Things To Consider BEFORE Opening A Restaurant
Opening a restaurant is a REAL challenge.
As with most big challenges the rewards are fantastic. If you are thinking about opening your own restaurant I can assure it will be a hectic, frazzled time. I know, because I’ve done it.(a few times!)
You'll be stressed, tired, exhausted and overwhelmed getting ready to open, but the time you spend working towards opening your restaurant can become one of your fondest memories years from now. It all depends on your preparation, organization and the way your restaurant adventure unravels over the next few years.
Opening A Restaurant In Today's Economy
You simply can’t afford to be as carefree and lavish with your expenditures as you could have a few years ago.
When you are planning to open a restaurant you need to plan to create great value for your customer, at an affordable price. Whatever niche you are opening your restaurant in, make sure you can compete with the current competition and make a healthy profit.
Any monies that you overspend getting reading to open your restaurant will be monies that will have to be repaid from the daily receipts. Or cash you won't have to develop and grow. Consider this: The cheaper start, the lower your repayment cost.
“Cheap” is an interesting word.
For some owners I know $300,000 to open a restaurant would be “cheap” (without the land).
For others, $10,000 might be expensive. Just make sure you don’t spend more than you have, or more than is needed.
How much money you spend opening a restaurant does not improve your chances for success!
Keys To Success When Opening A Restaurant
- market research to prove your concept works
- understanding of today’s methods for attracting and retaining customers
- a menu that is desired by the demographic in your target location
- a well researched, optimal location
- a decor and theme that is suited to your target markets lifestyle
- a budget that is reasonable and lean
- a business plan that is short on assumptions and long on proven examples
- a business plan that has been dissected by someone with restaurant experience
- an owner who understands the “insider tips and tricks” to keeping a restaurant open
- an owner who understands how to hire, train, delegate and retain great staff
- an owner with a passion for the restaurant business
- an owner’s family who understands the owners passion
Tips For Opening A Restaurant
* Experience is important
It is certainly beneficial to work in a restaurant at different levels before opening a restaurant yourself. In this way you will understand first hand about what types of things transpire in the day-to-day affairs of running a restaurant. It is very important that you have adequate practical knowledge before opening a restaurant, in this way you will not risk loss that is often caused when only theory is involved in the planning.
* Identify your target market
Before you decide where you'll be opening your restaurant, you should know what your target population is. The menu will very much differ on the basis of this target, so will the internal decor and ambiance. Decide whether you want your restaurant to be a hang out for students, a bar or an up-scale family restaurant. Your business plan will be based on this decision.
* Select what type of food will be served
The menu is another crucial decision you have to make before opening a restaurant. You will need to have a specialty and an overall theme. Think about what you want people to identify with your restaurant with the best sea food, great Chinese meals, excellent local cuisine, specialty gourmet pizzas? This decision will create your niche in the market.
* Location
Depending upon the target you aim for you will need to look for a great location. The location to be perfect should be easily accessible, highly visible and have plenty of parking spaces.
* Budget
It is necessary to have a realistic budget drawn up that is backed up by a sound business plan. The budget is necessary for proper planning of resources and the business plan is a must if you are planning to apply for a business loan. Making a budget is a great first step to deciding whether you know this business, or you are just making assumptions and guessing!
Opening A Restaurant And Keeping It Open!
Anyone with enough money can open a restaurant! To keep that restaurant growing and generating cash requires some expertise. There is a terrific feeling and reward that comes with planning to open and restaurant, and then actually opening a restaurant. Opening day is amazing (and hopefully there will be real customers there!)
Start planning and learning all about the changes in restaurant marketing and promotion, and get ready for your adventure. There will be a lot of people opening a restaurant in the next few years, and I hope you are one of the successful ones!