Feasibility Study for ‘White Castle’
Restaurant
1. Description of the business concept and business
Within the past 30 years the restaurant has become a familiar feature of daily life of
Bengali people through influence of western culture. Inspirational Grounds will provide a
relaxing, with freshly roasted foods, specialty drinks, good books, and music.
Inspirational Grounds is the answer to an increasing demand.
A place exists that has yet to be filled for a high-volume, upscale, quality-driven
restaurant with a warm, inviting atmosphere. White Castle meets this need and fills this
place. We offer high-quality products in an upscale environment. Furthermore, our high-
profile location in Gulsan provides a mixed customer base that will maintain high levels
of business in every season, at all times of the day, every day of the week.
2. Company Overview
Name: White castle restaurent (full service)
This restaurant is included in vary vast Food Industry and the property will be registered
in a name of public Ltd. Company. It is due to be opened on August 2010 after all the
appropriate requirements to start the business has achieved. The business will be
expected to grow and extend after its successfulness in near future. It will have its chain
stores on all the major cities within Bangladesh in few years. The goals of the restaurant
will be taking part in the competition with the existing competitor and becomes
successful over them. It will be also careful to its quality of products and service to
compete with the future competitors.
3. Management / organization
a) S.M. Shamim Francis (Manager)
BAHm, MBA (ECO)
5 years work experience as Restaurant manager in Elysium Hotel, Pafos, Cyprus. 2
years experience as a Sales manager in Sheraton Hotel, Dhaka, Bangladesh.
b) Md. Sayed Khan (Accountant and Sales Manager)
MAAc
5 years work experience as a Head Accountant in Park Town International
Restaurant, Dhaka, Bangladesh.
4. Product/Service Description
The product we are going to serve is food with variety of choices and quick services
along with take away and delivery facility. The facility will keep a watch on the healthy
section of the food so, that it can focus on the target market. Our long time goal is to
establish an outside catering service and make the restaurant as a chain
5. Location
The location of the proposed restaurant is set to be in Gulsan VIP area where all the
offices, business complexes and four shopping malls are situated. It is very important and
busy area of Dhaka city.
6. Decoration
The property will be decorated in a three storied building with setup of seats with
suitability of a full service restaurant. The color will be bright and attractive in order to
achieve customer’s attraction. More emphasize will be given to the top and ground floor
as to meet with the name of the restaurant. The exterior and interior designs will be done
by a professional architect and a logo GER (Golden Eye Restaurant) will be placed with
an extra attention.
7. Customers Profile
The targeted customers of the business are the businessmen, office staffs and the people
who are coming to the shopping malls every day. These businessmen all the time choose
to visit some luxurious restaurants which will include our restaurant as well. On the other
hand, all the office staffs usually like to take their breakfast and lunch very fast which
will be provided by our quick take away and delivery services. Since there are four large
Shopping malls are situated around the proposed restaurant, the people visiting malls will
be the best targeted customers of the restaurant. These people are usually going to eat the
nearest restaurants of the shopping malls.
8. Market Analysis
The checklists below are tailored to the restaurant industry, and will serve as a learning
tool to help me understand many of the market factors that impact my profitability.
* What trends are emerging in the food service industry?
* What are the strengths and weaknesses of my competition?
* Is my location suitable?
* Does my concept fill a niche in the market?
* What is the potential number of customers I can serve
per year?
This analysis can provide valuable information on market conditions to help in
forecasting and budgeting. It would also provide a foundation for an effective marketing
plan can be used to project sales volume for a new restaurant venture. The analysis can
provide essential information required in a business plan or feasibility study. The risks of
a business investment would be lessened by careful analysis of the market. (Keeble, D.,
Bryson, J. and Wood, P. (1992b) ‘The rise and role of small business services in the
United Kingdom’)
9. Competition
In proposed market area, the existing restaurants can provide valuable information to
help analyze demand, market opportunities and weaknesses. There are more than 25
restaurants in my market area which include fine dining, café, fast food, international
cuisines, etc. Pizza Hut Goody’s , Mcdonald’s, KFC are some main competitors who
serve’s our current market segments in the area. All of them are very busy all the day
long including the holidays. However, certain elements should be analyzed regardless of
the type of restaurant we are planning.
10. S W OT Analysis:
Strengths: -
White Castle is the periodical demand for this location and specific customer.
White Castle will maintain exceptional quality that might maximize customer full
satisfaction.
Target customers are not far away from business place.
White Castle is central part of the capital so resources are easy to arrange.
Advertise to the different media before opening and even after opening as well.
On going, marketing policy will be much higher than others do.
This will be much more hygienic and clean than others.
Many friends of mine are engaged in different business there and they will carry public
relation to other potential customer.
Weaknesses: -
1. White Castle is completely new business concept.
2. Marketing policy may not affect the customer
3. This restaurant will not attract all levels of customer.
4. Low levels of customer may not come even it is empty.
Opportunities: -
1. If the business goes well I do not have to spend a lot for advertising.
2. Repeat customer will bring more customers through word of mouth.
3. Satisfied customer can bring reputation and loyalty.
4. Ensure employee satisfaction good results customer satisfaction that can make
business more profitable.
Threats: -
Political instability is the biggest issue of threat.
During hartal (strike) period, it has to remain close. If not there is possibility to be
damaged.
Circumstances of random hartal (strike), no employee and customer will be able to come
out from house that is great damage for business.
Hartal is basically political violence or a demand against government from general people
that started from liberation war. Once it was demand but now political party’s violence.
It has two types of affect good or bad. For business it’s always worse.
11. Capital Requirements
One-time Start-up Expenses
Start-up Expenses Amount(Taka) Description
Advertising 6,000 Promotion for opening the business
Starting inventory 40,000 The amount of inventory required
Building construction 200,000 The amount per contractor bid and
other
Costs
Cash 40,000 Amount needed for the cash register
Decorating 22,000 Estimate based on bid if appropriate
Deposits 10,000 Check with utility companies
Fixtures and equipment 140,000 Use actual bids
Insurance 22,000 Bid from insurance agent
Lease payments 4,000 Fee to be paid before opening
Licenses and permits 6,000 Check with city or state offices
Miscellaneous 10,000 All other costs
Professional fees 11,000 Include Chef, attorney, etc
Rent 4,000 Fee to be paid before opening
Services 3,000 Cleaning, accounting, etc.
Signs 1,000 Use contractor bids
Supplies 3,000 Office, cleaning, supplies, etc
Unanticipated expenses 35,000 Include an amount for the unexpected
Other 10,000
Total Start-up Costs 567000 Total amounts of costs before opening
12. Suppliers
I will choose the following suppliers, depending on their ability to supply the fresh
product at the competitive prices in time and most of them are well know, good
reputation, quick delivery and reliable.
Bucher – Dhaka New market is well known for butchery. So, local butcher will be key
supplier.
Dairy goods – Local dairy. (Pran products)
Fruit and vegetables – Local greenery shops (Karaon Bazar)
Whole foods – Local food suppliers (Ahamed products)
Dry goods /cleaning materials – Local good suppliers. ( Radhuni products)
All sales are to be cash basis .On the other side, I apply for credit facilities, as par as the
payments to our suppliers are concerned. As the business is establishing, so the suppliers
accept, 35% on cash and 65% on credit. We hope that by the second year we win the trust
of our suppliers and extend our credit facilities.
13. Licenses and permits needed
Trade license
Local area business permit
Health Department Permit
Sign Permit
HACCP certificate
Fire Department Permit
Air and Water Pollution Control Permit
Country Permit
References
a. Peter Jones, 2nd edi. Food Service Operations, ‘A comprehension survey
of the catering industry’.
b. www.capitalvector.com
c. D.j. Store(1997), Understanding the small business sector.
d. Keeble, D., Bryson, J. and Wood, P. (1992b) ‘ The rise and role of small
business services in the United Kingdom’.
e. www.ProjectConnections.com
f. http://www.cbsc.org
g. http://bestentrepreneur.murdoch.edu.au
