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Group Case: Chintu TeaSeller Chintu Chatterjee has worked with her mother, Raj Chatterjee, in the family business for the last five years. The Chatterjee family
Group Case: Chintu TeaSeller Chintu Chatterjee has worked with her mother, Raj Chatterjee, in the family business for the last five years. The Chatterjee family business, Raj Mahal Restaurant, is a successful Indian restaurant in Abbotsford, BC. Chintu helps in all areas of the restaurant except accounting and finance, as Chintu has never been fond of numbers or math. Over the years Chintu has gained valuable entrepreneurial and business knowledge related to customer service, inventory procurement, and other day-to- day business operations. Currently, Chintu works 40 hours a week at Raj Mahal Restaurant for $40 per hour. Chintu often works closer to 50 hours a week, but she does not charge for the extra hours because she feels personally invested in the success of her family's business. Recently Chintu has started to feel that her brother, Jassa Chatterjee, wants to take on more responsibility at Raj Mahal Restaurant. Chintu feels this might be a sign for her to finally pursue her own passion. Although, she is very fond of Indian cuisine, her true passion lies in Indian chai. Chintu decides that it is time for her to use her savings and start her own business, Chintu Teaseller. Chintu Teaseller will be a modern, eclectic caf specializing in Indian chai. In order to start her own business, Chintu could either rent a neighboring unit to Raj Mahal Restaurant in Abbotsford or she could rent a unit at the Lonsdale Quay Market in North Vancouver. Raj is encouraging Chintu to stay close to home, however Chintu wonders if it is time to be truly independent and start her business in a new area where a chai caf would be unique and the only of its kind. Chintu has written out some considerations for both locations in the table below: Abbotsford, BC restaurant sq. ft. Close to family home and Rent is $2,000 per month for 800 There are four to five Indian restaurants that serve chai within 10km radius Average household income in Abbotsford is $120,000 Larger proportion of Indian people in the community compared to North Van Annual property tax would be $12,000 North Vancouver, BC ("North Van") Distance from family allows for more autonomy sq. ft. 0 Rent is $3,000 per month for 815 There are no Indian restaurants within 10km radius Average household income in North Van is $200,000 North Van is a more populous and touristic area $20,000 Annual property tax would be Regardless of location, the caf will be open seven days a week: - Sunday, Monday Tuesday - open from 11:00 AM to 7:00 PM - Wednesday to Saturday - open from 11:00 AM to 10:00 PM Chintu plans the product offering for a caf in Abbotsford to be as follows (direct material, direct labour, and estimated overhead costs included in cost per serving):
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