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How to Start and Run a Small Restaurant Business


How to Start and Run a Small Restaurant Business


Setting up and managing a restaurant business is no walk in the park. Your reservoir of enthusiasm and a set of brilliant ideas can take you only so far. Apart from them, you really need to know what you are getting yourself into and have a realistic plan in place. After all, the success hinges on a combination of different factors, none of which you can afford to overlook. So, take a deep breath and take a look at five key areas you may want to focus on.

Choose a perfect location

Location makes or breaks the success of any restaurant business. Going for a remote location may seem like a frugal choice, but it is a dicey proposition. Without plenty of foot traffic or stellar marketing to guide people your way, you are not likely to survive there for very long. Ideally, you are in a neighborhood where a lot of your target customers live and spend their time. Your venue is visible from the street and there is a plenty of parking space nearby. You also don’t have to compete with a dozen other restaurants in the vicinity.

Build a strong team

You are the face of your business, but you can’t do everything on your own. You also need a group of motivated people around you. So, work out a solid hiring policy and look beyond mere experience in the resume. Namely, see to it that candidates relate to your mission, are passionate about working for you, and that they are the right cultural fit for your business. With the right people onboard, you can delegate without hesitation. You will be able to get some tasks off your plate to focus on things that matter the most (such as managing finances).

Purchase quality equipment

Equipment is essential for quality food preparation and presentation. Australian restaurants, for instance, know that skimping on it is not advisable and they tend to buy high-quality refrigerators, ovens, catering pieces, and other equipment that is used every day. While at it, they also rely on trusted local providers like this commercial Sydney electrician to do the wiring.  This is a sound course of action if you want to enable your chefs to work their culinary magic. Beyond that, it pays off to invest in solid furniture in the seating and dining area.

Put together a killer menu

A menu is another crucial piece of the success puzzle. Despite what some think, there is just one hard rule here: it has to resonate with your target audience. So, do your research and figure out what people would like to taste. Scope out the competition and keep an eye on industry trends. Try to stand out from the crowd and be creative— offer something other restraints fail to. Note that your menu should fit the theme of your restaurant (if you have any) and that you can add new meals to it in order to keep things fresh and interesting.

Promote your business

Finally, launch your marketing campaigns. Set up a website and profiles on major social networks. You should consider image-heavy platforms like Instagram because they allow you to easily share photos of your restaurant and meals. Fill the pages with important business information and great content. Feel free to explore traditional and guerilla marketing avenues as well. Hand out flyers and other print material. There is really no shortage of cost-effective options for generating leads, boosting visibility, and spreading brand awareness.

As you can see, there is a lot of ground to cover before you can finally open doors to a swarm of hungry customers. Like it or not, you have to do your homework, find your target audience, and validate your ideas in the light of facts and figures. Furthermore, it’s important to pick a suitable location, hire great people, and blow guests away with your menu. On top of that, you can maximize your chances by engaging smart marketing and spreading the word around.

Following these steps, you will not only get your operations off the ground, but also maintain a healthy profit margin.

You may also be interested in: How to Start a House Flipping Business

Writer: Cooper Klien

Disclaimer: All investing can potentially be risky. Investing or borrowing can lead into financial losses. All content on Bay Street Blog are solely for educational purposes. All other information are obtained from credible and authoritative references. Bay Street Blog is not responsible for any financial losses from the information provided. When investing or borrowing, always consult with an industry professional.

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