How to Start & Run a Successful Restaurant

Ambiance is an important factor in restaurant success

Starting any type of business can prove challenging. A restaurant business is especially arduous because the new owner must juggle location, inventory, staff, customers and costs. However, proper planning and an understanding of the industry can make starting and running a restaurant much more manageable.

Instructions

1. Make a business plan. It's important in any business to have a plan that outlines overall business goals, restaurant type, estimated profits and expenditures and other pertinent information. Visit BPlans.com, to view sample restaurant business plans. According to Restaurant News.com, an effective business plan must include accurate research of the market, customers, financial issues and business atmosphere.

2. Collect the capital. Restaurant start-up costs vary with each business. If you are buying an existing diner or eatery, a blanket price may cover most of the start-up costs, such as kitchen equipment, seating, cash register etc. According to Forbes.com, a blank-slate approach (or starting from scratch) will cost between $100,000 and $300,000. This cost includes industrial cooking and venting equipment, freezers, tables, shelving, counters and more. Many new business owners fail because they do not accumulate the proper capital prior to starting their restaurant. Apply for bank loans and business grants to collect money. Also consider asking family, friends or private investors to put money towards the start of the business.

3. Meet customer needs. Customers choose restaurants based on many factors. A few of these include location, menu, atmosphere, service and price. According to a 2010 survey in Restaurant.org, 73% of people report that they try to eat healthier at restaurants than they did two years ago. New restaurant owners should consider these statistics and try to follow the trends to increase interest in their restaurant specifically. Tailor the menu to include healthy items. If the restaurant is located in an area that attracts families, add elements that appeal to them, such as a special kids' menu or colorful decor.

4. Design or choose an appropriate space. The restaurant's decor and space should coincide with your goals and vision. According to AllCullinarySchools.com, an effective restaurant design will include two major components: functionality and a tranquil ambiance. Consider these two components in every feature of the restaurant, from booths for seating to bathroom lighting.

5. Hire quality staff. Employees can make or break a restaurant because they are the first impression that many customers receive. When hiring staff, choose people with presentable appearances, good references and restaurant experience. Entrepreneur.com reports that 40% of people quit their jobs because they do not feel appreciated for their contributions. Make sure to reward employees for their efforts and set proper expectations for the staff.

Tips & Warnings

• Teach servers how to sell additional menu items to increase sales.

• Advertise the restaurant in newspapers, yellow pages and online.

• Employee theft can damage a restaurant business so find ways, such as video cameras, to deal with this issue.

References

• Restaurant.org: Facts at a Glance
• Forbes: How to Start a Restaurant - Startup Costs
• Entrepreneur.com: How to Prevent Employee Turnover
• AllCulinarySchools.com: Restaurant Management: Five Tips for Success