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Restaurant Business Idea

If you love food, why not find out how to start a restaurant business?

Whether you enjoy planning menus and cooking meals, or creating a welcoming environment for guests, the restaurant industry is big business.

Do you like to eat out? Most people do. In fact, a survey by the National Restaurant Association indicated that people eat out an average of 4.2 times per week.

Whether this is for convenience, variety, or entertainment, people will make room for a restaurant with tasty food.

The key to success in the restaurant business is to plan well.

Types Of Restaurants

When you’re considering opening a restaurant, you need to decide what type of operation you want to have. There are basically three kinds: quick service, midscale, and upscale.

Quick service or fast food restaurants like McDonald’s or Subway give customers food that is prepared quickly and can be eaten quickly or taken to go. Prices are normally low to moderate.

Midscale restaurant such as Chili’s or Romano’s Macaroni Grill will take a little longer than the quick service restaurants. While full meals are served, the prices are still considered to be moderate.

Upscale restaurants focus on the food and ambience. Dining is leisurely, and attention to service is important.

Planning How To Start A Restaurant Business

Knowing the type of restaurant you want to run is your first step. You can further develop your concept by completing a restaurant business plan. This plan will help you map out all aspects of your business to ensure they are feasible.

You’ll need to explore in your plan whether you want to operate independently or buy into a franchise. The amount of investment will vary depending on your direction.

Franchises often dictate the restaurant design, so this needs to be considered as well. If you choose to be independent, you may want to work with a consultant to create your final design.

Do you have money for the restaurant? In your cost estimate section of the plan, be sure to include rent (and associated fees), furniture and kitchen equipment, licenses, insurance, restaurant supplies, and marketing.

If you don’t have enough, how will you finance the restaurant? How much profit will you need to make– and by when– in order to repay loans? This information will also let you establish pricing to help you meet your goals.

Marketing And Recruiting

Along with a business plan, it’s a good idea to create a Restaurant Marketing Plan. From your grand opening and throughout the first year you can plan special events that will ensure customers know your restaurant exists.

Rather than hire staff whilst in crisis mode, make a recruiting plan. Know where you can go to hire staff on short notice. Is there a college or high school nearby? Where can you go for experienced cooks? Begin to establish relationships with culinary schools in your area so their graduates will come to you.

With thorough planning, you can master how to start a restaurant business, and then guide what you create to long-term success.

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