The Opening of a New Restaurant

Will your restaurant be casual or formal?

Opening a new restaurant can be very difficult, particularly if you are opening an original restaurant rather than a franchise. Begin by determining what type of restaurant you want to open. The next steps include drafting a business plan, finding a funding source, planning a menu and hiring staff.

Business Plan

Carefully analyze your market strategy, potential customers and existing competitors. You should also consider funding sources, what products and services you will offer, how management and ownership of the restaurant will be handled and what factors will lead to your restaurant's prosperity or decline. A well-thought-out business plan is necessary to convince a bank or other investors that your restaurant can prosper, which can result in additional funding.

Menu and Food Choices

Daily specials are popular in the restaurant industry.

The type of food your restaurant will serve and the menu you offer will be pivotal to your success. One common mistake made by new restaurants is that they offer too many menu selections, which results in the need to stock many ingredients and specialize in many dishes. If maintaining premium food quality means a smaller menu, your customers will thank you. Some restaurants have no set menu at all and simply provide daily specials. Do not forget to put your menu online for takeout orders or to attract potential customers.

Location

The decor of your restaurant will help to convey the mood you seek.

Your location will not only determine your potential customer base, but it will also play a huge role in your day-to-day operating costs. For new restaurant proprietors, it may be better to start off in a smaller location and move up once you've established your culinary skills and dedication to customer satisfaction. One major factor in location is whether or not your restaurant will serve alcohol. In some states, liquor licenses are tied to locations.

Technicalities

Don't overlook technical details when opening a restaurant. Make sure that your location is zoned for commercial activity. Register your business name. Get a tax identification number, and register for state and local taxes. Obtain the business licenses and permits required in your area and take care of the responsibilities that arise from employing other people.

Promotion

Everyone loves free samples.

Unless you are in a small town with very few restaurants, you will need some type of promotion once you are ready to open. Many restaurant owners opt for advertisements in phone books, on television or on large billboards. Although these methods have their appeal, one easy way to promote your food is to give samples away to local community groups. If you are preparing a top quality product, it will speak for itself and you will have customers in no time.

References

• The Boston Globe: How to Open A Restaurant, With No Experience, In a Deep Recession; Tse Lim and Diana Kudayarova; April 2010
• Directory M:Starting a Restaurant Business Pennsylvania; Samuel Oliver
• The Wall Street Journal: How to Open a Restaurant; Colleen DeBaise; March 2011
• US Small Business Administration: Follow These Steps to Starting a Business
• Entrepreneur: How to Start a Restaurant; October 2009.

Resources

• Restaurant Commando: 5 Key Principles Of Restaurant Marketing; January 2009
• Open a Restaurant: How to Open a Restaurant
• Bplans.com: Ethnic Food Restaurant Business Plan