Starting a new restaurant involves extensive planning, which can also be costly, necessitating business owners to either utilize personal funds or secure additional financing. However, these challenges should not discourage hospitality entrepreneurs from pursuing their aspirations of launching and managing a restaurant. In this concise guide, we will explore the list of things to do before opening a restaurant. And what steps are needed to open a successful restaurant?
Launching a fresh venture demands meticulous planning, dedicated effort, and shrewd choices, particularly when it comes to opening a restaurant. Initially, it is crucial to establish a distinct concept for your restaurant that sets it apart from competitors. Whether it involves showcasing cherished family recipes to a wider audience or creating an innovative ambience for a novel dining experience, your concept should be intricately woven into every facet of your enterprise.
Three Types of Costs For Starting A Food Restaurant
Property contract costs
Property contract costs refer to the expenses involved in finalizing a property agreement. These expenses typically include an upfront payment of rent as a deposit, key money, agency fees, and other related charges.
Shop investment costs
Shop investment costs are the expenses necessary to operate a restaurant, such as costs for the building's appearance, interior design, kitchen equipment, and staff wages. If a restaurant owner rents a place without furnishings, they need to spend money on adding furniture, setting up the kitchen equipment, and installing proper lighting. However, if they find a vacant property where they can use the previous tenant's interior and equipment as is, they can open their business with less money.
Working capital represents the money needed to run the shop on a daily basis. It's important to have this capital in advance to maintain cash flow until the business becomes profitable. You can divide your total funds as below:
· For rent = 10%
· For employee salaries = 15%
· Other expenses = 10%
These funds are covering a period of six months.
List of Things to Do Before Opening a Restaurant - 7 Key Steps
Opening a restaurant requires a lot of planning as well as ample resources. Here are the top 9 things to follow to not only but also run a business that lasts.
1. Concept Design
To begin with, create a clear concept for your restaurant. Define the type of business, target audience, price range, and other specific details. Determine the unique identity and style of the restaurant. A vague concept can make it challenging to stand out from competitors, leading to potential difficulties for hospitality operators in the future.
In the concept design, consider the following items in detail:
· Purpose or goal of opening the restaurant
· Opening times and opening hours
· Customer service, other services, and advertising methods
2. Business Plan
In a business plan, you will have to list the total expenses of your business and how you will make it successful. So make a successful plan in this section. It helps hospitality owners understand how to steer the restaurant's future. Additionally, the business plan can be used to track progress and make informed decisions after the restaurant is launched.
A business plan is important when a restaurant owner wants to get a loan or raise funds. It gives crucial information to financial institutions, demonstrating the restaurant's potential success and profitability.
The plan should include the following:
· Business description
· Management strategy and points of differentiation from competitors
· Method of operation
Don’t neglect the importance of packaging. Because packaging is part and parcel of your food business. So it is recommended that you use customized packaging for your food business. Moreover, are one of the best options. You can have your restaurant's logo on these boxes. That way, you can easily spread brand awareness among people.
4. Restaurant Property
After writing a well-defined business plan, find a suitable property for your restaurant. Make sure the location resonates with your restaurant's image and budget expenses. Begin by searching for properties through a real estate agency, conducting preliminary inspections, and viewing the properties of interest. Afterwards, submit an application, and if it passes the screening process, you can proceed to sign the contract.
During your property search, it is advisable to involve a construction company in advance. They can assess the property to ensure that your desired construction can be carried out and that the planned number of tables and seats can be accommodated. Discovering such limitations after signing the contract leaves no room for reversal. Remember to consider whether the desired exterior and interior work can be executed and seek the guidance of a professional when selecting a property.
5. Raising Finance
To successfully open a restaurant, having enough funds is essential. Restaurant owners often begin by using their personal funds to finance the venture. However, if your funds are used, then raise more funds for your business.
They can do the following:
· Obtain a loan from a bank.
· Grants or subsidies
· Ask friends or family to invest in your business
· Use crowdfunding
6. Interior And Exterior
After finding the right property for your restaurant, pay attention to its design. The interior and must be appealing. Moreover, see the following points for more information.
1: Planning and basic design
3: Contract and start of construction
After completing the planning and initial design phase, it is time to estimate the construction costs. Typically, these estimates take one to two weeks to finalize. The total cost comprises the unit price multiplied by the square meters, along with additional expenses for facilities like electricity, gas, and utilities.
7. Getting Licenses And Permits
To establish a restaurant, several licenses and permits must be obtained. These include a business license, a food license from the public health office, a sign marketing license for the restaurant shop, and, in some cases, a building health permit.
It is often mandatory to have at least one "food hygiene manager" on staff. In certain countries like Japan, restaurants with a seating capacity of 30 or more individuals are also required to have a "fire prevention manager." While chefs typically do not need a specific license, having one can enhance the restaurant's credibility.
For establishments serving alcoholic beverages past midnight, a "Late-night alcoholic beverage serving restaurant business notification" is necessary.
The bottom line, you can read a list of things to do before opening a restaurant. We wish you the best of luck with your new food business. Further, share this post with other people too.