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7. Operations
Experience:
We have identified two companies one in Guangdong province China and one in Bancio, Taipei which deals with everything starting from supply, logistics and training to set up a bubble tea shop. We choose to work with the Taiwanese company because we find them more professional and serious with their training program though it’s more expensive than the Mainland Chinese option. The company charges somewhere around 50,000 NTD for 5 days training, but does not restrict number of people being trained for one company.
During our meeting with them they showed us the recipe booklet with the exact knowhow and recipes for more than 50 successful drink combinations. These drink combinations are being successfully utilized in the 7 to 8 operating chains in the market.
They have the proper training lab and training can be done both in Chinese and English.
After getting trained by the selected company, we will hire a Food and Beverage manager, who would be a fresh graduate from a hotel management institute and who will display passion for beverage design. The owner of business plan himself has food and beverage experience of two years in a world’s leading Airlines First and Business class cabin and has a huge passion and understanding for this industry. The owner of the business plan is a graduate from an International MBA program and is trained in six sigma lean operations and understands in detail about the lean operations and has a working plan for it. Eventually the staff will be trained for both technical knowhow and customer service.
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國立 政 治 大 學
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7.1. Supply
Supply will play a crucial role in the uniqueness of the plan. Our major competitor is an international chain and they believe in procuring everything from Taiwan and have not been able to decrease the cost of the products. We initially plan to procure certain raw material from Taiwan or China, depending on the better deal and then eventually work with local suppliers to cut cost and increase the scale of our business.
The fact that India is the largest producer of Tea, Tapioca pearls and tropical fruits will be very advantageous to us.
Material to be imported in initial basis:
Glass sealing machines
Fructose dispenser
Tea shaker
Tapioca pearls
Material which are readily available from suppliers in India:
Plastic glasses and straws
Coffee machines
Ice making machine
See through refrigerator
ST Thermos Bucket
Electronic cash register
Fruit juice concentrates
Tropical fruits
Green and black teas
And other raw materials.
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國立 政 治 大 學
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Eventually, we will deal with manufacturers in respective industry to manufacture tapioca pearls and glass sealing machines in India and we will make a contractual deal with them about exclusivity.
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國立 政 治 大 學
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As mentioned in Porters analysis, the bargaining power of supplier is really low because market is full of suppliers and cost can be really negotiated. We will be dealing with multiple suppliers at different level so as not to rely on particular supplier and put ourselves in vulnerable position in terms of supply of raw materials.
7.2. Systems
We do plan to use lots of automation once our business model is successful and we have cash to invest in automation. The last step in automation would be usage of Retail POS. This will help us make our loyalty program more user friendly and sophisticated, improve efficiency, reduce and calculate inventory and eventually reduce cost. But since we are in preliminary stage of our business, we are not sure about the ROI of installing Retail POS equipment.
Hence we stick to basic electronic cash register.
Other automatic systems we will use are glass sealing machines and fructose dispensers.
They do have more basic alternatives but those alternative deviates from our business model and hence reduces the competitive advantage.
Basic Electronic cash register Retail Point of Sale equipment
7.3. Location and Environment
Location and environment plays a crucial role for our business because of its retail nature.
Our business model requires high traffic of consumers with purchasing power in that particular area where we plan to establish our kiosks. We have identified malls in the city and
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shopping centers which have a unique segmentation as our potential places of kiosk deployment. Though these places have high rents compared to other markets and lesser famous malls, but they are very crucial for our business.
7.4. Regulatory Control
We will have to deal with certain local government regulations to start this business, which our charted accountant partners will take care of. The few basic regulations and requirements are as under:
Trade License for running a restaurant - from the BBMP (Municipal Corporation) office for your location. This license costs between 5000 to 8000 INR or 100 to 150 USD and is relatively easy to apply without the help of consultants.
Health Certificate - again from the health department of BBMP (Municipal Corporation).
VAT registration- Our accountant will take care of this license.
Shops & Establishment License – from labor department of the area, our accountant will take care of it.
Labor License – Labor dept. of the area, our accountant will take care of it.
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