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FEASIBILITY REPORT TO GET A FAST FOOD RESTAURANT PREAMBLE:
We now have taken out the perfect time to write this report for several reasons among which are: [pic] This job serves as area of the “private-sector involvement initiative” travel embarked by simply our company [pic] Our desire to make you reexamine your present stand about unwilling to invest in the Nigerian economy, for now [pic] The belief that report can form a base to get an enlarged feasibility report, which really is endless you, could commission us to carry out [pic] Our prefer to make you start to see the financial viability of this task [pic] The desire to make you see the possibilities of the Nigerian market [pic] Our desire to bring feasible investments into this country [pic] Our desire to portray the true image of Nigeria to the outside the house world [pic] Our prefer to see your business operational in Nigeria Hence, it is our firm belief that after reading through this kind of report, it will have a burning up desire to reap the benefits of investing in Africa’s biggest industry, and joining up with us in its quest to contact hearts throughout the McDonald’s history. TABLE OF CONTENT 1 ) DATA GATHERING 2 .
STRATEGY DEVELOPMENT 3. SITE EXAMINATION 4. COMPETITION ANALYSIS 5. FINANCIAL DECLARATION [pic] INFO GATHERING [pic]SIMPLE FACTS ABOUT NIGERIA: AFRICA’s BIGGEST DEMOCRACY AND MARKET. GOVERNMENT CAPITAL: ABUJA
COMMERCIAL CAPITAL: LAGOS POPULATION Nigeria having a population of 113, 828, 587 (July 1999 RESTE. ) is considered the most populous nation in The african continent. It has a Inhabitants Growth level: 2 . 92% (1999 REPRÉSENTE. ) AGE STRUCTURE 0-14 YEARS: 45% (MALE twenty-five, 613, 974, FEMALE 25, 397, 166) 15-64 YEARS: 52% (MALE 30, 272, 539, FEMININE 29, 197, 611) 65 YEARS AND OVER: 3% (MALE 1, 678, 732, FEMALE 1, 668, 565) (1999 EST. ) [pic]MARKET PLACE We aim that McDonald’s setup the first cafe, in Lagos State. It includes also pinned down any of these locations for its first cafe, namely Wide-ranging and Marina Streets in Lagos Area, Awolowo Highway in Ikoyi, and Similar Adesola and Ahmadu Noble Way, in Victoria Tropical isle.
There is a way of thinking that says that the Marketplace in Lagos is larger than the Industry in other countries of West The african continent put together. For folks conversant with Lagos, these locations happen to be prime places, as they provide the presence of Nigeria’s high surge buildings, Nigeria’s most good shops and companies, using their attendant supervision and senior staff, who also invariably will be Nigeria’s cremefarbig de la cremefarbig. These locations can also be thought to be Nigeria’s Jugular vein in commerce. Additionally they presently provide hosting the best Fast Food Restaurants in Lagos. We are already looking forward to a healthy competition between you and them. One more feature of such locations is that they can be reached within 5-10minutes of each various other.
It is therefore typical to see persons working in Victoria Island going over to a restaurant in Ikoyi, or Lagos Tropical isle, and the other way round. [pic]DEMOGRAPHY OF POTENTIAL CUSTOMERS: Age: Newborn ” 62 and above (some fast food restaurants possess playing writing instruments for infants) Sex: Men: Female (55%: 45%) Profits: $300/year and above Consumption Rate: The worst thing would be: 500 consumers/day Average Case Scenario: 1200 consumers/day Ideal Case Situation: 2000 consumers/day With McDonald’s we expect figures to get up to 1, 500, 2, 2 hundred and a couple of, 700 correspondingly. User Position: Ranges via first time users, Regular users and Infrequent Users. Pertaining to an average working day in the FIRST year of operations:
New Users: approx. 10% Regular Users: around. 50% Occasional Users: around. 40% Dedication Status: Unsociable ( non-e ) 42% Medium: 35% Strong: 20% Absolute: 3% We are even so confident that with McDonald’s, consumers may be pulled in the indifferent classes, to becoming strong and absolute consumers with McDonald’s. Occupation: Mostly white scruff of the neck workers, business people also kind a sizable amount of consumers. During weekends and evenings, the majority of consumers are entire families, couples, lovers and so forth Educational Degree: Secondary (High) school certificate holders to PHD slots. Religion: Predominantly Christian and liberal Muslims.
This for that reason means, a willingness/freedom to associate with people, including the contrary sex in public places. Provisions for Takeaway snack foods also permit the recluse patronize Fast Food Eating places. Social Position: 80% of all classes of society REWARDS: These are linked to some kind of positive aspects looked intended for in patronizing any business. In the case of Take out Restaurants, the subsequent parameters have been used to evaluate patronage: Cost effective Nature of Investment: Moderate Rating Comfort: High Score Prestige: Excessive Rating Hang-out Venue: High Rating COMMUNITY TRAFFIC HABITS: Lagos contains a high targeted traffic pattern. On a busy weekday afternoon in Lagos, visitors density is definitely approx. 500 cars/sq. miles. [pic] IDEA DEVELOPMENT Strategy development means making decisions about the components of the junk food restaurant idea, including theme, menu, support style, hours of procedures. Since this feasibility is for the setting up of an already proven name, their concept could basically always be centered upon what is currently obtainable. It is however important to generate some advice, as your data from the inhabitants in the market area would aid in evaluating an easy food restaurant’s concept that fits the area’s needs and preferences. Lagos Island as well as sister island, Victoria Isle, form precisely what is called Lagos City or perhaps EKO.
It is a city which has a high price of busyness. In some elements of this metropolis, the lighting never step out. It is a town in which 70 percent of its work force comes from smaller neighborhoods (3-70 kilometers) from within and outside Lagos Condition, on a daily basis. This automatically creates needs in the minds of some migrant workers to Lagos City, which must be met, such as: 1 ) Where do we eat lunch break, considering that we might have to wake up very early so as to avoid the early morning run, which results in targeted traffic jams? 2 . Where do we eat lunchtime, considering the fact the demands of work plus the distance among workplace and home prevents us by going house? 3.
Exactly where do we eat dinner, given that we might need to allow the traffic congestion caused by road users leaving Lagos City, settle down? Apart from these types of variables, fast food restaurants in Lagos perform host to people who reside in Lagos Town, and also provide a conducive environment for business men.
It is important to notice that Old Ikoyi is the most expensive residential area in Lagos Condition, and it is implemented closely by simply Victoria Island, which likewise houses the priciest office apartments in Lagos State. What this means is that McDonald’s would be neighboring the rich and tasteful people resident in Lagos State. Akin Adesola Street, which usually spans about 1 . 1Km is straight linked to the key streets in Victoria Area such as Ahmadu Bello approach, Ozumba Mbadiwe, Adeyemo Alakija, Adeola Odeku, Sanusi Fafunwa, Karimu Kotun and Bishop Oluwole Pavements. It traffic density is not too much as the road is dualised. At the other end of this road is the well-known Bar beach, with Kuramo beach nearby. McDonald’s might therefore benefit from people going to the beach whom require Take-away.
The presence of the beach also guarantees a constant availability of fresh air. Currently, only one main fast food cafe operator has an outlet within this major street. Around Éxito Island you will find presently about six junk food restaurants and based on the potentials of the area of Lagos State it could be an understatement to say that that Akin Adesola Avenue, would easily house one more restaurant, especially the first McDonald’s restaurant in Nigeria. It is important to notice that besides Lagos Town, other neighborhoods in Lagos State, just like Ikeja and Apapa can easily comfortably host a McDonald’s restaurant. [pic] COMPETITOR EVALUATION Fast foods in Nigeria happen to be as old as Nigeria itself.
From the time of Nigeria’s independence fast food shops had been opened inside the major villages of Nigeria. It was nevertheless not right up until 1986 that United Photography equipment Company of Nigeria (UACN) in a diversity bid exposed the initial real take out chain of restaurants in Nigeria. Ever since then a number of other operators have graced the take out restaurant sector stage. At this time, it is among the fastest growing sectors in the Nigerian economic climate and it might not be out of place to state that there is already a fast meals craze in Nigeria, and this is just the start. In financial term, the fast food industry is approximately a $40 million dollar industry, with more than 83% on this market in Lagos Express alone.
To do a proper competition analysis, it will be appropriate to first recognize the major rivals whose presence will bring out the best of McDonald’s. The major players are MR. Bigg’s (a fast food restaurant operated by UACN), Tantalizers, Tastees Fried Chicken, Fairly sweet Sensations, Munchies, Favorites, Good friends Eatery, Kas Chicken, Fingertips (a junk food restaurant controlled by Combined Trading Company), St . Elmo’s (a South African Franchise). For this analysis, only the three major fast food joints will probably be discussed. MR. BIGG’S This really is a subsidiary of the big conglomerate, United Africa Company of Nigeria (UACN). It started operations in 1986, and is noted for being the first actual operator of fast food restaurants in Nigeria.
Presently, you will discover thirty-seven shops spread throughout Nigeria, having a massive twenty-two in Lagos State. Strategies are on the floor to increase the whole number of eating places to fifty-seven by the end from the year. Approximately 1200 persons visit an average Mr. Bigg’s outlet each day. STRENGHTS ¢ Biggest monetary muscle ¢ Brand Name acknowledgement ¢ Good Knowledge of the Nigerian industry ¢ Complete support of the UACN conglomerate as it is rumored to be the just subsidiary at present making money ¢ Solid emphasis on family and catching the young ¢ Formation of alliances with companies providing complementary merchandise ¢ Great use of the electronic and print mass media ¢ Starts operations since 6. 5am, with the goal of attending to people who require a good meals breakfast just before working hours commence WEAKNESSES ¢ The strength burns out out on the arrival of some other major junk food operators for the neighborhood ¢ It is currently not observed for its excellent food, since it places emphasis on its treats ¢ The first excitement that heralded it is entrance for the market seems to have been dropped, as there will be “an out of fashion, cover on it with the presence in the new entrants. This feeling is nevertheless peculiar to Lagos, because the starting of virtually any Mr. Bigg’s restaurant outside Lagos gives a feeling “at long last, to the citizens of these villages TANTALIZERS One of the promising junk food restaurants in Nigeria.
That they began operations in the Festac area of Lagos State in 1995, and within the space of about half a dozen years include opened eight other stores. The administration of Tantalizers can be thought to be very intense marketers. Their marketing strategy seems to be directly targeted at their competitors. In the last 4 outlets they have opened, they have set up shops almost straight opposite at least, a little close to their rivals in the process of drawing buyers to their retailers. STRENGTHS: ¢ Effective Web marketing strategy ¢ Bettering Brand Name Identification ¢ Commendable Customer Service ¢ Vastly increasing financial muscle tissue ¢ Advertising emphasis is usually on getting couples and lovers SOME WEAKNESS: Increasing issue about the standard of their food ¢ Diversity into Africa Meals could possibly be their undoing as they will be dividing their effort between the Fast food cafe and the new African foodstuff restaurant ¢ There seems to be an appearing class difference within the junk food industry, as well as the feeling is the fact Tantalizers is catagorized within the midsection class category. In other words, intended for serious oriented businessmen plus the upper-class, Tantalizers would normally not be met with their first choice of a take out restaurant TASTEE FRIED CHICKEN BREAST It is one of the promising fast food restaurants in Nigeria. That began functions in Surulere, Lagos Point out.
It is caused by be the other new generation fast food cafe, after Mister. Bigg’s. In the time this report they have just three eating places. When 1 considers time they have put in in the take out industry in Nigeria, plus the fact that they will only have three restaurants to exhibit for it, one would want to mistakenly write them off while underachievers. This process will nevertheless be by ones peril as they are most often carving a distinct segment among the organization and upper classes. ADVANTAGES: ¢ Improving Brand Name Identification ¢ Commendable Customer Service ¢ High style and client conducive environment ¢ Regarded as having the ideal food in the industry Marketing emphasis seems to be upon, catching the business class WEAK SPOT: ¢ Useless class difference. Class distinction which they claims to be their marketing strategy intended for luring the business enterprise and top classes, hasn’t seen these people charging larger prices because of their service with all the belief that consumers whom value goods and services will be willing to pay for it. Basically, even though it may appear that they are offering better products and service, it includes not accrued to comparatively bigger income, as it appears that their expenditures are relatively higher than their competitors, even though the profit, which should be proportional to expenditure, is lower. ¢ Marketing is not aggressive [pic] FINANCIAL AFFIRMATION
Financial Research will be based within the demography of potential buyers of McDonald’s as found in the market studies (USAGE RATE) on-page 4 with this report. Based on the survey completed on existing fast food restaurants, Usage Rate: Worst Case Scenario: five-hundred consumers/day Normal Case Situation: 1, 2 hundred consumers/day Ideal Case Scenario: 2, 000 consumers/day With McDonald’s all of us expect characters to acquire as high as one particular, 500, two, 200 and 2, seven-hundred respectively per restaurant. Using these figures, assuming a normal consumer usually spends $1. 5/visit/day, expected income: For The worst thing would be: 1, five-hundred X $1. 5 X 360 days and nights per year = $810, 1000 per year Intended for Average Case Scenario: 2, 200 By $1. 5 X 360 days each year = $1, 188, 1000 per year For Best Case Scenario: 2, 700 X $1. 5 By 360 days per year sama dengan $1, 458, 000 per year
In reality, buyers presently use between $0. 4 , $5 every visit, making our predicted income research of $1. 50 every visit very conservative. SUMMARY: The nature of this kind of report has made us only able to do extensive focus on areas including Data Gathering, Concept Advancement and Internet site Analysis. It has only had the capacity to on the outside touch areas such as Competitor Analysis and Financial Affirmation. A proper examination on areas such as Competition Analysis and Financial Statement which contact form an integral part of any Feasibility job, will only be possible in case the company which is why this survey has been performed and delivered to, finds it important to commission us on a even more extensive feasibility study.
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