Feasibility Study to Establish McDonald's Restaurant in Cyprus

CHAPTER 1

INTRODUCTION

In the past few years, the Turkish Republic of Northern Cyprus witnessed a significant increase in the exterior and interior investments causing a rapid growth of its service and manufacturing sectors. This increase affected sectors such as tourism, real estate and construction, and higher education. As a consequence, this increase caused the local population to be more stable and steadily increasing, and attracted more foreigners to stay in North Cyprus as tourists, business men and women, students, or even as labor force. This change in the society's structure and size consequently had to change the structure of the market, whereby the market now has to stand-up to the new levels of demand.

In order to cope with the market changes, this project will be concerned with the study and analysis that will be done by the project group to construct a McDonald's Restaurant and cafe shop in Gazimagusa city.

This topic was chosen basically because of the lack of such facilities in the city of Famagusta which is noticeably increasing in population, thus increasing in size and high demand of fast food since the city is full of students and the high demand for a quick good meals. So, it was found suitable to construct a McDonald's service facility that will be able to serve the increasing number of population in the city, and take place in the food services field. This facility is intended to be the largest of its type in the city to meet the preset targets, in order to do that the costs and profits must be well studied and chosen to obtain an acceptable share of the market.

CHAPTER 2

PROJECT FRAME AND INITIATION ANALYSIS

2.1. Service Conceptualization

The McDonalds' Restaurant is intended to be built in Famagusta will have two major sectors. The first sector will be the food service facility; this facility will be able to offer food services and the sandwich preparation in the kitchen after the order is taken by the tellers in the order bank. In addition to the services mentioned the service center which is the kitchen to receive the order information from the tellers electronically by the computer to ensure the quality and the speed of the service. This service center will be designed to cover all possible foreseen types of demanded services which is offered by McDonalds' brand product in the region, for the purpose of customer satisfaction and convenience. The service center will only be able to handle food preparation from grilling and making the sandwich to packaging step.

The order bank where they receive the order from the customer will be handling giving out the ready product from the kitchen to the customer and getting the payments since all McDonalds' services is a self service type the customer has to collect the order from the order bank "counter" and move to the dining area " the lounge".

The second sector of this McDonalds Restaurant is the dining area where the customer will sit and eat his meal. This dining hall will consist of two parts, sitting area and children's play hall. In addition to the free wireless internet connection will be provided. Then the toilets section for ladies and gents. The Potential costumers might be local citizens, college students, investors, tourists' and offices.

2.2. Data Gathering and Sources

After establishing an initial idea or thought of what McDonalds' Restaurant will be like, and its functions and duties, the second step, which is one of the most crucial steps in the process of completing the project, is to gather relevant data and information for the purpose of designing a reliable project based on real life inputs. The closer the information is to reality and the more it reflects it, the better the outputs of this project will be. In the pursuit of useful relevant data, the project group made a number of visits to food service facilities resembling the project's facility, Famagusta's municipality, the district's authority offices and taxation department, Famagusta's police station, construction and real estate offices, and burger city facility in Famagusta.

The visitation that was made by the project team helped us to estimate the market share and the initial construction cost and the average cost of the utility services such as electricity, water, telephone and internet services cost.

The current estimated statistics shows the market share of the local restaurants which they will be the main competitor to the new proposed McDonalds' Restaurant illustrated