No doubt about it: the restaurant business can be tough. Between the competition and the (often thin) profit margins, new restauranteurs have their work cut out for them. Fortunately, knowing what to expect can help you create a detailed plan for your success. As part of the process, you should be aware of common missteps—and build strategies that help you dodge them.
If you’re preparing to open an eatery, here are five mistakes you should avoid…
1) Neglecting the concept
From your menu to your decor to the general atmosphere you create, every element of your restaurant should be part of a larger concept. Whether that’s family-style BBQ, fine dining with a twist, or something else altogether is entirely up to you—so long as you keep it consistent.
Your investors should grasp your concept immediately when you describe it, and—when the time comes to open—your customers should be charmed by it the moment they walk in the door. Put simply, forging ahead without an idea that ties everything together is a rookie mistake.
2) Choosing the wrong location
It’s no secret that location can make or break a restaurant, but those who are new to the business often underestimate just how crucial it is. First off, foot traffic matters. Getting a sense of how many people will walk by your eatery on any given day—and whether they’re your potential clients—is key.
Of course, there’s more to it than that. Nearby street parking, local competition, and a host of other factors need to be accounted for during the selection process. If you want your business to thrive, put plenty of time into choosing just the right place.
3) Failing to do due diligence
It will come into the picture when you search for the value of a property or restaurant business you’re interested in buying. From there, you’ll need to handle it at every step by adhering to rules, regulations, and codes. It’s due diligence, and underestimating how much of it you’ll have to perform is a major mistake.
In this industry, knowledge is power. The best way to prevent delays—and ensure that opening and running your restaurant is as seamless as possible—is to do your homework. Start by working with a real estate agent who knows the industry, inside and out.
4) Not managing financial resources effectively
One of the biggest mistakes new restauranteurs make is creating an off-kilter budget. Whether your emergency fund is too small to cover an unexpected cost, or you overspent on renovations, mismanaging your money could lead to major problems down the line.
Budgeting is all about forecasting your sales and predicting your expenses as realistically as possible. Moving forward, remember to always keep cash flow in mind, and don’t make any purchases unless they’re strategic. Last but not least: when in doubt, talk to your financial expert!
5) Staffing poorly
You’re only as good as your team, so make sure you hire wisely. If your restaurant is part of a franchise, seek recruiting support from headquarters. If not, take the time to learn best practices for screening candidates in the hospitality sector.
Don’t forget the importance of training! That means having a process in place to onboard new hires, and making sure it provides an appropriate preview of what a day at work will really be like. Restaurants have notoriously high employee turnover, so make sure your staff is supported at every step!
ON THE HUNT FOR THE IDEAL RESTAURANT SPACE? REACH OUT TO LEARN HOW I CAN HELP YOU MAKE THE SMARTEST PURCHASE POSSIBLE!
5 Comments
Comments are closed.