Starting a Restaurant To Success
According to Quick Service Restaurant magazine, there were over 56,000 new restaurant permits issued last year. The startups were distributed throughout the country fairly consistent with population density. That means that thousands of individuals took the plunge into restaurant ownership. Many probably dreamed of their quaint operation serving the multitudes with their exotic food creations.
Starting a restaurant is not easy, the dream is better than the reality until you get to the day you open your doors and serve that first customer. Even starting a small restaurant has most of the same problems as a 250 seat franchised chain location.
How do you start the process? It’s simple; a plan. You must have a business plan. Without a step by step guide to keep you moving in the right direction, you can get lost like a sailor without navigation tools. You may get to your destination, but it could take a costly detour to find your way. A pretty good restaurant business plan can be found at The Restaurant Ebook.
Once you have a plan, you know the cash you will need. Don’t even think about opening your doors without enough operating capital to survive six months without a customer. Surprises are part of the restaurant business and most of them cost you money. Of the thousands of food operations that fail annually, most close their doors because of the lack of funding to keep their dream alive.
One of the key elements of survival is your location. Don’t make the mistake of believing that great food will overcome the key elements of survival, including the essentials of a perfect facility to serve your creations. Chain restaurants spend tens of thousands of dollars doing demographic and traffic studies for each location; and they still make mistakes. Start with three unbreakable rules:
- Visibility – either by pedestrian, such as a shopping center, or alternatively vehicle traffic.
- Parking – safe, convenient and in a quantity that would support a full restaurant and staff.
- Access – if there are obstacles to get to your facility, such as a traffic pattern that requires crossing a major highway without traffic lights or a second story that requires walking up stairs, guests will not find your access convenient and accommodating.
Most budding restaurateurs believe the food is the key, but in the real world good food is important and expected – it’s the rest of the package that brings guests back daily, weekly and monthly.
If you have a marketing background and experience in the industry, you already know some of the options that can propel your operation into the limelight of a customer’s mind. If not, you may want to invest in The Restaurant Marketing Plan Handbook that spends a great deal of time showing you how to market your restaurant. One chapter of the book has more than 50 ways to market your restaurant and increase sales.
Even starting a small restaurant requires creating a business plan and marketing plan to get you off the ground and in a customer’s mind.
In the planning stages become a walking encyclopedia of restaurant knowledge. Read everything you can about owning a restaurant, running a restaurant and guest’s expectations. Keep a list of unique details that you come across that fits your concept. Don’t fall into the trap of believing food is the only reason a guest will visit your operation. Find out all the factors that make a successful restaurant.
