BHM 329

Entrepreneurship for Hospitality

TU BHM · Semester 8 · Recent BHM syllabus series

Requirement: elective
Credits: 3
Past papers: 1 papers

Syllabus

What this course covers and how the teaching time is divided.

Entrepreneurship for Hospitality Syllabus

Official TU PDF

Tribhuvan University

Faculty of Management

Office of the Dean

Bachelor of Hotel Management (BHM)

Course Title: Entrepreneurship for Hospitality

Course Code: BHM 329

Semester: Semester 8

Nature of Course: elective

Full Marks: 100

Pass Marks: 50

Credit Hours: 3 Cr.

Curriculum: Recent BHM syllabus series

Course Description

This course deals with the introduction, developing business ideas, growth of hospitality firm, feasibility analysis, writing business plan, industry a nd competitive analysis, legal and ethical dimensions and start - up new business venture and marketing issues.

Course Contents:

Lecture hours show the approximate classroom time allocated to each unit.

Concept, becoming an entrepreneur, key elements of entrepreneurship, characteristics of successful entrepreneurs, entrepreneurship in hospitality business, types of start -up firms, Importance of entrepreneurship - entrepreneurial firms, society and larger firms, The process of new hospitality venture creation, Entrepreneurship development in Nepal.

Identifying and recognizing opportunities - observing trends and solving problems, personal characteristics of the entrepreneur, techniques for generating ideas, encouraging and protecting new ideas
definition of creativ ity, innate or learned creativity, idea generation, approaches and Techniques, Research and Exercises, linking creativity, innovation and entrepreneurship, developing business ideas for hospitality business.
Unit: 3 Growth of Hospitality Firm LH 8 Nature of business growth, planning for growth, reasons for growth and managing growth, knowing and managing the stages of growth, managing capacity, day -to-day challenges of growing a firm, i ntroduction to organic and inorganic growth of hospitality firms, Grai ner’s growth model, growth challenges for entrepreneurs, formula for successful growth, barriers to growth.

Concept, product/service feasibility, industry/target market feasibility analysis, organizational feasibility analysis and financial feasibility analysis for hospitality business.

Concept, reasons for writing for a business plan, Guidelines for writing a business plan, section of the plan , presentation of business plan
introduction to financial characteristics of hospitality entrepreneurial business, sources of start -up funding, Sources of Financial, Financial
Management in Hospitality Entrepreneur Businesses.

Industry trends analysis, Five competitive forces model, the value of the five forces model, industry types and the opportunities, identifying competitors, sources of competitive intelligence, completing a competitive analysis grid.

Establishing a strong ethical culture, business licenses and business permits, sole proprietorship and partnership, Provisions of establishing entrepreneurs’ business in Nepal, legal and ethical issues facing entrepreneurs’ business in Nepal.

Recruiting and selecting key employees, lenders and investors, funding requirements, sources of personal financing, venture capital, c ommercial banks, sources of debt financing
selecting a market and establishing a position, key market issues for new ventures, the 4 Ps of marketing for new ventures.

Past exam papers

Complete papers are arranged by official model question paper.

Dean's Office Official Model Question Paper

Report problem

Tribhuvan University

Faculty of Management

Office of the Dean

Official Model Question Paper / Dean's Office Blueprint

Course: BHM 329 · Entrepreneurship for Hospitality

Level: Bachelor of Hotel Management (BHM) · Semester 8

Full Marks: 60

Time: 3 hrs.

Candidates are required to give their answers in their own words as far as practicable. Figures in the margin indicate full marks.

Group A

Brief Answer Questions. Attempt ALL questions. (5 × 2 = 10)

[5*2=10]

What is an artisan bakery or boutique restaurant startup?

[2]
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Boutique Hospitality Startup

A specialized, independent hospitality venture focusing on handcrafted, high-quality, distinctive culinary offerings and intimate guest experiences rather than mass-market volume.
Define ‘Value Proposition’ for a hospitality startup.

[2]
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Value Proposition

A concise statement articulating the unique bundle of benefits, emotional comfort, and functional solutions a hotel or restaurant delivers to solve customer pain points better than competitors.
What is a franchise royalty fee?

[2]
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Franchise Royalty Fee

An ongoing periodic payment (typically 4% to 8% of monthly gross sales) paid by the franchisee to the franchisor for the continuous right to use the brand name, operating systems, and marketing support.
State two sources of seed funding for a hospitality venture in Nepal.

[2]
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Sources of Seed Funding
1. Personal savings and capital from friends and family (bootstrapping).
2. Local angel investor networks and concessional SME bank loans.
What is prime cost in a restaurant startup?

[2]
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Prime Cost in Restaurants

The combined sum of Total Cost of Goods Sold (Food & Beverage Cost) plus Total Labor Cost (wages, taxes, benefits). Standard target in well-managed restaurants is below 60% of sales.

Group B

Descriptive Answer Questions. Attempt any THREE questions. (3 × 10 = 30)

[3*10=30]

Explain the step-by-step process of preparing a comprehensive Feasibility Analysis for establishing a 40-seat specialty rooftop café in Jhamsikhel, Lalitpur.

[10]
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Feasibility Analysis for a Specialty Rooftop Café
1. Product / Service Concept Feasibility: Defining specialty artisan coffee, sourdough toasts, and sunset mocktails; testing menu appeal with sample tastings.
2. Industry & Target Market Feasibility: Assessing catchment demographics (diplomats, expat workers, young professionals) and evaluating competitor footfalls in Jhamsikhel.
3. Organizational & Technical Feasibility: Securing building rooftop structural stability clearances, water storage, elevator access, and commercial espresso equipment suppliers.
4. Financial Feasibility: Projecting initial CapEx (interior decor, bar counter, kitchen machinery) against expected daily covers (average check: Rs 850; breakeven at 45 covers/day).

Compare the advantages and risks of launching an independent hospitality venture versus purchasing an established international franchise (e.g., KFC, Subway, Marrybrown) in Nepal.

[10]

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Independent Venture vs. Franchise Startup

Dimension	Independent Startup	International Franchise
Brand Awareness	Zero initial brand awareness; requires heavy marketing.	Instant global brand recognition and customer trust.
Operational Autonomy	Total creative freedom over menu, design, and pricing.	Highly restricted; must strictly follow rigid corporate guidelines.
Startup Capital	Moderate; can be scaled incrementally.	Very high initial franchise fees and mandatory equipment imports.
Ongoing Fees	Zero royalties; all net profits retained.	Recurring 4–8% royalty and 2–4% global advertising levies.
Survival Rate	Higher risk of early failure.	Statistically lower failure rate due to proven operational playbook.

Explain Menu Engineering and Menu Design for a startup restaurant. How does psychology (eye-scanning patterns, decoy pricing, typography) influence guest spending?

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Menu Engineering and Psychology in Restaurant Startups
1. The Golden Triangle: Diners’ eyes naturally gravitate first to the middle of the page, then to the top right corner, and finally to the top left. High-margin signature dishes (‘Stars’) should be placed in the top right quadrant.
2. Decoy Pricing: Placing a very expensive premium steak (e.g., Rs 2,500) at the top of the menu makes a high-margin Rs 1,400 burger appear reasonable and attractive by comparison.
3. Removing Currency Signs: Removing raw ‘Rs.’ or ‘$’ signs (writing ‘650’ instead of ‘Rs. 650’) reduces the psychological pain of paying.
4. Descriptive Storytelling: Utilizing sensory, origin-based descriptions (‘Hand-pulled Jumla walnut noodles’) increases perceived value and willingness to pay by up to 27%.
Explain the key legal, licensing, and environmental compliance steps required to establish and register a food and beverage hospitality enterprise in Nepal.

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Regulatory Roadmap for Hospitality Startups in Nepal
1. Company Registration: Registering Private Limited entity with the Office of the Company Registrar (OCR).
2. Tax Registration: Obtaining Permanent Account Number (PAN) and Value Added Tax (VAT) certificate from the Inland Revenue Department (IRD).
3. Local Municipal Business Registration: Obtaining local operating business permit from the respective Ward Office and Municipality.
4. Food Safety & Quality Licensing: Securing commercial food processing and hygiene clearances from the Department of Food Technology and Quality Control (DFTQC).
5. Liquor License: Obtaining an excise license from the Inland Revenue Office for retail alcoholic beverage sales.
6. Fire Safety & Waste Management Compliance: Installing certified fire extinguishers and grease traps for wastewater disposal.

Group C

Comprehensive Answer / Case Analysis Question. (1 × 20 = 20)

[1*20=20]

Case Study: Scaling ‘Himalayan Bean Roasters’ from Specialty Coffee Shop to Franchise Chain

Three years ago, an entrepreneur established ‘Himalayan Bean Roasters’, a 25-seat specialty third-wave coffee shop in Patan focusing on 100% organic single-origin Arabica coffee sourced from Nuwakot and Gulmi. The outlet generates NPR 1,200,000 in monthly sales with an exceptional 24% net profit margin. Encouraged by strong brand loyalty, the founder wants to scale by opening 8 franchised coffee shops across Pokhara, Chitwan, Butwal, and Dharan.

However, the founder faces strategic dilemmas:
- How to standardize coffee quality and latte art consistency across remote franchisee locations.
- How to protect proprietary roasting profiles and wholesale bean supply.
- How to structure the Franchise Agreement and royalty framework.
As Franchise Strategy Consultant: a. Formulate the Franchise Business Model (Upfront franchise fee, ongoing royalty %, marketing fund contribution, and territory rights). b. Design the Quality Control and Supply Chain Blueprint ensuring 100% coffee bean and milk consistency. c. Create a Franchisee Recruitment and Selection Profile. d. Develop a 2-Year Expansion Roadmap outlining milestones and risk mitigation.
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Comprehensive Franchise Scaling Blueprint: Himalayan Bean Roasters

a. Franchise Financial Model
- Initial Franchise Fee: NPR 800,000 per outlet (covers brand license, initial 3-week barista training, and architectural design blueprints).
- Monthly Royalty Fee: 6% of monthly gross sales.
- National Marketing Fund (NMF): 2% of gross sales pooled into central digital marketing campaigns.
- Territory Exclusivity: Guaranteed 2 km exclusive geographic radius per franchisee.
b. Quality Control & Supply Chain Integrity
1. Centralized Roasting & Packaging: All green coffee beans are roasted exclusively at the Patan commissary roastery and shipped in nitrogen-flushed, valve-sealed bags to franchisees. Franchisees are legally bound to buy beans exclusively from the parent company.
2. Mandatory Equipment Standardization: Mandate dual-boiler commercial espresso machines (e.g., La Marzocco or Nuova Simonelli) with automated water filtration systems to guarantee identical water mineral composition.
3. Quarterly Mystery Shopper Audits: Unannounced audits evaluating espresso extraction time (25–30 sec), milk micro-foam temperature (60°C–65°C), and customer hospitality scores.
c. Ideal Franchisee Profile
- Hands-on owner-operators passionate about coffee culture rather than passive financial investors.
- Minimum net worth of NPR 5 million with NPR 2.5 million liquid capital.
- Willingness to undergo 3 weeks of mandatory full-time barista certification at the flagship store.
d. 2-Year Expansion Roadmap
- Months 1–6: Open 2 company-owned pilot branches in Pokhara (Lakeside) to stress-test supply chains outside Kathmandu.
- Months 7–12: Award first 3 franchise licenses in Chitwan (Bharatpur) and Butwal; deploy regional quality auditor.
- Months 13–24: Expand into Eastern Nepal (Dharan, Biratnagar); establish centralized digital inventory ordering software.

Entrepreneurship for Hospitality

Syllabus

Entrepreneurship for Hospitality Syllabus

Faculty of Management

Course Description

Course Contents:

Unit 1. Introduction

Unit 2. Developing Business Ideas

Unit 4. Feasibility Analysis

Unit 5. Writing a Business Plan Financing Hospitality Firms

Unit 6. Industry and Competitor Analysis

Unit 7. Legal and Ethical Dimensions of Entrepreneurship in Hospitality Firms

Unit 8. Start-up New Business Venture and Marketing Issues

Suggested Readings:

Chapter-wise questions

Past exam papers

Dean's Office Official Model Question Paper

Faculty of Management

Brief Answer Questions. Attempt ALL questions. (5 × 2 = 10)

Boutique Hospitality Startup

Value Proposition

Franchise Royalty Fee

Sources of Seed Funding

Prime Cost in Restaurants

Descriptive Answer Questions. Attempt any THREE questions. (3 × 10 = 30)

Feasibility Analysis for a Specialty Rooftop Café

Independent Venture vs. Franchise Startup

Menu Engineering and Psychology in Restaurant Startups

Regulatory Roadmap for Hospitality Startups in Nepal

Comprehensive Answer / Case Analysis Question. (1 × 20 = 20)

Comprehensive Franchise Scaling Blueprint: Himalayan Bean Roasters

a. Franchise Financial Model

b. Quality Control & Supply Chain Integrity

c. Ideal Franchisee Profile

d. 2-Year Expansion Roadmap

Chapter notes & lecture slides