Food businesses and eateries, in particular, are one of the most lucrative business opportunities and that is the reason why many entrepreneurs are tempted to open up an eatery. However, it is often tricky to get eatery successful. Here are some of the important things that you should remember when opening up an eatery.
The first step when setting up an eatery is to have a plan. You cannot just wake up one fine day and start off with your restaurant. There are a number of things that you need to have on paper. Decide a name for your eatery and try to keep it catchy, easy to remember and something that connects with your brand philosophy and menu.
Make short term and long term goals and strategies. When setting your goals, make sure that they are realistic and measurable and define key performance indicators that you will be used to evaluate your achievements.
Once you have your plan sorted, the next step is to choose a location where you would want to locate your business. When picking up a location for an eatery, it is very important to consider a few factors besides rental costs.
Sa, for example, if your business is a café that will target college students, it would not make sense to locate in a business or industrial. Other factors that you should consider include accessibility to suppliers, accessibility of workers and employees and location of competitors.
Nature Of Business
Not all eateries are run in the same manner, therefore it is very important to define what kind of an eatery do you intend to set up. How you will market your business and how you will devise future strategies will primarily be dictated by the nature of your restaurant. Decide if you are targeting a specific niche.
Are you planning a fine dine exotic restaurant or a regular café with a casual setting? What will be the size of your café and how do you plan to scale it? Do you plan to continue to exist as a single establishment or do you wish to open up franchises in other areas as well? All these questions are important to answer in order to ensure you have the right strategy.
Most entrepreneurs who are new to the restaurant industry often ignore the importance of deciding their menu beforehand. Many believe that selecting the menu is one of the last things that you need to do, which is the biggest mistake you can make.
Your menu will decide many important aspects such as how much staff do you need, what specialty should you chef have, and what kind of kitchen equipment will you be needing? If you plan to have a vast menu, it is recommended that you start off by launching only a few dishes that you are most confident about and then expand your menu slowly.
Even if you are a small scale sole proprietor, it does not mean you can bring in your home oven into your restaurant to save up the capital. Invest in commercial grade restaurant equipment, and make sure its capacity matches your demand forecasts. Do not buy something that has a capacity much higher than what you require or else your unit costs will be too high. Likewise, do not invest in something that is under your forecasted demand.
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