? Prepare a Feasibility Report for Starting a Restaurant Essay

Group No – 17 ?Prepare a Feasibility report for starting a Restaurant. Restaurant : A restaurant is a place that’s offers well prepared food at a certain price that suits to the customers. Before starting a new business many corporation or institute write and make a business plan. In this way we have to make a business plan for starting a restaurant. A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. This business plan includes the following things. •How much money we need to get started ? The overall goal of the business. •Expected growth in numbers for next five years. •Equipment needs. •Staffing needs. •Menu. •Who are the competitors ? •Other important things. For our report of starting a new restaurant it consider the all the above things. We have to done the feasibility study about this. It shows that what is more preferable or not preferable for our restaurant. This feasibility study depends upon the study of various aspects like market analysis, technical analysis, managerial analysis, financial analysis, economic analysis and so many things.

We want to start a new restaurant in the Bardoli town so first of all we have to decided our objectives and goals. Objectives : 1)To achieve the high profit. 2)To giving best services to the customer. 3)To give similar experience to all the customer who are visited. After deciding the objectives, we have to done the analysis of various aspects to achieving the decided goal or objectives. (1) Market Analysis : Market analysis includes that how much and what is the demand of customers ?

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Like which food they like most whether it is Punjabi, Chinese, Gujarati dishes, south Indians, fast food, etc and how much they demand for the particular item. And for fulfillment of this demand we have to check that how many amount or capital we needed ? The market analysis includes the following things. 1)Demand analysis : It consider that what is and how much demand of various food in the market or in the bardoli town. And also in which time they demand which type of food. for e. x. people demand for Panjabi dishes and chineses in evening for a dinner not in the morning. )Competitors : Then we check that who is the competitors in the bardoli and what are their features for attracting the customers. The competitors in bardoli are Red Chilee’s, Food & Fanda, Tulsi Hotel, etc. Getting information about their services given to the customer and what is their daily sale of food item? 3)Price : Before deciding the price, we have to consider the price of competitors. Price of our item should not be very high because we open the restaurant for all the people not only for rich people. Price should be preferable for all the people.

For ex, the price of one kind of chinese dish in red Chilee’s is Rs. 75 then we taking the decision about the price of that same dish whether it is more or less in compare to the Red Chilee’s. 4)Consumer profile : We have to get the information about customer that who like to eat most in the restaurant either youth or old people. We need to take information about their age, income, address because all the people are not from bardoli, they may be from nearer villages of the town. 5)Supply : We also want to supply of food for getting ordered of any occasions or function organized at any place.

The restaurant give this type of service and also want to do home delivery for ordered of any item. So, the restaurant also want to supply of food. 6)Consumption trends and present consumption level : We need to check that what is the consumption trends and how much food is consume by the people more and what is the present consumption level. 7)Government policy : We also find out that which policy will be given by the government and what is the procedure for registration and how to get the business license and other permits required for starting the restaurant. 2) Managerial Aspects : For our restaurant there is needed to hire proper staff like one manger, menu men who taken a menu form the customers weightier, cook and sweeper. The manager should be qualified and experienced. And all the staff should be experienced. So we have to find out from where this staffs are available ? and is there any need to give training to the stff or not ? It is more important. (3) Economic Analysis : The entrepreneur should have done the economic analysis which considered the various costs and benefits.

The costs includes the salary, set up cost, running cost, monetary cost, etc. which incurred for start a restaurant. And this analysis help to the solving the unemployment problem by giving work and also help to the environment. (4) Financial Analysis : Without finance we can’t start a restaurant so first of all we make a budget that where to spend money and form where we can get the more revenue. Raising of funds includes the long-term and short-term sources of finance by which we can arrange the money for starting our restaurant.

It also includes that how many cost and expenses we also check that how many amount to be needed in advertisement. (5) Technical Analysis : We have to also done a technical analysis like, 1)Material inputs : From where we should get a vegetables, spices, paneer, cheese etc….. either from the town or out of the town. 2)Machineries : How many and which machinery should be needed for making food like owen, sandwitch maker, Juice machine etc. 3)Equipment : How many and which type of equipment should we needed for servicing the people like dishes or plates, bowl, glasses, spoon, chair, table etc. ) Project charts and layout : Before start a restaurant we have to make chart or structure of restaurant that where kitchen should be exist and where counter is shouted and also take decision about that there is needed to make air condition hall or not. Cash Flow Statement of Restaurent ParticularsRs. Opening cash / bank balance10,00,000 Add : Cash Inflows : Cash from operation 1,50,000 Issues of shares & debentures5,00,000 Sale of fixed assets or investments8,00,000 Raising of loans10,00,000 Dividend received1,00,000

Less : Cash Outflows : Purchase of fixed assets20,00,000 Repayment of loan1,50,000 Redemption of preference share1,00,000 Payment of taxes2,00,000 Payment of dividend1,50,000 Drawings5,00,000 Cash balance in the end4,50,000 Conclusion When opening a restaurant, always keep in mind that restaurants are customer service businesses at the core. Insuring that you have competent staff that will provide this high-quality customer service and reward us in the long-run with repeat business and a positive reputation within the community.

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