Essential Steps for Launching a Successful Restaurant Startup

There is no one-size-fits-all approach to launching a restaurant startup. But there are steps you can take to maximize your success. Entrepreneurs understand that an establishment’s first few days in business are crucial. Learn how to open a restaurant with TRG.

1. Start With a Concept

A restaurant concept is the starting point for building a distinctive and memorable brand. It is seamlessly reflected in everything from the restaurant’s theme and decor to its menu and the kind of service style you offer.

2. Write a Business Plan

Here are some non-negotiables to include in your draft:

• Executive summary with insights into your concept, costs, and return on investment (ROI)
• Overview with useful details like location, contact, and company description
• Market, location, and competitor analysis to establish viability

Sounds like a lot? It can be. 

That’s why TRG offers a comprehensive restaurant business plan, complete with 1- and 5-year sales and profit projections to help you succeed.

3. Obtain Funding

A restaurant feasibility study fleshes out the finer details of your vision to help you attract investors—but it’s not the only type of funding on the table. 

Acquiring a Small Business Administration (SBA) loan can give your restaurant startup the capital it needs to get off the ground. However, you’ll need to show you have some “skin in the game” by offering some type of collateral.

4. Curate the Perfect Menu

A restaurant’s menu becomes its core identity. It plays a vital role in establishing its personality, quality standards, and ambiance while shaping the guests’ dining experience.

Here are some tips to ensure a successful menu:

• The design and layout should be simple and easy to read.
• Reduce the number of items on your menu to avoid decision fatigue.
• Highlight high-margin items to help customers make the “right” choice.
• Tap into psychology to influence guest behavior and boost your bottom line. 

Furthermore, restaurateurs must think about food storage to minimize food waste.

5. Look for a Good Location

Opening a restaurant is not enough—you must set down roots in the right place to ensure profitability. The space you select must align with your target market and it must be centrally located to ensure visibility among potential customers. 

Additionally, you must focus on the availability of parking and accessibility to enhance its appeal.

But, don’t be too quick to jump the gun. If a location has fierce competition, you might want to consider less competitive locations.

6. Get the Mandated Licenses and Permits

You must obtain several licenses and certifications to ensure compliance. The requirements vary across cities, but generally include a:

• Building health permit
• Business license
• Certificate of occupancy
• Foodservice license
• Liquor license
• Live entertainment license
• Valet parking permit

You’ll also need an Employer Identification Number (EIN) to operate.

7. Invest in Equipment

Believe it or not, commercial-grade equipment and utensils can ensure the future of your business. Choosing the right tools may require a higher initial investment, but they can increase your staff’s efficiency and productivity. As they’re made with high-quality materials, they’re also cost-effective in the long run.

8. Meet Your Staffing Needs

The turnover rate in hospitality businesses is more than 5% higher than other industries.

If you bring the wrong people on board, you’ll spend most of your time trying to meet staffing needs, taking your attention away from boosting profitability. Remedy the issue by determining the responsibilities of each role, then interview and hire candidates with the required skill sets to ensure a good fit.

9. Advertise Your Restaurant

There are nearly 750,000 restaurants in the United States, so competition is as stiff as it gets. Increase your chances of packing in a full house by using a combination of organic and paid advertisements in the days leading up to the launch. Social media websites like Facebook, Instagram, and TikTok can provide excellent traction.

TRG: Enjoy a Successful, Effective, and Profitable Restaurant Startup

Launching a restaurant startup requires careful consideration of various factors. It’s like a jigsaw puzzle where every piece is important to set the stage for success. Our 5-step approach can give you fact-based plans that lay the groundwork for a thriving business. Explore TRG’s services for new restaurants for expert and sound guidance.