|
How to open a restaurant? Is there a guide to starting in the restaurant business? These are some of the most frequent questions we are asked. To answer these in a nutshell is difficult but here are some pointers:
Never underbudget. In our experience most people who open a restaurant spend the most money on refurbishment, then they overstaff during the opening period but they don’t spend enough on marketing, management or on a quality menu. This keeps turnover low and customer loyalty low which means business for the restaurant is tough from the start. You need to allocate at least 3% of your projected turnover for marketing.
Let harshness be your guide. Ask your self constantly; Why should anyone come to my restaurant? Why would anyone pay these prices? How can I show my restaurant is different? Do enough people know we are open? Do I really understand generating good profits in the restaurant business? From when you open a restaurant until the day it generates good cash profits you can never be too harsh on every aspect of the business.
Location wins. Before you open a restaurant, or more likely take over an existing site, you need to take a guided tour of the location or choice of locations. Your guide should be anyone that knows the area intimately and eats out regularly in restaurants. Analysing this, BEFORE you open and looking at the local competition is essential. The restaurant business varies enourmously from site to site.
Some sites have huge footfall during the day or during the evening. Some sites are badly positioned or in poor areas, while others attract wealthy clients. Some sites are seasonal while others are a good bet all year round.
More than any other factor, your location will affect your cashflow. Remember also that the worse the location the more you MUST spend on marketing and the better your food, ambience and service have to be. It is impossible to open a restaurant by saving money and getting a poor location, starting with a cheap offering and spending very little on marketing.
There are guides to starting in the restaurant business and we can help you understand how to open a restaurant so it has the maximum chance of success. We’ve studied hundreds of restaurants, bars and hotels and understand what makes a profitable venue tick.
|
