Restaurant feasibility study

the feasibility study

the first step in starting a new restaurant

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 acquiring a site. They may also require a comprehensive study that includes renderings, 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.

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.

feasibility study breakdown

What is included?

Market Area Research

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).

Potential Competitor Survey

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.

Selected Site Analysis

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.

Preliminary Restaurant Concept Development

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.

Preliminary Pro Forma Financial Statement Development

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.

Cost Estimation

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

start-ups like yours

Restaurant start-up success stories

Ron Santibanez is the kind of professional that you hope you come across everytime you find yourself in need of hiring someone to take your business to another level. Ron is a rarity.He has over twenty-five years experience and then add his professionalism, his patience, his genuine care for your project, his willingness to see your vision, and his commitment to making it all come together.....and you have Ron SantibanezI have been working with Ron for over three years of twists and turns putting together my Organic Bakery Brand. Partners have come and gone, but Ron has worked with me, been a friend to me, and supported me on my journey to create the right Business Plan and PPM to sell my bakery concept. Ron had always been there to keep moving in the direction that will lead to success. I am so happy to have Ron as my consultant and business advisor.Ron pulled out a miracle and handled everything for us in a world class fashion. He took responsibility for the entire project and leveraged all of his relationships and good will to make things happen. He knew how important this was to us, and he personally was present to oversee initiatives to meet our timeline. The result is that we had a world class opening with satisfied customers.Ron and Team are talented in so many areas, but I think his greatest assets are his integrity, relationships, and commitment to excellence. I look forward to working together again on future projects.