Restaurant business has become a very lucrative and profitable business today. Food is an important aspect of life, with food human being cannot exist. There are a lot of factors that has increase the growth and expansion of restaurant business today. A lot of people patronize restaurant for different reason. There are some bachelors who find it very different to prepare their own personal meal. Also there are some people who don’t have the time to prepare their own personal meal because of the nature of their job. All these people have no choice than to patronize a restaurant. These are some of the factors that have actually made restaurant business to strive. We are going to discuss the 5 basic tricks on how to start a profitable restaurant business. The following are the 5 basic tricks on how to start a profitable restaurant business.
1. Try as much as possible not start without a big three. The gospel truth is that no restaurant succeeds without a great chef, a great location, and a great concept. All these aspect work together. Try as much as possible to make sure that your location fit your concept. Also your chef, or “talent,” must fit your concept.
Don’t listen to people that will tell you that location doesn’t matter. The truth is that location is very important in the area of setting up a restaurant business
Accessibility is everything. The more accessible you can make your restaurant, both in terms of location and in a broader sense, the greater your chances of success. The thing is that if you Look at the most successful restaurants today they are accessible in terms of location, brand, and price point. Fast casual restaurants are booming because they’re incredibly accessible on all levels.
2. Try as much as possible to always overestimate your capital needs. One of the ways to succeed in restaurant business is when you plan on having six to nine months of working capital from the start. You’ll be surprised by how quickly the expenditures add up and how much time it takes for a new place to grab hold and get legs/regular customers.
Many new restaurants see a major downswing in business after the opening’s initial excitement. That’s when capital is critical. If you find out very well you will see that a lot of restaurant owners start out with cash in reserve and start blowing it because they think the honeymoon phase will last forever. These are the major reason why most restaurants go out of business. Never let initial success go to your head. Success is only determined years later.
3. Try not to be cheap where guests are concerned. Make sure that the most important money you will spend is money that adds value to the guest.
Some restaurant owners normally make these mistakes, they will go cheap on certain things like equipment, valets, and even desserts. That was short sighted, because everything that touches a guest is important.
Try as much as possible to determine a percentage of your revenue to put into improvements that affect the guest and constantly enhance their experience. Some big restaurant today don’t spend money on advertising or marketing but they run a very high level of comps. They give away gift cards and send a lot of complimentary dishes to tables.
Guests love when a dish comes out and the server says, “The chef wanted you to try this,” because that creates a real connection and makes the experience personal.
Also try to make sure you spend as much money as possible on the guest experience. Spend money on the people already in your restaurant, because that’s the best way to generate genuinely positive word of mouth.
4. Try also to focus on organization and systems of operation. One of the great mistakes most restaurants normally make is that they fail to put system in place.
Some of these restaurant owners don’t want to come off as corporate; to them, the “C” in the word “corporate” is like the Scarlet Letter. To embrace systems would be like selling out and becoming a chain.
What you should know is that Organization doesn’t kill the flow of creativity. Putting outstanding systems in place gives you the freedom to be creative.
5. You have to be ready to evolve, especially if you are a chef. If you look at what is happening today you will find out that many businesses are started by a craftsperson with an idea for a product. It is very difficult for that idea to become anything unless that person partners with someone with a complementary ability, like, “You carve wooden bananas and I can sell them for you.” That’s when an idea becomes a business.
The following mention above are the 5 basic tricks on how to start a successful restaurant business.
Wish you all the best in the business.