How To Start A Restaurant – 10 Steps To Success in 2020

how to start a restaurant

Want to start your restaurant? Here the business plan. With 40% of people eating out, restaurants are one of the most profitable businesses for any country anywhere in the world. If you love making food, then this is what you should try doing.

Opening a restaurant is a profitable business idea but it has a very competitive business market. There are about 4-5 eateries, restaurants, stalls in every 1km area. Do I have to explain to you your competition levels? I don’t think so. You need to be unique so stay away from the competition. Every unplanned restaurant fails within 1 year. To avoid such a waste of money, we are here to help you with different strategies and steps involved in starting a restaurant.

Also Read:- How to Start A Food Truck – Pro Tips

Starting a restaurant involves many important steps like picking up a place to set up your restaurant, choosing a location, arrangements for financing, financial management, hiring staff, buying kitchen equipment and so on. Scroll down to know the details about how to start a restaurant.

#1. Find Out Your Niche

There are various kinds of restaurants from which you need to pick your niche.

  • Fine Dining
  • Formal dining with formal dress code with high-end establishments. Customers, staff, chefs and everyone with formal etiquette and a very professional approach.
  • Family Style
  • Family style restaurants generally have shareable platters. Very informal approach among customers and staff.
  • Casual dining
  • Menu and Ambience generally based on the Target customers. They generally are moderately priced and have their own unique decor.
  • Fast Food
  • Similar to MC Donald’s or Subway, they have a fixed menu for all. Chained food system with counter service. Foods served in disposable packets.
  • Contemporary Casual
  • Serving fusion foods with Instagram worthy outcomes. Table service with trendy decors and friendly atmosphere.
  • Fast Casual
  • Some healthy fast foods with quick delivery at affordable prices. Counter service with a contemporary atmosphere.
  • Buffet System
  • You will be provided with a whole range of food to choose from. You can eat whatever you like and how much you like. This is perfect for the foodies. It includes Soups, main course, and desserts.
  • Cafe
  • Cafes are very popular if you have a small meeting with your boss or you need to catch up with your friend, cafes are the best options. Serves coffee, tea and snacks, and desserts.
  • Food Truck Restaurant
  • One of the most exciting things about moveable restaurants is, you can call them to your party! They are generally cheap and provide fast food. But that doesn’t mean food trucks are limited to this fast-food category only, they even serve gourmet food nowadays.

These are the most popular types of restaurants, now what you have to do is, you need to pick your niche and get started with the arrangements. Decorations are needed for every type of restaurant. Just the themes and items of decor changes.

#2. 10 Steps to Start a Restaurant

1. What About The Location?

To start a restaurant, location matters. A restaurant should have to be spacious so that you don’t break the privacy of any customer. Choose a spacious location which should be situated in the busy streets. If you are going for fine dining you will definitely need a spacious area with parking of your own.

Look for your competitors and find out the areas you need to work on. Also, remember about the labor cost. The labor costs differ from area to area. You can buy a place, lease it or rent it. Choose according to your convenience and capital.

The area should be in the city and easily accessible. If you can set up your restaurant at beautiful locations such as near the lake or the beach or on the 45th floor of a high-rise, you are about to earn a good amount of money.

2. What’s The Menu?

One of the toughest parts is to decide on a menu for your restaurant. Your menu will need staff and chefs according to your demand. If you choose continental or Italian, you will be needing the staff and chef who knows all about the cuisine.

Decide if you will provide customized services or not. Depending on your menu, you will have to buy the kitchen equipment. Every cooking equipment will depend on the menu you are deciding to serve. Oh yes, your decorations will also depend on the menu you have decided. Therefore, while planning, decide the menu first.

3. Let’s Talk About Funding!

While sketching out the restaurant plan, you already might have estimated an amount. Now, it’s time to talk about it. You need enough funds to keep your restaurant running including all the expenses. Going according to your set expenses, check out the real prices on the internet. Now see how much amount you are lacking.

This is where you think about a business loan. Business loans are easily available and if you are a woman you might have some extra advantages. There are various schemes to help women entrepreneurs. Apply for the schemes. While applying for the loan include all the expenses and also think about your upcoming months. A little extra will help you run the restaurant smoothly. This is how to start a restaurant with proper financial management.

4. Decide A Fancy Name

The first thing anyone will notice about your restaurant is the name. Therefore your restaurant should have a catchy, short, fancy yet elegant name, which should be easy to pronounce. The calligraphy should be simple yet elegant.

5. Decide A Logo

The logo should be simple and something that defines your cuisine. A simple logo will be easy to remember and help you while you open a website for your restaurant.

6. The Licenses

There are various licenses needed for establishing a restaurant. Food license, health license, fire license, etc. Every country has its own permit and license system. You also need to check the local state licenses too. Make sure to complete everything so that you don’t face any issue in the future. This a very important step to start a restaurant.

7. Kitchen Equipment

There are some of the common equipment required for every kitchen. Because the specific dishes require specific preparing utensils and pans. Some common equipment is an oven, refrigeration system, boiler, ice-machine, grill machine, chef knives, squeeze bottles, plates, bowls, spoons and forks, cabinets, microwave, dough makers, fry pans, dust bins, waste bins, crushers, shredders, garlic press, vegetable press and many more. Therefore, these are some of the necessary kitchen equipment. Now you will have to buy specific utensils for preparing your desired cuisine.

8. Deciding The Theme

Every restaurant should have its unique theme to distinguish you from others. If you are planning for a fine dining or casual dining restaurant or something fancy, you need to hire an interior designer. If you have plans for your restaurant, it’s fine. Also, If you think you need an expert’s advice, don’t hesitate to consult an expert. Interior designing is very important. It will create the right ambiance for your customers.

The ambiance is very important for your restaurant to run successfully. Keep the place clean and tidy. It should not smell like disinfectants, it will have a negative impact on your customers. Try to create a very pleasing ambiance with the decorations and lighting.

Light plays a very important role in creating the right ambiance. If a couple is at your restaurant for a dinner date, will they accept flashing lights? Never, they will need subtle lighting. For instance, a birthday needs a good amount of light because it’s something that is celebrated with many people, while anniversaries are very intimate and can be celebrated best when the ambiance is lustful, romantic and enticing.

Choosing the right music is very important. You can’t play rock or metal at any restaurant. The music should be soothing and calm. It should not be very loud. Live music is also a good option to keep your customers engaged while you keep on serving food making money.

9. Hire Staffs

The quantity and quality of staff matters. It is them who handles the customers. Therefore selection if the right staff is very important. There are various sections of work in a restaurant. The kitchen has different sections too. Divide staff and give them certain jobs. This will be easy for you to run the restaurant.

You also need a receptionist, a manager, a cashier, supervisors for each department. Hire people with prior experience to run the system hassle-free.

10. Marketing Your Restaurant

Marketing is very important as we all know. Use social media for advertising. Facebook, Instagram, and Twitter play a very important role in advertising. Put up banners and hoarders, distribute flyers to advertise about your restaurant.

Keep your followers engaged through various social media posts about your upcoming plans, menus or offers. Prepare a quiz and let your customers and followers decide the dish of the day. Ask your customers to write a review, because this will help increase your customer volume and brand faith.

Also, build an attractive website to help your customers learn about you. Generally include every detail about your restaurant. Address, price range, timings, etc. These are the following steps to start a restaurant.

This is a very profitable business if you follow every step carefully with proper planning. We wish you all the best!

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