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