How to Start a Restaurant
The food service business has been booming since the past few years. It is a business with lots of profits when established properly. Once you’re the best one out there you’re on a roller coaster that only goes up. It is a very profitable business that many young entrepreneurs are diving into. Here are a few steps that you ought to follow when thinking of starting up a restaurant business.
Step 1: Writing a Business Plan
Like every successful business, you’ll also have to start out by writing a business plan. For this, you can either write one from scratch which is very tricky and difficult or use a business plan template. This is will definitely be the most critical element of your business. This is where you’ll map out every step for your business. Be sure to include the concept of your restaurant business, description of your market, menus and pricing, financing, start-up costs and every little detail.
Step 2: Pick Your Restaurant Service Style
Restaurants are basically classified into three categories namely, quick-service, midscale and upscale.
Quick-Service Restaurants: are more commonly known as fast-food restaurants. The items on the menu for this style are limited and the food is cooked quickly and is available at a lower price. They have a casual dining area and usually offer drive thru windows as well as take-out.
Midscale Restaurants: offer full meals but charge prices that customers perceive as providing good value. These types of restaurants offer a variety of limited as well as full-service options. A lot of similar restaurants offer salad bars along with buffets.
Upscale Restaurants: offer full table service and they do not necessarily promote their meals as offering great value rather, they focus on the quality of their cuisine and the ambiance of their facilities. Fine-dining establishments are at the highest end of the upscale restaurant category and also charge the highest prices.
Step 3: Selecting Your Niche
You need to decide on what the specialty of your restaurant is going to be. Carving out your own niche in the market is important. Pick something unique that no one else in the market has to offer and make it the best there is. You need to be the best at what you do.
Step 4: Financing and Funding Your Business
The start-up costs will depend on the type of restaurant you plan on opening, the facility, equipment required, inventory, marketing and capital to keep your business afloat for a while. Money is the most basic thing that you’ll need to start your foodservice business. You may use your own resources if you have enough, to cover all of this, or borrow money from family and friends, or you could find investors and partners. There are also different government programs, so do your research properly.
Step 5: Choosing a Location for Your Restaurant
Choosing a proper facility and space to open your restaurant is crucial. Always consider a place which is convenient for your target audience to gather to.
The most important part is to market your business like crazy. The more your market, the better your sales will be.
If you are interested in starting a restaurant check out this business plan template: Restaurant Business Plan