1.0 Introduction:
Conducting a feasibility
study for developing a new business require analysis of market conditions.
Local market condition has a significant impact on the profitability of a new
restaurant. Local market strength affects the number of customer to be served,
process of service delivery, menu design, facilities, and prices that can be
charged to customers. In this report, I will do a feasibility analysis of a new
restaurant in Cheltenham market area.
Objective: This report analyses feasibility of
a new restaurant in Cheltenham
2.0 Proposed Premises:
The proposed property is very near to
Cheltenham town centre, Gloucestershire, GL51 5XQ.This premises is now used as
a public house and restaurant, so it will not affect for me to use this
property as my concept restaurant. This restaurant has 80 seating capacity, toilet
facilities for men and women, 20 Car parking, outside bar overlooking village
cricket green and fixed kitchen for successful restaurant business operation.
Asking rent from
seller is £40,000 which could be negotiated down to £35000, on top of that I
need to give business rate set by local council which is £ ……… We need to do some modernisation, add
some extra facilities, Sign, Logo, and a Website, which could cost another £60,000
to start the business.
Information of
this property has been collected from Sidneyphilips, Please see the Appendix 1
sales brochure of this property.
3.0 Restaurant Concept:
There are various
types of restaurants available in the market to choose. The best choice would
be opening an ethnic restaurant. In the proposed site, the plan is to open an
Indian Cuisine. The name of the restaurant will be Sweet & Spicy.
Restaurant will cater for the all age group. For the kids we will serve
exceptional and mild curry to attract and retain them. In service delivery, latest
technology such as EPOS (Electronic Point of Sale) available in the market will
be used. Additionally, attractive website with integrated online ordering and
payment system will be used. Presentation of the food will make the restaurant
stand out from competitors. Exclusive curry dishes, which are not served in
Cheltenham area, will be included in order to achieve sustainable competitive
advantages.
Name: Sweet and Spicy
Mission: “Customer
satisfaction is our fast priority. We view everyone as VVIP, this include
anticipating customer needs, providing quick and quality service and facilitate
customer needs.
Or
Sweet and spicy
restaurant mission is abbreviation of SERVICE:
S: Smile for everyone
E: Express Empathy
R: Reaching out Every guest with great Hospitality
V: Viewing everyone as a VVIP
I: Inviting everyone to come back
C: Creating a warm atmosphere
E: Eye contact that shows we care
Service:
v
Takeaway
v
Free home
delivery within four mile radius
v
Discount
for group booking
v
Catering
for family events
v
Special
menu for the kids including English food
Facility:
v
Very neat
and clean washroom for men and women
v
Free WiFi
v
Kids
Corner
v
Free car
parking
Menu:
A
La Carte menu in Sweet and Spicy restaurant will be implemented. However, a separate
menu for the desert and coffee will be included.
Starter:
We will offer a variety of selection,
this include vegetable, chicken, lam, and fish.
Main
menu: Customer can choose from
vegetable, chicken, lam, and a wide range of fish (Prawn, King Prawn, Salmon, Trout,
and Roopchanda).
Kids
Menu: Pr & mango puree, scampi, sweet rice, cheese somosa, scampi, fried
chicken, chips and omelette with mushroom, prawn, peas.
Drinks:
We will serve soft drinks such as natural juice, and a selection of wine (white,
red, and rose) and champagne.
Desert:
Selection of desert available in our restaurant
Opening Time:
Price Range:
Providing quality
service at low price is my first strategy in order to win the competition, It
will help me to Create awareness of my restaurant In Cheltenham area.
Lunch: £9 pound
Dinner: Price will
vary according to choice.
Entertainment:
·
Audio
Music.
·
Cultural
Night.
·
Banqueting
Night.
4.0 Emerging Trend in the Food
Service Industry:
Demand and
consumer expectation are changing the outlook of hospitality and leisure
industry. Understanding the Hospitality Consumer presents a distinctive
perspective on consumer behaviour in the hospitality industry. It seeks to focus
on the role of consumption in hospitality and to examine our understanding of
its place in the contemporary industry; this text concentrates on understanding
and determining recent customer needs, relevant factors in consumer buying behaviour,
and the effectiveness of today's hospitality business operation. Therefore,
when we think about a new restaurant we should consider the external dynamics
and consumer trends, which have a great impact in food and hospitality
industry.
Ø
Ethnic
food are more popular in the UK, it is estimated that UK has more than 60% of
total European ethnic restaurant (Millar, 2010).
Ø
Now
consumers are more educated and health conscious, diabetes, heart disease,
cancer childhood obesity are the key issue in consumer mind than ever before. Vegetarian
cuisine, gluten, lactose, casein free food, and decaf are more popular in
today’s food market. Government health media and different social media
encourage people for healthy eating.
Ø
Competition
has increased within the Hospitality industry, bargaining power of the customer
has increased due to more choice available to the customer than ever.
Ø
Ethnic
restaurant are in risk due to tighter immigration law.
Ø
There is
awareness among the consumer to protect and preserve the environment; environment
and social friendly organisation are easily achieving sustainable competitive
advantages.
Ø
Demand of
Organic food is increasing
5.0 Local Market Area:
Demographic and
economic data are very significant to determine potential restaurant sales in
the market, by evaluation this information I can find out the strength of my
local market area.
The average gross
weekly earnings of those working in Cheltenham is considerably high, with the
district ranking being in the top 20% of districts nationally. Average gross weekly
earnings in Cheltenham are 504.80, in comparison with £439.74 in
Gloucestershire and £456.12 nationally. Gross value added in Cheltenham is very
high, compared with Gloucestershire and nationally. GVA per head in Cheltenham
is £21,947.27, compared with £19,831.00 in Gloucestershire and £20,080.93
nationally. From 2006 to 2008 the total number of employees decreased by 1.09%
percent which represent week economic growth. In 2009, self-employment rate in
Cheltenham was 10.82%, which is slightly lower than national rate 11.66%.
Education levels of the Cheltenham area people are very high. In 2008 39.97%
held degree or equivalent qualification compared with national average 29.01%.
The number of people claim incapacity benefit is very low in Cheltenham, there are
only 50.70 people claim incapacity-benefits among 1000 resident.
Cheltenham is the
second smallest town among the six Gloucestershire district and it has second
largest population totalling to113900, (2010, Borough Council). In Cheltenham,
80.90% working age resident are in employment, average total earning per year
£25200, total housing allocation from 2006 to 2026 is 8500 (2012, Borough
Council).
6.0 Competition:
Restaurants
already existing in the market can provide valuable information to analyse the
opportunity and threats of the proposed restaurant. It is important to identify
how many restaurant in the area especially the ones that appeal to the same
customers (market segment) that needs to be served. It is crucial to identify
any restaurant closed in the market area and for what reason (Ryan and Chrisler,
2003).
There are thirteen
Indian Restaurant in Cheltenham, which will affect Sweet and Spicy restaurant
business. After researching online of those restaurants it is clear, they are
doing traditional businesses some of which are 20 years old. There is evidence
of price war between them but no innovation of new products, services, or variety
of menu served. Some of the restaurant has problems with cleanliness. Although
fish is known as healthy food, only few restaurants offer variety of fish. None
of them serve the great fish Roopchanda (Barbacued) which is famous for its
taste.
Strength:
v
All the
experience I achieved working in different successful restaurant is a great
strength for my restaurant, I have gained experience in operation management of
restaurant, supply chain management, complain management and use of modern
technology.
v
None of my
Competitor has online order and payment facility. Use of modern technology
(Epos), online booking, order, payment, and tracking delivery order will
differentiate Sweet and Spicy from others.
v
Free WiFi will
attract students, officials, and children to choose Sweet and Spicy among all
Indian restaurants in Cheltenham.
v
No ethnic
restaurant has Kids corner in Cheltenham, so this new concept will attract
customers to my restaurant.
v
Afternoon coffee in ethnic restaurant is also a
new concept in Cheltenham area. Free Afternoon coffee for registered customer on
every Saturday will create great awareness within my target market and will
boost customer retention strategy.
v
Only two
of the direct competitors (Bhojon, … )
offer variety of fish dishes.
v
No other
Indian restaurant offers organic food. Availability of organic food (chicken
and eggs) upon 12-hour request will give me a competitive advantage.
v
The
location of sweet and spicy in the main road and the premises is easily
accessible.
v
Free and
secure car parking facility gives a competitive advantage.
v
Offering
exclusive curry with persuasive offer will help to build confident about my
restaurant among the consumers.
v
Excellent
service, quality food, and cleanliness will give me competitive advantages.
Challenges:
v
There are
already eight Indian restaurant who have been successful in doing food business
in the area, comparatively New restaurant in a new area, It would be very hard
work for Sweet and spicy to switch from existing brand.
v
To
establish a new brand it will cost a lot of money for promotional activities.
v
Immigration
laws and ban on smoking poses a challenge in today’s restaurant business.
Location:
The property holds
a prominent location at the centre of the village and has extensive roadside
frontage to draw customer’s attention. The premise is within proximate distance
to my target customers. Proposed property is three mile away from Cheltenham
Spa railway station and it is only 2.5 mile away from University of
Gloucestershire. During peak season a large number of tourist and local people,
pass through this road. Additionally, this property is easily accessible and
clearly visible from the road.
Conclusion:
This report is an
invaluable tool for evaluating the probability of success and risk associated
with new restaurant plan for ''Cheltenham Masala .’’ After conclude this report
I can say that establishment of any restaurant is a viable endeavour. The investor
has to consider so many factors, which require in high involvement in decision
making for opening this new restaurant.
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