Feasibility Study in Resturant

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FEASIBILITY STUDIES
FEASIBILITY STUDIES
Tony Harrison, Senior Business Development Consultant,
Moffat Centre for Travel Tourism Business Development
Moffat Centre for Travel & Tourism Business Development,
Caledonian Business School, GCU

Business Development
o Marketing and Branding

o Training, Workshops
and Seminars

o Strategy & Policy Review,
Development Guidance
Development & Guidance

o One-to-one Business Advice

Consultancy & Niche Expertise
o Visitor Attractions

o Urban Regeneration

o Destination Management
o Events Assessment

Research
o Feasibility & Impact Studies

o Benchmarking & Best Practice

o Bespoke Research

What is a Feasibility Study?
• Analytical tool (its is not the answer)
tool
is not the answer)
• Helps test whether a business concept is viable
test whether business concept is viable
• It is not a Business Plan
• it contributes to a business plan, mainly in terms of
market viability.....
....but also
also
• Business Model viability
• Management Model viability
Model viability
• Technical viability
• Financial viability
• Exit strategy viability

The Business
Pl
Plan
Feasibility
Study

Defining the Market
Is it:

• Business-to-consumer
•New facility or service (hotel, visitor attraction, restaurant, event, etc.) facility or service (hotel, visitor attraction, restaurant, event, etc.) •New service/innovation within existing facility/service (spa service, new format menu, event lengthening/shortening)

•New target market (conference facilities in hotel, museum, restaurant) •New distribution channels
• travel agent, tour operators, internet/e-commerce/M-commerce)

• Business-to-Business
•Servicing another business (food & drink supply, well-being/spa another business (food drink supply, well
services, training services, sales and marketing services, IT services, etc.)
•Using new suppliers
new suppliers
•Merging/take-over of another business

Feasibility - Information Types
PEST Analysis

EXTERNAL

(Political, Economic, Social,
Technological)

WHAT
WE
KNOW

INTERNAL
• Policy, operational documents
• Organisation objectives,
responsibilities, resources,
budgets, etc.

EXTERNAL

Demand/Market Needs
Needs
• Market Size
• Market Type
• Market Preferences
Preferences

WHAT WE
NEED TO
KNOW

EXTERNAL

Supply/Competitors
• Benchmarking
• Competition
• Partnerships?

Arming Yourself With Information for a
Feasibility Study
WHAT WE KNOW
• our organisation’s objectives
• stakeholder objectives
• present product/service
• local knowledge
• past performance
pe
• customer data
Project Brief –
oject
Arm Yourself With Information
PEST Analysis
(Political, Economic, Social,
Technological)

WHAT WE
KNOW

EXTERNAL
Consumer Analysis
• Market Size
• Market Type
Preferences
• Market Preferences

EXTERNAL

INTERNAL
• Policy, operational documents

WHAT WE
NEED TO
KNOW

• Organisation objectives,
responsibilities resources
responsibilities, resources,
budgets, etc.

EXTERNAL
Competitor Analysis
• Benchmarking
• Competition
• Partnership?

WHAT WE DON’T KNOW
• Attributes of new product/service
of new product/service
• Potential of new product/service
• How can we solve this (i.e. objectives of the
Feasibility Study)
• Research tools –
• visitor surveys
• community consultation
• business consultation
consultation
• benchmarking
• secondary data gathering
• training

Defining the Development and Risk Attached

Low risk

Medium/high risk

Low/Medium risk

High risk

LIMITED FEATURE BUDGET HOTEL
•Improve quality
quality
• refurbishment
• improve grading
(e.g. 3-star – 4-star)
• Pricing strategy
• Promotions
• Training
• Free wi-fi
wi

• Restaurant
• Gym, swimming pool
• Spa facilities

• Theatre breaks
• Weekend breaks
• Student/university market

• Restaurant
• Conferences/meetings
• Wedding venue
• Specialist...
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