Feasibility Analysis, Essay Example

Caps Seafood Restaurant

The purpose of a feasibility study is to rationally and objectively analyze the strengths and weaknesses of a proposed business idea. One of the biggest sectors of the business world is small businesses, which are booming in the age of the internet. Now that almost anyone can create a business in a matter of steps, and set up a storefront that connects to customers around the world, places opportunities at people finger tips. When beginning a business, there are several steps that must be taken, which includes gathering the necessary information that will be an outline the business opportunities, and threats that are present in the business environment. One of the most pivotal steps that must be taken include conducting a feasibility analysis in which blueprints the product, the key characteristics of the industry, what the business will do and how it will operate, the employees, and all the other aspects of the new business operations. Within this analysis, this paper will focus on a new and innovative product that will be a viable competitor in their industry.

The Tourist Attraction

Caps Seafood is an exquisite dining seafood restaurant that seats 60, with the focus on high quality serviced located in Knightsbridge area in London. The area is in need of another high quality, high priced, and friendly place with excellent food and service. Caps Seafood is a place where the customer will always know that they will receive the best of everything. Caps Seafood will feature an exquisite dining room and an elegant lounge. The eating are will be supplied with comfortable furnishings and the décor will be decorated with soothing warm tones. The elegant lounge will have plush and comfortable couches, with antique love seats, and a softly lit bar for patrons. Caps Seafood will be the perfect place for families or couples to come in for nice relaxing meal, a drink, celebration, or a small business meeting.

The vision of Caps Seafood is simple, the restaurant will strive to consistently offer customers an impeccable assortment of quality food and service, demonstrated with graciousness, warmth, and efficiency. The vision of Caps Seafood is to have every customer that comes to the restaurant leave satisfied and impress with Caps food and services. The vision is not only to have excellent tasting food, but to also have an efficient and friendly service, because customer satisfaction is our priority. The restaurant wants to be the first choice that the people of Australia choose to go to for high quality fresh seafood. The restaurant knows that this vision will only be executed if the welfare of the employees are equally a priority to the business’s success. In Caps Seafood, everyone will be treated fairly and with the utmost respect.

Tourist Industry

As the global perspective pushes towards being more health conscious, the public has been eager for heart healthy food and low calorie meals that have placed seafood as the one of the fastest growing food categories in the world. The AU represents one of the up and coming seafood markets in the world, in both from a catch and consumption perspective.  Many components are influencing the growth and direction of the seafood market, the least include a move towards sustainability in the retailing and production of fresh seafood and shellfish. “In an effort by the industry to educate consumers on the safety of seafood and the easiness of preparation and cooking.” (Packaged Facts, 2014) Tourism is a significant social and economic boost, which has been perceived throughout the world. Tourism is the provisional development of individuals to goals outside their typical spots of work and habitation. The exercises embraced throughout their stay in these ends by offices are intended to provide food needs of the buyer. The demonstration of going for delight is an extravagance. As of not long ago just a limited few had room schedule-wise and cash to travel. Expanding relaxation, higher salaries and enormously improved versatility have joined together to empower more individuals to share in travel. According to research the seafood industry is thriving, as, “The Australian fishing zone is the third largest in the world; represents just 0.002% of the world’s seafood production;  is the fifth most valuable protein source for Australians, and has to meet the growing demand for seafood.” (Seafood for Australia, 2014)

Product

Based on industry reports, and considering what the customers want, the product that will be the focus of this feasibility analysis, Caps Seafood Restaurant is an excellent conception. The business will provide a casual and contemporary atmosphere, that will be replete with is quality service and signature food. The restaurant will provide a menu with a variety of Australian favorites, including a tantalizing selection of fresh seafood, hot gourmet meals, and grill meats.  The restaurant will also over a variety of drinks that include a notable list of wine, festive cocktails, and microbrew beers. Caps will offer a large arrangement of locally sourced and supplied dishes prepared from regional chef-inspired preparations.

Caps ensure the variety and freshness of seafood and produce with expertise and quality service throughout the day. Several concoctions as well as arrangements will be provided on menus throughout the day, which each item will satisfy the pickiest of taste buds.

Broken down for lunch, dinner, and dessert, some of the dishes that Caps will offer include:

• Fried/Baked/Grilled/ Sautéed Shrimp
• Clam Chowder
• Soups
• Variety of Salads
• Steamed Mussels
• Crab Cakes
• Fresh Crabs
• Oysters
• Fresh Fish (Halibut, Mahi, Tilapia, Swordfish, Bronzino, etc)
• Chilean Sea Bass
• Atlantic Salmon
• Flounder
• Rainbow Trout
• Pastas (Rigatoni, Linguini, Fettuccini)
• Fish/Shrimp Tacos
• Signature Sides
• Tasty Salads
• Steaks & Specialty Meats
• Cakes
• Tartlet
• Pies
• Brulee
• Ice Cream/Sorbet
• Variety of drink specials

The differentiation of the restaurant, is the straightforward method, in which Caps plans to succeed by giving individuals a mixture of phenomenal and intriguing sustenance in an environment that speaks to a wide and shifted gathering of fruitful individuals. Caps will concentrate on keeping up quality and building a solid personality in the Seafood group. The principle center in showcasing will be to expand client mindfulness in the encompassing groups. Caps will administer the greater part of the strategies and projects at the objective of illustrating who Caps Seafood are and what the restaurant does. Caps will keep the benchmarks high and execute the idea so that verbal will be the fundamental showcasing power. Caps Seafood will make an engaging and stimulating environment with magnificent quality at a remarkable cost. An energizing and agreeable restaurant, Caps will again be all the rage. Consequently, the execution of Caps’ idea is the most discriminating component of the arrangement.

Operations Plan

In order to target market, and run the business efficiently, the feasibility analysis must include the operational objectives of businesses which includes: an effective advertising and marketing strategy by garnering questionnaires that are utilized in order to spot the target marketplace for Caps Seafood. For long-term operations, Caps Seafood in 3-5 years will be one of, if not the premier destination for fine dining in the area. The customers will continue to file in and out, and the waiting will be exclusive to high profile clientele and celebrities that are visiting within the area. Caps Seafood will be successful, manage to keep labor and food costs low, while also exceeding the profit.

Another operational objective is Caps Seafood will provide high quality food and service to a unique niche target market:

• The best and freshest seafood in Sydney
• Already have an established customer base with the help of chef and staff members
• Besides offering the best seafood, Caps Seafood will also offer tantalizing specialty meats, healthy and fresh salads, sensational appetizers, tempting assortment of desserts, and refreshing beverages.

With today’s new era, there’s an obvious dynamic modification found all over. One thing is being introduced, and one thing is attenuation to devolution.  The rest of the operations plan includes the proposed location, processes of the production and services, facilities and maintenance processes, graphical illustration, and other components that will help the restaurant run efficiently. This information is valuable as it creates a competitive advantage for the company in knowing how the consumers feel, and what they are searching for in a product.

Location

The location that the company will mainly conduct business on the seashore of Sydney, directly near the Challis Ave Potts Point, near the water. Like many seaside attractions, they depend on the attractiveness of the beaches to appeal to a broader range of customers, and be able to be a popular eatery. This location is optimal in obtaining the full opportunities of the market.  Using this location, we must take into consideration the potential for competition, seasonal variations, and other components that can hinder the company’s growth and reputation. However, with the more options, as well as strong word of mouth from locals, and other sources it will create ways in which, the company is able to get an influx of locals and tourist that visit Sydney.  The company will acquire a space located near the beach, and in a prime location for tourists to see the restaurant by car or foot. The restaurant will be leased on a three year contract, which will be able to test the markets viability. The lease will include options for an additional three year extension, and the option to build on the property. The layout is presented of what the business operations will be conducted. The restaurant will be set up as a  large space in which will provide areas for a large aquarium, 15-tables, strategically placed to allow for a good flow, and space for the wait staff, bar area, cash counter, and large kitchen.  The area as well as the design of the restaurant will provide for a more contemporary casual atmosphere, which will be popular any time of the day. This will maximize the company’s profits, as well as increase the rate of retention of customers.

The flow chart will demonstrate the various stages of production and service Delivery Company will adopt.  This level of production will increase efficiency by already having a large number of resources available,  such as a popular service, a convenient location, and a new venture that will attract tourist and locals, to try out the new cuisine.

Equipment and Facility

The equipment needed for the company includes computer equipment used for POS, which is the best which will cost around $800 for a newer Windows 8 computer, which will also have internet and Bluetooth capabilities for printers, faxes, and scanners. Other supplies include, food preparation equipment that can be purchased from Globe Equipment Company. (www.globeequipment.com). The equipment also includes bar supplies, kitchen equipment, dining room, janitorial, and other quality supplies, that are affordable. The entire facility will be done for around $150,000.  The estimated facility is around 1500 to 2500 sq. ft. that will range from $2500 to $3000 a month.

Maintenance
The maintenance plan includes:

• Develop a Work Order Schedule
• Maintenance Schedule
• Follow instruction manual on cleaning
• Outsourced large equipment maintenance
• Train Employees on Safety and Preventive Measures
• Checking AC Unit
• Checking Plugs and Electrical Outlets
• Checking Equipment (Turned Off/Signs of Overheating)
• Checking Inventory (Record Keeping)

Agreements between staff and management will keep a guarantee that employees will keep their areas clean, as well as food preparation areas, be tidy, clean, and they practice required hygienic standards. Training will be provided for employees in the proper regime, and tool usage. The restaurant will make sure to insure the assets of the company, and keep warranties up to date.

The materials and supplies include the food (majority seafood), meats, bread, fresh vegetables and fruits. Cleaning supplies, and kitchen equipment: slicers, grills, fryers, prep equipment, sinks, and other required restaurant equipment.  The food will be sourced from local vendors, and utilize sub-contractors for implementing technology and equipment. These sub-contractors were chosen, as they will have worked with restaurants within the same region. A contract that will outline all the work that needs to be done in completing the renovations and building of the restaurant. The contract will identify the materials and equipment used, and which party will pay for them (Caps Seafood). The subcontractors will be paid 25% at the start, 50% at the middle, and the last 25% when it is completed.

Inventory Management System

The restaurant will manage inventory through SOS Inventory that works with QuickBooks, the accounting software that will be used. SOS Inventory, “It also lets you manage inventory in multiple locations, track items by serial number and cost history, track multiple stages of work-in-progress, and create pick tickets and packing slips” (Burg, 2013).  The company will also utilize their POS (Point-of-Sale) system that will be the most up to date technology, in keeping inventory of accountings, and other inventory components, that will keep management in order. This will also help in seasonal variations, in which there will always be an increased demand during the holidays specifically, Valentine’s, summer, and Christmas. These holidays, as well as birthdays are essential for the growth of the business, and the business will have software and production of extra supplies ready for the increased demand. When demand is slow, the company will offer coupons, and promotions that will target social media, and other outlets to drum up sales. Around the slow months, predictably the summer, the company will increase promotions and visibility, as well as purchase more foods and supplies, but will keep inventory in refrigerated units for storage.

HR Concerns                                                                        

Caps Seafood will provide services that are friendly and correct. Caps Seafood has hired the best wait staff and chefs to work within the caliber of the restaurant. Working in the restaurant there will be a total of 4 waiters, 1 bartender, 1 concierge, 1 head chef, 3 cooking assistants, and 2 bussers/cleaners, for a total staff of 12. The wait staff will be equipped with the proper training, motivated, and encouraged to give their best each and every day. The management team is composed of individuals who have several years in the restaurant industry, as well as experience working in several businesses that market and promote to a high class target market. In order to be successful the company requires funding from investors, or bank loans that will help in procuring land and development for the company.  The owner, Head Chef, and Manager: responsible for managing the restaurant hiring personnel to work in the restaurant, and seeing that all the proper procedures be taken care of to run the business effectively. The chefs will be trained at the best culinary schools, as well as the other cooking staff. The head chef will be paid $27.50 an hour, where the rest of the kitchen staff ranges from $12.50 to 18 an hour. The wait staff will be paid over the minimum at $10 an hour, and will have experience and additional training in customer service. Each member of the staff will have background experience in the restaurant industry, holds a business degree from a prestigious university, and have teamed up with other individuals that also hold background experience within the industry running similar businesses. More critically have experience operating businesses within the area. Have extensive experience working in the restaurant industry, have experience opening major restaurant, and also a background in business that allows me the ability to manage the books and other finances for the business.

Legal Issues

The company will only require a small amount of employees which includes, the owner which will have duties as an inventory manager, accountant and record keeper, advertising and marketing, and other duties that directly relate to the operation of the business. Two other employees will be hired on a part time basis, to help in producing the soaps, running customer service, and research and development. The two additional workers will be recruited from my circle of acquaintances or family, in that way I already have an established relationship, and know their skillsets.  Each employee has to fill out their tax information, in order to comply with the legal standards, as well as W-2 and Employee Verification Eligibility. The company has to get worker’s compensation insurance for the benefit of both the employees and the company. Once the company expands, recruitment for additional staff will take place at job fairs or through job portals, for well educated, and trained applicants. In hiring a small pool of workers, it cuts back on the salary amount, as well as problems with authority.  The employees will be trained in restaurant management, customer service, and business operations related the restaurant industry. The restaurant will have to comply with Health and Food Safety regulations, The employees will be have their performance assessed monthly, as the feedback from customers is essential in rating the performance of the employees. If the customers are satisfied, then the employees will be rewarded through raise, bonus, gift cards, or other incentives. As a Limited Liability Corporation, the company will have to comply with legal standards, which means providing employees with remuneration packages, since they are half time they will receive an hourly salary of $10.50 an hour for 20 hours a week. They will be afforded the minimum in benefits that include health insurance, in which they can pay extra to get better coverage. If the employee is moved to full time, they are able to receive a monthly salary, full benefits, vacation time, and paid holidays. The package will include money paid to their 401K and retirements if they stay with the company for over a year.

Technical Feasibility

The technical feasibility includes the location, materials, and labor, which will be kept at a minimum. Materials, which was outlined in the above section, include computer equipment and software, as well as supplies for the restaurant (inventory and supplies). The average cost a month for supplies is estimated at $800 to $1500 a month, as buying in bulk decreases the costs. As the company grows, more supplies will be needed each month. However, the rise in profits will outweigh the rise in materials. The labor will stay as a small person operation, as demand grows, the number of employees will compensate the number of demand.  Of course, management has to take into consideration the area is in prime tourist location. The technology that will be used include POS, computer, scanner, printer, and accounting software. With the estimated costs at a low amount, the operations are feasible to be manageable for this startup business, which will allow for the company to offer services at a reasonable price, and still make a profit.

Conclusion

While there are always risks when creating a new business, there will also benefits. Tourism is at an all-time high thanks in part to an increase in festivals, concerts, sporting events, and increase of disposable income. This has left residents with the abilities to plan trips to other countries, and spend money at popular attractions. When businesses are placed near the shore, it can bring an influx of money that will benefit the management and also the local communities. When starting the business there are several elements that must be taken into consideration, which includes implementing a plan of action that will help in outlining management, operations, maintenance, contracts, supplies, and other pertinent details.

References

Australia Tourism. (2014). Australian Government. Retrieved from http://www.tra.gov.au/

Burg, Natalie. (2013). The 5 Best Inventory Management Apps. Forbes. Retrieved from http://www.forbes.com/sites/ups/2013/06/10/the-5-best-inventory-management-apps/

Food Standards Australia New Zealand. (2014). Food Standards. Retrieved from http://www.foodstandards.gov.au/Pages/default.aspx

Globe Equipment Company. (2014). Retrieved from http://www.globeequipment.com/

Pay and Conditions Guide. (2014). Fair Work. Retrieved from http://www.fairwork.gov.au/industries/restaurants-and-cafes/pay/pages/pay-and-conditions-guides

Scarborough, Norman. (2014). Effective Small Business Management. Pearson New International Edition.

Seafood for Australia. (2014). National Seafood Industry Alliance. Retrieved from http://www.seafoodforaustralia.com.au/seafood_for_australia/seafood_for_australia.phtml

US Market for Fish and Seafood, with a Focus on Fresh. (2014). Packaged Facts. Retrieved from http://www.packagedfacts.com/Seafood-Focus-Fresh-1737415/