Feasibility Report for a Fast Food Restaurant
FEASIBILITY REPORT FOR A FAST FOOD RESTAURANT PREAMBLE:
We accept taken out time to address this address for several affidavit amid which are: [pic] This activity serves as allotment of the "private-sector accord initiative" drive boarded by our aggregation [pic] Our admiration to accomplish you amend your present angle about not absent to advance in the Nigerian economy, for now [pic] Our acceptance that this address can anatomy a abject for an continued achievability report, which we achievement you, would agency us to backpack out [pic] Our admiration to accomplish you see the banking activity of this activity [pic] Our admiration to accomplish you see the potentials of the Nigerian bazaar [pic] Our admiration to accompany applicable investments into this country [pic] Our admiration to portray the accurate angel of Nigeria to the alfresco apple [pic] Our admiration to see your aggregation operational in Nigeria It is accordingly our abutting acceptance that afterwards account through this report, there will be a afire admiration to acquire the allowances of advance in Africa's bigger market, and partnering with us in its adventure to blow hearts through the McDonald's heritage. TABLE OF CONTENT 1. DATA GATHERING 2. CONCEPT DEVELOPMENT 3. SITE ANALYSIS 4. COMPETITOR ANALYSIS 5. FINANCIAL STATEMENT [pic] DATA GATHERING [pic]BASIC FACTS ABOUT NIGERIA: AFRICA's BIGGEST DEMOCRACY AND MARKET. FEDERAL CAPITAL: ABUJA
COMMERCIAL CAPITAL: LAGOS POPULATION Nigeria with a citizenry of 113,828,587 (July 1999 EST. ) is the best crawling country in Africa. It has a Citizenry Growth rate: 2. 92% (1999 EST. ) AGE STRUCTURE 0-14 YEARS: 45% (MALE 25,613,974; FEMALE 25,397,166) 15-64 YEARS: 52% (MALE 30,272,539; FEMALE 29,197,611) 65 YEARS AND OVER: 3% (MALE 1,678,732; FEMALE 1,668,565) (1999 EST. ) [pic]MARKET AREA We intend that McDonald's bureaucracy its aboriginal restaurant, in Lagos State. It has additionally affianced bottomward any of these locations for its aboriginal restaurant, namely Broad and Marina Streets in Lagos Island, Awolowo Alley in Ikoyi, and Akin Adesola and Ahmadu Bello Way, in Victoria Island.
There is a academy of anticipation that says that the Bazaar in Lagos is bigger than the Bazaar in alternative countries of West Africa put together. For bodies abreast with Lagos, these locations are prime locations, as they avowal of the attendance of Nigeria’s aerial acceleration buildings, Nigeria’s best acknowledged shops and companies, with their accessory administration and chief staff, who consistently are Nigeria’s creme de la creme. These locations can additionally be admired as Nigeria’s Jugular attitude in commerce. They additionally anon avowal of hosting the best Fast Aliment Restaurants in Lagos. We are already attractive advanced to a advantageous antagonism amid you and them. Addition affection of these locations is that they can be accessed aural 5-10minutes of anniversary other.
It is accordingly accepted to see bodies alive in Victoria Island affective over to a restaurant in Ikoyi, or Lagos Island, and carnality versa. [pic]DEMOGRAPHY OF POTENTIAL CONSUMERS: Age: Infant – 60 and aloft (some fast aliment restaurants accept arena pens for infants) Sex: Male: Female (55%: 45%) Income: $300/year and aloft Usage Rate: Worst Case Scenario: 500 consumers/day Boilerplate Case Scenario: 1200 consumers/day Best Case Scenario: 2000 consumers/day With McDonald's we apprehend abstracts to get as aerial as 1,500, 2,200 and 2,700 respectively. User Status: Ranges from aboriginal time users, Regular users and Occasional Users. For an boilerplate day in the 1ST year of operations:
First Time Users: approx. 10% Regular Users: approx. 50% Occasional Users: approx. 40% Loyalty Status: Aloof (None) 42% Medium: 35% Strong: 20% Absolute: 3% We are about assured that with McDonald's, consumers can be pulled from the aloof categories, to actuality able and complete consumers with McDonald's. Occupation: Predominantly white collar workers, businessmen additionally anatomy a ample admeasurement of consumers. During weekends and evenings, the majority of consumers are accomplished families, couples, lovers etc. Educational Qualification: Secondary (High) academy affidavit holders to PHD holders. Religion: Predominantly Christian and advanced Muslims.
This accordingly means, a willingness/freedom to accessory with people, including the adverse sex in public. Provisions for Takeaway candy additionally acquiesce the anchoress patronize Fast Aliment Restaurants. Social Status: 80% of all classes of association BENEFITS: These are accompanying to some affectionate of advantages looked for in arrogant any business. In the case of Fast Aliment Restaurants, the afterward ambit accept been acclimated to appraise patronage: Economical Attributes of Investment: Medium Rating Convenience: Aerial Rating Prestige: Aerial Rating Hangout Venue: Aerial Rating LOCAL TRAFFIC PATTERNS: Lagos has a aerial cartage pattern. On a active weekday afternoon in Lagos, cartage body is approx. 000 cars/sq. kilometers. [pic] CONCEPT DEVELOPMENT Abstraction development agency authoritative decisions about the apparatus of the fast aliment restaurant concept, including theme, menu, account style, hours of operations. Since this achievability is for the ambience up of an already accustomed name, its abstraction would basically be centered aloft what is anon obtainable. It is about important to accomplish some recommendations, as the abstracts from the citizenry in the bazaar breadth would advice in evaluating a fast aliment restaurant's abstraction that fits the area’s needs and preferences. Lagos Island and its sister island, Victoria Island, anatomy what is alleged Lagos Burghal or EKO.
It is a burghal with a aerial amount of hustle and bustle. In some genitalia of this city, the lights never go out. It is a burghal in which 70 percent of its assignment force comes from abate towns (3-70 kilometers) from aural and alfresco Lagos State, on a circadian basis. This book automatically creates needs in the minds of some migrants to Lagos City, which charge be met, such as: 1. Where do we eat breakfast, because that we ability accept to deathwatch up actual aboriginal so as to abstain the aboriginal morning rush, which after-effects in cartage jams? 2. Where do we eat lunch, because the actuality the demands of assignment and the ambit amid abode and home will anticipate us from activity home? 3.
Where do we eat dinner, because that we ability charge to acquiesce the cartage jam acquired by motorists abrogation Lagos City, subside? Afar from these variables, fast aliment restaurants in Lagos comedy host to bodies who alive in Lagos City, and additionally accommodate a accessory ambiance for businessmen. We would accordingly acclaim that hours of operation p from 6. 45am to 9. 45pm daily. [pic] SITE ANALYSIS Specifically, we would like to attenuated bottomward our armpit chase to Akin Adesola Street, in Victoria Island. This alley is anon affiliated to the arch that connects Lagos Island at the Ikoyi and Old Ikoyi end of Lagos Island: a drive of beneath than 5 minutes.
It is important to agenda that Old Ikoyi is the best big-ticket residential breadth in Lagos State, and it is followed carefully by Victoria Island, which additionally houses the best big-ticket appointment apartments in Lagos State. What this agency is that McDonald's would be adjoining the affluent and tasteful bodies citizen in Lagos State. Akin Adesola Street, which ps about 1. 1Km is anon affiliated to the above streets in Victoria Island such as Ahmadu Bello way, Ozumba Mbadiwe, Adeyemo Alakija, Adeola Odeku, Sanusi Fafunwa, Karimu Kotun and Bishop Oluwole Streets. It cartage body is not too aerial as the alley is dualised. At the alternative end of this artery is the acclaimed Bar beach; with Kuramo bank about the corner. McDonald's would accordingly account from bodies advancing to the bank who crave Take-away.
The attendance of the bank additionally guarantees a connected accumulation of alpha air. Presently, abandoned one above fast aliment restaurant abettor has an aperture on this above road. About Victoria Island there are anon about six fast aliment restaurants and based on the potentials of this breadth of Lagos State it would be an adumbration to say that that Akin Adesola Street, would calmly abode addition restaurant, best abnormally the aboriginal McDonald's restaurant in Nigeria. It is important to agenda that afar from Lagos City, alternative towns in Lagos State, such as Ikeja and Apapa can calmly host a McDonald's restaurant. [pic] COMPETITOR ANALYSIS Fast foods in Nigeria are as old as Nigeria itself.
From the time of Nigeria’s ability fast aliment shops accept been opened in the above towns of Nigeria. It was about not until 1986 that United African Aggregation of Nigeria (UACN) in a about-face bid opened the aboriginal absolute fast aliment alternation of restaurants in Nigeria. Since again a cardinal of alternative operators accept graced the fast aliment restaurant industry stage. Presently, it is one of the fastest growing sectors of the Nigerian abridgement and it would not be out of abode to say that there is already a fast aliment chic in Nigeria, and this is aloof the beginning. In banking term, the fast aliment industry is about a $40 actor dollar market, with over 83% of this bazaar in Lagos State alone.
In accomplishing a able adversary analysis, it will be adapted to aboriginal analyze the above competitors whose attendance will accompany out the best of McDonald's. The above players are MR. Bigg's (a fast aliment restaurant operated by UACN), Tantalizers, Tastees Fried Chicken, Sweet Sensations, Munchies, Favorites, Friends Eatery, Kas Chicken, Fingers (a fast aliment restaurant operated by United Trading Company), St. Elmo’s (a South African Franchise). For this analysis, abandoned the three above fast aliment joints will be discussed. MR. BIGG’S This is a accessory of the big conglomerate, United African Aggregation of Nigeria (UACN). It started operations in 1986, and is acclaimed for actuality the aboriginal absolute abettor of fast aliment restaurants in Nigeria.
Presently, there are thirty-seven outlets advance all over Nigeria, with a massive twenty-two in Lagos State. Plans are on the arena to access the absolute cardinal of restaurants to fifty-seven by the end of the year. An estimated 1200 bodies appointment an boilerplate Mr. Bigg's aperture per day. STRENGHTS • Bigger banking beef • Brand Name acceptance • Acceptable Knowledge of the Nigerian bazaar • Complete abutment of the UACN amassed as it is accounted to be the abandoned accessory anon authoritative a accumulation • Able accent on ancestors and communicable the adolescent • Formation of alliances with companies accouterment commutual appurtenances • Acceptable use of the cyberbanking and book media • Starts operations as aboriginal as 6. 5am, with the ambition of accessory to bodies who appetite a acceptable meal breakfast afore alive hours arise WEAKNESSES • Its backbone fizzles out at the accession of the alternative above fast aliment operators to the adjacency • It is anon not acclaimed for its accomplished food, as it places accent on its candy • The antecedent action that heralded its access to the bazaar seems to accept been lost, as there seems to be “an out of fashion”, awning on it with the attendance of the new entrants. This activity is about appropriate to Lagos, as the aperture of any Mr. Bigg's restaurant alfresco Lagos gives a activity “at continued last”, to the association of these towns TANTALIZERS One of the best able fast aliment restaurants in Nigeria.
They began operations in the Festac breadth of Lagos State in 1995, and aural the amplitude of about six years accept opened seven alternative outlets. The administration of Tantalizers can be admired as actual advancing marketers. Their business action seems to be anon aimed at their competitors. In the aftermost four outlets they accept opened, they accept set up shops about anon adverse or at best, a little abutting to their competitors in the action of cartoon barter to their outlets. STRENGTHS: • Effective Business Action • Convalescent Brand Name Acceptance • Commendable Customer Account • Vastly convalescent banking beef • Business accent is on communicable couples and lovers WEAKNESS: Increasing complaint about the affection of their aliment • About-face into Africa Meals may be their accident as they would be adding their accomplishment amid the Fast aliment restaurant and the new African aliment restaurant • There seems to be an arising chic acumen aural the fast aliment industry, and the activity is that Tantalizers avalanche aural the boilerplate chic category. In alternative words, for austere absent businessmen and the upper-class, Tantalizers would artlessly not appear as their aboriginal best of a fast aliment restaurant TASTEE FRIED CHICKEN It is one of the best able fast aliment restaurants in Nigeria. It began operations in Surulere, Lagos State.
It is attributed to be the additional new bearing fast aliment restaurant, afterwards Mr. Bigg's. At the time of this address they accept abandoned three restaurants. When one considers the time they accept spent in the fast aliment industry in Nigeria, and the actuality that they abandoned accept three restaurants to appearance for it, one would appetite to afield address them off as underachievers. Accomplishing this will about be at ones peril as they assume to be abstraction a alcove amid the business and aerial classes. STRENGTHS: • Convalescent Brand Name Acceptance • Commendable Customer Account • Aerial aftertaste and customer accessory ambiance • Admired as accepting the best aliment in the industry Business accent seems to be on, communicable the business chic WEAKNESS: • Ineffective chic distinction. Chic acumen which they affirmation to be their business action for adorable the business and aerial classes, has not apparent them charging college prices for their account with the acceptance that consumers who amount their articles and account will be accommodating to pay for it. In alternative words, alike admitting it may assume that they are accouterment bigger articles and service, it has not accrued to almost bigger profit, as it seems that their costs are almost college than their competitors, while the profit, which should be proportional to expenditure, is lower. • Business is not advancing [pic] FINANCIAL STATEMENT
Financial Assay will be based on the demography of abeyant consumers of McDonald's as accustomed at in the demographic studies (USAGE RATE) on folio 4 of this report. According to the assay agitated out on absolute fast aliment restaurants, Usage Rate: Worst Case Scenario: 500 consumers/day Boilerplate Case Scenario: 1,200 consumers/day Best Case Scenario: 2,000 consumers/day With McDonald's we apprehend abstracts to get as aerial as 1,500, 2,200 and 2,700 appropriately per restaurant. Using these figures, bold an boilerplate customer spends $1. 5/visit/day, accepted income: For Worst Case Scenario: 1,500 X $1. 5 X 360 canicule per year = $810,000 per year For Boilerplate Case Scenario: 2,200 X $1. 5 X 360 canicule per year = $1,188,000 per year For Best Case Scenario: 2,700 X $1. 5 X 360 canicule per year = $1,458,000 per year
In reality, consumers anon absorb amid $0. 4 - $5 per visit, authoritative our estimated assets assay of $1. 50 per appointment actual conservative. CONCLUSION: The attributes of this address has fabricated us abandoned able to do all-encompassing assignment on areas such as Abstracts Gathering, Abstraction Development and Armpit Analysis. It has abandoned been able to peripherally blow areas such as Adversary Assay and Banking Statement. A able assay on areas such as Adversary Assay and Banking Statement which anatomy an basic allotment of any Achievability work, will abandoned be accessible if the aggregation for which this address has been done and beatific to, finds it all-important to agency us on a added all-encompassing achievability study.
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