Restaurant Start-Up Profile
Restaurant Start-Up Profile
This report is a combined effort by the Illinois Institute for Rural
Affairs and the Illinois Department of Commerce and
Economic Opportunity. IIRA, through a contract with Katherine
J. Henning, compiled the material and conducted the analysis.
DCEO printed and distributed the document.
Layout by Nancy Baird, Illinois Institute for Rural Affairs.
Published by the Illinois Department of Commerce and Economic Opportunity
620 East Adams
Springfield, IL 62701
In Illinois 800/252-2923 or 217/782-7500
TDD: 217/785-0211
Also available electronically on the Illinois Institute for Rural Affairs’ website (http://www.iira.org)
June 1999 (Revised July 2003)
Table of Contents
Section
Page Number
Introduction and Purpose ................................................................................................................. 1
Restaurants Defined ......................................................................................................................... 2
Feasibility Study .............................................................................................................................. 2
Market Opportunity ......................................................................................................................... 3
Market Area of the Community ................................................................................................ 3
Economic Base of Potential Customers .................................................................................... 5
Market Potential of a Specific Site ........................................................................................... 5
Determine the Restaurant “Concept” ........................................................................................ 6
Pro Forma Financial Statement ....................................................................................................... 8
Facility and Equipment
This report is a combined effort by the Illinois Institute for Rural
Affairs and the Illinois Department of Commerce and
Economic Opportunity. IIRA, through a contract with Katherine
J. Henning, compiled the material and conducted the analysis.
DCEO printed and distributed the document.
Layout by Nancy Baird, Illinois Institute for Rural Affairs.
Published by the Illinois Department of Commerce and Economic Opportunity
620 East Adams
Springfield, IL 62701
In Illinois 800/252-2923 or 217/782-7500
TDD: 217/785-0211
Also available electronically on the Illinois Institute for Rural Affairs’ website (http://www.iira.org)
June 1999 (Revised July 2003)
Table of Contents
Section
Page Number
Introduction and Purpose ................................................................................................................. 1
Restaurants Defined ......................................................................................................................... 2
Feasibility Study .............................................................................................................................. 2
Market Opportunity ......................................................................................................................... 3
Market Area of the Community ................................................................................................ 3
Economic Base of Potential Customers .................................................................................... 5
Market Potential of a Specific Site ........................................................................................... 5
Determine the Restaurant “Concept” ........................................................................................ 6
Pro Forma Financial Statement ....................................................................................................... 8
Facility and Equipment
References: Bygrave, William D. 1994. The Portable MBA in Entrepreneurship. New York: John Wiley & Sons, Inc. Dun & Bradstreet. 1998. DB MarketPlace (4.0 CD Rom). Entrepreneur Magazine Group. 1996. Entrepreneur Business Start-up Guide—Starting A Restaurant (No Goldman, Keith. 1993. Concept Selection for Independent Restaurants, Cornell Hotel & Restaurant Administration Quarterly (December). National Restaurant Association (NRA). 1983. Conducting a Feasibility Study for a New Restaurant. NRA. 1998. 1998 Restaurant Industry Pocket Factbook. Washington, DC: National Restaurant Association NRA. 1995. Restaurant Industry Operations Report 1995, National Restaurant Association, Exhibit A-13 Full Service Restaurants (Average Check Per Person Under $10) Statement of Income and Restaurant Industry Operations Report. 1994. Washington, DC: National Restaurant Association and Deloitte & Touche LLP.