Ready to Start a Restaurant Business?
From piping hot stews to the delicate preparing of frosted cakes, restaurants exist to serve hungry customers who want the best food around. If you want to start a restaurant that serves the best food, you'll need to make sure you have the best plan. From financing to creating a menu, every beginning step in starting a restaurant is important for a successful end result.
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Finances
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A person's finances have a large impact on whether a restaurant becomes a success. The startup costs for a restaurant depend on the location and size and type of the restaurant, but you should generally expect to invest anywhere from $100,000 to over $1 million. RestaurantOwner.com conducted a survey of various restaurant owners, and the average startup cost without the purchase land was $451,966. The average startup cost with the purchase of land was $700,866. You can obtain financing by taking the funds from your savings or retirement account, by applying for business loans and grants or by attempting to attract angel and venture capitalists. You will probably suffer a tax penalty for withdrawing funds from a retirement account, unless you're of age to withdrawal your money penalty-free.
Licenses and Permits
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Every business needs to obtain proper licensing and permits. Unfortunately, the necessary licenses and permits vary from state to state and city to city, so you'll need to check with your local government or look on Business.gov for state-specific information. You will need a business license, a health permit, a doing business as permit, and a zoning permit, regardless of which state or city your business is located in. You will also need a liquor license if you plan on selling alcoholic beverages.
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Identity
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There were 579,102 restaurants in the United States 2010, according to The New York Times. You're going to face a lot of competition from other eateries for customers. Developing a brand identity is one of the first steps in creating a marketing plan that will pull people in. Develop an identity that goes beyond the first layer. For example, designating your restaurant as a steakhouse defines the basic identity of your restaurant, but dig deeper. Ask yourself if you want to open a steakhouse with a Western theme or a more modern theme. Do you want to offer a party-type atmosphere with dancing and music, or do you want a more sophisticated white-tablecloth, white-napkin, dress code-enforced steakhouse? Your identity will separate you from the rest of the competition.
Location
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Location is important for any business, but you may be able to get away without placing your business in a prime location. Prime locations are locations that see the most traffic, such as those by malls and on the main drag. Prime locations also come with the highest price tag. You can start your restaurant in a location that's not as well-known, but you have to market your business and offer service that promotes worth-of-mouth. Regardless of which location you choose, make sure it's accessible, safe and is large enough for your business.
Menu
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Your menu is the heart of your business. Keep with your identity when creating your menu. Don't offer a lobster dinner if your restaurant is designed around burgers and milkshakes, for example. A diverse menu that's readable and stylish is the best way to fulfill the customer's expectations. Even if you mainly focus on seafood or steaks, offering a variety of different seafood platters and dinners or a variety of different steak combinations will appeal to a wider variety of tastes.
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References
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- Photo Credit sirloin-steak, tenderloin-steak-Filet with Salad,potato puree image by Svenja98 from Fotolia.com
