Opening a new restaurant isn’t as glamorous as it looks on television. It comes down to hard work and passion. It’s important to understand all of the work that’s involved when opening and running a restaurant. Here are five things you should know before getting into the restaurant business.
A Clear Restaurant Concept
You can’t open a restaurant without a concept. Not only do you need a clear concept, but you have to determine which type of restaurant you want to open. This can greatly depend on a wide variety of factors. There are some people who want to share their favorite dishes while others are more interested in franchising a restaurant.
Seeking a restaurant franchise can provide you with plenty of opportunities, such of which include built-in marketing and name recognition. But restaurant franchises are expensive and you have to follow strict guidelines. Some of the most popular restaurant concepts include buffets, cafes and bistros, casual restaurants, catering, ethnic cusine, fine dining, food trucks, and franchises.
Interest in the Restaurant Business
Not everyone is cut out for the restaurant business. You may enjoy food and cooking it, but so do hundreds of other people. Just because you love to entertain doesn’t mean you’ll make it as a restaurant owner.
Are you someone who can work long hours? Can you go without the occasional paycheck? Can you afford your own health insurance? Do you know which high-tech POS system to use? These are all important factors to consider when starting your own restaurant. While being your own boss has its share of perks, it also comes with lots of responsibility.
Advertising for Your New Restaurant
Advertising is essential for your restaurant in order to attract new customers. Before you start posting on Facebook and in the local newspaper, you need to determine who your target audience is. Do you want to attract business people, families, or singles? Are you looking to bring in the after-hours crowd or seniors?
Once you’ve determined your target audience, consider how much you’ll need to spend on your first-ever advertising campaign. How do you plan to market those people? Are they reading newspapers or hanging out on social media?
Advertising your new restaurant shouldn’t be taken lightly. It’s an important part of successfully launching a business, so don’t skip this step.
Insurance and Licenses
Like most businesses, restaurants need insurance and licenses. There’s more involved with this business than you think. You’re responsible for every aspect of the business, including insurance, liquor licenses, and safety procedures. It’s important to learn about the basics of running a restaurant before working on your business plan.
Location is also essential for the success of your business. It doesn’t matter if you have great prices or delicious food, if the location is bad, then your business will suffer. A great location consists of ample parking and increased foot traffic.
If you don’t want to commit to a full-fledged restaurant, catering is a safe way to dip your toe into the industry. A self-catering business may be the best option if you like to cook and entertain. Launching a self-catering business requires a small budget that can be used towards opening a restaurant in the future.
Funding
Opening a new restaurant can be costly. Depending on the location, size, and theme of your restaurant, you’ll be spending a lot more money than you anticipated. Even a dive bar could set you back $50,000 or more. That’s why it’s preferable to get into the catering, food truck, or pop-up restaurant business. Each of these restaurant concepts are cheaper than brick-and-mortar restaurants.
In order to receive any type of funding, you’ll need a strong business plan. A business plan is important for anyone who’s starting a new business. As you write your business plan, consider the problems you may come across, such as health codes, licensing, and tax laws. You should also consider the costs for equipment and supplies such as a high-tech POS system.
Opening a restaurant can be fun and fulfilling. If you love food and people, then your new career will be much easier. You get to be a part of something special which makes it even more exciting.