RESTAURANT · FEASIBILITY RESEARCH

Restaurant Feasibility Study

Assess new restaurant concepts, expansions or acquisitions through trade-area demand, competitive positioning, site access and operating economics. FDS links customer volume and average check assumptions to financial feasibility.

Restaurant dining room with tables, banquette seating and natural light

THE QUESTIONS THAT MATTER

Test the concept before you commit to the location.

Before committing to a site or an operating plan, test the assumptions that will drive the project’s performance.

  1. Does the trade area fit the concept and target customer?
  2. How do daytime and evening demand differ?
  3. Can the location support access, parking and the operating model?
  4. What customer volume and average check support breakeven?

A CLOSER LOOK AT THE OPPORTUNITY

What the study examines.

Industry-specific research connects site conditions and market evidence to the financial picture.

01 / STUDY SCOPE

Customer & demand

Trade-area demographics, daytime and evening population, and customer demand drivers establish the potential audience.

02 / STUDY SCOPE

Site & access

Traffic, visibility, access, parking and labor availability affect how the restaurant can operate.

03 / STUDY SCOPE

Competitive position

The restaurant category, nearby concepts and competitive offerings help test the proposed positioning.

04 / STUDY SCOPE

Operating model

Food and beverage mix, customer visits, delivery, catering and cost of goods inform the revenue and cost structure.

05 / STUDY SCOPE

Financial feasibility

Average check, volume, staffing and operating costs support EBITDA, breakeven, debt-service coverage and sensitivity analysis.

06 / THE REPORT

Findings in context

The executive summary brings together the project overview, key assumptions and feasibility conclusion. The agreed scope reflects the project and its information requirements.

Share your lender’s requested scope when you enquire. Study requirements vary by project and financing arrangement.

START WITH YOUR MARKET

Restaurant studies by city.

Choose a city for local research questions, relevant sources and the project information to prepare for this study.

These pages cover major US metro markets. For a project elsewhere, share the property address when requesting your study.

BEFORE YOU GET STARTED

Your questions, answered.

What does a restaurant feasibility study cover?

The study evaluates whether a restaurant concept fits its trade area, customer demand, site and competitive setting. Customer visits and average check are connected to the food and beverage mix, staffing and other costs to test the operating and financial assumptions.

Why do lunch, dinner and delivery demand need separate attention?

Nearby workers, residents and visitors may use the same location at different times and for different purposes. Reviewing demand by daypart helps test opening hours, the menu and service model against the customers the restaurant expects to serve.

How is restaurant breakeven evaluated?

The financial analysis connects customer volume and average check with food and beverage costs, labor, occupancy and other operating expenses. Sensitivity scenarios show how changes in visits, spending or costs affect the sales needed to cover the proposed operating model.

What should I provide for a restaurant study?

Share the site, concept, proposed menu and price range, seating or service format, opening hours and available plans. Include development or fit-out costs and operating records for an acquisition or expansion. Describe delivery, catering or other revenue assumptions and any lender requirements.

What determines the study cost and delivery schedule?

A new concept, expansion and acquisition require different research and operating information. The site, competitive market, service format, records available and agreed financial scope shape the quote and schedule. Include your target decision date when requesting a proposal.

PLAN YOUR STUDY

Research questions to explore next.

Prepare for your project discussion with these related feasibility guides.

RELATED PROJECTS

Explore connected industries.

MOVE FORWARD WITH CLARITY

Have a project in mind?
Let’s look at the opportunity.

Request a Feasibility Study