How To Cook Up The Best Restaurant Business Plan

It seems like everyone has a dream to open their restaurant. With approximately 1 million restaurant establishments in the U.S., the thought of owning a restaurant sounds exciting. But is this industry profitable? Well, more than 195 million U.S. consumers visited a sit-down restaurant, and food and drink sales of the U.S. restaurant industry amounted to approximately 766 billion U.S. dollars in 2016. In the growing F&B sector, food-service operations have skyrocketed and will continue to grow in the future.

Starting a restaurant from scratch is not easy. However, if youʼre unfazed by the hardships and are more than willing to take on the challenges of starting a restaurant, that is half the battle won! There is no secret to having a successful restaurant, but there are several things you need to know before you get started, and that is why we have created this ultimate guide on how to start a restaurant business.

What You Need to Open a Restaurant

So, youʼre ready to start your restaurant? Great! We can help you take your first step. Before we begin, itʼs important to note that many factors come into play when opening your restaurant, such as the restaurant concept, choosing the right location and how you plan to market your business. Be sure to follow along as we compiled steps to opening a restaurant.

1. Restaurant Business Plan

First things first, you need a restaurant business plan. It helps you estimate the costs of opening a restaurant and chart the growth of your brand. Having a restaurant business plan shows potential investors the feasibility of your business. Youʼll also be able to learn about your competitors and the prospects of the industry youʼre about to dive into. Business plans also give you a clear direction of your restaurantʼs branding and what your concept is going to be.

2. A Niche

Once youʼve understood the concept business plan, choosing a niche comes next as this will help quicken the process when deciding on other factors like your target market or menu. Your personality and preferences should be taken into consideration when crafting a niche in the F&B market that fits you like a glove.

3. Target Market

Next, itʼs time to think of who youʼll be selling your food to. Your target market has to be in line with your niche. We know that there is an urge to satisfy everyone, but the reality is, you will not be able to capture 100 percent of the market. When you try to please everyone, chances are, you end up pleasing no one. Hence, you should focus on a segment of the market that you are targeting, and leave the rest for now.

4. Location

Of course, food and services are essential to the success of a restaurant, but its location is just as crucial. If your restaurant is in an unfavourable position, you would not be able to attract enough customers to stay in business. There are many factors to consider, like visibility and competition, when looking for a location for

5. Menu

Did you know that something as simple as sprucing up your menu with these 3 tips can help boost your sales? Make sure youʼre up to date with the latest food trends in the F&B industry and incorporate them into your list of product offerings. Consider factors such as the different types of dietary requirements (vegan, vegetarian, low sodium, etc.) too. Also, ensure that your menu descriptions sound appealing enough to make customers salivate!

6. Marketing & Promotions

Establish a strong social media presence to get to know and engage your customers. You can even obtain their email addresses and send them newsletters of upcoming menu items and promotions. You can also hand out flyers or print posters to plaster them outside your store. The bottom line is, donʼt ever stop promoting your restaurant because the competition is fierce and you need to compete for your customersʼ attention (and their money).

7. Human Resources

Next, you need to hire employees for your business. Develop a comprehensive job description that outlines the jobsʼ duties and responsibilities and any special requirements. Once that is done, you will have to consider the salary rates. Find out what the rates are like in your area or your line of business. Establish a minimum and maximum wage for each position youʼre offering.

8. Restaurant Startup Costs

Now that youʼve got the whole idea of your restaurant, you need to invest some money to make your dream into reality. However, how much exactly would it cost? Unfortunately, there is no specific answer to the amount you will spend as the costs vary depending on many factors.

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