Enterprise & Operations

Feasibility Study on
Food Business in
Ireland

Jeff Chau Wen Tah

D00152316

Dundalk Institute of Technology

BSc(Hons) Engineering Entrepreneurship 2016
Angela Hamouda
Enterprise and Operations Food Business Feasibility Study

Table of Contents
1.0 Abstract................................................................................................................ 2

2.0 Concept Statement............................................................................................... 4

3.0 Industry Analysis.................................................................................................. 6

3.1 Threat of new entrants......................................................................................... 6
3.2 Barriers to entry................................................................................................... 6
3.3 Rivalry among Existing Firms...............................................................................7
3.4 Substitutes........................................................................................................... 8
3.5 Driving forces of change and impact....................................................................8
3.6 Industry Attractiveness......................................................................................... 9

4.0 Value from Customers perspective.....................................................................10

5.0 Market Analysis.................................................................................................. 12

5.1 Objective of Market Research.............................................................................14
5.2 Research Methodology....................................................................................... 15
5.3 Identify customers by demographic...................................................................15
5.4 Outline of questionnaires.................................................................................... 16
5.5 Analysis on receivers information.......................................................................18
5.6 Ages group of participants.................................................................................18
5.7 Employment status of respondents....................................................................19
5.8 Waiting time on hot food.................................................................................... 20
5.9 Satisfactory level in existing service..................................................................20

6.0 Outline of Problems............................................................................................ 21

7.0 Spell out opportunity.......................................................................................... 24

8.0 Category of market............................................................................................. 25

9.0 Competitor Analysis........................................................................................... 26

9.1 Direct Competitors............................................................................................. 26
9.2 Indirect Competitors........................................................................................... 27
9.3 Future Competitors............................................................................................. 27

10.0 Preliminary outline of start-up cost...................................................................28

11.0 Overall Viability of Business Idea......................................................................29

12.0 Appendices....................................................................................................... 30
Appendix I................................................................................................................ 30
Appendix II – Highlights of Business Plan.................................................................31

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Enterprise and Operations Food Business Feasibility Study

13.0 Bibliography..................................................................................................... 33

Lists of Tables and Figures

Figure 1 The age of participants who carried out survey

Figure 2 Employment statuses among those participants

Figure 3 Rough waiting time on hot food

Figure 4 Snapshot of FSAI webpage

Lists of abbreviations

AKA As known as

CSO Central Statistical Office

Deli i.e. Delicatessen, shops which sell prepared food

EEA European Economic Areas

FMCGs Fast Movement Consumer Goods

GDP Gross Domestic Product

KSG Campus restaurant franchiser

MPs Member of Parliament in United Kingdom

NCT National Car Test

OECD The Organisation for Economic Cooperation and Development

PAYE Pay As You Earn

POS Point Of Sales

RTE Irish National Broadcaster

SMEs Small and Medium Enterprises

TDs Teachta Dala, aka Irish Member of Parliament

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Enterprise and Operations Food Business Feasibility Study

USC Universal Social Charges

WOM Word of Mouth

1.0 Abstract
The purpose of conducting this feasibility report is to identify existing opportunity
and understanding the customer behavior during academic years. A strong desire
on having financial independent, able to surviving and well-being has become as
fundamental motivation throughout the research process. Ability to cook has turned
out the essential living skills in foreign country. Most migrants do not adapt well into
local community and they find it many problems and disputes dealing with people
due to lack of knowledges of cultures and living styles.

Feasibility monitoring has had a function of scanning the issues and talks of the
town, it must be up-to-date with media as newspaper, RTE News, broadcast radio
and word of mouth (WOM). A trend of using social media such as Tweeter, Facebook
and Instagram which has become a toolkit and channel whereby any user can
access and share information on a click. A growth of savvy consumers like young
adults, they are more educated and likely to contribute their view on social which
this phenomenon has never happened beforehand.

Food catering is extremely vast and every people could be future target customers.
Food is basic need. During the time of seeking undergraduate students opinion in
DKIT has given myself a great confidence and their views were valuable. The most
challenging task of starting a business from engineering background is they step
into foreign zone and that people used to be IT background does not communicate
naturally with their ideas to potential investors or employees because they used
acronyms and terminology which ordinary people could not understand their
language.

The enthusiasm and believe for writing this proposal is bridging of cultural
difference, and perhaps by offering diverse food options will enhance the local
tourism. The business model on this proposal addresses the process of informing
the upmost natural smell and taste from the origin country. The food market has
been success to vibrant local business while also it would bring the new people to
entry the new community. A good example can be seen on Camden town, in London
UK, Manhattan region in New York USA, has proved that this idea is realistic.

This reports will reveals a more finite approach on current industry situation, the
rationale of migrants came to European countries, a pervious academic survey

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Enterprise and Operations Food Business Feasibility Study

results, basic healthy eating and balanced nutritious, migrants view and hidden
threat, existing competitions on local market and etc. The systematic operations on
food business are plain and rough, the food truck management is not discussed
under feasibility report, and this venture idea has not become a new company and
on initial stage.

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Enterprise and Operations Food Business Feasibility Study

2.0 Concept Statement

Beyond EEA region, most of the Far East countries, there are a lot of traditional
market in suburban area which gathers up with stalls and vendors who offer unique
foods beside hustle and bustle streets at downtown area. This circumstance
happens especially in Thailand, local people can trade their goods on a boat, they
sell spices, mango, local fruits, and ready to eat foods. It is rare to be seen in
Ireland. In fact people often travel and perhaps someone can bring some Eastern
flavor which might satisfy Irish people taste buds. Even the method of preparation
on food is seem like handy at foreign countries, in Ireland has faced acute situation
on sourcing the ingredients, climate influences, and less selection on fresh local
vegetables and fruits available in this market. The other factor has to be considered
as, will the people accept the offering and how many people on market and how to
access to these customers.

As being an international student in Ireland, most people find that there is a cultural
impact to eating and living. Some of them could not find themselves a favorite food,
even they do not recognize what they are going to have their lunch. The price of
each meal are five times expensive than their country. For example a lunch tuna
filling with egg mayo sandwich is sold €4, it is reasonable while local people has job
and affordable. However, it is a luxury for international student who buy the food in
canteen. While in China a sandwich can only cost 5 Chinese Dollar which is roughly
€0.70 for spending a good lunch. The second thing is the taste of food, as
comparing the food offer from their hometown, it is tasteless, less flavor or weird
describe by themselves. Also, student who came from a rich family who are
reluctant to adapt into a new environment, learning western culture, meet new
friends because they find themselves are unique and unreplaceable. They would
rather stay at home and cook their own foods because it is more comfortable and
pleasant to living in their own society, they speak same language.

One of the facts which could not ignore is hospitality service, as eating out at
campus restaurant. Observation of the situation and staffs can be easily spot during
lunch break having meal with friends. Many of international students who did not
express clearly what they wanted, were badly treated in front of Deli counter.
Perhaps there was a long waiting line and the time pressure behind. The catering
staff should not serve the customer as impolite manner and chasing the people
away. While asking for some additional ketchup, people were warned it need to be
paid. My German friend said that “I wouldn't come to this canteen again because of
their rude behavior!”

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Enterprise and Operations Food Business Feasibility Study

A new venture should be profitable and tangible. At this moment, I might not have a
qualification to produce a prototype and turn into a product and become a good.
However, a need in customer will turn into opportunity. A burning pain is observed,
the objective is clear to shape this concept. There is a commitment need to pursue
as a result to achieve a multicultural sustainable living community by integrating
the customer need and compromising into a food menu. They are looking for
reasonable, delicious and affordable recipe in order to change their mindset and
eating outside is their part of daily life.

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Enterprise and Operations Food Business Feasibility Study

Dundalk IT is a small living community with approximately 1,000 people of

international students (Student handbook 2016/2017) study annually. The living
environment does not fit them. Some of them are not able to identify what they
need by verbally. They are not comfortable with associate local people because they
are shy and feel depression and also they are not being respected, prejudice by
society. For example, Muslim students they cannot have pork in their meal, they are
prohibited by religiously to having any sausages, bacons, rashers etc. on their plate.
They eat halal, which means a meal without pork. Some catering staffs have not
clearly explain the description on the foods, without understanding their culture,
they offence those Islamic students.

To run a restaurant in any part of the world, there is a pathway from a trainee waiter
to management level till directory broad. It is a massive organization in hospitality
industry. There is a front home operation and back house kitchen. The method on
preparing a food, from purchasing raw commodities, stocking, arranging, processing
and finally deliver in front of customers. A proper scheduling is important fact to
operate a proper restaurant i.e. daily routine of tasks, staffs attendance, cleaning
procedures and etc. Every process should ensure it is under the regulatory of safe,
healthy and hygiene. This will prevent the customer from taking a poison food. A
good waste management scheme will enhance the environment, such as an
understanding from disposal, recycle, reuse or landfill. Moreover, under the
maintenance scheme, the operator must have competences to dispose oil from the
separator, utilize the energy efficiency in order to saving operating cost. The most
fundamental principle to sustain any business such as cash flow management,
financial appraisal, contingency plan for emergency but also an understanding of
do’s and don't’s on legal and commercialization during the business commence.
There are abundance of details need to discover before making a decision whether
a business idea is feasible.

Undertaking a feasibility study is a safety precaution to start up a business. This

report has investigating purposed by judging should the progress to be continued.
Many people do not recognize this plan and they might think that it is a way for
consultant to make money. Some people will avoid them because of time saving and
get quicker into marketplace. However, people who have failed in their business
venture because they do not have spent adequate time to study their market and
understanding customer need. They are product orientated more than market
orientated. To gain more experience on hospitality industry, I have previously
worked part-time during my study. The experience is rewarding, from the
housekeeping work to managerial task, it is challenging because they will have
different, strange people or customer will be met and having disputes in

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Enterprise and Operations Food Business Feasibility Study

communication. The relationship with the customers, how to impress apparently,

grooming skill, answering phone call from take away and dealing with food
suppliers. I love to cook and share the food with my friends weekly and I am glad to
see they have finished all the foods which prepared solely by me and this
excitement never fades.

The concept on this venture is developing a fast food menu, i.e. Chips and Sausages
with homemade Thai Sauce and Red Curry Sauce. It is not commonly available at
marketplace therefore the niche is narrow and tangible because from dine out
experience, there are no competitors are serving the exactly menu. The sauce is
made by blending the raw ingredients so the process can be labour intensive. While
this can be a unique selling position from the texture and smell which will attract
the surrounded passenger come into and buy the food.

3.0 Industry Analysis

According to Competitive Advantage from Michael E. Porter, a feasibility overview
whether the new venture is profitable, it is based on the structural analysis of
industry, understanding the nature of each influence by making judgement on each
factor, these famous factors are the bargain power of customer, the supplier, threat
of new entrants, substitution and the rivalry among existing firms. Even the author
has emphasized this analysis is used for enhance the performance for a company
and formidable to read the whole book. However these headings are useful for
reviewing but also able to address the challenge in the future.

3.1 Threat of new entrants

While propose to operating a small food business in Dundalk IT, a new entrant
means new player without previous history in the relevant rival. The whole campus
restaurants are dominated and under a franchise which is KSG group. Catering
service of DKIT are the main restaurant, the well, the coffee dock, Starbucks and
Costa Coffee. These are allocated in different part of the college. The main
restaurant can cater up to 500 people. The license of the catering has to be
renewed every 5 years and it is expensive to pay for running a franchise. Mission of
the KSG group is “We want our customers to have a restaurant experience far
beyond their expectations – Patrick Guibaud”. The issue is for most international
student, they lack of insight on hospitality industry. It is taught as highly profitable
on this particular business, therefore it becomes a magnet to competitors.

The concept is having a catering service by offering a new recipe of homemade Thai
Green Curry Sauce with Chips and hot Deli which include sausages, chicken

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Enterprise and Operations Food Business Feasibility Study

nuggets, fish fingers etc. Even though personally I have the skill to prepare the
menu, it seemed to be a small part of the whole operation. The price of raw
commodities is relatively cheaper when a huge bulk is ordered, the bigger the
quantity, the lower of the price, the scale of economic. While a business is start up
small, there are hidden costs and for example the license cost, maintenance cost,
water and ESB charges, rental, purchases and miscellaneous charges etc. Without a
proper planning or feasible study on current economy, a venture could be not
gaining profit as plan. An experience market consultancy suggests that constantly
monitor on environment trend, as acronym PEST factors, such as Political,
Environmental, Social and Technological. These are a framework and modus
operandi to keep the business sustain, profitable with improve its operating
performance. Due to many uncertainties, many questions are not being answered
and there is a mist by taking a step forward.

3.2 Barriers to entry

A big organization of hospitality firm is more secure and security compare to a small
food business. The resource and expertise to deliver the service is more mature and
competent when dealing with different scenario. Because of the expensive price, it
attracts potential new entrants. The barriers are basically the permission,
legislation, technical process and acceptability of the stakeholders. These issues
have not been assessed. A new recipe will attract customers and some people
willing to try a new food menu. The problem is how to keep the surge in the market
and constantly excite the people. Building a strong brand will create a confidence to
the consumers. An existing firm has this competitive advantage by establish a
brand, a trademark, which is exclusively belonged to the firm. For example a fast
food restaurant McDonald, a golden arch is a strong brand for its business.

Breakthrough innovation is rare in hospitality industry. As the product is highly

differentiation compare with existing offering. To sustain a business, a constant
market research has to be done by understanding their behaviors and demands.
Without deliberately interrupt the potential customer, the process should be simple
and not to be time consuming while taking part the process.

The capital requirement is solely depended to the size of business. A small food
business may require €50,000 of capital to run a proper business however it can be
low as €5,000 to start a business by purchasing equipment and commodities and
without taking consideration of licensing, consulting and advice from a proper man.
A person who does not have an extensive knowledge of the hospitality business
who runs a small food business will probably fail. The risk is huge as there should
have a person who is responsibility to taking health and safety of the food offering
as well as hygiene. Some operator does not obey the legislation can save up a lot of

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Enterprise and Operations Food Business Feasibility Study

cost by neglecting the proper pathway to establish a business, such as providing

untrustworthy information when purchasing liquor license.

As having a hot beverage in any college restaurant, a loyalty card is given. It is used
to record the stamp for every purchase of hot coffee and tea. Ten stamps collected
will get one free drink. The loyalty card is a tactic to attract the customer return and
buy the product. Customer will constantly come back because they feel they gain
more benefit from buying a same thing in a place rather than the other shops. The
legal policy is an important factor while starting a business. To ensure the people
who are protected from hazard. The employer has the obligation and duty of care on
the people who start a business. The customer has the safe food to eat. The
description of trade should be matched to the product, trademark of the brand
name, menu and the method of preparing, understanding the act of sale and good
with legislations and getting an appointment from Environmental Safety Officer to
investigating the kitchen. These tasks should be done before commercialization.

3.3 Rivalry among Existing Firms

Dundalk is a small town with a population of 34,000 inhabitances (Environ Dundalk
2009-2015) and DKIT has a number of 5,000 students and staffs. The existing
market is almost saturated on hospitality market. By observation the car park
outside the KFC fast food restaurant during the day, the business is generally not
well in most weekdays. McDonald in front of Tesco has offered McMuffin with tea or
coffee which is €3 and it is a good deal and quite a lot of drive thru in morning from
7 to 9. The competitors who are the big firm are bullying the SMEs by level of fixed
cost which is a firm with higher fixed cost will sell a higher volume of product. A big
firm will get a large portion on market share. The growth rate is small which
attribute a greater competition. A small food business never has thought about
these factors.

Prior to establish a business plan, a behavior of competitor should analyze and

evaluate. A small town in rural area does not have much growth on market while
compare with Dublin or Cork has a dense population. Big companies always creating
job for local people and from this reason working for someone has become a trend
and people who will become lack of entrepreneur mindset. Team working on a
project will be more beneficial than working individually. In the business context,
joint venture and form partnership within external firm is a way to reduce
competition and enhance a firm position.

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Enterprise and Operations Food Business Feasibility Study

3.4 Substitutes
Substitution is the way to replace an existing product or service with another format
of presentation, typical example can be the traditional payment such as cash is
being replaced by bank card, store card as visit particular shops; watching a movie
instead of buying DVD or in cinema, watching the movie through Netflix which is
online streaming movie therefore people does not need to walk out from house. In
the hospitality firm, the competition is vigorous and there is always a fear that
replacement by a new substitution. The best way to combat the threat is invention a
new innovation or food recipe hereby, a continuous progression such as plan,
action, observe and reflect while undertaking a program including provide a safe
work environment and to treat every employees without prejudice. Substitution
from external firm into a town is rare, unlikely major city like Dublin, Cork etc. The
growth of hospitality enterprise is limited by population, legislation and their
lifestyle. The simple example is a person less likely to take twice lunch, twice dinner
and people in industry they know the business life cycle. Substitution of the new
recipe or meal deal offered by competitor, it will attract most customers during the
promotion weeks, e.g. €1 lunch meal deal in Dublin on every Wednesday. The
surrounded café, restaurant will become less crowded because the people are
interested by price listed on food. Most of the people has job and the opportunity is
offering a quick service and has more time during the rest time.

3.5 Driving forces of change and impact

Generally, great powers such as social and technological trends impact the most of
industrial demographic. Social factor such as fashion and lifestyle and technological
factor or information technology, nowadays people heavily depend on social media
and Facebook which has delivered more updated information rather than word of
mouth. From previous catering industry acknowledgment, every disappointment
from customers, failure to satisfy the people, maximizes cost benefit and resources
sustainable viable business can be vital reason for changing the current situation.
Simple alternative recipe approach can excite the regular customer by adding some
spicy flavor on food, although it is uncommon and people might feel uncomfortable
to attempt the new cuisine on menu list. Food menu can have different variation,
mainly dominated by the culture and demographic on the specific region or state. A
normal sandwiches is normal for lunch option in most Western countries but it turns
up to a luxury deli e.g. Subway food which may cost 4 to 5 times which sold in most
Asian region countries. Asian people will have fried rice for lunch because it is
cheaper and easier obtained from local store. Variety of premade lunch boxes can

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Enterprise and Operations Food Business Feasibility Study

be found from Mark and Spencer store and recently there is some microwaveable
food in Asian cuisine found in Tesco and Dunnes Stores, Dundalk and these might be
a sign of changing the market demand. A lot of efforts to push the sale of Asian deli
for example the promotion of buy 2 for €6 which encourages the local people to try
the new product.

Bootstrapping a small food business is formidable because the market size is small
and highly dependent on regular customer. In order to sustain and survive, a
constant monitor of current trend for example societal concerns, attitudes and
lifestyle will give a hint and it can be an advantage to become a pioneer in this
cutting throat competition. Nowadays the customer become more savvy and
educated, to able to contribute a unique selling position, a lot of fieldwork study and
reviewing of published documents can observe the background of business
environment.

3.6 Industry Attractiveness

Degree of acceptance by major customers will decide the venture is either in boom
or bust. Different industry has magnificent bias on profitability and market demand.
In business context, market can be categorized as mass market and niche market.
The typical example for broad market is hospitality industry, FMCGs, services,
hairdresser and etc. These have a broad market share and usually have generated
more profit due to its size. It also can be explained by the people need and want.
People need food, shelter, warms and transport which cannot get away from daily
routine. Want is desire, is not necessary in essential life. On the other hands,
specific markets are so unique and serve a small group of customer or target
segment. A niche has narrow gap on the market and it also relates to the core
competencies on the existing firm and resource. They are providing magic pills to
certain people in order that it would not cause sleeping disorder. Usually technology
product can bring the problem to solution such as the RFID sensor, attach into
product and prevent thief; point of sales counter (POS) has successfully raised the
efficiency of resource utilization and achieve a better service in supermarkets i.e.
TESCO. The burning problem such as data security and environment hazard issue,
emission of carbon dioxide gas, can be defined as opportunity by inventing a
product or a concrete plan, bring down the harm.

Customers are likely to purchase a product to solve their problem. Firstly they are
looking for the best, most budget option in convenience way. In this food industry,
level of attractiveness can be nurtured while altering the food recipes, substitute
healthier option by balancing the nutritious of the meal, serving the unique group of

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Enterprise and Operations Food Business Feasibility Study

people, able to predict the customer behavior in the way of approaching them in
conducting a survey, specialize in menu and etc. Innovation ideas and the shortest
time to enter the market, will always win in first place.

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Enterprise and Operations Food Business Feasibility Study

4.0 Value from Customers perspective

As far as concern, intelligent and savvy customers are unlikely to put their money
down the drain and looking for nothing. This comes to people who have different
definition on themselves, some people like to spend money on the clothes and
foods, some people will spend their money on good music and movie, a few of
people think about an evening class will bring more benefit to themselves. The
ultimate goal for the firm who introduce their own product must create a valuable
solution to customer, for example making the customer feels caring during the
period of service, enhance the decoration of the product will add value and people
will feel more appreciate during they use, i.e. the product from Marks and Spencer
are different to Lidi. People would argue with the price of own branded cookies, €4
and 49 cents for 300g. Both brands have provided the finest quality but the
difference is the packaging and layout presentation. These have target different
customer segment, such as if purchase the cookies as presents to friends, people
would look for decent decoration rather than the plain, ordinary packaging. However
it is also depend on the economics of the market place, if there is currently facing
an economic downturn, people has less preferable on luxury option rather than
useful, practical and good value on the product.

On the opposite site which relevant to the project, the fast food catering service in
town can be successful if constantly emphasis the advantages that will add the
value form their money in their pocket. A balance diet menu, nutritious, organics,
locally produce and fresh ingredients. These are the key words will drive the
business into sustainable profits and create a loyalty on the customers.

From the market research that conducting earlier, there are 25% of people who are
unsatisfied the existing service available, harsh behaviors, unrespect to people,
fault in communication and potential hazard materials contain on the food can be
formidable. Gluten products are usually found on the wholemeal bread, plain flours,
sausages and any battered fried foods. Person who is sensitive in gluten which will
cause the person cannot digest well in stomach and eventually cause dehydration
and lead to food poison. Gluten is a large particle of a chemical which will form a
large cumulative waste in intestines and destroy the wall inside it. As a
consequence, person who in this disease will have a difficulty on absorb the nutrient
on the other foods.

The value on the food product is labelling, providing those contains and information.
For example buying the milk from shelve, expires date is the most important factor
that whether the people would purchase and store for certain days. The safe

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Enterprise and Operations Food Business Feasibility Study

consumption food must be emptied within the deadlines. It will cause the food
poison or bad change in nature of the food as improper storage and by not following
the instruction during preparation. The legislation has been introduced that has
coverage all food product must have a correct and unambiguous label on the
appropriate packaging under the Sale of Good and Supply of Service Act 1980. The
consumer right is available and customer can appeal to small claim court if the food
product label has lead misunderstanding and confusion. There is also an offence by
posting a no exchange, not refundable and similar signature which people may feel
their right may not grant.

Customer has absolutely right when they identify the service and food which is
served cause a serious illness and eventually lead to loss in business. A careful
observation and personal hygiene must be always kept in mind to ensure that the
workplace is spotless. The food commissary or simply called the base has to be tidy
and ensure there is adequate space which the workers will have a comfortable
space to do their housekeeping work after they close for service. Before starting a
food business, a document of HACCP, Hazard Analysis and Critical Control Points
must be illustrated and supervised by Health and Safety inspector in order to ensure
the operation is safe for most employees and staffs.

While the days I was working for the front house restaurant, I received the
complaint from local customer that comment that the vanilla cakes on the buffet
table had stuck with polyethylene foams, a tiny small white form bubble attached
on the surface. Both were white in colour and hardly distinguish by bare eyes. This
was happened when one of the staffs had teared out the packaging in quickest and
careless ways and the bubbles left on the surface. At last the customer came back
and looking for compensation and €200 was paid. The person who made this
mistake, he lost his job. Therefore a proper trained staff within a certain time is
significant in hospitality industry to reduce the risk and injuries.

A decent decoration of the premise will attract the people to stay, which is a good
atmosphere and an appropriate theme, comfortable dining place which is not too
warm or cold, the setting of table, the pleasant and eye catching menu, friendly
staffs and professional service. In the business words, customer is king. The value is
also credited by having a skillful use of resources, management but also maintain a
mutual relationship within the staffs and customers. Occasionally update the menu
and appropriate alternate in existing recipe will excite the customers, for example,
seasonally produces ingredients can be substitute by offering the balanced
nutritious.

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Enterprise and Operations Food Business Feasibility Study

A healthy diet is basically a food pyramid, so called staple food is always bottom of
the triangle, these are product made by wheat, breads, potatoes, spaghetti, rice,
cereal etc. that will make the stomach have a sense of fullness. The next level is
consist of vegetables and fruits, they are rich in fiber and have a crunchy texture
which provide little amount of energy but it will help the digestion of the stomach
and get rid the waste. The third level consists of meats and daily product such as
cottage cheese and milks. These foods are rich in protein and will help and repair
the blood and muscle growth. It is recommended having twice a day. The top of food
pyramid is the sweets, chocolates and fats which should be avoidable from health
diet and the fewer intakes of these foods, the less likely happen of high blood
pressure disease and stroke. For a good value of lifestyle, daily food intakes must be
equally same as the activity or sport. Too much food intakes without having exercise
will eventually lead to overweight or obesity, it will endanger the life and likelihood
to have sickness.

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Enterprise and Operations Food Business Feasibility Study

5.0 Market Analysis

Unlikely the industry analysis, market analysis is a study of behavior on people and
social circumstances which is usually outside of the firm. By conducting a proper
external analysis will give a good shape whether the own product is on the correct
timing in the market. Most relevant example that is who has ever been a driver and
approaches to roundabout, a good signal to direction is vital to show the driver
behind, and a careful observation on the right hand side will give a clue if the man
is on the right time to come out. If the observation is not conduct properly, it will
lead to car crash and life endanger. Therefore a market research document must
produce as similar the work done on driving a car by a careful observation the
situation. This would also save the time and money that would prevent the venture
from failure.

Perhaps some people without relevant industry experience would argue that
conducting a market survey report is wasting the time and an awkward way to
disturb the working people during office time. Most people do not like to answer the
call from strangers or so call sales reps. However, those people are under pressure
for achieving higher sales and growth and it is describe as a cold call. Most
engineers do not like interrupt the public and they prefer to work on their own. This
would also influence by the personality itself and it is really hard to breakdown the
phycology barrier, coming out with a wobble speech and feel like a stubborn in front
of people. Under the bigger company size, there are several departments such as
R&D, accountancy and finance, human resources, marketing etc. and the tasks are
delegated to the right candidates. However, the startup firm or self employed is
restricted by limited resource, expertise and most economics of scale. A good
preparation or joint a current venture will eliminate the risk but also share the
resource. The truth of the business is able to coordinate and cooperate with success
firm. The bigger scale of business has better position and more capable to resist the
threat which is the origin of the market place.

A small firm has opposite strategy, a technological product has effectively solved
the problem but they might not have vast enough production due to their finance.
Simply speaking the product is very expensive in the first entry to market and only
first tester will buy and use it. A typical example is the can opener, the electronic,
self-driven, small pocket size can opener is success at entry because they have a
right target of the customers, which is household user, and they have a clear vision
on reveals the illness on left hand user. Innovation method has proved to be
success; even they are in a small firm, seeking a right packaging, cooperative

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Enterprise and Operations Food Business Feasibility Study

manufacturers, patent and IP right is a strength factor. An invention by engineer

from desk in workshop until shows on shelves on store, it is adventurous and novel.
The biggest trigger is user, niches and opportunities always the flip side of
problems.

Complimentary skills are vital while undertaking a market research, questionnaires

and forms must be easy read and clear. A suitable person or a person who is
wisdom in this particular field has to be contacted by seeking professional advices.
If a person who has the knowledge to manufacture the trigger of the volley balls,
the appropriate way is to provide several alternative solutions, draw a table with
some scores, it is called matrice, the highest score of the solution obtained is the
best options. This would reduce the probability of failure and also a chance to revise
the issue. A team has to commit and have a same goal to achieve, by breaking
down the possible and the chances.

In traditional way, market research can be conducted in two methods, the primary
research which is face to face interview or direct personal or fieldwork research. The
secondary research means any published documents, industry reports, central
statistical office reports, books, magazines and newspaper are good indicators on
current trend. Extensive reading and analyzing these issues may be useful but
constantly seek from the people who know more on this information is beneficial to
this project. While undergoing a fieldwork research, objective must be contrast and
target audience must be capable to respond all the questionnaires. Meanwhile
setting and contents of survey questions has served certain purposes, whether the
product itself has been tested it is useful and practical, by analyzing problems from
user, or bargain power of purchasing from vast customers etc.

Food catering idea is about the practical and contributing the relevant skills, it also
entertains customers by satisfying their needs. By setting up a serious of
questionnaires and know what they are happy and what is the things that people
are not glad with. Most people can read and understand those questionnaires and
send the complete form by email in the appropriate time, i.e. tea break or lunch
break. At this time people will check their online status such as Facebook, Tweeter,
Instagram and Outlooks. Basic understanding on people daily route will promote the
chance to get through on objectives, enhance the likelihood on people who read the
questions and answer it. Same analogy can be described by fishermen, identify the
target school of fishes on perfect timing and location, get the net and harvest them
in the shortest period.

To increase the reality on feasibility project, a face to face interview within industry
expert, which provide more information especially insurances and other hidden
costs which people might not think as depth. A safety procedure and working

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Enterprise and Operations Food Business Feasibility Study

manual must be written and to be communicated to all the staffs who works in
industry. To eliminate the chance of dangerous, unpredictable risks, by purchasing
various insurance can be a precaution of uncertainly. However face to face interview
could be formidable because they might take your idea directly after the person has
shared those unique ideas. The industry is highly competitive and many rivals seek
for growth. Therefore social network play a vital role when undertaking this survey,
friends and family will give a stepping stone on feasibility project.

Searching relevant website and get contact with the institution either by telephone
call or formal letter is the other alternative way to complete the task on fieldwork
survey. Compare to modern way such as conducting Survey Monkey or Google Form
and attached the link on social website or Outlook, it cost more resource, time and
money. Peer to peer interview works better if advance appointment has been made,
or otherwise the project manager will ignore those unnecessary letters by not giving
himself troubles. Therefore an appropriate timing, by giving a good reason and
contact the relevant personal will boost up the winning opportunity. Reading the
suitable materials such as magazines, handbooks, newspapers or some e-books can
be time consuming as the person has not reach the same level of knowledge but it
could be rewarding by continuous progression. However, ability to choose the right
material is important because it will save the time and more focus on the subject.

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Enterprise and Operations Food Business Feasibility Study

5.1 Objective of Market Research

A preliminary market study was proposed and success in a form of collecting
interviewees opinion. A series of questionnaires was set up to investigate the lunch
option during weekdays. Basically the questionnaires was sent in electronic form by
email in DKIT college across 5 departments, include school of engineering, business
studies school, school of nursing, IT and visual art school and school of hospitality.
Huge advantages of collecting information among the students and staffs in college
environment is simply because they are capable to answer the questions during tea
break and took little amount off their time.

As far as we know, most people do not have adequate time to prepare their meal
every morning or some people would prefer to prepare sandwiches at night the day
before. The food is essential need, as at the same level of need of air, love, shelter,
sex under the hierarchy of need. A smart household or family will draw a budget on
expenditure for foods and this would allow them to enjoy a bit of luxury during
weekends. Food industry come to marketplace especially in busy urban area
whereby the number of affordable customer growth, either teenagers or students.
People have more choice to select what they want to have at lunch instead of
prepared by themselves. Food industry becomes competitive due to customer
behavior, level of service, changing in lifestyle and prices. Identical products or
services emerge will not stand out of crowd, therefore opportunity is found and
observed as there is a cultural gap which is possible to bridge up.

The experience of taking a lunch break and having a meal, there will be a huge
queue line till the entrance in front of deli shop, some people are frustrated at
waiting, staffs are busy to prepare and pack the foods to fulfill customer orders,
competent staffs can manage their tasks or even they are multitasking, some
inexperience staffs are clumsy and awkward during this period, until they are being
scolded, these people are making mistakes easily under pressure and therefore lead
to customer unsatisfied.

A solution was came out nearly a century ago which a deep fried food provide a
crunchy texture and feeling of fullness. They provide quick, price efficient and
delicious meals. Due to those meals are half made and the procedure is simple, less
effort spend but however those food are heavily fried and salty, it leads to bad
health and cause obesity. The fast food will give a false illusion which satisfied
people appetite. Hence there is a trade off between the price, health conscious and
time efficiency. People who want to save expenses and without adequate time, they
will probably choose fast food. The increase awareness of healthy diet in mind, they
will unlikely to have fast food or even though they never touch it again because

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Enterprise and Operations Food Business Feasibility Study

their friends suffer in obesity. General Practitioner would recommend that normal
people will not intake fast food more than twice in a week, and also a food energy
intake must balance with adequate amount of activity output. A general concept of
nutritious must be clear and not only blame for people who providing a small
business which could lead to bad health.

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Enterprise and Operations Food Business Feasibility Study

5.2 Research Methodology

A list of questionnaires was designed for potential customers across the campus in
beginning stage. The objective is to target their lifestyle and behavior during the
weekdays and observation on their interest in relation to food option before the next
stage which will be outside the college. The context of survey is vital when
designing a form. Information requirement table was provided by lecturer that can
be used as a guideline to sharpen the definition and key questions were outline. A
precious definition and relevant subject will contribute quality information.

Likert scale which is psychometric respond scale was used and this is basically
closed end questionnaires. This method would provide a statistic graph which is
easy to observe, analyse and make conclusion. Opened end question such as their
direct word to mouth will make the survey more difficult because there is no right
answer. People will spend more time on answering a long question and this would
make the people skip this question. Due to this reason, the questionnaire which I set
up does not include open question and make the process easier. Some people would
argue that quality and quantitative questions must establish and be balanced.

The stage of carrying out research method s simple because of the topic is relevant
to most people, clear, precise and well match to people life. Non technical language
was used in the survey form and no probing or sensitive issue was asked. The
degree of research will be more difficult when the topic is narrowed down to a
specific region or technology bases and respondents are required a certain level of
expertise to answer the questionnaires.

5.3 Identify customers by demographic

Demographic survey is the statistical study of populations, including consumer
behaviors, purchasing power, and situation analysis. By undertaking fieldwork
research, it will able to distinguish a group of people in different segment. As part of
preliminary study, the baseline results can be analyzed due to gender, age group,
current status, income level and etc. A preferable survey form should have a
characteristic of encourage, stimulate and develop the idea that will attract most
people attentions.

Main research questions must be relevant to particular project, data requirement

table was act as a yardstick in aid to depict the layout and style of delivery on the
structure of the format. To profile customer, key questions need to be outline as
age, status, location, education background and attribute which respondents are
able to answer. While asking income level of people can be sensitive issue to some

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people till who will reluctant to fill the information. Income level can be gauged as
purchasing power of certain group of people and this will immediately impact price
of the products and services outcome.

Buying behavior can be described as the accessible of products or services before

taking any investment plan and implementation progress. As entrepreneur should
decide when come to selection based on customer behavior. To maximize the
benefit of survey, the designer should build a series of questions whereby directly
closed to customer perspective. The typical example of customer behavior such as
people could buy goods and walk into shop, some people would rather do online
shopping, a few people will buy goods during promotion or sales, options are varied
and people have loads of alternative and actions. As an entrepreneur, the best way
to anticipate their behavior is to comprehend the way of people thinking or
psychology which will amend and reflect their need. Analyze and understanding the
current trend and become more sociable will make the idea workable.

Market research is undoubtedly a continuous progress which should not be taken at

once, the alternative way for obtaining information is directly contact to relevant
institution or organization where the competent personal work. By establish a focus
group with same interested and passion on specific subject would enhance
probability to success. By joining as membership online would save some outbound
journey and subscribe their magazine which providing a juicy content of relevant
information. All these effort will highlight the important of feasibility stage that
would transformed into business plan in later stage. There is a clear border between
feasibility study document and business plan. The first is defined as viability to the
idea and the business plan described as the steps through the process. Feasibility
study also include the environmental monitoring which is external environment and
internal environment, by comprehend those factors will provide a standing position
not only the organization but also the product or services itself which can be used
as tester for marketing.

5.4 Outline of questionnaires

The function of giving out questionnaires is collecting information but also give a
structural feel of the community whether they welcome the idea. Twelve
questionnaires were designed and the first section was include basic demographic
info, the middle part of questions were about satisfaction on current service and the
final section is about the idea, the questions are shown below and a few description
and reasons behind the question will come along with.

The first section is about requiring person gender, age and occupation which is a
typical profiling of customer, as part of demographic survey.

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Enterprise and Operations Food Business Feasibility Study

Q1 I identify my gender as… male, female

Q2 What is your age? options are…below 20 years old, 20 to 24 years old, 25 to 29

years old, 30 to 39 years old, 40 to 49 years old, above 50 years old

Q3 Are you currently.. employed with wages, self employed, a student or other (may
included unemployed, pensioner, veteran etc.)

The second section is probing about the existing service and their opinion of eating
out experience. This section would define the strategy need to undergo and also
implementing the improvement on performance. Majority of answer would be two
option which is yes and no, likert scale and simple reason is for the ease of
answering question.

Q4 Have you been to a takeaway recently?.... yes, no

Q5 Rough waiting time on your hot food… within 5 mins, 5 to 10 mins, 10 to 20

mins, more than 20 mins

Q6 In existing service, you feel, …. extremely satisfied, very satisfied, satisfied,

dissatisfied, extremely dissatisfied

Q7 Does improvement require in existing service? … yes, no

Q8 Have you been any disappointing circumstance? (e.g. food does not match,
hostile behavior, wrong changes given..etc.) …yes, no

The last section is the new recipe and also the idea require to tell the people
whether people will accept, like or dislike on new idea. A brand new menu recipe
can be driver of motivation while there consists of great statistic evidence which
proves that the idea is workable. This is also as the core of questionnaires that
would tell the organization the story, a more common example without filling up the
paper is giving a sample of food or taste therefore the respondent could tell their
opinion directly.

Q9 Will you concern fast food (Chips and Curry rolls, one half and half..etc) when
you have limited time rather to prepare your lunch? … yes, no

Q10 Thai curry is a typical green curry which gives a slightly stronger aroma and
sour compare to normal curry. If Thai green curry become substitution, will you be
interested? .... yes, no

Q11 Price of fast food usually is cheaper than other lunch options, but it does not a
good choice because contains more fats and higher cholesterol level. How often will

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Enterprise and Operations Food Business Feasibility Study

you choose fast food as your lunch? ... never, twice in a month, once in a week,
twice in a week, three times or more in a week

Nb: This question has answer set up in a style of typical likert scale and the answer
is according to the level of frequency and from never to more often.

Q12 If similar service coming up soon, will you be interested in my offering? … yes,
no

The next section will reveal the result on market research and an extraction of
questionnaires was taken out for further description. However a complete form of
result will be attached on appendix section for investigate and review.

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Enterprise and Operations Food Business Feasibility Study

5.5 Analysis on receivers information

At the beginning stage, surveyors need to identify the background of potential
customers. Questions should be designed to meet the requirement in order to target
the segment group. As mentioned above, ages of group, genders, current statue,
etc. There are 75 males and 123 females have participated in this survey. Most of
the completed survey was done by sending links through college webmail and
generally could anticipate that females are likely to have spare time to complete the
form.

5.6 Ages group of participants

The second question highlights the age group of the customers. The results can be
clearly categorized the number population of certain age people and diagram shows
below.

The ages of participants

80
70
60
50
40
30
20
10
0
o ld ld ld ld ld ld
rs rso rso rso rso rso
a a a a a a
ye ye ye ye ye ye
20 24 29 39 49 5 0
lo
w to to to to ove
Be 20 25 30 40 a b

Figure 1 The age of participants who carried out survey

From the result, the most respondents are 20 to 24 years old about 75 people out of
200. (38%) and the next range is below than 20 years old which about 56 people
have participated this survey. Ages above 22 years old are categories as mature
students or can be assumed as staffs (38%) who have respondent to survey.

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Enterprise and Operations Food Business Feasibility Study

5.7 Employment status of respondents

Current Employement Status

11.61%

3.00%
Employed with wages
1.00%
Self- employed
Student
Others

84.38%

The
majority of the respondents are students and about 167 students have joined the
survey. Secondly are staffs around the college about 23 people participates on this
research. The reason behind is because whether they have expenditure and willing
to spend money on outside food. Students will not get extra money unless they do
not work as part time.

Figure 2 Employment statuses among those participants

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Enterprise and Operations Food Business Feasibility Study

The price of food has to be affordable therefore people willing to pay. Strategy can
be applied such as promotion. To introduce a different variety of food to keep people
interest in particular products and services. Focus on each market segment and
constantly sought their thought. A hypothesis can be taken as the more
employment level, the more money people will spend on foods or other
expenditure.

Participants who employed with wages can be assumed part-time students or staffs.
Self – employed is rare (1%) in this situation because they might have student
identification but also running a business by own. Others can be categories as
unemployed, retired, army and others identification. The most important in this
question asked is looking for the level of affordable price which will suit or cover to
all customers needed.

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Enterprise and Operations Food Business Feasibility Study

5.8 Waiting time on hot food

Questions asked in this situation is delivered past experience when visiting any take
away because the food can be prepared in certain standard but depends on the
speed of delivery and the method of processing. The majority waiting time are
falling into 5 to 20 minutes which is logic and the statement is truth and accurate.

Figure 3 Rough waiting time on hot food

Waiting time on hot food

more than 20 mins

10 to 20 mins

5 to 10 mins

Within 5 mins

0% 10% 20% 30% 40% 50% 60%

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Enterprise and Operations Food Business Feasibility Study

5.9 Satisfactory level in existing service

The rationale by inquiring these questions from broad people is to seek out a
current problem which faces on industry and improve by better training and
expanding the resource. While there are about 90% of participants are satisfied on
current offering. For example the level of service, quality of food and the resource
available, politeness of staffs, level of enthusiasm while delivering. Some people
might argue that giving a polite nod on those respond will result the reality on the
subject. The satisfactory level on current service has multiple dependent and the
person who has a great view on particular sector will likely to critics the project due
to the same value, belief and eventually encourage to greater and profitable
venture. Gathering the expertise and share the information could lead to argument
but it is a great experience.

6.0 Outline of Problems

Previous chapters as concept statements and industry overview, consists of many
overlaps among each heading. The problems on current social trends has been
magnified such as bridging between cultural backgrounds, the price of foods that
people could not bear if there is no payment from employment, level of service and
satisfaction, misunderstanding of religious and respect, under knowledge of
nutritious and poor description etc. The problem contexts are wide involved from
global perspective, till within a living community, within an institution until offering
a specific product or service. There are many people who fail on establish a
competitive position, parts of the reasons are inadequate considerations. In fact the
consideration such as a breakthrough or better version of product or service,
implement a marketing strategy to an undefined target segment, bad industry
relation with bad debts, leaving of key employee due to stretching of resources etc.
A systematic way to outline burning problems begin from macro view of
environment, which back to school PEST terminology, political, economic, social and
technological issue in Ireland.

As far as concerns, Irish Free State is a democratic country and there is referendum
on selecting TDs to pass the bills and legislations from House of Oireachtas. Every
citizen in this country has rights to participate, all details and context within Irish
constitution. Until recent, there are still many problems and issues have not been
solved whilst people do not feel much protection as before such as social welfare,

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Enterprise and Operations Food Business Feasibility Study

employment, taxes and unreasonable charges such as USC aka Universal Social
Charges, water charges etc. Disputes are arose and Michael Martin TD has stated
that ‘there is nothing to compromise until every things is being compromised’ and
the statement become hard to tackle because it is complex and involve many
institutions. However the problems have been delegated to local authority and they
started to collect water charges by letter which the cost is used to improve the
watermains, sewers and maintenance of water treatment plants. The water charges
issue has been broadcasted e.g. Claire Byrne show. TV studio provides a stage to
public who is allowed to share his view. As a result, there are two thirds of audiences
who does not want their water charges back. The political factor dominates policies,
implied the health and safety rules, enforcement of legislations etc.

An article from Irish time has stated that self employed people are disadvantages
from Irish tax system. From OECD report 2014 suggested that 17.4% of Irish self
employed which more than 16% average in the rest of Euro countries. The
percentage has obviously declined back to the time of 1990s which covered almost
quarter of Irish worked force. There are some reasons behind of declination of self
employed, not only from economically slump in mid 2008. Self employed who work
overtime but the policies does not treated fairly as same as PAYE employees. Self
employed who earn more than €100k will pay the top rate of income tax although
there are only contribute a smaller margin of revenue of €62 mil a year. It seems
like impose a penalty on entrepreneurship that would restrict the growth of new
enterprise. Again, from Irish tax system, self employed people does not allow to
receive tax credit same as the income from rental of property and investment
income. Those people also disadvantages from social insurance contributions. They
pay more money than ordinary worker i.e. €210 per annum of income tax from PAYE
verses €1610 per annum of self employed person even they have same level of
revenue. As a consequence, many people would likely to enter new work force
rather than working for themselves because there is indeed has more social
protection and less tax burden on the shoulder. Changing in political factor such as
taxation will impact the relevant industry tremendously, such as changing in
legislations.

One of the interesting on Economical factor links to Irish market that from CSO
statics which pleaded that a growth of 26% on Irish economics (RTE business news,
2016). The predominately facts are purchasing of new aircraft, new migrants, and
entry of foreign equity into rivalry. Nevertheless mostly Irish people do not feel any
advantages because they have to burden the pressure from paying back of loans
and mortgages. One of the opposition TD who denied that the CSO has provided an
optimism economics numbering but also mentions that people do not rely on the
value. There are also found limitation of population number (approx. 4.7mil) and

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Enterprise and Operations Food Business Feasibility Study

they seek for economic growth by transforming innovation ideas to viable business
opportunity. In past majority of Irish were agriculture background and more self
sufficient but also depending on produce raw farmer products such as foods and
milk products. By enhancing most rural business, it could be turn up a tourism ideas
by improve current facilities and cooperate with local authorities. Upgrading the
hotel facility, catering, teashops, clubs and traditional music bars will attract visitor
staying in a small developed town such as Dundalk.

After economic depression, banks or financial providers have tied up their belts to
provide loans because afraid of bubbling and rising of property price. Recently a
ground breaking news of BrExit happened on 30 June in United Kingdom. Once the
referendum reveals and roughly 51% of population has voted exit and this leads the
resignation of David Cameron MP. On the other side Brexit has dragged down
Sterling pounds overnight and been devaluated from €0.77 to €0.81 into £1 .It does
mean that Irish products are hard to sell to British, it is indeed a nightmare of Irish
businessman who will pay their stock through their nose. Therefore this is an issue
which Irish businessman need to be conscious before invest on a new project.

Social demographic has evolved dramatically since there are more migrants surge
into urban area such as Dublin the rest major towns. The rationale behind is looking
for a saver shelter, while a number Islamic extremists took over their hometown and
started to build up their military commissary. As far as concern, their initial aim is
about seeking for equality, which means in their Islamic bible that they are not allow
to have gambling, nightlife, Islamic women must wear headscarf, no alcohol etc.
Couples of the Islamic countries as UAE, i.e. United Arab Emirate, or happen in
Dubai, some of ultimate rich men do not obey their religious rule and this trauma
keep happen over times, civil war never rest in most Middle East countries. Due to
this reason, there is a rise on population since migrants outside EU countries are
looking for better and simple living. However, most migrants have serious language
barriers and they could not even order a sandwich and they are in trouble and
hunger because they are unlikely to get employment. A small number of migrant
they do not have adequate cost of living, they create social problem, such as
robbing, assaulted pedestrians at night, vandalism, trespassing and the phenomena
getting worse and out of control. Hence the goal for being entrepreneurship is
create more employment in order to stabilize social problem which is acute.

Emerging of apple products and fast broadband become leading market a decade
ago which nurture sophisticate, savvy and young consumers. Application of online
marketing and social media has become more influence than traditional advertising
such as newspapers, magazines, billboards, flyers, brochures etc. A competent
marketer and their job include about providing relevant and trustworthy

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Enterprise and Operations Food Business Feasibility Study

information. Typical example a car showroom, sales reps on duty will introduce
brand new car inside out, even though they are under pressure as commission
basis. Nowadays most people can do online shopping and do survey to find their
favorite clothes and cosmetics. Discounts will be credited to online customers
because it will reduce numbers of retails shop and therefore it will bring down
overhead cost and more profitable.

Takeaway restaurants are not a new business and in the old time people can order
their foods through phone once customer has a menu on their hand. Few years ago
there is Justeat.ie provide a business and customer interface which make online
takeaway and billing easier. An intermediate business niche is found and they could
earn extra revenue nearly 24hours a day because the program is running through
automatically. POS machines as available on major fast foods restaurant McDonald,
KFC, Burger Kings etc. will also let the business easier and less conflicts while
receiving cash from customer. The system is purchased and it becomes a
replacement on handwritten receipts. A big touch screen will record the customer
order as at the same time it connects to kitchen and staffs will be instructed as the
paper shown.

Newly improved technology requires of countless time, collaboration of laboratory

staffs and commitments. This is absolutely not a single person job. Lots of
experiments and test need to be worked out beforehand and there is no guarantee
that it would success. This is a process called Research and Development. R&D
where come to food and drink, is about inventing a new way to prepare recipes and
the method to prepare and garnishing. This would make it more aesthetic and class.
Once a new innovative culture has been developed, it would attract tourism and
enhance the local economic. Constantly creating a new way to delight and entertain
people, it will eventually develop healthy economic growth and more jobs created.

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Enterprise and Operations Food Business Feasibility Study

7.0 Spell out opportunity

A brief PEST analysis on previous chapter has illustrated some evidence on the need
to protect social stability by offering more employments, shortage of variable range
of multicultural food. Discrepancy food business is viable where the customers are
known and provide adequate support on business. For example the customers act
as audiences, the speaker must have speech with is relevant to their subject and
also bring benefits at the same time. In fact, while walking on Dublin streets, it can
be seen that there are migrants all over the world who set up foods stores such as
Indian stores, Punjab stores, Muslim, Chinese stores, Korean, Japanese, and etc. As
we know Muslim cannot take Pork as their meal, by offering non Halal which means
no pork is found on the meal. This would create a unique selling point than other
competitor who does not have this particular knowledge on respecting Muslim
people.

A gig from Today FM Anton Savage who has demonstrated a thousand years old
egg, which is one of the Chinese platable dish. The egg is totally black in colour and
it is fermented in jar for few weeks. It tastes like jelly and has a strong aromatic
flavor which some people might have their blood pressure up. They had a joke that
people will die after eating that smelly, mysteries black egg. The point is people
who have enough curiosity and brave to discover something new and like it will
create opportunity on their finding. Likewise, a new idea need to be informed and be
broadcasted to ensure mass audience has awareness on the particular fact. In
business school, an acronym has been taught AIDA lady, which means Awareness,
Interested, Desire and Action. This is not a big plan but it is also a proven
terminology that will work on marketing plan. One of the example by utilizing
broadcast media.

Health issue from packaging, premade food has become more convince for busy
people. While some people would prepare their lunch overnight but some people
does not have health awareness who will prefer oily cheap food such as chips on
snack bar. In small town, it does not have great number of customer who generates
greater scale of revenue. Generally this would belong to family business. This
success story happens in Howth which near to Dublin, a chain store such as Bestoff
family who spot the opportunity on tourism local development and under support
they founded Bestoff fish and chips, Bestoff market and people who visit here would
say Bestoff is on anyway here. While visiting and purchased their food product fish
and chip, staffs are well organized, they used ticket order system, and customer

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Enterprise and Operations Food Business Feasibility Study

could wait 15 to 20 min for their food. Packaging is stylish and well designed. It is
indeed a luxury to have a lunch beside the pier and with beautiful landscape.

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Enterprise and Operations Food Business Feasibility Study

8.0 Category of market

Quote from industry expertise, ‘if you attempt your product to target all customers,
you will target no one’. By manufacturing a piece of hand tool, that inventor has to
make sure his product is useful to specific people or it has an aim to improve the
way of doing it to make their life easier. These are such as can opener,
transformation of mechanical can opener to electrical driven, Dyson bladeless fan
and vacuum cleaner, hot steam cleaner without using of detergent etc. All of these
are household product and the number of sales is predominately relied upon
number of houses. Some useful information from CSO will give a forecast GDP aka
gross domestic product while taking account of marketing cost whether it is worth
to enter into market. The procedure is just complex while taking a product displayed
on shelf, it must comply legislation, health and safety, patent and right and the
other unforeseen issue such as fraud.

As mentioned earlier, niche market has different category than mass market. Food
business is belonged to mass market. Only an outstanding specific and unique
recipe can only beat large scale food business such as restaurant and fast foods.
The chance will win is only understanding the community daily routine, know the
throughput, able to cope with the peak time and such. The food market is wide
enough because it is a need to people, a trendy and stylish food business will
impress new emerge customer. Food market is everywhere and any people can
assess and purchase food easily. The effort need to be done is attracted the people
by pre- inform and pre- survey by set out some relevant questionnaire. The results
have shown that adolescence and young adults are more interested in new
innovative meal and they are more vulnerable and influence by new innovative
ideas and products.

The concept of my idea is about providing a fast food menu, which is Chips and
Sausages with homemade Thai Sauce and Red Curry Sauce. Families who live with
grandparents they know that older people and people with illness they cannot afford
heavy taste meal and greasy. While eliminate possibility of whom will not be
interested, the potential customers are obvious, and they are adolescences, young
adults and people who are run out of time for preparing lunch, the busy employees.
On the other hand, younger generation has more adaptable to new environment,
full of curious and they cannot wait for something new and special. By using proper
channel of inform, such as broadcasting media with honestly, in order to raise their
awareness of new products.

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Enterprise and Operations Food Business Feasibility Study

A small catering business has relatively definable customers because we live in

same neighborhood. It serves up a community and therefore we know each other.
We all have friends who will tell what will happen around our place for example
Mace will offer some new colourful ice pops and sweet treats for summer weekends.
A new Japanese cruise restaurant opens at Park street which offers Sushi and Bento
aka ricebox. Often eating outside with friends will give a more complete picture on
what is happening on surrounding and this is so called observation.

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9.0 Competitor Analysis

Food business has an enormous range of competitors because it provides the need
of people life. Food industry does not have patents or copyrights and almost every
food business can be copied from one to the other. It is also reason why this
particular industry has vigorous competition, most migrants can survive with
cooking their own foods because they will feel more protection and shelter. In
traditional business objective they are more focused on profit maximization for
owners, they would stretch their resource by underpaying their employee, ignoring
the local legislations and avoiding paying liquor license, without having adequate
health and safety workplace and having a fake bookkeeping records for their
exclusive accountants in order that the owner can bring down their selling price and
vault past its competitors. However, as we know, a small self employed business
can gain profit before taxation.

Competitors are quite obvious and should everyone in town know where they are.
For examples who live in Dundalk who know where McDonald is, they almost know
the exact location of Burger Kings, KFC, Subway, Winsor Bar, Jade Garden, Belly
Teahouse etc. They are visible and these are the place we hang out with friends,
chitty chat and sharing the moments. The neighborhood is so small and when a
restaurant has been inspected by health officers and closed down for renovation, a
famous restaurant has moved out from Dundalk because of expansion on its own
business. People who are conscious on the stories and talk of the town, they almost
know everything what is happened around, and this is so called monitoring of
business environment.

By completing a competitor analysis will help the business creating competitor

advantages. There are many measurements to determine a success business such
as sales turnover, number of employees, market shares for large business and so on
capital employed. Capital employed is an accounting ratio analysis terminology to
measure the long term finance of the business and its assets employed. Beside,
competitor analysis will improve the business performance through understanding
position of major competitors. In this context, we explore the competitors in three
different ways, which are direct, indirect and future competitors. Used together, the
various categories give a more complete figure of the strength before starting a
business.

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9.1 Direct Competitors

Direct Competitors can be identified as for those who does offer the similar food
menu or service to the business itself. Apparently these are restaurants and fast
food catering such as McDonald, KFC which has been addressed beforehand. Head
to head competition is vigorous for the rivalry but instead it provides a wider range
of selection and choice. To stand the own business out of crowd, the favorable way
are providing unique service or food menu, having some creative strategies such as
outstanding visual design, on foods, sustainable green packaging, promotional
tactics as building up slogan etc. Without any doubt, these strategies need an
adequate budget to justify whether return on sales is able to breakeven.

In traditional small business, the owner from craft background may not have
sufficient education support, they are more emphasized on maximize their profit by
cutting cost which is nature of business objective. Approachable strategies to stay
ahead from competitors is by using the advantages from social media such as
Instagram, Tweeter or establish a Facebook pages in order to catch the younger
audience attention. While recruit advisor and competent promoter may save some
efforts to research and explore the potential market, highly competitive industry will
lead to saturation of market need and eventually a small business will fail due to
limitation of economic of scale.

9.2 Indirect Competitors

In food business, indirect competitors are those who are offering a similar service.
The proposing idea of establish a small food business and indirect competitors are
Mace, Spar, Newsagents, Food Carts, vending machine etc. The purpose of
observation on these competitors is because they might have influence on market
share or in simpler term is take some pieces of a cake. These particular competitors
are also vital to take into account on analysis because they also attempt to solve
customer problem and providing their need. To understand more their need the
person should act as a role play and put into their shoes, take some survey on
reception desk and be more sociable will help a new business stand firm because
able to mirror himself.

An experienced staff knows the productivity or throughput during a busy business

time inside out. The reason is they are required to anticipate the yield of a business
and conduct forecast plan, they ignore small or indirect competitors. The other way
is they do not have time to know who the outside competitors are therefore they
have made stubborn decision such as invest their money on overpriced marketing
plan which give sounding alerts and awaking their potential competitors. In other
word, a more visit to local store, the more experience will get.

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9.3 Future Competitors

Future competitors has minor affected on food industry because most employees
are looking for financial need in order to survive and pay bills. However in high tech
industry, future competitor seems like hidden threat because breakthrough
technology become publicity will dominate the market. Over past decades, people
ate the exact similar foods such as bread and butters for breakfast, sandwiches or
salad for take away and steaks for dinner; the food layout do not change much and
people will not run out of foods. Technology and software development has
tremendously evolved and manufacturing industry has to make sure the machines
in factory and warehouse are all up to date and contribute efficient function.

Front end employee will easily lose their job in future because technology offers
substitution of manpower. For example Tesco has installed self kiosk machines
therefore these would need lesser people required at counter. Future competitor
does not need to be a man person, it can be machine who replace the whole
operational practical work.

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Enterprise and Operations Food Business Feasibility Study

10.0 Preliminary outline of start-up cost

An initial financial budget needs to be prepared by under list the several costs which
are relevant to this business venture. In the state of being unemployed and a fresh
entrepreneur have few thousands grants sit on their bank account. In other words,
they lack of financial support. To attract most potential investors, they can either
lend their business or having cooperation with existing business aka joint venture to
achieve win win position. The preliminary cost must include the rent of premise,
purchasing fitting and fixtures, marketing cost, employee wages, license cost, cost
of advisors such as solicitor, accountants and other miscellaneous costs. From an
experienced catering manager word of mouth, a safer budget should available this
particular business account should have approx. €50,000 and usually these money
are inherit from older people.

The following list has been illustrated below in order to provide a circa amount of
money required, these are references and may be changing over time. (Ignoring raw
food supply)

Rent for Central Kitchen €650 per month

Mobile Van (Second Hand from Donedeal.ie) €25,000 per unit

Fixture and Fitting (Exclude design) €6,000 Once off

External Design and fabrication cost €5,500 Once off

Trading license cost (max) €1,200 per

annum
Business Insurance €2,500 per
annum
Van Insurance €1,500 per
annum
Marketing budget (printing brochure, menu, fees etc.) €5,000 Once off

Employed 1 staff €1,800 per month

Solicitor fee €1,000 Once off

Accountant fee €1,000 per

annum
Electricity cost €200 per month

Gas, Energy cost €1,500 per

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Enterprise and Operations Food Business Feasibility Study

annum
Water charges €750 per
annum
Waste disposal €1,200 per
annum
Telephone bills €55 per month

11.0 Overall Viability of Business Idea

Many success business stories are novel however the result is enormous. The food
industry has come to market saturation if the same business model does not
change to suit savvy customer. The marketing expertise or journalist is good
communicator who has a duty to provide the honest and trustworthy information
based on their research. Acceptance of foreign culture has become challenging
since they may have possibility not being welcome to enter local community.
Negative social problems arise which involve burglary, vandalism, trespassing and
people who has language barrier seem no being control on these risks. Instead of
establish a secure business, a collaborative and organized approach will combat
these social problems and promote business growth.

Financial support has played important role on sustaining a business and it can stay
safe with adequate cash flow without profit. Massive homework such as anticipate
and monitoring cash in and out but also do need to prepare a sum of precaution
funds while encountering the bad period. People in debt are the people who do the
real business. This would also give a young entrepreneur burden a lot of pressure
which ensure this will provide enthusiasm on business idea. A new venture failure
because lack of experiences and insight through the particular business. For
example, I have obtained a provisional driving license and going to purchase a
second hand vehicle from my friend. A 14 years old Volkswagens Golf with offering a
price of €600, I did ask my classmates and they told me it does not worth the price
because without knowing the background of car and also a hidden cost for car
insurance, NCT, road tax and vehicle maintenances costs. Eventually I did not buy
the car from my friends because it would end up pay through the nose. Without
taking a full picture of situation, it would be car crash at last.

Details of the business idea such as operational plan are not well developed.
Industry training provides the skill set required to ensure the higher quality of
delivering. Competitive advantage is more than providing a top quality, caring
service, breakthrough innovation but they are more focused on social responsibility
and moral issue while taking business decision. Brand name of the business should
be simple and easy to connect to relevant business, therefore maintaining a good

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Enterprise and Operations Food Business Feasibility Study

reputation by focusing on creating benefits to customers and all stakeholders. To

obtain those operation experiences the best is to work into relevant industry

The future perspective of this particular food business is able to bring the different
people together and enjoy the foreign food without taking prolonged flight to other
countries. By taking this idea it would promote the local tourism and support
community business, bring a new wealth into this country and not being isolated as
‘an island’.

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Enterprise and Operations Food Business Feasibility Study

12.0 Appendices
The appendices chapter has aims of reveals more details for who are interested in
further reading. In a simpler approach it shows a more details such as bolts and
nuts on operating a food business in Ireland. In most under developed country to set
up a small food business i.e. food kiosk, food carts are much easier because they
can almost neglect the regulatory issues and hot climate which allows people to
have cash business at outdoors. The business format is entire different from
country to country therefore an advisory is important while prepare these
paperwork.

Appendix I
From the website of FASI aka Food Safety Authority of Ireland, they provide a
framework of starting a food business, a screen shot is taken and attached below,

Figure 4 Snapshot of FSAI webpage

The reason of not taking all section and attach to this feasibility report is because
the contents are far away from business contexts. As the Wendy Kennedy (2006)
has postulated that any report should be aware to the readers in order that they can

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Enterprise and Operations Food Business Feasibility Study

understand. Pervious educational background such as taking a subject of Home

Economic has become a foundation to catering world.

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Enterprise and Operations Food Business Feasibility Study

Appendix II – Highlights of Business Plan

Business name: Jeff’s Kitchen

Business location: Market Square, Dundalk; Main Road, Blackrock;

Town Centre Carlingford

Business form: Sole trader

Business activity: Providing healthier option of Chinese fast foods, e.g. 3 in 1, such as Chips, egg
fried rice with curry and with any soft drink especially lunch time from 12pm to 4pm.

Unique Selling Position: Mobility of the food truck itself plus substitution such as, Potatoes Chips
to Sweet Potatoes, Rice replaces with Brown Rice, Curry powder replaces to Curry Paste.

Aims: The aim of the business is to provide an adequate income for myself during the state of
being unemployed.

Objectives: The sales of 100 meals for each day, and the gross profit margin of 30%

Market size and growth: As the usual weekdays on downtown, there will be approximately 100
pedestrians will bypass the street for each hour. However, numbers of secondary school students
are limited and roughly 200 people on time.

During the weekend, truck will be driven to any stadium with specials event i.e. football game, horse
racing, carnival, Octoberfest etc. And it is an opportunity to introduce the business itself. There
will be thousands of people on the stadium.

Competitors: Direct competitor shall be offering similar service e.g. SingLee food truck,
McDonalds, KFC, Subways, Burger Kings, Café, teahouse etc. Indirect competitors will be convince
store e.g. Mace, Spar, newsagent, petrol station etc.

Own business: Strength – direct interaction with customers and able to identify their need.

Weaknesses–Due to one-man operation, the workload will imbalance, small customer based and
limitation on cash flow.

Competitive advantages: The enthusiasm of personality behind research on preparation of meals,

remains a mutual relationship with the existing suppliers, focused on quality orientation.

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Enterprise and Operations Food Business Feasibility Study

Proposed customers: They are anticipated as secondary school students during the lunch time at
Clanbrassil street, Dundalk during weekdays. There are a small percentage of employees from
office and industrial estate and could get some loyal customers.

Advertising and promotions strategy: Occasional discount on food, get advertisement on local
newspaper, have a slogan and advert in radio station, having catching eye design and well displayed
on packaging and truck exterior and interior design. Design and print out flyers and broachers and
envelop into local newspaper or related magazine to get promote.

Pricing strategy: As offering special products or meals, the price is slightly higher among the
other. Usually the price will depend on economy of scale, as there is a commitment to keep the
foods fresh, tactics will be distributed the raw materials to the nearby restaurants who is urgently
need because a huge amount of stock will be preordered in order to get the lowest price.

Premises: As the business is focus on outgoing, the location or shop might not need beside any main
street, i.e. the shop beside the main road has more expensive rent. A premise is mainly a place to
prepare foods and storing raw materials, and the premise must have a carpark place.

Equipments: Cheap equipment and utilities can be obtained from liquidation sales, second hand
markets, or a large kitchen warehouse. However, for a long time use, a new set of equipment are
more suitable because they have longer using life.

Key peoples (desirable but not necessary): drivers, food suppliers, experienced kitchen staffs and
public relation personal.

Method of preparation: The sweet potatoes are peeled and cut into wages about 2 inches size and
baked into oven with approximately 20 minutes. Each preparation can up to 10 serving. Curry sauces
can be prepared by boiling water on pot, add 2 spoons of curry paste and stir until the sauce
become smooth and taste. To prepare a portion of egg fried rice, there is a rule of thumb, 2 cup of
rice with 1 cup of water and put it into a rice cooker. After 20 min the rice is cooked and left it
cool, fried with a heap of oil and eggs. Eventually put some salt and pepper to season.

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Enterprise and Operations Food Business Feasibility Study

13.0 Bibliography
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https://www.entrepreneur.com/article/220060

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http://www.bordbiavantage.ie/wp-content/uploads/sites/5/2015/01/BB-FoodMarket-
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Anonymous (2014), Industry Analysis and Competition, Porter’s 5 forces

https://www.marsdd.com/mars-library/industry-analysis-and-competition-using-
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Anonymous (2015), Companies, Their duties and powers, A quick guide, Office of
the Director of Cooperate Enforcement

http://www.odce.ie/Portals/0/Quick%20Guides%202014%20Act/COMPANIES%20Lo
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Anonymous (2015), Notes for Marketing Strategy, DKIT Business School

Barry Brindley et al (2008), A level Study guide Business Studies, Pearson

Longman

Catherine McCloskey (2016), Notes for Scenario Planning and PEST analysis, DKIT

Ciara Sutton et al (2012), Crafting and Executing Strategy, McGraw Hill education

Constance Cassidy (1996), The Licensing Handbook, Round Hall Sweet and
Maxwell

Cooney and Murray (2008), Entrepreneurship Education in the Third Level Sector
in Ireland, Institute of Minority Entrepreneurship Reports

http://arrow.dit.ie/cgi/viewcontent.cgi?article=1001&context=imerep

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Enterprise and Operations Food Business Feasibility Study

Cormac Kearney (2013), A Study on Social Media, Its role in Changing Consumer
Behaviour and Its impact on Marketing Strategies on the Sportswear Industry in
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David Brindley (2015), How one Korean Taco Food Truck Launched, National
Geographic Magazine May 2015

http://ngm.nationalgeographic.com/2015/07/food-trucks/brindley-text

David Weber (2012), The Food Truck handbook, John Wiley

Jurgen Wolf (2009), Marketing for Entrepreneurs, Pearson Education

Kathryn Cormican et al (2010), The Accelerating Campus Entrepreneurship (ACE)

Initiative, Industry and Higher Education

Lorna Freeborn (2010), Design for Living 3rd Edition, Gill and Macmillan

Michael E. Porter (1980), Competitive Strategy, The Free Press

Nelson Thornes (2001), Food Preparation and Cooking: Core Units 2 nd Edition, City
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Paul Emerson (2002), Business English Framework, Cambridge University Press

Roche Mareid et al (2013), New Studies in Business, CJ Fallon

Roy Hayter (1997), Food and Drink Service, Mac Millan

Rus Slater (2010), Dragons’ Den: Start your own Business, Thameside Media

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Butterworth Heinemann

Steve Mariotti et al (2012), Entrepreneurship and Small Business Management,

Pearson Education

Wendy Kennedy (2006), So What, Who cares, Why you, The Inventor’s
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www.wendykennedy.com

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Enterprise and Operations Food Business Feasibility Study

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