[INSERT YOUR NAME]
[INSERT YOUR INSTITUTION’S NAME]
Feasibility Report for the Establishment of an Internal Cafeteria at McGraw Hill Financial, New York
Purpose: The Establishment of an Internal Cafeteria
Problem
The staff at the four companies of McGraw-Hill Financial take their meals mostly from fast food restaurants in downtown Manhattan, New York. There are three major problems with this scenario. First, the trip to downtown and back is time-wasting. Employees have to take an elevator from the office to the ground floor, then a taxi to the restaurant. They then have to queue at the restaurant and wait for food to be prepered, before they can take the trip back. Some may choose to have their food delivered at the office, but this does not solve the second problem, which is health. Fast food restaurants do not prepere food with a health focus. The third problem is the cost. Fast foods may be cheap, but employees who want to choose a healthier meal may be hindered by the high cost of healthy food in downtown New York.
The Solution
These three problems may be solved by establishing a cafeteria within the company offices. The cafeteria will prepare and serve food from within the office, which will eliminate the need to leave the office for a meal. The cafetaria will also be focused on a balanced diet, which will serve to keep our colleagues healthy. The cafateria will share rental costs with the office by ratio of space occupied, which will bring down operational costs and ensure that prices charged to employees are fair.
Time Schedule
The cafeteria will utilize the kitchen space for cooking and the space between the kitchen and the store for the sitting area. The process will begin with the hiring of a cateress, who should then assist in hiring of three cooks and three waiters. This should take about two weeks. The process of purchase of kitchenware, equipment and furniture will begin immediately and should be over in three weeks. This should give the new staff one week to prepare for equipment set-up. The equipment should be set up within thre days after delivery. Meanwhile, tenders will be advertised for supply of raw materials and a sucessful supplier should have been selected three weeks from now. The staff and location will also require to be licensed by the authorities, a process that will take three weeks. The whole process should take five weeks.
Cost and Profitability
There are several things that need to be purchased. These include cooking equipment, ventillation, refrigeration eqipment, tables, shelves, counters, display equipment and a point-of-sale system. There are also licenses that need to be paid for. In total, the cost is $105,000. The operational costs include payroll, food supplies, commission to payment services, taxes and rent, and shold be about 90% of revenue. The profit margin is therefore 10%. Profitability is expected to incease as the economies of scale increase.
Conclusion
The cafeteria is a feasible idea because it will not only be able to solve the problems currently being faced by staff as they seek meals from outside, but it wll also contribute towards profitability of the company.
References
Farrell, M. (2007, February 2). How To Run A Restaurant: Start-Up Costs. Forbes. Retrieved June 26, 2013, from http://www.forbes.com/2007/02/02/visa-american-express-ent-manage-cx_mf_0202fundamentalscosts.html
Public Works and Government Services Canada. (2012, February 7). Guide and template for the Preparation of Feasibility Reports. Retrieved June 26, 2013, from http://www.tpsgc-pwgsc.gc.ca/biens-property/sngp-npms/bi-rp/livra-deliv/faisa-feasi/guide-eng.html
RestaurantOwner.com. (2013). Industry Survey: How Much Does it Cost to Open a Restaurant? Retrieved June 26, 2013, from http://www.restaurantowner.com/public/811.cfm
Wikipedia. (2013, June 5). McGraw-Hill Financial. Wikimedia. Retrieved June 26, 2013, from http://en.wikipedia.org/wiki/McGraw-Hill_Financial
