Most of the people have this misconception that running a restaurant is not a difficult thing but in reality when you will be at another side of the table you will come to know how much hardwork, planning and money a restaurant business plan needs. If you have also seen a lifelong ambition of starting up a restaurant, and don’t know how to go about it, or are currently in the middle of setting up your first restaurant, then this article is just for you and will tell you in detail, how to start a restaurant business.
We have listed, and explained in detail, how to start a restaurant business below.
Concept of the Restaurant
You might have seen that there are many restaurants around you with particular concept. People nowadays are adopting innovative ways of business. In order to stand your restaurant business out in such heavy competition, all you need to do is to create fresh concept for your restaurant and put all the efforts to make it happen.
Decide the theme and cuisine of your restaurant business plan, once you have decided the concept. The interiors must be in sync with the theme of your restaurant
Lack of funds is something which most of the dreamers have faced while turning their restaurant business plan into realities. It is no less than a fact that money is the most important thing when it comes to open a start-up. Without any financial support, you might end up by giving upon your dream or settle for the less what you have thought. There are few ways you can raise money for your restaurant dream.
- Self-funding– If you have enough money in the bank, then congrats, you have crossed the first hurdle of opening a restaurant. To open a restaurant in partnerships is also a good idea, as it reduces the risks of investment.
- Loan– You can take a loan to fulfil your restaurant dream. Loan application from a bank may include hassles as they look for collateral or someone who can underwrite the loan.
- VC/Angel funding-. It becomes automatically difficult when it comes to get investors on board especially if yours is a first-time venture. Most of the investors look for your restaurant venture’s growth potential, quality, and the scalability of your model. The performance of your first few outlets is considered before investing.
When we talk about the restaurant business plan, Location is the major factor to consider as it can be one major way of determining the success of your business plan. It is a good idea to identify your competitor in that area before choosing the location. The more the competition, the more the difficulties. The competition is not just in terms of cuisine, but also the type-casual dining, fine dining, QSR, etc and it would help establish that a target customer base already exists in the area. The restaurant must be located at a place where it is easily visible as well as accessible. Having Upper floor locations are generally not considered good as their visibility is low, and customers also find them difficult to locate. A restaurant right in the front and at the ground floor has higher footfalls.
Hiring the right talent and retaining them is one of the biggest challenges while executing your restaurant business plan. Hiring through referral is the most common form of hiring, with existing employees referring their friends and family. Hiring through the traditional way can also be done like set up an advertisement in the newspaper, put up ‘We’re hiring’ posters, or hire through agencies. There are also a number of active groups on Facebook and Linkedin, from where you can source talent. The number of employees needed in different types of restaurants.
There are basically three types of staff required in your restaurant-
Kitchen staff– Your kitchen staff comprises of the cooks, food preparation staff, support staff etc. This is mostly unskilled labour.
Service staff– The waiters, housekeeping staff, busboys etc are your service staff. Since they have to interact with customers, they need to be good in communication, and etiquette trained.
Management staff– Your restaurant’s manager, chef, cashier, store manager etc comprise the management staff, and they need to be educated as well as experienced.
Your menu is your primary means of representation: It says exactly who you are and what you hope to convey personality-wise. In addition, it must convey your restaurant’s brand in a manner that makes diners excited to be there, want to come back and to recommend it to family and friends.
A huge impact can be made by a smartly designed menu on your restaurant business plan. Design a menu in such a way that it should comprise of items that can be prepared easily and use local or easily available ingredients. To reduce wastage, it is advised to serve dishes that use similar ingredients.
When it comes to Restaurant technology then it is often the most ignored part of running and managing a restaurant, though perhaps the most important. With new age modern technology, there are a number of integrated features in the POS system that have smoothened restaurant operations to a great extent. Niche restaurant technology solutions are available for different types of restaurants.
There are many restaurant billing software systems for restaurant which provides features like:
- Order Entry
- Order Tracking
- Customer Database
- Tools for Effective Marketing
- Improved Efficiency
- Theft Prevention
- Delivery Management
- Mapping for Delivery
- Reporting for your Business
The idea of owning a restaurant is great. However, starting a restaurant from the scratch and running it is a humongous task. Through this whole blog, we hope we were able to educate you about how to start a restaurant business.