Operating Environment and Feasibility of an Ethnic Restaurant in Varkaus

Abstract

Success of a business depends upon customers’ choices and preferences. Understanding Customers' needs and preferences is a safe starting for any business. Further, feasibility of the business is also a prime concern before establishing a business. Starting a business, especially an ethnic restaurant, in a small town like Varkaus involves a great deal of uncertainty and risks in terms of market feasibility. This study highlights, using customer survey, customers' preferences and feasibility of ethnic restaurant in Varkaus. Discussions related to the strategic factors and internal operating environment, based on the interview with the ethnic restaurant owners, is another important contribution of this study.

The objective of the research was to produce valuable information for the investors willing to start an ethnic restaurant in Varkaus. Results of this study suggest that even though there are positive signs of possibilities, establishing and operating an ethnic restaurant is quite challenging in Varkaus. It is not only because of small market size. The major obstacle comes from the competition.