When selecting a location, an [investment feasibility analysis model] is required to determine whether a location is suitable for opening a restaurant. Through this model, we can calculate three data: restaurant demand flow, restaurant demand area, and daily rent per square meter

When selecting a location, an [investment feasibility analysis model] is required to determine whether a location is suitable for opening a restaurant.

Through this model, we can calculate three data: restaurant demand flow , restaurant demand area , daily rent per square meter . Compare it with our actual measurement data of people flow, actual restaurant area, and actual rent price to determine whether it is suitable to open a restaurant in this location;

In this model, the investment amount and investment payback period are known.

1. Calculate monthly demand net profit.

Use the investment amount ÷ payback period = monthly demand net profit to get the restaurant's monthly demand net profit.

We can know how much money the restaurant needs to earn every day to recover the investment within the payback period;

2. Calculate the monthly demand turnover.

Use monthly demand net profit ÷ net profit margin (8%~15%) to get our monthly demand turnover.

Through this step of calculation, we know how much money the restaurant needs to make every month;

3. Calculate the daily demand for traffic.

Use the monthly demand turnover ÷ customer unit price to get our monthly demand for the number of diners.

Use the monthly demand number ÷ 30 days to get the daily demand diners;

We already know how many customers are needed to eat every day, and use the daily demand diners ÷ capture rate to get the restaurant's daily demand flow. This means we already know how many people need to pass by the restaurant every day.

Note: daily demand is the first key data we want to obtain.

4. Calculate the monthly rent demand.

Use the monthly required turnover

Use the front room area ÷ the front room area ratio to get the total required area of ​​the restaurant;

Note: required area is the second key data we need to obtain .

Daily rent per square meter is the third key data we need to obtain .

By comparing these three data with our known data, we can determine whether our location is suitable for opening a restaurant;

If you have a fancy for a shop and want to invest 500,000 to open a restaurant, how to judge whether this investment is feasible?

Step one: If the housing contract is five years, and the more reasonable investment return period for and is 1 to 2 years, we can know that our monthly net profit is 20,833 yuan. 500,000÷24=20,833 yuan.

This means that the restaurant’s monthly net profit must be greater than 20,833 yuan in order to recover the capital within two years.

Step 2: Calculate the restaurant’s demand for turnover

We know that the restaurant’s net profit margin is usually 8%-15%. Let’s assume 13%. Using the demand net profit we obtained in the first step, 20,833 yuan ÷ 13% = 120,256 yuan, we get the restaurant Monthly demand turnover;

Step 3: Calculate the number of diners required in the restaurant

Assume that we already know that the average customer price of the restaurant is 25 yuan, and use our monthly demand turnover to divide the customer price to get the number of diners in our restaurant every month, 6411.

6411÷30 can get the number of diners in the restaurant every day = 214 people.

We assume that the capture rate of restaurant traffic is 5%. Using 214 people ÷ 5% = 4280 people, we get the daily traffic of 4280 people in front of the restaurant.

Step 4: Calculate the demand rent price

Usually the rent of a restaurant is 10%~15% of the operating income. We choose 13%. In the second step, the calculated demand turnover is 160256 yuan

Step 5: calculates the restaurant area

Assume that each area of ​​the restaurant is 1.3 square meters, and the table turnover rate is 4 times. Use the number of diners required by the restaurant every day obtained in the third step, 214 people ÷ 4 times, to obtain the number of seats required by the restaurant, 54.

uses the number of seats 54*1.3 (area of ​​each seat) = 71 square meters (dining area). Assume that the restaurant's pool area, walls, and pillars account for 15%, and the restaurant's kitchen area accounts for 25%. Using 100%-15%-25%, we get the dining area ratio: 60%;

finally uses the dining area calculated above to 71 square meters ÷ 60% , we got 118 square meters, this data is the restaurant area we need;

Step 6: Calculate the daily rent of the rent

Through the calculation in the fourth step, we already know that the restaurant’s monthly rent demand is 20,834 yuan. Using this data ÷ total area 118 ÷ 30 days, we get the daily rental price per square meter of the restaurant as 5.89 yuan.

Through these calculations, we got the most important data when selecting the location of this restaurant: people flow, rent, restaurant area , use our actual data, or compare the data obtained from the market with our calculated data above, We can judge the return on investment of and in this restaurant;

If through calculation, we find that the restaurant needs 4280 people per day, and our actual measured person flow is 2000 people. At this time, if we choose this position When opening a restaurant, it is almost difficult to recover the cost ;

For another example, the calculated rental price of the restaurant is 5.9 yuan, and the actual rental price is 10 yuan. At this time, you need to consider comprehensively:

a. If the flow of people in this location greatly exceeds the required flow, then this location still needs to be carefully considered.

B. The actual flow of people in this location is average. What you need at this time is to decisively give up this location. It is difficult to make money by opening a store here.

If you see this, you will find that the essence of location selection is the calculation of the data model. The location that does not conform to the store model must be discarded no matter how good it is. So why are there so many good locations and bad locations all over the street, and even experts can do it successfully? Only when the data is correct will the results be correct. This is the secret that many catering experts keep secret.

Opening a catering store is definitely not as simple as ordinary people think. Only by understanding more can you understand that this industry is very deep. If you are a catering veteran, you will find that after going through the training of the catering industry, you can basically get into other industries at your fingertips.

Well, the explanation of the feasibility analysis and model of investment in catering site selection has been completed. The rest is like business district site selection evaluation, contract signing details, etc. I will update it when I come back from overseas.

After updating the site selection model section, I will explain the regular steps of opening a store, as well as restaurant marketing, product standardization, team management, salary performance, systems, standards, and processes.

wishes all meal creators to do better and better in this endless industry.

I am the headline number: Zhao Wenbo, the author of Wenbo Catering Views

This account only shares the knowledge of business management in the catering industry

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