What do you know about running a restaurant?
Owning 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 pro’s and con’s 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. You will find information about creating a business plan in an upcoming chapter, however, some points to consider are :
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.
There are many things to be considered in designing the overall concept of the restaurant (excluding food) such as:
- What type of restaurant do you want?
- What special features would it have which would set it aside from all the other similar restaurants in town?
- What’s the overall selling factor of the restaurant?
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 favorite 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 identifie. Of course, the pricing of these items is very important for it will determine the feasibility of the business.
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
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.