Entrepreneurs who start new restaurants may overestimate the size of the market in their area and not take into account the tough competition they will face from established restaurants with loyal clientele. Doing a feasibility study prior to investing the time and money to open a restaurant can help an entrepreneur make a more informed decision about the venture's chances of success.

Obtain Market StatisticsStudying demographic characteristics such as age and income will help you estimate the size of your potential market. If you are planning a mid-price, family-style restaurant for example, you need to know how many families reside in your area. A heavy population of singles or college students will probably not support your restaurant. The U.S. Department of Commerce Census Bureau website is a good place to begin your research.

Evaluate Potential LocationsA high-traffic location is preferable, one close to major streets with lots of visibility to vehicle or pedestrian traffic. Make sure parking is ample and easy for customers to access. Look for businesses in the area that could create demand for your restaurant -- large office complexes, hotels or retail centers for example. Be sure to consider the tradeoff between a location's suitability and the lease cost. Saddling a new restaurant with a lease payment that is too high can make it extremely difficult for the venture to reach positive cash flow.

How to Prepare a Feasibility Study

Review the CompetitionLook not only at the total number of restaurants in your immediate area but also at the styles of restaurants that are prevalent. Consider whether your area is already saturated with restaurants similar to the concept you will be offering -- similar cuisine, price point and target markets. Analyze the strengths and weaknesses of each major competitor and determine whether your proposed restaurant will stand apart from competitors and be memorable to customers.

Study the IndustryJoin your state or local restaurant and hospitality organizations. Attend their meetings, talk with other restaurant owners and review any statistical information they publish about the growth and health of the industry. The National Restaurant Association also publishes studies and statistics about industry trends and growth. Decide whether given the current economic environment it is advisable to launch a new restaurant. Find out if any restaurants in the area have closed in the last two years and why.

Look at Your Cost StructureOnce you have a good idea what type of food you want to offer, break down the cost of each menu item. Determine who your major suppliers will be and ask them for pricing. Software programs are available to help you accurately calculate projected food cost. You may consider reducing the number of items on your menu to keep food cost down. You may also find that given the food cost projections, the prices you will have to charge are higher than your local market will support.

Evaluate Management CapabilityAn entrepreneur contemplating opening a restaurant should take a hard look at whether he has the skill set and experience to make the venture a success. He should ask himself whether he has the eye for detail to maintain high customer satisfaction. He needs to be able to train and motivate staff members who may have limited experience or education. He needs to understand how to make the kitchen operation run smoothly. He may determine that it is not feasible for him to be the

general manager of the restaurant's operations and elect to hire a manager who already has a track record of success in the industry.

Complete Restaurant Startup ServiceThis is our most popular and cost effective option for new restaurant startups. This package includes everything you’ll need from start to finish. Conceptually you’ll have 14 major phases and 400 tasks to complete before the restaurant opens. The complete package includes:

1. •Project Management and Consulting: including the tracking of each stage of progress.

2. •Extensive administrative duties including: corporate formation, licensing, liquor licensing matters, logo creation, name registration, trade mark applications, and more. We’ll handle it all for you.

3. •Business Plan creation.4. •Feasibility Study written.5. •Menu development: including vendor selection, products, pricing, and menu design

with maximum profit generation built in.6. •Equipment: we generally save our clients at least 20% or more when compared to

retail list prices.7. •Architectural Consulting: we’ll work with your team to ensure your designs make

sense for the long term.8. •Conceptual Drawings/Renderings: see what your concept will look like! Great for

presentation and investment purposes as well.9. •Liquor license applications: we’ll work with your legal counsel to ensure issuance or

transfer of license.10. •Custom Employee Policy Manuals, Job Descriptions and matching checklists.11. •Coordination of staff food sanitation and alcohol training matters.12. •Training for all front and back of the house personnel.13. •Soft and grand opening guidance…and much more!14. •The Complete Package: the one-stop solution for your whole project from start to

finish. You’ll enjoy working with our highly seasoned consultants as you’re getting the best help available anywhere.

Business PlanEvery new venture needs a quality business plan. You must validate your concept, understand the financial prospects, solidify your concept in writing, and get the bank to APPROVE your loan request. This versatile document is your beginning step to a successful venture! Why not have an informed professional consultant write your plan? This document is prepared in an easy-to-read, tabbed format in a 3-ring binder. Your Business Plan/Pro-forma will be a 20 to 30 page document that includes at a minimum the following items:

1. •Confidentiality Agreement2. •Executive Summary3. •Mission Statement4. •Business Overview5. •Marketing Overview6. •Assumptions and Explanations7. •Year 1 Sales and Profit Projections & Breakeven8. •Year 1 Monthly (Projected)

9. •Year 1 Monthly (Downside)10. •Year 1 Monthly (Upside)11. •Sales / Customer Counts per meal period12. •5-Year Projection13. •5-Year Breakeven14. •Core Menu Rough Draft

Your business plan will be delivered to you within 30 days. I addition, you’ll receive a CD-ROM electronic copy allowing you to make your own changes as your project progresses.