The Restaurant Group Blog

Why You Should Have a Feasibility Study Before You Start a New Restaurant – Reducing Risk

Feasibility Study

According to Restaurant Startup & Growth magazine, close to 25% of restaurants fail in their first year of operation. One way to mitigate the risk of restaurant ownership is to conduct a feasibility study before the business opens. A feasibility study examines an idea, identifies potential issues, and attempts to determine if you should proceed with the project or abandon it.

A carefully thought out business plan paired with a subsequent feasibility study will increase the likelihood of success. The key elements of a typical study are below.

Location analysis

A location can make or break a business, especially a restaurant. A proper site analysis includes potential issues and solutions, demographic information, current and potential competition, advertising options, etc. Even detailed statistics like traffic data (foot, road, and public transportation) are used.

Labor analysis

A business owner relies on staff to keep the operation running smoothly. A combination of demographics data and a favorable location increases the probability of attracting the right employment candidates for your business needs. And hiring the right person the first time reduces turnover and training costs, while freeing up the owner’s time to focus on strategic planning instead of the daily restaurant operations.

Cash flow projections

Cash flow projections are an important element of any business’ feasibility study, as without adequate income the operation can quickly succumb to debt and fail. Evaluating potential roadblocks and ways to overcome them before the business is open will greatly reduce the amount of stress on the business owner.

No business owner wants to fail, and careful planning ahead of time can reduce that probability. A quality feasibility study is a complicated task, requiring expertise, precision, and experience. You might not have the time required to complete it, so outsourcing this job to the experts is a wise choice.

 

Virtual Restaurants and Delivery Service

Virtual Restaurants and Delivery Services

Virtual Restaurants and Delivery Service

 

It’s six pm on a Tuesday, and after leaving work you’re sitting in bumper-to-bumper traffic amid a cacophony of beeping, honking, and expletive-laced language, wondering what to have for dinner. Seven years ago the options would have amounted to cook your own dinner, dine out at a traditional restaurant, or order from the same revolving stack of pizza or chinese food menus. But this is 2016 and the delivery landscape has changed.

These are the days of Grubhub, Foodler, UberEats, Munchery, and more. The technological advancements of the last decade have affected the culinary scene with the same fervor as transportation, finance, and hospitality, resulting in a widened array of dining options for consumer and deepened selection of business ventures for chefs and entrepreneurs.

What makes these dining options and business ventures so unique and attractive? For consumers, who were previously forced to choose quality or convenience, the pros are clear. No longer is the decision to order delivery equanimous with a high-fat, high-sodium often sub-par meal delivered by a pimply high-schooler who hasn’t yet realized the importance of standing up straight or enunciating.

Today’s delivery scene offers a bevy of choices for the modern-day consumer who may prefer a wholesome, chef-prepared meal with fresh produce and locally sourced ingredients.

Business owners, too, cannot deny the appeal of a delivery-only restaurant – they cut down enormously on the initial investment and traditional on-going operating costs. No longer is interior decoration and design a concern. Nor is sourcing glassware, flatware, and plates. No POS system needed. Payroll is limited to kitchen staff, delivery staff, and some management.

That’s not to say traditional obstacles are no longer relevant, and in some ways, they are compounded. For an industry which is so heavily based in hospitality and customer service, how do restaurants right the wrongs without some manger face-time and a few comped beverages?

Expectation is oft-hailed as the root of disappointment, and in that sense traditional restaurants do a better job crafting the guests’ expectation. Subliminal cues in interior design and staff verbiage inform the guest as to the style and type of service and food, which can be challenging to replicate in the delivery-only format.

Additionally, the owner/operator needs to ensure prices cover their food, labor, and operation costs and still deliver perceived value to the consumer. While wholesome, honest ingredients and prep may go into the food, a “restaurant quality” meal entails more than just the ingredients themselves. Here’s where things like temperature and presentation come into play, as well as training the delivery person to assume more of a server-like or brand ambassador role.

The market is ever-changing and ever-expanding and we, as owners and operators, need to stay ahead of the curve, anticipating our consumer, customer, and guests wants and needs before they do. Delivery-only restaurants and commissaries present a formerly hard to come by opportunity for a lower start-up cost ventures, and offer great source of additional revenue stream for restaurants, but the traditional restaurant isn’t going anywhere anytime soon.

For more insight on the delivery-only format and other market trends, reach out to us at TRG

Restaurant Design: Building the Efficient Commercial Kitchen

Restaurant Design: Building the Efficient Commercial Kitchen

 

 Restaurant Design Kitchen

Your restaurant design is a reflection of your brand. From the front of house design to the back of house, your entire design plan needs to reflect your brand’s personality, market position and mission.

Efficient Restaurant Design

Whether you have a large chain or one store, it’s necessary to take every detail into account; from the store front sign to the table settings. The front of house design should reflect the style of your brand in its décor, also a large consideration should be paid to the construction of the service areas, to include the layout organization and efficiencies. If something looks beautiful but doesn’t function well, your customers will be the first to notice.

The front of house design is an important part of your image, but the back of house is the heart of your operation. Poor commercial kitchen design cannot only decrease your productivity, but it will impact your bottom line in many ways from food waste to loss of business.

Proper Planning

Before you can design your commercial kitchen, you need a solid plan. For example, consider your inventory needs, health codes, the type of food will you be serving and how you will be serving it. Retaining a restaurant consultant is the best way to plan. A consultant can help you establish your menu and make the best use of your kitchen space to increase restaurant efficiency.

There are several areas of a commercial kitchen that need to be established and there are a few popular configurations for different styles of service. Each layout factors in the workflow which includes receiving, storage, food preparation, meal cooking, cleaning and washing, waste disposal and most importantly service. Whichever design you chose, remember to keep it flexible in case your menu options change, use commercial grade appliances and building materials. It is also critical that you create specific work zones that will provide your employees with maximum efficiency to complete their duties.

Popular Configurations

Depending upon what category your restaurant falls into, there are three main layouts you can use to increase food production time and employee communication. These are simple guidelines that are flexible and easily modified to fit your specific needs.

Assembly-line

Many fast food or fast-casual restaurants use an assembly line set up in their kitchens. if you are making many of the same types of food or using the same ingredients in different ways, the assembly line configuration usually works best. This format arranges the kitchen in order of materials used. There is usually a preparation area connected to a cooking area that hands off to a service area. In this setup, the cleaning and storage areas are behind the line. This design offers speed and the ability to process orders quickly without employees running between stations.

 Food Service Design

The Island

The island configuration is designed with one main block in the middle of the kitchen area where food is prepped and cooked. Most often you will find the cooking spaces with appliances and equipment in this area. On the outer walls surrounding the kitchen, you will find cleaning storage, food prep and service areas with a circular flow. The Island offers a good flow for workers to move around and better communication among employees.

Food Service Design

The Zone

This layout is organized by blocks, placing major equipment around the walls. Like the other two models, this design flows in an ordered manner and allows for easy communication among employees preparing the food. It also provides more space in the center of the work area for employees to easily move to-and-from different stations.

Food Service Design

Always keep in mind that each of these designs can be modified easily depending on the equipment you use as well as the space and shape of your kitchen.

Other Considerations

Depending on where you are constructing your kitchen, you will find different local, state and county regulations. The planning and zoning restrictions vary from city to city, so you may not be aware of the required fire, electrical and plumbing codes. Additionally, you will need to apply for permits and licenses so it is important to know what you’re doing before you begin your design. Restaurant consultants are specialists in this field of design, so using one to help guide you through the entire commercial kitchen design and build process, will often save you time, money and headaches, not to mention, help you increase your restaurant’s efficiency and bottom line profits.

Contact TRG Restaurant Consulting for a free commercial kitchen design consultation.

Managing the Restaurant Design Lifecycle

Restaurants and all businesses in general have very similar lifecycles comprising five stages beginning with the startup phase, where restaurant design is crucial, and ending with either a rebirth or reinventing of the business model as it begins to decline and deteriorate; or dissolution as a going concern due to irrelevance with current market trends. More specifically, these lifecycle stages are startup, growth, maturity, decline, and rebirth/cessation.

Restaurant Design
Source: PC Scholars

How To Improve Your Restaurant’s Online Experience

Let’s face it. When it comes to restaurant operations, in order to insure optimal success, restaurateurs must go beyond the typical physical amenities such as, menu design, kitchen and bar design, and the fine wine or craft beer list that will ultimately be offered in conjunction with your other dining complements. But just as important as the physical aspects of designing a new restaurant with artistic flair, an important element of restaurant management that must not be ignored is the marketing mix of your budding food enterprise.

The Most Significant Restaurant Menu Design Trends for 2015

Regardless of the vast differences among the various industries in the U.S., be it restaurant design, technology innovation, new car models, or the latest fashion trends, the one thing that appears to be invariably constant year after year is change itself, especially when it comes to consumer choice and preference. But when it comes to restaurant industry trends, consumers are progressively uniting restaurants and dining to their personal beliefs and inclinations about where or how they choose to dine. This has led to the most reasonable corollary action currently facing restaurant management and executive chefs when it comes to restaurant menu design and restaurant consulting.

Cracking the Millennial Code for Restaurants

Cracking the Millennial Code for Restaurants

In any case even the savviest of authorities strives to identify what the deciding factors are that influence Millennials and where they choose to spend their dollars when they go out.

Millennials are an essential demographic; standing 90+ million strong, its the largest demographic accessible, by far.

The study of “Millennials” is focused around how purchasers ages 18-30 buy, perceive and choose (much the same as those in diverse demographics). In any case the study shows very different patterns about Millennial expending behavior. Cracking the Millennial buyer code is no easy task, but restaurant executives are willing to invest in the benefits.

BBQ Restaurant Trend: Still Smoking Hot?

This summer’s restaurant menus are on fire with BBQ items. Seems like every year (around this time), restaurants ranging from QSRs to Fast Casual concepts and full service restaurants alike, feature limited time BBQ favorites on their menus. But, what’s been different these past few years is the notable growth in barbeque restaurant openings across the country, exposure on reality cooking shows, the increase of barbecue competitions and an almost fad like marketing effort from PR companies.

So, is barbeque the next big thing on the rise or is it just a summer fad?

Well, to quote LL Cool J – “Don’t call it a comeback”. BBQ has been here for years, and will continue to grow. 

Is a Restaurant Consultant Right For Your Business?

Restaurant consultant
Image credit: National Restaurant Association. www.restaurant.org

If  you’re Considering a Restaurant Consultant for your Business, you are not alone.

39% of restaurants in the US have used a consultant.

Most restaurant consultants are not like Gordon Ramsey, by far. After all, a consultant’s job is not to increase a TV show’s ratings by creating drama. Instead, a restaurant professional consultant’s main role is to guide and assist owners in their business.

Choosing A Restaurant Name

Restaurant Sign 2
What’s in the Name?

When opening a restaurant, an ideal location is important. So is a finely-tuned concept with a quality menu and well-trained staff members who implement impeccable customer service. These are all crucial elements. What also has a tremendous impact on the short-term and long-term success of the establishment is the name.

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