Whether you have a passion for great food and want to share that enthusiasm with the people of your community, or you see an opening in your neighbourhood for a restaurant that caters to local tastes but don’t know how to start one, this article is for you. With so many restaurants opening their doors every day, it can be difficult knowing which ones are worth investing time and energy in.
This guide will help you identify the biggest issues facing new local restaurants today, and give you the insights and practical knowledge you need to succeed as well as start other new ventures.
Review the Current Landscape
It’s important to have an overview of the current landscape to identify where new restaurants can thrive. In this review, you’ll discover the issues and opportunities facing your local food scene. You’ll also learn how they’re affecting other new ventures, so you can have a clearer idea of what’s happening in your community and what you can do to help. First, let’s review the current landscape. In today’s food scene, many of the trends that made new restaurants successful in the past have shifted.
Restaurants today are more likely to be part of a franchise, and the ones that are not are more likely to be independent. This can make finding success more challenging. New diners are also less willing to eat at a new place and are more likely to want to try a new restaurant before deciding if it’s a good fit for their tastes.
To succeed, new restaurants need to meet diners where they are, and offer a fresh experience. To meet these challenges, you’ll need to be ready to invest time and money in your venture. You’ll also need to approach the process with a clear vision and a business model that supports it.
Be Prepared to Invest
In the past, opening a new restaurant was relatively inexpensive. You had to buy a kitchen, and some equipment and get a liquor license. A space was also relatively cheap and was often available for lease or little cost. Now, these costs are much higher. You could invest thousands of dollars in a beautiful kitchen, or a dining room that fits in well with the surrounding architecture, but you’ll still need to account for the increased cost of food, labour and requirements for a liquor license.
You may also need to factor the cost of renovations into your budget. It used to be that a new restaurant was a side hustle for someone looking for a low-risk, low-cost opportunity. Today, it’s a significant investment for someone looking for an income opportunity.
Develop a Mission and Brand
Before investing your time and money in a new venture, you’ll want to develop a mission and brand that aligns with your vision and theme. A mission can help you identify your target audience, and make sure your offerings are relevant to them. A brand helps you create a consistent experience between your restaurant and others in your area. Ideally, your mission and brand will be based on what your restaurant will offer, and what its quality will be like. It will also inform the type of customers you’re hoping to attract, and what makes your restaurant unique in your area.
Without a clear mission and brand, you may find that your offerings are inconsistent and don’t have a clear direction. When developing your brand, you should consider the following questions: What are your restaurant’s name and logo? What colours will you use? Will you have a food theme, or will the branding be more general? What should the logo and other graphic elements of your brand look like? Your mission and brand will also shape your menu. What types of dishes do you want to offer? What ingredients do you want to include? What dishes will appeal to different customers?
Hire for (and Keep) Top Talent
Determining a location for your restaurant is one part of the process, but the next step is finding a location that works for your operation and diners. Determining the best location involves making a few key decisions. First, you’ll need to decide where you want your restaurant to be. Is it ideal to be in a central location, or a more residential area? Next, you’ll need to decide where the restaurant will be. Is it best to be in an existing building or a new space? Lastly, you’ll need to decide where the building will be, and what zoning will allow you to operate there. Once you have the ideal location, it’s time to find the right space.
This can be challenging, as there are many factors contributing to a successful space, and it’s important to know where your priorities should be. First, you’ll want to make sure that the space itself is suitable for your dining room, kitchen and other needs, and is close to other tenants. Next, you’ll want to make sure that the location is ideal for your operation. This means selecting a location that is central enough to attract diners (e.g., where they live), but also in an area that is easy to access (e.g., with adequate parking).
Control Your Costs
Opening a new restaurant is not only an investment of time and money but also a risk. You’re taking a chance at the success of your venture. To mitigate this risk, you’ll want to control your costs. This means being strategic about where you spend your money and understanding how to make your best investments.
When it comes to spending your money, you should consider the following: Where will your food come from? What is the cost of your ingredients? What are the costs of running and maintaining your kitchen? What is the cost of your equipment? What is the cost of your space? What are your overheads, such as rent, electricity, water, etc.? Before opening your new restaurant, spend time researching the cost of operating your new business. This will allow you to have a better idea of costs that could vary significantly per location, and help you make informed decisions on where to open your new venture.
The Bottom Line
Opening a new restaurant can be exciting, but it also requires a significant investment in time and money. You’ll also need to be strategic about where you spend your money, and control the costs associated with opening your new business.
