1. Are you different enough to make an impact on the market?
To access your market opportunities you need to look at the area you plan to open in for clues. For instance, if you find that there are a lot of Indian restaurants in the area and you plan to open one yourself you need to re-look at where you’re going to settle. Even if you believe that your food will be better than what’s on offer you should still think carefully. The competition between restaurants is always tough, it takes time to build a reputation and going head to head with established eateries might not be the easiest way to start.
Remember that, when all is settled and done, you want your business to stand out from the crowd, you need to decide how you will make the difference.
2. Don’t get too far removed from accepted popular concepts
You need to be different, you don’t need to be so different people simply don’t ‘get’ it. The best and most popular concepts for any restaurant are based on something that has proved popular elsewhere and has been given a twist of something original. For example, a home-made burger bar is pretty much guaranteed to do more business than a raw food eatery unless your location is sound and the local market is proven. Test the waters by asking your friends about your idea, make sure that is an easy concept to grasp.
3. Don’t outprice the market
This comes down again to doing the proper research and finding out what is reasonable for the area. Always remember that your ‘bread & butter’ will be returning local patrons. They are the ones you want banging down the door at opening time.
4.Cost effective menu construction
This is a hurdle that can trip up many businesses starting out, as well as those who seem to be doing well. Create a menu that incorporates ingredients that crossover many dishes. This sounds difficult but consider this example: a chicken breast can be used in three separate dishes. The breast is used in one dish, chicken stock in another and a third with chicken gizzard stuffing.
Creating a menu that uses exotic and expensive ingredients can work if the area is inherently rich and you can find other expensive restaurants.
5. Make sure your base concept is cost effective
Like any business, we all love it when it’s booming, but it never stays like that all the time. Make sure that when you are costing you don’t rely on the best-case scenario. You should always figure that with only 50% of your predicted business you still make money and that total should be 50% more than your costs. This stage is vitally important for the success of your business, try to be flexible and remember that often what looks good in a preliminary concept will not work in practice.
6. Follow the trends for success
What is cutting edge AND making money? Fast food has been a staple of big business for years but the trend is now with healthy fast food. Look at what is happening in the trendiest areas maybe you’ll find your niche hasn’t been filled or maybe you can bring a working, trendy concept to a different area.
7. A memorable name goes a long way
If you can come up with a name that people remember you’ve won half the battle. Keep it simple and short, with a logo that isn’t hard to read or too foreign to pronounce.
8. Don’t be afraid to borrow ideas
Borrowing ideas from the public domain is something we all do, there’s no law against it. If you see something that inspires you in another restaurant, museum, bar or café, like a lighting effect, a tasty cocktail or a recipe combination, use it.
Some ideas are of course copyrighted/patented so be careful not to use them. Look for the copyrighted logo and use your common sense.
9. Make sure your concept is right for the area
Opening a burger bar on the seafront may not be the wisest move while opening a seafood and steak £100 a head eatery in a student town probably won’t work either. If you are set on one concept only think carefully about the right location for you and don’t stop until you get it. More often than not it helps to be flexible so if a great opportunity arises you can capitalise.
10. Be passionate about the project
Ask any successful restaurant owner what drove them and they will tell you they wanted to create the type of restaurant they love, serving food they love to eat. Remember the time and energy you will be putting in, for it to work well you have to have the drive, passion and ambition to make it work. A successful restaurant isn’t based on making money; it’s based on the food and the passion of the owner to MAKE it successful.
11. Do not underestimate the power of a good Social Media Strategy
Technology moves fast, new technologies are changing the way restaurateurs and their staff interact with each other and with guests, as the new Upserve's State of the Restaurant Industry Report says. Having a strong presence online is more important than ever before, for a restaurant. It is a good way to stand out from the competition, let people find you and learn more about your business, your food, your core values, your team and activities. Use restaurant analytics for real insights to improve your staff and business performance. Be present, keep your profile updated with high-quality photos and content, publish your menu. Make it easy for people to find you.
12. Consider the impact of your restaurant menu on guests
Having a well-designed and thought out menu can make a difference for your guests! The menu should reflect your vision of the business, as well as be a visual representation of your theme, tone, and values as a restaurant. Restaurateurs have to try staying ahead of changes in customers taste, knowing what is hype and what is hot. at least one dish on the menu should follow consumer's food trends.
Read the full article from Restaurant Insider here, where are some of the best industry standards for restaurant menu design!
13. Take care of your staff
Employee turnover is a constant concern for any small businesses. The turn over rate in the hospitality sector exceeded 70% for the second consecutive year in 2017. This level of turnover is detrimental to restaurant success as both front and back of house staff are the key ingredients to delivering memorable service. According to the Upserve's State of the Restaurant Industry Report released on 23rd January 2018, this challenge continues. As you can see in this graphic, the greater signal of employee turnover seems to be the position of the employee himself. Roles as cashier, runners and dishwashers have high turnover percentages while servers and kitchen staff have lower turnover rates. Bar and Management position seem to stay put with a turnover rate around 25%.
Data from Upserve also revealed that hitting the right turn time for tables can have a positive impact on both the restaurant's bottom line and tipped employees' wallet:
Source for points 11-12-13 Upserve
Download Upserve's State of the Restaurant Industry Report here
