Restaurant or Food Cafe Business

Restaurant Business - A Food Based Start-up Business Idea

Restaurant or Food cafe - Business Startup Idea

Start/Open a Restaurant or Food Cafe

Hi Friends,

       Again, there is a new business tips for you today and today we will talk about how to start/open a restaurant.

      A lot of people think that I should open a restaurant. However, running a restaurant is not easy and it requires a lot of patience and skills to operate. In this article, we will discuss about the challenges faced during running the business of the restaurant. Restaurant Business is profitable despite the huge risk.

      This is a difficult and costly system. And really various restaurants shut down in their first year itself. In any case, by following a portion of these simple tips, you can likewise run an effective restaurant or cafe.

     In Asia, the restaurant business is the most demanding business, due to the increasing demand for online food delivery. This industry has gone ahead in today's era and will go further in the coming tomorrow. If you also want to do your business then the restaurant is a Good option. And along with lack, your growth will also be very good because every person feels hungry and not once a day but very often and it is not a factory made product that anyone likes. If one does not like any item, then another will like it and it is not possible that if you start with only two or four items in your restaurant. 

     Then if this business is done with proper planning then you will spread. It is not guaranteed. In fact, you choose the right place. Do not open in such a place where there is less crowd. So let us know the whole process.

Restaurant Business Plan

      Like some other kind of business element, a cafe will require a succinct business plan including in general idea and objective of your eatery, explicit monetary data and evaluations, depiction of your objective market, your menu and valuing, gear and worker subtleties, a promoting and showcasing plan, and a potential leave system.
     
     You can also do Coffee Shop or Cafe Business along with this Business.

What kind of restaurant to open

     Before doing any work or taking any such big step, think well. Even if it takes you a month to think and plan. But until you understand the complete plan, then you can keep writing in copy and make your strategy what you have to do. So here too, your first task is to decide what kind of restaurant you want to open, like example- veg restaurant, non veg restaurant, fast food, dining restaurants or according to your location, you can see that What kind of restaurants would you like to open. 

      And I tell you that it is not a bad thing to ask anyone, so before you open a restaurant, go to those who have already been successful in this field and get information related to it. Keep in mind that you are going to ask any man in your area, if you speak to open restaurant in the location of that. He will not open up to you because he thinks that you will open your restaurant in their nearby location. The body will be damaged for him. Therefore, the person whom you are going to ask, you should tell the location somewhere far away. Now if you have decided that you will open up a restaurant, then the second question will come that how much will be spent in it.

Investments

There are three ways you can invest money for your restaurant-

1. Self-funding

   If you have enough money in the bank, then congratulations. You have crossed the first hurdle to open a restaurant. It is also a good idea to open a restaurant in partnership, as it reduces the risk of investment. You can do it with taking franchise of a reputed company or entity.

2. Loan

    You can take a loan to fulfill your restaurant's dream. However, there can be difficulties in getting a loan from a bank.

3. Venture Capitalist Funding/Angel funding /Investors

   Getting an Investor on the board can be difficult. Especially if you have a first-time venture, Investors generally seek the growth potential, quality and scalability of your model in your restaurant venture.

Costs incurred in a Restaurant Business

   Restaurant costs are a major part of running a restaurant and when you think about starting a restaurant business, it needs to be evaluated and planned.

Major Restaurant Costs are-

Food Costs

  Food cost is the cost of all raw materials used to prepare a dish. Ideally, the cost of food should be around 30–40% of your menu price.

Overhead Costs

  Overhead costs are other expenses not related to food or labour. Contains-

Rent

  Rent comprises a major portion of your restaurant costs. However, Rent should not exceed 10% of your total revenues.

Interiors

  Depending on your restaurant concept and theme, you can decide on the interior of the place and your budget.

Interior Look

Kitchen Equipments

  Buying good quality equipments can be heavy on the pocket but they always recover their costs in the long run.

License

  Restaurant license is an important expense of your restaurant, and it cannot be ignored. The license fee varies and depends upon you restaurant model.

Marketing

  You should spend 1-2% of your revenues on marketing your restaurant. There should be a right balance between offline and online marketing. Digital marketing can do wonders for your restaurant.

How much it will Costs

  The most important thing is that how much will the expenses come. So as I said that before starting the work on the ground level, you should do your financial planning that how much will you spend. Such as the list of things I am writing below -

1. Shop rent

2. Water Management

3. Kitchen items

4. Refrigerator

5. Pots

6. Raw material (flour, rice, vegetables etc.)

7. Grocery

8. Counter

9. Table-chair

10. Decoration

11. Printing Menu

12. Advertising

13. Staff/Labour - Salary or Other Expenses

14. Interest on Loan (If borrowed)

  Salary will be spent on the staff. That is totally depends on the number of person employed and their ability. Rent is totally subject to floor area and location of the restaurant.

  So these are some things that you can give an estimate of how much you will spend on each one. Now that your planning is complete, then now comes next.

Place or Location

   Whether you agree or not, but no matter how good the food you cook, how much service you give to the customer. But if you choose the wrong location, then you can make a big mistake because once the business of the restaurant is set up then from one place Shifting to another place is not easy. So try to open in the crowded area itself and in such a situation. 
    
   If you give good service to the customer, then the customer will come to you again and again and try to provide good service from the next restaurant. They would prefer to come to you instead of others. So first choose better place and then great service is must.

How to decide the Location for the Restaurant: - Visibility and Accessibility

  Location is very important to get success in a restaurant business. While picking the area of your restaurant, recognize your rival around there and discover their prosperity. This will help to ensure that the target customer base is already present in this area.

  The restaurant ought to be in a spot where it is effectively noticeable and furthermore available. Upper floor spaces are generally not considered good because their visibility is low and customers are also get difficulty to detect that.

Legal Requirements related with restaurant business

  To run a restaurant business, you have to get a license from the government. The cost of these licenses vary depending on the size of your business.

License or Permits

You will required the connection of electricity, water and gas along with registrations. Registration required for a restaurant: -

1. Trade License from the municipal corporation.                                                                                          
2. FSSAI (Food Safety and Standards Authority of India) or Other Food Safety Licence                             
3. Business registration.                                                                                                                                  
4. Professional Tax license.                                                                                                                            
5. Liquor License (If you are serving liquor or wine).                                                                                    
6. Fire safety certificate (No Objection Certificate).                                                                                        
7. Pollution control license (No Objection Certificate).

Manpower/Staff Needed to Start a Restaurant Business

    Hiring and retaining the right talent while running a restaurant business is the biggest challenge. As a first-time restaurateur, you can work in the traditional way - set up an advertisement in the newspaper or appoint manpower through agencies. 
  

Staff or Employees

  There will be a plus point for you if you provide dress to your staff. So this makes a good impression, but make sure that it is neat and clean. If you want to manage the staff, you can also visit your nearest manpower supply organization.

There are mainly following types of staff required in a cafe or restaurant: -

Kitchen staff

   Your kitchen staff includes chefs, cooks, food preparation staff, support staff etc. This is mostly skilled labour. To cook a good food, chef is very important for your restaurant because your food is going to attract your customers. Apart from cooking, your chef also prepares your menu, keeping in mind the readily available ingredients and preparing and presenting the staff to prepare and present the dish.

Kitchen Staff must be good.

   Therefore, an experienced chef is necessary for your restaurant. The cook or chef plays a very big role in the business of food and drink. Many times restaurants are closed in their affair, so it is very important to arrange them properly. And the helper that accompanies the main cook should also be trained enough to handle everything in the cook's absence.

Service staff

  The waiters and housekeeping staff etc. are your service staff. Since they have to interact sometimes with customers, they should be good at communication and trained etiquette. The waiter should be the one whose behavior must be good.

Management staff

  Your restaurant’s manager, cashier, store manager etc. includes management staff, and they need to be educated and experienced.

  
  Before you start a restaurant business, you should train your employees not only about their jobs but also in communication and etiquette.

Menu/Price List

  If you have reached this and have not selected your right menu, then you can mess up. So where you want to open a restaurant, first go to the famous restaurant in that area and see their menu which items they keep in that. You should also keep those items together and keep two of your items in such a way that no one have in that area and the customer has to come to you. 

  Also make sure that your rate list is not expensive then the rest of the restaurant.

Designing the Menu: 

  The next part of starting a restaurant is to prepare a menu. A smartly designed menu can have a huge impact on the costs of your restaurant food. The menu should contain items that can be prepared easily and you can also use local or easily available ingredients. The menu needs to be designed in a way that gives the customer a chance to spend more.

Supplier and Vendor Management: 

  A relationship with your supplier and vendor is important for the smooth functioning of your restaurant. You have at least two-three sellers in each category. This will help in comparing the price and if any problem comes with one, then another works as a backup.

  In case of emergency situations, you should always have two to three days worth of stock in your inventory. Items should be delivered always in the morning and checked every day. Both the quality and quantity of items should be checked in your restaurant.

Marketing - To Boost your business

  Now you should work on marketing. Marketing is significant for each sort of business. This is the recipe business. The identity of your restaurant can get after 1 years, which you will have to get it in 4 year. You can do it with marketing by advertising in pamphlet, poster, newspaper, hoarding board or if you have a local radio channel, then someone. From that You can attract the customers by applying the scheme. For this, contact your nearest advertising company. 
    So you can start advertising within a week before the opening of your restaurant.

Interior Decoration

   It is your optional whether you want to do the decoration inside or not and there is no fix range in it. You can also do simple decorations which will go normally and if you talk about expensive, then it can go to millions. you should decide it yourself that how much decoration you have to keep.

Some more important things:

Maintain Quality and Customer Delights

• By making a lot of balance with Staff, let us not be too strict or too soft.                                                  
• When the volume increases in the food business, then the profit comes. So try to reach as many people as possible. Every customer is important, treat everyone well, develop a pleasant personality. An unsatisfied customer alone can do more harm than that.                                                                       
• A “Today’s Special Board” should be installed in the restaurant. Usually what you sells more, write on it.                                                                                                                                                        
• Cross-check the vendors you have to finalized for goods from their market rates every day, otherwise you can be cheated.                                                                                                                                       
• Make the habit of controlling the cost at every stage. If you do not pay attention on it, then it will run up very fast. Do not take anything from anywhere. Checkout the market and find out the best cost effective option, whether you are taking vegetables or furniture.                                                                  
• Don't compromise on quality, it takes time to build a customer but not in break. As far as possible, bring the raw material of the food itself. The quality can be maintained if the goods are correct.                                                                                                                                        
• Keep a written account of even the smallest expenses. Only then you will know how much you felt and how much you received.

Finally

   Now if you have planning, money, goods, licence, place, staff, then you can fix the date of the opening of your restaurant. Opening party whatever you have to do and for that day you can invite a chief guest definitely.

   I hope you will like this article "How to Start / Open a Restaurant Business". If you love this post, then please share it.

… Thank You…

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