Conduct your Market Research
Before opening any business, it is important to know whether your idea is feasible or not. In terms of restaurants as well, it is important to conduct a feasibility analysis so that you can analyze whether your idea can be successful the way you want it to be. Moreover, to plan your business according to what your target market need, it is important to conduct market research. When conducting a market restaurant for business you can look for answers for the following questions:
- What is your target market?
- What type of restaurants are already popular in your target market?
- Is your restaurant something that your area needs?
- Who would be your main competitors in the area?
- Are your competitors serving the same type of food as you would, or is it different?
- What are the popular themes in your area?
- What would be the popular restaurant locations in your area?
The above questions are just some of the questions that can get you started on basic market research for your restaurant. You can add questions to these based on unique needs of the area you are planning to open the restaurant in.
Your market research is the backbone of your entire plan. You will choose your location, your food, your theme, and your operations based on your market research and analysis. Therefore, before moving on to any big capital investment, you should conduct a thorough market research.
Choose your Location Wisely
Your restaurant’s location is a key to your entire operation and earning revenue. If you open a restaurant in a location anyone barely goes to, then chances are you are going to have a small number of sales, unless you are marketing your restaurant well and there is a lot of hype in the market about your restaurant.
However, it is better to be safe than sorry. So, choose your location wisely based on the market research you have conducted. Your market research should help you analyze the areas where there is a need for more restaurants. Such as new commercial areas in your city, new malls, or new housing societies, etc. Therefore, use your market research while choosing your location and make sure you are opening it at a place where there is a need for your restaurant.
Assess your Capital
One of the biggest mistakes that can be made at the planning stage of a restaurant is underestimation of capital requirements. If you have launched your restaurant already and your capital needs were underestimated you would have a challenging time maintain smooth operations. Therefore, it is important to have a realistic view of your capital requirements and it is recommended to keep the capital overestimated.
Plan According to your Capital
Once you have assessed your capital needs then plan the operations according to your capital. For example, the equipment you need to purchase, which suppliers to choose, how to hire the staff, what kind of salary you would be able to give your staff, etc. Once you have drawn the basic plan move on to:
Focus on Operations
It is important to plan your operations before the launch, because a smooth operational plan will decide how your restaurant is ran. If you are planning to be a restaurant owner and a manager, then you can plan the operations yourself. Otherwise, it is better if you hire a small team in advance, or even outsource the work to a consultancy to plan your operations with you so that the operations process can be smooth.
In a contemporary restaurant environment, there is a debate on whether to use a POS or a cash register. For an effective integrated system where you can track and record everything from one place, it is better to use a POS.
Decide the Menu
Once you have done the planning of the location, food you will serve, then it is time to decide your menu and prices. There are two takes on deciding the menu and printing it. Some experts recommend not to put prices on the menu because that will urge the customer to only choose low price items from the menu. However, you can only do that if you have a high-end clientele who would not care about the prices.
Invest in Marketing
One thing you cannot be cheap about if you want to open a restaurant is its marketing. Your marketing is going to decide how successful your restaurant is going to be. Therefore, you should utilize any medium of marketing you can create a hype about your restaurant. If you can run a successful marketing campaign, which creates hype about your restaurant, your restaurant is guaranteed to have sales even if it is same as the other restaurants in your area.
Train your Staff
If you have hired new and unexperienced staff to cut down on salary expenses and keep them low, then it is advisable to train your staff before your launch date. Teach your staff on how they should greet the customers, how they should look themselves, and how to handle tricky situations so your launch is successful.