How to start restaurant business?

Did you want to know How to start restaurant business, then this post is only for you, To run a restaurant and manage the restaurant is a dream job of every or you can say that it’s a dream project for the entrepreneur. But this pandemic period put a hold on every entrepreneur’s dreams to start dining. Also, some are closing the doors. In this crisis situation to start a restaurant business is very risky and full of struggle. 

If you are medium and you are very much careful about your ambition project ad taking full precautions or you can say taking care of the present situation, then this blog is very beneficial for you. We will discuss complete and advance steps on how you can start a restaurant business.

How to start restaurant business?

Procedures to Start Restaurant Business

  • Select your Restaurant Theme or Concept: The selection of the theme and concept of your business is a very interesting process. In this process, you need to imagine what type of restaurant you are going to open and this will help you in creating the imaginary image of the restaurant. Whatever concept you select following things comes under this:
    • What type of restaurant it will be
    • What type of food you will serve
    •  What type of service will be there self-service or another type of service.
    • What type of interior will be.
  • Creation of  Menu: Making or creation of menu is also another biggest process of planning. Selecting the right menu for the right people or according to your style, theme, and everything. If you do not select the right food menu and then there is will be a problem, your restaurant gets failed, you will get lost, and many more. You choose, select, create the right menu according to the taste of peoples. 
    Your menu will decide what type of equipment you will need. All different food have there our set of equipment which will be required by restaurant. Your menu will decide where you will open your restaurant. If you select an upscale menu then open your restaurant where middle-level income people are living. If you open a five-star restaurant in that area then no profit will be there.
  • Restaurant Business Plan: Every business needs solid planning, This is the main obstacle for all the people who are not familiar with their plan. Restaurant business plans are divided into sections first describe your business and another describes the financial management of the business.  The purpose of the business plan is to give a sweet and short summary of your business in document form. When you go for a loan then your business plan helps you to showcase your idea for a successful deal.

Components of a business plan:

  1. Management Summary
  2. Company Overview and Description
  3. Concept and Menu 
  4. Ownership Structure 
  5. Employees and Staffing Needs 
  6. Marketing and Competitor Analysis
  7. Advertising  Strategies
  8. Financial Projection and Summary 
  • Restaurant Funding: A restaurant fund is one of the most important steps. Which needs to be considered when you start planning to or think to open a restaurant. Firstly thing you need to consider how much capital you needed to open your restaurant business. There are three ways with the help of these you can raise the funding for your restaurant.
    • Self-funding – If you have sufficient money in your bank account which you have thought then congratulation sooner your restaurant is going to open. If you open your restaurant independently then all the risks are barred by you. it’s good to start the business in partnership then the risk will be divided. 
    • Loan- if you do not have enough money then you can take a loan and start your restaurant. You can take a loan from a bank.
    • VC/Angel funding- To get this type of funding is very difficult because most investors invest in already running an amazing business. For the first venture, it is really very difficult to get funding from VC funding. 
  • Select the Location: Following are factors depends on the selection of the restaurant location:
    • Visibility and Accessibility –  the restaurant should be located in a place where customers can easily see your restaurant and reach there. On the road is a well visible place for the restaurant. 
    • Demographics – The restaurant should match the target customer of the area where you are investing your money.
    • Labor Costs – Labor costs matters a lot and the wages of the employees depend on the location. If your restaurant in a higher living area then you have to give wages at higher rates.
    • Local Competition –  take an eye on the competitors of your area. You need to find out the pros and cons of the competitors and do amend mend accordingly in your business. And the most important never to start a business in their neighborhood and don’t copy the concept.
  • Permits and Licenses: To start a new restaurant, you need to take many permits and license from the government,  state, and locals. while taking the permits make a list of permits and mark them when which permits and licenses are permitted to you, so that you will not miss not a single permit. These are some of the most important licenses required to start a restaurant business.
    • Business License
    • Employee Identification Number 
    • Food Service Establishment License
    • Liquor License 
  • Design Your Layout 
organized restaurant dining room with tables and chairs set up for opening day

There are two basic components of restaurant layout are front-of-house space and back-of-house space. Every space has its own specification and both working processors are also different. You yourself can not create or design the layout, you need an expert vision to design the layout. The layout will define your restaurant atmosphere and what type of services you going to give. 

The first component is Front-of-house space. In this space your dining room and other factors come under this:

  • Seating Capacity 
  • Dining Room Furniture 
  • Ambiance and Decor 
  • Cleanability 

The second component is the back-of-house space. In this space, your kitchen layout and other things come.

  • Warewashing
  • Dry and Cold Storage 
  • Food Preparation
  • Meal Cooking
  • Service
  • Suppliers & Vendors For Your Restaurant: A relationship with your supplier and vendor should be very healthy because if you need smooth functionality then your equation with them should be very essential. You must have a list of a few vendors of every category. This method will help you to do a comparison between them. You must always emergency stock in your inventory. The delivery of the items must be in the morning and checked every day. Both quality and quantity checks must be done at the closing time of your restaurant. 
  • Hire the Right Staff: Hiring the right candidate for the right job is a very difficult and challenging process. A referral of the employees is very trustable and highly acceptable, for the first-time you can hire through the traditional way.

  • Make the list of all the restaurant positions which you need and hire them on weekdays and for the front- and back-of-house and also list the shift of the employees. some of the most common positions:
    • Management Team
    • Kitchen Staff 
    • Front-of-House Staff 
    • Bar Staff 
  • Advertise Your Restaurant: If you are opening a new restaurant, then it’s very important you have to tell people after your restaurant and why they will come to your place. Do dome publicity of your restaurant. And give them basic information about your restaurant so that customers know where you’re located and what type of cuisine you’re serving. some tips to market your restaurant:
    • Build a Website
    • Create a  Google My Business, and OpenTable Account
    • Use Social Media
    • Offer Promotions to New Guests 
    • Host a Grand Opening
  • Trail Opening of Restaurant: A trail opening of a restaurant gives you the practice to run a restaurant. This will help you to know the pros and cons of your business before the grand opening of the business. Send invitations to a limited number of people for the trial.

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