The hospitality industry is a popular choice for many who want to start a business, as a successful bar or restaurant can be very profitable. However, it is also one of the hardest industries to succeed in. If it’s always been a dream of yours to run a favorite dining spot in town, you might be willing to take the gamble. If you’re in the process of planning a new business venture, whether for now or in the future, here are 5 things you need to consider when opening a restaurant.
Location! Location! Location! It’s is important to get this right: if your restaurant is hard to find or in an undesirable area, it’s unlikely people will come to you. This is especially true in the early stages of your business, as it takes time to build up a reputation amongst diners and food critics. Make sure your restaurant is located somewhere that gets a good amount of foot traffic so that it can catch the eye of hungry shoppers and passers-by. Where possible, also choose a good neighborhood to open in.
Like any business, you will need to get funding to get started. Think carefully about your costs, including insurance, bills, kitchen appliances, furnishings, etc. You will need to present a strong business plan to the bank, investors, or alternative funding schemes to convince them that your business is viable and worth giving you the loan. Do your research into who can offer you the best financial aid for your start-up, too. For instance, look into a company that can offer specific restaurant business loans.
3. Your Menu
Deciding what kind of cuisine your restaurant is going to offer is another important factor and will impact how successful you are. The most popular kind of cuisines on offer are Italian, burgers and American style foods, Japanese and Chinese. While these are popular choices, it also means there is a lot of competition. Do your research into other eateries that are nearby to your restaurant’s location and think about offering something a bit different. Or you might want to choose to offer diners a range of dishes, rather than settling on one type of cuisine. Either way, make sure your food is top-quality and a cut above the rest.
The overall design and décor of your restaurant will also need to be carefully considered. This will depend a lot on what style you’re trying to achieve. For example, trendier, modern restaurants have favored the stripped-back industrial look in recent years, but if you want to instil a vintage feel to your restaurant, leather booths and candles might be more suitable.
Finally, like any good business, having a strong marketing strategy will be essential. The use of social media and utilizing your restaurant’s website will be key, as will hosting a ‘grand opening’ event. Invite local food critics and give diners special discounts for your first week to encourage them to come and try your food. Running a restaurant is one of the most challenging businesses, but if it’s successful it can pay off enormously. Use these tips as a starting point when planning your restaurant business venture.