MP12001- Adity Ganguly
MP12020-Gautam Kumar
MP12034-Mainak Sinha
MP12036-Manoj Kumar
MP12040-N Kannan
Se ng-up of a restaurant in Jamshedpur
Preface (Kannan)
Food business is one business which has been growing steadily over the years. Various
groups and organizations have set-up their own food chains across the globe and have
been quite successful. The success of the industry has prompted Mr. Sen of the Kolkata
Sweets Group to think about setting up a restaurant in Jamshedpur. The organization
currently is in the sweets business and has many outlets in the eastern region of the
country spread across West Bengal, Jharkhand and Bihar.
Mr. Sen already has a sweets’ outlet in Jamshedpur too. Recently he has bought a big
plot of an existing warehouse (which is not under use) in a very prominent place of
Jamshedpur. Considering the size and location of the plot Mr. Sen wants to open up a
restaurant. He could have very well opened up another sweets’ outlet but since he
wanted to explore a new business he is considering a restaurant. It must also be noted
that the restaurant business would be a simple extension of his current business but
would definitely give him a new avenue to venture into and explore in greater details.
Mr. Sen, a 2nd generation businessman, although has a good knowledge of the sweets’
business has little knowledge about running of a restaurant.
Although Mr. Sen has decided to open up a restaurant and started the planning of
finance for it, he is not very confident about the kind of restaurant that he needs to open
up to ensure success. He feels the risk involved is too high for the investment that he
will be making. He therefore wants to have a detailed understanding of the market.
Therefore he has engaged the Vector Consultancy Firm.
During his discussions with representatives of Vector Consultancy, Mr. Sen made it
clear that financing the project is not a constraint for him. He had also specified that
being in the food processing and selling business, he has a fair deal of knowledge about
the licenses and permits required for the setting up of the food outlet. He also reinforced
the fact that he has some contacts and knowledge about the distribution and
procurement channels in Jamshedpur.
Vector Consultancy was expected to give a detailed analysis based on factors like the
food preferences and tastes of people of Jamshedpur, eating out patterns and the
frequency intervals of eating out, spending capacity of the people, preferences of
different age group people, ambience and interior decorations, advertisements and
marketing requirements, presence of other big food chains in the proximity, other
services that can be offered, etc.
Based on the discussions with Mr.Sen, Vector Consultancy chalked out their research
plan and design.
Decision Area
Given that Mr. Sen has decided to open up a restaurant, the decision that he has to
make is what type of restaurant should he be opening, i.e, the positioning of the
restaurant in the market.
