Feasibility study for a Restaurant or a Café

Feasibility Study

Feasibility study for a Restaurant or a Café

The true start for any restaurant of café project is a well-studied feasibility study. Some investors may not realize the importance of having a good comprehensive feasibility study which could be a real risk to the project.

          Statistics have shown that quite some businesses fail in the very few months immediately after opening which became a recurrent phenomenon. All indicators show that those projects did not prepare a well-organized feasibility study.

   The feasibility study will determine the market, competitors, cost elements, the required budget and the return on investment, etc. These are all very important information for any newly established business to make accurate calculated decisions necessary for the success of the project.

We can simply say that a feasibility study sheds the light on all the risks and obstacles that may face the business, in addition to the opportunities available and the revenues expected.

Feasibility Study Office in Deyafa Business

Feasibility studies include two main sections with different elements to be covered in each:-

Part 1

Market research & Technical study.

Include Location assessment, nature of the area and the main activities, population density and demography, general features of the market and competitors, etc.

Part 2

Financial Study

Includes capital investment, the project’s budget, in addition to the monthly operation cost and Sales assessment.

Profit & Loss statement for five years, Determine the breakeven point and return on investment, prediction of 3 different scenarios for the project’s results (Profit & Loss statements for 5 years).

    In addition to the main elements of the feasibility study, we can offer valuable assessment of the market and main competitors and a complete analysis of their points of strength and weakness.

Feasibility study for a Restaurant or a Café

Deyafa Business

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