The Basics of Starting a New Restaurant Business
Thursday, June 7, 2018, 6:00 AM | Leave Comment
Starting a restaurant business is no small thing. From choosing the right location, to picking the perfect name and buying equipment, there are a lot of tasks that need taking care of.
We’ve come up with this guide in order to help you get started with opening a new restaurant business.
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Picking a food concept
When it comes to restaurants, figuring out your core food concept is definitely the number one thing. It’s what will drive your success and your ambition.
As a rule of thumb, people know what kind of restaurant they want to open before the planning process.
Nevertheless, if you are simply certain that running a restaurant would be your dream, but have no idea what food concept to pick, start researching the competition.
See if there are steakhouses, ethnic places, pizzerias, or other specific restaurant types near the available locations you’re choosing from and act smart.
Opening a pizzeria near a well-known pizza place won’t drive people your way; this isn’t a healthy type of competition.
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Coming up with a business plan
Like any other business, starting a restaurant business requires a solid, comprehensive, accurate business plan.
Your restaurant business plan should include: an in-detail description of your concept, an outline of your menu and pricing, a target customer description, marketing plan, as much financial information as humanly possible, details of hiring and training your employees, etc. Everything else that comes to mind in this respect should be written down.
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Dealing with funding
Ideally, you will open a self-funded place that won’t have to go through interest and loan headaches.
However, more often than not, you’ll have to opt for a business loan, and you need to choose carefully here.
First of all, you should consider the inherent risk factor, meaning that you have to come to the terms with the fact that if your business goes under, you’ll still be responsible for repaying the loan.
Secondly, as a first-time owner, you should present a rock-solid business plan, because the lenders will be biased against you.
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Taking care of the legal aspects
When it comes to dealing with the legalities, restaurant businesses need much more work than your typical companies.
First of all, you need to choose a location with adequate zoning. According to zoning ordinance, a restaurant can’t be located in a residential zone.
Next, you need to make sure that your place is cleaned according to federal, state and local safety laws; this might not apply to your typical businesses, but it’s definitely a vital part of starting a restaurant!
Consider getting a quality heat exchanger system that meets all the legal requirements. Of course, all other licenses and permits go without saying.
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Contacting food service vendors
There is nothing more important than choosing reliable food service distributors, meaning that they supply good quality products and ensure consistent, prompt delivery.
Start by looking online and by asking around the other restaurants in your area. Be adamant here; you need to find out why a restaurant is using a particular supplier.
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Plan the grand opening
Finally, it’s very useful to organize a grand opening with products at discounted prices. This way, you’ll make sure that you’ve obtained a base of returning customers that will soon turn into your bread and butter.
Restaurant businesses are risky and difficult to start, but if you are considering opening up a place of your own, you are probably very passionate about it.
Start by picking the food concept, come up with a solid business plan, take care of all the legalities involved, find the perfect way to get funded, an ideal food service vendor, and make an awesome grand opening! Everything else is pretty much out of your hands.
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