Feasibility Study of a Restaurant

Table of Contents

Informative Analysis 3 Front Matter 3 General Market Characteristics 3 Site Evaluations 3 Supply and Demand Information 3 Supply and Demand Analysis
Step 1: Calculate the Most Recent 12-Month Average
Daily Seat Turnover, Average Daily Check and Average
Daily Seats Demand of the Most Competitive Restaurants 4

Step 2: Composite Growth Rate of Demand from the
Various Markets 4

Step 3: Future Seats Demand Year by Year 5

Step 4: Future Supply of Seats Required 5

Pro Forma Income Statement 6
Breakeven Point Analysis 7
Capital Investment 7
Reference 8 Informative Analysis

Front Matter
This feasibility study is to provide informative and financial analysis for Charlie, who is willing to open his second restaurant, which is similar to his current operation-a relatively medium-price operation catering to the local neighbouring University of British Columbia, Residents and small business trade. The restaurant will serve 62 seats for dinning. The study will evaluate the supply and demand with competitors’ information in the targeted market and budget the new restaurant for the next five years. The new restaurant is expected to open in one year.

General Market Characteristics
The University of British Columbia is one of the most famous universities in Canada. It attracts thousands upon thousands of students over the world. Based on UBC enrolment Statistics 2011/12, the total number of the students in winter session is 48,667 (male students 22082; female students 26585). Amongst all students, the average monthly expenses are $1,107.70 (including rent/residence fees). Over 7 in 10 (74%) students spend money eating out - on fast food or takeout. The new restaurant will be established near the university center on Crescent Road. There are not many restaurants located. But a museum, Buchanan complex, university centre, learning centre, and research