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OPENING A RESTAURANT

Author :chef ssentongo Geoffrey

Opening A New Restaurant?

These common mistakes can sink your ship.

Businesses are challenging. They demand dedication, planning, strategy and most of all, capital. The restaurant business is no exception. If you opened a restaurant thinking that you can start making money right away, then you really don’t know what you are getting into.

“If you don’t know your numbers, you are not going to realize the maximum potential of the business. If you don’t know how to make drinks or step into the kitchen when needed, you may have to face a setback.”

Building a restaurant is as much about what you do, as what you don’t do. The successful managers are the ones who understand all the aspects and know how to do them right.

If you’re a first-time restaurateur, you can expect to make a number of mistakes even before you begin operations. With so many difficult decisions and complex challenges to ruminate over, the key to success is to avoid making mistakes that have been responsible for most restaurants failing.

Here are the most common mistakes to look out for as you go through the process of opening a new restaurant.

* Not Having a Business Plan

A renowned chef in Seattle has 15-20 years of experience in the restaurant industry. Over the years he had gained immense knowledge of kitchen operations, staff management, menu designing, and inventory management. One day you’ve decided to open up a restaurant, but due to lack of capital and planning, you have to shut it down in less than 12 months.

Simply put, not everyone is cut out to run a business. If everyone would be entrepreneur, who would be the employee. Some people think that being their own boss would make life easier for them, but only a few make an honest realistic evaluation.

How to fix this mistake : A business plan for any new venture is essential for success. It helps the owners set up realistic expectations and goals that eventually save the business owner from making costly mistakes in the long run. While a business plan takes time to create, it will be time well spent if it helps you set future objectives and strategies to achieve them.

* Not Paying Attention to Menu Design & Engineering

The menu is your sales brochure. A well designed menu has the potential to reinforce your brand personality. Perhaps to do so effectively, one needs to have an in-depth understanding of customers’ predictions. Having too many chances and complicated names can overwhelm customers, leaving a poor first impression on them. Another common mistake first-time restaurant owners make is to focus on what they can serve / cook easily and forget the technical aspect of Menu engineering.

How to fix this mistake : The menu should be a good mix of high cost and low-cost items.

* Not Giving Importance to Marketing

The restaurant industry is a complex field that can frustrate even the most seasoned entrepreneur. Just because you’ve opened a new restaurant that serves great food and exotic ambiance, people aren’t going to flock to flock to you.

How to fix this mistake :Instead of just opening and hoping that customers will line up to get in, promote yourself.

* Not Knowing Your Costs

If you don’t know your numbers, the chances are that you’d end up spending the entire capital in setting up the restaurant, and not saving enough working capital for later. It is better to start small and keep a healthy working capital that would support operations for at least a year.

How to fix this mistake :You must create a business plan before looking at locations or hiring employees. Create a budget based on what you can spend, estimate how much money you need for promotions and project your future profit margins.

Why Food Prices Are Rising And How Can You Control Costs?

Food Hygiene costs have been rising for a while now, blame it on advertising that just don’t give any chill. Keeping the restaurant business afloat in the market has become the biggest challenge for food companies.

Restaurant owners are now facing the worst brunt of inflation, as an upsurge in food prices directly increases the cost of raw materials.

So, how do you think you can make your business lucrative?

How can you attract customers when food cost is skyrocketing?

The answer is simple, evolution. Several ways can help your restaurant cut costs and maintain healthy profit margins.

Your strategies to cut costs will indicate that your restaurant doesn’t slip behind the competition.

Tips To Reduce Food Prices Rising

Undoubtedly, the rising food pricing can make you anxious about how to offer exceptional service at minimal costs.

Understanding the market trends and adapting to the changes can help tackle the high price and gain customers.

Monitor Metrics

Do you know the similarity between toddlers and expenses?

Leave them alone, and they’ll indeed run amok. That’s why monitoring the restaurants metrics becomes one of the critical things to cut down costs. You need to monitor the food cost and the good sale report to understand the restaurant cost breakdown daily /weekly reports on food costs are goldmine for restaurants.

Leverage Pre-ordering System

Technology has been instrumental in helping restaurant owners overcome the current challenges and prepare for the future.

Check Inventory

Limiting food expenses starts with computing food and inventory costs. Keeping an inventory track includes monitoring purchased, used, and retained ingredients. Analyzing the inventory will help you efficiently manage resources and ensure that your business runs without any hurdles.

Optimize Dine-In services

Cutting labor costs can help reduce the soaring food prices for your restaurant and customers.

Offer Value Meals

Consumers are inclined towards purchasing discounted items as compared to regular ones.

Loyalty Programs

One cannot deny the fact that customers prefer rewards and exceptional service. And a loyalty program is all you need to attract and retain customers.

Wrapping Up

If you still haven’t created a perfect strategy to reduce food prices, now is the time to prepare a plan. Not only will help you drive customers to your business, but it will also help you build a lucrative business with high retention rates and loyal customers.

So, what else are you waiting for?

Start planning for your restaurant today…