Opening a Successful Restaurant

Owning a Restaurant is hard work, but it can also be very rewarding. Ask any succesful restaurant owner, and they will tell you about their start up story and all the long hours they put into their business. If you do your homework, you’ll have a better chance of success. Most accomplished owners continue to educate themselves and are always looking for ways to optimize their sales and streamline their business, allowing more time for quality of life. And that’s really what it should boil down to… owning and operating a successful business with ease.

Before you open your own restaurant there are several key components that need to be addressed, to assure your success. Here’s a list of 7 tips that will help you avoid costly “trial and error” in your new restaurant start-up.

Develop a Viable Restaurant Concept

Deciding what type of restaurant you want to open will depend of a variety of things. Often times, people who want to open their own restaurant want to serve food they like to cook, in an atmosphere they feel comfortable in. This could be good or a very bad idea.

For example; just because Joe makes a great Gumbo, doesn’t mean it will sell any and everywhere.

You should find the perfect balance for your concept. This would include your strengths, attributes and comfort zone as well as the right location, pricing and niche

Choose the Right Location for Your Restaurant

You’ve heard the saying… “Location, Location, Location”. Well, it’s true, the right location is vital to the success of any restaurant. There are several factors to consider when searching for that perfect restaurant location, including population, competition, local employment statistics, traffic, residential and commercial demographics, accessibility and lease price/sq ft. You should start with a feasibility study, once you find that perfect location, you will need to negotiate the best lease possible for your restaurant. Your lease payment should not exceed 10% of your projected net sales.

 

Writing a Professional Business Plan

This is one of the first steps in starting a business, not only are business plans used for funding, but they’re also needed to layout the framework of your operation. Your plan should detail, the funds necessary, items needed, assets, projections, concept summary, example menu, etc…

To prepare for your interview with the bank or investor(s), you need to do your homework. Creating a business plan that outlines your restaurant and how you plan to make it profitable, will show the loan officer or investor you mean business.

If you don’t feel comfortable writing a business plan, get some help. Just avoid those robot generated or fill in the blank templates. Those options are only good for 3 things; throwing your money away, wasting valuable time, and frustrating yourself when your plan is rejected.

 

Naming and Branding Your Restaurant

Restaurant names may reflect a theme (Sushi, Italian, Burger Joint), a location, or simply be a play on words. Whatever angle you chose, make sure your name is unique and reflects your restaurant. The important thing to consider is the impression it will leave on customers.

Select a name that will be easy for customers to remember, spell and find. Nothing is more frustrating than not being able to find a restaurant online or in the Yellow Pages because you aren’t spelling it correctly.

Create a logo and brand image that can be easily identified. A good logo and catch phrase can set your restaurant apart from its competitors. Just make sure you live up to your promises.

 

Menu Writing and Pricing

Your menu is a huge part of your restaurant. After all, it is essentially why your customers keep coming back. They love the food. The layout and design is just as important as what’s listed on the menu. Avoid amateur looking menu designs, like clip art. Finally, knowing how to price the menu will help increase your profit margins, giving you more money to invest into your restaurant.

 

Staffing Your Restaurant

Hiring the right staff is crucial to any new restaurant. Good food loses much of its appeal if it’s accompanied by bad service. Knowing the basic employee roles of the back of the house and the front of the house will help you select the best candidate for the job.

Experience counts for important positions, such as head cook, chef, restaurant manager, floor manager and head bartender or bar manager. Just keep in mind that you are ultimately responsible for your employees’ actions. Your employees represent your restaurant and in most cases are directly in contact with the customer.

Even experienced individuals require guidance and the proper tools to complete their tasks successfully. You should have a clearly communicated job description for each position, SOP (standard operating procedures) in place for everyday duties and a checks and balances system to ensure employee compliance and accountability.

 

Buying the Right Equipment for Your Restaurant

Outfitting your restaurant kitchen, dining room and bar is the largest part of your start up budget. You can shop around for bargain deals of used equipment and leased equipment, but your restaurant might end up looking like Sanford & Son’s junkyard. Unless that’s the look you’re going for, I suggest not skimping on this step.

Keep in mind that a properly designed restaurant is appealing to customers. You are setting the mood, laying out the proper customer/employee flow areas and streamlining your business. The right design and equipment will make your life easier and your operations more efficient. Not to mention, these are the few tangible assets your business owns.

 

Still need help?
Contact an expert that can help you open a successful restaurant quickly and save you time and money in the process.
Go to www.trgrestaurantconsulting.com or call for a free phone consultation. 877-777-6175