Restaurant ownership can be an exciting business.
Opening a restaurant can be a difficult venture at the best of times. According to Entrepreneur.com, up to three-quarters of all new restaurants fail. So before investing your time and hard-earned money into opening a restaurant, it is useful to consider certain strategies to maximize your chances of success. These can help guide your choices, from finding a location to choosing what kind of food you would like to serve.
Finding a Niche
To have your restaurant meet with some success, it is imperative to have it as full every night as possible. The best way to do this is to find a niche that is not being filled in your particular location. Ask around among your friends and family what sort of restaurant they'd like to see that isn't currently available in your area. Check out demographic statistics and average earnings of other restaurants in the area. Perhaps the location is in need of an affordable family spot, an all-you-can-eat BBQ buffet or has all Asian types of cuisine except Thai. Take this into account when planning your menu and hiring your chef.
Raise More Money Than you Need
According to the National Association of Restaurants, up to 25 percent of these businesses close in their first year. Often this is due to insufficient funds to keep the place open while it gains in popularity. Keep in mind that it may be years before your restaurant provides substantive returns on your investment. Use generous margins when writing your restaurant proposal and presenting it to potential investors to help raise sufficient money.
Choose Personnel Carefully
Ultimately your restaurant will only be as good as its staff, so hire carefully. Write detailed job descriptions and consider paying above minimum wage to attract qualified people. In a 2010 interview with Inc. Magazine, successful New York restaurant owner Missy Robbins revealed that she likes to give younger, less experienced staff members a try because they can be loyal and provide a sense of humor. "It’s one thing to have someone who can execute your food, but another thing to have someone who’s willing to learn to understand you and contribute to what you’re doing," she says. She also makes a point of promoting from within the kitchen to encourage loyalty.
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