Feasibility Study

The first step in Starting Up a new restaurant or purchasing a franchise should be to conduct a Feasibility Study. More than just a site location study, this involves the gathering and analysis of information necessary to make an informed decision about the potential success of a specific concept in a specific or geographical location. Also, feasibility studies or business plans may be required by a landlord when you are in the process of aquiring a site. They may also require a comprehensive study that includes renderrings, conceptual layout, and logo design which we provide to our clients.

Think of a feasibility study as insurance. It is insurance against failure. Any new business venture can be risky, and restaurants are no exception.  

A Feasibility Study is a smart "minimal investment" before you begin the process of developing your restaurant or purchasing that franchise. A Feasibility Study Maximizes Your Chances For Success and Increases Your Return on Investment. Testimonials.

 

What is included?

1.    We Research the Market Area – This research is conducted to investigate the market area surrounding the restaurant site.  The goal is to establish a feel for the area and gather data that will help determine the future success of the restaurant concept.  We will include a complete demographic study of the selected geographic area(s).

2.    We Survey Potential Competitors – The purpose is to identify and investigate all restaurants in the market area that may affect the restaurant (s) operation. The information gathered will be used to analyze the site from the perspective of potential competition.

3.    We Analyze the Selected Site – We will determine, based on the market characteristics and competitive restaurant survey, whether the market area for a particular site could potentially support a new restaurant, and if the proposed concepts would flourish at the location.

4.    We Develop a Preliminary Restaurant Concept – A written description of the concept and menu with preliminary price points will help us visualize the restaurant in relation to market conditions and direct/indirect competitors. This will also aid us in determining how the restaurant may be positioned. A conceptual menu will also be included. The concept development portion of this study is a methodical process. The concept must meet the needs of the client and must be positioned for financial success as stated in the financial section.             

5.   We then construct a Preliminary Pro Forma Financial Statement based on projected restaurant sales and fixed/variable costs. This will also include estimated capital requirements for development, projected uses of cash, sales and labor projections, cash flow projection, break-even analysis, and five-year sales/profit projections.   

6.   We will estimate construction costs and development costs related to full restaurant operations.  

The process of completing the study takes two (2) weeks. Once completed, we will review the study with the client and determine the best way to proceed. The Feasibility Study will provide a working budget which will provide a road map for success. 

As with all of our services, we guarantee you will be satisified with the results.

A feasibility Study is an important first step in the development of any new restaurant, be it a new concept or franchise. Call us today at 866-903-5875 for more information. You can also contact Ron Santibanez at ron@restaurantexperts.com