Starting a Restaurant Equipment and Supply Company
Restaurants need a consistent supply of equipment and supplies to meet the daily demands of hungry customers. Owning a start-up business, you should seek to serve a need that is not being served by existing restaurant equipment and supply companies. You should be more responsive to the needs of your customers than your competition. Use this to your advantage as you build your business.
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Instructions
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Research the market in your area. Look at the types of restaurants and the existing competition. Consider what makes the existing supply companies successful. For example they may provide specialty items that restaurant owners need. Think about what needs are not being met. As an example, sushi restaurants need special mats to roll the sushi as well as other specialized equipment. It could be that these businesses are not being served adequately by existing businesses. Look for these niche opportunities and seize one.
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Write a business plan based on your research and analysis. Define your business goals in a clearly written mission statement. Describe the business in detail. Include information about the type of equipment and supplies you will provide, sources for those products, prices, a marketing strategy, location for your storefront or warehouse, and financial projections. Equipment may include pots, pans, baking dishes, mixers, ovens, ventilation, specialized pans such as woks, grills and restaurant service dishes. The business plan should detail the first year in business. Attach any documents at the end that will be necessary to establish the business.
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File a business registration and tax form with state and federal authorities. As a supply company you may be required to file for a permit and inspection of your building. Check with your local authorities for specific regulations in your area. To buy equipment wholesale, you will need a reseller license from your state. A restaurant equipment and supply company should form either a limited liability company or a corporation. These business structures provide a level of protection that separates the business owner from the business and also provide opportunities for raising funds through shareholders.
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Meet with an insurance agent. Discuss insurance options. As an equipment and supply company you will need property insurance to cover your property from theft or damage. Equipment and supplies for restaurants are expensive and should be insured in the event of theft as well as potential damages while it is in transit. Describe your business in detail so that the agent can put together a comprehensive package.
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Select a storefront or warehouse with an adequate storage area based on your market research. Locations for a restaurant equipment and supply company may include restaurant districts and shopping districts with a high concentration of specialty stores. These locations are ideal since you will be supplying professional and home chefs looking for high-end.
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Stock your store with restaurant equipment and supplies based on your market research and niche within the industry. For example, you may serve as a supplier for coffee and espresso shops. Your equipment in this case would include coffee and espresso makers, grinders, carafes, serving equipment, and other high-end products specific to the coffee and espresso shop industry.
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Advertise your new company in local magazines and other publications that your target market would read. Send a mailing to restaurant owners. Network with other business owners, in particular those in the food service industry. Attend trade shows.
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References
Resources
- Photo Credit at the restaurant image by Dmitry Nikolaev from Fotolia.com
