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3 Essential Steps for Success for New Restaurant Owners

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StrategyDriven Entrepreneurship Article | 3 Essential Steps for Success for New Restaurant Owners

The first year is the most critical one for any new restaurant, and if you make mistakes during that time, there is a strong chance that you will put your business in a financial hole that it can never get out of. This is why you need to take your time before you start one and know as much as you can about the restaurant landscape in your area. You may also have to dispel some ideas you have about the restaurant business so you can avoid mistakes. Here are some of the essential steps for new entrepreneurs in the restaurant business.

Increase Foot Traffic with Efficient Signage

Big restaurant chains take a lot of time choosing their colour scheme and signage, and there’s a good chance that restaurants like McDonald’s would not be as successful as they are today without theirs. This is why you need to learn what makes good shop signage and make sure that yours is as eye-catching as possible.

This is not something that should be glossed over as an unimportant detail. Just spending a little bit more time and money on signage could make a world of difference in your foot traffic and it could even affect the way the quality of your food is assessed, so take your time and pick signage that will attract the attention of passers-by and help you establish a brand.

Keep it Small

If you are thinking of opening a huge sit-down restaurant as a first venture, you should reconsider the idea. Big restaurants cost a lot more to manage, and you will need to make a lot more sales to stay afloat. Not only that, but bigger restaurants have a lower cap on the number of clients they can serve and will never be able to beat the volume of a smaller takeaway. So, take the glamour factor out and focus on sales and low overheads first.

Another thing you have to be careful with is to not go overboard with the menu. Restaurants like Five Guys only have a handful of choices, and it is one of the major reasons for their success. This allows them to streamline their inventory, buy what they need in bulk, and avoid waste. There are also very few advantages to having an unnecessarily long menu as most of your sales will come from a couple of items. This is why you need to concentrate on your specialities and only try adding a few menu items later if you feel like it needs more variety.

Hire Well

Staffing issues are one of the greatest struggles for restaurants, and if you can’t manage to find employees who will be loyal, efficient, and trustworthy, you will have trouble in this industry. If you are thinking of doing the hiring on your own, you should consider working with a third-party team instead. A good team will be able to help you find great talent fast, form them, and help with other things like payroll. All of this will simplify your operation, allow you to retain more of your employees, and help you focus on what matters.

All of these tips should increase your chances of making a profit in your first year as a restaurant owner. Take the time to look into them in detail and consider speaking with a consultant before you start so you can avoid pitfalls and build your business on a solid foundation.

Refining Your Craft: 4 Aspects of Business Every Restaurant Owner Can Improve

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StrategyDriven Managing Your Business | Entrepreneurship | Restaurant | Refining Your Craft: 4 Aspects of Business Every Restaurant Owner Can ImproveMany restaurateurs get started with visions of rave reviews and prestigious awards dancing before their eyes. Running a real restaurant, though, almost always turn out to be more difficult and demanding than expected.

Fortunately, there are a number of proven ways for restaurant owners and operators of all kinds to raise the bar higher. There are at least four important facets of the restaurant business that can almost always use some attention.

1. Double Down on Accounting

Laypeople sometimes believe that the most popular restaurants get by entirely on the quality of their food and service. In reality, every successful restaurant rests on a firm, carefully laid financial foundation.

When a restaurant does not feature plenty of enlightening, useful accounting behind the scenes, its days will necessarily be numbered. Upgrading a restaurant’s accounting processes and systems can easily end up being the best way to ensure its long-term viability.

Fortunately, that is easier to achieve than at any time in the past. From focused franchise accounting services to one-off consulting projects, the required kinds of support are now readily accessible.

When a restaurant’s accounting game has become truly well-developed, the entire establishment will be a lot more resilient. Accounting is so important to every restaurant that it often proves to be the best place to look for ways to improve.

2. Cut Down on Waste

Well-run restaurants tend to feature menus that account for every bit of expense tied up in each dish. Even when a great deal of planning has gone into developing a business-informed menu, though, excessive waste can alter the equation significantly.

From scraps that get thrown out instead of being turned into stock to misfired dishes that end up in the trash, waste is a pernicious problem in the restaurant industry. Having strong accounting processes in place will make it easier to identify areas where waste can be reduced or even eliminated.

Over time, that will contribute directly to the continued viability of almost any restaurant. While some level of food waste will typically prove unavoidable, keeping on top of this universally relevant problem will always be best.

3. Make More Efficient Use of Workers

Most restaurants spend just as much on labor as they do on procuring fresh, delicious ingredients. In many cases, though, restaurant workers find their talents being misdirected or even neglected.

Looking to make the most of every employee hour can cut a restaurant’s costs significantly. Having a salaried sous chef handle some additional duties might make it possible to reduce the number of hours scheduled for prep cooks.

Of course, workers have rights and limits, and these always need to be respected. In most cases, simply taking a regular look at how staffers are being employed and when will reveal opportunities for improvement.

4. Speed Up Service

Restaurateurs who are passionate about food never want guests to feel rushed. That generally hospitable approach to the business can encourage excessive slowness if not properly controlled.

Keeping things moving along in the dining room and the kitchen can allow a restaurant to serve more diners each day or night. That can end up raising revenues significantly without adding much to the operation’s costs. In some cases, this can even turn a formerly unprofitable establishment into a successful business.

There are Ways to Improve Any Restaurant’s Operations

Tactics like these consistently help restaurant operators make much-needed progress. Some of the most successful restaurants got there largely because of behind-the-scenes efforts like these. While great food and refined service will always help, restaurants that rest on solid foundations tend to have the best chances of success.