Let’s be honest, the restaurant business is sort of saturated and the pandemic has not been kind either. But fret not!
How to open a restaurant? 5 tips and tricks
Let’s be honest, the restaurant business is sort of saturated and the pandemic has not been kind either. But fret not! Opening your dream restaurant that stands apart is not an impossible task. After all, who doesn’t indulge in some good food?
Opening a new restaurant requires preparation, finances, and a sound marketing strategy, in addition to hard work and delicious cuisine. Approximately half of all new restaurants fail within the first year of operations due to various reasons. Restaurant owners are still feeling the effects of the coronavirus as the sector works to recover. To face the current challenge, the foodservice sector has adopted new restaurant trends and diversified income streams.
Here are five tips and tricks to keep your business up and going.
To open a restaurant, you probably think about the concept, design, interior, and menu.
Well, the most exciting and fun parts are all those things, but just like any other business, restaurants require extensive research work.
Take a pen and clipboard to the area where the restaurant will be located, print as many pages as possible, then spend a busy Saturday asking people what they think. Though this is the easiest way to conduct research, but also the most challenging
However, despite being a wonderful source of information, this can seem overwhelming and impractical. Most likely, there has been no research on the dining habits of people who pass by your new restaurant. Considering all this, it is always best to approach restaurant consultants who can give an insight into all the nitty-gritty of the market. This can give you an edge when it comes to setting up the right restaurant at the right place. Market research is vital not only for your personal information but also to help during the concept and design stage and the financing process. It’s quite appealing to tell a lender, that (say) 80% of people in the area want a restaurant of this type.
Concept and design
Now comes the fun part, Concept, and Design. If you’ve always wanted to open your restaurant, you’ve given your restaurant idea plenty of thought. Restaurant planning is most fun when you come up with a concept for your business. You can unleash your creativity here. Your idea should contain the sort of restaurant you aspire to create, the cuisine you propose to serve, and the service style you intend to employ. Your restaurant’s interior design should also be consistent with your idea.
If you already have a place in mind for your business, you should use the demographics of the region to create your concept. If you’re starting with an idea, you’ll need to pick a place with a population that can sustain it. While you might know exactly what you want your business to be like, it is better to have an expert opinion on this matter. Auriga hospitality consultancy helps you bring your dream project to life
Artistic judgments, like any creative undertaking (from writing a book to founding a restaurant), are frequently a blend of instinct and market research. In general, you should pursue your interest. The cuisine you enjoy making will be the meal that others enjoy eating. And, with time, your excitement will turn into skill. Choosing the menu items to include should be fun for any foodie but proceed with caution. The sort of equipment you’ll need, the abilities you should search for in your employees, and the type of crowd you intend to attract will all be determined by your menu. Getting the right insight during this process is paramount. After all, designing a menu is no less an artistic endeavour. Get the best hotel and restaurant consultant in the UAE to help you with this.
This is the crucial part. Getting the finances in place and having the right business plan will go a long way in maintaining a healthy business. To visualize expenditures, divide restaurant spending into four groups, Gordon Ramsay, the uber-famous chef, employs this strategy in his restaurants, categorizing his expenses into four broad categories:
- Labor: which includes everything from executive chefs to dishwashers, bartenders, and general managers.
- Purchasing: which includes food costs and restaurant equipment.
- The bottom line.
When you apply this technique to weeks in a month, the first week’s profits belong to the employees, while the last week’s earnings accrue to profit. On paper, this may look simple but to make it work smoothly, work you can always get expert help. Be it corporate finance consulting or just monthly operations management services, we are the best hospitality consultants in town
The placement of a restaurant is a balancing act – getting the most footfall for the least amount of money. As it turns out, the hype about location can’t always be justified. The site you pick for your business will be determined by a variety of episodes. Unless you rely substantially on foot traffic, you don’t have to be in the trendiest new retail area.
When choosing a location keep these in mind:
- Demographics – The most important aspect of the restaurant process is demographic. Always keep in mind who you are serving and find the location accordingly.
- Cost – This is a no-brainer. Always bite only the bit you can chew. Stay within your budget while finding a location. Also, look into the labor cost.
- Visibility and Accessibility – There is no use in having a one-of-a-kind gourmet restaurant with state-of-the-art food if no one can access them. If you decide to go to such a remote location, make sure to advertise your existence.
Consistency is the most critical aspect of running a business, so make sure you constantly meet or exceed customer expectations. To know more about how to kick start your restaurant business visit our website. For insights and more follow Auriga on our social media handles.