Mobile QSV Model is unique to serve the Himalya All-Natural Foods at multiple locations during the day without the liability of high rentals. The aim is to move freely to where the consumer is; say at train or bus stations during morning & evening rush hours, schools during intervals, residential areas during Tea times and in the Busy Bazaars in the evenings.
The QSV fitted with all modern gadgets in well-designed small space to impart a feel of modern quick-serving outlet for clean & hygienic foods.
Under this model, the payback period is around 8 months.
Under this model, break-even sales are achievable with the sales of 1.25 lac per month.
Sales volumes are expected to grow at 20%, while the prices are kept constant. This will directly increase the revenues by 20%. Majority of the costs, being variable, are also expected to rise by 20% year-on-year. The manpower cost is expected to rise at 10%. The assets are depreciated using straight line method with a useful life of 7 years. The residual value is assumed to be zero. In general, the truck has a useful life of more than 7 years. The base case scenario gives an annual profit of Rs.10 lac in the first year of operations. The profits are expected to quadruple within 7 years.
The amount required is Rs.12 lacs. Out of the total amount, Rs.11.5 Lacs is used to set up the business including the purchase of the truck with all attachments. Rest of the amount, Rs.50 thousand, is used for working capital requirements. The Franchisee is expected to bring in a minimum of 10% and the balance will come as bank loan and eligible incentives. The loan is repayable within 7 years. The repayments are expected as per the bank norms. The Debt Service Coverage Ratio is very comfortable throughout the loan tenure.