Everyone knows that running a restaurant is a tough business. According to the statistics, nearly 60 percent of restaurants won’t survive their first year, while 80 percent usually go under in five years.
Here is the ultimate list of top 5 points that any restaurant owner, future or present, should take into consideration when starting their own restaurant.
1.No guarantee of success
The restaurant business is definitely for the mentally strong people. It takes huge determination and passion. If you’re looking for ways to make money fast, restaurant industry is not for you. Becoming successful in food service requires thorough planning, hard work and a lot of time. Paying attention to these facts is the reason why many restaurants stop working within the first year. You should remember, that it’ll be really hard to survive in this business without full dedication to your job and focus.
2. Don’t miss anything important
Your restaurant’s success has three essential components: your concept, location and chef. Don’t even try to cheat the system, because if any of these elements are missing, your restaurant will fall apart.
Your concept includes the overall restaurant style, your menu and prices. Your idea should be well-developed and it should clearly explain the uniqueness of your restaurant. Your chef should be creative, talented and awe-inspiring. Moreover, your concept, location and chef should also complement the vision and strategy of your restaurant manager.
As for the location, find a space that offers a great footfall, affordable rent and a flexible layout that meets your dining and kitchen needs. Of course these three elements don’t guarantee success, but they definitely will take you a step closer to it.
3. Never cut back on Customer Service
When you’re starting a restaurant for the first time, it’s normal to want to reduce costs wherever possible. Being smart with money is definitely great, but never at the expense of your clients.
Lavinia Panella, Restaurant Manager at Greenberry Café, says “Effective management is first and foremost about looking after customers and anticipating their needs. It is also vital to ensure we serve quality produce at all times ensure we are never complacent but always strive to improve. This helps us to inspire loyalty from our customers and enables our business to flourish”.
Keeping up value and standards in your customers’ eyes is imperative. Spend some amount of money to enhance their experience. Whether it’s passing around appetizers when they wait or valet parking. Any small gesture that tells them they are valued is money well spent.
4. Funding Needs
Even if you’re certain you’ve considered every little details and component of your financial plan, believe us – you’ll still need more money. Experience shows you should have nine months of working capital to keep your business running. In the first year of work you’ll definitely experience ups and downs, as well as unexpected expenses. Having enough funds to fall back on will get you through that difficult first year while you assemble a loyal customer base and market your restaurant.
5. Invest in Marketing
In our digitalised age most successful companies spend a lot of money every year on their marketing needs. Website design, email newsletters, accounts with Yelp, TripAdvisor and Zagat – all these things can influence your business reputation online. That is why in order to stand out from the crowd, the majority of restaurants go for professional photography services.
Splento provides high quality professional food photography, which will help you show off your spectacular food menu, as well as headshot photography for your staff. By the way, you can read how professional headshots photography can boost your reputation here.
That sums up our top 5 things every entrepreneur should consider before starting a restaurant. Hopefully you can put these tips to good use!
Do you have any ideas that we didn’t mention in this post? Feel free to share your thoughts in the comments!