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Estimate construction costsand development costs
Develop a PreliminaryRestaurant Concept
Pro Forma Financial Statement based onprojected restaurant sales and fixed/variable costs
Researchthe Market Area
Survey PotentialCompetitors
Analyze theSelected Site
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3 Best Franschise
Subway (sandwiches and salads) | startup costs $84,300
– $258,300 41,916 Locations worldwide in 2015
McDonald’s | startup costs in 2010, $995,900 – $1,842,700
36,368 Locations worldwide in 2015
7-Eleven Inc. (convenience stores) | startup costs in 2010
$40,500- $775,300, 56,439 Locations worldwide in 2015
Proffered model
More expensive as it involves Franchise fee
Certain % of sales goes to the trademark owner as Royalty
Knowledge transfer
Founded by Mc Donald’s and is now used extensively by most Food And Beverage Brands.
They trademark owner is called the Franchisor and the Business operator is called the Franchisee
The franchisor regulates and helps set up the outlet for theFranchisee and ensure that his trademark standards are being followed
This is a good model for people with Non – Food and Beverage Experience
Mediocre products and services have Done well in good locationWhereas the best brands have failed because of the location
Malls – Malls often look for new and innovative concepts to drive their footfall. All malls have a leasing committee that carefully scrutinise the applicants along with their concepts before allocating space to them.
They consider a good mix of tenants to boost footfalls
An application is filled in most cases where in a detailed presentation is required about the concept.
Successful applicants see shop locations and are then given lease terms to sign and proceed.
Mall rentals in Qatar are very high currently.
A square Meter can cost anywhere from Qr 350 to QR 450 .
All malls work on an alternative percentage rental. This can be anything from 8% to 14 %
The success of the malls largely dictates the success of
individual business.
These can be anywhere from downtown projects, petrol stations to busy souks.
Getting these locations are very difficult and mostly these locations are acquired through buyouts of non-performing outlets. Don’t forget to check:
Locations in individual shops
Electricity load allocatedChilled waterGas provision Sewage line
Successful Organic Concepts are converted to Franchise models at a later stage
Choose wisely, consider demographics
Accessibility to target group
Make a business plan based on rentals of your chosen location
Parking options
Public activity for engagement – Park, cinema, shopping, sports club
Most business fails as they do not have a feasible business model in place.
Work on your business model
Keep budget
This makes calculating easier as the limit is specified.
Finance
Check your wallet !
Project Cost fit out of restaurant
POS installation cost (Software integration)
Rental for 6 months
Rates for 6 months
Small equipment’s not covered by projects
Cutlery / crockery
Glassware
Shop cost
Interview cost
Agency fees
Mobilisation costs – Medical, PRO costs
Staff Food & Accommodation
Staff Transport
Uniform cost
6 months salary
Staffing Cost
Type of product/players available
Price range
Service rendered with the product
Ambience
Location
Competition
Identify market
What more?
Investment VS Return of Investment
APC (Average per cover)- Determines prices on the menu and the ROI
APC of Karak Time is Qr 14 Of Spice market is Qr 275
Business forecast
Lets work on aAPC of QR 10
40 seats andis open for lunch and dinner
60 peopleon weekday
one day of week:60 x 10 = 600
Assume, 120 coverson weekend
Total 2400+3000= 5400 /week
5days x 600= 3000
120x10= 1200
Per month 5400x4 = 21600