15 things you didn’t know about running a restaurant business or how to open a restaurant. Whether you love burgers or you’re a fine dining enthusiast. Don’t you ever wonder, what’s the secret ingredient that makes the restaurant business successful? This article is a great opportunity for you to get the answers of following typical questions.
“How to start a restaurant business? How to
start a restaurant business plan? How to start
up a restaurant? How to open and run a successful restaurant? How to open a new restaurant? Tips to open a restaurant,
Restaurant business ideas, Restaurant opening, how much does it cost to open a restaurant? How much to open a restaurant? And so on.”
Now you have a chance here to discover the key points of developing this business. Points that might be useful, if you’re thinking about investing or opening a restaurant, welcome!
15 things about how to open a restaurant and running
a restaurant business
1- Cash or Investment
Let us discuss 1st tip about how to open a restaurant, You will need some serious cash. The first thing you need to know if you’re thinking about going into the restaurant business. You will need a few thousand to a million dollars. Whether you have to spend three thousand dollars or three hundred thousand dollars. The important thing which is usually neglected is, being careful, not to overspend.
According to surveys, Costs end up being 15% above their projected budgets. Furthermore, you’ll have to be careful not to overspend on stuff. That is essential nonetheless new kitchen equipment, architecture, and design marketing. PR and last but not least food expenses. So, be wise when spending your money and don’t forget to keep some capital reserve to put towards unexpected expenses.
2- It’s Not the Most Profitable Business to Get Rich With:
If you woke up this morning, start thinking that how to open a restaurant. After having a dream last night about getting rich from it. You should hold your horses. We don’t want to discourage it. But make sure that you’re aware of some of the aspects related to earning money in this business. According to studies and surveys.
A restaurant owner can earn a lot of money. That usually happens, when they work themselves in the restaurant. Unless you’re entering the business dead rich, don’t expect to become rich without working on at least one area. Be it waiting tables cooking or managing also be realistic, you most probably will earn enough for a decent living. But not enough to buy diamonds and expensive cars at the end of your first year.
3- Location is the Key
For this business, one thing you will have to take extra attention to. It is choosing a good location for your restaurant. It would be ideal to find a spot that draws crowds, that are easily accessible. And have the potential for growth but this doesn’t mean ignoring your budget completely and overspending on it. Okay! Maybe it would be a good idea to join a startup incubator for a restaurant, where you will learn more about this. Mentorships can prove really useful. Especially if you have to choose between building a place from scratch or selecting a location. That you’ll only be allowed to make small architectural and design-related changes.
4-Improve your Management Skills:
If you’re going to invest in a restaurant startup. You have to be ready to take responsibility When it comes to management. This implies over watching and making sure at all times, your business is solvent and profitable. Always keep an eye on trends, labor costs, personnel issues, And make sure your employees are properly trained. But also happy at their workplace.
If an employee is encountering problems or they underperform, you’d better look for sources and proactively try to solve them. Specialists explain that running a restaurant has a multitude of moving parts and therefore a good manager has to know. When to handle tasks themselves and when to delegate. Click to learn in detail about the Restaurant manager and his features.
5- Chef, location and concept:
In the study about how to open a restaurant. They say, no restaurant succeeds without a great chef, a great location and great concept thinking about earning Michelin stars. Bringing something new to the game or even both. Choose your chef carefully, you should know exactly what the food concept that you’re going for is. So you’re able to watch the chef’s capabilities to your needs.
They should prioritize quality because the chef is the one who sets the standard in a restaurant. They should also have an even temperament and be able to train staff, but this doesn’t mean lowering the standard. A great chef will have an eye for detail. That is how you’ll be sure, every dish they serve tells a story. Hence stories sure have a tendency to charm people.
6-The menu is an important asset:
During explaining how to open a restaurant. Since we previously mentioned the importance of having a food concept. We’d like to enhance that by making you aware of the crucial importance of conceiving. And the balanced yet creative menu. They say the menu is the center of your restaurant’s universe. It presents the dishes in an attractive way. Includes a description of the way the food is prepared. Uses words such as braise, seared, pan-fried, oven-roasted, wood-fired and poached.
As they add a topping of prestige to what you’re serving. It also highlights special ingredients and points out where they come from. It’s ideal to get into as much detail as you can. Because getting down to specifics provides more information and can even open up appetites. depending on how well you manage to describe the dish.
7-Avoid scandal; It can ruin your business:
You won’t know how to open a restaurant. In this regard, they say all publicity is good publicity. Well, that doesn’t really apply to restaurants, it looks like restaurant scandals have a way of drawing attention. But history proves it’s not for the best. Whether we’re talking about the 1994 class-action lawsuit. Brought against restaurant chain Denny’s for the violation of federal public accommodation laws against racial discrimination. Or about the more recent white bread horse meat or the unadvertised beef and pork ragout lasagna scandals. The thing is a scandal will make the public hesitant about coming to your restaurant ever again.
8- Don’t afraid of failure:
Maybe you didn’t pay close attention to this until now but restaurants come and go. According to an Ohio State University study about failed restaurants. So, during the search queries about how to open a restaurant, you will come to know that, 60% of the restaurant closed or change ownership in the first year of business. If you don’t have a strong heart and stomach you’d better think twice before going into the restaurant business. Even worse news 80% fail within five years.
Among the significant factors influencing the success or failure of such a business. You may find a bad location, hiring poor management, bad customer service. Not paying taxes, not being careful and attentive regarding your cash flow, not understanding food costs, not sticking to your initial budget and so on.
9-Celebrity or blogger endorsements help a lot:
This segment is also necessary during learning about How to open and run a successful restaurant? We live in the influencer’s era and therefore your restaurant business is more likely to succeed. If it’s endorsed by celebrities. According to adage studies. A brand that manages to line up an endorsement contract with a celebrity. Or an athlete can make their stock rise up to 25% as soon as the news goes public.
A good example is blaze pizza. That got a big boost from their endorsement deal with Cleveland Cavaliers basketball player LeBron James. The owners Alize and Rick Wetzel open their first pizza restaurant in 2012. By the end of 2014, there were 50 blaze Pizza locations open throughout the United States.
10- It’s easy to overspend on a lot of things:
It’s a precautionary measure during a study about how to start a restaurant business, Seriously now, this overspending thing is to be taken into account if you want your business to succeed. This is why experienced restaurant owners always advise those going in on a restaurant startup journey to consider second-hand options, shopping online and being aware of what is strictly necessary, so make a list and prioritize only the most important items, to begin with,
Also use a bookkeeping system in order to be able to keep costs in check efficiently, don’t go for the most expensive items and most of all do not go for a fancy food vendor.
The best idea is to reach out to local farmers and co-ops and always pay attention to establish relationships with more than one supplier to work with them on lock in prices in order for you to get the best deal. Surely, these will are necessary to under during learning about how to open a restaurant.
11-advertising is expensive but necessary:
Why, of course, celebrity endorsements help but let’s not forget the good old-fashioned advertising during restaurant opening, which is considered to be a must for new restaurants, whether we’re talking about traditional advertising such as newspapers and radio ads, or the new media Facebook and Instagram mostly you have to go for it.
According to experts without advertising your restaurant business has small chances of survival. You need to make a good reputation and this requires intelligent professional advertising to help reach consumers, who otherwise might never hear of you. You can promote your restaurant with different kinds of actions, such as special offers, events and inserting new menu items. If you ask experts advertising is essential, it’s a long-term investment that will lead you to success.
12- You have to work on holidays and weekends:
If you’ve just started a restaurant business or going to the restaurant opening, you’d better not be thinking about the next holiday, as chances are you’re not getting one anytime soon. weekends, however, oh no we’re not joking kiss your weekend’s goodbye as well because they represent restaurants busiest times.
If you embark on this journey you have to be aware of the sacrifices you’re going to have to make, and the first one is giving up a lot of your leisure time, in order to make things work out, you won’t be able to be everything to everybody and you’ll need a family that is understanding of your absence, be it at dinner oh the irony or on vacation it’s just the nature of the beast.
13- It’s crucial to make smart partnerships:
Studies regarding How to open a new restaurant? Also, it aims at raising awareness of the risks of sharing ownership of a restaurant. if you go into business as a partnership with someone you’re familiar with or in a romantic relationship with, it might get complicated, the main reason for that is the fact that sharing financial risks can be very stressful, a suiting business partner is someone with whom you’re able to resolve disputes with, but be careful that doesn’t mean your best friend is definitely going to be your best business partner.
If you start doing some research you’ll soon find testimonies of people who have lost their closest friends shortly after doing business together. so choose your actions wisely and determine the common ground and the value of the business relationship you’re getting into.
14-franchises versus independent restaurants:
Research about how to open a restaurant or How to start a restaurant business has proven that those who enter the restaurant business through a franchise have a bigger rate of success. This is mainly because franchise owners invest much more in market research and focus on finding the right location and choosing the right concept, furthermore, Franchise owners can learn from the chain’s experience. Thus they’re able to avoid making flagrant mistakes, this makes franchises very operational but hey!
This doesn’t mean every
new restaurant owner should go for a franchisee the world and needs innovation
in this area and your startup will be fine if you take the time to make a
business plan and start thinking strategically.
15- Be a sociable and client-oriented:
Opening a restaurant will train your social muscles to say the least. Aside from pushing you to learn sales planet, customer service, billing bookkeeping, monthly profit, and loss statements, tax preparation, public relations, Human Resources matters, motivating workers, general management skills and so much more. Understanding your client’s needs can sometimes prove itself to be more efficient than understanding food preparation, then thank the universe you can hire a chef for the latter one.
The better you understand how to sell the concept you’re going for, the easier it will be to train your staff to do the same, which let’s face it is one of the best recipes for a successful restaurant business ideas.
Before you go work hearing this, what is the nicest food concept you’ve experienced in a restaurant, let us know in the comments below. Thanks for being with us, and because of sticking with us until the end, here’s your bonus fact number. Click to learn about the Banquet hall business plan.
Bonus Tip about learning how to open a restaurant
16- Having too many investors is bad for business:
Have you ever wondered to what extent the success of a restaurant business can relate to its number of investors, here’s your answer, according to studies, the ideal partnership is one of two business partners, having three or more investors just multiplies the visions which can
prove itself risk, if you end up pulling your business in too many directions this is one matter that you should pay attention to, and better wait for the best moment to get into business rather than depending on other people’s capital. Click WebstaurantStore to learn more about this topic.