Discover 10 Steps in a Project Feasibility Study for Restrobars & Pubs in India
As the Indian economy grows, the F&B segment is thriving at an unprecedented pace. The size of the Indian F&B industry is over USD 15 billion (in 2022 as per the analysis by The India Watch). Apart from key categories such as fine dining, casual dining, café & QSR, the pubs & restrobar segment is also growing fast in India.
The growing market for pubs and restrobar is rooted in multiple factors. India once a non-drinking nation is now witnessing a gradual shift in its socio-cultural spheres. Drinking and alcoholic beverages are now becoming part of day-to-lives. The taboos around alcohol are now lowering as Indian cities and towns are becoming more cosmopolitan.
Young demography & increased participation of women in the workforce coupled with the surge in corporates and start-ups are driving the demand. There is a visible appetite for nice & cozy places where people can sit, drink, and socialize. People are also using such premises to host personal and corporate parties, thereby further accelerating growth in the segment. The Indian millennials are also a key growth driver as they do not prefer to sit at their homes and drink. Rather they go out and prefer to party.
As the market is on an upswing, investor optimism is also on the rise. There is a growing interest in standalone units, bar chains, and franchised businesses. Both individual investors, as well as business houses, are showing interest.
International chains such as TGI (9 outlets) and Hardrock café (7 outlets) are betting on the Indian market, as they see strong future growth. Indigenous chains such as Delhi café Heights (30+ outlets) and Social (28 outlets) have also showcased commendable growth in recent years.
A jump in investor interest is also translating into the requirement for properly made project feasibility reports that cover all the aspects of the pubs and restrobar business. They can assist business owners to make informed decisions as well as help in reaching out to investors.
At The India Watch, we had a chance to work on a few such projects, and based on our experience mentioned below are ten steps needed to prepare such project feasibility report.
Ten Steps to Prepare a feasibility study for Restrobar
Mentioned below are the ten steps that can be helpful in preparing a project feasibility study of a restrobar in India.
- Understand the market: Learn about the market at national, regional, and local levels. Try to get detailed insights on food and beverage consumption. Know the break-up between food and beverage. In the beverage segment, further, learn about the share of alcoholic and non-alcoholic beverage consumption. Evaluate how the future of the F&B in general and the restrobar in particular will evolve. Analyze the main growth drivers.
- Evaluate your target customer segments: Know about your target customers, their profile, age group, income levels, etc. Learn more about needs, wants, and expectations with a restrobar. Get more ideas about what motivates them to come to a restrobar- socialize/ fun & party/ networking/ relaxation/ ambiance or a mix of all. Get an idea about how much are they generally willing to spend and what is their frequency to visit such spaces.
- Location Analysis: Often overlooked, it is very important to assess multiple locations before zeroing down on the most suitable one. Compare multiple locations and compare them effectively. While comparing look into multiple factors such as rental (or cost), market attractiveness, other alternate options in the neighborhood, accessibility, infrastructure development, potential as a tourist hub, etc. One should keep in mind, no one prefers to travel long to visit a bar and pub. So the neighborhood should have an ample volume of the target audience in the vicinity.
- Monitor the Competition: Do detailed research on other restrobars, pubs, lounges, and breweries in the city/ town. Get insights on their carpet area & capacity, occupancy (weekend and weekdays), popular drinks & foods served, prices, ownership, investment, etc. Also, learn more about their marketing and promotion with a clear understanding of B2B (corporate parties) and B2C segments.
- Equipment: Learn about what all equipment is required in a retro bar. A restaurant requires a wide range of equipment such as furniture, kitchenware, ovens, cutleries, and bar cabinets. Likewise, in case the restrobar will have its own microbrewery, then one has to know in detail about the price of setting up a microbrewery.
- Human Resource: Likewise know about the Human resources needed. This will include the GM, managers, waiters, chefs, assistant chefs, bartenders, support staff, accountants, cashiers, security, etc.
- State Bar license policies: In India, each state has its liquor policy. Before investing in the liquor business, one should know the state-specific policies regarding license fees, registration charges, excise duty, etc. Also, learn about the timelines and refund policies.
- Prepare a detailed Marketing strategy: A restrobar will require aggressive marketing to quickly capture a large market share. Marketing, promotion, and PR strategy need to have a local flavor with a key emphasis on featuring in local magazines & lifestyle websites, partnership with vloggers & Instagram influencers, local SEO, ORM, hosting events, etc. One can also think about targeted SMS and email campaigns, hosting parties and events with local celebrities, etc.
- Financial Analysis: The Financial Analysis and the projections are an integral part of a feasibility study and/ or business plan. A financial analysis of a restrobar will cover the total revenue (from food and beverage) and cost (raw materials, salaries, rents, packaging, marketing, and admin costs), etc. A prudent financial feasibility analysis should do a rigorous ratio analysis to further help the business owner plan their resources properly.
- Key Success Factors: Finally based on the entire study, the key success factor(s) should be mentioned to give investors practical and actionable insights to successfully start and run the restrobar. The key success factors will include but are not limited to future business strategy, marketing & customer strategy, customer acquisition planning, practical advice on layout design and menu, etc.
If you are a business owner or an investor, looking to enter the space, feel free to connect with us for a feasibility study or a market research requirement. Drop us a mail at firstname.lastname@example.org