Opening a new restaurant is exciting but its also time consuming and one of the toughest business to successfully launch. If you have wanted to start a restaurant for years, it might be the time to sit and have a clear planning about it. To help you create a recipe for success, we have put together several points that need planning and plotting for you to start a restaurant business.

According to some recent studies by some professor 59% of hospitality facilities fail in the period of 3 years. In the first year. is the highest level of failure.

Common Reasons of Restaurants Failure

The major reason behind any failure is lack of proper planning. The plan made by you has the ability to make or break you. These are the most common reasons for failure of the restaurant business in the beginning.

-Lack of creative and original ideas
-Wrong Location
-Insufficient Knowledge about Competition
-Low start-up Capital
-Monotonous Restaurant promotion
-Inconstant offers
-Bad Collaboration
-Poor inventory and staff management

As the major reason behind this is the lack of planning, so the most important step in starting the business is the initial planning.

How to start A Restaurant

Here’s a complete guide to start a restaurant business. This is what out of experience many successful owners of expensive exclusive restaurants to owners of cafes on the corner tell about what made their business achieve great success.

-Choose the Concept for the Restaurant:
Restaurant concepts are often framed based on the current trends in food. But a multi-cuisine restaurant offers a wider menu to its customer. It is likely to be as popular with diners in five years a it is now. But you need to keep your investment amount roughly in your mind and then decide.

-Evaluate All other Restaurant costs Involved:
Restaurant costs are a significant part of running a restaurant and need to be evaluated and planned carefully.

Interiors: You can decide on the interiors based on the concept and theme and budget.

Kitchen Equipment: Know about the various types of equipment that you may require and purchase the right ones. This will surely help in long run.

POS: The modern technology POS can organize your restaurant operations like never before. The price of POS depends on its features and functionalities.

License: Restaurant licenses are an essential expense of your restaurant, and cannot be ignored. Based on your establishment type, the license fee varies.

Marketing: There should be perfect balance between online and offline marketing.

Rent: First choose a good location, it determines the success of the restaurant. While choosing your restaurant’s location, it is a good idea to identify your competitor in that area and gauge their progress and understand their business model.It covers a significant part of the restaurant costs and is affected by the location of the restaurant.

-Keep Complete Information about Local Competitors:
Don’t underestimate your competition. Maybe you think you can do it better but there is something that the competitors will be better at that’s why they are still in the business.

-Decide The Menu:
The heart of your restaurant concept is the menu. Before being writing your menu, consider the size of your restaurant kitchen, which directly impacts the size and style of your menu. A smaller kitchen would limit the variety and hence the size of the menu.

-Hire Awesome Staff:
Hiring the right talent and retaining them is one of the challenge while running a restaurant business. You can hire through the advertisement in newspaper or through some agencies or from the active groups on facebook and linkedIn. Basically you will require Kitchen Staff, Service Staff, Management Staff.

-Get the Equipment:
Once you have the menu in hand, you will know what type of commercial equipment you will need to buy.

-Market with Social Media:
Once you have started serving, its time to start advertising. Let more and more people know about your restaurant. If you are not very sure about how to proceed, follow other restaurant you admire from different area and watch what they are doing and try to implement it in your way.

Conclusion

Restaurant Business can be tough to set up but not impossible. You will just need a proper planning if you have the determination. However with the proper planning for setting up a new business, you also need to know the critical points at which your business may get out of the track. This will help you to set up and manage your business in such a way that those situations never arrive.