This document discusses various aspects of researching and developing a restaurant business, including: 1. Developing a preliminary restaurant concept and location, creating a pro forma financial statement, and researching the market area and potential competitors. 2. Franchise models can be financially better than organic concepts but require franchise fees and royalties. Successful organic concepts may later convert to franchises. 3. Location is important - both malls and individual shops require applications and have different rental structures and considerations. Demographics, accessibility, and public activity near a location should be analyzed.

1. Research And Development
In Restaurant Business

2. Feasibility Study

3. Estimate construction costs
and development costs
Develop a Preliminary
Restaurant Concept
Pro Forma Financial Statement based on
projected restaurant sales and fixed/variable costs
Research
the Market Area
Survey Potential
Competitors
Analyze the
Selected Site
1
4 5
6
2 3

4. Concept Location Finance

5. Concept

6. Cronut Burger Freak Shakes

7. A prison – Indonesia Botanical Pink theme based

8. In-flight theme based Waterfall Restaurant, Philippines

9. Organic
Franchise Concept

10. Home grown
Demand based
Opportunisms
Organic
Financially better models in
comparison to Franchises

11. Franchise

12. 3Best 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

13. 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.

14. 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

15. Successful Organic Concepts are converted to Franchise
models at a later stage

17. Mediocre products and services have Done well in good location
Whereas the best brands have failed because of the location

19. 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

20. 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.

21. 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 allocated
Chilled water
Gas provision
Sewage line

22. 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

23. 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 !

24. 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

25. Type of product/players available
Price range
Service rendered with the product
Ambience
Location
Competition
Identify market
What more?

26. 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

27. Lets work on a
APC of QR 10
40 seats and
is open for lunch
and dinner
60 people
on weekday
one day of week:
60 x 10 = 600
Assume, 120 covers
on weekend
Total 2400+3000= 5400 /week
5days x 600= 3000
120x10= 1200
Per month 5400x4 = 21600

29. SAVY Hospitality