Opening a restaurant is indeed an exciting venture. But before doing so, there are a lot of things to consider and preparations to make. You can’t expect to build your restaurant, open your doors, and have people to start coming in immediately. You have to work for it.
There are a lot of factors that come into opening your own restaurant. And whether it’s your first, second, or third time, there’s no guarantee that it will succeed. In fact, in the United States alone, the failure rate of first-time restaurant owners is over 60%.
But that doesn’t mean you shouldn’t try. All we’re saying is that you need to take the necessary steps to properly plan and prepare for this big venture. Here are some things you need to consider when opening a new restaurant.
Target market
Opening a restaurant will not guarantee diners actually wanting to try out your menu. Different people have different food preferences. You might have a classic family menu that everyone in the family loves. But that doesn’t mean it will make a good concept for a restaurant.
That’s why your first and foremost concern should be your market. You need to find out what they want, and whether the menu you’re serving will be something people would try. For example, rice may be a staple food in Asian culture, but not in other countries. Those belonging to the Western culture would be more inclined to eat sandwiches on a daily basis, so it might be more ideal to explore sub sandwich franchise opportunities.
Market research is the most important phase of any business plan. Get to know the location and market where you plan on setting up your restaurant. Give them what they want. Remember that you’re serving them and not yourself, so they’re your top priority.
Staffing
New restaurant owners would opt to hire their family or friends as staff. This might seem like a good idea, especially for startup businesses. It helps cut down on expenses because you don’t have to hire and pay for workers.
Although there are a lot of successful family-owned businesses, it’s not always the ideal choice. You have to consider how employing your family or friends would affect the business and your personal relationships.
Finance
Starting your own restaurant can take months, or even years, of preparation. This is owing to the capital needed to set everything up. It would take a while to save up for all the initial expenses.
But there are always options. Research and know about the available financing opportunities for first-time restaurant owners. There might be an option that fits your capacity, resources, and preference.
Workload
You might think that your work is done after you’ve successfully put up your restaurant. But it doesn’t end there. You have to be hands-on in your operations for the first few months. It might even take years.
Especially because you’re still starting out in the industry, it’s important for you to be around to address issues that might arise. You and your staff have no experience in the field yet, so you need to be a guide and stronghold for the entire team.
Ask yourself if you’re ready to commit your time, energy, and resources to your restaurant. You probably are, that’s why you’re working hard to begin this venture. But if you’re not ready for the workload, you might want to rethink it.
Opening a restaurant is not an easy task. Even if you’ve done it multiple times, there will still be new challenges that may arise. But with these tips, you’re well on your way to starting a successful business.
