FEASIBILITY REPORT FOR A FAST FOOD RESTAURANT
We have taken out time to write this report for several reasons among which are: [pic] This project serves as part of the "private-sector participation initiative" drive embarked by our company [pic] Our desire to make you reconsider your present stand about not wanting to invest in the Nigerian economy, for now [pic] Our belief that this report can form a base for an enlarged feasibility report, which we hope you, would commission us to carry out [pic] Our desire to make you see the financial viability of this project [pic] Our desire to make you see the potentials of the Nigerian market [pic] Our desire to bring viable investments into this country [pic] Our desire to portray the true image of Nigeria to the outside world [pic] Our desire to see your company operational in Nigeria
It is therefore our firm belief that after reading through this report, there will be a burning desire to reap the benefits of investing in Africa's biggest market, and partnering with us in its quest to touch hearts through the McDonald's heritage.
TABLE OF CONTENT
1. DATA GATHERING
2. CONCEPT DEVELOPMENT
3. SITE ANALYSIS
4. COMPETITOR ANALYSIS
5. FINANCIAL STATEMENT
[pic] DATA GATHERING
BASIC FACTS ABOUT NIGERIA: AFRICA's BIGGEST DEMOCRACY AND MARKET. FEDERAL CAPITAL: ABUJA
COMMERCIAL CAPITAL: LAGOS
Nigeria with a population of 113,828,587 (July 1999 EST.) is the most populous country in Africa. It has a Population Growth rate: 2.92% (1999 EST.)
0-14 YEARS: 45% (MALE 25,613,974; FEMALE 25,397,166)
15-64 YEARS: 52% (MALE 30,272,539; FEMALE 29,197,611)
65 YEARS AND OVER: 3% (MALE 1,678,732; FEMALE 1,668,565) (1999 EST.)
We intend that McDonald's setup its first restaurant, in Lagos State. It has also pinned down any of these locations for its first restaurant, namely Broad and Marina Streets in Lagos Island, Awolowo Road in Ikoyi, and Akin Adesola and Ahmadu Bello Way, in Victoria Island. There is a school of thought that says that the Market in Lagos is bigger than the Market in other countries of West Africa put together. For people conversant with Lagos, these locations are prime locations, as they boast of the presence of Nigeria’s high rise buildings, Nigeria’s most successful shops and companies, with their attendant management and senior staff, who invariably are Nigeria’s crème de la crème. These locations can also be regarded as Nigeria’s Jugular vein in commerce. They also presently boast of hosting the best Fast Food Restaurants in Lagos. We are already looking forward to a healthy competition between you and them. Another feature of these locations is that they can be accessed within 5-10minutes of each other. It is therefore usual to see people working in Victoria Island moving over to a restaurant in Ikoyi, or Lagos Island, and vice versa.
DEMOGRAPHY OF POTENTIAL CONSUMERS:
Age: Infant – 60 and above (some fast food restaurants have playing pens for infants)
Sex: Male: Female (55%: 45%)
Income: $300/year and above
Usage Rate: Worst Case Scenario: 500 consumers/day
Average Case Scenario: 1200 consumers/day
Best Case Scenario: 2000 consumers/day
With McDonald's we expect figures to get as high as 1,500, 2,200 and 2,700 respectively.
User Status: Ranges from first time users, Regular users and Occasional Users. For an average day in the 1ST year of operations:
First Time Users: approx.10%
Regular Users: approx. 50%
Occasional Users: approx. 40%
Loyalty Status: Indifferent (None) 42%
We are however confident that with McDonald's, consumers can be pulled from the indifferent categories, to being strong and absolute consumers with McDonald's.
Occupation: Predominantly white collar workers, businessmen also form a sizable proportion of consumers. During...
Please join StudyMode to read the full document