Target Customers
As the number of immigrants from South Asia continues to increase and people become more interested in trying other types of cuisine there will be a market for good, authentic fresh Indian food. Amongst the population we have two well defined target markets, the first is the influx of South Asian immigrants who long for a taste of home and the second target market is the large number of students in Kitchener and Waterloo who eat at restaurants more often and are willing to try Indian food. Based on the primary research we have done, we have developed the characteristics of our target customers. The first dimension is the purchase characteristics of our target customer; on average our target customer spends more than $13.00 when dining at a restaurant . Our target customer eats at restaurants more than five times a month and the most common meal which they purchase when dining out is dinner . In terms of demographics our target customer is most likely between the ages of 18 and 29 and is either a student or a young professional. Both of these customers eat at restaurants more than the average person because they are very busy and have little time to cook. Our target customer is also primarily from South Asia as Indian food will appeal to them as it is what they grew up eating or may be similar to the food where they are from. Beyond on this an Indian restaurant with good, authentic, fresh food will also attract those who enjoy ethnic food and also demand a high quality product and are willing to pay extra for it. In the Kitchener and Waterloo area our target customers are most likely to reside near a University or College campus . To capitalize on their geographical location we wish to place the restaurant near a post-secondary institution as this is where the majority of our target customers reside. Also young professional in Waterloo specifically are likely to live near downtown which is close to the two university campuses. By locating near the area where our target customers are most likely to live they will be able to walk or take public transit to the restaurant which will increase the likelihood that they will frequent our restaurant. In terms of mindset our target customer being mainly students as well as young professionals are people who are very busy and because of this eat at restaurants more frequently than other population segments. Our target customers are also concerned about their health and the environment and because of this demand healthy products that are fresh and respect the environment. They are most likely to live a healthy urban lifestyle and are willing to pay a premium for products and services they feel respect this healthy lifestyle. When dealing specifically with food our target customers will have several purchase motivations. The first will be the quality of the food, they are not looking for greasy unhealthy food, they want fresh quality ingredients. The second motivation they will have is the authenticity of the food, for many of our target customers this will be the type of food they grew up eating. This means that they know what authentic Indian food should taste like and they are looking for a taste of home to feel comforted, so authenticity of the food is key. The third motivation will be the quality of service which was the most important factor in deciding where to eat in our consumer survey. The fourth motivation will be price, our target customer will be concerned with price as they are mainly students and young professionals, however they are willing to pay a premium if the first three motivations are satisfied. We will attempt to carve out a place in the market by offering good quality, authentic Indian food along with excellent service.

Target Customers in the Market Waterloo region is one of the fasting growing municipalities in all of Canada and is in the top ten destinations of arriving immigrants. As of 2011 there are approximately 553,000 people living in Waterloo region over the past 15 years the region has an average growth rate of 1.73% . Of this 553,000, 105,375 people were immigrants and of this population 23,000 are from South Asia . In the past 5 years nearly one quarter of all immigrants coming to the region of waterloo are from South Asia. There are approximately 3000 new immigrants every year and over 700 at the current rate are South Asian . This accounts for a 3.3% rate of growth in the South Asian population every year. The trend would indicate that the rate of growth in new South Asian immigrants will continue to increase as will demand by this segment of the population for authentic food from their country of origin. Our target customers are also university and college students which currently account for slightly fewer than 35,000 students . Also in the past 15 years university enrollment in Canada has increased 57% and last year alone enrollment increased 3.7% . Enrollment at Conestoga increased by 20% in 2009 and during the same period enrollment at Wilfrid Laurier University was expected to increase 5% and the University of Waterloo was increasing the number of its graduate students from 2600 to 8000 over the next eight years . This shows that our target customer base of students is also increasing. Based on these statistics the number of our target customers in our target market is likely to continue growing.

Total Market Size While the number of our target customers continues to rise at an increasing pace the restaurant and bar market as a whole in waterloo region continues to be very strong and for the total size of the population underserviced. In 2010 the restaurant and bar segment accounted for 250 million dollars in sales in Waterloo region which was split between 83 establishments comprised of 57 restaurants and 26 bars . The particulars will be discussed in more detail in the sales forecast but on average this accounts for sales of slightly over 3 million dollars per establishment. As was stated earlier we an excellent opportunity for growth among our target customers which is the 23,000 members of the population who are form South Asia with a growth rate of 3.3% a year. Amongst our other target customers which are university and college students the growth rate is even larger with the number of students enrolled at university’s in Canada alone increasing 57% over the past 15 years and the 20% growth in enrollment at Conestoga College in 2009. We believe that the restaurant market in Waterloo region constitutes an area of great opportunity and growth in the future and this is the optimal time to ensure that our restaurant is able to capitalize on this growth.
Survey Results When conducting research into the feasibility of an Indian restaurant in Waterloo Region we surveyed 20 people on numerous factors involving their habits and preferences in respect to restaurants. Of those surveyed over half lived within two kilometers of a university or college campus, which helped determine what we believe would be the ideal location of an Indian restaurant . Of those surveyed 80% indicated that they ate at restaurants at least 3-4 times a month and nearly a quarter indicated that they ate at restaurants more than 8 times a month . This has shown us that our target customers frequently eat at restaurants. On the multiple occasions they do eat at restaurants 65% of those surveyed spend at least $10 each trip . The most important factors when deciding where to eat were first the quality of the service provided and secondly the quality of the food served . The most popular to eat at restaurant for was dinner with 80% of respondents indicating that this was the meal they preferred to eat at a restaurant . Of those surveyed 65% indicated that they would like to try Indian food and 60% said they would be willing to pay $10+ for a meal . Based on this survey data our target customers frequently eat at restaurants, many would like to try Indian food and the majority are willing to pay a premium for good quality food and excellent service.
SWOT analysis
Strengths: Our first strength will be the quality and authenticity of our food, we are able to achieve this as more than one member of our team is a recent immigrant from India and because of this they are able to provide authentic Indian food. Our other primary strength will be the quality of our service. We are aware through our market research how important service is to our target customer, so along with the quality and authenticity of our food we will strive to ensure we have the best service of any restaurant in Waterloo Region.
Weakness: The biggest weakness that our team has is lack of experience in running a restaurant. There are many aspects of starting and running a restaurant and we need to ensure that we do the best possible job in learning these. However the best way to gain knowledge is through experience so we will be learning as we go and will continue to grow and get stronger.
Opportunities: The greatest opportunity we have is to capitalize on our target market initially. Our target market represents an excellent opportunity for growth at the beginning and then our excellent reputation obtained through our commitment to food quality and service quality will allow us to grow into other market segments.
Threats: There are several potential threats in respects to opening and operating an Indian restaurant, the first coming from an area of opportunity which is the large growth in the South Asian community. All of the new immigrants from South Asia also know what authentic food from that region is and they may decide to open their own restaurant. Another potential threat is that the restaurant market may began to contract if the economy gets worse in the region and people try t save money by eating at home more regularly. There may also be a simple change in consumer preferences and Indian food may become less popular, which would mean a down turn in business.
Market Potential
For Kitchener: - The total amount of households is 84,681 and on average each household spends $1696 a year at restaurants .
For Waterloo: -The total amount of households is 40,826 and on average each household spends $2026 a year at restaurants .
So the total market potential for Kitchener and Waterloo would be: ($1696*84681)+($2026*40826)=$226,332,452.00
From our research we were able to determine that the most likely customers for an Indian restaurant are people originally from South Asia. We know that 22.2% of all immigrants arriving in last 5 years are from south Asia and they account for 23% of total population of Waterloo-Kitchener area . So our market potential will be smaller - $226,332,452.00*0.23=$82,713,476.00

Market Share
To calculate our potential market share we have to be aware of our competitors. Currently in our target market there are 11 Indian restaurants (different size: from 1000 square foot to 2000 square foot) and 3 Indian fast food in malls . Plus our restaurant will be 3000 square foot.
So we have 7*1000 (7000)+3*2000 (6000)+1500+3*360(1080)+3000= 18 580 square feet
Our potential market share will be 3000/18580=0,1614 or 16%.
Sales Forecast
To calculate sales forecast we should know our target market and their consumption habits. From the survey we were able to ascertain that the most popular meal to eat at a restaurant was dinner and that lunch and breakfast were far less popular. Moreover we were able to get information about how much our target customer is willing to spend and compare this to the market as a whole. We were able to use this information to determine at what level our prices should be. Based on the assumption that our restaurant will be open 12 hours 7 days per week and that we can sit 40 customers at a one time and that on average people spend 1-1.5 hours eating in a restaurant we were able to calculate our daily sales. Based on these assumptions per day we will be able to serve 40*6=240 people, per month this equals 240*30=7200.
We are expecting to start our business in January 2013, therefore the sales in the initial period especially first two months will be low. Since, it`s new it`s extremely difficult to capture 2% of the market as per the business rule unless there is a competitive advantage.
January, 2013 – starting business and sales are low during February too.
March and April we will have different holidays, such as St. Patrick`s day, Good Friday and Easter. They will help us to increase our sales.
May -July, 2013 – Father`s day and Baptist day, in these occasions, sales would not decrease much as compared to previous month.
August – September, 2013 – Students are back to college and university, therefore sales would increase.
October, 2013 – We have Thanksgiving Day, Halloween and Oktoberfest will increase sales as a lot of people will come to Oktoberfest from other cities.
November– December, 2013 – Holidays due to Remembrance Day, Christmas day and Boxing Day. These are special occasions which increase the sales and during these moths sales will be at its peak.
Sales Forecast = Total estimated market size * estimated growth rate * market share target Sales Forecast = 125,507*2*16% = $ 40 163/month
Our expenses will be $22 500, which include rent and purchasing of equipment for kitchen, decoration tables and so on. Full year forecast presented in table.