5 Things When Starting a Restaurant Business

Do You Have A Clear Concept?

First things first, do you know exactly what type of restaurant you want to open? Having a mélange of different food types can put off customers, with many preferring to go somewhere that has a speciality.

However, you may have to balance a fine line - after all, if the restaurant is considered too ‘niche’ this may affect the restaurant’s durability, remaining too faddy to stay open for any more than two to three years.  It is also worth considering whether there is a demand for the type of food you want to serve in the area you plan to open a restaurant.

Is It In A Good Location?

If you have a great concept for a restaurant, but the location that you have chosen to set up the business in is bad, then you are setting yourself up for a fall, in a number of different ways. For example, a restaurant that is in a location with poor transport links or parking means that it will be difficult for customers to reach (or even know about in the first place) whilst a lack of accessibility makes it difficult to hire people.

This is even more pertinent as a new business, wherein you may be relying on younger people to fill up the bulk of your staff, with many under 25 not owning a vehicle and therefore relying on public transport to get to their place of work. It is these little things like that need to be taken into consideration.

Be sure to start your business within the right legal framework and ensure that you adhere to all healthy and safety regulations.

Build A Strong, Loyal Team

One of the most important aspects you should consider when starting a restaurant business is make having a reliable, strong team your top priority, as this will be what will help to sustain and scale the company. Having an extremely knowledgeable team: whether it be a wonderfully talented head chef full of ideas, a great manager who knows how to lead and is extremely efficient, or a friendly service team who go out of their way for customers, are all of these people a very important are fundamental to helping ensure that the restaurant will flourish as well as helping to lead to a loyal customer base too.

Good Financials & Legals

Part of having a good team is having the right people around you to assist with administration, finance and legals. There are commercial property companies that specialise in rent reviews and lease restructuring for bars and restaurants. Their purpose is to help you save money where possible and run the finances of your business as effectively as possible. (Source: Cedar Dean Commercial)

Having Positive Cash Flow

Starting up a restaurant business requires preparation, and one vital thing you must consider is positive cash flow. As a new business, maintaining this is particularly important, as it can be a determinant factor in whether or not your restaurant is able to remain open. Therefore, you should carefully consider what you can afford in terms of stock, the number of staff you can employ, insurance costs as well as things such as rent.