Now that you know how to start a restaurant business in Nigeria, you asked for a Feasibility study on restaurant business, right? Here you have it. Just sit back and enjoy
We say something is feasible when it is practical or possible. The chambers dictionary defines the noun ‘feasibility study’ as an ‘investigation to determine whether a part project, system, etc. is desirable, practicable.’
This simply implies gaining adequate knowledge or carrying out enough findings to know if a business will succeed before starting or venturing into it.
Its no doubt restaurant business is a profitable business in Nigeria, but how can one possibly agree? That’s where the feasibility study comes in.
Feasibility study on restaurant business in Nigeria involves getting enough accurate information on all areas of the business to know if the restaurant business will make profit.
While a feasibility study might sound like a business plan, the former is not the same as the latter.
A feasibility study on restaurant business in Nigeria is not limited to making decisions based on numbers and potential opportunities in the market like a business plan.
Instead, feasibility study takes a magnifying glass to every detail not excluding the market, competitors, numbers, opportunities, etc.
With a feasibility study on restaurant business in Nigeria, you are looking to make the best decision, either to proceed in with the business or stay out of it.
With a business plan, you already made your decision to start a restaurant business in Nigeria and you are outlining how to start and what to expect.
While business plans might or might not overestimate the size of the food target market, feasibility study on restaurant business in Nigeria is more critical.
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The feasibility study will not dwell on probabilities; instead, I will give you solid facts with which to make decisions.
So, here is the question:
How Do I Carry Out a Feasibility Study on Restaurant Business In Nigeria?
Here are 6 practical steps to put in mind when carrying out a feasibility study on restaurant business in Nigeria.
1. Market Statistics
Thorough findings, and not hearsays or guess works about the age and income of your target market gives you knowledge on which to base your decisions.
Truth be told, this one go hard for our country small o(age no dey uniform correlation with salary for the same age group).
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2. Location
You do not need someone from the future or a seer to tell you that an urban location with people and companies is the best option.
Locating your restaurant at the right place is the key to making profits, but do not go overboard, else, all profits will go in to settling the enormous rent.
3. Competition
You do not get things handed to you because you are the latest in the market, tah…when you are not the latest episode of the TV series, game of thrones 8 (*winks)
The day a chorister sits in the congregation as a member during service, there is a new dawning as perception will be changed.
Go to the restaurants around your proposed location and patronise them to see what they are offering, (that’s one idea)
With that, you get to see things with double lens glasses as a customer that wants to be satisfied and a competitor that wants to know the opponent’s edge.
You should ask questions like:
- What are the strengths and weakness of these competitors?
- How similar are they to yours?
- How unique can you stand out from them?
- Lastly, ask yourself, will you prefer your restaurant over theirs any day?
Related: How to setup a successful bakery business in Nigeria
4. Industry
Know the terrain you are about to tread very well. Know the latest news on restaurant business in Nigeria, is it thriving? Stay updated.
What are the risks and opportunities that restaurant or buka joint business owners face? Know thy industry.
5. Cost Involved
Now you know what exactly you want to offer, how about taking a look at that book?
Quick Case Study of Your Restaurant Business: You want to sell more affordable tasty foods and offer more choices on the menu.
Let us do the maths.
- How much will it cost to make that ‘Amala and gbegiri soup’?
- Where can you get yam flour and beans without fail?
Say you have a menu of ‘Amala and Gbegiri soup’, ‘Pounded yam and Egusi’, ‘Akpu and Afang soup’, ‘Wheat and Ewedu’ and each cost #1, 000 except pounded yam which cost #1, 500.
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The cost of food: 1000 (3) + 1500 = #4,500.
If this figure is too high, reduce the number of choices on the menu as this will no doubt do the opposite of selling affordable foods but high priced foods.
Cost is not exclusive to the menu and food materials but also the running of the restaurant business in Nigeria.
Staffs (waiters, cleaners, etc.) and a restaurant manager (if needed) will chop into your budget.
All these should be included in the feasibility study of restaurant business in Nigeria.
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6. Self Examination
You get to a restaurant, and you ask to see the manager; the more curious and unashamed ones go further to ask if he is the owner.
But then he tells you he is not and you are not surprised because it is not unusual.
After carrying out the steps listed above, your restaurant business in Nigeria is good to start.
Still, this is the junction where the feasibility study on restaurant business in Nigeria has you under microscope.
- Are you hot-tempered?
- Can you manage people effectively?
- How service oriented are you?
- How tolerant are you?
If your answer is ‘Not Really’ or ‘No Idea’, then how about looking for an experienced person to manage the business and report to you.
- Are you the type that will return the food served to a customer and chase him or her out because you are angry?
- Are you the type that will give him a stern look because he splashed water on the floor?
If yes I have a free ‘vacancy board’ for you to put outside in search of a restaurant manager.
Summary Notes on Feasibility Study on Restaurant Business
There you have it on 6 practical steps to carrying out a feasibility study on restaurant business in Nigeria, and I hope you found it helpful.
If you are one with little or no experience in running a successful restaurant, as it is not only about good food, then you need to do the right thing and hire a restaurant manager today. You could also learn.
I hope you found this piece helpful, kindly hit the like button and feel free to contribute using the comment box below.