Statistics indicate that more than 60% of small restaurants or cafes fail a year after their launch, but this type of small project is still very popular with young people.
Many young people are interested in creating a fast food restaurant that combines international efficiency with local flavors and affordable prices.
Indeed, if these restaurants are characterized by these specifications, they make quick and large profits beyond imagination.
“The Motley Fool”, an American website focused on investment affairs, recently published a report by Jessica Elliott. The report outlines the crucial steps one must take to conduct a successful feasibility study for a small restaurant project, in order to avoid the pitfalls of failure.
The author emphasizes that the owner of this project must have a refined sense of culture and art, as providing diverse food options is intricately tied to both local and international customs and traditions.
One of the most important basics is that the restaurant owner has the ability to create an attractive atmosphere in which customers spend enjoyable times while eating the delicious meals offered by the restaurant.
Before embarking on this commercial adventure, you should ask yourself several key questions:
Does your own business suit you?
Are you able to work long hours without weekly days off?
Do you have the ability to take responsibility for the success or failure of the project?
Do you have creative thinking?
One of the most important steps, before even starting the feasibility study, is choosing the right and appropriate place to attract customers.
The location of the restaurant must be characterized by many specifications, such as being in a vital location near large shops, public parks, cinemas, or on a main street.
Decide if you want to start from scratch or buy an existing business
Be sure to do this research before you take the first steps of your project.
And if you decide to choose to buy an existing project, you must know the real reasons behind the owner’s desire to sell his project:
Does he want to retire?
Or is his project exposed to losses?
Or is he unable to manage?
In another report published on the blog of the EAT website, which specializes in restaurants, the author wrote a report in which he outlined the most important steps for completing a feasibility study for a successful small restaurant, as follows:
Set your budget
The amount you need will vary depending on your location, the level of your project, and the amount of investment you wish to make.
There are several calculation tools you can use to get an approximate budget for your starting costs.
Try to start small and then expand as you build a good reputation, plan on zero earnings for the first year, and set aside enough money to cover your personal expenses for at least 6 months.
Study local laws regarding food safety
Health laws for operating restaurants vary from city to city, so you must comply with all local regulations related to food safety. You must also register your business and obtain permits to operate your restaurant legally. In this process, Inc Authority can help you and this GovDocFiling detailed review guide can help you to understand about this business formulation.
Determine target customers
After choosing the right place, it is important to define the target group of customers. Without defining this target segment, your project will be random and will not achieve the desired success.
You can use the following questions:
Is your restaurant targeting families, university students or businessmen?
What kind of food do you serve to customers? Local or Western meals?
Will your restaurant be associated with heritage?
You must accurately familiarize yourself with the menu of meals provided by your restaurant, and on its basis determine all the tools required to prepare food at the appropriate time and quality in a healthy way.
You must rely on yourself in the beginning, and do not exaggerate the recruitment. Design a training manual from which your employees know what you expect from them, and quality is the most important element that all your employees must maintain.
Restaurants are subject to a lot of employee turnover, as they join and leave the staff on short notice, so make sure you have creative ways to hire new people quickly when you need them.
Agree with the food supplier
You must have a wide range of suppliers to provide everything the restaurant needs, whether from meals or any other supplies. Make sure you balance cost and quality.
Creating a successful small restaurant is not easy, but with the right steps and tips, it can be done. You must thoroughly analyze the place of your restaurant and its target customers, and provide them with delicious meals as well as carefully select the equipment needed to make these meals quickly and safely. You also need to set a reasonable budget for setting up your business, hire qualified employees, and reach some agreements with food suppliers to secure their high-quality products at reasonable prices. By following all these steps effectively, you will have created a successful small restaurant project that can succeed in delivering value to its customers.