This paper will focus on feasibility study of a restaurant in Las Vegas which is one of the most populous cities in Nevada (a state in US). Its objective is to evaluate whether the implementation of Elegance Restaurant would be feasible. The main reason for evaluating the proposed project of a restaurant is to take advantage of the growing demand for leisure in Las Vegas as it is an international renowned destination for tourists. Similarly, the city is primarily famous for; fine dining, gambling, nightlife, as well as shopping that make it the leading cultural and financial hub for Southern Nevada. Another reason for Elegance Restaurant’s feasibility analysis is to exploit the potential of the hospitality industry in Las Vegas through provision of quality and affordable accommodation and food services.
The rationale of the feasibility study is to investigate the current issues surrounding the proposed business environment. Additionally, the study aims at identifying the opportunities, strengths, threats, as well as the weaknesses of the proposed venture. The study also includes the resources available for the business and its capacity to utilize them in the most efficient and effective manner. Growth is a key objective of any business enterprise thus for a business to be termed as feasible it should maximize on its revenues and strive to cut on its costs. Therefore, the success of any business will solely depend on the feasibility analysis aimed at determining the path expected to be undertaken by the proposed venture (Ryan, Page & Aicken, 2005). Hence, the study should be comprehensive and well researched by business experts to ensure that all the requirements for a successful business are included.
Recently, the hospitality and tourism industry has grown significantly in the United States with numerous tour ventures being established. There has been an increased demand for leisure activities in this industry due to changing lifestyles of the US population. Customers’ needs, tastes and preferences for quality services have continued to become more complicated (Saleh & Sammer, 2009). Therefore, this calls for the need for any tour venture in the in the US to establish the needs for both the local and international customers. Similarly, fast-food chains have increased considerably in the US for the last decade. Probably, this has been fueled by the changing life styles for the US population where people are provided with an opportunity to purchase ready food whenever they are late from work or they are too tired to make their own dishes at home.
Therefore, this has increased the demand for the establishment of fast food outlets in most the regions, in the United States. Additionally, due its growing economy, US have become a tourist destination where people from all corners of the world would wish to invest and others generally visit the country for leisure activities such as to enjoy their holiday with their families. Therefore, the demand for tour ventures has increased to cater for food and accommodation services for the tourists (Mak, 2008).
Improved infrastructural development in the US has also contributed significantly to the growth of travel and tourism sector. The country is endowed with vast resources that demand for any array of transport means that includes road, sea, railway and air transport. Hence, tourists are able to travel within the US with much easy, as well as other parts of the world through well established transport network in the country. Hence, this has increased the accessibility of most tourist destinations in the US. Similarly, advancement in technological innovation especially in information sharing has increased the need for travel. Potential investors can now access information on investment opportunities across the world. Similarly, through the use of online advertisements, businesses have continued to boom across the globe.
Currently, businesses are able to advertise their products and services through the use of websites, as well as on the social media. This enables the potential customers to get all the information they need on the quality of services offered by a particular business thereby increasing their urge for travel to enjoy unique products and services. In addition, the prolonged period of security and political stability has increased the United States’ image to become a business hub. Therefore, the current economic, social and political stability has favored the establishment and growth of tour ventures.
3.0: Description of the Industry
The proposed business venture by the name Elegance Restaurant is the hospitality and tourism industry. The business targets to provide food and accommodation services to the tourists visiting Las Vegas which is one of the most populous cities of Nevada. Some of the key attractions for the tourist in the city include casinos, as well as fashionable restaurants. Most of the casinos and restaurants in the city are established in the downtown area of the city. Therefore, the region has become a major tourist site due to the existence of several gaming industries thus favoring the growth of Elegance Restaurant. The growth of the tourism industry in the mid nineteenth century and at the beginning of the twentieth century resulted into significant changes in relation to leisure activities, urban space and the entire perspective of the industry. Although, travel agents, as well, package tours started between 1870s and 1880s, most of the entrepreneurs especially the hotel keepers and railway lines agents had discovered the future prospects for the booming industry. The establishment of steam-powered trains in the 1800 facilitated the movement of tourists from one region to another (Baker & English, 2011).
Prior to the evolution of air transport in the US between 1945 and 1949 the industry grew at a considerable rate. In the mid-twentieth century, commercial airlines advanced from 28 travelers’ airliners to 150 travelers’ jetliners. During this period, the US air travel transformed into a booming business for vacationers and business people. According to the research conducted in 2004, the tourism industry in the US was rated as the second chief source of employment in approximately 29 states absorbing 7.3 million people into the labor force. In 2013, the country realized net revenue amounting to $10.9 billion dollars from tourism activities (Arthur & Collins, 2009).
4.0: Products and services
Elegance Restaurant will be unique from other hotels in Las Vegas as it intends to offer exclusive menus, catering and accommodation for both the local and the international clients. The project will involve construction a prestigious hotel in the downtown region of Las Vegas due to its fame for fine dining, gambling, nightlife, as well as shopping activities that make it the leading cultural and financial hub for Southern Nevada. Its menu will include a wide variety of traditional and modern delicacies in order to adequately meet the needs, tastes, as well preferences for its different customers (Cooper, Floody & McNeill, 2000). Similarly, it will provide its customers with a customized menu to allow them order for their most favorite dish. It will also offer entertainment services to its customer that will include live performances from local bands in the area. This is considered as a unique strategy for the restaurant since other hotels in the area do not offer such services. Elegant Restaurant will cover an area of about 4000 sq m and the following facilities will be integrated with the project’s framework.
- •Reception and bar
- •Two conference rooms
- •Swimming pool, steam bath and fitness club
- •Pool bar
- •Kitchen area, equipment and machinery areas and a store
- •Entertainment area
- •Parking area
The anticipated restaurant will be located at the city of Las Vegas which is a renowned place for casinos and prestigious hotels. Most these facilities are located at the downtown area of the city, which have been a cultural and financial hub for Southern Nevada. Las Vegas is strategically located within Clark County on the Mojave Desert encircled by dry mountains. There are many lawns within the city, trees, as well as other greenery that makes it a suitable tourist attraction centre. Similarly, the city is easily accessible through a network of roads, rail and air transport making it an appropriate tourist destination and business hub (Loucks, 1990).
6.0: Competitive Analysis
Las Vegas has been known for many hotels and casinos for both the local and the international clients. Therefore, the proposed restaurant is expected to face stiff competition from all these facilities in the region (Hong, 2008). However, most of the restaurants were built a couple of years ago hence they lack modern facilities that would meet the ever increasing and sophisticated customer needs. Therefore, the use of modern facilities and expansive area for the proposed hotel is one of its competitive advantages (Nykiel, 2007). Similarly, the hotel will be will offer a variety of menus and quality services, unlike its competitors. Also, the hotel intends to offer its menus and services at reasonably lower prices as compared to its competitors thus increasing the demand for its services.
7.0: Facility Planning
7.1: Accommodation Rooms
The restaurant rooms will be designed to cater for upscale market segmentation and will focus on offering high quality services at reasonably lower prices so as to differentiate itself from other competitors in the same industry, in Las Vegas (Teare, Adams & Messenger, 1992). The proposed restaurant will have around 75-80 standard rooms measuring 25sq m, including the bathrooms. All the rooms will have same facilities and of the same quality. Similarly, the hotel will have five suites with an average size of 60 sq m. The accommodation rooms will be well furnished and they will include;
• Attractive room equipments and furniture concentrating on a stylish design
• The rooms should have sufficient seating facilities and suites are expected to offer additional sleeping capability.
• The bathrooms are expected to be equipped with illuminated magnifying mirror, shower tub, hair dryer, extra toilet, one washing basin and a towel rack.
• All rooms will have entertainment system that includes DVD player, wireless local area network, flat-screen and a telephone.
• All rooms will be equipped with fire safety equipments, mini bar and in-room locker
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