A restaurant is a very lucrative business, and they are coming back in full swing after the pandemic. It can be the right time for entrepreneurs to look into this. However, setting up a restaurant that will run profitably involves many steps and tasks ranging from conceiving an idea to getting equipment like a commercial fridge. Here is a guide to the preliminary steps to get an eatery up and running.
Concept and Identity
This is probably one of the most fun steps in the planning process. Firstly, one needs to come up with a concept for the business. This includes the style of the eatery and the cuisine to be served. This will ultimately classify the restaurant into a “type”. This can help in tapping into specific voids in the business of an area. The target demographic can also be considered when deciding on a concept. Elements such as the brand name, logo, and merchandise should also be chosen. All these should be cohesive and should portray the identity of the brand.
The next step is to decide on the menu of the eatery. The menu can have many implications on many other aspects of the restaurant. This includes the equipment and staff requirements and the crowd that it will attract. The proposed location can have a significant impact on the menu. The menu should cater to the people in that locality.
A business plan is integral to any such project. They bring clarity to the more delicate elements of the business, mainly the financials. They are also required to prove that the company will be successful when applying for loans.
A restaurant can be costly, and one should decide on how they will procure the funding. Loans are one way to go about this. There are both commercial loans and small business loans. Commercial loans can have access to higher amounts as compared to small business loans. Finding investors is also another way to obtain funding. However, the ownership structure may have to be compromised in such cases.
Space and Permits
Once the funding comes through, one can proceed to lease a space in the selected location. Keep in mind that the room needs to be both financially viable and attract customers. Once leased out, the area needs to be arranged and decorated. Permits are another essential item in running a restaurant. It is recommended to take the help of legal professionals when dealing with these. They’ll provide the necessary assistance in their procurement.
Equipment and Staff
There are many types of equipment necessary to run a restaurant, depending on their type. These range from commercial fridges to brick ovens. One should consider the operating capacity and choose an adequate number of appliances for smooth functioning. Many items can be easily bought online too. Hiring the right staff is also very important to the business. One should provide decent packages to ensure maximum productivity and employee retention. Making a list of all the positions that need to be filled can help in prioritising them. One should also decide on how many days the eatery will be open and choose suitable shift timings.
Advertising is the only way to spread the word about the business. Websites are often created for this. Accounts on other websites like Yelp and TripAdvisor are also beneficial. Social media is also a potent tool in marketing and promotion.