For many, the idea of opening a restaurant holds considerable appeal. There’s a sense of romance in sharing good food and providing people with a positive experience. The restaurant trade, to be sure, can be a little bit punishing – but it can also be tremendously rewarding.
If you open up without the right preparation, however, then you might find that you run into problems quickly. It’s much easier to anticipate these problems than it is to address them after they manifest. As such, it’s worth taking stock of a few key points of consideration before you get started.
Let’s run through them.
What is your key concept?
Your customers will need a reason to visit your restaurant, rather than any of the others on offer. If you can clearly communicate what kind of experience you’re offering and why it’s worthwhile, then you’ll stand a much better chance of persuading them. Decide from the outset what you’d like to offer. A fine dining restaurant will require a very different approach than a café or diner.
Business plan
Every successful business starts with a good business plan. Conversely, every business which lacks a plan is likely to fail. Your plan doesn’t have to be a very formal document, but it should clearly communicate your ideas and expectations. You can and should update your plan regularly, in light of developments along the way.
Location and premises
It matters where your restaurant is. This is where market research is invaluable. Look at where you’ll be most accessible to your customers while considering your overheads. You might also think about the building itself, which might form part of your establishment’s unique appeal.
Funding
If you’ve saved up the money to launch your restaurant without outside help, you’ll be in a strong position. But even in this case, it might be worth looking into outside financing, so that you have enough cash to avoid problems. Fortunately, there are many sources of finance available. Look into your options, and don’t saddle yourself with the wrong kind of debt.
The law
If you’re serving food and drink to the general public, you’ll need to abide by a string of rules and regulations. This means an alcohol license, a PRS for Music license, a food hygiene certificate, and food premises approval. You’re also legally obliged to take out public liability insurance. For a restaurant, it’s also a good idea to take out more specialised insurance too. Restaurant insurance covers a little more, and it’ll protect you if things go wrong.
Staff
Without the right staff, your restaurant will struggle. You’ll want a strategy that not only brings in the right talent but retains it, too. Ensure that your job descriptions are clear and easy to read, and that you have a plan to communicate your vision to the ambitious chefs and waiting staff. Additionally, include Executive Life Insurance in your retention plan for key staff, enhancing their sense of value and security, and strengthening your team’s core
