Why You Should Have a Feasibility Study Before You Start a New Restaurant

A charming Italian restaurant full of warmth, laughter, and the best of Italian cuisine. That might be your dream, complete with a location picked and the money set aside. It is an amazing dream, but is it practical?

That’s the purpose of a feasibility study – to determine the practicability of an idea. Before committing money and time on an idea, a feasibility study examines the possibility of success and the chances of sustainability in the long-term.

It is particularly crucial for an aspiring restaurant owner to do a feasibility study to avoid becoming a failing statistic.

So what you should consider when doing a feasibility study?

The Location

Will your chosen location facilitate the success of your restaurant? For instance, is it close to a high traffic area where people can easily pop in? Is the general location safe enough that people will not mind dining there all hours of the day and night? Will the restaurant stand out, or are there too many other nearby restaurants offering the same cuisine? These are some of the questions a location feasibility study will help to answer.

The Competition

When doing a feasibility study on the competition, you should try to determine the uniqueness of your idea. Restaurants are everywhere, so what will you offer your customers so that they choose you instead of someone else?

The Market

A market survey analyzes the trends, growth prospects, demographics, income levels of the people in your chosen location, traffic, and cultural factors. Basically, can the market accommodate your restaurant and allow you to see profits?

Rule of Thumb

If you’re not sure about how deep your feasibility study should go, consult with an expert in the industry. For a price, consultants perform the feasibility study for you, then prepare a report determining whether it’s worth it to move forward with your plan. Contact TRG to schedule a consultation.