How to start a new restaurant business

The old saying that “anything worth having is worth working hard for” is true. It can be difficult and time-consuming to own and operate a business. Restaurant management is no exception. A study found that only 60% of new businesses fail within three years, compared to the 90 percent previously believed. These figures can be fuel for those who are determined to work harder. You can succeed in your new restaurant venture with determination and a few key steps.

1. Choose the type of food you want to serve at your restaurant. Decide whether you prefer an elegant restaurant with a dress code, a full-service eatery, or deli-style. Or if you want a place that caters to the whole family, such as a pizzeria that has an arcade that appeals specifically to children and teens. Consider commercial restaurant equipment that you might need.

2. Create a business plan with goals and objectives. The plan should be detailed and used as a guideline to help you start your restaurant. It can be used as your daily, monthly, and quarterly checklist, to accomplish tasks and measure goals, and to help you stay on track throughout the year. Your marketing and operations plan, financial projections, and goals and objectives should be written. Everything, from ingredients for cooking to expenses for employees. To avoid common pitfalls when starting a new business, you can modify the content of your plan.

3. Register your business, and get the licenses required in your county, state, and city. Decide if your business will be licensed to serve alcohol. Talk to a certified public accountant or business attorney about the licensing requirements and which structure is best for you.

4. Find a suitable space to house your restaurant. Talk to your commercial real estate agent about the best locations. Decide whether leasing or buying a location is the best option to achieve your business goals. To avoid code violations, you might ask your local licensing inspectors or fire department for a pre-inspection. Consider accessibility, parking, visibility, and location for your patrons.

5. To design and modify interior spaces, work with an architect or licensed general contractor. Discuss the design and feel that you want for your restaurant with the contractor. Consider working with an interior designer for help with color schemes, decor, and creating a memorable dining experience for your customers.

6. You will need the right equipment, supplies, and business machines to run your restaurant. Make a list of all the items you will need, including burner commercial stove, ovens, and foot warmers, as well as dinnerware, glassware, silverware, and cloth napkins. Also, consider customized menus, cash registers, and employee uniforms. To reduce costs during startup, you can use bulk suppliers and wholesalers.

7. Make appealing menus. Consider whether you will offer full-course meals, vegetarian options, and low-salt, high-fat menu choices to your customers. You can offer specialty items such as appetizers, soups, entrees, and desserts. Offer tempting options to keep customers coming back and compete with other competitors.

8. Plan and execute a promotional and advertising campaign. Effectively promote your restaurant business by identifying its niche market or target market, and designing campaigns that appeal to it. Your restaurant’s uniqueness is highlighted, such as its happy hour all-you-can-eat fried shrimp and other exotic dishes. Create a marketing package that highlights the uniqueness of your restaurant.