of "Americanization".
Most cry that value of a society can't be measured by material prosperity alone. They
claim that the cultural cost of globalization does not justify the few rewards it offers. Is
this true? Is India for example, becoming a mini-America? Is that such a bad thing?
India is one billion people living in seven hundred thousand villages. She is not
represented on the streets of Mumbai, but in the rice fields of Vijayvada, the olive

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groves of Kerala and the fish markets of Manglore. Even with five thousand years of
history behind her, several foreign rulers including both Arabian and British influences,
many fear her daily "Americanization".
It doesn't take much to find an American touch in traditional India. What was once a
pani puri stand has been replaced by McDonalds and Pizza Hut - Gap is competing with
the local sari shops and Calvin Klein branded Kurta Pajamas are just around the corner.
Is this a bad thing? If we're talking about losing our identity as Indians, then yes. We do
not want our countrymen to mimic the babboon like calls of the NRI youth, who shouts
"I am DESI" not out of pride, but to remind himself that he isn't anything else. With its
current run of prosperity, India should not forget its heritage. It should focus on a more
Indian approach to globalization - it should g-localize.
G-localize? No, that isn't spelt wrong, its a new approach to an old idea. Rather than
focusing on globalization as the sole provider of wealth and prosperity, countries should
use it as an avenue to tap into local resources. The Indian animation industry does the
phenomenally.
Rather than using animation to perpetuate the sorry excuse for cartoons we see on
TeleToon or Nickleodean today, India has taken a page from the American guide to
globalization, and g-localized. While Americans were fixated on GI Joe in the 1980's,
catering toward their demographic, India is currently developing its own "GI Joe"-ish
cartoon. The project is a 26 part animated series that follows the life and times of an
eight-year-old Hindu deity, Krishna.
What makes this project a great example of g-localization isn't that it's inspired by the
local religion, it's the team that animates it. The graphic artists were all former
traditional artists and sculptors. Rather than having their heritage, and the heirtage of
Indian art slowly die away, they were re-trained using the latest pieces of American
software on American computers. They were offered a new medium to express their
art. Thomas Friedman was right when he said globalization was a web.
What India has shown is that, it is clearly capable of g-localizing, yet it doesn't do so on
a larger scale. She is still in the mindset that globalization = "Americanization". This
doesn't have to be the case. What globalization is offering is the ability to synergize two
radically different cultures and form something better, something that is more
appropriate for the next generation, one whom thinks on a global stage.
So can Globalization make Salman Khan's claim that "India is the best" true? Probably
not, but that doesnt matter - what matters is, at the end of the day it makes us all
better off.

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