The Ins and Outs of Restaurant Business When Planning to Enter Into It

by Natty Decor Interior Designer

When you are opening a restaurant you need to be cost effective yet stand out from the rest. There are so many things to consider while opening a restaurant -

1) Lone Ranger -

Are you partnering up with somebody or going solo? Remember more partners does mean the burden of expenses get shared (great for the initial stage) but it also means that there would be equally more chances of struggle between the partners

2) Menu -

Similar menus are mostly the trend in the industry the reason is two-fold -

a) What you make can easily be copied.

b) With a tried and tested menu, you know you can engage the customers already thronging to your competitors in the area.

3) Location -

Is your located suitable to your menu. For example, if you open a restaurant with American Diner concept in a mostly asian locality, chances are the novelty can soon wear off and you shall have to place the prices at competitive rates even though you stood out differently.

4) Chefs -

the food industry is a highly volatile industry with high attrition rate. At any time at least three hired chefs are recommended to take the share the burden in case somebody leaves without notice.

5) Commercial Kitchens -

Restaurants don't generally work on your home kitchens. You need special commercial kitchens for that. Commercial kitchen entails plenty of expenses depending upon your cuisine. If you are just going to be serving burgers, then you may not notice them but if suppose its a multi-cuisine restaurant with burgers, pizzas, somewhat of bakery products etc then you are gonna have to loosen up your money belt.

- Special Ovens with conveyor belts come for baking cupcakes

- Similarly for pizzas, you probably need a full depth multi-level oven

- Griller for sandwiches and so on

6) Point of Sale Terminal -

How will you bill your customers, track your inventory and keep records? For that you need commercial softwares specially designed for such purpose. Let me tell you such softwares easily go above 1000$ per terminal.

7) Salary -

Staff salary is a lot of overhead especially when your brand hasn't taken off

8) Staff Dress Code -

Are you going to let your staff come to work wearing jeans and t-shirts? You would probably need proper dress code and that would entail hiring the services of a professional for your dresses.

9) Air conditioning -

Going for Central air-conditioning? then open up your coffers. Even normal split air conditioners would need to be at least 1 ton - the larger the space, the stronger the air conditioning needed. Competition more or less demands the usage of air-conditioners as against ceiling fans.

10) Better Offers -

You shall need to offer better prices than your competition at least in the initial stages because those "loons" are actually professionals with years of hard work and good name behind their back.

11) Promotions -

Besides just better offers, you need to get ready for promotional activities as well. Not just 'Buy One Get One' but you may find yourself in need of a professional marketer to run your business campaigns. You would need to advertise via slogans, print media, influencers, Bloggers, hold promotional events outside colleges and so on. Making your brand name visible is the first important step.

12)Tasting -
So you have decided upon a menu and its feasibility but what about the taste? How do you decide which item stays, which doesn't. Before your grand opening, you would probably need to hold tasting events just for near and dear ones using different chefs. Before finalising a chef, request a menu curation and tasting event from him.

13)Feasibility of food -

After you know what you like via the tasting event, the economic feasibility of that needs to be taken into account. Can you mass produce the same thing? Can you make the same food item in such a way that your expense of manufacturing it minimises? If you find that the cost of making is higher than what you can expect your clients to pay during your initial days than thats an indication of moving on to other items.

14)Rent -

How rent effective is your place? Normally, a place thats already popular will demand higher rent than one that doesn't. It may be a good idea to start off with lower rent if you are new to the food industry.

15) Lock in Period -

Rent agreements usually contain a clause of a lock in period. Thats the minimum time commitment that you give to the landlord and before this period you cannot empty the rented premise or stop the rent cheques without a penalty. The penalty clause is also generally mentioned in the rent agreement. Make yourself ready for the harsh truth that initially there would be just expenses and no returns. If you do not have the financial appetite to stand ground while the expenses keep shooting at you from all directions, it is best to look for a place whose landlord is open to a shorter lock in period.

16)The Interiors -

You are probably hoping to build a place of trust, a place where people feel comfortable coming and spending time with your loved ones. To create a warm and welcoming environment, you would require the help of a professional like a good interior designer. Interiors of a restaurant can entail so many things, best to hire somebody and be upfront about your vision and your budgetary constraints. Smart business is what drives growth during the initial stages.

17) Brand Identity -

Think of a suitable name for your brand. Make it appealing, if possible appetising - something on the lines of - "Open Bottle", "Kebab Falls " or something equally enticing.

18) Brand Logo -

Did you know that color red is such a vibrant color that it stimulates appetite and quicker eating, fast foods like "burger king" etc utilise this color for their brand logo. Think of a unique brand logo, its design and color.

19) Theme -

Are you willing to invest in a theme restaurant? How about a Pirate theme?

20) Bar -

Does your restaurant have a bar menu? It is well known that restaurants recovery majority of their costs with drinks only. Its best to think it through because a liquor license is quite expensive and may entail extra headaches ( bar fights, unruly clients) and expenses ( bouncers).

21) Testing Waters -

If you think you would just like to dip your feet in the water before going all in - How about starting with a stall concept. You just need a 4X4 feet space to start through.