11 Must Follow Tips for Starting your Own Restaurant
If you are one of the many people who have worked in the restaurant or the fast food business, you might just be one of the 46% who also dream of owning your own restaurant someday. Clearly a good number of people would like to have and run their own restaurants. The one thing which every aspiring restaurateur does not want or dream of is a failed restaurant.
Starting your very own restaurant business is not an easy feat. It seems more complicated than it actually is because there are numerous things to take care of. If you rely on luck, your restaurant business will never succeed.
A shift in demographics and changing lifestyles are behind the surge in the food-service business. A lot of people are so busy that they no longer have time to prepare their own food while others just do not have inclination or skills to prepare a decent meal. Although the future looks promising for the food-service industry, there are simply no guarantees. If you want to succeed, you need to work hard for it.
Know your target market
There is no single food-service operation has universal appeal. This is something which a lot of entrepreneurs fail to understand most of the time. The reality is you can never capture 100% of the market. The best you can hope for is a market which will allow you not only to keep your business afloat but also allow you to make profits. Look at the category of customers and study which market where your food business will focus on.
Select the right food concept
When eating out, patrons want to be delighted with their dining experience. They do not want to anticipate a family steak-style restaurant only to find out that it is a pricey and formal dining. Your concept will let patrons know in advance what they can expect from your restaurant so think of a very good one.
Carve a niche
Before you think about your opening night, you must decide what certain segment of the food-service you want to penetrate. Although there are commonalities, there are also differences. It is ultimately your preferences and personality which will dictate the food-service you want to focus on.
Make a business plan
One of the most critical parts of having your very own restaurant is putting together your business plan. Put and map out everything on paper before you ever buy the first spoon for the restaurant.
Location, location, location
Finding the best location is more complicated than most people thought. Depending on your budget and the particular type of food-service you want to invest in, you can spend little or a lot of money on facilities. Always ask yourself, “How can the location contribution to the sales volume?”
When it comes to your capital, it is always better to overestimate than underestimate. Always plan on having 6 to 9 months of capital when you start. You will be very surprised at just how quickly the expenditures add up.
Creating your menu
Be aware of some of the trends when it comes menu content, as well as design. Remember your target market when creating your menu. If families are your target market, do not forget the children.
Hiring the right people
Hiring qualified labor is one of the most difficult things in business, not just in the food-service industry but across all industries. Develop comprehensive HR programs so you can determine what exactly you want people to do.
Never be cheap when it comes to guests
Your guests and your patrons are the lifeline of your business. Without them your business will collapse. The most important amount of money you will spend is that which goes to your guests.
Marketing and promotion
If you do not promote your business, people won’t even know that it exists. Conduct research regarding marketing practices which will best help your business but do not forget that the best kind of advertisement is still word-of-mouth and this is one of the reasons why you should never be cheap with your guests.
Have a good system of operation
Not putting systems in place is one of the biggest mistakes restaurateurs commit. You should have a good system in place which will guide you and all the employees in day to day operations.
Are you a bar or restaurant owner? What tips do you have for new or soon-to-be owners?