National Restaurant Association divides a restaurant feasibility study into five steps, which are 1)

identifying market area and gathering of demographic data such as age, sex, income, dining-out
habits and other characteristics of potential customers 2) concept development, which involves
using the data about the population in the market area and forming and evaluating a restaurant
concept that fits the area's needs and preferences. 3) site analysis, a process to determine whether
the characteristic of the site and the competitive environment around the restaurant will support
such a concept. 4) competitor analysis, which involves investigating competitors in the market
area through a competitor analysis worksheet. 5) financial analysis, a process of specifying
revenue generating criteria, computing estimated average-check and revenue figures, estimating
operating expenses, analyzing and interpreting the financial statement, and finally, developing an
implementation plan.