Sandwich Stall

Business Plan

By
Anila lakshmi D
Prerna V Nagpal
Manish Mutha
 Business plan for Sandwich outlets

How we arrived at this idea

When doing the sector analysis for chocolates, we identified the product of
chocolate sandwiches to be our idea. But after studying the market for
sandwiches we realized the need for healthy, hygienic offering on the go.

We finalized our plan to serve Sandwiches –Our specialty being chocolate

sandwiches.

Hence our purpose is defined as serving healthy and hygienic food on the
go.

The USP of our service being cleanliness and hygiene for serving healthy
food.

Operational plan
Locations for the stall

Initial execution plan will have 8 stall and the locations as below.

Educational Institutes Railway Stations

KJ SOM Dadar

SP JAIN Andheri

IIT Mumbai Church Gate

NMIMS CST

Why these educational institutions

Reason for choosing the only these educational institutions is for tapping on
the reach factor i.e. these colleges are the ones which have compulsory
residential programs for the students and they offer both graduate and post
graduate programs which implies our reach to the customer is higher .
Why these railway stations

We have chosen the stations as they have greater reach to the large number of
people as these are the stations which have a highest density of commuter traffic
daily.

Dadar, CST: Local and outstation trains start from this station. Hence base to a
large customer reach.

Andheri : Lot of colleges situated in that area which means lot of students travelling
from andheri station.

Churchgate : Very close to Gateway of India and Taj and hence lot of visitors visit
this place.

Central Warehouse location

The central ware house will be located at wadala as this will be very close to the
dadar market where we plan to procure our raw material from.

Size of the stall

Set up kiosks (5*2.5) in strategic locations

Reliability Reasons -Sources of supply

Bread

Wholesale Bread supplier in Washi

Reasonable prices and supplies to many places on contract basis

Vegetables

Dadar market West ,where we get prices at wholesale rates

Butter/ Cheese

Amul and Gowardhan for variants of cheese to be used in each sandwich.

Machinery

Compaq industries from Ahmedabad as it is most reliable and trusted in this field.

Equipments ,facilities, infrastructure and Warehouse

Equipments: Bolier, Refrigator, Peelers,Utensils,2 Trollies, Facilities, cold storage ,

big Mixers.

Facilities: Water & Electricity, Communication, security

Infrastructure : Computer, cupboards, Fans, tubelights

Logistics : Vans

Kiosk

• Equipments: Grill Sandwich Maker, Containers, Trays, Paper plates, Dustbin,

tissues Paper Knife, Spoons, hi-tech cutter.

• Facilities: Water & Electricity Facilities, Uniforms for Employees, Gloves,

Feedback form

• Infrastructure : Good Kiosk design.

Logistics

Vans for forward and Backward supply.

Human Resources

• One supervisor – 12th pass

• Accountant – B.com / Computer skills, Local

• Manpower – 22(warehouse + Kiosk) – from UP/Rajasthan/Bihar.

Training

Sop’s for all activities in the store, Hygiene Maintenance

Retain personnel

Encouraging employees by taking forward their ideas if good, Incentives, medical

needs,

Order fulfillment

• Reduce the waiting time

• Accurate demand forecasting and keep the raw material in surplus for most
demanded items.

• Basic customization

Customer Service

Treat customers with respect and greet them

Assurance of Hygiene
Display the Menu appropriately to save his/her time

Assuring Quality

• SOP –Standard operating procedures for backend and front end operations

• Some of them are

• Standard dimensions in cutting vegetables

• Chutney made with hygienic water.

• Not using spoilt vegetables.

• Closed containers for chutneys/butter/cheese.

• Using gloves (hands, hair)

• Clean utensils

Fixed Costs

Personal computer: 25,000

Griller Machine: 6000 * 10 = 60000

Cupboards (warehouse) 3000

Fans : 8* 600 = 4800

4*1000=4000

Tube lights = 40 * 200 = 8000

Uniform Cost : 35 * 600 = 21000

Cutter : 10 * 200 = 2000

Utensils(Steel) : 20000

Plastics Boxes : 100 *200 = 2000

Small fridges (at kiosk) : 8 *3500=28000

Big fridge's (warehouse) 2*7000 =14000

Kiosk Design : 75,000* 8= 600000

2 trolley = 2*3000 = 6000

Boiler 2 ,00,000
 Weighing machine 1 * 6000=6000

Stationary : 10000

Shoes : 20 * 500 = 10000

Total Fixed costs = 1023800

Variable costs / day

Vegetable costs /day : 4875 ( requirement:60 kg – potato,

tomato,onion,cucumber 30 kg – capsicum 30kg- beetroot- 30kg) ( price per kg :
potato – 15/kg, tomato – 12/kg, capsicum – 25/kg, onion- 15/kg, beetroot- 10/kg,
cucumber – 10/kg)

Bread : 10 bread packets per kiosk – 10*80*27 = 2160

Butter = 1400 (500 gms = rs 55)( assuming that 10gms will be used per
sandwich)

Cheese (1000 gms – rs 163)(no of cheese sandwiches per kiosk = 40) ( per
sandwich 20 gms of cheese) = rs 1050/day

Chocolate =2400 ( 160sandwichwes * 15/sandwich)

Wages 3000/person/month= 100/day * 18=1800

Salary for Accountant = 8000/30 = 267

Salary for Supervisor = 5000/30 = 167

Electricity cost for kiosks = 3200/month= 107

Electricity cost for the warehouse= 3000/30 = 100

Rent for warehouse = 15000/30 = 500

Sauce = 500

Paper plates (1400 * 0.5) = 700

Masala powder = 160

Salt = 100
Disposable Handglows & Caps(18* 30) = 540

Washing Soaps = 20

Tissue Paper = (1600 * 0.2)= 320

Telephone bill = 2000/30 = 66

Van : will hire on contract 15000pm = 500 /day

Carry bags:100

Licensing cost = 850/30 = rs 29

Total Variable cost/ day : 3.5

Factor of safety : 2

Total cost : Rs7

Cost per Sandwich

Bread : Rs 3 for 3 slice

Vegetables : Rs 4.50

Butter, Chaat masala & chutney: Rs 2.50

Toasting Cost : Rs. 1

Tomato Sauce : Rs .50

Tissue Paper & Paper Plate : Rs . 50

Total Cost : Rs.12

Selling Price : Rs. 40

Profit : Rs.23/ per sandwich

Variable cost per day = 16200(approx)

No of sandwiches sold in a day =1200

Variable cost per sandwich = Rs.7

Break even Analysis

No of break even units

 • Total fixed cost / Marginal cost = 10,23000*2/15= 136400 sandwiches

• No of day Required in breaking even =

204615 sandwiches/1200 sandwiches sold/day = 115(approx)

Collaboration

Partner with firms which have brand value and for whom this is a relevant
diversification.

Eg : Amul ,Britannia,Nestle,Qadbury

And also tie up with major educational institutions for setting up a stall in their
campus.

As we tie up with these brands the variable cost will reduce significantly as some of
the raw materials will be internally produced.

Future Plans

♦ Expanding to Other Strategic Locations:

Bandra shoping area

College areas

Bandra Reclamation center

♦ Offering home delivery in and around the areas of the stall

♦ Get staff from Non-local areas and provide them with residential facilities also
for increasing man power.

♦ New variants of sandwiches

♦ Diet Sandwiches ,customize ur own sandwiches from the options (10-12)

varieities

♦ Franchise license for the brand can be sold once the concept clicks.
 Marketing plan

Identifying the Purchasing patterns/ requirements

The trend which we have observed is that in 80’s people rarely had sandwiches as a
food item, they would prefer vadapav,bhajia pav to these products.

In the late 90’s the people were exposed to fast food items made out of bread like
Burgers, Pizzas etc.

From this emerged the habit of having sandwiches also a snack item. Thus emerged
these small road side vendors who cater only a 3-4 varieties of sandwiches on their
stall. Seeing this, restaurants which normally cater only to the traditional food
items starting offering sandwiches also on their menu so as to grab the market.

Then came restaurants or eating joints which cater only to sandwiches (MAJOR) and
some other snacks/ juices like Sandwizza’s.

The people prefer to have sandwiches from the vendors in and around their locality.

Parents generally do not prefer giving their children the same sandwich they are
eating because of hygienic factor.

Market segment(s) being targeted

Target group:

1. Mumbai people who travel by train everyday to reach their respective

offices / work places.

2. Institutions which have residential campuses.

3. Travelers who commute by train (out stations).

Potential revenues in each market segment

 Our target customer base can be divided into 2 market segments

1. Students

2. Daily commuters at each station

Special strategies required to reach out to the segment

1. Organize games on the campus which will increase the awareness of the
product and offering.

2. Most innovative sandwich: Ask students to make innovative products with

the same material and then gift the student with the best innovative
sandwich award.

a. Stunt Marketing: place people in strategic locations near the stations

guiding them towards the kiosk. These people will be dressed in comic
dresses which will grab the attention of commuters.

Competition

b. Competing products/ services

c. Competitive position, market share distribution

d. Strengths and weaknesses of competitors

e. Barriers to entry

f. Possible future competition

g. Positioning vis-à-vis the competition

Market Analysis
Size and growth trends and forecasts

Maturity of the industry

When lot of player come into the market

Vulnerability to economic factors

Seasonality factors

Regulatory issues

To get a license from BMC to set up a kiosk.

Supply and distribution requirements

Influencing factors that will have an impact on your business

♦ Threat of new entrants

♦ Threat of suppliers

♦ Employee retention

♦ Preferenance in the tastes

Marketing & Sales Strategy

Differentiation

Promotion Strategies

• Create a website, which showcases our USP and encourage blogging of

customers about their experiences.

• Feedback forms on the website and near the kiosk.

• Mail a trailer to all the college departments and

• Show video clippings of

1. The kitchen and how the food is cleaned and stored.

2. The training process of employees, showing how they cover their

head and hands with gloves.

• Organize games on the campus which will increase the awareness of the
product and offering.
 • Most innovative sandwich: Ask students to make innovative products with
the same material and then gift the student with the best innovative
sandwich award.

• Stunt Marketing: place people in strategic locations near the stations

guiding them towards the kiosk. These people will be dressed in comic
dresses which will grab the attention of commuters.

• Strategic partnerships: to partner with firms which have brand value and
for whom this is a relevant diversification. Eg : Amul
,Britannia,Nestle,Qadbury

 Another reason for partnering with these stores is the raw

material prices also decrease once the partnership is formed.

Obtaining order before starting

Colleges have annual festivals for each department like computers, electrical,
mechanical etc., and also college festivals like annual day etc where bulk
consumption of products is expected.

Set up a contract to supply sandwiches in functions like those which will

attract a larger audience.

Distribution channel

Initial we plan to set up 8 kiosks which will be owned by us and in the expansion
plans we plan to franchise this outlet by supplying only the raw material and SOP
guidelines.

Sales targets and assumptions

Pricing of products/ services (value pricing/ skimming strategy/

penetration strategy)

Using a penetration strategy but charging a little more than the road side vendors.

Justifying this premium to the quality and hygiene which is provided in our service.