Simple Feasibility Report Example – [Edit & Download]

Executive Summary

This report assesses the feasibility of expanding Cuppa Joe Coffee Shop by adding an outdoor seating area. The aim is to determine if this expansion can attract more customers and increase revenue, considering costs, regulations, and potential benefits.

Introduction

Cuppa Joe Coffee Shop, located in the downtown area of Lakeville, has been operating successfully for five years. The proposed expansion involves adding an outdoor seating area to accommodate approximately 20 additional customers. The purpose of this report is to evaluate the practicality and profitability of this expansion.

Market Analysis

• Customer Demand: Increased customer requests for outdoor dining options, especially during warmer months.
• Competitive Edge: Similar businesses with outdoor seating tend to attract more foot traffic.

Technical Assessment

• Space Availability: The coffee shop has a vacant space adjacent to it, suitable for converting into an outdoor seating area.
• Construction Requirements: Minor construction needed for setting up secure and comfortable seating.

Financial Analysis

• Cost Estimation: Estimated cost for setting up the outdoor seating includes furniture, construction, and additional permits, totaling $5,000.
• Revenue Projections: Expected increase in revenue by 20% based on similar businesses with outdoor seating.

Legal and Regulatory Considerations

• Zoning Laws: The area is zoned for commercial use, and outdoor modifications are allowed.
• Permit Requirements: Need to acquire a permit for outdoor seating from the city council, which has been preliminarily discussed.

Risk Analysis

• Weather Dependency: Revenue from the outdoor area might be seasonally dependent, primarily profitable only in favorable weather conditions.
• Operational Challenges: Additional staff may be needed to manage the increased customer base.

Conclusions and Recommendations

The addition of an outdoor seating area at Cuppa Joe Coffee Shop is feasible and likely to increase customer satisfaction and revenue. It is recommended to proceed with obtaining necessary permits, conducting minor renovations, and purchasing suitable outdoor furniture.

Implementation Plan

• Step 1: Apply for and secure the outdoor seating permit.
• Step 2: Purchase furniture and set up the seating area.
• Step 3: Market the new seating option to current and potential customers.