Do you want to become the next millionaire in town?
Have you ever dreamed about owning a restaurant? Well, if the answer is yes then you have come to the right place. One of the most profitable businesses today is having a restaurant.
If you will go to Singapore – visit our friends Spanish Restaurants in Singapore
However, starting and running a restaurant is not a walk at the park especially if you do not have knowledge on the same. Fortunately, this article has brought you comprehensive and simple steps on how to open a restaurant.
- 1 Choose your service style
- 2 Define your concept
- 3 Identify your niche
- 4 Develop a business plan
- 5 How to fund the business
- 6 Select the location
- 7 Deciding the menu
- 8 Hiring your staff
- 9 Marketing / promoting your business
- 10 How to start and run a successful restaurant
- 11 Define your business concept
- 12 Write the restaurant business plan
- 13 Funding your business
- 14 Consider technology
- 15 Create Your Menu
- 16 Design the restaurant space
- 17 Hiring and training your employees
- 18 Promote your grand opening
- 19 Interact with your customers
- 20 Steps on how to start a restaurant
- 21 Research on the environment
- 22 Declare on the target audience
- 23 Select the right concept
Choose your service style
The service style you are going to apply when running your restaurant is among those things that you cannot afford to ignore.
There are three main categories when it comes to opening a restaurant namely quick, midscale and upscale service.
Each of this service has its advantages and disadvantages.
Therefore, it is wise to look at each of them before making your final decision.
Quick service (fast –foods restaurants) – Quick service restaurants have specialized in limited menus. Most of them prepare quick foods and sell them at relatively cheap prices. These restaurants are characterized by very casual dining areas and take- out services. Some of the commonly prepared dishes in such restaurants include French fries, hot dogs, pizza, chicken and sandwiches just to mention a few of them.
- Midscale restaurants- Midscale restaurants offer customers with good value prices. They provide limited as well as full service options. In the limited options, customers order food from the counter. Full service option allows customers to place orders and receive their food right at the table without moving up and down the restaurant. Most of the limited service restaurants offer buffets and salads among other types of foods.
- Upscale restaurants-In an upscale restaurant, customers enjoy full services. Most owners of such restaurants tend to focus on the ambience and quality of the cuisine rather than promoting their meals. When you compare them to the other two categories, upscale restaurants charge their customers higher prices.
Define your concept
Creating your brand will act as the foundation to any other decision you are going to make as an entrepreneur.
Your brand will determine your target audience, the type of cuisine you should offer as well as the type of equipments you need to start and run your business.
A good number of people who dine in restaurants want to be delighted when dining and not surprised.
Therefore, you need be very careful when choosing your business concept. Some of the concepts to consider include but not limited to the following
- Bakery- You can make a lot of money from running a small bakery. Bakeries offer full dining menus with foods such as hot entrees, sandwiches, wine and beer among others. The high competition in this market requires that you differentiate your business from the others if at all you want to make it to the top a few years down the line.
Coffeehouse- Do you know that coffee is most consumed beverage in the entire world? Many people meet at coffeehouse for quick lunch as well as drinks. Coffeehouses have high traffic as well as huge sales when compared to most businesses.
- Family style restaurant- If you want to target families, then you can go with this concept. These restaurants offer a wide range of meals at reasonable prices to attract children as well as seniors. They also provide table service among other privileges. The décor in family style restaurants includes unremarkable artwork, several boots as well as wide chairs where customers can dine comfortably.
- Casual dining restaurant- These restaurants offer services to different groups of customers. They also boast of a wide range of foods including appetizers, desserts and salads. Their prices are affordable to take care of the needs of all their potential customers.
Steakhouse- Steakhouses are ideal for individuals who want to start and run midscale or upscale restaurants. Midscale steakhouses offer customers with casual environment to dine making them the best for families. They are also known for comfort, thanks to the western themes. On the other hand, the upscale restaurants are slightly formal and offer high quality meat when compared to the midscale steakhouses. In addition, they tend to charge higher prices on their products.
- Seafood- if you decide to start a quick service restaurant then you can think about the concept of offering your customers with seafood. Midscale and upscale restaurants might not do well with seafood because prices tend to change every now and then making it hard for them. In the process of buying seafood for you quick service restaurants, ensure that the products are not only fresh but they also meets the recommended standards.Do not waste time and money shopping for items when you are in doubt because your customers might not be impressed as well.
Identify your niche
Just like any other business, restaurant startup requires you to curve your niche.
It does not make sense to develop business plan before identifying your niche. Despite the fact that there are many similarities when it comes to food service businesses, there are also differences.
After determining the best business you to start, you should identify the niche you want to occupy within the market. If you prefer waking up very early then casual breakfast or bakery restaurant can be the best for you. To wake late, you can start a lunch business without affecting your lifestyle in any way.
Develop a business plan
It is not possible to start and run a successful restaurant without a working business plan. It is good to put everything on paper before serving you first meal at the restaurant. Some of the most important things you must include in your business plan are a clear definition of your business concept, market analysis, menu, pricing and financial details among others. You can also include an exit plan just in case things do not work out as you expect.
How to fund the business
Before you start restaurant, you need to understand how you are going to fund it. The amount of money need to fund the restaurant depends on a number of factors including the type of business, equipment needed, marketing techniques, inventory and cost of operation just to mention a few of them.
Some of the ways that you can use to raise adequate capital towards funding your business include but not limited to the following
- Personal resources- Take time and look at your assets before starting a restaurant. Consider your savings, vehicles, equity in real estate, retirement benefits, collections, recreation equipments and other investments. At times you might realize that you have more than you thought. If that is the case, then it does not make to waste time queuing at the bank all in the name of a loan when you can raise the funds from your own resources.
Relatives and close friends- after putting together all your resources and you still need more, do not rush to lending institutions before talking to your family and friends. However, as you approach them, ensure that you do so professionally. Make them to understand the kind of business you want to establish.
- Partnership – You can start a restaurant with someone who shares the same ideas with you. Choose someone with resources and willing to invest in restaurant business so that you can pool them with yours. Similarly, you can find someone with resources but has no interest in this business. Talk to him or her to support you financially.
- Governments programs-There are very many local, state as well as federal government programs funding individuals who want to run business. You can take advantage of such programs to raise capital for your business within the shortest time.
Select the location
Many people have failed in restaurants business simply because they chose the wrong location. Not all restaurants should be situated within the retail location. If you want to start and run a business that relies on high traffic, ensure that you take into account the following
- Parking-The location should provide adequate space where your customers can park their vehicles.
- Proximity to other businesses- The presence of other businesses can work for you or against you. You need to establish the kind of businesses within the location and how they can affect you before starting your investment.
- History of the location- You should find out the previous tenants of the site and any other information about the place.
Accessibility- A good location should make it easy for potential customers to access your business. If you are going to depend on high pedestrian traffic, find out whether the businesses within their neighborhood will contribute towards the same or not.
- How will the location contribute to your sales volume? – In case you want to reach a particular sales volume ask yourself whether the location will contribute towards the sales.
- Rent- rent is yet another thing you have to look when choosing the location for your business. It does not make sense to waste money paying rent at place where you are going to make losses at the end of the day.
- Traffic density-You can use food traffic to determine whether the location is ideal for your business or not. You should find out the total pedestrian traffic as well as the number that is likely to be attracted to dine in your restaurant before beginning one.
As you develop your business, you need to know menu content and design trends. These factors play an immense role when it comes to choosing the type of food service you should run. Fusion dishes, vegetarian items, locally grown produce and organic items are some of the most popular items to consider when starting your business. The demand for wraps and pita dishes is very high within the country making them one of the best possible choices to look at when starting your business. A good menu should include special dietary requirements such as low fats, cholesterol and sodium among others to take care of customer needs. Ethnic dishes as well as spice infused dishes can make you business to stand out from the rest. You can include Vietnamese, Chinese, Thai, Creole, German, Italian or Tuscan dishes in your menu
You should consider safety regulations as far as sanitation and fire issues among others when deciding on your menu.
Hiring your staff
Do you know how to manage a restaurant?
Hiring the right employees for your business can be one of the toughest tasks. Many business stop operating after a few years because of lack of highly qualified members of staff.
To begin, you need to find out what you want someone to do before hiring him or her. In other words, you need to define the duties and responsibilities of each of your employees. With the duties and responsibilities at the back of your mind, you can find qualified members of staff from recruitment agencies.
Marketing / promoting your business
Up to this point, you are about to open the doors to your restaurant for the first time. Therefore, you need to start your business with a bang to capture the attention of potential customers within your location. Think about the kind of entertainment and fun you can provide to entice food patrons to your restaurant. You can use the following channels to get your name in the local headlines within the shortest time.
• Book a news segment so that your chef can prepare some of your dishes live on air
• Collaborate with the local sports venues, charity events and shopping malls to inform the public about the grand opening of your business
• Hand-deliver a media kit to the local newsroom and ask them to help in your pre-opening publicity for your restaurant
In conclusion, despite the high number of people who have decided to invest in restaurants, there is still more room to make a fortune out of the same. Changing lifestyles and lack of time to cook are among the reasons that make many people to prefer dining in restaurants. This has made restaurants one of the most secure ways to make money. However, it is wise to know what you need to open a restaurant before going into this field.
How to start and run a successful restaurant
Do you have plans to open a restaurant in 2016? Is it worth to invest in a restaurant? Although very many business minded persons have ventured into this sector, there is still more space considering the high number of food patrons who prefer dining in restaurants rather wasting hours at the kitchen preparing food. If you have dreams of creating your brand name and you are not sure how to go about the same, worry no more because you have come to the right place. In the discussion below, we have outlined steps that you should follow to start and run a successful restaurant in 2016.
Define your business concept
What do I need to open a restaurant? One of the first things you need to do when starting a restaurant is creating a brand name. Your brand name serves as the best foundation to come up with all decisions in your business. The right concept will help you in defining your audience, buying the right equipments as well as determining the type of cuisine you should offer. You create time to research on the number of competitors within your neighborhood. Only start the business if the concept you want to apply fits the target audience. This step will help to decide on the right size space as well as direct every other single step you are going to make. Some of the concepts you can consider include family friendly, fast casual dining, bar focused and sports theme among others. You can take advantage of any of these concepts to create a brand name for your business.
Ask some of the potential customers to give you their suggestions about the best brand name for your business so that you choose wisely. A bad name is likely to turn away some of the potential customers even before you find the opportunity to show them some of the meals offered at your restaurant. In simple words, choosing the right name is among the most important things that you should focus on when starting a restaurant in town or anywhere else.
Once you have developed your concepts appropriately and given your business a good name, it will not take long for your potential customers as well as competitors to realize your brand. Your look, values and messages are among the determinants of your startup restaurant’s success. You can hire a professional graphic designer to help in cranking out a logo as well as color scheme that will meet the needs of your brand. Start using the logo and color as soon as possible to create brand recall among those you want to attract into your business at the end of the day. Incorporate the theme, color and message in anything you going to do before the grand opening. This will help not only to know but also remember who you are. Do not rush because developing a good concept requires time and patience.
Write the restaurant business plan
Now that you have a good understanding of the kind of business you want to establish, it is time to write a working plan. A business plan acts like a guide that will help to launch your business successfully. A good business plan should include
• Executive summary- You need to state the objectives of your business in the plan. Summarize the entire plan of the business into a simple statement. State the mission and vision statements of the business under the plan to guide your members of staff.
• Company summary- The company summary should include biography (ies) of the founder(s), name, logo and entire concept as defined in the first step of developing the business.
• Market analysis summary- includes statistics as well as charts created after conducting your initial research on the market. In addition, you should indicate resident demographics of the location where you want to start the restaurant. Show the market share is likely to assume if things go as you expect. You show whether it is possible to collaborate with some of the competitors in the market to capture a great market share.
• Implementation strategy- Indicate where you are going to search for purchase/ rental property. Share with your potential partners how you are going to recruit and train members of your staff as well as details about management approach. It is also good to show how you are going to integrate promotions and technology in your business. Outline a three year outlook as well as any additional expansion goals you have for the business if any.
• Financial plan- indicate how much to open a restaurant, expected monthly expenses a, when to start repaying loans and the expected gross income at the end of the first year. You can hire an accountant or market forecaster to help you at this point in case you are not sure about the same. This is the most interesting section when it comes to lending. A good number of lenders in the country tend to look at this part of the business plan to determine whether you qualify to be financed or not.
• Appendix- The section should show any reference materials used in developing your business plan, sales forecast charts and additional research among others.
Funding your business
Just like any other business, you need money to start and run a restaurant in any part of the country. You need to identify all the potential investors and all options when it comes to funding the business. Simply take your business plan and allow the concept you have chosen to speak on your behalf to get loans. Negotiate and hope for the best outcome as you seek ways to fund your business. In case you get funding from other sources other than your personal resource, ensure that you stick to your promise as far as repaying is concerned. Some of the ways to fund your business include
- Relatives and friends- You can approach your friends and relatives to help you fund your business. As you do so, ensure that you explain to them the concept so that they determine how to help you. You have to be very professional when approaching them.
- Partnership- You partner with someone who shares the same thoughts with you to finance the restaurant or any one with funds but not interested in investing in the food service sector.
- Government programs- local, state and federal government funding programs can help you to raise the capital you need to get started and run your business.
- Lending institutions- banks and other financial institutions offer loans to business minded persons to start businesses. You only need to present them with your business plan and they will help you accordingly.
In the modern world, it is not easy to make it in any business without incorporating technology. You need to find out what to apply as a point of sale system, whether to use an advanced computer or a simple cash register system among other concepts. The other technological considerations that can benefit your business include online directories, setting a website for your restaurant and finding mobile applications that you will use in managing your business operations from time to time.
Most probably, you have an idea of the types of foods you want to offer at your new restaurant. Now, it is time you made it official and known to your potential partners and other interested parties. In case you are not going to work as the executive chef, then it means that you need to hire someone to assist you. It is the duty of the executive chef and other members of staff to come up with a menu that will be replicated from time to time.
A good menu has to fit the concept as well as brand of the business. You can create a small menu at the start and concentrate more on specialties before you expand your offerings later on. Try to experiment with descriptions and names to stand your brand can stand out.
In the process of coming up with the menu of your business think about your potential suppliers. Will you manage to get fresh fish or vegetable supplies? What products are going to order from the local food service companies? How much is it going to cost you? Moreover, do not concentrate at the main courses entirely. Instead, you should also think about beverages, salads and desserts as well. In case you want to come up with a family friendly restaurant, then do not forget to include kids menu. Apart from understanding the type of food you are going to serve, you should know how you are going to do it. Are you going to use fine China ware or food baskets? Decide whether you sandwiches will come when they are ready to assemble or you need bowls. Presentation is among the most crucial you should consider when creating your tasty menu. You will be making changes on the menu with time but the changes have to be in place before you launch the business officially. This will allow you adequate time to find suppliers and get the menu printed before the grand opening.
Design the restaurant space
Now that you have funds and menu for your restaurant, the next thing is designing your space. You can lease or purchase property for your business. Space planning is very essential when designing restaurant seating for your customers. Determine the number of people you want to seat and the size of tables as well as chairs needed in your business. Consider the layout and floor space available when making your decisions. The best restaurant space should clearly reflect your business brand. You should design the space, order furniture and other equipments needed in the business six weeks before the grand opening day.
Hiring and training your employees
Determine the number of people you need in your staff and duties to be performed by each of them. As you recruit, ensure that you go for trustworthy, dedicated and hardworking individuals so that you can turn them into a formidable team. After hiring, train them about key messaging and theme of your business. If possible, you can hire professionals to help you train your staff. The members who make up your staff will act as a link between you and potential as well as loyal customers. Therefore, you cannot afford to take any chances at this point. Instead, you need to give it all your best if at you want to make it within the competitive market.
Promote your grand opening
Most business open with a meeting attended by invites only, which is not a bad idea. Alternatively, you can allow the entire public to take part in the grand opening. Spread the word through different means including hand delivered messages, events in local shopping malls, sports venues and on air.
Interact with your customers
During the grand opening, create time so that you can talk to your potential customers despite your busy schedule. Encourage members of staff to interact and ask them questions to do with their expectations. Come up with different ways that you can use to get feedback from the customers. Take time to know more about your customers at a personal level and appreciate them for attending the event. In addition, pay great attention to the meals people are ordering and what they seem to ignore so that you can make changes where necessary. Be keen on the wait and cook times. Make sure that you keep record books for future reference.
In conclusion, if you have plans of starting and running a successful restaurant then you should be ready to research. Many people start businesses without proper planning thus forcing them to shut down a few years down the line because of losses. Some of the most important aspects of a restaurant include defining the concept, developing a business plan, how to fund the business, deciding on the menu, staffing as well as marketing. Once you follow the above steps keenly, starting a restaurant should not be a daunting task even if you are not an executive chef.
Steps on how to start a restaurant
One of the best ways to invest your hard-earned income is a starting a restaurant. However, maintaining this type of business is not easy. Over 30% of investors fail because they lack restaurant marketing, accounting, staffing as well as management skills. There are many things to consider before starting a restaurant. How much do you need? How will you attract customers to your business? These are some of the questions you need to answer before opening the doors of your new business. This article has outlined crucial steps you need to follow to open restaurant.
Do you really want to start a restaurant?
To begin, you need to determine whether investing in a restaurant is the right business for you. It does not make sense to waste time and money only to realize that you made the worst decision. Most successful persons are driven by passion. With passion, it is very easy to deal with tough situations. Apart from the passion, you need to find out whether your personality really suits this type of business. Are you ready to take risks? Can you perform the role of restaurant advertising? Do you understand the concept of restaurant promotions? You need to know how to sell the business to strangers if at all you want to do better than other.
Research on the environment
The success of the business greatly depends on the environment. You need to consider location what makes you to stand out from others as well as how fast can the business grow before moving to the next step. Research on the best location of the business, the type of customers you want to attract and their needs. You can use national data on restaurant to perform your market analysis.
Talk to other restaurant owners
Talking to other business persons who own and run restaurants will help to understand the market even better. It can be a good idea to ask them about some of the challenges faced in the industry so that you can prepare adequately.
Declare on the target audience
After you have talked to three or more businessmen, you can decide on the target audience. Even though a good number of people eat in restaurant occasionally, it is almost impossible to please all of them. Only focus on the niche where your business can do well. For example, starting a restaurant that offers Italian pasta, Chinese food and steak can be very confusing to most of the potential. Instead, you need to specialize in a particular category to create a brand name. Choose only a few things and do them to your level best. Furthermore, think about the population within your location. Are you going to deal with families, professionals or people who want fast foods? Decide whether to start a fast food, midscale or upscale restaurant. Understanding whether the population within your area of location prefers fine dining experience or interested in value will assist you in determining the right type of business to establish.
Select the right concept
Just like most businesses, you need a concept before starting a restaurant. A concept in this case is something that will help your customers to understand what they should expect from your business. A good concept should clearly show what you will be offering to your customers. As you choose your concept, take into account your location. For instance, a restaurant that sells fresh seafood will perform better when located near the Lake Region or ocean than anywhere else. Locating such a business elsewhere will make the cost of the ingredients to increase as well as compromise with the quality you will get at end of the day. If you decide to start a coffee shop, ensure that you maintain that identify in everything you do.
Decide whether to begin from scratch or acquire an existing business
There are two ways to own a business; starting or buying an existing business. Many owners of coffee shops and restaurants keep looking for new persons so that they can transfer the ownership of their businesses. If the business is successful, buying it can be a wise decision. In case you decide to buy an existing business, take time and do your research properly to establish the actual reasons why the owners wants to sell his or her business.
Write down you business plan
Developing a good business plan is very essential when opening a restaurant. A good plan will ensure that you do not experience nasty situations. The plan should indicate your business identity including the type of food to serve, location, long term and short terms goals among other aspects. In addition, you should present a clear breakdown of all the costs you will incur. Clear restaurant promotions strategies should also be part of the business plan.
The menu should include indicate the type of food you will be serving and how you will do it. Moreover, it has to reflect the brand of the business.
Figure out the budget
Starting and running a business requires capital. The amount of money needed to start a business will depend on its type, location, property required and scale of venture. You can use various online calculators to find out the actual value. How will you get money to start and run your business?
There are various ways to fund your business including
- Personal resources
- Government programs
- Borrowing from friends and relatives
- Loans from lending institutions such as banks and other organizations
You might need a few employees to help you run the business effectively. Outline the qualifications and duties of each of the people you want to hire before the date of the interview. You can find professionals to help in conducting the interview as well as training the new members of staff.
Promoting/marketing the business
There are various ways that you can use to promote your restaurant. You can use social media platforms such as facebook, twitter and instagram. Creating a website for your business will also make it easy for more people to know about your existence. In addition, collaborate with television and radio stations to have your chefs cooking some of the best recipes from your restaurant on air.