RESTAURANT FINANCIAL FEASIBILITY AND SENSITIVITY STUDY: A CASE STUDY IN MAIKERU JAPANESE GRILL & BAR

Abstract

Maikeru Japanese Grill & Bar was established during the pandemic back in December 2020, without a proper feasibility study. It is unreasonable to immediately close down the restaurant if it were deemed unfeasible, but it would still be beneficial to see the trajectory of the business. Breakeven analyses were conducted on the restaurant as well as its sister restaurant, William’s Casual Dining, to see if the business is at an acceptable pace. Whether or not the new restaurant is acceptable will refer back to how the older restaurant’s performance. Unfortunately, the supposed reference was not reliable due to the both of the restaurants suffering losses due to the pandemic, and both showed to be not feasible as a business. Through the integrated sensitivity study, it is known that the most impactful factor to the feasibility of the restaurant is its revenue. While the costs have a marginal impact on the overall financial trajectory, a sizeable change in the revenue numbers would make or break the business. The results of this research show that to make the restaurants successful after the pandemic, they would need to focus on increasing their revenues. In Maikeru’s Case specifically, the revenue would need to increase by 268.29%.