The intention of the study is to establish the feasibility of opening a fast food restaurant that offers both outside catering and direct selling of pizza, sausage sandwich and eggs, Fried chicken, and Bacon cheeseburger among many others in Manhattan, New York City State, in the United States of America. In taking a simple approach, pizza, Bacon cheeseburger, and fried chicken among the many fast food examples are the most popular among the residents in the Manhattan neighborhood. The population of people around these areas makes the fast food joint to have a good market and hence could make high profits with minimal operation cost. However, sausage sandwich and eggs are not a popular fast food in the Manhattan streets of New York State. Herein, the study will venture into literature that define the feasibility study for a fast food restaurant and then pursue the subject through the main stages that the literature outline in developing and conducting the actual feasibility study in pursuant with the proposals of the market share for the restaurant in the neighborhood. The paper aims at making drawing conclusion for the best fast food restaurant to start be easy by highlighting the details on the market area, competition, financial record analysis and the selection of the location for the fast food joint. For these details to be relevant and best, worth taking into consideration during the decision making process, the feasibility study digs deep into surveys, literature review, professional observational research, and finalizes by concluding on analysis of the results from the study.
Keywords: feasibility study, demography, market area, customer profile, fast food restaurant, fast food
This feasibility plan and study entails rationalization of the best information of a proposed fast food restaurant business. In doing that, the paper highlights the most clear rationale of basic factors in business marketing that include weakness in the fast food industry, the strength, opportunities and the various demerits that the market area may pose to the institution. The paper is to present a proposal to showcase skills and for evaluation purposes and seeks to conduct a feasibility study for a fast-food restaurant selling sausage sandwich and eggs in Manhattan area in New York City State. Manhattan is a suburb of the large New York City State situated about 6.6 miles from the Central Business Division of New York City. Sausage sandwich and eggs is a popular fast food in the nearby areas however many people in the Manhattan neighborhood prefer pizza, fried chicken and even bacon cheeseburger as they are in offer in almost every joint on the streets. The region has a population of approximately 1.626 Million people with reference to the United States census report of 2013. Manhattans enjoy a humid subtropical climate for most of the year except for summer and winter that are the main distinguishing seasons. The region records the highest temperatures with comparison to the rest of the boroughs making up the New York City State during summer seasons. These prevailing conditions make the people demand for a food type that digests quickly and has a high absorption rate in the body. Sausage sandwich and eggs is a sandwich that contains cooked sausages with eggs. The food consist of an oblong bread, such as ciabatta rolls or baguette, that is either whole or sliced then served with sausages with eggs. Sausage sandwich and eggs have relative prices to the common fast foods but they are much cheaper than the likes of pizza and bugger. The food combination is delicious and very nutritious. In addition to that, the food is easy to prepare and one can eat while walking, sitting and even while in the office working. For that reason, introduction of sausage sandwich and eggs to the region would lead to the reduction of the number of sitting customers at the restaurant lounges and serving to customers would be quick and reliably efficient and convenient to the cashier.
Background of the Study
Food is the most important requirement in the world. In a basic set up, the central component that makes people grow and develop is food. The composition of food materials in most cases originates from both animals and plants. Animals and plants provide the most essential nutrients that living things, human beings in particular, ingest and assimilate in their bodies to produce energy, sustain life and health as well as stimulate growth. Carbohydrates, vitamins, proteins and minerals are the main food products that are beneficial to human beings. Emergence of artificial supplements to these carbonic food products elevates their performance in the body (Kshirsagar, 2014, Pg.26). However, Kshirsagar argues that so many people think that popping a pill into their stomachs is equivalent to taking natural or rather whole food but forget that the pills could bring side effects to their lives. For instance, the most recent danger of supplements is the increase in untreatable cancer versions.
Introducing foods that consist of relative percentages of chemicals is paramount to sustaining and maintaining generations. Many people understand the increase of obesity in the young people across the people. A large percentage of the people attribute that fact to the increase of sugar concentration in most foods. High concentration of sugar in food has had a devastating effect to lives like increase in obesity (Rovegno, Bandhauer, 2016, Pg. 313). Disobedience to the World Health Organization’s regulations on sugar concentration in foods is devastating. The misconception that energy intake and conception are directly proportional is very overdue and people need to think beyond and look for considerable ways to maintain and retain energy.
Previously, human beings did source their food from hunting and gathering. Many of the available resources did not allow for utilization of technology. For instance, in those days, only hoes and wood jembes did exist, hence digging and planting large pieces of land was not an option. Climate change brought about changes in feeding habits (Manyeruke, Hamauswa, & Mhandara, 2013, Pg. 2). Manyeruke et al. points out to a case example in Zimbabwe where climate change has indeed lead to changes in dependency to the local main food that many citizens eat. Evolution of human beings underwent many stages in all aspects. For the demand of food due to the increase in human population, human beings had to seek easy methods that can produce high amounts of food to cater for the populations.
The demand for food differs from person to person and so does for a large population. In a town like the Manhattan suburb, some could prefer own cooking of food while some could enjoy ready-made meals from hotels and even outside catering agencies. However, the growing demand for services and the number of people in the working class ensures that ready-made meals surpass the demand for cooking own food. For that reason, Manhattan becomes a large market for fast food restaurants. Competition in business breeds innovation that increases competitive advantage for an institution (Reguia, 2014, Pg. 3). Economics values innovations as strong and valuable inputs to businesses. For instance, the introduction of brand products with new contents enables companies to retain their market share. In that regard, the inauguration of a fast food restaurant offering sausage sandwich and eggs in Manhattan will revolutionize the fast food market in the area. For that reason, the people will have a new option to chose from the already many existing food options.
The fundamental reason for the research is to establish the feasibility of opening a fast food restaurant in Manhattan, New York City State. The exercise will be under the facilitation of data collection through surveys and observational research methods (Saunders, Lewis, & Thornhill, 2016, Pg. 65). Employing observational power in research encourages bias but increases accuracy levels.
In the course of the feasibility plan, the following queries will have responses.
1. What is the market area of the fast food restaurant proposal?
2. What is the customer profile at various times of the day?
3. What is the type of food on demand at the various times of the day?
4. What are the competitive restaurants within the region?
5. How is the state of customer service in the available market area
Market Area: Represents the area under which the restaurant will be and where the restaurant will get customers.
Customer Profile: Refers to the number of customers, gender, monthly income and daily expenditures values.
Competition: Includes both direct and indirect competition for a business and refers to the market, financial and marketing competition.
Demography of the area: Indicates the composition of people their gender and social classes.
The growing demand of sausage sandwich and eggs due to the increasing prices of pizza and bacon bugger creates a large market for the product. Strategic management improves profits for businesses (Lynch, 2015, Pg. 57). The restaurant will command a large market.
In addition to that, the following tables will also appear to reflect the need for a new restaurant in the area. The sample size is 140 people.
1. Where do you take your breakfast, lunch and supper?
2. How much do you pay for pizza and bacon bugger?
3. Have you ever taken sausage sandwich and eggs?
Where do you take your breakfast, lunch and supper?
|In a restaurant near workstation||65||46.43||69.29|
|In a restaurant near home||43||30.71||100|
The results indicate that, a majority of people prefers outside catering and would take their meals from restaurants close to their homes or workstations as that is easy, Saves time and affordable to many.
1. How much do you pay for pizza and bacon bugger?
|Amount in dollars||Frequency||Percentage||Cumulative Percentage|
The results indicate that many people spend more on their meals and that the restaurant can do best in that environment.
Have you ever taken sausage sandwich and eggs?
The responses reveal that the sausage sandwich and eggs are somehow popular among the people and their introduction in the market will revolutionize demands.
Restaurant feasibility study consists of five steps according to the National Restaurants Association. The five sections defining a good feasibility study are as follows (Piotrowski, 2016, Pg. 285). Market area
1. Conceptualization of the restaurant project with references to the market demands
2. Analysis of the location of the market area
3. Analysis of the competition in the market area
4. Analysis of the financial status
5. In-depth focus on the suitability of the location
Piotrowski argues that, for a feasibility study to be reliable, efficient and far reaching in all aspects, it is inevitable to have in-depth insights into the above areas. The above constitute a complete and comprehensive feasibility plan and study that focuses on development. Market area is the fundamental part of a fast food restaurant. For a business to prosper, seeking the knowledge of a strategist is important, as they will give a critical definition of the market area. Manhattan provides a good market area for the establishment of a new fast food restaurant as the area has a high population and the people prefer taking their meals from restaurants. In addition to the market area, conceptualizing the restaurant’s project with regard to the demography numerals, and observational research results plays a key input in the feasibility plan. In the book, ‘Exploring Strategy’ by Gerry Johnson, Richard Whittington, and Duncan Angwin, the authors highlight the need for accessing the market value, believing the proposal is valid within the locality (Johnson, Whittington, & Angwin, 2014, Pgs. 11-13) and strengthen the management of strategy for maximum gains. In addition to that, Robert, N. Grant, in his book ‘Contemporary Strategy Analysis’ argues that, the main themes to the formulation of strategy is the insightful deployment of the business’ capability and resources (Grant, 2014,Pg.36) that counter the demands of the market area. Mr. Grant highlights the need for a good analysis of the competition in the market area as that is important to establish a business on the fabric of innovativeness and development. In the book ‘Spend Analysis and Specification Development Using Failure Interpretation’ Michael K. Holloway presents the essence of financial analysis in the planning and establishment of an institution as a vital ingredient in the feasibility plan. Financial demands create massive impression (Holloway, 2016, Pg.8) to customers who prefer classic outlooks to simple locations. Holloway takes into account the consistent factor in the development of a fast food restaurant to be very important and points out to the same as the driving force behind the success of the famous McDonalds.
For the best findings that are reliable and comprehensive, the feasibility study will revolve around with observational research methods and surveys. Observational research applications are good for collecting data and information relating to the site of the fast food restaurant, identifying the competition in the market area, while the use of surveys will give concrete evidence on the spending patterns of the immediate population or customers. The data from the research through both observational methods and surveys will display the most likely problems that the restaurant will encounter in the course of operations.
Data collection is a one-week exercise that seeks to get in contact with at least a hundred and forty people along the busy streets of Manhattan. For clarity, there are site visit sessions whereby there are interactions with development agents to give details on construction, water, gas and fuel supply as well as healthy standards. In addition to that, an observational research has to feature the constant view of the traffic flow on the streets and there frequency of using restaurants for meals in the course of the day.
Statistical procedures are in use to process and make the data useful. The data is in figures and facts for some surveys. For that reason, descriptive statistics methods are in play to define the spending patterns of the customers.
Surveys may lead to bias of information. Customers may either exaggerate or undervalue the amount they use to pay for meals. In that case, the projection will not feature desirable outcomes hence hinder the progress of the fast food restaurant once in operations. In addition to that, asking for sensitive information from people is hard and not many people are ready to disclose the data. For that reasons, the surveys may be an obstacle. Observational research procedures may be a step backwards as the system is subject to weather patterns and either many people may be on the road in a bid to get home earlier on that day or they may be on the road meeting friends. For that reason, the data will not specify the exact meaning of the many or less people on the streets.
Fast food industry is growing. Many people prefer fast food to having to cook own meals at home in the USA and in many other developed countries like the United Kingdom. Most fast food products are easy to obtain and cheap. In addition to that, the food does not require any sort of preparation after purchasing and one can eat directly after buying. For these reasons, most working class people eat from fast food restaurants. In Manhattan, the story is the same. The town has a high population and the people had a chance to eat sausage sandwich and eggs apart from the popular pizza and bacon bugger. Establishment of a fast food restaurant offering sausage sandwich and eggs will boost the number of options to the many customers who do confirm that they need a new meal to change their diet.
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