Feasability 2

George Liveras
The Case of the Polynesian
Restaurant Feasibility Study
The Case of
“The Polynesian” Restaurant / Lounge Bar
Fribourg, Switzerland
Faculty Responsible: David HALL
Prepared By: George Liveras
Class: E70 BBA1
Date: 4th of August
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George Liveras
Signed Statement of Authorship:
I certify that the attached document is my original work. No other
person’s work has been used without due acknowledgement in the text of
this document.
Except where reference is made in the text, this document contains no
material presented elsewhere or extracted in whole or in part from a
document presented by me for another qualification at this or any other
institution.
FULL NAME: George Liveras
DOCUMENT: Feasibility Study, The case of “The Polynesian”
SIGNED:
DATE: 7th of November
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Executive Summary:
The purpose of this project is to determine whether there is sufficient market
demand for the Polynesian, Restaurant / Lounge Bar in the commercial centre of the
Commune of Fribourg, Switzerland. By offering a unique concept and a product that is
designed to be an experience as well as a night out, the Polynesian hopes to gain a
competitive advantage over its competitors by providing added value and a product
with value for money. To determine and position the establishment in the desired
market the study includes a competitive and demand analysis, which in turn determines
the operational estimates.
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Acknowledgement:
The following persons lent support and/or participated directly in helping making
this project a success:
School Faculty:
Mr. HALL, David
Dr. ROWLSON, John
Mr. ROUX Dominique
Mrs. MILLER, Barbara
Mrs. CHARLESWORTH, Zarina
Mrs. HU, Pia
Mrs. BOSCACCI, Caroline
Mrs. CLEMENT Caroline
Independent Sources:
Mr. Mouaimis, Andreas: Owner of Fiji, Polynesian, Ayia Napa, Cyprus (00357-23-725925)
Mr. Varnavides. A: Owner of Pago Pago, Polynesian, Nicosia, Cyprus (00357-22-712777)
Table of Contents:
Executive Summary:.........................................................................................................3
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Acknowledgement:...........................................................................................................4
Table of Contents:.............................................................................................................4
Table of Tables:.................................................................................................................5
Table of Figures:...............................................................................................................6
1. Introduction...................................................................................................................8
1.1. Background of the Study: The Need and the Purpose...........................................8
1.2. The Concept.........................................................................................................10
1.2.1 Target Market Segments................................................................................10
1.2.2 Products and Services: Clear Customer Value...............................................11
1.3. Situation Analysis................................................................................................12
1.4. Methods...............................................................................................................12
1.4.1 Secondary Research.......................................................................................12
1.4.2 Primary Research...........................................................................................13
2.1. Defining the Market Area....................................................................................15
2.2. Demographics, Economics, and Other Characteristics........................................17
2.3. Project Site and Area Evaluation.........................................................................22
2.3.1 Site Description:............................................................................................22
2.3.2 Site Sustainability..........................................................................................23
2.4 Conclusion: Evaluation and Synthesis of Findings..............................................23
3. Competition Analysis..................................................................................................25
3.1. Identification of Potential Competitors................................................................25
Direct Competitors..................................................................................................27
3.2.2. Analysis of Competitions (Dining Attributes).........................................29
Indirect Competitors:..............................................................................................30
3.3. Conclusion Evaluate and Synthesise your findings.............................................31
4. Demand Analysis........................................................................................................33
4.1. Definition of Market Segments............................................................................33
4.2. Demand Estimates...............................................................................................34
5. Recommended Facilities and Services.......................................................................41
5.1. Defining the Concept...........................................................................................41
5.2. Designing for Profits............................................................................................42
5.3. Conclusion...........................................................................................................46
6. Estimated Operating Results.......................................................................................49
6.1. Assumptions ........................................................................................................49
Estimating Revenue................................................................................................51
Estimating Expenses...............................................................................................52
6.2. 5-Year Summarized Income Statement with Analysis and Interpretation...........56
6.3. Sensitivity Analysis with Contingency Plan........................................................57
Conclusion:.....................................................................................................................59
References:......................................................................................................................60
Appendices:....................................................................................................................63
Table of Tables:
Table 1: Function by Area and Seating Capacity............................................................45

Table 2: Restaurant Dining Room Tables by Type.........................................................46
Table 3: Hours of Operation: Restaurant........................................................................49
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Table 4: Hours of Operation: Kitchen.............................................................................50
Table 5: Direct Payroll....................................................................................................53
Table 6: Most Likely Scenario........................................................................................56
Table 7: Pessimistic Scenario..........................................................................................57
Table 8: Optimistic Scenario...........................................................................................57
Table 9: Polynesian Cuisine............................................................................................63
Table of Figures:
Figure 1: Primary Market Area, Fribourg Centre 2005..................................................16

Figure 2: Male to Female Ratio Fribourg 2003..............................................................17
Figure 3: Age Range of Commune of Fribourg (2000)..................................................18
Figure 4 Social Demographics Fribourg.........................................................................18
Figure 5: Evolution of the permanent resident population of Fribourg..........................19
Figure 6: Evolution of National Revenue and Cantonal Revenue..................................20
Figure 7: Project Site, the Polynesian.............................................................................22
Figure 8: Competitive Restaurants in Primary and Secondary Trade Area....................26
Figure 9: Street Map of direct Competitors in Primary and Secondary Area.................26
Figure 10: Sphere of Market Influence...........................................................................35
Figure 11: Frequency of eating out.................................................................................35
Figure 12: Maximum time customers are willing to travel to eat away from home.......35
Figure 13: Days which people eat out the most .............................................................36
Figure 14: Estimated Average Check for the Polynesian................................................36
Figure 15: Meal Periods Customers eat out the most.....................................................37
Figure 16: Restaurant Factors influencing the dining venue..........................................39
Figure 17:Functional Floor Plan of the Polynesian........................................................42
Figure 18:Polynesian Organizational Chart....................................................................44
Figure 19:Volume in (m2) by Function..........................................................................45
Figure 20: of Materials to be used per Revenue Centre..................................................46
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I. Introduction
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1. Introduction
The aim of this Feasibility study is to conduct a market study and build the
structure for the set up of an “Ethnic”, “Theme”, Polynesian restaurant in Fribourg,
Switzerland.
The restaurant to be called “The Polynesian” will combine, Polynesian ethnic cuisine,
in the form of both a dining experience as well as an atmospheric theme.
“There is an increasing trend of themed restaurants and ethnic cuisine. Consumers are
looking for more variety and entertainment from an eating out experience,”
(Anonymous, 2003)
Another market trend is that of healthy food and healthy eating. With the sudden
increase in food health awareness brought about by medical as well as commercial
media, customers in Europe are focusing greater on a healthier diet. (Thomas, J., 1995)
The “Polynesian” therefore, aims not only to enter the market as a new restaurant but
also to follow the growing trend for healthy eating and serve among others health
conscious customers.
1.1. Background of the Study: The Need and the Purpose
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According to Longbottom, 2001 although consumers today are more demanding
and articulate on their eating and drinking requirements, they eat less, focusing greater
on their choice of dishes. Based on Long bottom’s views therefore the proposed
establishment sets to capture the market of Fribourg by incorporating the current trends
of the restaurant industry with that of consumer’s wants and needs.
The selection of the restaurant’s concept is supported by the growing trends for
ethnic themed restaurants and healthy eating. A web site, www.preparedfoods.com,
explains that “theme” and “ethnic” restaurants have emerged, driven by consumers
who are eager for new experiences and by new immigrants coming into the
country. Ethnic cooking has become a popular trend since people travel more and are
exposed to new tastes, Weinraub (2005). Particularly in Switzerland, “High levels of
immigration in the 1980s and 1990s has resulted in a host of Turkish, Arabic and, to a
lesser extent, East Asian eateries opening up in towns and cities across the country”
(Micheloud & Co, 2004).
Due to the fact that Female clientele, are more health and diet conscious and the
ever-increasing role of women (working mothers) in the economy, the “Polynesian”
sets to serve a menu that is both tasty but also healthy as well as fulfilling the need for a
lunch time take away service. According to Halperin, 2002 and Gardner, 2002,
women’s acute interest in their appearance and how the other sex perceives them and
their ever increasing role in the community shows sustainable demand for healthy
eateries with take out services in order to compensate home cooked meals at home.
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1.2. The Concept
“The Polynesian” is intended to be a casual mid scale restaurant including a

lounge bar with a Polynesian element to fit the theme. The restaurant to be serving
Polynesian cuisine focuses greatly on Asian, fish specialties and poultry, providing
numerous of vegetarian as well as healthy food dishes, selected from Hawaii, Tahiti,
New Zealand, Tonga and Samoa. In addition grill specialties, supporting healthier
cooking, are also incorporated in the Polynesian element. Grill specialties are healthier
and offer a larger variety for a wider range of clientele. In all, although the restaurant
concept is Polynesian, the menu will be adapted to the local Swiss market of Fribourg
and its immediate surroundings.
In order to best present the initial concept, the researcher will evaluate the
“idea” in accordance with, (1) target customers and their needs and wants, and (2)
products and services: clear customer value.
1.2.1 Target Market Segments
The target consumers of the restaurant will be students, local residents, shop clerks, day
time shoppers and businessmen. The reasons for these selections are the high volume of
schools and Universities in the area as well as the shopping district itself and nearby
businesses. Despite the fact that ethnic cuisines have a relatively small demand in
Switzerland, of only 1% compared to that of the traditional Swiss cuisine 17%, there is
a plethora of restaurant demand specialties in Switzerland (Source :Switzerland
Tourism in Figures, 2004) (See Appendix 1: Restaurant Demand Switzerland)
supporting the concept.
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The Polynesian sets to capture firstly the international foreign market of
Fribourg who are more inclined to international cuisines, and that of the young adult
population between the ages of 29 to 40. This age group tends to be regarded as a
market demanding a wider diversity in forms of entertainment and Cuisine and also
tends to have the highest disposable income as well as the largest propensity of eating
out (Hensley, 2000).
From the food marketing perspective, as well as concentrating on the female
segment as a driving force, the management aims to develop a healthier menu, smaller
in portion size and tasteful to the palette of men and women alike. Customer
segmentation will be further explained using Geographic, Demographic Psychographic
and lifestyle models.
1.2.2 Products and Services: Clear Customer Value
“Customer Value refers to the consumer’s assessment of the product’s overall capacity
to satisfy his or her needs” (Kotler et al, 2005).
Having already defined the concept and our target market, “The Polynesian”
sets to capture the market as a unique concept and the first Polynesian, ethnic, themed
restaurant in Fribourg. In addition the establishment will follow a fusion concept of
Polynesian islands cuisine. This multicultural fusion of “Asiatic” cuisines will be more
greatly adaptable, giving customers a variety of tastes to choose from. The restaurant
also intends to provide a healthy quick service take out, for lunch and dinner increasing
the total market share, supporting the shop clerk and business target market in the area.
The restaurant and lounge bar, incorporated in the Polynesian theme, will be a mid –
scale table service, of a mid price nature.
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1.3. Situation Analysis
The restaurant is set out to be located in close proximity to the university on rue de
l’hopital and in walking distance to the shopping district of Avenue de la Gare. This
area was chosen to be desirable due to its strategic positioning in the heart of all out
target markets. The proposed site location is 10 minutes walking distance to the train
station, 5 minutes from the shopping centre but most importantly in the immediate area
of the University of Fribourg. In addition the proposed location is relative to “traffic
patterns in the area, visibility, competition, size, access, parking and price” (Rande,
1999).
1.4. Methods
The market research methods that the researcher will use, will determine if “The
Polynesian” will be feasible or not. Methods will consist of both secondary and primary
research.
1.4.1 Secondary Research
Secondary research refers to data collected from books or text written by an expert on a
subject (Cooper and Schindler, 2003). Secondary data will be collected from the
Fribourg Development Agency as well as from the Fribourg Tourist Office.
Information to be collected includes supporting academic peer reviewed articles from
the Internet as well as secure on line libraries as well as articles from books on all
subjects affiliated with this study. As concerns statistical data, the researcher aims to
consult the Fribourg, development and Statistical agencies.
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1.4.2 Primary Research
Primary Research is defined as information or data collected from the natural world
(Cooper and Schindler, 2003). In view of primary research to be conducted, a multi-
method observational approach will be undertaken under the view of a preliminary pilot
study to determine if the restaurant could be feasible in the proposed area and whether
or not it will be appealing to the restaurants target markets. As part of the primary
research the researcher plans to conduct a survey on the concept of the Polynesian
theme and also form a semi structured interview with the owner of a similar Polynesian
restaurant in Cyprus, concerning the nature, concept and overall feel of Polynesian
cuisine.
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II. Market Area Characteristics
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2. Market Area Analysis
 In this section the aim of the author is to determine whether there is sufficient
demand for the Polynesian concept in Fribourg, based on Demographic, Economic
trends and income potential.
2.1. Defining the Market Area
The Polynesian will be located in the district of Sarine in Fribourg. Sarine was
chosen as a market base, due to the fact that it holds the largest population percentage
share. (See Appendix 2: Districts of Fribourg by Population Density).The restaurants to
be located in the shopping district at Rue de Romont 2 1700 Fribourg, on the crossroads
of rue de L’hopital and rue de Romont, (See Figure 1: Primary Market Area, Fribourg
Centre, 2005) was chosen due to its strategic location. It is 10 minutes by foot from the
train station as well as being 5 minutes away from the University of Fribourg. Infact the
site area can be reached by all means of transportation from the surrounding regions in
less then 45 minutes using the A12 Highway (Fribourg Development Agency, 2005). In
addition the site was chosen due to the high density of competitors on rue de Romont
positioned so, as to capture walk-ins from the shopping district.
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Figure 1: Primary Market Area, Fribourg Centre 2005
Source: Swiss-info GEO, 2005
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The Case of “The Polynesian”
George Liveras
2.2. Demographics, Economics, and Other Characteristics

Demographic Characteristics:
With the intention of being an ethnic food themed restaurant, “The Polynesian”
aims to appeal to a target market of young generation Y and also that of female
clientele. The communal age of the majority in Fribourg, 23,373 (65 %) are between the
ages of 20 to 64, years old, (See Figure 3: Age Range of Commune of Fribourg, 2000)
whilst 18,953, (52.07%) more than half of the communal population, are women
(Statistics Fribourg 2000).
Figure 2: Male to Female Ratio Fribourg 2003

Male to Female Ratio Fribourg (2003)
Female 52%
Gender Type
Male 48%
46% 47% 48% 49% 50% 51% 52% 53%

Percentage of total population
Source: (Statistics Fribourg 2000)
The majority being women is a major strength for “The Polynesian”, since
according to (Halperin, 2002); Women are more diet conscious and more aware of the
increasing variety of emerging ethnic cuisines. In addition women between the age
group of 25 to 39, with children are also more predisposed to healthy eating than men.
“The Polynesian” will thus promote itself concentrating on the female population as the
driving market force by providing a menu which will be healthier and smaller in portion
size however palatable to both men and women.
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Other target markets incorporating women include Yuppies and Dinks. Yuppies
and Dinks are acronyms for Young Urban Professionals, and Double Income No Kid’S.
According to (Kotler et al, 2005) and (Gastro Suisse, 2004), Yuppies, between the ages
of 20 to 30, tend to have a higher frequency of eating out, whilst Dinks tend to be more
family oriented in their choice of dining venues as well as more price sensitive. Both
groups are behaviourally described as having the tendency of dining at trendy locations
and enjoy luxury items.
Figure 3: Age Range of Commune of Fribourg (2000)

Age Range of Commune of Fribourg (2000)
65 + 15%
Age
20 - 64 66%
0 - 19 19%
0% 10% 20% 30% 40% 50% 60% 70%

Percentage of Population
(Source: Swiss Federal Statistical Office, 2005)
According to Federal statistics, Fribourg has a large student and recent graduate
population. Fribourg has 18.623 students incorporating 52.4% of the total communal
population. Henceforth one of the direct projected target customers are to be students.
Figure 4 Social Demographics Fribourg

Social Demographics Fribourg
Widows 6%
Social Status
Divorced 6%
Married 38%
Single 50%
0% 10% 20% 30% 40% 50% 60%

Percentage of the Total Commune of Fribourg
(Source: Swiss Federal Statistical Office, 2005)
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Most of the other half 17,825, (50.14%) Almost 17,825 which stands for (50%)
of the gainful population are single whilst 13,581 (38%) are married (See Figure 4:
Social Demographics Fribourg, 2000). Having both sexes working, it is plausible to
assume a higher disposable income and less available time to cook. This is due to the
fact that there is a limitation on the lunch break time, which lasts from 12 to 1.30 p.m.
(Source: Swiss Federal Statistical Office, 2005). For this reason the Polynesian
incorporates a take away function in its operation.
Economic Indicators:
According to Pittet, M (2004) Fribourg’s population growth has been rising
dramatically these past 20 years, as a result becoming the 10th largest city in Switzerland
(Switzerland Statistics, 2005).
Figure 5: Evolution of the permanent resident population of Fribourg
Source: Pittet, M (2004)
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According to the Fribourg Development Agency, 2004, Fribourg has a rising
economy due to the following reasons:
• Salaries and living costs are on average 20% to 30% lower than both Zurich and
Geneva thus making the purchasing power about the same as in the two cities.
• Taking into consideration that the salary of expatriates is not always adapted to
this Swiss phenomenon, to live in the canton of Fribourg allows foreign
investors to enjoy even more purchasing power
• The Canton of Fribourg provides new businesses and foreign investors with low
tax rates and financial support.
• Fribourg has an unemployment rate of 2.90% whilst the average unemployment

of Switzerland is 3.70% and an inflation rate of only 1% in respect to a national
inflation rate of 1.90%.
Figure 6: Evolution of National Revenue and Cantonal Revenue
Source: Pittet, M (2004)
These benefits are an advantage for the restaurant, since a rise in foreign
immigrants increases firstly Investment, due to Fribourg being an attractive market,
resulting in an increase in money supply. This increases the standard of living and thus
affects the economy of Fribourg positively, i.e. People have more money to spend.
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Consumer Spending Behaviour:
According to (Kotler et al., 2003) behavioural segmentation, ties consumers together
based on their knowledge, attitude, use or response to a product. The female target
segment has different behavioural criteria in their dining habits. The addition of children
to our customer base at this age frame, impacts on guests dining patterns and selection
criteria. Factors of location and distance have thus been heavily taken into consideration
supporting the decision to select the city centre as the ideal location for our
establishment. This particular age group of “Dinks” is price sensitive due to housing and
family oriented expenses. The aforementioned supports the researchers’ decision of
being a casual mid priced restaurant. It is therefore concluded that our proposed
restaurant will satisfy the characteristics of the above groups.
Future Development in the Market Area:
As a result of a domestic survey done in Switzerland by the Swiss Graduate School of
Public Administration in 2005, Fribourg was found to hold the highest quality of life in
Switzerland in accordance to 5 categories:
 living conditions
 economic dynamism
 culture/health/social environment
 environment/traffic
 Politics/institutions.
This will do nothing but increase the cantons growth and encourage domestic travel,
giving way to new opportunities for a unique restaurant concept such as the Polynesian.
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2.3. Project Site and Area Evaluation

2.3.1 Site Description:
The site of “The Polynesian” is to be located on the crossroads of rue de L’hopital and
the pedestrian shopping district of rue de Romont. The reasons supporting this decision
is to have access to the three demand generators of the immediate market area, whilst
still being in close proximity to key Access points and traffic densities. The three
demand generators, taken into consideration are the University, the Shopping districts
and the Business District of Fribourg’s commercial centre. (Please refer to Appendix 3
and 4 for Broad geographic description & Meal periods and location guidelines).
Figure 7: Project Site, the Polynesian
Source: Tele Atlas 2005
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2.3.2 Site Sustainability
In terms of the sites competitive point, the site can be reached by train, car, as
well as by foot due to its centralised location in the commercial canter. The Project Site
is surrounded by commercial shops, cafés, restaurants as well as cathedrals and
museums as well as being positioned in the heart of its competition. This as a result
enhances visibility and eventually the establishment’s fair share. (See Appendix 5: Site
Sustainability)
2.4 Conclusion: Evaluation and Synthesis of Findings

In accordance to data presented by the Market area Analysis and The Project
Site Evaluation, it is the author’s view that the market and area selected for the
establishment is favourable. The reasons supporting this are:
• Fribourg is becoming an upcoming market

• The restaurant itself offers a multifunctional approach to its different target
markets
• It is unique in concept and style, in relation to the existing competition in the
area
• That it is a restaurant adapted to the market and not vice versa
A weakness or disadvantage to the area is the fact that opportunity and money to be
made will attract greater competition in the long run.
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III. Competitive Analysis
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3. Competition Analysis
In the case of “The Polynesian”, as there is no other Polynesian restaurants in
Fribourg, (Observational research, 2005) the objective is to identify and perform a
benchmarking evaluation on our closest competitors as well as position the restaurants
potential to them. To accomplish this analysis, various tools will be used such as
Porters five forces as well as a Swot analysis. Methods used focus on the internal and
external factors (Micro and Macro) affecting the restaurants competition.
Findings from SWOT & Porters Five Forces:
The outcomes of the two marketing strategies mentioned above indicate a
favourable political stability in the area and an increase of people’s concern for their
health and diet. The Polynesian cuisine satisfies very well the above concerns
promising great potential for success. (Please refer to Appendix 6 & 7 for Porters Five
Forces and SWOT analysis).
3.1. Identification of Potential Competitors

In the canton of Fribourg specifically in the city centre, there is a lot of
competition. This is due to the fact that although people have more disposable income
they have less time and thus can not afford to travel too far for a bite to eat. The
majority of restaurants can be found in the region of my prospective location, the reason
being, that restaurants in the area target, walk- in customers.
(See Appendix 5: Project site competitive position)
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Figure 8: Competitive Restaurants in Primary and Secondary Trade Area
Source: (Map.Search.CH), (Observation, 2005)
Figure 9: Street Map of direct Competitors in Primary and Secondary Area
Source: (Map.Search.CH), (Observation, 2005)
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Direct Competitors
In both the primary and secondary area the author has identified four
competitors which are considered to be direct (See Figure 9: Street Map of direct
Competitors in Primary and Secondary Area). Both these areas have been selected
according to the demand generators in the area as well as walking distance from and
around the “Polynesian”.
Being that there is no other Polynesian restaurant in Fribourg; competitors were
chosen to be any establishment which is the closest substitute to the Polynesian. In this
way the author selected the Asian restaurants in closest proximity having a similar price
range, as well as restaurants that target the same target market. Reviewing the analysis
of Physical and Dining attributes, the Fu Lin restaurant seems to be the closest
competitor to the Polynesian offering a similar product at a similar price range, at the
closest proximity to the Polynesian. The Fu Lin however lacks the atmosphere and
ambience of service that is set to be provided in the Polynesian. The Plaza Lounge Bar
although not similar in cuisine is considered to be a direct competitor due to its
multifunctional concept and influence it holds over our target markets.
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3.2.1. Analysis of Competitions (Physical Attributes)
Product & Opening Times

Property Name Service
Location Accessibility Visibility Exterior Interior
Rue de Romont1 Underground parking The building The exterior will 120 seats, 2 profit Meal Periods
Independent casual mid-
1700 Fribourg / FR. facilities with room for a although visible from mirror the Polynesian centers: Dining 11:30a.m –2pm
priced, themed Restaurant
1000 cars are situated on the street will have a theme giving Room 6p.m. – 11p.m
& Lounge Bar offering
10 minutes walking rue de l’hopital and unique theme that ambience as well as Lounge Bar
Ethnic Polynesian dishes
distance from the Grandes Place, as well as will enhance its attracting passer-by’s All decorated in Lounge Bar
for lunch and dinner. Take
station. parking spots near the visibility greater. for a unique Polynesian theme. 11:30am-11:30p.m
away service provided
station. experience
On main avenue with Positioned directly in
Independent casual mid- Av. de la Gare 8 parking facilities front of the station Un-inviting 40 seats,
priced Chinese restaurant 1700 Fribourg / FR. available at the train and coloured red it unattractive side crammed in front Meal Periods
China Town with table service a la 5 minutes station. (Parking is catches the passer- entrance brings down moderately
carte menu, serves lunch Walking distance limited during the day at by’s attention the quality standard. decorated 10:00am – 11pm
and dinner. Take away from the station and peak hours) Gets access effectively. On busy dirty street
and delivery service 10 from the to customers from COOP
provided. Polynesian. city
R. du Criblet 13 On back streets behind 15 bar stools with 5
Independent, cheap fast 1700 Fribourg / FR rue l’hopital (hard to poor visibility Poorly decorated small tables. Open
foods, deli with eat or 2 minutes walking locate). No signs on the road Uninviting hardly kitchen and fridges Meal Periods
China Fast Food take away menu. distance from the Access to underground and located in the understand it’s a for self service.
Polynesian Parking on rue l’hopital back roads of rue Chinese rest. Fast Food Concept 11.00am - 10:30pm
l’hopital.
Independent causal mid R de Lausanne 81 Being on the pedestrian Although on the Exterior is very poor;
Restaurant Chinois Fu -Lin priced chinese restaurant 1700 Fribourg road of Lausanne it has pedestrian road its it has a big menu in 80 seats Meal Periods
with table service a la 3 minutes walking access to parking on rue hidden next to the front but poorly interior in dark
carte menu, serves lunch distance form the de l’hopital plaza and people tend attended terrace. wood has a fish 11.00am - 12:30pm
and dinner Polynesian to miss it. tank to relax
R de Lausanne 91 Being on the pedestrian Very visible. Its the Interior is modern
Independant formal 1700 Fribourg road of Lausanne it has biggest building on Exterior is big welcoming and Meal Periods
Restaurant, Lounge Bar 2 minutes walking access to parking on rue the road has big however terrace in Professional. It
and Club offering 3 meals distance form the de l’hopital terrace and has 4 front again is un aims to impress and 10:00am - 12.00pm
Plazza / Lounge a day. Polynesian and has good visibility functions attended and un attract serious
attractive clients.
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3.2.2. Analysis of Competitions (Dining Attributes)

Price Range Beverage Service Special
Property Name Menu (CHF) Service Style Atmosphere Characteristics
Lunch, Dinner & Take Starter: The bar will have the The service style is 120 Seats - Restaurant
out: function of a customer to be Informal table 30 Seats - Bar The restaurant provides
(Main Courses) (one person) 6 - 13 waiting area, lounge bar service, were Restaurant: an open Kitchen and
Polynesian Chicken, (For Two) 12 - 16 and will also be a customers will be 38 tables Both the lounge does take away orders on
Pattaya Duck, Dinner: 14 - 35 beverage service station served. bar and the dining room will command for lunch and
Lounge Bar: Dessert: 5 - 12 for the restaurant itself Tables will be set have fire exits. dinner. The Bar is
Alcoholic/ Non - Bar: 3.4 - 60 with disposable Polynesian Theme designed to look like a
alcoholic cocktails and mats all in the boat.
light snacks will be Polynesian theme
served.
Starter: The service style is Restaurant:
Lunch, Dinner and Take The bar acts as a casual table service. Restaurant has a big
China Town Out: (one person) 3.5 -6.5 beverage service station Customers are 40 Seats Chinese painting on its
Wanton Soup Dinner: 10.5-18.5 for the restaurant. served and tables Narrow entrance and wall at the back giving
Rice duck with Dessert: 4.5-10 Offers alcoholic are set on rectangular seating area in character and has a salad
Vegetables Bev: 4.5 – 50 beverages disposable mats. the back. Has no particular bar.
feel.
Lunch / Dinner & Take Starter : Has no bar however 15 seats
out : (one person) 4 - 5 serves drinks both Casual fast food 5 tables No special
China Fast Food Hot and Sour Soup Dinner : 9 -14 alcoholic and non service. Food rectangular restaurant has no characteristics apart
Sweet and Sour Dessert : 4 -7 (beers) available in served over the particular feel poorly from cheap prices
Chicken Drinks : 2 - 60 fridges. counter decorated
Specials : 10.00
Lunch / Dinner & Take Starter : The bar acts as a service The service style is 80 seats
Restaurant Chinois Fu – Out (one person) 6 - 8 station and as a sur informal table No special
Lin Spring Rolls Dinner : 15- 25 place bar serving service dressed in Rectangular restaurant has a Characteristics
Orange Duck Dessert : 7 - 10 patrons who only want white linen and moderate feel of a zen
Drinks : 8 - 80 to sit at the bar. china. Moderate chinese restaurant.
Specials : chinese design Moderately decorated
Lunch & Dinner Starter : The service style is A tremendously flexible
Ceasar Salad (one person) The bar has a function formal table service Deep rectangular space with environment that can be
Beef Steak Dinner : 18-35 of a restaurant service dressed with linen a large kitchen and a adapted to the daily
Chocolate cake Dessert : 8- 12 station as well as and china, all in modern ergonomically function of the plaza.
Plaza / Lounge
Lounge Bar Drinks : 6 -90 service to the Lounge line with the design to separate the three Lounge bar turns into
Sandwich menu Specials : 15.00 bar modern lounge profit centres as well as club in the evening.
concept. flexible to be
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George Liveras
Indirect Competitors:
Name Of Location Concept & Product & Price &

Property Reason for Service Opening Times
competitor
Cuba Bar Café The Cuba bar is the Independent Cuban
Rue de Romont 1 only theme bar in Theme bar & cafe, Beer:
1700Fribourg/Fr Fribourg. In this sense offering alcoholic 3.90
it is regarded an and Non alcoholic Coffee
Opposite the indirect competitor. It beverages as well as 2.50
Polynesian also captures the Latin serving Coffees and Cuba Bar Café
speaking student other hot beverages. 7:00 - 23:30
population of the Also serves light
university. snacks.
T.M. Café Rue de Romont T.M. café and wine bar Independent Café / Beer:
29-31 captures the beverage Wine Bar, offering 5CHF
Postal Box 598 world of Fribourg in a alcoholic and non Coffee:
1701 Fribourg/Fr trendy modern alcoholic beverages 4CHF
atmosphere. Presently as well as serving
2 minute walking it attracts the highest hot beverages. T.M T.M. Café
distance from the percent of university also sells light 7:00- 24:00
Polynesian students. snacks such as T.M. Bar
Tacos. 16:00-24:00
McDonalds Rue de Romont 15, Fast Food restaurant Franchise Fast Food
1700 Fribourg/Fr Concept provides restaurant serves a Big Mac Menu
hamburgers at cheap range of burgers 12.00CHF
1 minute walking prices. Targets the salads and deserts
distance from the youth of Fribourg. and cheap prices. McDonalds
Polynesian 9.00-23:00
Indirect competitors in our Primary market area were selected to be any
establishments with a unique concept that threatens the Polynesian by capturing the
same market segment. In this case the market segment is University students. These
competitors were also categorised as indirect as they are mostly bars and cafes, very
different to the Polynesian.
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George Liveras
3.3. Conclusion Evaluate and Synthesise your findings
By observing the competition, The Polynesian seems to offer a concept unique
to its own, however Substitute services are found to be plentiful. What will give the
Polynesian a competitive advantage will be the extent to which the Theme will be
incorporated in the establishment transforming a night out, to a unique dining
experience. Ambience and atmosphere will therefore be used to differentiate the
Polynesian together with a healthier menu and value for money. Using this strategy the
restaurant will use its unique concept and product to stand out from both direct and
indirect competitors.
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George Liveras
IV. Demand Analysis
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George Liveras
4. Demand Analysis
In the case of the Polynesian the author aims to determine the market demand for the
restaurant by answering the following questions:
1. What type of traffic flow and dining demand could be captured in the target area?
2. What do local demographics and lifestyle characteristics suggest about market
demand?
As part of the Demand Analysis Primary research methods the researcher conducted
a pilot study and issued a questionnaire (See Appendix 8: Questionnaire) as to
determine the overall view customers have for the concept as well as to determine
measurable estimates according to feedback concerning traffic to be expected at the
Polynesian.
4.1. Definition of Market Segments

In order to segment the target groups of the proposed concept, the author will
use demographics to determine the site potential on a micro and macro perspective
Table 1: Demographic and Consumer Expenditure Potential

Household Monthly salaries in Fribourg as in the rest of Switzerland range from as low as 3000 CHF and soar to a
maximum of 8000 and above. On average the majority of Swiss citizens, (26.8%) receive an income between 4000
Income to 5000 CHF a month. From this salary, which adds up to 58,500 CHF a year, 9.4 % (Brachinger, 2003) is allocated
on average to restaurants and hotels. This means for a person receiving a monthly salary of 4,500 CHF, 423 CHF
per month will be allocated for dining out.
Age Fribourg’s dominant age demographic ranges between the ages of 20 to 64 + (Fribourg statistics, 2003).
Domestically the average age for Switzerland ranges from 35 to 40. This is due to the fact that Switzerland is faced
with aging population as a result of a longer life expectancy and fewer births. Adults between the ages of 35 to 54
have higher incomes resulting in more spending. Adults however in this range are also in their prime years for
raising children and thus tend to spend less on dining out. (50.14%) of the people of the dominant age 20-64 are
single and therefore have more disposable income. A further 15% refers to people from 65 and over which is still a
considerable amount of a market that we can focus on.
Household In the canton of Fribourg the average family size was found to be 2.5 (Swiss Federal statistics, 2000). Whilst
(50.4%) of the commune of Fribourg was found to be single, only (38.2%) of the residence of Fribourg are married.
Size According to Ryan, (2003) one person households generate the highest per-capita spending on food away from
home.
Occupation 62% of the communal population of Fribourg lies in the tertiary, i.e. service sector (Statistics Fribourg, 2003).
The three most common service jobs within this sector are administration, intermediary professionals and thirdly
restaurateurs and hoteliers. The service sector includes positions from low level to high level management. Persons
positioned in managerial and professional occupations spend the most on food away from home (Ryan 2003)
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George Liveras
Based on Table 1: (Demographic and Consumer Expenditure Potential), the author
identifies Four major segments which dominate the market of Fribourg. Each group had
different needs and wants as well as behaviour and lifestyle practices which are considered in
the operational aspect and strategy of the Polynesian. Target Markets include: Students
(Yuppies), Shop clerks, Businessmen, as well as private households (Dinks).
4.2. Demand Estimates
Students:
According to (www.bfs.admin.ch) the canton of Fribourg has approximately
19,000 students from the first to last stage of education. Assuming that Fribourg is the
capital of the Canton, and that the university of Fribourg is located next to the
Polynesian, it is estimated that 7,600 (40%) of students are based in Fribourg. From this
group the Polynesian expects to capture 3,040 (40%) Since the theme of the restaurant
is an original concept which is designed to attract a younger clientele.
According to the average check of both competition and feed back taken from
the questionnaires it was found, that on a general average, the average check for a
concept such as the Polynesian, should be approx 40 CHF. Respondents to the
questionnaire claimed that on average they spend 500 to 1000 francs on food away
from home each month. This accumulates to 9000 CHF, per person per year.
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George Liveras
Although students were initially expected to be price sensitive, due to their
dependant nature it was found as per feedback from the questionnaire, that they eat
away from home frequently (See Figure 11: Frequency of eating away from home).
According to the Questionnaire issued, customers were prepared to travel a maximum
of 30 minutes to eat at the Polynesian (See Figure 12: Maximal Length of time to eat
away from home). Being that the most frequent means of transportation is walking
according to this survey, this gives the Polynesian a demand market of 500m from and
around the site. (See Figure 13 below)
Figure 10: Sphere of Market Influence
(Source: www.map.ch)
Figure 11: Frequency of eating out
Figure 12: Maximum time customers are willing to travel to eat away from home
6. Frequeny of eating away from home 15. M aximal le ngth of time customers are
willing to trave l to eat away from home .
Percentage of Total
60% 55%
33%
Respondants
35%
50%
30% 25%
25%
40%
20% 30%
15% 13% 13%
10% 30%
10% 5%
5% 3%
20% 15%
0%
Never Once a Twice a Once a Twice a Three More 10%
month month week week times a than 0%
week three 0%
times a 15 Minutes 30 Minutes 45 Minutes More than 45
week Minutes
Fre que ncy

(Source: Student Questionnaires, 2005)
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George Liveras
As regards student’s lifestyle and behavioural characteristics, students have
been found due to their young age and active lifestyles (Generation Y), to be
experimental and heavily influenced by foreign elements such as fashion, trends, as
well as prices. Although this can be taken positively due to their young age, it is
criticised that the shelf life as concerns this market segment is unpredictable.
In response to the questionnaires, although respondents were unaware of
Polynesian cuisine they expressed a keen desire of trying it out. Taking into account the
lifestyle affiliated with both students during their busy work schedule it is projected as
being supported by the questionnaire, (See Figure: 14) that the peak days for the
Polynesian will be on the weekend, especially on Saturdays.
Figure 13: Days which people eat out the most

Figure 14: Estimated Average Check for the Polynesian
21. Average check paid at casual restaurants in

7. Days which people eat out the most
Fribourg
Days which people eat out the most
50 CHF 15%
Sunday 13%
45 CHF 25%
Price Range
Saturday 35%
40 CHF 35%
Friday 25%
Thursday 10% 35 CHF 20%
Wednesday 15%
30 CHF 5%
Tuesday 0%
0% 10% 20% 30% 40%
Monday 3%
Percentage of Respondants
0% 10% 20% 30% 40%
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George Liveras
Shop Clerks:
Having already stated and confirmed by use of the questionnaire, that the site
area is found in a commercial area, and the demographic ration of men to women being
approximately 50:50, it is to the researchers opinion that this segments shows potential
as to lunch time and take away sales during the lunch break 12 to 1:30 p.m. Although
primarily respondents answered that they eat out mostly at dinner, Lunch break showed
a 35% promise (See Figure: 16). Shop Clerks could be categorised by the majority
being recent graduates with a part time job. This segment is generally single, has a high
disposable income as they are living alone however are pressed for time. It is projected
therefore that this segment will take advantage of the take away service, as a result
having a lower average check than the student segment, who eat in however would tend
to be more frequent customers and usually order during the week rather than the
weekend.
Figure 15: Meal Periods Customers eat out the most
8. Meal Periods Customers eat out the most
Breakfast
0%
Lunch
35%
Dinner
65%
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George Liveras
Businessmen:
Located to commercial as well as financial centers the Polynesian hopes to
attract neighbouring business companies as well as foreign investors in hopes of
encouraging company lunches and dinners. According to (Ryan 2003), persons
positioned in managerial and professional occupations are considered to be the most
loyal segment as well as the highest spenders in relation to food eaten away from home.
Due to the fact that business lunches are usually paid by the company it will be
reasonable to assume that the Average check for Business clientele be higher than that
of students.
According to the Questionnaire, as well as personal observation, Businessmen
eat out mostly during the week, rather than the weekend and eat mostly at lunch time or
have early dinners.
Private Households:
Private households of two working parties, i.e. D.I.N.K.S. depending on their
age range have different spending habits as well as a different taste in the restaurants
they eat. The addition of children usually influences the couple’s choice. The
Polynesian aims at attracting this segment with its healthy menu and unique concept.
This segment usually is price sensitive and could also contribute to take away sales as
they have no time to cook.
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George Liveras
Conclusion:
In conclusion, according to demographic, behavioural and lifestyle
characteristics, as well as feedback collected from the questionnaire, the above
segments have shown to form enough demand to justify the sustainability of the
Polynesian in relation to its competition as well as its potential market share. According
to the questionnaire all groups outlined that the most important factor as regards their
choice in restaurants as being the Food and serviced quality ( See Figure 17:
Restaurant Factors influencing choice of dining venue ) where as although 75%
consider healthy eating important still consider that the food taste is their first priority.
Figure 16: Restaurant Factors influencing the dining venue
9. Restaurant Factors by Importance whe n

choosing a restaurant
Parking 17%
Popularity of the Restaurant 19%
Food and Service Quality 25%
Location 20%
Price 20%
0% 5% 10% 15% 20% 25% 30%
Restaurant Factors by Im portance when choosing a restaurant
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George Liveras
V. Recommended Facilities and Services
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George Liveras
5. Recommended Facilities and Services
5.1. Defining the Concept

Table 2: Defining the Concept
Restaurant Size : 20m x20m = 400m2
Operating Hours / Days of operation Monday to Friday (Closed on Tuesday)
Meal Periods : 11:30a.m. – 2p.m. / 6p.m. – 11p.m.
Lounge Bar Periods: 11:30a.m. – 11:30p.m.
Operating Hours / Days of operation Saturday & Sunday
Meal Periods : 11:30a.m. – 2p.m. / 6p.m. – 11p.m.
Lounge Bar Periods: 11:30a.m. – 11:30p.m
Location: Rue de Romont 2, 1700 Fribourg
Atmosphere: The restaurant will hold a formal feel to it however; will be
evenly blended with the Polynesian theme. The lights will be
dim as to bring down tension and bring customers out, to the
world of the Polynesian. The whole atmosphere aims to attract
the 5 senses, Sight, Touch, Hearing, Taste and Odor.
Restaurant / Take Away Menu: Menu Type Product Price
description
Pricing: Starters Chicken Spring 8.71 CHF
Rolls
Menu pricing for both the restaurant Soups Corn and Crab 7.50 CHF
and Bar menu was benchmarked Chowder
according to the two direct competitors Vegetable & Smoked Duck 8.50CHF
in the area: Fun Li and China Town. In Side Dishes Salad
addition the main signature dishes were
priced taking into account a 33.4% Main Course Pacific 24.55 CHF
Food cost. Polynesian Sea
Bass
Desserts Banana Boat 8.50 CHF

Rangoon
Bar Menu: Coffee/ Tea Cappuccino 3.50 CHF

Alcoholic Pina Colada 11.50 CHF
Cocktails
Non-Alcoholic Summertime 8.50 CHF
Cocktails Barbarian
Wines Red / White / Rose 14.50 -. 19.50
CHF
Sports Drinks Coca – Cola (5.dl) 4.00 CHF
Spirits Whiskey J&B 8.00 CHF per glass
Beers Heineken 4.50 CHF
Light Snacks Coconut 7.50 CHF
Shrimp
Service Style :
Lunch & Dinner Service : Table Service, American, Family
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George Liveras
5.2. Designing for Profits

Figure 17:Functional Floor Plan of the Polynesian
Back of the House
Front of the House
1. Freezer
2. Storeroom
3. Back Kitchen
4. Receiving office
5. Staff Toilets
6. Changing Rooms (Men)
7. Changing Rooms
(Women)
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George Liveras
Functional Relationships
Table 3: Functional Relationships
Front of the House:
Customer Service Area A customer service area for the purpose of the restaurant will be divided
in two sections: 1 The guest waiting area, (Since there is a lounge bar in
“The Polynesian”, walk in guests will be seated in the lounge bar while
they wait for their table) 2. The reservation and cashier desk.
Dining The seating capacity for the dining area is for 120 covers per sitting.
(Profit centre 1) This will consist of a plethora of different tables varying in size however
flexible to change according to reservations. In total the restaurant will
provide 32 tables. The aforementioned shows the importance given to
safety and security regulations in case of emergency. Additionally clear
passageways will lead customers to fire exit doors.
Lounge Bar The Lounge bar will be located at the front of the restaurant and an
(Profit Centre 2) additional ramp placed at the front entrance of the restaurant will
provide easy access for customers with disabilities. The bar will have the
function of a customer waiting area, lounge bar and will also be a
beverage service station for the restaurant itself. The bar will match the
Polynesian theme and will primarily serve cocktails and provide a light
snack menu. Concerning take - out orders, the Lounge bar will act as a
waiting station for customers waiting for their food.
Take out Function The head waiter will handle the taking of take-out orders from
(Profit Center 3) customers, as well as ushering them to the lounge bar while they wait for
their food.
Open Kitchen The open Kitchen will be responsible to provide food for both the
restaurant, take – out, as well as prepare a light snack for the lounge bar.
The kitchen as well as the restaurant will be equipped with fire
extinguishers, blankets and a first aid box.
Public Restrooms Based on the Disabilities Discrimination Act 1995 (DDA), The
establishment provides restrooms for disabled people. In Addition
corridors and passageways have been adjusted to accommodate this
need.
Back Of the House:

Back of the House – General The back of the house covers 1 / 3 of the total area of the establishment.
The back of the house includes, The back Kitchen area, as opposed to
the open kitchen in the front of the house, the storage rooms, staff area
and the back office.
Back Kitchen The back kitchen in support of the open kitchen will be also designed
ergonomically to allow easy access to waiters. The stewarding will be
located near the restaurant to kitchen entrance. A sound proof wall will
also be used to minimize the noise of the dishwashing machine.
Storage Rooms A variety of storage rooms near to the kitchen connecting to the
receiving area will be in the back of the house providing easy access for
suppliers. These storage rooms include, the dry goods store room, the
Freezers and refrigerators and the wine and spirit cellars. In addition a
garbage area will be set up at the back of the restaurant for sanitation and
recycling purposes as well. All storage rooms will be locked, checked
and recorder daily and will function with a key-card system.
Staff Area A staff entrance will be at the back of the house; this will also act as a
fire exit. In this area there will be lockers, showers and restrooms for the
staff to change into their uniforms.
Back Office An office for the restaurant manager is also scheduled, for the handling
of goods to be received and administrative paperwork.
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George Liveras
Polynesian Establishment Functional Organizational Chart:
Figure 18:Polynesian Organizational Chart
(Source: George Liveras, 2005)
The restaurant being small in size follows a centralized, organizational
structure, whereby the two food and beverage sections, Restaurant and Kitchen, are
divided and supervised by the head waiter and executive chef accordingly. The two
section supervisors supervise over the lower levels, delegating tasks. The supervisors
follow directions from the Operations manager who acts as restaurant manager. Six
waiters were decided as sufficient number as, respecting the 5 day a week law, four
waiters are to be present in the restaurant while one, works the bar with the supervisor.
Restaurant staffs are expected to be cross functional in their respective sections. It is
expected that each waiter will take care of aprox, 7 tables.
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George Liveras
Space Allocation:
Figure 19:Volume in (m2) by Function
Table 1: Function by Area and Seating Capacity
Seating Capacity per

Function Area
one sitting
Restaurant 201.7 m2 120 covers
Lounge Bar 76.2 m2 50 covers
Back Kitchen 30.99 m2 N/A
Toilets 12.38 m2 N/A
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George Liveras
Diagram Summary:
Dining Room Seating:

As the Food and Beverage is the primary revenue center towards the total sales
of the establishment, emphasis was given in designing an area spacious enough to
accommodate 120 covers per sitting flexible to reservations. 120 covers were chosen,
as a suitable guest count, as the original concept of the restaurant projects to capture the
high demand of over expecting individual clientele and organizations. The restaurant
will have 30 tables allocated accordingly:
Table 2: Restaurant Dining Room Tables by Type

Tables for Two 10 X
Tables for Four 16 X
Table for Eight 4X
Building materials:
Figure 20: of Materials to be used per Revenue Centre

Restaurant The restaurant, set to capture a Polynesian theme will carry an
island atmosphere, chairs and tables will be made of Bamboo,
whilst the tables will be decorated with seashell ashtrays. The
floor is set to be a white tile floor, as to allow easy, fast and
hygienic cleaning. In all, the restaurant will hold an elegant and
modern impression.
Lounge Bar
The floor will be made from a dark wood and filled with beige
sofas. Eating off white small tables. The Bar itself will resemble
a boat giving access to serve both the restaurant and Lounge.
5.3. Conclusion
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George Liveras
The design of both concept and facilities are orchestrated in providing an
ergonomically multifunctional working environment, which aims at increasing speed of
service as well as customer satisfaction. In accordance to the Demand survey 70 % of
potential clientele expressed the importance of speed of service as well as value for
money. Given the increasingly high number of single’s customers, the lounge bar will
offer the perfect opportunity to socialize at the late hours of the evening.
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George Liveras
VI. Estimates of Operating Results
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George Liveras
6. Estimated Operating Results
6.1. Assumptions
Table 3: Hours of Operation: Restaurant
Service & Management Staff Operating Hours
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY
11:30a.m. - 11:30a.m. - 11:30a.m. - 11:30a.m. - 11:30a.m. - 11:30a.m. -
2.p.m Closed 2.p.m 2.p.m 2.p.m 2.p.m 2.p.m
Operating 6:30p.m. - 6:30p.m. - 6:30p.m. - 6:30p.m. - 6:30p.m. - 6:30p.m. -
Hours 11.p.m 11.p.m 11.p.m 11.p.m 11.p.m 11.p.m
Head Waiter X X X X X
Cashier X X X X X
Bar
Supervisor X X X x X
Waiter 1 X X X X X
Waiter 2 X X X X X
Waiter 3 X X X X X
Waiter 4 X X X X X
Waiter 5 X X X X X
Waiter 6 X X X X X
The Polynesian has a total of 18 staff, allocated accordingly in the two sections restaurant and kitchen. As aforementioned there
are two service periods lunch and dinner. Staffs for both sections therefore need to be allocated within these two time periods,
respecting the five working days a week. The Polynesian is projected to be open 288 days a year. Staff working the lunch shift
will work a split shift and return at 6pm and work till 10pm, respecting the 8 hour working schedule. No low season is projected
within the first year.
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George Liveras
Table 4: Hours of Operation: Kitchen

Kitchen Staff Operating Hours
MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY SUNDAY
11:30a.m. - 11:30a.m. - 11:30a.m. - 11:30a.m. - 11:30a.m. - 11:30a.m. -
2.p.m Closed 2.p.m 2.p.m 2.p.m 2.p.m 2.p.m
Operating 6:30p.m. - 6:30p.m. - 6:30p.m. - 6:30p.m. - 6:30p.m. - 6:30p.m. -
Hours 11.p.m 11.p.m 11.p.m 11.p.m 11.p.m 11.p.m
1 Executive
Chef X X X X X
Cook A X X X X X
Cook A X X X X X
Cook B X X X X X
Cook B X X X X X
Commi X X X X X
Dishwasher X X X X X
Dishwasher X X X X X
The Kitchen follows the same logic however as it also provides its services to the Lounge bar as well as taking charge of
the take out function it requires a heavy density of personnel. Even now it seems the Polynesian may wish to hire part time
kitchen personnel for the busy days, as kitchen staff may find it difficult to cope. Peak days are expected to be Monday, Friday
and Saturday, (observation, 2005).
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George Liveras
6.1. Assumptions for Year 1, Most Likely Scenario
Estimating Revenue
Average check per person:
The average check is calculated by computing the weighted average of three
different methods: Cost-based pricing, Market-based pricing and Competitor-based
pricing.These pricing methods are weighed by being divided accordingly into 20% of
cost based pricing, 60% of market based pricing, and 20% of competitors based pricing
for lunch and dinner. These weights were decidedly so, due to the high density of passer
bys in the area due to the shopping and university campus districts, enforced by a high
diversity of competitors similar to our own. These three methods will be used therefore
in accordance to the average check of all Asian restaurants in Switzerland. By using all
three methods, (Appendix 9: Calculation of Average Check) the weighted average
check was found to be 33 CHF for both food and beverage.
Seat Turn Over:
Given that the restaurant sets to target the lunch break rush as well as take
advantage of the shopping crowd in the early afternoon. It is assumed that the
restaurant being new will capture quite a high seat turnover. The highest guest seat turn
over is therefore assumed to be during the lunch period 11:30 to 1:30 p.m. The
Polynesian will retain and improve its seat turn over by concentrating on guest
satisfaction, by keeping up the standards and guest feed back and by various marketing
campaigns aiming to bring forth public awareness.
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George Liveras
Lunch: 180/ 120 = 1.5

Dinner: 168 / 120= 1.4
Lounge Bar, lunch period: 80/ 50 = 1.6
Lounge Bar, dinner period: 90 /50 = 1.8
Average Seat Turnover: 1.575
Estimating Expenses
Cost of Sales:
Costs of Sales refer to the cost of raw material needed in order to run the
restaurant. According to industry averages, (Delloite & Touche, 2000) reports, the Total
cost of sales is 32.6%.
Direct Payroll:
Direct Payroll refers to the salaries and benefits paid towards the employees and
management of the Polynesian. Based on 2005 statistics of incomes in Switzerland it is
assumed that The Polynesian will pay its staff a salary between 3,000 to 4,000 Swiss
Francs a month, over a physical year of 42 weeks. According to (Delloite & Touche,
2000) the industry average for salaries and wages is 27.4 % of total sales. Hourly rate
was determined according to Gastro Suisse, “Info Service”, (2005).
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George Liveras
Table 5: Direct Payroll
No. of Total Weekly Hourly Rate

Staff Hours (CHF) Total Yearly Payroll Cost (CHF)
Executive Chef 1 42 24.73 49,856
Cook A 2 42 21.54 86,849
Cook B 2 42 23.54 94,913
Commi 1 42 19.56 39,433
Dishwashers 2 42 19.56 78,866
Operations Manager 1 42 24.73 49,856
Head Waiter/ ess 1 42 23.52 47,416
Cashier 1 42 23.52 47,416
Bar Supervisor 1 42 23.52 47,416
Waiter 6 42 16.44 198,858
Total 18 740,880
(Source: Gastro Suisse, 2005)

Employee Benefits:
According to (Delloite & Touche, 2000)12.45 % of employee benefits are taken from
Payroll and added to salaries. This will constitute to 4.8 % from total sales. This money
is generated in order to incompencate all that concerns social security insurances.
(www.ch.ch).
Direct Operating Expenses:

Direct operating expenses for the establishment include such items as paper
supplies, cleaning supplies, linens, tableware, kitchen utensils and related
operating costs. According to (Delloite & Touche, 2000) Direct Operating expenses
constitute to 5.1 % of Total Sales.
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George Liveras
Music and Entertainment:
Although not a common practice on special occasions the Polynesian will host
conceptual nights with live music to enhance the theme and atmosphere of the
restaurant. Normal evenings however will be displayed by cd compilation recordings of
music for the Lounge and Restaurant accordingly with an objective of relaxing and
refreshing all who hear it. In this case there are no vital expenses. Industry average,
according to (Delloite & Touche, 2000), is 0.1 % of total sales.
Marketing:
Although generally, restaurant marketing expenses constitute to only 2.4 % of total
sales, the Polynesian, being a new and unknown venue, bearing a foreign concept will
readapt its strategy as to better familiarize the surrounding neighbors of its presence. In
the first two years the Polynesian will have a Marketing expense constituting to 4.5%
of Total Sales which will be decreased to the industry average on the third year. In this
way it is thought to capture the immediate surrounding target markets in a more
aggressive manner.
Utilities:
According to (Delloite & Touche, 2000), a restaurant pays 2.0 % of its Total Sales as
utilities expenses. The most important being that of electricity.
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George Liveras
Administrative and General:
As mentioned by (Delloite & Touche, 2000) expenses directed to A&G will constitute
to 5.4% of the total revenue in the Polynesian. This is due to the centralized
organizational structure of the business.
Repairs and maintenance:

According to Wisconsin Restaurant Operations ratios report 2000, repairs and
maintenance has surged over the years constituting to a percentage of total sales of up
to 1.6 %.
Rent or Occupation Costs:

The site to be rented, in Fribourg were the Polynesian is set measures 400m2.
According to the Fribourg Development Agency, Rental values for ready to use
industrial premises cost 165 CHF per square meter/per year. It is therefore expected that
the site in question would be rented out to us for 66,000 CHF a year (165 X 400 m2).
That according to industry averages would constitute to 5.3 % of total sales. The site
will need reconstruction however to fit the needs of the project concept.
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6.2. 5-Year Summarized Income Statement with Analysis and

Interpretation
Table 6: Most Likely Scenario
Year 1 2 3 4 5
2,520,3 2,699,07 2,856,65 2,885,21
Total Revenue 29 2 2 9 2,914,071
Cost of Sales 834,892 894,103 946,303 955,766 965,324
1,685,43 1,804,96 1,910,34 1,929,45
Gross Profit 7 9 9 3 1,948,747
Controllable 1,355,84 1,399,45 1,412,19 1,418,90
Expenses 0 4 3 6 1,425,687
Income Before Rent 329,597 405,516 498,156 510,546 523,060
Occupation Cost 66,000 66,000 66,000 66,000 66,000
Income after Rent 263,597 339,516 432,156 444,546 457,060
The summarized income statement of the Polynesian shows positive results
from the very first year, this is due to a relatively high projected seat turn over, derived
from the busy nature of the location. The competitive nature of rue de Romont not only
helps the Polynesian, but will give existing clientele in the area something new to try
out. Offering relatively cheap prices, an average check of 33 francs, the Polynesian
hopes to appeal to price sensitive customers looking for value for money. The
Polynesian is set to break even in the second year taking into consideration
reconstruction costs, not included in this study. The stabilized year is set to be the
middle of year 2. The Growth Rate is as per Inflation rate, 1.01% a year. This inflation
rate is to be applied to the average check.
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George Liveras
6.3. Sensitivity Analysis with Contingency Plan

Table 7: Pessimistic Scenario
Year 1 2 3 4 5
Total Revenue 1,728,014 1,809,934 1,893,321 1,978,194 2,064,575
Cost of Sales 544,565 570,382 596,660 623,407 650,629
Gross Profit 1,183,448 1,239,553 1,296,661 1,354,787 1,413,946
Controllable
Expenses 1,162,515 1,182,504 1,163,091 1,182,017 1,201,280
Income Before Rent 20,933 57,049 133,570 172,769 212,666
Occupation Cost 66,000 66,000 66,000 66,000 66,000
Income after Rent -45,067 -8,951 67,570 106,769 146,666
In the pessimistic scenario, break even is not reached until year 3. This is
brought about by two factors a high cost of sales and high controllable expenses. By
minimizing staff payroll, employee benefits would also be decreased giving us a
healthier income after rent. Marketing expenses and promotional campaigns could also
be utilized to bring up the seat turn over and the Average Check, increasing Total
Revenue. Like with the most likely scenario, an inflation rate was implemented onto
the average check following years 2 to 5. Year one average check was downsized by
2%.
Table 8: Optimistic Scenario

Year 1 2 3 4 5
Total Revenue 3,264,426 3,529,804 3,623,868 3,956,872 4,396,085
Cost of Sales 1,081,384 1,169,294 1,200,454 1,310,765 1,456,260
Gross Profit 2,183,042 2,360,510 2,423,414 2,646,106 2,939,824
Controllable Expenses 1,537,400 1,602,152 1,549,002 1,623,262 1,721,207
Income Before Rent 645,642 758,358 874,412 1,022,844 1,218,617
Occupation Cost 66,000 66,000 66,000 66,000 66,000
Income after Rent 579,642 692,358 808,412 956,844 1,152,617
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George Liveras
Optimistic Scenario:
In this scenario, the Polynesian will break even in the first year. This scenario is a direct
result of a positive adaptation between the city of Fribourg and the unique nature of the
Polynesian.
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Conclusion:
As a result of the study, it was found using various tools as well as analyzing
both the competition and overall demand for the product, that the concept of the
Polynesian is feasible in the projected Site due to the following reasons:
• It is a concept based on three upcoming trends. These are: The trend of ethnic
restaurants, Healthy eating as well as Theme restaurants.
• It has a centralized location and is close to the demand generators
• It has a unique concept with minimal competition.
• The Location of Fribourg is cheaper compared to other cities
• The cultural diversity and young aging demographics allow for new concepts to
enter the market.
• The demand for diversity, brought about by a large student population is an
asset to the “Polynesian”
Criticism to the project, are the following points:
• The upcoming potential of the commune of Fribourg is attracting more and
more competition
• Fast Food Asian outlets, offering a substitute product can attack the Polynesian
by lowering their prices.
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References:
• BRACHINGER, H. W, Seminar of Statistics, University of Fribourg, (CH),
(2003), http://www.unifr.ch/stat/en-home.php
• CAREE, E., CAREE, D., “Asian Ethnic …Now for Everyone”, (USA), (2003),
http://www.preparedfoods.com/CDA/ArticleInformation/features/BNP__F
eatures__Item/0,1231,113739,00.html
• COOPER, R.D and SCHINDLER, S.P, (2003), “Business Research Methods”,
(Singapore), Irwin / Mc Graw - Hill
• Delloite & Touche, National Restaurant Association, “Restaurant Industry
Operations Report”, (EU), (2000)
• Fribourg Development Agency, “Location Brochure”,(CH), (2005),
http://www.promfr.ch/en/upload/tax-broshure_0501_050121135822.pdf
• GARDNER, K., Beat the clock: “finding time for lunch”, (USA) National
Restaurant Association,(1996),
http://www.restaurant.org/rusa/magarticle.cfm?articleid=217
• Gastro Suisse, “Info Service”, (CH),(2005),
http://www.gastrosuisse.ch/doc/doc_download.cfm?7669CBA2E7FB2828DF97
53E3409EC20E
• Hensley, S., “Generations X and Y Drive Surge in Ethnic
Cuisine”,(USA),(2000),
http://www.restaurant.org/pressroom/pressrelease.cfm?ID=125
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George Liveras
• HELPERIN, Marc, “Young at Heart, Wise in Dining”, Center for Culinary
Development, (2002), http://www.ccdsf.com/trendcornerjune.html
• KOTLER, P., BOWEN, J. And MAKENS, J.(2003), Demographic
Segmentation, pp.267 - 272, “Marketing For Hospitality and Tourism”, third
edition, (UK)
• LONGBOTTOM, P., “Taste Sells - Nutrition Doesn’t”, Hospitality, (UK),
(2001), http://hcima.org.uk
• MICHELOUD & CO, “Swiss Food”,(CH), (2004),
http://www.Switzerland.isyours.com/e/guide/basics/swiss.food.html
• PORTER, M., “Competitive Strategy”, (USA), New York: Free Press, (1980)
• Pittet, M, “Le développement de l'économie fribourgeoise”, (CH), (2005),
http://appl.fr.ch/economie/direction/lignes/npe/economie_fr.pdf
• RANDE, D.R, “Location Criteria”, Northern Arizona University, (USA),
http://jan.ucc.nau.edu/~wlr2/ha442/class/concept/location/
• RYAN Bill, “Restaurant Market Analysis”, University of Wisconsin, (USA),
(2003), http://web1.msue.msu.edu/msue/imp/modtd/33702004.html
• Swiss – Info geographic tool, “Fribourg Center, (2005), (CH),
http://gis.swissinfo.org/
• Statistics Fribourg, “Statistical Service for the Canton of
Fribourg”,(CH),(2000), http://appl.fr.ch/stat/
• Swiss Federal Statistical Office, “Bundesamt fur statistic”, (CH), (2005),
http://www.bfs.admin.ch/bfs/portal/en/index.html/
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• “Swiss Tourism in Figures” (2004), (CH),
http://www.swisstourfed.ch/art/dokumente/vademekum/2004/en/Vade_2004_en
gl.pdf
• Search.ch / Endoxon AG, Teleatlas, “Map:Swityerland”, (CH), (2005),
http://map.search.ch/index.en.html
• Tele Atlas, “Fribourg”, (CH), (2005),
http://www.teleatlas.com/stellent/idcplg?IdcService=SS_GET_PAGE&nodeId=
9187&ssSourceNodeId=9187
• WEINRAUB, Judith, “With less fattening, more varied and flavorful foods
home kitchens aren’t stocked like they used to be”, Washington Post Staff
Writer, (USA), (2005), http://www.foodinstitute.com/ifda/ifdaupdate0429.htm
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Appendices:
Appendix 1: Restaurant Demand Switzerland
(Swiss Tourism in Figures 2004)
Table 9: Polynesian Cuisine

Fish Specialties 10%
Grill Specialties 7%
Vegetarian Cuisine 7%
Other Specialties 5%
Asian Specialties 2%
Health Specialties 1%
Port Span, Greek Turk 1%
specialties
American Mexican Specialties 1%
Total 34.00%
Source: (Switzerland Tourism in Figures, 2004)
Appendix 2: Districts of Fribourg by population density
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( www.cfcis.ch 2001)
Appendix 3: Broad Geographic Description
Broad Geographic Description
Region: Fribourg, Sarine, Fribourg, Switzerland
Size: 251,318 (Canton) / 36,405 (Commune)

Area of Development: Commercial, retail, residential
Population Density: 158, suburban (Canton) / 3,906, Urban (Commune)
Climate: Temperate: Summer: Average 20° C / Winter: Average 2° C
Source: (Federal Statistical Office 2000), (Statistics Fribourg 2003)
Appendix 4: Meal Periods and Location Guidelines
Meal Periods Location Guidelines

The restaurant is set to be located in the communal urban region
Mid- Morning / of Fribourg in the heart of the shopping district, and near to the
University. Being close to these demand generators as well to fast
Afternoon
access points, such as the train station, the primary market can
Business reach the establishment in less then 10 minutes by foot. The area
also offers ample parking facilities plus access by bus.
The lunch period is the time of the highest density of population
Lunch in the area. Full of day time shoppers, students, shop clerks and
businessmen on their lunch break, “The Polynesian” is
(11:30a.m. – 2p.m)
strategically located amidst its competitors to accommodate the
lunch time demand.
Lounge Bar The lounge bar is open all day to accommodate guest demand
(11:30a.m.-11p.m.) during and in between meal periods providing a quick snack.
Dinner The original and unique theme and concept of the Polynesian
(6p.m. – 11p.m) restaurant in union with its ambience and centralised city location
will be factors broadening the market area and attracting
customers.
Located near the Business and shopping district, the restaurant
Take – out service sets to provide a lunch and dinner take out service to
accommodate the need for a fast meal. This service sets to attract
12p.m.-2p.m. /
shop clerks, students and Business men who have no time to sit in
6p.m. – 11p.m. for mainly the lunch but also the dinner meal periods.
Source: Anonymous, (1998)
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Appendix 5: Project Sites Competitive Position
Project Site’s Competitive Position

Accessibility Accessibility / Trains Fribourg lies in the main transport arteries connecting the
French speaking cantons with those of the German. Both main railway lines as well
as the A12 highway run through Fribourg connecting Fribourg to Bern the capital
City up to Zurich. The major Swiss can be reached in less than 2 hours either by
train or road.”
Accessibility / Car On average taking into account Switzerland’s six major cities,
(Basel, Berne, Geneva, Lausanne, St.Gallen and Zurich) Fribourg can be reached in
one hour and twenty minutes by car.
Accessibility / Foot The Project Site can be reached in 10 minutes from the train
station of Fribourg.
The site itself although not accessible by car from rue de Romont is Visible and
Visibility accessible from rue de L’hopital. Infact being at the corner or rue de Romont
pedestrians entering the shopping district through that road would see the restaurant
immediately.
Accessibility To The Site is positioned so as to be in close proximity with all three demand
Market Generators generators, The university, the Shopping District and the Business district of
Fribourg, as well as being in the same location as its competitors. This has an
objective of capturing as much a market share of these markets, as well as attacking
the competition by attracting curious customers...
Compatibility and Even Though the restaurant is a unique concept in Fribourg, it is to be the first
Adaptability themed restaurant in the area. This is an advantage since it will stand out giving the
restaurant a competitive advantage over others pulling curious customers. In this
respect although not in union with its surroundings it has a stand out effect
promising future growth.
There are no immediate plans in the immediate project site area as the project area, is
Site Development in an overly developed and protected zone.
Appendix 6: Porters Five Forces:
Threat of new Since Fribourg can be considered a favourable market location, it will
always attract competitors of any type of restaurant. This does not only apply to
entrants: restaurants but also to in-direct competitors such as, any establishment that targets
the disposable income spent for food. Since “The Polynesian” is a unique concept
and it will be the first to enter the market, it will have a competitive advantage.
Bargaining power of Due to the fact that consumers today are more price – sensitive, in turn
causes them to expect value for money when dining out. This is a key issue that the
buyers: restaurant will try to maintain. This will result however in strong competition for
lower prices. This is because our competition also has to take into account the
bargaining power of buyers.
Threat of substitute Similar ethnic cuisines to the Polynesian region, such as Chinese, sushi or
any other ethnic food is a direct threat. Any cuisine that can substitute our product
products: is regarded as a direct threat.
Bargaining power of Since most of the raw materials will be imported from the Polynesian region
it is likely that we will be held “hostage” by one or two major suppliers. To help the
Suppliers: situation, it is forecasted to search for domestic raw materials, to import products
ourselves or look for a larger base of alternative suppliers. All these factors are to
be taken into consideration during the menu design, on the selection of menu items.
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Appendix 7: S.W.O.T Analysis
Opportunities
Strengths Threats
Weaknesses
Concept Concept
Location
• “The Polynesian” is the first Polynesian restaurant in •• Direct competitors
Polynesian Cuisine have a more
is still centralized
relatively new andcity
not
• The city of Fribourg is close to the capital, Bern,
Fribourg, centre location than proposed location.
well known.
• being only a 20isminute
The restaurant drive.
the first ethnic “themed” restaurant •• Competitors
Misconception have
thatset their own food
Polynesian targetismarket
heavy,
• Large unexplored
in Fribourg. customer base, such as “Students”. already.
sweet and spicy
Atmosphere
• and Decoration
The establishment follows a fusion concept of •
Economic High competition in the area
• Will sell Polynesian
Polynesian themedThis
islands cuisine. novelties to guestsfusion
multicultural •• No barriers
The to entry for
world economy new competitors
is passing from recession to
• Uniqueness of Polynesian theme.
of “Asiatic” cuisines will be more greatly adaptable recovery. This means businessmen and
• Possible live Music
to customers’ on special
tastes because of nights.
variety. individuals are more sensitive to risks and
•
Customer Target
The Marketis a “Themed” restaurant.
Polynesian expenditures.
•
Location Health conscious customers Location
•• Large
The location of Fribourg
executive and foreignis ainvestor
perfect location
market in • City location is expensive
• The site location has access to all means of • Location is very competitive
Fribourg. Atmosphere and Decoration
transportation, and is rich in parking availability. It is
accessible and most importantly it is in the heart of • Most decorative materials need to be imported,
the shopping district. this increases costs.
Services
• The restaurant intends to provide a take out service
for the lunch and dinner.
• The restaurant plans to be open for two meal periods,
Lunch and dinner (Seat-in).
• Also provides the function of a lounge bar.
Menu
• The Polynesian concept permits the use of a
combination of meat, including poultry, beef, duck
and pork that can all be found locally.
• The Polynesian cuisine is considered healthy and
light, appealing to health conscious minded people.
• The choice of spiciness is optional (mild/hot/very
hot).
• Original Polynesian cooking methods that are to be
used are considered healthy.
Workforce
• Supply of high calibre student workforce from
neighbouring hotel schools.
Customer Target Market
• The restaurant’s concept is suitable for all market
segments.
Appendix 8 : Questionnaire
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Appendix 9 : Analysis of Questionnaire (Tables)
Q1.Please indicate your nationality

Nationality Quantity %
Swiss 10 25
French 10 25
German 5 12.5
Other 15 37.5
Total 40 100%
Q2. What is your Occupation?

Occupation Quantity %
Business 14 35
Public Servant 1 2.5
Student 21 52.5
Other 4 10
Total 40 100
Q3. Please indicate your gender

Gender Quantity %
Male 26 65%
Female 14 35%
Total 40 100%
Q4. What is your Age?

Age Quantity %
15-25 23 58%
26-36 9 23%
37-47 8 20%
48-55 0 0%
Above 55 0 0%
Total 40 100
Q5. How much of your monthly disposable

income do you allocate to food away from
home?
Amount Quantity %
Less than 500 10 25%
500 - 1000 15 38%
1000 - 1500 10 25%
1500 - 2000 5 13%
Total 40 100%
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George Liveras
Q6. How often do you eat away from home?

Frequency Quantity %
Never 2 5%
Once a month 1 3%
Twice a month 4 10%
Once a week 5 13%
Twice a week 5 13%
Three times a week 10 25%
More than three times a week 13 33%
Total 40 100%
Q7.What days do you eat out the most?

Week Days Quantity %
Monday 1 3%
Tuesday 0 0%
Wednesday 6 15%
Thursday 4 10%
Friday 10 25%
Saturday 14 35%
Sunday 5 13%
Total 40 100%
Q8. What meal periods do you eat out the most

Meal Periods Quantity %
Breakfast 0 0%
Lunch 14 35%
Dinner -70- 26 65%
Total 40 100%
George Liveras
Q9. On a scale of 1 to 10, 10 being the highest, how

important do you consider the following factors
Average
Factors Quantity %
Price 7.1 20%
Location 6.9 20%
Food and Service Quality 8.7 25%
Popularity of the
Restaurant 6.7 19%
Parking 5.9 17%
Total 35.3 100%
Q10. What types of restaurants do you prefer more?

Restaurant Types Quantity %
Quick Service 4 10%
Casual 22 55%
Fine Dining 14 35%
Total 40 100%
Q.11 Are you satisfied with the choice of restaurants

In Fribourg?
Answer Quantity %
Yes 15 38%
No 25 63%
Total 40 100%
Q.12 Have you ever tried Polynesian Cuisine?

Answer Quantity %
Yes 14 35%
No 26 65%
Total 40 100%
Q14. Would you be interested in a Polynesian Themed

Restaurant?
Answer Quantity %
Yes 38 95%
No 2 5%
Total 40 100%
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Q15. How far would you be willing to travel to eat at

the
Polynesian
Distance Quantity %
15 Minutes 12 30%
30 Minutes 22 55%
45 Minutes 6 15%
More than 45 Minutes 0 0%
Total 40 100%
Q16.What is the most frequent means of

transportation that you use when dining out?
Means Quantity %
Walk 24 60%
Car 2 5%
Taxi 8 20%
Bus 3 8%
Train 3 8%
Total 40 100%
Q17.Would you be interested in the Polynesian if

situated at Rue de Romont, 1, Fribourg?
Answer Quantity %
Yes 36 90%
No 4 10%
Total 40 100%
Q18. Do you consider healthy eating important when

Dining out?
Answer Quantity %
Yes 30 75%
No 4 10%
Don’t Care 6 15%
Total 40 100%
Q19. On a scale of 1 to 10, 10 being the highest, how

important to you is healthy food and how much is
taste?
Answer Average Quantity %
Taste 9.1 54%
Healthy Food 7.6 46%
Total 16.7 100%
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Q20. Are the following prices reasonable to you?

Menu Average 5 = Fully
Prices Quantity satisfied Percentage
Starter 4.1 5 82%

Main
Course 4.4 5 88%
Dessert 4.5 5 90%
Beverage 4.1 5 82%
Q21. The Average Check paid by customers at a casual

restaurant
Answer Quantity %
30 CHF 2 5%
35 CHF 8 20%
40 CHF 14 35%
45 CHF 10 25%
50 CHF 6 15%
Total 40 100%
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Average Food Check Per Person:

Cost Based Pricing: Market Based Pricing Competitor-based pricing Totals
Weights 20% 60% 20% 100%
Industry Avg 24.84.CHF
Restaurant Lunch 8.20/ 33.4% 24.551 Main course only 22.5 Main course only 14 - 35 31.5
Dinner 8.20/ 33.4% 24.551 Starter + Main Course 52.0 Starter + Main Course 23 - 50 36.5
Lounge Bar Lunch 4.50/ 33.4% 13.5 Light Snack 10 -15 12.5 Light Snack 6 - 14 10
Dinner 4.50/ 33.4% 13.5 Light Snack 10 -15 12.5 Light Snack 6 - 14 10
Take Away Lunch 8.20/34.4% 23.837 Main course 18 - 35 26.5 Main Course 31.5
Dinner 8.20/34.4% 23.837 Main course 18 - 35 26.5 Starter + Main Course 36.5
Average Average Food Check : 20.62 Average Food Check : 25.417 Average Food Check : 26.0
20.62 20% 4.124

25.42 60% 15.25
26.0 20% 5.2
Total 100% 24.574
Average Beverage Check Per Person:
Cost Based Pricing: Market Based Pricing Competitor-based pricing Totals
Weights 20% 60% 20% 100%
Restaurant Industry Avg 7.85 CHF
Lunch 3.2O/25.8% 12.4 Beer / Glass of Wine 5.5 Beer / Glass of wine 2.90 - 5.50 4.2
Lounge Bar Dinner 3.2O/25.8% 12.4 Beer / Glass of Wine 5.5 Beer / Glass of wine 2.90 - 5.51 4.2
Lunch 3.2O/25.8% 12.4 Cocktails 12 Cocktails 8 -15 11.5
Take Away Dinner 2.967/25.8% 11.5 Cocktails 12 Cocktails 8 -15 11.5
Lunch 3.2O/25.8% 12.4 Soft Drinks or Beer 4.5 Soft Drinks or Beer 2.5 - 5 3.75
Dinner 2.967/25.8% 11.5 Soft Drinks or Beer 4.5 Soft Drinks or Beer 2.5 - 6 3.75
Average Average Bev. Check : 12.1 Average Bev. Check : 7.3333 Average Bev. Check : 6.5
12.1 20% 2.42

7.333 60% 4.3998
6.5 20% 1.3
Total 100% 8.1198
Total Average Check: 33 CHF
Appendix 11: (Most Likely Scenario)
Year 1 2 3 4 5
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Number of Seats: 170 170 170 170 170

Number of Days 288 288 288 288 288
Average Food Check 24.6 24.8 25.1 25.3 25.6
Average Beverage Check 8.11 8.19 8.27 8.36 8.44
Seat Turnover: 1.575 1.67 1.75 1.75 1.75
77,1 81,7
Total Seats Sold:
12 63 85,680 85,680 85,680
Revenue (Sales) 1 2 3 4 5
Food 1,894,950 75% 2,029,341 75% 2,147,821 75% 2,169,299 75% 2,190,992 75%
Beverage 625,378 25% 669,731 25% 708,832 25% 715,920 25% 723,079 25%
Total Revenue (Sales) 2,520,329 100% 2,699,072 100% 2,856,652 100% 2,885,219 100% 2,914,071 100%
Cost of Sales 1 2 3 4 5
Food 631,018 33.3% 675,771 33.3% 715,224 33.3% 722,377 33.3% 729,600 33.3%
Beverage 203,873 32.6% 218,332 32.6% 231,079 32.6% 233,390 32.6% 235,724 32.6%
Total Cost of Sales 834,892 33% 894,103 33% 946,303 33% 955,766 33% 965,324 33%
Gross Profit on Sales 1,685,437 67% 1,804,969 67% 1,910,349 67% 1,929,453 67% 1,948,747 67%
Controllable Expenses 1 2 3 4 5
Direct Payroll 740,880 27% 740,880 27% 740,880 27% 740,880 27% 740,880 27%
Employee Benefits 120,976 4.8% 129,555 4.8% 137,119 4.8% 138,491 4.8% 139,875 4.8%
Direct Operating Expenses 128,537 5.1% 137,653 5.1% 145,689 5.1% 147,146 5.1% 148,618 5.1%
Music and Entertainment 25,203 0.1% 26,991 0.1% 28,567 0.1% 28,852 0.1% 29,141 0.1%
Marketing & Sales 113,415 4.5% 121,458 4.5% 68,560 2.4% 69,245 2.4% 69,938 2.4%
Administrative and General 136,098 5.4% 145,750 5.4% 154,259 5.4% 155,802 5.4% 157,360 5.4%
Utility 50,407 2.0% 53,981 2.0% 57,133 2.0% 57,704 2.0% 58,281 2.0%
Repairs & Maintenance 40,325 1.6% 43,185 1.6% 45,706 1.6% 46,164 1.6% 46,625 1.6%
Total Contr. Expenses 1,355,840 54% 1,399,454 52% 1,377,913 48% 1,384,284 48% 1,390,718 48%
Income before rent 329,597 13% 405,516 15% 532,436 19% 545,169 19% 558,029 19%
Occupancy Costs 66,000 3% 66,000 2% 66,000 2% 66,000 2% 66,000 2%
Income after Rent 263,597 10% 339,516 13% 466,436 16% 479,169 17% 492,029 17%
Appendix 12: (Pessimistic Scenario)
Year 1 2 3 4 5
Number of Seats: 170 170 170 170 170
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Number of Days 288 288 288 288 288

Average Beverage Check 6.5 6.6 6.6 6.7 6.8
Seat Turnover: 1.35 1.4 1.45 1.5 1.55
66, 68,
Total Seats Sold:
096 544 70,992 73,440 75,888
Food 1,299,183 75% 1,360,774 75% 1,423,467 75% 1,487,277 75% 1,552,222 75%
Beverage 428,831 25% 449,161 25% 469,854 25% 490,917 25% 512,353 25%
Food 433,927 33.4% 454,498 33.4% 475,438 33.4% 496,751 33.4% 518,442 33.4%
Beverage 110,638 25.8% 115,883 25.8% 121,222 25.8% 126,656 25.8% 132,187 25.8%
Total Cost of Sales 544,565 32% 570,382 32% 596,660 32% 623,407 32% 650,629 32%
Direct Payroll 740,880 27% 740,880 27% 740,880 27% 740,880 27% 740,880 27%
Marketing & Sales 77,761 4.5% 81,447 4.5% 45,440 2.4% 47,477 2.4% 49,550 2.4%
Utility 34,560 2.0% 36,199 2.0% 37,866 2.0% 39,564 2.0% 41,291 2.0%
Income before rent 20,933 1% 57,049 3% 133,570 7% 172,769 9% 212,666 10%
Occupancy Costs 66,000 4% 66,000 4% 66,000 3% 66,000 3% 66,000 3%
Income after Rent - 45,067 -3% - 8,951 0% 67,570 4% 106,769 5% 146,666 7%
Appendix 13: (Optimistic Scenario)
Year 1 2 3 4 5
Number of Seats: 170 170 170 170 170
Number of Days 288 288 288 288 288
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George Liveras

Average Beverage Check 9.7 9.8 9.9 10 10.1
Seat Turnover: 1.7 1.82 1.85 2 2.2
83, 89, 97,92
Total Seats Sold:
232 107 90,576 0 107,712
Food 2,454,412 75% 2,653,941 75% 2,724,664 75% 2,975,039 75% 3,305,268 75%
Beverage 810,014 25% 875,863 25% 899,203 25% 981,833 25% 1,090,816 25%
Food 817,319 33.3% 883,762 33.3% 907,313 33.3% 990,688 33.3% 1,100,654 33.3%
Beverage 264,065 32.6% 285,531 32.6% 293,140 32.6% 320,078 32.6% 355,606 32.6%
Total Cost of Sales 1,081,384 33% 1,169,294 33% 1,200,454 33% 1,310,765 33% 1,456,260 33%
Direct Payroll 740,880 27% 740,880 27% 740,880 27% 740,880 27% 740,880 27%
Marketing & Sales 146,899 4.5% 158,841 4.5% 86,973 2.4% 94,965 2.4% 105,506 2.4%
Utility 65,289 2.0% 70,596 2.0% 72,477 2.0% 79,137 2.0% 87,922 2.0%
Income before rent 645,642 20% 758,358 21% 874,412 24% 1,022,844 26% 1,218,617 28%
Occupancy Costs 66,000 2% 66,000 2% 66,000 2% 66,000 2% 66,000 2%
Income after Rent 579,642 18% 692,358 20% 808,412 22% 956,844 24% 1,152,617 26%
-77-

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George Liveras

The Case of the Polynesian

Restaurant Feasibility Study

“The Polynesian” Restaurant / Lounge Bar

Faculty Responsible: David HALL

Prepared By: George Liveras

Class: E70 BBA1

Date: 4th of August

Signed Statement of Authorship:

I certify that the attached document is my original work. No other

Except where reference is made in the text, this document contains no

material presented elsewhere or extracted in whole or in part from a

document presented by me for another qualification at this or any other

FULL NAME: George Liveras

DOCUMENT: Feasibility Study, The case of “The Polynesian”

DATE: 7th of November

The purpose of this project is to determine whether there is sufficient market

Commune of Fribourg, Switzerland. By offering a unique concept and a product that is

designed to be an experience as well as a night out, the Polynesian hopes to gain a

the operational estimates.

this project a success:

Mr. HALL, David

Dr. ROWLSON, John

Mr. ROUX Dominique

Mrs. MILLER, Barbara

Mrs. CHARLESWORTH, Zarina

Mrs. HU, Pia

Mrs. BOSCACCI, Caroline

Mrs. CLEMENT Caroline

Mr. Varnavides. A: Owner of Pago Pago, Polynesian, Nicosia, Cyprus (00357-22-712777)

Table 1: Function by Area and Seating Capacity............................................................45

Figure 1: Primary Market Area, Fribourg Centre 2005..................................................16

structure for the set up of an “Ethnic”, “Theme”, Polynesian restaurant in Fribourg,

in the form of both a dining experience as well as an atmospheric theme.

increase in food health awareness brought about by medical as well as commercial

1.1. Background of the Study: The Need and the Purpose

of the restaurant industry with that of consumer’s wants and needs.

ethnic themed restaurants and healthy eating. A web site, www.preparedfoods.com,

exposed to new tastes, Weinraub (2005). Particularly in Switzerland, “High levels of

(Micheloud & Co, 2004).

ever-increasing role of women (working mothers) in the economy, the “Polynesian”

1.2. The Concept

“The Polynesian” is intended to be a casual mid scale restaurant including a

products and services: clear customer value.

1.2.1 Target Market Segments

a plethora of restaurant demand specialties in Switzerland (Source :Switzerland

Tourism in Figures, 2004) (See Appendix 1: Restaurant Demand Switzerland)

supporting the concept.

out (Hensley, 2000).

From the food marketing perspective, as well as concentrating on the female

segmentation will be further explained using Geographic, Demographic Psychographic

and lifestyle models.

1.2.2 Products and Services: Clear Customer Value

restaurant in Fribourg. In addition the establishment will follow a fusion concept of

scale table service, of a mid price nature.

1.3. Situation Analysis

of the University of Fribourg. In addition the proposed location is relative to “traffic

1.4.1 Secondary Research

Fribourg Development Agency as well as from the Fribourg Tourist Office.

Information to be collected includes supporting academic peer reviewed articles from

consult the Fribourg, development and Statistical agencies.

(Cooper and Schindler, 2003). In view of primary research to be conducted, a multi-

II. Market Area Characteristics