Restaurant feasibility studies are most effective when multiple site locations are being evaluated or the site is under contract. Feasibility studies generally consist of two parts. First, feasibility studies take into account the site demographics or the study of the population surrounding the proposed location, competition and price value strategies. Additionally we evaluate alternate potential sites, special advantages or hazards of the proposed location for the business, terms of lease, rental rates, special assessments, tax projections and closing costs.
Feasibility studies also require a comprehensive financial analysis of the restaurant’s projected income and operating expenses. Our feasibility studies include market analysis with ROI which serves as the foundation of any comprehensive business plan. Our restaurant feasibility studies provide the restaurant operator a pro-forma and expense statement for the first year of operation with labor projections and wage scales, in addition to food and beverage costs to form the basis of the ‘prime operating expenses’.
Synergy Restaurant Consultants provide detailed feasibility studies that include capital budget expense, sales projections, hourly labor costs, detailed profit and loss statements, and break even analysis with three scenarios: worst case, best case and most likely case. Our restaurant feasibility studies also include cash flow forecasts, working capital requirements, payback forecasts and analysis, general layout and mechanical estimates, equipment and fixture costs, leasehold improvement costs, pre-opening expense budgets and estimates of all general costs.
J.J. Twigs is a new restaurant concept that we plan to open next year in Lake of The Ozarks. During the conceptual development process we recognized the need for a professional feasibility study to determine the financial viability of our new concept and how much capital would be required.
We chose Synergy Restaurant Consultants as our partner in this process due to their extensive experience opening new restaurant concepts and their impeccable references. We spent two days with the Synergy Managing Partners looking at several locations in our market area, conducted a competitive analysis of the competition, reviewed our business plan and helped our team to refine our concept.
The Synergy partners listened carefully to our needs and provided us with numerous recommendations that helped us to fine tune our concept, reduce the capital expense budget and ultimately obtain concessions from our landlord during lease negotiations.
The deliverables of the feasibility study was most impressive and far exceeded our expectations. The detail of the documentation included a realistic capital expense budget, intensive food, beverage and labor cost analysis, and 3 year profit and loss statements and food. The study was most enlightening, helped us set realistic financial goals for the first years of operation.
The feasibility study has become an integral part of our business plan as we look for investors and begin the process of raising capital. We are extremely pleased with Synergy’s work and I would strongly recommend them to anyone considering the development of a new restaurant venture.
Jim Wedig, President, J.J Twiggs
“I want to thank you for producing a document from which the project can actually begin to be molded. You really paid attention to everything we talked about and were able to document it in detail. I could actually begin to visualize it as I was reading – awesome! I am very excited to continue on the path we have begun to go down.”
Rick Ross , President, Bake-N-Burger