Opening a restaurant can be a savvy financial investment, as well as a rewarding and challenging endeavour. To give your enterprise the best chance of success, however, you’ll want to ensure you assess every element of your new business proposal.
Before you start planning your menu, be sure to take the following into account:
The location of any bricks and mortar business is important, but the site of a restaurant is particularly critical to its success. Depending on the style of restaurant you want to open, you may be hoping for high footfall in a city centre or a sufficient amount of parking availability in a non-central location.
Of course, the dining experience you offer will play a huge role in determining the location of your restaurant. If you’ll be serving short orders over lunchtime, for example, you may want to choose a site that’s close to workplaces, shopping areas and universities.
Alternatively, if you’re focusing on fine dining, you may have more freedom to choose a site which is as unique as your menu. When visiting your restaurant is part of the diner’s experience, you have more flexibility when it comes to choosing the locale.
A restaurant can be a costly business to get off the ground, although it can offer attractive rewards. Before you can open for business, you’ll need to secure a site. This either means buying commercial premises or leasing a building or unit, as well as funding any necessary refurbishments and decoration.
If the site you choose isn’t already equipped to function as a restaurant, you’ll also need to consider the cost of installing commercial kitchen equipment, as well as hiring and training the staff you’ll need.
Finding the right business finance is vital, particularly if you want to minimise the cost of borrowing. If you have personal savings or assets you can leverage, this can be one way of financing your new business endeavour. However, if you don’t want to put your personal finances at risk, there are plenty of other options available.
A business loan or grant can be a viable way of raising the funds you need, although you’ll want to avoid high-interest rates and costly repayments. Alternatively, you may want to take on investors and share the equity of your business. With angel investors, seed funding and even family and friends, you can successfully obtain a range of funding before your business begins to operate.
Sourcing reliable suppliers can be tricky, particularly if you’re a new business with limited contacts in the industry. Restaurants rely heavily on their suppliers, as you’ll need fresh deliveries on a daily basis. Without a reputable network of suppliers in place, you’ll find it difficult to operate, so it’s important to choose your partners carefully.
Of course, it isn’t just food suppliers you need to take into account. When assessing restaurant energy prices, for example, you’ll want to ensure you get the best rates and low-cost offers from energy providers.
Fortunately, services like Utility Bidder make it easy to find industry-specific energy and utility prices. By scouring the market and negotiating the best possible deals, specialist utilities consultants can help you to find the best energy rates and minimise the costs of running your restaurant.
Build Your Brand
Launching a successful restaurant isn’t just about serving great food in an enjoyable atmosphere. Before you open your doors, you’ll need to spend time cultivating and establishing your brand. Owner-run establishments often capitalise on the person connection when branding their business, but there are plenty of other options out there.
Ultimately, you can choose to develop your brand however you choose, but it’s always advisable to undertake extensive market research first. By understanding the market and your target demographic, you can ensure your brand will appeal to your audience and encourage them to become regular patrons.
Opening Your Restaurant
Launching an eatery is never easy, but it can be a lot of fun. Although running a restaurant requires hard work and long hours, it can be an exciting way to build a business empire. Combining culinary expertise with hospitality, you have the opportunity to create a truly unique restaurant experience.
Of course, once your first restaurant venue is up and running, it’s time to focus on the next one. With your branding already in place and plenty of experience under your belt, you’ll find opening your second restaurant venue even easier than the first! Let us know how you get on.