Sunday, February 10, 2013

Step by Step Guide for Starting a Restaurant Business

English: This is actually Tom's Restaurant, NY...
 (Photo credit: Wikipedia)

It seems like new restaurants, fast food chains and coffeehouse are popping up constantly, and while there will always be a demand for restaurants and food business, it’s not so easy to launch a new one and make it into a profitable business. You might think that it’s as simple as renting a space, hiring chefs and servers, and purchasing equipment, but ask a few restaurants owners and they will tell you making money from the start isn’t quite a piece of cake. 
If you’re looking to start a restaurant, you must follow the guidelines given below, because overlooking any of these steps will seriously hinder your chances of making it big.   
 

Research & Niche Selection


Just like in any other business, you must avoid making decisions based solely on your own likes and dislikes. Your expertise and preferences will matter, but that shouldn’t be the only criterion for choosing your niche. You need to finalize the details after conducting a through market research. To decide between the many different types of restaurants (fast food or formal dining, for example) and what type of food you’ll serve (soup and sandwiches, pizza, diner food, Italian or Chinese, for example) you will have to decipher the demand, competition and location.  

Planning & Financing


Once you’ve chosen a niche, the next step is to set down a proper business plan. While planning, don’t let the excitement or unnecessary optimism affect your rational thinking. You will have to analyze all risks and opportunities with a balanced mind. Because you will have to arrange finances in advance, remember that regardless of the quality of your food and ambiance, it will take some time before your income statement starts to show some kind of profit, so you need to have the funds to survive that initial period.

Food & Equipment


One of the biggest expenditures in starting a restaurant will be the restaurant equipment like tables, chairs, cookware, bakeware, ranges, pizza ovens, grills, boilers, refrigerators, dinnerware, and the likes. Instead of trying to cut corners with used or low quality items, you should invest in high quality, commercial grade products and superior kitchen equipment. When people come to a restaurant, they want a dining experience far superior to their home dining routine. Having said that, d├ęcor or ambience will go far, but even more important is the food you serve. Focus on the taste, quality and cleanliness of the food that you’re going to serve.

Marketing


The reason many restaurants fail to make it big, despite having excellent food and an inviting atmosphere, is because the owners aren’t really business-savvy, especially when it comes to marketing and promotions. Remember, you cannot rely solely on word-of-mouth marketing to attract new customers. You will have to implement aggressive marketing at least in the first few months to get your name out. Try to make the most of the Internet, especially social media or special deals websites to attract new customers. In addition, you can try inserting advertisements in local newspapers, magazines, or TV channels.

About the Author: Farah Mustansar writes on restaurant marketing and equipment related topics. 



1 comment:

  1. I can say starting a food business requires a lot of capital and expertise. Yet, this business can be a sure success since people don't stop eating. It is always on trend on the marketplace.

    ReplyDelete

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