While opening a restaurant can be challenging, it can also be rewarding. You can be your own boss and provide valuable jobs in your community along with some great food. There are several must-haves, however, if you plan on opening and running a successful restaurant business plan.
Table of Contents
1. You Need a Business Plan
You need to make several decisions before you begin. Where will you have your restaurant and what will its theme be? What niche of the market will you pursue? You won’t be able to compete against the large-chain restaurants unless you can offer something the big eateries don’t. Plan all of these things before you begin.
2. You Need a Loan
The expense of opening a restaurant is about the same as the cost of buying a middle-class home. Most people don’t have that kind of money on hand, so you’ll have to apply for a loan. You will need to save enough that you can put down at least 10 percent of the amount yourself. You can get funding by applying to the Small Business Administration. Or think about a crowdfunding platform.
3. You Need the Right Building as Well as Furniture and Equipment
Location is crucial when you’re opening a restaurant. Find a building that has easy access from the street. Pick a location near several office complexes. That way, office workers will stop by for lunch. Chose furniture that matches your theme. If you want to appeal to families, get orange restaurant chairs and bright accents. Also, make sure to get the equipment you need.
Advertising your menu and products is a key aspect of attracting customers to your restaurant. Effective signage, both traditional and digital, plays a vital role in this endeavour. Traditional signs can be placed outside your restaurant to catch the eye of passersby, displaying your specials or unique offerings. Digital signage, on the other hand, offers dynamic and interactive ways to engage potential customers. Incorporating these advertising strategies will enhance your visibility and entice more patrons to visit your restaurant.
4. You Need a Tax Number and Licenses
The IRS requires you to obtain an employer identification number. The EIN is like a social security number for your business and is a must if you plan on hiring employees. Also, download and read the food service code regulations for your state. You’ll need to get a license that demonstrates that you will safely handle and serve food. If you plan on serving alcohol as well, you’ll need a liquor license.
5. You Need Good Staff
Good staff will either make your break your restaurant. If your waitpeople are rude or surly, your customers won’t come back no matter how good your food is. Take the time to carefully vet prospective employees. Otherwise, you could wind up with low morale and poor productivity from your staff.
6. You Need a Marketing Plan
Marketing isn’t something you do once and then forget about. You’ll need an ongoing marketing plan that you work on every week if not every day. Build a Facebook page and other social media sites and post to them. Think about where you will be advertising and research the best places to post your ads. Make flyers and pass them out to nearby businesses.
And finally, you need to enjoy the work. Opening and running a restaurant is a demanding vocation that takes long hours, so make sure you like it. It can be a challenge to open a successful eatery, but the rewards will be well worth it.
About Carson Derrow
