Various people have asked myself over the years, “what do you think Chip, I would like to spread out a restaurant. ” I would personally reply, what do you know about the restaurant business? The majority of them said they recognized nothing about the business nevertheless they knew that they might make a lot of money owning and managing a restaurant. Shamoli Edinburgh
This is one of the biggest common myths that contain been circulating in the restaurant industry for a long time. Okay, you don’t have to know everything with restaurant startup or buying a restaurant or restaurant food cost, but you can hire a restaurant guru who knows how, and they can seek the services of employees, hire a bookkeeper and manage every person and everything. Voila! Now if you’re in business. This is great if you have lots of money to spend like Donald Trump. But if you have the enthusiasm to get your hands dirty and operate it yourself and perhaps with a family member who is enthused about it as you are, then you must commence with “restaurant planning. ”
You might feel that opening a restaurant is a simple activity. Such thinking may accounts for the reason that so many people try to turn their dreams into reality annually. Although dreams can become actuality only for individuals who are willing to acknowledge that along with reality comes hard work! It will take hard work not only to run the new restaurant, but also to plan a successful new venture.
The Domestic Restaurant Association keeps no statistics but in some states their best York’s Restaurant Association reports that in their state seventy-five percent of all restaurants fail or change control within five years of opening. Thus, many dreams are shattered, perhaps because possible restaurateurs are unaware about what they may be getting themselves into. Many notice and believe the particular myths about the restaurant industry. Somehow, the facts of the business continue to be unexplained or ignored.
First of all and foremost! Like they say in real house. Location, location, location. Do your research. Research the demographics. Is usually your area an appropriate location for your restaurant to be a success?
Planned construction and reconstruction. Call your local housing code commission, village, city or county and inquire them if there is going to be any planned building or renovation in your area for two years. If they say certainly, find another location your own first two years in business are very important to your business surviving. You don’t want to begin off broke.
Consider what will be your menu. Will you be serving full course dishes in an everyday dining restaurant, or hot and cool sandwiches like in a skill caf? restaurant? In other words, what kind of restaurant do you want to operate? An entire service restaurant that serves steaks and sea food, will likely be a more difficult venture because there’s a lot of preparation to be achieved like preparing green salads, soups, entrees, etc. Although a restaurant that will serve portion control meals like hamburgers, hot dogs, hot and cold sandwiches, will have less preparation and its food cost will be lower.
Just because you’re a cook or a chef does not always mean you’re heading to be a success in this business. Help to make sure you have a good CPA and an legal professional to look after the business that you do not want to do yourself. After all, you are busy in the kitchen, bartending and welcome your guests. Bookkeeping and legal work should be assigned to someone different you trust. I just said “trust”. Remember that. I had a successful restaurant and bar business for 17 years that I bought from my dad. I was young and didn’t question my father’s choice of a CPA because my dad owned several restaurants, and that his CPA was his friend also. Lo and behold, after We took over the business, I had been getting billed every month for a balance sheet payment i don’t need. I was a little procedure and didn’t need this extra expense.
As well, it’s important to keep your operating expenses at a minimum. You’re always going to have your fixed procedure expenses such as your electric and telephone bills, but other expenses like advertising can be very costly. Presently there are always salesmen that will be calling on you in particular when they find out you’re the new kid on the market. They will try to sell you snake oil, even though it’s not on the menu. Try advertising in your local newspaper if you are operating in a suburb or community. Join your chamber of commerce and get engaged meeting other business people in your town. Phrase of mouth is your best advertising. Hope this helped. Good luck.