Image credit: Ken Zirkel
For many Americans, owning a restaurant is a dream. These individuals believe that once their restaurants gets off the ground, people will flock to it nightly and it will become the city’s new hot spot. The problem is that the majority of restaurants fail and two-thirds of them do not even last until their first birthday. Therefore, if you are looking to join this industry, you must have a business plan that is sure to work. You will have to deal with long working hours, ornery customers, and many others issues, but having everything else in order can help your restaurant succeed against the odds.
Have a Concept
Do your research and come up with a concept that will work in your city. Just because something works in New York City does not necessarily mean that it will work in Boston or Miami. If an area is already overrun with fine dining options, you could get lost in the shuffle unless your restaurant stands out from the crowd.
On the other hand, your concept should also not be a gimmick that people will grow tired of after a while. Instead, think of something timeless that has the potential to become part of the community as a whole.
Find a Location
The location of your restaurant is very important, as it determines how many passersby will actually see the building. If you cannot find real estate in a central location, you will find things much more difficult in the beginning. The more accessible your restaurant is, the more likely you are to draw in customers over the first few months of business and beyond.
Of course, central real estate is often more expensive than other locations, so you might have to get creative. Remember that it is rare for a restaurant to become a destination in an obscure part of town, however, so you’re better off opening in an area that is sure to see some traffic.
Hire a Chef
Your chef will be responsible for creating your menu, so make sure that you find someone whose style blends with your own. The chef should have the ability to match the concept that you have created, so that customers know what they’re getting when they come in the door.
Have your chef create a short menu that is high in quality. This reduces confusion among your guests and allows the chef to master each item. Your chef should also know that mistakes must never leave the kitchen, as guests should only be served items that are cooked perfectly.
Overestimate Your Capital Requirements
Before you get started, have six to nine months of working capital available. This might seem like a lot, but you will go through a great deal of money as you attempt to get your business going. Most restaurants go through a downswing after some initial success as the buzz dies down. This is where having this capital available comes in handy, as you will need to have money available while you develop relationships with your customers and have them coming in regularly.
Some restaurant owners make the mistake of blowing through their working capital because they see immediate success and think it will last forever, which is what leads to so many restaurants eventually failing.
Add Value for Guests
Any money that you spend on adding value for your guests is well worth it. This includes purchasing high-end equipment, ingredients, and decor, as your guests are sure to notice if you do not.
Adding value can also include sending free samples out to your tables as they wait for their food. While this will cost you a little bit of money, it provides a positive experience for your diners. The better the experience for your guests, the more likely they become to recommend you to friends and family.
Create a System
Implementing a system is very important to your success, as it keeps your staff organized at all times. You should have a clear chain of command in the restaurant and encourage communication between all members of the team. Since you will be the owner of the restaurant, you will have the ability to make the final decision, but it is important that you give some power to your managers as well. Value their opinions on every aspect of the restaurant, as they are the ones who are interacting with the staff and the guests.
Be Flexible
In certain situations, you might have to swallow your pride and admit that something is not working. Today’s economic climate calls for business owners to look at their numbers weekly, rather than monthly, to see what is working. If your numbers are failing, don’t be afraid to cut back your menu or reduce your costs to turn a profit.
In other words, you might have to tinker with your restaurant occasionally to get it to the point where it becomes successful, but don’t hesitate to do so if things start going wrong.
Buy the Right Equipment
All of your equipment and dishes should be designed for commercial use. Since your dishes will be going through the dishwasher constantly it is important to get regular dishwasher servicing to ensure it will stand up to this heavy use. The same can be said for your Commercial Dish Tables, ovens and refrigerators, as purchasing versions that are made for home use is sure to end in disaster. There are areas where you can cut your costs, but this is not one of them. If you visit the hematologist, you would expect him or her to have a blood count analyzer, amongst other equipment, and those who visit restaurants are no different. Customers expect you to have commercial-grade equipment and dishes and you will look unprofessional if you do not. Another thing to consider is what you’re going to do with old or used cooking oil. A great solution to this is booking a bulk cooking oil recycling pick up service.
Advertise Heavily
We saved this one for last, but it’s far from the least important task in front of you. When your restaurant first opens, very few people will know that you exist. Therefore, it’s your job to let people know about your restaurant and the new concept that you will be introducing to your city.
You can advertise through traditional means like the radio, television, and newspaper, but you should also focus on new methods like social media. Putting your message on Facebook or Twitter through a sponsored advertisement can generate new traffic to your website. Social media also allows you to offer special deals to your followers, which can drive business to your restaurant.
We won’t tell you that following each of these suggestions will guarantee you success, but it will make sure that you’ve given your restaurant the fighting chance it deserves.
