Every industry is unique, and the restaurant industry is no different. So, what are some important things to know and think about before you jump into it? Here are some things to think about. This is not an exhaustive list, but simply some starting points.
1. What all goes into food service?
If you are getting into the restaurant business because you know you can cook a mean prime rib or bake an award-winning cake, for example, there are some other things you need to consider, too.
One of the biggest reasons why failure can be high in this industry is that people think that it’s just like cooking at home for friends and family. “It must be really easy," some people will think, for example. “I love to cook, and I’m good at it, so I’m sure I’d be able to create a really successful restaurant.”
However, you have to remember that you can’t do everything in your restaurant on your own, so it’s about more than just if you can cook a mean prime rib or not. You will have to rely on and take care of employees, customers, vendors and distributors, too.
The restaurant business can be exciting, rewarding and fun. It also can be frustrating, with long hours, missed personal time and financial juggling. And there are a lot of things to think about.
Cooking food is only part of the job. Here are some other things you’ll need to learn about:
- Sometimes the normal type of budget will not work in the restaurant business. Restaurants need to track waste, theft and all the little things that will eat up bottom line.
- Food cost. The cost of food and supplies are very volatile.
- Customer service. Great customer service can make your business successful, and poor customer service can destroy it.
- Spending too much on marketing can be a burden on your budget. Not doing anything can mean you don’t have a budget to work with because you’re not doing things to draw in customers. Make your marketing impactful with a clear and consistent message on the right channels for your market.
- If you get a bad review, respond to the customer. Take responsibility. It may have been a miscommunication. Clear it up ASAP. Don’t take it personally. It’s just business.
2. Are you purchasing an existing restaurant?
If so, did you go through their financial book? Did you check out their online reviews? Sometimes, this can give you a better look at what you are buying. Unless you know the business intimately, there may be some hidden reasons they are selling. Will you have to rebuild anything, from the building to the reputation?
3. Do you have a one-, three- and five-year business plan?
A restaurant business plan can be a little intense. Do your homework. What’s your market and competitors? Be realistic. Do not overinflate profits or underestimate expenses. Be ready for any unforeseen events like potential repairs and weather-driven business changes. Check your local building codes to make sure you will have all the requirements met to open your restaurant. Make sure your funding is figured out, including opening costs, and anticipate that for the first six months or more, income may not cover all expenses. You might have to have partners or look for grants or low-interest loans. This should all be put into a business plan.
4. What’s your concept?
Make sure you have a clear and defined concept that makes sense considering the demographics of your restaurant. You must sell what people want, not just what you can make. Remember, just because you like something doesn’t mean everyone else will, too.
5. What’s your menu?
Once you know your concept, dive into your full menu and make sure you have consistent recipes. It needs to match up with your equipment, kitchen set-up, storage, staffing, etc. Make sure that you have just the right amount of everything for it all to work well together. Understanding the flow of your restaurant will make you successful. Over-stacking your menu will sink your kitchen and ticket times. Create a good balance in how food is prepared and finished.
6. Who’s helping you run your restaurant?
Getting at least one manager on board sooner rather than later is important. This is going to be a person you can trust to run things when you can’t be there, because you’re simply not going to be able to be there all the time. Does this person have a passion for the food business? Can they manage money and people? One of the most important things to look for is if they can manage people. Understanding and being able to manage people is something that can’t easily or readily be taught. However, you can train someone in budgeting.
Overall, just remember that these are just places to start. Need more help? Reach out to your Martin Bros. representative or click here for more information.
