1.

0 Executive Summary

Delhi Darbaar Inc. London is subsidiary owned and managed by the Indian Private Limited Restaurant company Delhi Darbaar Inc. based in Delhi (India). Parently Delhi Darbaar is a Delhi based restaurant company which has a chain of restaurants all the over India. It is famous for its very fine and delicious Indian cuisine throughout the country India. Delhi Darbaar is interested in buying up the stake of about half of the London based and the largest Indian restaurant Akash in terms of space and size of the restaurant. Akash restaurant is the largest Indian restaurant in the world as well in IK which runs and governs the standard for the Indian food and cuisine in UK. Delhi Darbaar is looking forward to have a tie up with this company so as to enter up the market of restaurant in London. At the initial stage Delhi Darbaar is looking forward to spend about 1M to buy the stake in the akash restaurant and to expand its business in UK particularly in London. Delhi Darbaar will work to the success of its fine Indian cuisine in London and after the success of restaurant in London the company is also planning to open up two more restaurants in the similar bigger and metropolitan cities of UK like Birmingham and Manchester. Delhi Darbaar is located at the Prime location in Delhi at the New Friends Colony (NFC) which is famous for its food and the Indian cuisine which blends dishes and food items from all the parts of the country and the continental and sub-continental dishes prepared in complete hygiene and freshness. After the success of the restaurant in Delhi the company opened the restaurant in the different parts of the country as the metropolitan cities like Mumbai, Chennai, Bangalore, Kolkata, Ahmadabad, Jaipur and Indore. Now the company is planning to expand its business overseas in London. The plan of the company at the initial level is to have the partnership with the Londons largest Indian restaurant group Akash restaurant. The reputation of the restaurant in Indian is made up with the good food that they sell, their customer services and the taste and variety of the blends of the dishes from the different parts of the country. The restaurant is famous in Delhi because in the continental food section the dishes and the food that is sold in the restaurant is cooked by the particular resident of that zone or the specialist cook of the zone in India. As the Punjabi masala dishes are cooked by the Punjabi cook, the Rajasthan by Rajasthani cook,etc. The restaurant is planning to follow a similar trend in overseas well and will be hiring up the chefs with specialized cooking experience in the continental foods and dishes. Therefore the excellent customer services, the taste of the food and the management system will prove to be successful and profitable for the company and will be surely a hit in London. This venture and the subsidiary will also produce employment in the city for the Indian residents and will be a new experience to the people of England.

2.1 Company Ownership & Structure Delhi Darbaar is the Indian cuisine restaurant based in Delhi and is owned by Ali Balwan and also has its different outlets in other parts of the country only in the metropolitan cities. It is a Delhi based hospitality corporation which whose business is governed from Delhi and is owned by Mr. Ali Balwan and family. The hierarchy of the ownership and the management of the restaurant is explained below in the section s concerning the information of the restaurant. Delhi Darbaar will be making an investment of about 1M to buy the shares in Akash Restaurants group through which it can enter the market of hospitality in London. The future plans of the company is to open up its subsidiary in London but for that the company need a hospitality license which can be only generated with experience with any running company of the respected field so the company is buying up the shares of the Akash Restaurant group to have business in collaboration and step up in the market of hospitality and restaurants in London. The subdivision of the restaurant shares of Akash Restaurant can be clearly seen from the restaurant shares graph in terms of stake and purchase of the company shares, akash restaurant is the only restaurant in London who has its shares running in the market. Akash group in London is not only famous for its restaurants but also for its trademark that it provides to the small restaurants who outsource the food from this particular restaurant which could either be raw or a prepared meal. The graph shows the percentage of the share of the akash group owned by the Delhi Darbaar group and the other market competitors:

2.2 History Delhi Darbaar is a Private restaurant and also a limited company as it has its more outlets in the different parts of India as well it was started and found by the father of Ali Balwan in Delhi about 10 years before. It started as a small restaurant serving small meals and the local dishes to the customers in the unpopular and less populated area of New friends colony (NFC), over time as the market shown the growth and the construction of the mall in that area draw the attention of the people over that area and the good quality food and the management services and the customer services and loyalty increased the attraction of more and more people to the restaurant. Also the location of the restaurant was very prime there is a university near where the restaurant is located therefore it is also the hub of the students and teenagers since a long time and now it is a well known and a respected brand in terms of taste, quality and name. The group then started its first subsidiary in Mumbai a few years later in a commercial area which also resulted in the success as it named as the Delhi Darbaar which is also a sound name for the people of Mumbai and late it stated its branches in three more cities of India, now the company is trying hard to step its feet overseas first in London, and the next two also will be in UK after the successful launch of the restaurant and the analysis of its functioning. The purpose of expansion of the restaurant overseas is to make the brand international and also to generate a good revenue from oversea currency. Establishing of the new restaurant in London will also develop the good market respect and shares for the company and its subsidiary throughout the country India, which will result in the more business and revenue generation for the restaurant and finally making it in the category of five star rating restaurant and a restaurant serving the people in terms of fine Indian cuisine and blends of dishes from different parts of the world.

2.3 Start up Funding Delhi Darbaar is starting up with buying up the stakes of Akash restaurant because also of the limited amount of capital and money resources, the initial investment of the company is through the savings and the funds generated and preserved by the company and the company is taking up the loan from the bank for the initial investment which is such a large sum of money if the conversion should be done on the Londons great Britain pound to the Indian rupees, at the starting stage the company is investing about 1M in the akash restaurant group for the stake holding and share investment, the company Delhi Darbaar is putting up this investment because it is not possible for them to invest to open up a new restaurant in London, it has to be under a subsidiary of any already governing body for hospitality for food and cuisine and Delhi Darbaar will work as akash restaurant group at the beginning and then later it will separate to form a new subsidiary. 2.4 Source of Funds Delhi Darbaar will be using its own funds and through the bank loan to make up to the target of about 1M pounds which is a huge sum of money in terms of inr conversion and comes out to be around 9 crore of Indian rupees. Delhi Darbaar will make the 60% of this amount from its own savings which was hard earn by the company through time and are generated from the hospitality interests of the family business of the company since when it is started. 2.5 Company Locations and Facilities Akash Restaurant is located at Bradford Rd Cleckheaton BD19 3PN, and the new subsidiary of akash restaurant and Delhi darbaar will be opening at very prime location of Piccadilly Circus, London. The facilities provided in the restaurant will be delicious food of fine Indian cuisine and the continental and sub continental dishes which are outsourced from the akash restraint because this is a subsidiary restaurant. there will be a seating capacity of at least about 50 people within the restaurant, there will also be a take away and home delivery facility free of charge within a certain range of distance and for the meal above the certain amount. 3.1 Service Description

Delhi Darbaar London through their investment in the Akash Restaurant will be offering up the unique taste of Indian continental dishes which are cooked by the very experienced chefs and will serving the dishes which are very rare to find in the Indian restaurant in London also Delhi Darbaar will be using up its concept of fusion cooking which is mixing up of the blends of two states of India which comes out to be a unique and new combination of dishes with delicious taste. Delhi Darbaar will also have the drinking pub available within the restaurant with the drinks famous in India and the Indian brands like Kingfisher which are hard to find in London. Delhi Darbaar will also server assortments an appetizers, entrees and the drinks and desserts which could not be found in the Typical restaurants of Indian cuisine in India.

3.2 Competitive Landscape The population of Indian and Asian people in London is increasing year per year as there are lot of students which come to London for studying every year, therefore the demand for the Indian Cuisine is also increasing respectively as the students like to eat the food they theyve ate all their life. London has about more than 200 restaurants serving Indian cuisine. Some other British restaurants have also started selling Indian dishes but they focus specifically on the south Indian and the north Indian dishes. But all of them are less competitive than the Delhi Darbaar as they do not serve the mixed or the fusion food and most of the items of the Indian cuisine like a specific dish named as srikhand which is sold in India and is very famous among the people. Similarly Delhi Darbaar have the competitors but the menu that this restaurant will be serving is going to be distinct and unique than the others. Delhi Darbaar will be starting up with the economic prices of the meals and the food items keeping in mind the settling of the restaurant name at the initial stage also the pricing strategy will be modest as that would be the students mostly who will be eating up in the restaurant.

4.1 Target Market: Population, Household Statistics Summary London has about 14% of the population of the Asians in which the maximum percentage of people are from India, Pakistan, Sri Lanka, Bangladesh and China. From these residents most of the natives except the Chinese only eat the Indian food. Therefore these Asians will be the target of the restaurant, furthermore the restaurant, with the increase of the students and the part time Asian workers in London the most of the target audience of these restaurants are the Indian students who like to eat In the restaurants, the others do not spend much on the food outside because the currency of Pakistan and Bangladesh is weak and costs more to the people coming from there whereas the people of India have a strong economy than these countries except than the china therefore they spend on the food and beverages or rather by the other residents of the other countries unless they are working. Also these days most of the people from the world are the fan of the Indian food and also London is known as the most diverse city having a population of people from all round the world. London also has the higher median household and per capital income as compared to the average for the country therefore the people do not have any problem for the expenditure for food in the country and also like to eat out in London.

4.1 Target Market: Population, Household Statistics Summary (cont'd)

Population & Household & Business statistics summary for London Item Resident total population estimate 2007 Resident population 2000 Resident population 1990 Resident population 1980 % Change in population (1980 to 2007) Median Age London 1,232,425 1,155,458 1,454,539 1,425,286 12.47% 35.5 United Kingdom 259,466,485 287,525,956 246,729,833 227,548,895 31.12% 32.5

Civilian labor force 2007 Civilian labor force 2000 Civilian labor force 1990 Change in labor force 1990 - 2007 Households Household Size Median Household Income Income per Capita Persons below poverty line Male Population Female Population Married Population Single Population

936,043 856,237 786,356 15.36% 764,953 1.96 55,208 185,262 18.06% 47.73% 52.37% 33.37% 63.63%

153,456,064 132,573,063 185,860,034 29.633% 168,933,363 2.44 44,334 33,41 12.70% 48.65% 51.35% 58.69% 41.16%

4.2 Target Market: Business Statistics Summary

Most of the hospitality business or the restaurant business in London are owned by the Indians, blacks, Hispanics and womens which are particularly moresuccessfull than the averages of the national wages. The population of such a diverse population is the success code for the restaurants with Indian cuisine and will also prove to be successful for the Delhi Darbaar restaurant subsidiary in the name of Akash restaurant. this business of restaurant will also prove to be successful as the customers who like to shift their taste than the regular and who like to go for diversity in the food items and dishes while eating out Indian cuisine is the most popular of them all. The sales per capita is the measure of the expenditure that could be done in London while eating out in restaurants is 6,550 which is about half of the national average retail sales per capita of 14,119 this grows the position of London in terms of business and the restaurants.

Business Statistics for London Item Black-owned firms, percent Asian-owned firms, percent Hispanic-owned firms Women-owned firms Manufacturers shipments (1000) Wholesale trade sales (1000) Retail sales (1000) Retail sales per capita London 10.04% 20.45% 12.46% 21.66% 14,940,635 140,669,286 22,954,565 14,748 United Kingdom 3.2% 9.8% 7.8% 18.2% 3,953,176,792 2,623,735,115 2,057,471,943 15,613

Accommodation and foodservices sales (1000) Building permits Current Unemployment Rate Sales Taxes

12,764,678 6790 4.20% 9.63%

439,698,718 1,238,963 5.60% 5.89%

4.3 Target Market: Age & Race Demographics The graph given below shows clearly that the population in London is having a share of ages between 18 years and 65 years which comes out to be 61% again ahead of the national average of 59%, age is an important factor in the restaurant business as the group of age which has the most running income and is stable in the life is more likely to eat outside in the restaurants. At the point of the age comparison the ages which spend mostly on eating outside in the particularly the restaurants with the Indian cuisine would be the students who have come to study in England from different part of world for Indian cuisine mostly form Asia. The student age then is going to be near from 18 years to 30 years. Also the part time workers who are living in London are the next favorite customers of the restaurants with Indian cuisine.

Race Demographics: The graph for the expenditure on food on eating in the restaurants can be clearly seen below with the division of the percentages on the people belonging to different region and ethnicity. As it has also been mentioned previously that London city has the most diversity in the UK and Europe, it has people coming and belonging to almost all the parts of the world, and those people work in London as well but the number of people that spend their income on eating out in the restaurants according to their class division is clearly shown below. Among which most of the British people like to eat out in the fast food and the take away restaurants which are a global brands now like McDonalds, Subway, Berger King and other take away. But the people with different ethnicity like the Indians, or Asians except the Chinese they like to have a food with a heavy meals and food full of spices and condiments as when eating out, therefore they like to go in the restaurants. And the blacks also like to eat in the restaurants because they also like the heavy meals of chicken and meat in their meals which is not served at the take away, furthermore when a customer plans to eat out he look forward to eat in a peace environment and relax while eating.

4.5 Target Market: Education Profile With more 4 year college students and graduates than the national average, London City easily stands out as having a population of relatively better educated citizens. For restaurants serving ethnic cuisine like Indian foods this is a very important element in the marketplace. We strongly believe that fusion Indian cooking is well received by clients with relatively higher education and economic backgrounds.

London, NY - Education profile of population Education School Expenditure Pupil / Teacher Ratio Students per Librarian Students per Counselor 2 yr College Graduates 4 yr College Graduates Graduate Degrees High School Graduates London, NY 7,461 20 1441 597 3.45% 25.48% 23.06% 77.69% United Kingdom 6,058 15.9 907 546 8.22% 15.16% 7.16% 79.62%

4.6 Target Market: Occupational Analysis of Population A quick look at the occupations of the London City residents clearly shows a relatively high proportion of the workforce involved in Management and Professional occupations. Since the office crowd is a very important element of our revenues and brings in almost 40% of our total income, we think that this demographic pattern works very well in our favor.

London, NY - Occupation analysis of population Occupation Management, Business & Financial Operations Professional and Related Occupations Service Sales & Office Farming, Fishing & Forestry Construction, Extraction & Maintenance Production & Transportation London, NY 21.44% 33.76% 12.73% 23.54% 0.03% 2.35% 6.16% United Kingdom 13.61% 20.24% 14.75% 26.74% 0.74% 9.48% 14.44%

4.7 Industry Analysis: Household Food Expenditure Analysis In the following table we have analyzed the major trends that affect our industry and that is the amount spent by households. While the larger survey deals with monies spent by a household on every item, we have decided to focus on the part that matters the most to us and that of course the amount of money spent by households nationally on foods away from home. In 1997 we find that out of the total 104 million households in the nation the average annual expenditure was approximately 33k per household. Of this 2,876 or roughly 8.50% of the total household expenditure was spent on foods consumed at home. Another 1,823 or roughly 5.40% was spent on foods away from home. Also, 309 or roughly 0.90% was spent on alcoholic beverages. When we look at 2007 we find that out of the 118 million households in the nation, the average annual expenditure is 48,398. Of this 3,417 or 7.06% of the total expenditure was spent on food consumed at home. Another 2,694 or roughly 5.60% was spent on food away from home. Alcoholic beverages consumption remained roughly the same at 1% or 497 in 2007. The most important trend that matters to us is of course the expenditure on foods away from home. It is significant to note that while this expense of 5.60% of total expenditure does not mean that all the money is spent on full service restaurants let alone fine Italian dining, it does however show that the consumers preferences nationally towards eating out have not changed significantly between 1996 and 2007.

Clearly, as long as this trend of consumption of food away from home continues, all food purveyors including fast food shops, limited service restaurants and full service restaurants like us will do well. It is important to note that the 10 year period covered above does not cover a protracted recession but does include the slowdown of 2001 2002 during which the spending habits of the national population did not change towards outside food consumption.
Average Annual Household Food Expenditures: 1997 to 2007 No. of households Avg. Annual Expenditure: (000) Expenditure food at home 104,212 105,576 107,182 108,465 109,367 110,339 112,108 115,356 116,282 117,356 118,843 33,797 34,819 35,535 36,995 38,045 39,518 40,677 40,817 43,395 46,409 48,398 2,876 2,880 2,780 2,915 3,021 3,086 3,099 3,129 3,347 3,297 3,417 Expenditure: Total Expenditure on food away from Expenditure on Alcoholic home food beverages 1,823 1,921 2,030 2,116 2,137 2,235 2,276 2,211 2,434 2,634 2,694 4,699 4,801 4,810 5,031 5,158 5,321 5,375 5,340 5,781 5,931 6,111 309 309 309 318 372 349 376 391 459 426 497 5.39% 5.57%

Year 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Food away from home as a % of Total Household Expenditure in 1997 Food away from home as a % of Total Household Expenditure in 2007

5.1 Competitive Edge

We believe that in todays competitive full service restaurant business there are three things that are key to success:

Location and Leases Excellent and diverse menu priced reasonably Ambience and customer service

We believe that at Welcome Restaurants USA we have all three elements down pat! Our choice of locations is the city of London. A business friendly local government coupled with a highly educated, well heeled population is the perfect venue for fine Indian dining offered by Welcome Restaurants USA and Indian Express Restaurants. Our diverse menu selection during both lunch and dinner hours has been developed after years of experience in the industry by our chefs. Care has been taken to pick crowd pleasers and house specials that are not easy to find in Indian dining and the fare is priced very reasonably in line with local competitors. 5.2 Positioning We are positioning ourselves to market to the middle to upper middle class clientele of well heeled working professionals who live and work in London City. Our typical customer is well educated having a graduate degree, working and/or living in London city, looking for a tasteful and different Indian dining experience than what is offered by the local deli. 5.3 Advertising Strategy Welcome Restaurants USA Inc. will advertise using all possible forms of media including print, radio and television.

Our media advertising will be focused on publications serving the Indian community India Abroad and Desk Talk. Our online advertising will be focused on websites like Citysearch.com, yelp.com, restaurant.com and seamless web. Local promotions will also include sponsorship of local charity events and participating in food drives and other local causes.

5.4 Strategic Alliances We currently have an alliance with Seamless web that allows clients to place their orders via the web. We have been able to mind a steady base of customers from local firms like Credit Suisse, JP Morgan Chase, MetLife and other non-institutional clients as well. 5.5 Sales Strategy There are two ways to approach sales one is go with volume and this is the typical modus operandi of the fast food industry; many full service restaurants also use this approach. The other is go with quality service at market rates but focus on building a richer customer dining experience so that we can cultivate a permanent relationship with the customer. We favor the later approach at Welcome Restaurants USA Inc. 5.6 Sales Projections We believe that it is very important to be realistic in the projection of sales in the planning process and have decided to look at three possible market scenarios in our sales projections.

Slow market: As the words imply, this would indicate a weak market for the full service restaurant business as was the case after the attack of September 11, 2001 where the full service restaurant business suffered its worst days in recent memory. This experience is also possible during a recession where folks decide to be cautious with their disposable income. Good market: This would be a regular and normal environment during which healthy business activity can be experienced by us in the full service restaurant business.

Great market: This would suggest an excellent operating environment with the consumer feeling very confident and spending on food away from home a lot more than normal. The dot com era of the late nineties was such an operating environment where full service restaurants did extremely well.

5.6 Sales Projections (cont'd) Also indicated in our projections are the seasonal adjustments that are normal in our business with January to March being tepid, business picking up in June and July, and of course the best time for us being the holiday months of November and December. We have also indicated projections for 1, 2 and 3 restaurants. Our first initiative is to the expand the operations of Indian Express Restaurant Inc. Once we have consolidated our investments and operations there we intend to expand this investment into one or two new operations.

Welcome Restaurants USA Inc. Sales Projections: 2009

SLOW MARKET NO. OF RESTAURANTS 1
Jan 75,000 Feb 90,000 Mar 105,000 Q1

GOOD MARKET NO. OF RESTAURANTS 1 93,750 112,500 131,250 337,500 2 187,500 225,000 262,500 675,000 3 281,250 337,500 393,750

GREAT MARKET NO. OF RESTAURANTS 1 107,813 129,375 150,938 2 215,625 258,750 301,875 776,250 3 323,438 388,125 452,813 1,164,375

2 150,000 180,000 210,000 540,000

3 225,000 270,000 315,000 810,000

270,000

1,012,500 388,125

Apr 105,000 May 120,000 Jun 150,000 Q2

210,000 240,000 300,000 750,000

315,000 360,000 450,000

131,250 150,000 187,500

262,500 300,000 375,000 937,500

393,750 450,000 562,500

150,938 172,500 215,625

301,875 345,000 431,250

452,813 517,500 646,875

375,000

1,125,000 468,750

1,406,250 539,063

1,078,125 1,617,188

Jul

135,000

270,000 210,000 270,000 750,000

405,000 315,000 405,000

168,750 131,250 168,750

337,500 262,500 337,500 937,500

506,250 393,750 506,250

194,063 150,938 194,063

388,125 301,875 388,125

582,188 452,813 582,188

Aug 105,000 Sep 135,000 Q3

375,000

1,125,000 468,750

1,406,250 539,063

1,078,125 1,617,188

Oct 135,000 Nov 150,000 Dec 195,000 Q4 480,000

270,000 300,000 390,000 960,000

405,000 450,000 585,000

168,750 187,500 243,750

337,500 375,000 487,500

506,250 562,500 731,250

194,063 215,625 280,313

388,125 431,250 560,625

582,188 646,875 840,938

1,440,000 600,000

1,200,000 1,800,000 690,000

1,380,000 2,070,000

Tot 1,500,000 3,000,000 4,500,000 1,875,000 3,750,000 5,625,000 2,156,250 4,312,500 6,468,750

5.6 Sales Projections (cont'd)

Welcome Restaurants USA Inc. Sales Projections: 2010

SLOW MARKET NO. OF RESTAURANTS 1
Jan Feb Mar Q1

GOOD MARKET NO. OF RESTAURANTS 1 98,438 118,125 137,813

354,375

GREAT MARKET NO. OF RESTAURANTS 1 113,203 135,844 158,484

407,531

2 157,500 189,000 220,500

567,000

3 236,250 283,500 330,750

850,500

2 196,875 236,250 275,625

708,750

3 295,313 354,375 413,438

1,063,125

2 226,406 271,688 316,969

815,063

3 339,609 407,531 475,453

1,222,594

78,750 94,500 110,250

283,500

Apr May Jun Q2

110,250 126,000 157,500

393,750

220,500 252,000 315,000

787,500

330,750 378,000 472,500

1,181,250

137,813 157,500 196,875

492,188

275,625 315,000 393,750

984,375

413,438 472,500 590,625

1,476,563

158,484 181,125 226,406

566,016

316,969 362,250 452,813

1,132,031

475,453 543,375 679,219

1,698,047

Jul Aug Sep Q3

141,750 110,250 141,750

393,750

283,500 220,500 283,500

787,500

425,250 330,750 425,250

1,181,250

177,188 137,813 177,188

492,188

354,375 275,625 354,375

984,375

531,563 413,438 531,563

1,476,563

203,766 158,484 203,766

566,016

407,531 316,969 407,531

1,132,031

611,297 475,453 611,297

1,698,047

Oct

141,750

283,500

425,250

177,188

354,375

531,563

203,766

407,531

611,297

Nov Dec Q4

157,500 204,750
504,000

315,000 409,500
1,008,000

472,500 614,250
1,512,000

196,875 255,938
630,000

393,750 511,875
1,260,000

590,625 767,813
1,890,000

226,406 294,328
724,500

452,813 588,656
1,449,000

679,219 882,984
2,173,500

Total 1,575,000

3,150,000

4,725,000

1,968,750

3,937,500

5,906,250

2,264,063

4,528,125

6,792,188