Setting up a medium sized restaurant in Gozo : a feasibility study

Abstract

Purpose: The purpose of this study was to analyse the viability of opening a restaurant in Gozo and thereby determining whether the project would be feasible prior to establishing it. Design: This study will first analyse and review the literature written on the subject of a restaurant's feasibility study. Secondly four steps will follow, as was found to be common in these types of feasibility studies, namely the site selection, competitor analysis, market feasibility and a financial analysis. The methods used were observational research, questionnaires, literature review and an analysis of the results obtained. Findings Out of 300 questionnaires which were distributed, the researcher collected 211 filled in questionnaires. The results were recorded and in conjunction with an understanding of the market size, the customer base and the competition, a plan could be developed as to sales, pricing and operations. It was found that the proposed restaurant had favorable financials, including a positive net present value and profitable figures increasing yearly. Conclusions The proposed restaurant was found to be feasible and a viable business venture. The opening of the medium sized restaurant in Gozo will be profitable in its three year operations. Implications/Value: The study provides an analysis of the proposed business venture over the course of its setting up and operation and could be useful for investors or third parties who are interested in the restaurant business.