The first step to starting a restaurant business is sitting down to draw up a plan. Restaurants are one of the toughest businesses to start, with over 60 percent of restaurants failing in the first year.
The biggest reason for failure is lack of planning, so it’s key to successfully get through that first year. Before opening your doors to customers, you’ll have to spend a lot of time figuring out every detail of your restaurant. Fittings, appliances, floor plans and staff selections are all crucial to the planning stage.
Here are some business tips to assist you in starting your first restaurant:
Intention. You need drive, and have to love what you do. To be successful you need to invest a huge amount of time and money. Starting a restaurant needs to be a passion more than just a business idea. That’s the only real way to make money.
Business plan. A detailed business plan with charts, simply and slowly builds up becoming more complex as time goes on. A list of everything to be purchased, include market research and look at competitors. Identify a target audience, outline a marketing plan and a worst and best case scenario budget plan. Generate enough start-up capital.
Process. Once you’ve mapped out a business plan you’ll need a process and standard operating procedure document. The easiest way to map this out is writing your own operating procedures with help from a professional. Once this is mapped out, it should be embedded into SOP software. This ensures that your process is online and easy to follow for newly hired staff.
This includes job descriptions, codes of conduct, the employee handbook and induction and training process. Having the training guide embedded into the SOP software is the most effective way to train staff as it’s engaging and easily accessible.
Location. When it comes to restaurants, location is everything. It needs to be easily accessible, in a central location that has the potential for growth, while still being affordable. It can be difficult to find a good location, so take your time and don’t settle for second best.
Marketing. You’ll need a marketing plan in place to keep new people coming. Utilize social media, offer discounts, participate in community events and give out food samples.
Managing. Before hiring too many staff, ensure you have an experienced manager to assist you in these duties. It’s too much to do alone, and having someone who is an expert at managing staff and restaurant operations can be a huge help.