If you plan to open a restaurant, the first thing is to recognize which segment the proposed venture fits in the industry. It is crucial to understand competition as it will help you know the right strategy for starting a restaurant. Establishments are segmented loosely from a fast-food joint to a five-star dining experience.
Here is a checklist on how to start a restaurant
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Cost of opening a restaurant
A restaurant requires a substantial investment to set up the infrastructure. One must budget the initial capital investment needed to start the operations. Some essential costs to consider are
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- Trade license, including food license
- Purchase or renting of property to start the restaurant
- Permissions from authorities
- Infrastructure – tables, chairs, Kitchen Equipment, signboards, interior décor, etc.
- Software for daily operation
- Staff training and insurance
- Working capital
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Business license
Getting Personal Licence is essential before starting a restaurant business. But submitting an Interior design layout blueprint of the restaurant premises is also very important. This is the blueprint contains:
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- Entry and exit passage
- Food processing area
- Food equipment area for cooking
- Food storing area
- Ventilation system and windows
- Dishwashers and other hotel equipment
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Decide the concept and USP of the restaurant
One must have a unique concept to help the new food joint stand out among the competitors. Having an innovative restaurant menu, an unusual restaurant theme, a different style of service, and a pleasing ambiance help attract customers.
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Deciding restaurant location
A restaurant location plays a crucial part in its success and failure. If you want to have your restaurant open in the right location, the following factors are essential.
- Visibility
- Accessibility
- Customer base
- Affordability
- Raw material supplier proximity
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Curating menu
Before opening a new restaurant door, it is essential to curate a menu that would feature what it would sell and at what price. The menu pricing has to be done in the right way to cover the operating cost and add the desired profit margins over it.
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Designing restaurant layout
The restaurant layout is critical as it is the first and foremost part of laying restaurant infrastructure. Therefore, proper planning is a must where the format will support easy day-to-day operations. The seating ambiance and free space for diners to move around freely are crucial for a restaurant’s success.
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Investing in technology
Investing in an efficient POS system eases day-to-day operations. From smooth and error-free billing operations, supervising orders and overseeing various departments, managing stock inventory, generating reports, and analyzing customers’ preferences with technology. Learn more about available systems at https://www.rssts.com/table-service-pos/.
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Qualified staff hiring – a critical process in how to start a restaurant
The restaurant business requires staff in different roles, such as chefs, Cooks, Managers, Servers, Bartenders, and cleaning staff. It is essential to hire minimum numbers of employees with the right qualifications initially, increasing as the business scales up.
Conclusion
Starting a restaurant is complex and tedious and requires an in-depth business plan. This is also a tough business, and one must not only know how to open a restaurant and sustain it. More than 60% of restaurants fail in their first year of operations.
