Build a brighter future with customized investment solutions from Dan Rhoads. Schedule a consultation!

‍

Fundamentals of Opening a Restaurant That Succeeds Long-Term

‍

If you love food and serving people and have a mind for business, owning a restaurant could be your dream career. But opening a restaurant is an intensive process that’s not for the faint of heart. And many entrepreneurs focus either too much on the creative side and not enough on logistics, or vice versa. Here’s a quick-start guide to opening a restaurant!

Settle on a Concept and Brand    

Choosing your restaurant concept is the most fun part of planning because it means you can let your imagination run wild. But you still need to come at it with a strategy and stay on task to keep moving through the restaurant planning process. Think about what type of restaurant you hope to start, the cuisine and service styles, and the overall interior design concept.

Refine Your Menu    

Another fun part of planning the restaurant is creating the menu. Carefully decide which menu items you will offer because it will influence the staff you hire, the equipment you will need, and the customers you will attract.

For example, your chefs will need to know how to work with pizza dough and you'll need dough mixers if you're opening a pizza joint. But you'll need a pastry chef and the appropriate tools if you are going to serve desserts and other delicate treats.

Establish a Business Plan  

As with any type of company, you will need a solid business plan for your restaurant. Create a document that clearly outlines your company's goals and strategies for success. Here are a few components to include:

●      Company description

●      Restaurant concept and menu

●      Ownership and management structure

●      Staffing requirements

●      Marketing strategies

●      Financial forecasts and funding needs

‍

Get Accounting Software

Any business, whether large or small, needs to keep track of its finances. This includes knowing how much money is coming in and how much is going out. It also involves tracking inventory, revenue, and expenses. Accounting software can help businesses to stay organized and efficient. By keeping track of all financial transactions in one place, businesses can save time and money. In addition, cloud accounting software can provide valuable insights into the financial health of a business. This information can be used to make better-informed decisions about where to allocate resources.

Get Funding    

Unless you have adequate cash on hand, you'll need to obtain funding for launching and running your restaurant. Many entrepreneurs seek grants, small business loans, and traditional commercial loans. It's also worth researching crowdfunding, investors, and business lines of credit as options.

Lease a Space

Many factors are at play when it comes to choosing the right location for your restaurant. The commercial space must be visible and accessible to your target market. Also, consider labor costs in the area; a higher cost of living means paying higher wages to your staff.

And of course, research the local competition before committing to a space. You don't want to open your restaurant in a neighborhood that has many other restaurants with similar concepts.

Choose a Logo

A logo is more than just a pretty picture; it's an essential part of your restaurant's branding. A well-designed logo can help customers remember your business, and it can communicate the values and style of your restaurant at a glance. Perhaps most importantly, a strong logo can help your restaurant stand out from the competition. Instead of hiring a specialist like a logo designer, you can use a free logo maker and download. Choose a template and then customize it by adding images, icons, and even animated elements.

Obtain Your Permits and Licenses

Every restaurant owner must obtain specific permits and licenses at the federal, state, and local levels. Here are a few to look into:

●      Business license

●      Employee Identification Number(EIN)

●      Foodservice license

●      Liquor license

‍

Handle the Details    

The layout of your restaurant plays a critical role. You must think about seating capacity and the dining room furniture you will use. You should also consider the overall décor, ambiance, and cleanability of the space. A restaurant that is hard to clean will require your employees to spend too much time on maintenance when they could be serving customers.

Moreover, start researching the different types of equipment you’ll need for your restaurant so you can budget accordingly. Then, you can start looking for a food supplier and recruiting potential candidates for your staff.

Start Marketing Your Restaurant

As you start inching toward your launch date, create a professional website and start promoting your new restaurant through social media, email marketing, local print advertising, and any other relevant channels. Remember that no matter how good the food is, people must know about your restaurant if they're going to show up!

Conclusion      

If you’re a foodie and an entrepreneur, opening a restaurant might make a lot of sense. Just make sure you are prepared to go through a stringent process and can dedicate the time and energy necessary to lay a firm foundation for your business. You'll be serving your favorite food and building customer relationships in no time!

Image via Pexels

References

“44 Unique Restaurant Ideas to Inspire Your Theme or Concept,” On the Line, from Toast. Accessed June 7, 2022. https://pos.toasttab.com/blog/on-the-line/restaurant-ideas

 “How to Create a Restaurant Menu from Scratch,” Budget Branders. Accessed June 7, 2022.https://budgetbranders.com/blog/how-to-create-a-restaurant-menu-from-scratch/

 “How to Write a Restaurant Business Plan (Step by Step Guide with Samples,” Eat App. Published August 31, 2021. https://restaurant.eatapp.co/blog/restaurant-business-plan

 “Simplify Your Accounting,” Quickbooks Online, from Intuit. Accessed June 7, 2022. https://quickbooks.intuit.com/accounting/

 “Food for Thought: How to Find Your Next Restaurant Space,” Chinburg Properties. Accessed June 7, 2022. https://chinburg.com/how-to-find-your-next-restaurant-space/

 “Make Logos for Free Online,” Adobe Express. Accessed June 7, 2022. https://www.adobe.com/express/create/logo

 “27Restaurant Marketing Ideas: How to Market a Restaurant,” Wordstream, byLOCALiQ. Accessed June 7, 2022. https://www.wordstream.com/blog/ws/2015/01/14/restaurant-marketing