The upward trend of eating out is excellent news for future restaurateurs. But benefiting from this trajectory requires some strategic planning.
The allure of the restaurant world is strong if you ask me. Sampling savory dishes, carving out sleek ambiences and creating memorable customer experiences entices countless hospitality hopefuls to attempt their own culinary ventures.
As exciting as it might seem, additionally it is notoriously tough to reach your goals in the meals business. Actually, around 60 percent of restaurants fail within the first year and 80 percent don’t make it with their fifth. Depending on where you are, those odds could be even tougher. Take NEW YORK, for instance: there are 12,508 restaurants listed on reservation platform, Open Table. And according to a 2016 study by NPG Group, only 2.7 percent of Gotham restaurants are independently run.
Obviously, the culinary world isn’t exactly waiting with open arms for new members to become listed on the ranks. Despite those discouraging odds, opening a restaurant is still an extremely sought-after dream for foodies and entrepreneurs alike.
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As I’m focusing on opening up my very own restaurant now, hearing the statistics above had not been encouraging. However the news isn’t all bad: You may still find new entrepreneurs building successful restaurants continuously. And after digging through more research, I came across that 2017 may be an ideal time for entrepreneurs to enter the restaurant business, taking into consideration the growing trend of Americans eating dinner out.
Although the marketplace is tough, there happens to be a demand for restaurants. According to a 2016 QZ report, Americans spent additional money at restaurants than on groceries in 2016 — thanks, partly, to a cultural shift pulling people from their kitchens. The upward trend of eating out is excellent news for future restaurateurs. But benefiting from this trajectory requires some strategic planning. There are actions you can take to create yourself up for success before you even open your doors.
One of the better ways to generate a splash on the culinary scene is by supplying a brand new experience. No matter where your home is, the locals probably aren’t begging for a whole new pizza parlor, meaning that assuming you have dreams of flipping dough, it may be more challenging to break through.
Consumers will be intrigued by a whole new idea. Furthermore, there’s always potential to benefit from an untapped niche — it might just require some outside-the-box thinking. In 2016, actress Jessica Biel opened Au Fudge, a kid-friendly restaurant in LA. Now, you could be rolling your eyes at another star going for a stab at the meals industry, but Biel’s intentions weren’t just to expand her personal brand. Rather, she saw a definite need for a fresh kind of restaurant.
AS OF THIS Restaurant, Human Interaction Is Discouraged
Biel, a fresh parent herself, wished to manage to dine out with her child without sacrificing quality and dining experience. Typically, restaurants that focus on children usually do not have the state-of-the-art or healthy menu options. Au Fudge satisfies both needs and has opened the entranceway to a whole new restaurant niche in LA — upscale, kid-friendly and organic (that is Los Angeles, in the end). Within Au Fudge, the youngsters nosh on healthy versions of kid staples, while being taken care of by au pairs in playrooms. Meanwhile, their parents enjoy some respite over a cocktail and a vegan quinoa Caesar salad. It’s a win-win for all and a whole new take on a family group friendly dining experience.
A good business plan is really as necessary to a restaurant’s success as a reliable chef, nonetheless it often gets hastily overlooked in the look process. Your business plan can help you, your partners and investors chart the map to success — and in addition arrange for the worst. Your business plan must add a market overview, competitive analysis, market insights and realistic budget projections.
Opening a restaurant could be a volatile process, but planning out every possible scenario will help you make the very best decisions for your venture. A thorough business plan may also assist you to thoroughly chart your capital needs. Restaurant experts recommend securing six to nine months of working capital before you open your doors.
Scott Mowrey, a managing partner at hotel and restaurant consulting group VSAG, cites incomplete planning as an extremely preventable, yet all-too-common pitfall among first-time restaurateurs. “It’s tempting to pour all your time into designing a sleek space and creating a forward thinking menu, however the operations of your restaurant, from creating an authentic financial model to systems, to training and expense control systems will be the real contributors to success and longevity," he says. "Determining your operational needs starts with a good business plan.”
A poorly plotted location can make or break your restaurant’s success. Checking within an area without much foot traffic or roadway access will discourage potential visitors. However, renting an area on a block filled up with beloved establishments may also make it difficult to attract clients.
4 Keys to Opening an effective Restaurant
Locating the best location largely depends upon your city and varies from cities to suburban areas. Additionally, leasing requirements and building permits may also affect your final location selection, and as those processes may take months to finalize, it’s better to start the positioning scouting process as soon as possible.
These three priorities will serve as the inspiration to your restaurant’s success. With a genuine concept, business plan and location, after that you can move to developing the more creative areas of your business, including choosing the best talent, creating a menu and designing the client experience.
Starting a restaurant can feel just like the Hunger Games, but with careful planning you can set your own future venture up for a