Surviving as a Restaurant in a Small Town

A small-town restaurant can become a local institution if managed well.

Small towns are both rewarding and challenging places to operate any business, and restaurants can be especially problematic. On the positive side, occupancy costs are often lower in a small town, and in the absence of major employers you can often have your pick of employees. However, the modest number of potential customers can be a limitation on your growth.

Word of Mouth

Word of mouth is important to any business, but in a small town it's your absolute life's blood. Make sure your dining area and table settings are as impeccably clean as you can make them, because diners judge your kitchen by the dining room's appearance. If your kitchen is visible from the dining area, make sure it's clean and well kept. You and your cooks should also be neat in appearance at all times, even if it means keeping spare jackets and aprons on hand.

Know Your Clientele

It's important to know your clientele. Are you feeding the fishermen and fish plant workers of your coastal community, or the big-city lawyers and bankers who cottage nearby and visit on weekends? Some small-town restaurants thrive on homestyle comfort food or traditional favorites, while others carve out a regional or even national reputation for fine dining. Researching this one question may be your best investment during the planning stages. If you have the resources to provide any style of food, pick the one that promises to be most profitable. If you do just one thing well, you need to know it will sell in your town.

Community Involvement

For those from larger centers, small-town life can sometimes feel claustrophobic, because "everybody knows everybody's business." However, this can be a powerful tool for a savvy restaurateur. If the local soccer coach brings his team every week for pizza, give the team some healthy homemade energy bars as a game day snack once in a while, or offer to donate food to their annual fundraiser. Provide cooking classes for adults and children, which can be profitable while raising your profile. Invite teachers to bring their classes for a restaurant tour and demonstration. Participate in local events and festivals, with professional-looking signage.

Cost Control

No matter how much business your restaurant brings in, at the end of the day you'll still need to show a profit. That means keeping tight control of your costs, because for any type of restaurant there's a limit to how much you can charge. Ask restaurateurs in other towns which wholesalers have the most favorable policies for small operators. If you can find a few like-minded entrepreneurs, you may be able to negotiate group purchasing with a local wholesaler. An industry group such as the National Restaurant Association can provide further useful advice about controlling labor, food and other costs.

References

• Today's Dietitian; Small-Town Dining: Revitalizing Main Street, USA; Sharon Palmer
• McCray and Associates; 20 Small Business Ideas for Small Towns; Becky McCray
• The Cornell Daily Sun; For Rent: The Business of C-Town; Christopher Henty
• National Restaurant Association: Profitability and Entrepreneurship

Resources

• National Trust For Historic Preservation: About Main Street