FEASIBILITY ANALYSIS OF CULINARY BUSINESS CAFE NUSANTARA DEVELOPMENT IN THE CENTRAL OF JAKARTA

Abstract

Nusantara Cafe was first established in 2018 as a traditional canteen. As known as a traditional one, the menus provided by the canteen are Indonesian main courses and beverages such as; tea, coffee, etc. This culinary business is located in the Central of Jakarta, which has an advantage of being in the central of industrial offices and businesses area. As a traditional canteen, the income of this business is still low and stagnant. However, based on the owner, one of the reasons is the lack of promotion and introduction to people around the canteen. Therefore, the owner of the business decided to take the opportunity to make a development in the business. The market potential of this area are workers which offices’ are located in the central of the city. In order to establish the Cafe, a feasibility analysis is needed beforehand. The method used for the feasibility analysis is seperated into market aspect, technical aspect, and financial aspect. Based on the research, the method used in collecting data is by distributing questionnaires. The calculation shows that the potential market value is 90% which equals to 119.321 prospective customers in a year. The target market is valued 1% of the available market which equals to 12.743 prospective visitors. The output of feasibility analysis based on the financial aspect is the amount of Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP) based on the investment period. Briefly, the value of NPV equals to Rp 56.025.515, the IRR value is 20,8%, and the PBP is 4,2 years. To summarize, the IRR value is bigger than Minimum Attractive Rate of Return (MARR) value, which is 10,25%. Therefore, the business is feasible to be developed.

Keywords: Nusantara Cafe, NPV, IRR, PBP, MARR