For many entrepreneurs, owning and managing a restaurant is their dream job. The global pandemic caused the majority of restaurants to close down their indoor dining spaces and for some, forced them to close permanently. This may have put the dream on hold.
Restaurant owners across the country are still feeling the effects of Coronavirus, as the industry struggles to recover. Food service providers have adopted a number of strategies to help weather the crisis by developing new restaurant trends as well as diversifying revenue streams to meet its current challenges.
Many people believe that it is still possible to own a restaurant. This article outlines a checklist to help entrepreneurs get started.
This guide will help you decide if a restaurant is the right business for you.
And at the end, you’ll find answers to some of the most frequently asked questions on how to start a restaurant business…
It takes careful planning to start a restaurant. However, it is easier to manage the process if it’s broken down into smaller steps. To help anyone navigate the process of opening a restaurant, below are the simple steps to consider.
Many who dream of opening a restaurant often put a lot of thought into the restaurant concept. startup restaurants
The most enjoyable part of the planning process of startup restaurants involves choosing the concept for the business.
It includes the type of restaurant, as well as the cuisine and service style. The concept should also influence the interior design of the restaurant.
The following are just a few examples of restaurant concepts that could spark an aspiring restauranteur’s imagination.
The restaurant brand is more specific and can be referred to as the primary means of communicating the company’s mission and identity with the public.
Additionally, the restaurant name, logo, menu design, and merchandise all need to reflect a consistent image of your brand. The brand identity should influence how the advertising channels are used.
For those who already have a location in mind, the target demographic can help guide in developing the restaurant concept. If the concept comes first in the planning process, the location needs to have a demographic that’s able to support it.
The next step in opening a restaurant is creating a menu. While choosing what menu items to include should be enjoyable for all foodies, it is essential that the items are carefully selected.
The menu will determine what kind of equipment is appropriate, the skills that the staff should have, including what type of crowd is attracted to that menu.
For example, if the restaurant plans to offer a dessert list with delicate French pastries, a pastry chef will be needed along with the necessary supplies. For pizza, one would need proofers, dough mixers, and chefs who are skilled in handling dough.
A solid business plan is essential for any business venture, including a restaurant. For those who are not familiar with how business plans are created, this is the most difficult step.
Business plans for restaurants cover all aspects of the new business from your restaurant idea to your financials.
The plan’s purpose is to provide details about your business that can be used to sell potential investors.
Restaurant loans can be obtained by submitting a restaurant business plan. This will prove that the venture is viable.
These are the key components of restaurant business plan:
Next, you need to get funding to open your restaurant. Most people don’t have enough money to cover the costs of opening a restaurant. This is where outside funding will come into play.
Start by estimating the total cost of opening a restaurant and the daily operating costs. This information can be used to forecast the restaurant’s total costs for the next year and create a budget.
To determine how much funding the restaurant will need, take the budget for the restaurant into account. Keep in mind the cost of equipment, licenses, building repairs, staff salaries, and so on.
Here are some options to get funding:
When selecting a location for the restaurant, these are some of the most important aspects to keep in mind:
It is not easy to choose a space. Some experts recommend leasing. It gives you more flexibility to grow or make changes in the business during the early stages.
Multiple licenses and permits at the federal, state, and local levels are required to open a new restaurant. When applying for permits and licenses for restaurants, it’s a good idea not to miss a step. These licenses are absolutely essential.
Two components are required to design the layout of your restaurant: the front-of–house space and back-of–house space. Each space has its own requirements.
You might consider consulting an industry expert for assistance in creating a custom design layout for the new restaurant. This ensures that the physical space is in line with the workflow. In this way, daily operations will be more effective.
The following factors are important in the space planning of the dining area:
The kitchen layout is as important as the dining area layout. Take into account the flow of the service and ensure that there is enough space for the following tasks:
The kitchen must have the right equipment before the restaurant opens.
There are many kinds of equipment a restaurant needs. Refrigerators and cooking equipment are examples of such items.
It depends on what the menu serves, so some specialized equipment and tools may be required like pasta cookers and pizza deck ovens.
Consider the layout and size of the kitchen before making any decisions, such as whether there is a need for narrow-depth or double-stacked units to save space, for example.
Buying restaurant equipment online has many advantages. The ability to shop online, compare prices, and research features while opening a new restaurant is an important benefit.
Search for an online supplier who offers fast shipping and wholesale prices on commercial restaurant equipment.
Leasing food service equipment is a great option to save money and have more capital available for other items. Alternatively, restaurant equipment financing can also be a way to secure equipment as this allows owners of restaurants to get capital to purchase equipment which also serves as collateral.
It is also important to find a supplier of food, disposables, or any other items that may require reordering regularly. Likewise, working with a supplier that offers a variety of products with free shipping and discounts for bulk orders can save a lot of money.
Take advantage of additional benefits like the Webstaurant Rewards(r), Visa Business Card where customers can get rewards by purchasing from the WebstaurantStore.
Opening a restaurant is a chance to establish a great work culture right away. It is crucial to consider the work/ life balance of the future employees by considering employee benefits, training programs, incentives, and other related factors.
Efforts to retain employees will be more successful if these are prioritized. A management team can be hired to support this mission as well as hiring goals.
Take note of job roles and positions necessary to operate the restaurant on an everyday basis.
Think about how many days that the restaurant will be available during the week, and how many shifts will run each day at the front- or back-of-house.
Advertising is essential to attract customers and spread the word about the newly established restaurant. It gives basic information about the restaurant so potential customers can find out where it is and what type of cuisine is being offered.
A successful advertising campaign should generate excitement around your brand. Here are some tips:
It’s a common saying that practice makes perfect. And this holds true even for starting a restaurant. A restaurant soft opening is a rehearsal run that will help in the preparation for the actual grand opening.
Invite only a few guests to your soft-opening, typically the staff’s family and friends only. This will allow for any issues in the service to be sorted out before the real grand opening day.
Below are some of the most popular soft opening ideas:
Despite all the difficulties of the past year, the restaurant business will continue to be an integral part of the global economy.
As trends in the restaurant industry continue diversifying, there is more space for new restaurants to enter the market and capitalize on new consumer interest.
This restaurant opening guide can surely help anyone create a unique restaurant concept.
Restaurant owners can expect to make an average salary from $24,000 to $155,000 annually. That’s quite a broad range. These projections also take into consideration the restaurant’s location, size, menu options, and amenities.
Yes. Restaurants can be very profitable. They have, however, very low profit margins. Profitability is dependent on many factors, including the size and economics of the restaurant. A new restaurant can turn a profit in an average of 2 years.
Entry-level jobs start at $55,307/year while the highest paid workers earn as much as $80,000 annually.
Point of Sale is a system used in the retail and restaurant industries. These computerized systems allow business owners to monitor sales, cash flow, and food inventory which can greatly simplify the bookkeeping process.
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
With this digital real estate program, you can have the ability to completely walk away from manual labor!
Sound too good to be true?
Of course it does!
But it isn’t…in fact, business owners wish they had this skill!
All you have to do is build and rank a website and forward the jobs off to a business owner in town, you could even email it to them!
This works for literally any service based business, tree service, plumbing, towing, etc.
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
Let’s say you build and rank the site and only 20 jobs a month come in. The average tree service job is anywhere from $500-$2000!
That means at bare minimum you have an asset worth $1000 a month!
See why they call it digital real estate now?
That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Unlike the passive income ideas I mentioned earlier…
This one actually allows you to collect that without working in a brick and mortar business all day.
Truly passive income!
The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
You will learn the importance of keywords, website name, how to send call notifications via email, backlinking, etc.
Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.
Digital real estate allows you to have passive income with most of your day being spent OUT of the brick and mortar landscape.
Now, I know you probably have tons of questions… So, check this out to learn more.