Case Study

Restaurant Consultancy: Why do you need it?

Pre-Opening Feasibility Report is a Must to insure your Investment

One of the biggest chain of Pan-Asian cuisines who operates in Cambodia, China, Hong Kong, Indonesia, Myanmar, Philippines, South Korea, Thailand, Singapore and many more countries did the biggest mistake of not performing the feasibility check , while opening their outlet in India and invested approx. 3 Crore Indian Rupees on their New Outlet in Gurgaon (Haryana),India.

Outcome

High overheads, High Food Cost, Very High Labor were a recipe to disaster. They “Shut down” in 18 months after a Roller Costar Ride.

Importance of Conducting Feasibility importance Study before setting up your Restaurant

Feasibility study will help you to determine the profitability of the business venture. Before starting a business, seasoned entrepreneurs and investors would want to know if the business would be worth their time, effort and resources. It is worthwhile to know that many entrepreneurs have abandoned solid business ideas because the profitability could not be ascertained on conducting a feasibility study on the business idea.

A feasibility study report will help prove to the entrepreneur, venture capitalists, lenders and investors the existence of the market,the liquidity of the business ventures and the expected return on investment.

Feasibility study will help you identify the flaws, business challenges, strengths, weaknesses, opportunities, threats and unforeseen circumstances that might affect the success and sustainability of the business venture. Just like the case of Pan-Asian Food chain business, the business failure and loss of money would have been avoided if they had carried out a feasibility study. We simply jumped in based on someone’s recommendations because we were flushed with cash and we paid dearly for it.

Before starting a business, feasibility study will enable you Estimate the financial, human and Technological Resources that will be needed to ensure the successful launching of the business. Feasibility study helps to reveal the

Challenges

  • High Real Estate Cost
  • Consumer Preferences
  • Performance Management
  • High Competition

We Offer

Customized Feasibility Report

  • Target Market ,
  • Location Analysis,
  • Competitive Analysis

On an average, a mid-format store in a tier 1 or 2 city costs Rs 70 lakh to Rs 2.2 Crore just to set up, according to a real estate industry official. The rentals and operational costs, including salaries and maintenance, add up to around 32-36% of the total cost of a QSR outlet

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