How to Be Successful With a New Restaurant
Making it through the first 12 months as a restauranteur can be challenging, because about 1/3 of all restaurants in the United States don't make it past the first year. The biggest reason is that many of them were under-capitalized, while others failed for a variety of problems they could not overcome. You'll stand a great chance of not only surviving, but prospering, if you have developed a good concept and have a worthwhile location. But that's not all you need to survive. Here are some other things you should think about to make your restaurant successful.
Other People Are Reading
Instructions
-
-
1
Know the restaurant business, or hire someone who does, because there are hundreds of details that, if done incorrectly, will cost you thousands of dollars. For example, if you are new to the business, you have not yet learned the art of buying food and other necessities. This is rudimentary to a person with experience; and it, alone, can spell the difference between success and failure of your business.
-
2
Prepare a business plan. This is one of the most important things you can do to be successful. Ask your lawyer or accountant who is the most qualified person to write your plan, and be prepared to pay considerably for it. Once it's completed, your chances of success will rise dramatically.
-
-
3
Know the market before you choose a concept. The worst thing you can do have a restaurant that is doomed to fail from the day it opens because there is so much competition in the market for that category. For example, let's say you are planning an Italian restaurant, but a national chain of Italian restaurants will soon open multiple locations in your city. Unless your concept is uniquely different from theirs, you will be fighting for every percentage of market share. If you are not prepared to do battle with them, consider changing your concept.
-
4
Recognize that your menu will determine your profitability. The casual diner will see lists of items on the menu from which to choose. If the menu is designed professionally, it will encourage him to purchase the items generating the highest prices and margins.
-
5
Begin building your all-star team. Find a lawyer and an accountant that have hands-on restaurant experience, as well as a banker who knows the industry. Unless you have years of experience in running a restaurant, you might seeks out a consultant who concentrates on your business. He will be well equipped to advise you of the staffing levels of your venture and where to find your key people.
-
6
Put on your marketing hat long before your restaurant opens. Decide early how you will generate interest in your restaurant and how you will get people to try it. From door-to-door fliers promoting the latest local Chinese restaurant to TV ads that invite people to your fancy place, you must determine how much money you will need to attract a crowd of diners that is large enough for you to turn a profit.
-
1
