The number of consumers who want to dine out rather than prepare a meal at home has increased exponentially, resulting to a huge increase in food-service operations. But there’s still room for new players in this business. However, before you proceed, do keep in mind that many restaurants fail on the first year and it would be to your benefit to seek advice from a reputable hospitality group about how you can effectively start a restaurant.
The following are the basic steps for those thinking of opening a new restaurant:
Step 1: Your Restaurant Concept
If you’re planning to venture into the restaurant business and would prefer not to buy a franchise, the first step would be to decide on your concept. Do you want to start a fine dining restaurant? A diner? A fastfood joint? You also need to plan on the kind of cuisine you’ll serve. Is it French, American, Mexican, Italian or Indian? These are important considerations you need to think about before proceeding to the next steps.
Step 2: Location
Location is a primary factor in the success of a restaurant. Of course, it’s not the only one in the equation but it is very crucial nonetheless. So make sure you do your homework. You want a location that gets a lot of traffic, with enough parking space and in a very convenient area in the city.
Step 3: Name of Your Restaurant
One of the most fun steps in starting a restaurant business is choosing your restaurant name. Its name should mean something (to you) and should echo your concept. Here’s a simple guide for picking a good name.
Step 4: Business Plan
You need a business plan because it can help you foresee potential problems before you invest your hard-earned money into your venture. For example, it will tell you if the location is good or bad, or if your concept is feasible. Another reason for creating a business plan is that you need it to get financing from a bank. No bank will lend you money for capital if you don’t have a business plan.
Step 5: Financing
Let’s say you have $200,000 in your savings account and you’re willing to put most of it into your new business. But if you’re planning to open a fine dining restaurant then you will likely need more money to put everything together. So you’ll have to get financing. You can approach banks, private investors and even family and friends who are willing to put up money to help you get started.
Step 6: Licensing and Permits
Check out this page to learn how to tread the intricate web of business licensing and permit applications. It could take a few weeks to several months to process all the needed paperwork.
Step 7: Restaurant Design
Here’s another exciting part of starting a restaurant business. You can go through this on your own or you can hire an interior designer that specializes in restaurant designs. If you’re not a designer yourself, it’s always a good idea to hire a professional to avoid making costly mistakes.
Step 8: Restaurant Menu
A good menu is descriptive, attractive and organized. Keep it simple and start with popular and unique dishes. When it comes to menus, quality is better than quantity.
Finally, don’t forget to hire the right people. You want your employees to be friendly, professional, hard-working and passionate about their roles in your restaurant. When you have all these things, you will have a better chance of succeeding. Goodluck!