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* * * 1 Recognize that service is important. 2 Develop guest-friendly processes that consistently deliver products and services that meet organizational standards. 3 Continuously assess and respond to guests’ ever-changing preferences. Learning Objective (2) Describe the steps involved in developing a feasibility study, and list the three types of marketing research that should follow such a study Feasibility Studies Identifying market area characteristics Evaluating the proposed site Analyzing the competition Estimating demand Projecting operating results Identifying Market Area Characteristics Demographic information about potential guests Age, gender, level of education, marital status, number of children, family income, type of employment, and location of residence. Area’s volume of retail sales, the number and types of industrial and commercial business, the impact of tourism, and available transportation. Evaluating the Proposed Site A feasibility study evaluates the project site and the area surrounding it by researching the number of people living or working in the surrounding metropolitan area within walking distance within easy driving distance the availability and convenience of parking, traffic flow patterns, distances from exits off main highways the location of other attractions that draw guests, such as shopping malls, movie theaters, and other food service operations Analyzing the Competition (1) Location Type of restaurant Source and volume of business Days and hours of operation Menu prices Guest check average Type of service Number of seats Availability of alcoholic beverage service Entertainment Promotional efforts Chain affiliation Analyzing the Competition (2) The type and volume of demand for food and beverage services The adequacy with which the competition satisfies the current demand The strengths and limitations of the competition The points of difference that must be established between the proposed facility and the competition Estima
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