There’s no doubt that starting a restaurant business takes dedication. Make a success of it, however, and it can be as rewarding as it is challenging.<\/p>
From the location of your restaurant to designing your menu, there’s plenty to think about. Perhaps the main question to ask yourself is whether you have the drive and energy to make your new venture prosper.<\/p>\n\t\t\t
There are plenty of challenges in the restaurant industry today. Jamie Oliver\u2019s chains, including Jamie\u2019s Italian and Barbecoa, collapsed recently, leading Sky News to ask whether Britain\u2019s \u201closing its appetite\u201d for casual dining.<\/p>
But there are plenty of success stories too. Mexican street food chain Wahaca, co-founded by MasterChef winner Thomasina Miers in 2007, now has 25 locations across the UK. And Franco Manca has popularised sourdough pizza across the country, growing from a small pizzeria in Brixton to operating nearly 50 branches.<\/p>
Making a success of your restaurant requires you to be highly motivated yet patient. It\u2019s a good idea to have restaurant experience already, so you know how to source food suppliers, run a kitchen and deal with customers.<\/p>
You\u2019ll also get to reap the benefits of taking the plunge and going self-employed<\/a> \u2013 being your own boss, working the hours you want, and building something from the ground up.<\/p> Keep in mind though that, especially while you\u2019re getting started, you should expect to put in a lot of time and effort (meaning long evenings and working over the weekend).<\/p> Here\u2019s our nine-step guide on what to think about before you get started.<\/p> First you want to nail the concept for your restaurant. You might have a specific feel and experience in mind, which you can then build a menu around.<\/p> Alternatively you might have the food already and a restaurant is the next step \u2013 for example, you\u2019re selling street food at a stall and want to get it in front of more people. In that case, you should decide on the ambience and service you want your restaurant to have.<\/p> It\u2019s useful to compare the experience customers get in a casual chain like Nando\u2019s with the fare clientele receive in a Michelin-starred restaurant. Where will yours sit on that scale?<\/p> For inspiration, here are some of the BBC\u2019s food and drink trends for 2019:<\/p> You\u2019ve got your idea, but have you done your research? There might be opportunities you haven\u2019t come across \u2013 or challenges you didn\u2019t spot. Doing your homework can help inform decisions you make about your business, including location, menu and prices.<\/p> First, you should carry out proper market research<\/strong> to identify your audience and establish what you need to do to cater to their needs. It\u2019s no good serving up amazing food that no-one will buy. Think about what your ideal customer looks like, then research where they live and work, how much they\u2019d be willing to pay, and what food they already enjoy.<\/p> Next, it\u2019s competitor research<\/strong>, where you check out who\u2019s already operating in the space. This is where you might find there\u2019s lots of restaurants in the area that have a similar concept to yours, prompting a rethink. Or, you could find there\u2019s no restaurants with a similar theme, meaning you should dig around and find out why that is \u2013 is it because there’s no market for it?<\/p> Now you can start building a proper business plan. This should answer a lot of questions before you get started \u2013 and help you secure funding.<\/p> You can read more about how to write a business plan<\/a>, but here are some of the most important things to include:<\/p> When you\u2019re pricing your menu, Start Up Loans suggest that you should aim for \u201ca margin for each dish on your menu of around 65 per cent after the cost of ingredients.\u201d<\/p> Your business plan should address your restaurant\u2019s cashflow, taking its break-even point into account. Start Up Loans also say that most restaurants don\u2019t make a profit in the first year \u2013 so be prepared for that, too.<\/p> There\u2019s lots of costs even before customers get a taste of your menu. You need to make sure you\u2019ve put a comprehensive plan in place to address them all.<\/p> This isn\u2019t a complete list, but it\u2019s a good springboard to help you work everything out.<\/p> Your restaurant\u2019s location is going to play a big part in its success. In fact, it could be the one thing that makes it thrive \u2013 or dive.<\/p>\n\t\t\t\t\t\t\t\t\tHow to start a restaurant business \u2013 step by step<\/h2>
1. Think about new restaurant ideas<\/h3>
2. Explore all your restaurant business opportunities<\/h3>
3. Starting your restaurant business<\/h3>\n
Costs involved in running a restaurant business<\/h4>
4. How to choose a restaurant location<\/h3>