Research And Development In Restaurant Business

Feasibility Study

Estimate construction costsand development costs

Develop a PreliminaryRestaurant Concept

Pro Forma Financial Statement based onprojected restaurant sales and fixed/variable costs

Researchthe Market Area

Survey PotentialCompetitors

Analyze theSelected Site

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Concept Location Finance

Concept

Cronut Burger Freak Shakes

A prison – Indonesia Botanical Pink theme based

In-flight theme based Waterfall Restaurant, Philippines

Organic

Franchise Concept

Home grown

Demand based

Opportunisms

Organic

Financially better models incomparison to Franchises

Franchise

3 Best Franschise

Subway (sandwiches and salads) | startup costs $84,300

– $258,300 41,916 Locations worldwide in 2015

McDonald’s  |  startup costs  in 2010, $995,900 – $1,842,700

36,368 Locations worldwide in 2015

7-Eleven  Inc. (convenience stores) |  startup costs  in 2010

$40,500- $775,300, 56,439 Locations worldwide in 2015

Proffered model

More expensive as it involves Franchise fee

Certain % of sales goes to the trademark owner as Royalty

Knowledge transfer

Founded by Mc Donald’s and is now used extensively by most Food And Beverage Brands.

They trademark owner is called the Franchisor and the Business operator is called the Franchisee

The franchisor regulates and helps set up the outlet for theFranchisee and ensure that his trademark standards are being followed

This is a good model for people with Non – Food and Beverage Experience

Successful Organic Concepts are converted to Franchise models at a later stage

Mediocre products and services have Done well in good locationWhereas the best brands have failed because of the location

Malls – Malls often look for new and innovative concepts to drive their footfall. All malls have a leasing committee that carefully scrutinise the applicants along with their concepts before allocating space to them.

They consider a good mix of tenants to boost footfalls

An application is filled in most cases where in a detailed presentation is required about the concept.

Successful applicants see shop locations and are then given lease terms to sign and proceed.

Mall rentals in Qatar are very high currently.

A square Meter can cost anywhere from Qr 350 to QR 450 .

All malls work on an alternative percentage rental. This can be anything from 8% to 14 %

The success of the malls largely dictates the success of

individual business.

These can be anywhere from downtown projects, petrol stations to busy souks.

Getting these locations are very difficult and mostly these locations are acquired through buyouts of non-performing outlets. Don’t forget to check:

Locations in individual shops

Electricity load allocatedChilled waterGas provision Sewage line

Successful Organic Concepts are converted to Franchise models at a later stage

Choose wisely, consider demographics

Accessibility to target group

Make a business plan based on rentals of your chosen location

Parking options

Public activity for engagement – Park, cinema, shopping, sports club

Most business fails as they do not have a feasible business model in place.

Work on your business model

Keep budget

This makes calculating easier as the limit is specified.

Finance

Check your wallet !

Project Cost fit out of restaurant

POS installation cost (Software integration)

Rental for 6 months

Rates for 6 months

Small equipment’s not covered by projects

Cutlery / crockery

Glassware

Shop cost

Interview cost

Agency fees

Mobilisation costs – Medical, PRO costs

Staff Food & Accommodation

Staff Transport

Uniform cost

6 months salary

Staffing Cost

Type of product/players available

Price range

Service rendered with the product

Ambience

Location

Competition

Identify market

What more?

Investment VS Return of Investment

APC (Average per cover)- Determines prices on the menu and the ROI

APC of Karak Time is Qr 14 Of Spice market is Qr 275

Business forecast

Lets work on aAPC of QR 10

40 seats andis open for lunch and dinner

60 peopleon weekday

one day of week:60 x 10 = 600

Assume, 120 coverson weekend

Total 2400+3000= 5400 /week

5days x 600= 3000

120x10= 1200

Per month 5400x4 = 21600

SAVY Hospitality