How to Start a Restaurant Business - Anthony's Library and Resources

Anthony's Library and Resources

A blog about Health, Business, Relationship and Life Tips.

Hot Posts

Friday, 10 November 2017

How to Start a Restaurant Business

Having your own restaurant is one of the most fulfilling and enjoyable business ventures. Food is a renewable commodity. This means that people won’t stop looking for different sources of food because dining out is entertaining as well as functional.

Many people dream of owning their own restaurants, whether it is fast food, coffee shops or gourmet. In reality, many people fail to sustain their restaurants and most of them die during their first year of operation. This is due to the lack of preparation and dedication on the part of the owner. Many people jump into the industry too fast without really weighing the pros and cons of the project or having the necessary expertise.

However, there is a way to lessen the risk that is associated with new ventures such as restaurants. Preventive planning and proper management are keys towards success but there are also small things which count in the whole process of owning a restaurant.

Every business needs a business plan. Business plans are meant to lay down the different conditions and characteristics that should be inherent in the business. The availability of a good business plan which has been carefully formulated is a step towards success.

Crystal clear description of the concept of the restaurant
The objective and the general description of the concept of the restaurant need to be specific. This will give a general overview of what the restaurant intends to do and for whom it intends to do it. The concept of the restaurant needs to be established because it is the core idea by which everything else will follow.

Target market
The restaurant’s target market needs to be identified. No single restaurant should try to aim at targeting all kinds of people. Even fast food restaurants have a specific target market, even though it may seem at first that it caters to people of all walks of life.

The concept of the restaurant needs to be aligned with the target market. The target market will depend on the owner of the restaurant, and the selection can be based on the type of food or even the personal preference of the owner.

Food category, food items and their prices
Before starting a restaurant or even before entertaining the thought of opening up a restaurant, the kind of food to be served is usually identified first. Most owners put up restaurants according to their favourite kind of food. There are also restaurants which are inspired by one-time experiences such as eating excellent foreign foods.

There are many choices that are available for aspiring restaurant owners. The details of the food category should be identified next. The specific items in the menu should also be identified. Of course, the pricing of these items is very important for it will determine the feasibility of the business.

Financial evaluation
After the prices of the food items have been determined, it’s time to develop the financials of the project. You can hire a professional consultant in determining the financial viability of the restaurant. All the project costs and risks should be included in the business plan.

An enthusiast may consider creating a small corporation or a partnership or a single proprietorship to be able to give the restaurant a legal entity. You should check the local requirements for creating such institutions

Marketing plan
Include a marketing plan because it is integral to the success of the restaurant. There are so many other things that should be considered before entering into the restaurant business. The ones listed above are only part of the whole scheme of restaurant creation. The most important thing is that the restaurant should reflect the preferences of the owner so as to make it enjoyable. However, a lot of thought should be given to the way it’s going to generate money because this is the only way that the restaurant will become sustainable.

What kind of restaurant do you want to own?
Entrepreneurs who are thinking about starting their own restaurants should realize that restaurants are generally seen as good business ventures.  Why?  Because people are always looking for food.

There are different types of restaurants that businessmen can look into starting up and the decision regarding what type of restaurant or what style to put up is based on different factors.

1.   Steakhouses
These restaurants usually cater to the middle and upper class markets. These are also usually oriented towards families and have a very relaxed and homey atmosphere. The meals in steakhouses are usually deemed as good buys. There are also the high-end steakhouses which concentrate more on the quality of the meat which they serve.

2.   Seafood Restaurants
There are different types of seafood restaurants. There are the quick-service ones, the ones which cater to the middle class and the higher-end ones which cater to the upper class. The quick service seafood restaurants are very much similar to fast-food restaurants. Generally, seafood restaurants offer a wide variety of seafood and they serve it in different fashions.

3.   Casual Dining
This type of restaurant caters to almost all kinds of people. People go here to be able to have a lot of food choices and enjoy the relaxed kind of atmosphere. The prices in casual dining restaurants are usually not that high.

4.   Pizzeria
There are basically two choices in creating a pizzeria. The first one is to construct a full-blown restaurant which doesn't only serve pizza but many different kinds of Italian foods as well. The other choice is to specialize in pizzas and a few other items such as drinks.

Start-up Costs

The cost of opening your own restaurant business is one very important matter to be dealt with and often the hardest to determine because, to a great extent, it depends on the type of restaurant that you desire to open.

Your restaurant “start-up costs” are outlined as expenses incurred for the acquisition or creation of your restaurant business. “Start-up costs” are comprised as any incurred amounts or out-going capital in relation with your restaurant’s activity directed for income generation before your restaurant business starts. 

Before opening your restaurant:
1. Work in or volunteer in a similar restaurant like the one you want to open. In doing this, you will be able to understand menu development, restaurant marketing, payroll and many other important elements of the food business.

2.   Determine your “target market”.  What type of crowd do you want to cater? Is it teenagers, family or seniors? Determining your target customers before you begin planning will help you organize your menu and will help establish your d├ęcor, atmosphere and location of your business.

3.   Pick out a food concept and style of service.  Generally, your service style can be fast-food, offering fries, burgers, sandwiches and hotdogs; mid-scale offering value-priced full “course meals”; or upscale, providing high-class ambiance with “full service meals” with higher prices.

4. Create your menu.  Know that your menu can either “make or break” your restaurant, therefore it must be in conformity with your restaurant’s overall concept. 

5.  Choose your location.  Look for a location where there is a continuous flow of traffic, accessible parking, and near or along other businesses.  

6. Know restaurant safety regulations.Typically, restaurants are controlled and are subject to inspection.  You must know the local regulations and conform to them.

7. Hire your employees.Make certain that your employment announcements specifically declare your specified requirements. 

Starting a restaurant business has its challenges and also its rewards. Before starting any business, research first. Make sure you are suited for entrepreneurship as well as recognize that there is significant effort required. Therefore, it is necessary that you enjoy whatever you are venturing into as well as you have confidence in your service or product because it will consume most of your important time, especially when it is still beginning.

If you found this article interesting, educative, informative, inspiring or helpful in any way, please feel free to share it with your family and friends so they too can enjoy the same experience. You can also subscribe to this blog to receive future posts by email, by simply entering your email address on the Newsletter Subscription Form located at the bottom of this blog.

No comments:

Post a Comment