📊 Restaurant Feasibility Study: What Should It Include in 2025?
🍽️ Before spending a single riyal on your restaurant project, you must start with a detailed feasibility study. Without it, you’re entering a crowded market blindfolded.
1️⃣ Market and Competition Analysis
🔍 The first part of any feasibility study is understanding the market: who are your customers? who are the competitors? what opportunities and gaps exist? These questions form the foundation for smart decisions.
2️⃣ Defining the Concept and Specialty
🎯 Will your restaurant serve fast food or fine dining? Arabic or international cuisine? Clarifying the concept directs every detail — from the menu to the design and staff hiring.
3️⃣ Investment Cost
💰 Includes rent, equipment, licenses, initial salaries, marketing, and more. The feasibility study must clearly define the required capital before any execution.
4️⃣ Expected Revenue Analysis
📈 How many customers are expected daily? What’s the average bill? How many tables are available? These numbers build your income forecast and determine profitability.
5️⃣ Break-even Point
⚖️ The point where costs equal profits. Identifying it helps set a clear goal and evaluate when your restaurant becomes profitable.
6️⃣ Risk Analysis and Solutions
🚨 The study should include backup scenarios — what if demand drops or opening gets delayed? Preplanned solutions make your business resilient to change.
7️⃣ Financial Model
📊 A digital model simulating your financial status for 1–3 years. It shows profits, losses, expenses, and cash flow — the financial heart of your study.
8️⃣ Marketing Plan
📣 The study must include a marketing plan: target audience, advertising channels, launch strategy, and influencer collaborations to ensure strong market entry.
9️⃣ Conclusion
✅ A well-prepared feasibility study saves you huge losses and gives you a clear roadmap. Never start your restaurant without it — preferably done by a specialized F&B consultancy.