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Would the opening of a fast food restaurant on Riddy lane (Luton) represent a sound business proposition?

Extracts from this document...

Introduction

Would the opening of a fast food restaurant on Riddy lane (Luton) represent a sound business proposition? Contents- Terms for reference.........................................................................pg. -Introduction....................................................................................pg.3 -Aims and objectives........................................................................pg.3 Methodology.................................................................................pg.5 Market Research Methods..........................................................pg.5 Questionnaire Design...............................................................pg.5 Sampling...............................................................................pg.6 -Findings.............................................................................pg.7 Questionnaire..................................................................... pg.7 1. Competition......................................................................pg.14 2. Fast food Market................................................................pg.16 3. Location...........................................................................pg.18 4. Target Market....................................................................pg.20 5. Product...........................................................................pg.22 6. Price...............................................................................pg.22 7. Promotion........................................................................pg.23 8. Demand...........................................................................pg.24 9. Business Structure...............................................................pg.25 -Conclusions................................................................................pg.26 -Recommendations........................................................................pg.29 -Bibliography...............................................................................pg.31 -Appendices.................................................................................pg.31 Summary of Questionnaire........................................................pg.31 Blank Questionnaire...............................................................pg.33 Menu's........................................................................................................pg.35 Street Map...........................................................................pg.36 Terms of Reference...............................................................page 1 Introduction.................................................................................. Aims and objectives........................................................................ Terms of reference- The person who has asked me to put this report together is my business studies teacher. The main decision I am trying to reach through the completion of the report is whether the opening of a new fast food business is appropriate to invest in. The date in which the report must be handed in to my teacher is Friday 17th July 2009, 1.50pm. Introduction- What I am trying to find out through the completion of the report is weather a fast food restaurant is a sound business proposition on Riddy lane (Luton). I also am trying to find out the target market and who would be the rivals if a new fast food restaurant is set up on Riddy lane. Finding out the target market would result in knowing who actually consumes the product. Knowing fast food rivals in the area would help comparing pricing for the product. The fast food restaurant is planned to be located on Riddy lane which is located in Luton and the county is Bedfordshire. If the fast food restaurant is to go ahead, my research will have to show high demand for it to be considered a sound proposition. As if there is no demand then the product will suffer a loss which will result in the fast food restaurant being unsuccessful. Aims/objective Aim- The overall aim of this report is to find out if a new fast food restaurant on Riddy lane would be a sound business proposition. ...read more.

Middle

0% said they would travel buy Taxi, 0% said cycle. The most popular way of transport was buy walking and the least was car and taxi. So if a investor would considering opening a new fast food restaurant on Riddy lane they could take in consideration that most potential customers would walk to the fast food restaurant, so they would not have to provide customers with cycle stand which would help them keeping there cost low. They would not have to provide potential customers with parking space as there is already parking space available as well as my results showing not a lot of people would travel buy car. Actual features are what exist in the product itself, such as design, colour, shape, size. From the evidence I have collected I have realised the actual features provided buy the new restaurant might be the takeaway, as it was the most popular result. A subjective feature would create an image that is created in the mind of the consumer. From the evidence I have gathered, I have realised that leaflets is the most popular result. A leaflet is a great way of creating an image of the business in the customers mind as you can describe the business in a way which will attract the customers 6. Demand- The business concept I will use is demand. For a new Fast Food business to succeed it must shows sighs of profit. Potential customers must show demand for the product which is going to be up for sale. Using the demand concept will allow me to identify the consequences if demand is too low or high. If demand is too low, not enough sales will be achieved to cover cost resulting in the business making a loss which could lead to failure. If demand is high this will help the business succeed as potential customers are willing to purchase the product, this will minimise cost and increase profit. ...read more.

Conclusion

However this may not be needed for a franchise is unable to meets its debts the franchisor usually pays the debts. 11. Consumer Spending- From the secondary research I have collected it states that the "consuming spending in 2002 quarter 4 has increased by 1.5 % on the previous year. Leading on to year 2007 quarter 4 has increased by 2.8% on previous year", this shows customers are willing to spend, therefore a new fast food restaurant on Riddy lane would benefit from this as if customer are willing to pay it will increase the chances of demand as well profit, leading the business to be successful. 12. Would the opening of a fast food restaurant on Riddy lane Luton Represent a sound business proposition?- From all the information I have collected and analysed I believe a new fast food restaurant would be a sound business proposition. The main reason for why I have reached this decision is because of the high amounts of demand the business will gain as it will have over 7000 people in the target market. Also I believe as the business is going to be a franchise it would benefit highly from that, as it will have help all the way until the business is successful. I believe that a new fast food restaurant on Riddy Lane would be a profitable business as I have identified the products the competitors provide and have found a gap in the market for providing more of a healthier option as no rival business dose so. However due to the competition the business may not be as successful but I believe the only threat for a new fast food restaurant on Riddy lane would be chicken as it is the only business that is taking advantage over the location it has. Riddy Lane is an ideal place to locate the business as there are a large number of schools, colleges and local residents in the surrounding areas. Also, the easy access to the main road resulting on deliveries being delivered on time and customers are finding it easier to access the restaurant. ...read more.

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