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My Business Plan (Pav Bhaji Brand)- Require your opinion guys

Hi,

As I am writing this post, I am sitting in my cubicle, awaiting another day full of excel work and meetings.

Working in a consulting/technology firm(that too one of the biggest) has never been a fulfilling experience. I always had this feeling of doing something on my own. I have got an idea, very nascent stage, so would like to share it with you guys to get an honest review.

My Idea:
1) Fast food chain of Pav Bhaji-specialized outlets in Pune/Hyderabad which would cater to customers who want to take away, as well as those who want to eat it hot.

2) Inspiration behind the idea was unavalibility of good Pav Bhaji joints in these cities(except Mumbai). There is a potential market for fast food. With Pizza, Cake shops, Burgers brands already in the market and making good, pav bhaji market is still untapped.

3) We can take a cue from “Sardar” Pav Bhaji, in Tardeo or Canon Pav Bhaji in creation of a “brand” of Pav bhaji. We would provide a brand of Pav Bhaji which would be tasty and hygienic.

4)Starting from Pune or Hyderabad, as we get brand recognition, we plan to scale up and get to the tier 2 cities like Kolhapur, Aurangabad etc where there is a lot of potential for consumption.

5) Low Cost model- Maximum area of 500 sq ft required for an outlet. Plans to include Sandwich and Juice alongside, making it a “Indian” fast food chain. around 10-12 varieties of Pav Bhaji can be included to enhance the brand and build loyal customer base.

6) To sum things up, we wish to create a “Brand of Pav Bhaji”.

Challenges:
1) Pav Bhaji is mostly preferred to be eaten at home. “Mom-made” pav bhaji.

2) Competition from local vendors.

3) “Karigar” or pav bhaji cook is difficult to get. We enquired with some karigars in Mulund and they were completely reluctant.

We made a survey where around 100 people participated.
Some of the results:
1) 80% people said it was an amazing idea to have a brand of Pav bhaji
2) 78% people said they didnt mind spending 70-80 rs for a pavbhaji provided there is hygiene and taste.
3)Morover more than 90% people said that they loved the dish.

I will be updating the presentation plan soon on the website. I am still left with the Sales Forecast and Break even analysis, which I have learn from someone else.

My point of posting this at this time was to get a view from stalwarts here about the idea. I believe in my idea and feel it is feasible enough to be a grand success like Dosa Plaza. If I get some useful reviews and tips from the people present here, it would help me in further enhancing my business plan ppt and would boost my morale to make this a big success.

Eagerly awaiting your responses. Thank you in adavnce.

 

Regards,
Tejas Nimbargi

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18 Comments

  1. Profile photo of asha chaudhry

    tejas,

    for starts, pls read these posts – there are lots of learnings in the advice/suggestions given by other rodinhooders in the comments

    http://therodinhoods.com/forum/topics/i-need-to-make-my-product-loo

    http://therodinhoods.com/forum/topics/will-this-idea-work-1

    http://therodinhoods.com/forum/topics/food-van-around-colleges-inst

    • Profile photo of vikas pande

      hi mam, i am also going to open new restaurant in thane of pav bhaji, is there any one who can cook pav bhaji for us do u known any one who can help us ???

  2. Profile photo of Tejas Vishnu Nimbargi

    Thank you Asha 🙂

  3. Profile photo of Divyesh Panchal

    Hi Tejas, 

    Idea of serving Pav Bhaji outside Mumbai is a good market to explore which ultimately increases your chance of being successful in terms of attracting mass market towards specialty food of some other part of the country. However majority of Pav Bhaji eaters never craves for “mom made” or “home-made” pav bhaji. Its one of the most tempting junk people could hog onto and would always prefer having out served with with kilos of butter!

    You should visit/check out Achija Juice Center at Ghatkopar East where people bee-line during day and night to hog on to its ever famous pav bhaji. 

    Labor (as u say karigar) is one of the challenging aspect of food business. 1st challenge is to find the source of such labor (poach them through outlets or caterers etc) and 2nd is to retain them (somebody else might poach your karigar too). Calcutta and U.P is the hub for these karigar who crave working in metropolitan cities at a pay point which is considerable less as compared to the metropolitan city’s average pay point but definitely meeting the industry pay scale standards. Additionally they always get along their brothers and friends to work with them and in-turn become the influence/reference point for more karigars incase you need them in future while expanding your business. BUT you need to take care of their accommodation, food and basic requirements (well they would work for minimum 12 hrs a day, 7 days a week!). 

    Juice and sandwich is a safe and practical way of offering products that compliments your core offering: Pav bhaji. Try including some non-bread items as well.

    If location of the outlets is strategically thought of considering the customer segment and overheads are well managed, this could work really well.

    Since you are trying to organize the unorganized food category (pav bhaji), I suggest you should meet Mr. Venky from Goli Vada Pav ( I met him for a brief period of time last week). He has pioneered the art of transforming one of the most famous unorganized food into the organized format and built a successful brand out of it!

    Brief about me: I ventured into food business 8 months back serving soups, juices, salads, chips & dips in the corporate catering market based in Mumbai.

    Hope the above suggestions helped.

    Regards,

    Divyesh Panchal.

    Co-Founder, Just Unjunk! + 91 9619 32 33 34

    OBO. JGD.    

  4. Profile photo of Karan Pandhi

    Hi Tejas, 

    I, Divyesh and Hitesh Bhatia we all are in the QSR field, either starting up or started.

    1. I would only say that you start of at one place either Pune or Hyderabad, with a small space say around 100 to 200 sq ft. Since you are providing take away also try to add delivery in a month or 2 post launch.

    2. have a look at shree misal in pune, I don’t know the exact location but its around shanivar peth. they serve a really spicy misal, and it worked out for them. So do see where what will work, don’t open it anywhere ground research helps.

    3. friends are your biggest foes, if you asked them, then recheck with unknown people. They will give advice straight on your face and it helps, it too got some, and I bet I can see my wheel turning.

    All the best for your venture.

    you can contact me on vegeatario@yahoo.com

    or on +91-9619-299-311

    Regards,

    Karan Pandhi

  5. Profile photo of Tejas Vishnu Nimbargi

    Divyesh, Thank you for your kind words and advice.
    1) I agree with you on this, Achija in Ghatkopar(and not Mulund) is an ideal example of Pav Bhaji brand which was grown over time.
    2) We were contemplating on some non-bread items. But right now, instead of di-worse-ification, we are thinking of building a strong brand of Pav Bhaji alone.
    3) Labor is a big task. But my partner, a well versed gujrathi businessman, has already started his hunt. As we all agree, Karagir will be a key factor in this startup.
    4)I would definitely like to meet up Mr. Venky. Lets hope tat time comes soon. In fact I am waiting for the next Open House.
    5) I guess I had heard about your venture from a friend, who is also an Entreprenur. Ankit Sawant aka Satan at wink.

    Finally, Thanks for being supportive and all the best for your venture.

    I didnt introduce my self properly. I am Tejas. I am from Mumbai, currently in Hyderabad. But planning to come back soon. 🙂

  6. Profile photo of Tejas Vishnu Nimbargi

    Hi Karan,
    First of all, Read about your Venture, Hogerzone.
    Amazing idea man. I hope you get the proper funding soon.
    I am glad we are all alike. Foodies!

    1) 100-200 would be too little for what we were plannng. Pav Bhaji cannot be an entirely take away counter according to me. even a 200 sq feet of area, with 5-10 tables would suffice.
    And that is where I would need your help. How do I go about in my business plan?
    1) Buying out that space
    2) Lease
    3) Rent

    Shree Misal is an Shanivar peth, where there is completely Puneri crowd. I was thinking of other places like Aundh, SB, FC, MG where we get immigrants, mainly from Mumbai.

    Thank you for that last advice. Karan. I know what I am getting from you guys, will help me out in a big way.

    Finally, Thanks for being supportive and all the best for your venture.

    I didnt introduce my self properly. I am Tejas. I am from Mumbai, currently in Hyderabad. But planning to come back soon. 🙂

  7. Profile photo of Karan Pandhi

    Hi Tejas,

    Sorry for the late reply, didn’t check it out.

    Leasing is the best option for starters, unless your father is paying to buy out the property then go ahead

    Coz the cost would be like this

    Lease : 20,000X12 = 2,40,000 (excluding deposit) 

    buy out : 20,000X200 = 40,00,000/-  + Maintenance

    Though you can sell the shop and recover a higher amount but who knows the future, the reality space is now in a tight bubble surrounded by pricks one burst and all fall down.

    2. Chef try get a local buouy , i mean who does know to make awesome pav bhaji but has no knowledge of english, why lower salary but don’t exploit him ( I’m planning the same for my cutting and chopping staff)

    All the best for your venture, if you launch in pune will surely come down to it with my family out  there.

  8. Profile photo of Ratnakar Gokarn

    Hello Tejas,

    Food is an extremely competitive business, so before you launch you have to REALLY look deep into your USP and branding strategy.

    As someone mentioned Goli Vada Pav, I found this video of their branding and Positioning on youtube. Their story is amazing.

    http://www.youtube.com/watch?v=UsMdP4nkdC0

    If you are thinking of franchising for expansion, your brand is critical. 3 things will help you stand out :

    1. Speed  2. Consistancy  3. Cleanliness

    Try get your hands on “Mcdonalds : Behind the Arches” book which looks into depth of the Fast Food business. Though it is written in the context of American Fast food business, it is a template for any fast food brand.

    Just read in the papers recently that few of Mumbai’s oldest regional food restaurants have closed down due the big fast food brand invasion. So you do have your work cut out.

    All the best. Love food related businesses. Let us know how it goes.

  9. Profile photo of Tejas Vishnu Nimbargi

    Thanks for your comments Karan!
    My father is not paying for this, so lease is the option I guess.

    *I strongly believe Real estate is next in line after Gold*

    Chef is almost arranged. Also the place. there were a lot of discussions. But now we have finally settled in for Mumbai.This is a paradigm shift from our earlier idea.

    The reasons for this was
    1) No other city consumes as much as Mumbai
    2) Pav Bhaji is one of the most accepted dishes with no brands unlike Dosa plaza or Goli vadapav
    3) One of the founders have to sit on the first outlet to make sure everything is smooth
    4) Karigar is from Mumbai, if we set up a shop in Pun, we will have to look after his expenses.

    What do you think about this? Is this the right thing that we are doing?

    Thank you again for your reply!

  10. Profile photo of Tejas Vishnu Nimbargi

    Hi Ratnakar,

    Thank you for your valuable comment.

    I know, with 98% failure rate that this industry boasts off, we need to be very very careful.

    Based on your inputs, I have already ordered the book! (I am an avid reader so couldnt wait)

    I will keep you and other rodinhooders posted on the developments!

    Just waiting for the next Open House!

    Thanks again Ratnakar!

    Regards,
    Tejas
    08297057571

  11. Profile photo of Devdatta Puntambekar

    Hi Tejas,

    Its a good idea. And as suggested by fellow Rodinhooders, you should do well research on it before chipping in.

    I have my own start up and I am a real estate consultant from Pune. As you know real estate prices are quite high in Pune, and the places( FC rd, SB rd, JM, KP) where you are planning to open a food joint have high rental rates. One of the challenges in setting up food joint in good area : whether setting up Chimney for cooking is allowed or not in that property. I have experience this when I was working with a client to set up their food joint chain.

    We can catch up and discuss to have clear understanding.

    Best Regards,

    Devdatta

    9923879212

  12. Profile photo of Karan Pandhi

    hi Tejas,

    I was just kidding, leasing is the best option.

    Mumbai is now cramped there are so many, the south mumbai has sardar, western suburbs has maruti in parle, and in central i have no idea, but there would be someone special.

    Pav bhaji is a food which everyone will like due to its flavor. Look at your location do a 4 day trip twice in the weekend and in weekdays, to know how the place is and how the crowd is around the vicinity. 

    Also look around in a 2 km diameter what type of competitors are there (MNC, unorganized, udipis, etc). 

    Mumbai is now looking at something new, what is different in Pav bhaji that you do, that will impact.

    Employees can be found anywhere in the world. It’s just about knowing your product. If you look at my funding pitch.

    http://therodinhoods.com/forum/topics/the-final-step-to-my-dream-project-hogerzone-funding-require-1

    I have added pics of the product I aim to launch, don’t rely on the chef, he will kick your ass some day, as even hes a human so fatigue and all need to be taken care of. 

    You yourself need to know what you are gonna launch, the product, so cook try out, and also do the costing part of it, to know the cost and your selling price.

    I hope this helps, if you are in Mumbai, we can meet up call me on my number anytime during the day :P.

  13. Profile photo of Tejas Vishnu Nimbargi

    Thank you so much Karan… nice piece of advice that was…

    1) Central and New Mumbai has lesser options, and overall organised Pav Bhaji market does not exist. Vadapav and Dosa were everywhere when Goli Vada pav and Dosa plaza came up. They are now flourishing. We have a similar intent!

    2) We will be doing a lot of trips! Market research is very important

    3) I had seen your funding pitch. It was nice. As my hobby is cooking, i make decent pav bhaji. What you told about cook was right. 
    But I believe in retention of my employees. They add value. So I dnt mind paying him handsomely even if that means less money for me. But eventually when we scale up we want that one cook, who would be there with us from the start.

    4) We will surely meet up. I am trying for Rodinhoods Open House. If I get a chance we can even meet there. But if not that, generally I would like to meet you and discuss few things. Hospitality industry should be more of collaboration and less of competition! 🙂

    Again Thanks so much for your replies. Have a rocking weekend. 🙂 

  14. Profile photo of Tejas Vishnu Nimbargi

    Hi Devdatta,

    Actually the location is changed from Pune to Mumbai, but we eventually plan to scale up to different cities!
    (Its all on paper!)


    But if and when we come to Pune, we would surely like to meet you and collaborate.
    Thanks for your help.
    Have a good day.

    Regards,
    Tejas Nimbargi

  15. Profile photo of Karan Pandhi

    Hi Tejas,

    But I believe in retention of my employees. They add value. So I dnt mind paying him handsomely even if that means less money for me.

    This point is totally wrong, they will work for money, but once they feel they have given their all, they will start acting weirdly, they will start taking leaves without informing, and it happens a lot of times, usually in start-ups. 

    I have a lot of South Indian friends who have been running resto for 20+ years, they told me and gave me one good advice, first you learn to cook and then open, so say if tomoro d chef doesn’t show up you can cook and serve, so the chef understands tht you can run the biz without him .

    Open House is too far bro, it will be somewhere in June I think so. You can ask about it or we can meet up. 

  16. Profile photo of Tejas Vishnu Nimbargi

    Even that is correct. We should know how to cook the product we are selling. 
    I heard the same advice from Dosa Plaza owner, who still makes his own masala!

    Lets hope all goes well!

  17. Hi Tejas,

    Have you started your new Business? I am also planning to start Vada Pav Buisness in Bangalore area. Share your experience and how to proceed with this new venture. If anyone interested can also join me.

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