The reason that opening a restaurant requires so much passion and dedication is that it’s a volatile and unwelcoming industry where newcomers are often overwhelmed and discouraged. However, the fulfillment and satisfaction of running a successful restaurant business make the challenges worthwhile. Take a look at these ten basics every new restaurant owner must know as they begin their journey into this unforgiving yet rewarding industry.
1. Your Brand Needs to Be Eye-Catching
An attractive brand image will set you off on the right foot when opening your new restaurant. Of course, eye-catching for the sake of eye-catching is not enough. It must be relevant to your niche and your target market; otherwise, it will be off-putting to everyone. Think about the audience you are trying to attract and what type of restaurant you are creating. This will help you to come up with a visual brand that makes sense for your business.
2. There Will Be Unexpected Spending
Outlining a thorough budget is vital for the success of any business, especially within the restaurant industry. However, don’t be surprised if you find yourself spending more than you expected in the first few weeks and months. It can be frightening to notice that you must stretch your funds further or reallocate them to different categories, but this is par for the course at the early stages. With time, your budget will adjust and settle so long as you continue to manage your finances wisely.
3. Ingredient Quality is Essential
You can’t expect to make delicious meals for your customers if the ingredients are below standard. However, you don’t need to overspend to ensure quality products. For example, you can find bulk granulated garlic for reasonable prices that is also high quality. If you take the time to search for them, you will find excellent deals on ingredients. Cutting costs is important for increasing your profit margins, but don’t compromise the quality of your menu in order to achieve this.
4. It Can Take at Least a Year to Discover Your Direction
All new restauranteurs set out with the intention of filling their niche and making a name for themselves. Your unique vision is what inspired you to open your restaurant in the first place, after all. Just make sure to maintain patience and allow yourself flexibility when it comes to deciding on a direction for your business. Staying rigid in the early stages will only serve to cause unnecessary damage to your trajectory. Keep an open mind and look out for opportunities as they arise, regardless of whether they were anticipated or not.
5. Customer Retention is Key
Holding onto customers is more valuable to your restaurant long term than attracting new ones. This is because the initial efforts of bringing in new customers can be expensive in terms of money, time, and resources. Focus on providing a quality experience to your customers so that they feel inclined to return in the future as well as spread the word about your restaurant. You could offer exclusive deals to repeat customers or create a rewards program that encourages visitors to come back in the future.
6. Your Menu Should Be Flexible at First
It takes time to figure out which menu items should stay and which should be erased. Only once enough customers have visited your restaurant can you make this decision. Pay attention to what sells out and what nobody orders. As you go, adjust the menu to reflect preferences. Listen to customers when they tell you what they like and what they don’t. This information could save you lots of money on wasted ingredients for recipes that never get made.
7. People Who Understand Your Business Make the Best Employees
Recruitment is the part of restaurant ownership that can truly make or break the business. Your kitchen staff needs to be skilled and qualified in order to prepare hygienic and delicious meals for your customers, while your front-of-house staff must be personable and confident in busy situations. Take care to interview new recruits who understand the aims of your business and match the ethos of your restaurant.
8. Your Restaurant Location Matters
Where you choose to set up your restaurant will dictate who is able to visit and what other businesses will be your competition. It will also determine the style of your exterior and interior depending on the scale of your budget. Be cautious about rushing into a lease and search for the ideal spot before making any concrete plans. Your market research should show that the area you choose is ready for a restaurant like yours.
9. You Will Need a Comprehensive Business Plan
Just like any business, your restaurant requires a steadfast business plan to guide its actions. There is nothing wrong with deviating from your business plan if you make these decisions based on data and careful consideration, but having the foundation of a plan is still important. Outline how you intend your restaurant to function in the first few days, weeks, months, and years. This will help investors to see that their money will be well spent, and your business will turn a profit. Include how you intend to market the restaurant through various channels, such as promotion online and through social media.
10. Adjust Course as Needed
As mentioned already, being too committed to a single route and denying external data will cause your restaurant to fail. Flexibility is the key to success and this involves reacting to how your customers respond. Restaurants that don’t acknowledge their customers’ preferences risk their reputations and their survival.
Jumping head first into the cutthroat world of running a restaurant is not for the faint of heart. It takes courage, clarity, patience, and humility to develop the necessary skills that will help you keep your restaurant afloat for those initial turbulent months. While experience and knowledge are invaluable when it comes to growth and success, everyone has to start somewhere. Use these ten basic tips to give your restaurant the best possible start.
