Firstly, before we go any further, you should be aware that restaurants and food in general is one of the most competitive industries you can ever choose to enter. There are literally millions of privately owned restaurant businesses around the world, as well as many huge corporate restaurant businesses and their franchises. So, if you are thinking about starting your own restaurant business you had better be ready for some stiff competition. With that being said, it is still possible to succeed in this industry, but it will require hard work, dedication, commitment, and a lot of planning on your part. This post will introduce you to the basics of starting your own restaurant business.
How to Start a Restaurant Business
In order to start a restaurant business you should have a fairly good idea of what your menu and your specific specialities will look like. You will also need to research the potential area where you would like to open your business and keep an eye out for any particular food trends, as well as any gaps in the market you can think of. You should also identify your target customers and prospective market very early on and think about exactly what this market would like and what they need. A prime example may be a delivery service. Can you think of anything off the top of your head?
You will then need to compare what your restaurant will offer to existing restaurants that you will be competing against, and then you should make a list of both yours and their strengths and weaknesses.
From the information you have gathered thus far you can start to make your business plan. From this plan you start to make a budget and think about the things that you require. This may include premises, restaurant furniture, restaurant stationery, ovens, hobs, cutlery, crockery, where you will purchase wholesale food and drink items from, etc. Once again this will require a great deal of research.
You will need to register your business legally and establish a specific business structure. You will also need to make certain legal applications due to the nature of your business and the fact that you will be an employer. This will include certain restaurant and vending licences, which will allow you to legally open and run your business.
Once you have all the legal formalities out of the way and you have either purchased or leased your premises, as well as acquiring everything you will need to run a restaurant business, it’s time to start looking at your staff requirements. You should begin your search for employees fairly early, as employing people at the last minute may mean that you have to sacrifice on quality. As an employer you will also be required to pay a salary, tax, etc. and therefore both you and your employees will once again need to complete a fair amount of legal documentation.
You will also need to implement certain health and safety standards, as is required within the industry and finally prior to opening you will need to look at marketing your business.
As mentioned, this is simply a guide to the basics, but as you can see there are many formalities that will need to be completed and you will need to look further into each of these points given above.
Aldon Vaughan, the author of this post, works for Kap Furniture, well-known retailers of dining room furniture. In his spare time, he indulges in photography and also practices Tai-Chi.