STEPSTOSUCCESSFORRURALENTREPRENEURS:

STARTINGASMALLRESTAURANT

PREPAREDFOR
U.S.DEPARTMENTOFCOMMERCEECONOMICDEVELOPMENTADMINISTRATION

MARCH2008

UniversityofAlaskaCenterforEconomicDevelopment
3211ProvidenceDrive
Anchorage,AK99508
9077865444
http://ced.uaa.alaska.edu/

OthertitlesintheStepstoSuccessforRuralEntrepreneursseries

WritingYourSmallBusinessPlan
StartingaBedandBreakfast
StartinganEcotourismBusinessinAlaska
StartingaFishProcessingPlant
StartingaRuralAlaskaLodge
StartingaSmallRentalBusiness
StartingaSmallEngineRepairShop

ACKNOWLEDGEMENTS
ThishandbookwasdesignedandauthoredbyChristiBell,LindaKetchum,andJohnEric
Humphries.WeappreciateandacknowledgegraphicdesignassistancebyClemencia
MerrilloftheInstituteofEconomicandSocialResearch.OurgratitudealsotoAnn
MarbourgandWillFischer,whohelpededitandpreparethereviewdrafts.

Weverymuchappreciatethefinancialsupportofoursponsor,theU.S.Departmentof
CommerceEconomicDevelopmentAdministration,whomadethisprojectpossible.The
statements,findings,conclusions,andrecommendationsarethoseoftheauthorsand
donotnecessarilyreflecttheviewsoftheEconomicDevelopmentAdministration.

TABLEOFCONTENTS

INTRODUCTION........................................................................................................................ 1

DEFINITIONSANDBUSINESSPLANBASICS ........................................................................ 1
WhattypesofrestaurantsarefoundinAlaska? .................................................................. 2
Whatdorestaurantsprovide?.............................................................................................. 3
WhatisabusinessplanandwhydoIneedoneformyrestaurant?.................................... 3

STEP1CONDUCTINGANASSESSMENTANDSETTINGGOALS...................................... 5
Whatarethebenefitsofrunningarestaurant?................................................................... 5
Whydoyouwanttorunarestaurant? ................................................................................ 6
Whataresomeofthedrawbacksofrunningarestaurant?................................................. 5
SmallBusinessSuccessfactors ............................................................................................. 7

STEP2DEVELOPINGYOURRESTAURANTCONCEPT..................................................... 8
Developingyouruniquerestaurantconcept ........................................................................ 8
Restaurantstylechoices ....................................................................................................... 8
Location................................................................................................................................. 8
Facilities ................................................................................................................................ 9
Guestexpectations ............................................................................................................... 10

STEP3UNDERSTANDINGREGULATORYREQUIREMENTS ........................................... 12
Businesslicense .................................................................................................................... 12
Foodservicepermit .............................................................................................................. 13
Firedepartmentpermit ........................................................................................................ 14
Health&safetystandards .................................................................................................... 14
AlaskaAdministrativeCode18AAC30.400....................................................................... 16
Insurancerequirementsandconsiderations ........................................................................ 16
Zoningrequirements............................................................................................................. 17
Reportingconsiderations...................................................................................................... 17
Additionalneeds ................................................................................................................... 17

STEP4CONDUCTINGMARKETASSESSMENTANDRESEARCH .................................... 18
Whoareyourpotentialcustomers? ..................................................................................... 18
Pricingandwillingnesstospend........................................................................................... 19
Competitiveconsiderations .................................................................................................. 20
Restaurantdemand .............................................................................................................. 20
Whoisyourtargetmarket?.................................................................................................. 20

STEP5DEVELOPINGYOURMARKETINGANDCUSTOMERSERVICEPLAN................ 23
Advertising ............................................................................................................................ 23
Publicrelationsandpromotions........................................................................................... 24
Topnotchservice ................................................................................................................. 24

StartingaSmallRestaurant

STEP6DEVELOPINGYOURORGANIZATIONALPLAN.................................................... 26
Ownershipconsiderations(legalstructure) ......................................................................... 26
Manager(owner) .................................................................................................................. 26
Buildingyourrestaurantteam.............................................................................................. 27
Ensuringtherightskillsandaptitude ................................................................................... 28
Hiringprofessionalassistance............................................................................................... 29
CriticalQuestions .................................................................................................................. 29

STEP7DEVELOPINGYOURFINANCIALPLAN ................................................................. 31
Startupcosts ........................................................................................................................ 31
Estimatingrevenues.............................................................................................................. 32
Estimatingbreakevenpoint................................................................................................. 33
Estimatingcosts .................................................................................................................... 34
Costofgoodssold................................................................................................................. 34
Fixedcosts............................................................................................................................. 34
Variablecosts........................................................................................................................ 34
Financialstatements ............................................................................................................. 35

CONCLUSION ............................................................................................................................. 37

APPENDICES
LocationEvaluationWorksheet........................................................................................... 40
Restaurantchecklist............................................................................................................. 42
Estimatedstartupcostsworksheet .................................................................................... 43
Revenueestimateworksheet .............................................................................................. 44
Estimatedfixedcostsworksheet ......................................................................................... 45
Variablecostsworksheet..................................................................................................... 46
Profitandlossstatement..................................................................................................... 47
Balancesheet....................................................................................................................... 48
Cashflowstatement ............................................................................................................ 49
FoodServiceSafetyConsiderations..................................................................................... 50
Customercommentcard ..................................................................................................... 52
AdditionalResources ........................................................................................................... 53

StartingaSmallRestaurant

INTRODUCTION

StartingaSmallRestaurantisapracticalandeasytouseguidetoopeningarestaurant
businessinruralAlaska.OneofaseriesofhandbooksdevelopedtostartnewAlaska
entrepreneursontheroadtosuccess,thishandbooktakesyoustepbystepthroughthe
processofassessingthefeasibilityofyourbusinessideaanddevelopingabusinessplan.
WhilethishandbookshouldbeusefultoanyonestartingarestaurantinAlaska,it
focusesspecificallyondevelopingaplanforarestaurantinacommunityofftheroad
system.

Thishandbooktellsyouwhattoconsiderintheprocessofsettingupyourrestaurant
andhowtooutlineyourbusinessplan.Foramoredetailedexplanationofbusiness
planning,seeStepstoSuccessforRuralEntrepreneurs:WritingYourSmallBusinessPlan.
Followingthestepslaidoutinthishandbookwillhelpyoudecidewhetherornot
openingarestaurantisrightforyou.

Ifyoudecidetoproceedwithyourbusinessidea,thishandbookwillassistyouin
definingyourbusinessgoalsanddevelopingyourstrategyforsuccess.Itcovers:

Howtodetermineifthisistherightbusinessforyou
Whatyourstartupandsuppliesneedswillbe
Howtoassesslocalmarkets,estimatedemand,andattractguests
Whatlicensesandpermitsyouwillneed
Howtoprojectannualrevenuesandexpenses.

DEFINITIONSANDBUSINESSPLANBASICS

Whetheryouarereadingthishandbooktolearnmoreaboutrestaurantoperationsand
howtowriteabusinessplan,orsimplytolearnmoreaboutthistypeofbusiness,you
shouldstartbyconsideringthedifferenttypesofrestaurants.Intheend,itwillbeyour
ownpersonalityandvisionofyourfuturethatdeterminewhetheryoupursueabakery,
acoffeecart,afinediningrestaurant,orsomeothertypeorcombinationoffood
servicebusiness.

StartingaSmallRestaurant

WhattypesofrestaurantsarefoundinAlaska?
YouwillfindtwopredominanttypesofrestaurantsinruralAlaska,andathirdthatis
lesscommon.

Afastfoodrestaurantisaneaterywherepatronscanorderandreceivefood
quickly.Thefoodisoftentakentogo,withafewseatsprovidedforeating,but
typicallythereisnotableservice.Fastfoodrestaurantscanbeafranchise(such
asSubway)oranindependentlydevelopedbusinessidea.Thecuisineatafast
foodrestaurantoftenconsistsofstandardAmericanfare,suchassandwiches,
hamburgers,chips,Frenchfries,friedentrees(chicken,fish),and/orpizza,etc.
Thepriceperplateatafastfoodrestaurantaveragesbetween$4and$7.

Asmallrestaurantisaneaterythatprovidespatronswithtableservice.Small
restaurantbusinessesoftenhaveacasual,familystyleatmosphere,anda
limitedmenu.Thefacilityisoftensmall,withlimitedseating.Thenumberand
typeofsmallrestaurants,varygreatlyfromcommunitytocommunity,asdothe
menuandnumberofcustomers.Somespecializeinacertaincuisine,suchas:
o
o
o
o
o

Americansimilartofastfoodmenu,butwithtableservice
Alaskanfeaturinglocalfood,suchashalibut,salmonorreindeer
Asianregionalfood,suchasChinese,IndianorThai
Europeanregionalfood,suchasGerman,ItalianorGreek
Mexican

Smallrestaurantsmayalsohavelocalandseasonalmenusforpatronsfrom
outsidethearea.Thistypeofrestauranthasthestrongestpotentialforsuccess
inruralareas,particularlyinairporthubswithestablishedtraffic.Theaverage
pricepermealatasmallrestaurantis$10to$20aplate,dependingonwhat
timeofdaythefoodisserved.

ThefinediningestablishmentislesscommontoruralAlaska,andusuallyfound
inanurbanorevenmetropolitansetting.Thistypeofrestaurantprovidesa
formaldiningexperienceatthepremiumendofthemarket,andisthemost
expensiveoption.Theaveragemealcosts$20to$30aplateormore,depending
onspecialty.VeryfewruralAlaskacommunitiescansupportafinedining
establishment,becauselocalpatronswillonlyeatthereonspecialoccasions.

StartingaSmallRestaurant

Whatdorestaurantsprovide?
Lesstimetocookandmoredisposableincomehavemadediningoutafrequent
experienceformanyAmericans.Theproliferationoffastfoodandcarryout
establishmentshasmadethepurchaseofpreparedfoodmoreviabletoo.

Thereareseveralimportantfactorstoconsiderifyouaretobesuccessfulinthis
industry:

FoodAsmentionedpreviously,arestaurantisinthebusinessofsellingfood.
Youneedtoprovideyourpatronswithtasty,properlyprepared,andaffordable
foodaproductyoucangooutandsellwithprideandconfidence.

HospitalityAstherestauranthost,itwillbeyourresponsibilitytomakesure
yourcustomershaveapositiveexperience.Tobuildcustomerloyalty,youwill
needtowelcomeyourguestswarmly,treatthemcourteously,andmakesure
theyreceiveexcellentservice.

Safe,familyfriendlyestablishmentItisimportanttoprovideaneaterywhere
peoplefeelsafeandfindtheatmospherefriendly.

CleanlinessYoumustensureyourrestaurantispresentable,andmaintaina
rigorousstandardofcleanlinessandsanitation.Therearemanyrules,
regulations,andguidelinesthatgovernarestaurant.Alargenumberofthese
relatetopropersanitation.Patronswillnottrustyourfoodsafetyiftheyhave
theimpressionyourrestaurantisunclean.

Insomecases,suchastheAlaskanstylerestaurant,theownerneedsto
provideanauthenticandoneofakinddiningexperience.Ifyourrestaurant
providesagoodexperience,wordofmouthwillbeyourbestadvertising.

WhatisabusinessplanandwhydoIneedoneformyrestaurant?
Abusinessplanisatoolforthinkingthroughthemanyaspectsofstartingupand
runningarestaurant.Writingyourbusinessplanhelpsyoudefinewhyyouarestartinga
restaurantandkeepsyoufocusedasyougointooperation.Agoodbusinessplan:

Takesyoumethodicallythroughvariouselementsofthebusiness
Helpsyoudecideifarestaurantisworthyourtimeandfinancialinvestment
Improvesyourprobabilityofsuccess
Helpsyouthinkthroughalternativesandstrategiesforachievingsuccess.

StartingaSmallRestaurant

VeryfewruralAlaskacommunitiescansupportarestaurant,becausethelocal
populationissmall.Arestaurantmaynotbeafinanciallyviablebusinessinsomeplaces.

Thishandbookwalksyouthroughthestepsofpreparingtowriteyourbusinessplan:

1. Conductinganassessment
2. Developingyourrestaurantconcept
3. Understandingregulatoryrequirements
4. Assessingyourmarketandconductingresearch
5. Developingyourmarketingandcustomerserviceplan
6. Developingyourorganizationalplan
7. Developingyourfinancialplan.

StartingaSmallRestaurant

STEP1CONDUCTINGYOURPERSONALASSESSMENT

Runningarestaurantisaboutsellingfood.Thismightseemtobestatingtheobvious,
butitiseasytolosesightofthisobjectiveonceyouarecaughtupinthedaytoday
operations.Itcanbeverychallengingtoown,operate,andmanagearestaurant.Ifyou
wanttobesuccessfulintherestaurantbusinessinruralAlaska,youshouldoffera
simple,limitedmenu.Astheowner,youwillbeinchargeofcooking,cleaning,and
managingemployees,ifyoudohirestaff.Atfirst,youmaynotbeabletoaffordtohire
anyemployees.Astheowner,youwillalsoberesponsibleforkeepingthefinancial
records,payingpayrollandotherbills,orderingsupplies,managingadvertising,and
filingtaxes.Youcanhireoutsidehelptodothesethings,butthiswillincreaseyour
expenses,reducingyourprofits.

Inadditiontoallthesetasks,youneedtofindtimetosellyourfoodthatis,toattracta
coregroupofloyalcustomerswhosepatronagewillmakeyourbusinessviable.
Developingamarketingplanisanimportantcomponentofyourbusinessthatis
addressedlaterinthishandbook.

Whatarethebenefitsofrunningarestaurant?
Somebenefitsofbeingarestaurantownerinclude:

Startingsomethingfromnothing
Earningadditionalincomeorcreatingemploymentforyourself
Incorporatingapotentiallyinterestingbusinessintoyourlife
Providingahospitableplaceforpeopletogettogetherinyourcommunity
Meetingnewpeoplefromaroundtheworld.

Inshort,owningarestaurantputsyouinchargeofyourowncareerandfinancialfuture.
Yougettomakeyourownchoicesandenjoyyourownsuccess.

Whataresomedisadvantagestorunningarestaurant?
Majorchallengesintherestaurantbusinessarethelonghoursandtheunpredictable
income.Evenifyourrestaurantisopenforonlyfourhoursintheevening,youstillneed
toputinpreparationandcleaningtime,andtakecareofthemanagerialand
administrativetasks.

Itisimportanttoknowhowmuchmoneyyouneedtomake,soyoucancompareyour
financialprojectionstothisfinancialgoal.Openingarestaurantmightnotenableyouto
hityourtarget.ManyrestaurantsinAlaskaexperienceaseasonalbusinessflow,

StartingaSmallRestaurant

dependingonthenumberofsummervisitorstothearea.Restaurantownersoftenwork
asecondjobinadditiontomanagingtherestaurantduringthewintermonths.Not
everyrestaurantinruralAlaskawillhavethebenefitofincreasedsummertraffic.

Rememberthatsuccessfulrestaurantsdonotjustmakefoodtheysellit.Ifyouhave
nointerestinsalesordonotenjoyactuallysellingwhatyoumake,thisbusinessmight
notberightforyou.

Whydoyouwanttostartarestaurant?
Youneedtoreallyunderstandwhyyouwanttogointotherestaurantbusiness.
Answeringthefollowingquestionsshouldhelpyoumakeaninformeddecision.Youmay
discoveritdemandsmoreworkthanyouarewillingtotakeonorinvolvestoomuch
financialrisk.Ifyoudogoahead,havingyourreasonswrittendowncanalsoremindyou
onaparticularlyharddaywhyyouopenedyourrestaurant.

1. Whydoyouwanttostartarestaurant?
_____________________________________________________________________
_____________________________________________________________________
2. Howmanyhoursperweekareyouwillingtoworktorunyourrestaurant?_____

3. Areyouwillingtooperateyearround?

Yes___No___

4. Whatyearlyincomedoyouneedfromyourrestaurant?___________________
5. Areyouwillingtobleachfloorsandcleangreasetraps?Yes___No___

6. Doyouplanonworkinganotherfullorparttimejobwhilerunningyour
restaurant?

Yes___No___

__________________________________________________________________

Goodresponsestothequestionwhyyouwanttorunarestaurantinclude:

Ienjoycooking
Ilikeinteractingwithandentertainingpeople
Iwanttobeselfemployed
Ihaveexperienceofworkinginormanagingarestaurant.

StartingaSmallRestaurant

Consideringtheamountoftimeyoumustdevotetorunningarestaurant,itwouldnot
berealistictoopenonetosupplementyourincomeorsubsistencelifestyle.Asuccessful
restaurantcanproduceareasonableincome,buttodosorequiresyourfulltime
commitment.

SmallBusinessSuccessFactors

SmallbusinessownersthroughoutruralAlaskahaveidentifiedthefollowingsmall
businesssuccessfactors 1 :

Dowhatyoulove.

Dowhatyouknow.

Doseekfamilysupportitisessential.

Dounderstandthatcommunityreadinessandsupportofthebusinessis
importantandforsomebusinessesessential.

Doseekouttrainingandtechnicalassistanceitisoftennecessary.

Dostartsmall,buildingupyourbusinesssuccessgradually.

Dontunderestimatetherolehardworkplaysinsuccess.

Thinkaboutwhetheryoucanmeetthesecriteriaforbeingsuccessfulinbusinessinrural
Alaska.Ifsomepiecesaremissing,suchascommunitysupportortrainingandtechnical
assistance,areyouwillingtobuildupsupportorseekoutthetrainingyouneed?What
youdoordontdobeforeyouopenyourdoorsforbusinesswilllargelydetermineyour
longtermsuccess.

ViableBusinessEnterprisesforRuralAlaska,UniversityofAlaskaAnchorage,InstituteofSocialand
EconomicResearch,2008

StartingaSmallRestaurant

STEP2DEVELOPINGYOURRESTAURANTCONCEPT

Inthisstep,youwilldevelopanddescribeyouruniquerestaurantconcept.Yourconcept
shouldbecompatiblewithyourlocalcommunity,anddistinguishwhatyouofferfrom
whatexistingcompetitorsoffer.

Beforeyoudecidehowyouwanttosellfoodthroughyourrestaurant,givecareful
considerationtotheavailablechoicesandtothecharacteristicsofyourcommunity.Key
aspectsofyourrestaurantbusinessincludeavailableorproposedlocation,facilities,
availablegoodsandservices,targetmarket,andguestexpectations.

RestaurantStyleChoices
Thereareseveraldifferentstylesofrestaurantstochoosefrom,including:

CasualDiningThistypicalsmallrestaurantcaterstoallkindsofcustomers,who
gothereforthestandardmenuandtherelaxedatmosphere.Thisconceptcan
incorporatedifferentethnicspecialties.

CafArestaurantwithouttableservicewherecustomersorderfooditems
fromacounterandservethemselves.

PizzeriaTherearetwobasicchoiceswithapizzeria.Thefirstisafullblown
restaurantthatservespizzaandotherfooditems.Theotheristospecializein
pizzasfortakeoutonly.

CoffeehouseTheseeateriesofferacozyatmosphereandservelimitedfood
itemsthatareusuallysweet,ratherthansavory.Ifyouareamorningperson,
youmightwanttoprovideawarmstopwherecustomerscanpickupcoffeeand
bakeryitems.

Thesearejustsomeofthechoicesforyourrestaurantconcept.Exploreothers,andstick
withtheonethatseemstofityoubest.
Location
Itiscriticaltoevaluateyourproposedlocationanditsabilitytosupportaprofitable
restaurant.Youcanalwaystailorthescaleandserviceofyourrestauranttocommunity
demand.However,yourcommunitymightnothaveenoughdemandtomakeyour
businessprofitableortheremaynotberoomforanotherrestaurant.Ifyourcommunity
isverysmallandalreadyhassometypeofrestaurantorfoodservice,itmightbehardto
beprofitableunlessyouhaveasignificantcompetitiveedgeoveryourcompetitors.

StartingaSmallRestaurant

Doyourresearch(eatinotherarearestaurants)andaskcommunitymemberswhat
theylikeanddislikeaboutwhatisalreadyavailable.Usethelocationevaluation
worksheetonpage40togetabetterunderstandingofwhatyourcommunityhasto
offer,andthecompetitionthatalreadyexists.

Thesecondaspectofevaluatinglocationisdecidingwheretolocateyourrestaurant.
Youwanttoputyourbusinessinalocationwithheavyfootorcartraffic,aroundareas
wherepeoplework,nearlargegatheringareas,orwithinwalkingdistancesofschools,
sportsfacilities,orotherplaceswherecommunitymemberscongregate.Thebest
locationforyouwilldependonthescopeofyourrestaurantandthelayoutofyour
community.Youwanttobevisibleandeasilyaccessibletopeopledoingotherthingsin
yourcommunity.Ifindoubt,askaroundthecommunitytolearnwhereothersthinkthe
mostconvenientlocationwouldbe.

Ifyouaretargetingvisitorstoyourtownmoreheavilythanresidents,youmightwantto
positionyourbusinessclosertotheairportorthemajorhotels/roadhouses/B&Bsin
town.Yourlargestpercentageofcustomerswillcomefromwithinaonemileradius.
Thismightconstituteyourentirecommunity,oryoumayhavetostopandstudythe
trafficofyourcommunitymoreclosely.Thereisnoeasyanswertolocation,butthe
choiceisimportant,andneedsthoughtfulconsideration.

Facilities
Facilityneedswillvarydependingonthetypeofrestaurantthatyouplantoopen.In
smallruralAlaskancommunities,themostsuccessfulrestaurantislikelytobeacaf.
Thistypeofrestaurantoftenhasanordercounterwithawallmountedmenu,where
peopleorderfoodandwaittopickuptheirorders.Therestaurantmightalsoprovide
tablesorboothsinside,socustomerscansitandeattheirfoodintherestaurant.Or,it
mightbeatogorestaurantthatonlyprovidesfoodtotake,buthaspicnictablesoutside
thebuilding.

Almostanyspacecanbeturnedintoarestaurantwithenoughmoneyforremodeling.
Asyoulooktobuild,buy,orleaseyourrestaurant,youwillwanttofindthefacilitybest
suitedtoyourneeds.Dependingonavailabilityofspaceandyourrestaurantvision,the
spaceyouoccupycouldrangefromasmall,oneroomkitchentoamorestandard
facilitywithalargekitchen,storagespace,anddiningarea.Itisimportanttoknowthat
moretablesdonotnecessarilymeanmoreprofit.Infact,somerestaurantowners
reportjusttheopposite.

Nomatterwhatyoudecide,yourfacilityshouldbewellventilated,withtheabilityto
easilyaddwaterhookupsandexpandtheventilationsystemsanddrainageofthe
building.Thebuildingsdesignshouldofferalargestoragecabinetorcloset,alongwith
plentyoffreezerspace.Thebuildingshouldbewelllitandmeetallbuildingcodesfor

StartingaSmallRestaurant

yourarea.Cooking,storage,anddiningspaceseparationcanbeusefulandalsogive
yourrestaurantamoreprofessionalappearance.Youshouldexaminethewater,
electrical,andwastecapacitiesofthebuilding,tomakesuretheycansupportabusy
restaurant.Awordofcautionconvertingaverylargeolderspaceorbuildingintoa
restaurantmaybechallenging,duetothecosttoheatandmaintainthebuilding.A
smallerspacewilllikelyserveyoubetter.

Secondly,thebuildingmayrequireremodelingtobeaccessibleandsafe.Forexample,
tomeetcode,thebuildingmightneedmorethanoneexit.Sharpcorners,lowceilings,
andblockedhallwaysshouldbeeliminated.Notonlydotheserequirementsmeet
health,safety,andbuildingcodes,theywillalsolowerthepotentialforinjuredworkers
andcustomers,whichwillloweryourliability.

Dependingonyourstyleofrestaurant,pricing,andthesizeofyourcommunity,youmay
wishtospendsomemoneydevelopingathemeorcolorschemeforyourrestaurant.To
furtherestablishyourbusinessidentity,couldincorporateotherelementssuchasa
sloganoracharacterthatfeaturesonyourbuildingorproductwrappings.Most
important,however,istoensurethatyourspaceisclean,fresh,andtheappropriate
sizeforthetypeoffoodserviceyouprovide.

GuestExpectations
Thefollowingisabriefoverviewofkeyfactorsandquestionstoconsiderasyoustartup
yourrestaurant.Priortoopening,youneedtodecidethefollowing:

OperatinghoursYourrestaurantsshouldbeopenforallscheduledhours,and
thescheduleshouldbeclearlydisplayed.

SmokingrestrictionsMostrestaurantsinAlaskahavegonenonsmoking.Ifyou
wanttoallowsmoking,makesureyouarecomplyingwithlocalhealthcodes.

UseofalcoholicbeveragesIfalcoholwillbeserved,youmustobtainthe
properpermitsfromtheAlcoholBeverageControlBoard.ManyruralAlaska
villagesbanthesaleofalcoholicbeverages,sothiswillnotbeaconsiderationfor
somerestaurantowners.

PaymentsacceptedWillyouacceptcreditcardsandchecksaspayment?Will
youacceptoutofstatechecks?

HospitalityHowareyougoingtocreateahospitableenvironment?Thisisthe
keyingredienttoasuccessfulguestbusiness.

StartingaSmallRestaurant

10

Nowthatyouknowmoreaboutopeningarestaurant,youshouldbeableto
answerthequestionsbelow.Thiswillhelpyoudetermineyouroverallreadinessfor
owningandoperatingarestaurant.

Areyoucomfortablewithallpeople?

Yes___No___
________________________________________________________________________
________________________________________________________________________
Areyouthetypeofpersonwhokeepscalminbadsituations?

Yes___No___

________________________________________________________________________
________________________________________________________________________
Doyoutakecriticismwell?

Yes___No___

________________________________________________________________________
________________________________________________________________________
Theanswerstoyourlocationevaluationworksheetwillhelpyoudecidewhichtypeof
restaurantyoushouldopen,whatotherservicesyoushouldoffer,andhowmany
customersyoumightexpecteveryday.Usetheseanswersasastartingpointtorefine
yourrestaurantconcept.

Inadditiontothelocationquestionsabove,youshouldthinkaboutyourown
personality.Areyouanearlyriserordoyouprefertostayuplateandsleepin?Ifyou
likegettingupearlyyoumightprefertoopenabakeryorcoffeecart,ratherthana
smalldinnerrestaurant.

Anotherimportantquestiontoconsideriswhetheryouarepursuingarestaurant
becauseyoulikefoodorbecauseyoulikepeople.Ifyouarestartingarestaurant
becauseyoulikepeople,chooseatypeofrestaurantthatprovidesopportunitiesfor
interactionwithothers.Ifyoureallydontcareforalotofpersonalinteraction,consider
startingabakeryorcateringservicethatdemandsmoreoperationalfocus.

StartingaSmallRestaurant

11

STEP3UNDERSTANDINGREGULATORY
REQUIREMENTS

Thenextimportantquestiontoaddressis,Whatlegalorregulatory
responsibilitiesdoIneedtocomplywith?Becauserestaurantshavepotentialhealth
andsafetyimpacts,theytypicallyaresubjecttolocal,stateandfederalrequirements.It
isuptoyoutofindoutwhatspecificrequirementsapplytoyoursituation,andto
complywiththem.Thisstepintroducesyoutotheregulatoryrequirementsforstarting
arestaurant.

Therearecertainprecautionsyoushouldtaketoguaranteecustomersatisfactionand
limitliabilityissues.Itishighlyrecommendedthatyouseekprofessionalsupport
(attorney,accountant,architect,engineer,etc.)priortoopeningyourrestaurant.
Investingextramoneyattheoutsetofyourrestaurantoperationcansaveyoumuch
moretimeandmoneyinthefuture.Ifyoudontmeetregulations,youcouldbesubject
personallytocivilandevencriminalliability,andmightreceivenegativepublicitythat
couldputyououtofbusiness.

Thegovernmentstrictlyregulatesthefoodserviceindustry.Itissubjecttolocal,state,
andfederalcontrol.Healthandsafetystandardsareofparamountimportance.Your
restaurantwillneedtocomplywithhealthandsafetyregulationsand/orpermits,
including:

Licensesandpermits
Healthandsafetystandards
AlaskaAdministrativeCode18AAC30.400
Insurancerequirementsandconsiderations
Reportingconsiderations

BusinessLicense
AstandardStateofAlaskabusinesslicenseisrequiredforarestaurant.Thiscosts$100a
year,andcanbeacquiredeasilyfromtheDepartmentofCommerce,Communityand
EconomicDevelopment(DCCED).ApplicationsarealsoavailableattheDCCEDwebsite
(http://www.commerce.state.ak.us/occ/apps/BLEC_Start.cfm).Youwillneedtoprovide
yournameandaddress,thenameofthebusiness,andtheappropriateNAICSbusiness
code.Theentirelistofbusinesscodesispostedonthewebsite,alongwithguidancefor
choosingyourcode.Youcanalsocall9072698173(Anchorage)or9074652550
(Juneau)formoreinformation.

StartingaSmallRestaurant

12

FoodServicePermit
Todistributefood,youwillneedafoodestablishmentpermitfromthestatehealth
department.Onewayinwhichthefoodserviceindustrydiffersfromothersisthat
restaurantsareroutinelyinspectedbyfederal,state,andlocalinspectors.Remember,
aninspectoristheretoensurethatyourbusinessisofferingasafeandcleanplacefor
peopletoeatandsocialize.Lookonthisasanopportunitytoshowhowhardyoustrive
tomeetandexceedthesestandards.

Healthinspectorswillwanttomakesureallareasofyouroperationsmeetlegal
standards.Ahealthinspectorwillbeconcernedwithfoodstorage,foodpreparation,
fooddisplay,employeehealthandcleanliness,thedesignandinstallationofequipment,
thecleaningandstorageofequipmentandutensils,sanitaryfacilitiesandthe
constructionandmaintenanceoftherestaurantfacility.Thehealthdepartmentcan
provideyouwithspecificguidelines.Typicalareasofconsiderationandattentionare:

Fromthefrontdoortothekitchen,arestaurantmustbeuptoparregarding
sanitationandregulations.Thismeansyourkitchenanddiningareasshouldhave
aroutineofcleaning,aswellasupkeepwhencleaningcannotbedone.The
constructionandshapeofthebuildingareaconcern.Kitchenfloorshavealotof
trafficandspills.Routinelycleaningtheseareasandkeepingthingsingood
shapewillpreventinspectorsfromcitingyouforviolations,andwillmake
customershappy.

Asidefromtheactualbuilding,arestaurateurmustensurethathis/her
employeeswearappropriateuniform,includinghairnetsandgloves.Glovesmust
bewornwheneveranemployeeisincontactwithfood.Employeesmustalsobe
vigilantinwashingtheirhands.

Specificfoodservicerequirementsincludetheuseofeitheranautomatic
dishwasher,inwhichtheplatetemperaturereaches160Fduringafillcycle,or
handwashinginathreecompartmentsinkusingapprovedchemicalsanitizers
andairdrying.

Safefoodhandlingpracticesmustbeobserved,andallfoodmustbeobtained
fromanapprovedsource.Nofoodorlocallyharvestedproductsthathavebeen
cannedorfrozenbylocalsortherestaurantownershouldbeusedinfood
preparation.Arestaurantshouldonlyservefoodwhichismanufactured,
produced,prepared,packaged,stored,transported,andservedaccordingtothe
stringentEPAandFDAregulations,soastobepure,freefromcontamination,
adulteration,andspoilage.

StartingaSmallRestaurant

13

FireDepartmentPermit
Yourlocalfiredepartmentand/orthestatefiredepartmentmayrequireyoutoobtaina
permitifyourbusinessisopentothepublic.Inmostcases,youwillneedtosecurea
permitpriortoopeningforbusinesses.Thefiredepartmentmayalsoscheduleperiodic
inspectionstoensurethatyourfacilitycontinuestomeetregulations.

Health&SafetyStandards
Itisimportanttotakegeneralhealthandsafetystandardsintoconsideration.A
preliminarysiteinvestigationconductedbythehealthinspector(statefiremarshal)
couldberequested,andfollowedbyafinalinspectionandlicenseapplication.An
approvedwatersupplyandsewagedisposalsystemisrequired.Anyexistingseptictank
anddrainfieldmustbeadequatelysized.Someotherexamplesofhealthstandardsare:
facilitycleanliness,includingfloors,walls,andceilings;nosleepingaccommodationsin
areaswherefoodisstored,prepared,orserved;andvariousotherhealthrelated
regulations.

Water/Sewage/SolidWaste
Watermustbepotableandfromasourceapprovedbythehealthinspector.The
greatestconcernisthatthewatersupplymeetsthepuritystandardsforbacteria
andnitrates.Theremustbeanadequateandpotablerunningwatersupply,withhot
andcoldrunningwatertoallsinks.Theremustbeproperlydesignedandapproved
sewageandsolidwastedisposal.Theremustbeeasycleanupandcovered
containersfortrashdisposallocatedinsideandoutside.Theremustbeanadequate
numberofcontainersprovidedtoholdgarbageandrefusebetweenpickupservices.

Plumbing
Thereshouldbenocrossconnectionsbetweenpotableandnonpotablewater
supplies.Anonpotablewatersystemmayonlybeusedforfireprotectionorair
conditioning.Pipescarryingnonpotablewatermustbeclearlylabeled.Thepotable
watersystemmusthavedevicestopreventbackflowandbacksiphonageat
equipment/fixtures,unlessapermanentairgapatleasttwicethediameterofthe
watersupplyinletseparatesthewatersupplyinletandtheequipment/fixture's
floodrim.Greasetrapsmustbeaccessibleforcleaning.Dishwashingmachines,
refrigerators,steamkettles,potatopeelers,andicestoragebinsmaynotbe
connecteddirectlytothesewagesystem.Whenadishwashingmachineislocated
nexttoafloordrain,thewasteoutletfromthemachinemaybeconnecteddirectly
ontheinletsideofthefloordraintrap.Equipmentdrainlinescannotdischarge
wastewaterdirectlyontoafloor.

StartingaSmallRestaurant

14

Sinks
Theremustbeathreecompartmentsinkwithattached,selfdrainingdrainboards
andhotandcoldwaterunderpressuretoallthreesinks.Theremustbeahand
washingsinkinthefoodpreparationareatobeusedexclusivelyforhandwashing.
Theremustbeautilitysinklocatedoutsideoftheimmediatefoodpreparationarea.
Afoodpreparationsinkisrequirediftheproposedmenuormethodoffood
preparationrequiresroutinesoaking,rinsing,culling,orcleaningofrawingredients
orproduce.Anautomaticdishwashingmachineisnotrequiredbutmaybeusedas
longasitisacommercialstyledishwasher,whichautomaticallycleansandsanitizes
equipmentandutensils.

ToiletFacilities
Ifseatingforpatronsisprovided,thenseparatetoiletfacilitiesareneededforeach
gender.Employeesandpatronsmayusethesametoiletfacilities,ifpatronscando
sowithoutenteringthefoodpreparation,foodstorage,dishwashing,orutensil
storageareas.Restroomsmustbemechanicallyventedtotheoutside.Restroom
doorsmustbeinstalledwithaselfclosingdevice.

Lighting
Theremustbeatleast50footcandlesoflightmeasured30inchesfromtheflooron
foodpreparationsurfacesandequipmentwashingorutensilwashingworkareas.
Theremustbeatleast20footcandlesoflight,measured30inchesfromtheflooror
otherareasindiningareasonlyduringcleaningoperations.Theremustbe
protectiveshieldingforlightinglocatedoverorwithinareasusedforfood
preparation,service,display,anddishwashing.

Floors/Walls/Ceiling
Theremustbesmoothandeasilycleanable(washable,freeofcracksandseams)
walls,ceilings,andfloors.Acousticaltilethatisnotwashableisnotacceptableas
ceilingmaterialsinfoodpreparationareasorinbathrooms.Theremustbecovered
moldingbetweenfloorandwalljunctions.

Ventilation
Allroomsmustbeventilatedtokeepthemfreeofexcessiveheat,steam,
condensation,vapors,obnoxiousodors,smoke,andfumes.Equipmentthat
producesgreasevaporsmustbeventedthroughahoodandagreasecollection
system.

StartingaSmallRestaurant

15

Miscellaneous
Allworksurfacesmustbefreeofcracksanddifficulttocleanareas.Theremustbe
aclothescloset,locker,ordressingroomforstorageofcoats,purses,shoes,and
otheremployeebelongings.

EmployeeConsiderationsandTraining
Theowneroftherestaurantshouldensurethatemployeesdonoteatin
preparation,processing,servicing,orwarewashingareas,excepttotastefoodfor
culinarypurposes,usingasingleuseutensilonce.Whileeasilysaid,thisisa
challengingpracticetoenforce.Itmayseeminconsequential,butemployeeseating
maydirectlyimpactyourprofitsandmightalsoturnoffyourcustomers.Also,
employeesmaynotuseorstoretobaccoinanyforminapreparation,processing,
display,service,orwarewashingarea.Youwillberesponsiblefortrainingand
monitoringyouremployeesconcerningproperhygienicpracticestobeusedwhile
onduty.

AlaskaAdministrativeCode18AAC30.400
TheentirestateofAlaska,exceptfortheMunicipalityofAnchorage,isunderthe
jurisdictionoftheAlaskaDECEnvironmentalHealthEnvironmentalSanitationand
FoodSafetyProgram.Chapter31oftheAlaskaAdministrativeCode(AAC)dealswiththe
operationsandpermitrequirementsforalodgethatservesfoodtothegeneralpublic.
Foradditionalinformation,visittheAlaskaDepartmentofEnvironmentalConservation
(DEC)websiteathttp://dec.state.ak.us/eh/fss/.

InsuranceRequirements&Considerations
Thetwomajortypesofinsuranceyouwillneedarepropertyandcasualty(orproperty
andliability),andlifeandhealth.Propertyandliabilityarethemostimportantfora
business.Propertycoverageincludesinsuranceonyourbuildingsandotherpropertyin
thecaseoffire,theft,andotherlosses.Liabilityinsuranceprotectsyouagainstclaimsof
injuryorpropertylossresultingfromnegligence.Lifeandhealtharegenerallypartof
theemployeebenefitpackage.Thelawrequiressometypesofcoverage,andothers
simplymakegoodbusinesssense.

Mostpropertyandliabilityinsuranceneedscanbeinsuredthroughapackagepolicy,
butspecialcoveragepoliciesmayneedtobeboughtseparately.Thespecialpolicieswill
dependonthelocationofthebusiness.Oneexampleisbusinessinterruptioninsurance,
whichcanprovidesufficientfundstopayfixedexpensesduringaperiodoftimewhen
thebusinessisnotoperationalduetodamagedordestroyedequipmentorbuildings.To
determineyourspecificinsuranceneeds,contactaninsuranceagent.

StartingaSmallRestaurant

16

ZoningRequirements
Zoningclassificationsforarestaurantvaryfromcommunitytocommunity.Youwill
needtodosomehomeworktoidentifyanyzoningrestrictionsspecifictoyour
community.Inmanycases,arestaurantisclassifiedasacommercialbusiness,anda
zoningexemptionmustbeobtainedtohavearestaurantinanareazonedresidential.If
youintendtoconstructanewfacility,useanexistingbuildingforadifferentpurpose,or
performextensiveremodeling,youshouldchecklocalbuildingandzoningcodes
carefully.Zoningshouldbeoneofthefirstplacesyouchecktounderstandwhatyour
communityzonesasallowableorunallowable.

ReportingConsiderations
Theowner/operatorwillneedtokeepgoodaccountingrecords,notonlyfortheIRSand
boroughorcommunitytaxrequirements,butalsoformanaginganddirectingthe
restaurant.Evenifyouplantohireaprofessionaltotakecareoftheirownbooks,it
wouldbeagoodideatoattendaclassonstandardbookkeeping.

AdditionalNeeds

Attorney:Youshouldhireanattorneyatstartuptocheckoverpaperworkandlegal
issuesbeforeyoubeginoperations.Thiswillsaveyoumoneylater,andgivesyoua
workingrelationshipwithalocalattorney,shouldproblemsariseinthefuture.

Accountant:Itisadvisabletogetanaccountantifyouhavenoexperiencewith
businessaccounting.Ifyoudo,youmayjustuseonefortaxfilingpurposes.

TheEnvironmentalHealthOfficeassignedtotheareainwhichtherestaurantwillbe
establishedwillbeabletoprovideinformationonspecificregulations.AlaskaFoodCode
18AAC310detailstherequirementsforoperatingarestaurantanywhereinAlaska(go
to(http://www.state.ak.us/local/akpages/ENV.CONSERV/deh/sanitat/homesan.htm.)

StartingaSmallRestaurant

17

STEP4CONDUCTINGMARKETASSESSMENTAND

RESEARCH

Thetypeofrestaurantyouplantodevelopwilllargelydeterminethe
marketyouwilltarget.Thefirststepinassessingyourmarketistodeterminehowmany
potentialcustomersareinterestedinwhatyouwanttodevelop.Youwillquickly
recognizethatthemarketsizeisrelativelysmall.Marketassessmentandresearchis
aboutunderstandingyourprimarytargetmarketandanysecondarymarkets,knowing
whomtoattract,andidentifyingwaystobetterunderstandandcommunicatewithyour
market.

Inconductingyourmarketassessmentandresearch,yourgoalistobetterunderstand
yourpotentialcustomers.Thisstephelpsyouaddresskeyquestions,suchas:

Whatpotentialcustomersalreadyexistinyourregionand/orcommunity?
Whatarethesecustomerswillingtospendmoneyon?
Whatamenities,servicesandpricesensitivitydothesecustomershave?
Whoisyourtypicalcustomer(age,gender,education,income,occupation,etc.)?
Howdoesyourrestaurantcomparetothecompetition?

Asyoubegingatheringinformationandmakingpersonalcontactwithpotential
customers,createadatabasesoyouhaveanorganizedmethodforreferringtothedata
collected.Onceyourbusinessisoperating,thisdatawillproveveryvaluableasyouseek
newwaystoselltoyourcustomers.

Whoareyourpotentialcustomers?
ArestaurantlocatedinaruralAlaskacommunitywithalargenumberofsummer
visitorsisgoingtohaveamuchdifferentclientbasethanarestaurantlocatedina
smaller,moreisolatedruralcommunity.Inalargercommunity,youmightwantto
targetvisitorspassingthroughtheairporthub.Inasmallcommunity,youmightfocus
insteadonsellingtolocals,andtogovernmentemployeesandconstructionworkers
whocometothecommunityonbusiness.Potentialcustomersmightinclude:

Localcommunitymembers
Communityyouthandteens
Peoplevisitingyourcommunityforgovernmentorconstructionwork
Travelersstuckintownovernightorduringtheday,betweenflights
Seasonalcommunitymembers,suchascommercialfishermen
Visitorstothecommunity

StartingaSmallRestaurant

18

Locationanddemandarethemostimportantfactorsindeterminingyourmarket.
Remember,yourmostlikelycustomerswillcomefromaonemileradius.Potential
customerschoosetoeatoutformanyreasons.Familiesmaycometoyourrestaurantas
aspecialtreatorasabreakfromcooking.Childrenandteensmightvisityourrestaurant
forafterschoolsnacksandsocialization.Visitorstravelingonbusinessmightusethe
restaurantasasourceofmeals,whichtheycannotreadilycookforthemselves.Ifyour
communityisanairporthub,youmightbeabletomakeabusinessoutofpeopleon
layoversbetweenflights.However,themajorityofthemarketsinmostvillageswillbe
sellingtolocals,aswellasvisitinggovernmentofficialsandconstructionworkers.The
DepartmentofFish&Wildlife,theDepartmentofFish&Game,theBureauofLand
Management,universityemployees,staffoffederalprograms,medicalworkers,school
travelers,andvariousothers,areexamplesofthepotentialcustomerswhomightcome
throughasmallruralcommunity.

Ifyouarelocatedinalargeruralcommunity,youmightbeabletodevelopalarger,
moreexpensiverestaurant.However,inalargercommunitytherearelikelytobeother
establishedrestaurants,orcompetition.Competitionisntnecessarilybaditsimply
createsanopportunityforyoutoprovidesomethingbetter.Studyyourcompetitionand
determinewhattheydowell,anddecidewhatyoucandodifferentlyorbetter.

Insomevillages,influxesofseasonalworkersmightrepresentanotherpossiblemarket.
Inthecaseoflargeminesandsomeotheractivities,workersusuallyreceiveroomand
boardandarenotlookingforsomewheretoeat.Still,workersmightvisityour
restaurantifitofferssomethingtheirdininghalldoesnot,suchasaplacetorelaxand
getawayfromtheworkenvironment.

PricingandWillingnesstoSpend
Restaurantmealpricesandoperatingexpensesaregoingtovarybetweencommunities.
Ifyouofferhighquality,freshfoodinastylenotusuallyavailabletoyourcustomers,
youwillcommandahigherprice,althoughyouarealsogoingtohavehigherrestaurant
costs.Locationisalsoalargefactor.Itismoreexpensivetooperateabusinessinrural
Alaska,andhigherpricesareexpected.Asyoucalculateyourpricing,takeintoaccount
yourlocation,yourcompetition,yourfood,yourlevelofservice,andyouratmosphere.

Pricescanvaryaccordingtothefoodandservicesyouprovide,thecompetition,andthe
timeofyear.Ifyouareinatownwithafairnumberofvisitors,youmaydecidetorun
yourrestaurantonlyduringthehighdemandvisitorseason,whenyoucanchargea
premiumprice.Otherrestaurantswillfocusoncommunityresidentsastheprimetarget
market,andexperiencelessseasonalfluctuation.

StartingaSmallRestaurant

19

CompetitiveConsiderations
Restaurantshavemanydifferentfoods,differentservices,anddifferentatmospheres.A
fullmealcanrangeinpricefrom$4towellover$100.InruralAlaska,mostrestaurants
willneedtoberelativelyaffordablewithstraightforwardfoodservices,usuallyfocusing
onasmallcafstyleandofferingagoodselectionofcommonlyrequestedfooditems.

Restaurantscomeinmanyshapesandsizes,fromsmallwalkupstohigherenddining.
FormanyruralAlaskacommunities,thedemandseemstobeforaffordableAmerican
styledining.Thisisoptimalbecauseitischeap,wellperceivedinruralcommunities,and
easytoprepare.Ifyouliveinalargerhubtown,youmighthaveenoughdemandto
createafamilydinertyperestaurant,whichmayventureintothemedfoodsuchas
ItalianorMexican.Lastly,intownswithlargerpopulationsandhighnumbersofoutof
townguests,moreoptionsexist.

RestaurantDemand
RestaurantdemandinruralAlaskaisgenerallygreaterinthesummer,duetothe
seasonalityofgovernmentagencyactivities,aswellasmanyjobslikeconstruction,
cannerywork,surveys,fishing,andtourism.Arestaurantownermustbewillingtobe
openasdemandwarrants,possiblyforlongerhoursduringthesummerandperhaps
duringspringandfall,dependingonthevillage.

Whoisyourtargetmarket?

Locals

FamilyDining

Teens

Tourists

Visitors

CulturalCuisine

HighendDining

Whatistheestimatedsizeofyourmarket?
________________________________________________________________________
Whoisyourtargetcustomer?Whataretheirdemographics:profession,gender,age,
incomelevel,etc.?
________________________________________________________________________
________________________________________________________________________

StartingaSmallRestaurant

20

Whyhaveyouchosenthistargetmarket?
________________________________________________________________________
________________________________________________________________________
Whywouldyourtargetcustomereatatyourrestaurant?Didyouactuallyasksomeof
yourtargetmarketorareyoujustassuming?
________________________________________________________________________
________________________________________________________________________
Isyourmarketseasonal?Whatprimarymonths?Howwillyourunthebusiness
differentlyduringtheoffseasonifatall?
________________________________________________________________________
________________________________________________________________________
Haveyoualreadyspokentopotentialcustomers?Whatweretheirreactions?Whatwere
theirreactionstoyourproposedmenuitems?
________________________________________________________________________
________________________________________________________________________
Whatrestaurantsalreadyexistaroundyourcommunity?
________________________________________________________________________
________________________________________________________________________
Whooftheseareyourdirectcompetitors?Whichbusinessesaretargetingthesame
marketniche?
________________________________________________________________________
________________________________________________________________________

StartingaSmallRestaurant

21

Whatdootherrestaurantscurrentlyoffer,andhowwillyoucompete?
________________________________________________________________________
________________________________________________________________________
Howmuchdotheserestaurantschargefortheiraveragemealoptionsforbreakfast,
lunch,anddinner?
_______________________________________________________________________

Whowouldmostlikelyeatatyourrestaurant?Describethisperson.Whydoyoubelieve
this?
________________________________________________________________________
________________________________________________________________________

Addressingtheabovequestionsandconductinganindepthassessmentofyour
marketisessential.Marketresearchwillprovideyouwiththeinformationanddatayou
needtoidentifyindividualmarketsegments.Youmayevenwanttoconsiderdeveloping
aninformalorevenformalmarketsurvey,soyouhavetheinformationyouneedprior
toestablishingyourrestaurant.Withoutenoughmarketresearch,itwillbeimpossible
toknowifanyrealdemandforyourrestaurantexists.Thepurposeofdoingmarket
researchistoidentifyyourmarket,findoutwherethemarketis,andthendevelop
strategiestocommunicatewithprospectivecustomersinawaythatwillconvincethem
topatronizeyourrestaurant.

Marketresearchwillalsogiveyouimportantinsightsintoyourcompetition.Youneedto
becreativeinfindingoutwhatservicestheyprovide,andhowthisstrategymeetsor
doesnotmeettheneedsofyourmarket.Animportantmarketingstrategyisto
differentiateyourrestaurantfromthecompetition.Beforeyoucandothissuccessfully,
youneedtofullyunderstandyourcompetition,soyoucancommunicatethedifferences
toyourtargetmarket.

Ifyoufeelthatyoufullyunderstandyourpotentialmarketandcanidentifyyourtarget
niche,andalsohaveakeenunderstandingofyourcompetition,youarereadytomove
ontodevelopingamarketingplan.

StartingaSmallRestaurant

22

STEP5DEVELOPINGYOURMARKETINGAND
CUSTOMERSERVICEPLAN

Eventhoughyouareintherestaurantbusinessitdoesnotmeanyou
builditandtheywillcome.Youwillstillneedtodevelopaplanformarketingyour
business.Afterall,youareinthebusinessofsellingfood,whichwillrequiresomesales.
Whiledevelopingaplaniscriticalakeypieceofthatplanisattendingtocustomer
serviceneedsandensuringthatyourrestaurantprovidestoplevelservice.Remember
thatwordofmouthisacriticalmarketingandsalesmanshippieceformostrestaurants.

Advertising
InverysmallruralAlaskantowns,verylittleadvertisingmaybeneededforarestaurant
tobecomesuccessful.Advertisementsmaybenothingmorethanasignplacedoutside
oftherestaurant.Ataminimum,uponopening,youshouldpostfliersattheairport,
localgrocerystores,businesses,andcommunityofficestoraiseawarenessandto
attractvisitorswhomaynotknowofyourrestaurantsexistence.Whenseekingnew
customersyoumaywanttoofferafreemealorotherincentivetoattractguests.The
restaurantshouldeithermakeorhiresomeoneelseinthecommunitytomakeasignfor
theoutsideofthebusiness.Thesignshouldbeplacedwhereitiseasilyseenby
everyoneinthecommunity,makingitaneasywaytoattractpotentialcustomers
drivingthroughtown.

If,ontheotherhand,youareinalargertownwithseveralrestaurants,advertisingmay
playamuchmoreimportantrole,asyouarecompetingforthesamecustomers
betweenseveralrestaurants.Ifcompetingwithseveralrestaurants,youmaywantto
includepromotions,suchascouponsorspecialsaswellasothertypesofadvertising,
suchasradioadsorsponsoringcommunityevents.

Ifthereisadesiretoreachamoregeneralmarket,youcouldpaytolistyourbusinessin
guidebooksandplacefliersatregionaltourismcenters,attheairport,orinotherkey
communitylocations.Also,dependingonlocation,considerusingdirectadvertisements
totourismagenciesandcompaniessuchasPrincessTours.Remembertousecoupons
andofferafreemealtoattractnewcustomers.

Becauseitcostsmoneytoadvertise,chooseyouradvertisingmethodscarefully.
Considerwhatcustomersyouaretryingtoattract,theirinterestsandneeds,andwhat
advertisingmediumwillreachthemmosteffectively.Youradsandbrochuresareoften
thefirstimpressionapotentialguestreceivesofyourrestaurant.Makesureallofyour
collateral(promotionalpieces)isclearlywrittenandattractiveinappearance.Itdoesnt
payjusttoadvertise.Advertisingiseffectiveonlyifitreachesyourintendedaudience.
Freefoodenticementsmaygofartherthananything.

StartingaSmallRestaurant

23

Salesandpromotiontechniquestoincreasebusiness:

Contactvariousgovernmentagencies,Nativegroups,serviceproviders,or
constructionworkersthatareknowntovisittheareaandtellthemaboutyour
restaurant.Offercorporatediscountsonmealsorfreemealsforeverysomany
mealspurchased.

Placefliersandrackcardsinregionalairports,stores,andcityandtribaloffices.
Thisisespeciallyimportantforsmallcommunitiesandcommunitieswithfew
visitoractivities.Makecertainthatvisitorstoyourcommunityknowthatyouare
inbusiness.Offersoftwomealsforthepriceofonemaycauseavisitorto
chooseyourrestaurantoveranother.

PublicRelationsandPromotions
Inadditiontoadvertisingyouneedtobegoodatsalesconvincingthecustomerto
comeintoyourrestaurantandpurchasefood.Youalsoneedtobeabletokeepyour
customercomingbackagainandagain.Again,developingadatabaseorsystemfor
trackingspecialoccasionssuchasbirthdaysandanniversariesprovidesawayforyouto
inviteyourcustomerback.

TopNotchService
Restaurantscomeinmanydifferentshapesandsizes,buttheyaretypicallyveryservice
oriented.Arestaurantmanagerandstaffareexpectedtobefriendlyandservices
oriented.Thissectionwillhelpyoudevelopwaystoincreasecustomersatisfaction,
whichcanleadtomorereturncustomers,wordofmouthadvertising,andpotentially
evenanabilitytocommandhigherprices.

Firstimpressionsarelastingimpressions.Onceyourguestsarrive,greetthem
withasmileandafriendlywelcome.Ensurethatallthedetailsoftherestaurant
(menus,signs,tablecards,furnishingsandotheritems)conveythesame
messageaboutwhoyouareandthetypeofserviceyouprovide.

Someofthebestadvertisingiswordofmouth.Askregularcustomersto
recommendyoutotheirfriends.Ifsomeonecomplimentsyourrestaurant,ask
themtorecommendittotheirfriends.Youwouldbesurprisedhowmuchmore
likelytheyaretomentionyoutofriendsorfamilyafterbeingasked.Youmay
alsowishtocreateacommentboxwherepeoplecandropcomments,which
couldhelpyouprovidebetterservice.Forbetterfeedback,asmallsurveycard
maybeleftnexttothecommentboxtoencouragemorefeedback.Seeappendix
page52forasampleCustomerCommentCard.Youmaywanttocreate
incentivesforcustomersaswellasstafftoencouragethemtoreturncards.

StartingaSmallRestaurant

24

Restaurantscomeinmanydifferentshapesandsizesandhavevaryinglevelsof
servicedemands.Whileasmallfastfoodrestaurantmaynotdemandthesame
levelofserviceasahighendrestaurant,itisstillimportant.Insmall
communitiesofonlyseveralhundredpeople,afewbadexperiencescan
drasticallyreduceyourclientbase.Ifsomebodycomplainsabouttheirfood,itis
besttooffertoreplaceit.Customersshouldbetreatedrespectfully,andthe
restaurantshouldhaveapleasantatmosphere.Thissectionwillbeusedtohelp
youdevelopwaystoincreasecustomersatisfaction,whichcanleadtohigher
prices,increasedreturncustomers,andmorewordofmouthadvertising.Good
servicecanleadtoloyalguests.

Ifyouhaveemployees,makesuretheyalsounderstandyourrestaurantspolicy
oncustomerservice.Spendtimepreparingthemforworstcasescenarios,such
asifacustomeryellsatthemwhenyouarenotaroundordemandstheirmoney
back.Takingtimetoconsidersuchsituationscansaveagreatdealoftimeand
troubleinthefuture.

Thingstoremember:

Asignontheoutsideofthebuildingshouldnotbeoverrated,eveninsmalltowns.

Contactvariousgovernmentagencies,Nativegroups,serviceproviders,or
constructionworkersthatareknowntovisittheareaandletthemknowabout
yourrestaurant.

Makesurecityoffices,stores,andairportshavefliersandknowledgeaboutyour
restaurant,sothatpeoplepassingthroughtownwillknowitisaround.

Guidebooks:Thisisreallyonlyimportantifyouaretargetingtourists,whowill
turntotheirguidebooktofindwhatisavailabletoeat.

StartingaSmallRestaurant

25

STEP6DEVELOPINGYOURORGANIZATIONALPLAN

Theobjectiveofthissectionistoprepareyou,astherestaurantownerormanager,to
developanorganizationalplan.Anorganizationalplanishowyourbusinesswillbe
structuredinregardstoownership,management,andthestaffingofyourrestaurant.As
afirststep,youwillneedtodecideonyourlegalstructureandthenbeginmakingalist
ofalltherestaurantactivitiesthatneedtobedone.Atthesametime,begintomake
assignmentsastowhowilldowhat.Throughthisprocessyouwillrecognizewhat
necessaryskillsarelacking.Nowyoumustidentifywaystoaddressthesedeficiencies.

OwnershipConsiderations(LegalStructure)
Aprimaryplanningdecisionistodeterminethelegalstructureofyourrestaurant
business.Youmustchosetoeitheroperateasasoleproprietorship,apartnership,
limitedliabilitycompanyorcorporation.Thevastmajorityofrestaurantsareorganized
asasoleproprietorshiplikelyduetosimplicity,butthismayormaynotbethebest
formoforganizationforyouruniquesituation.

Asafirststepyouwillneedtobecomebetteracquaintedwithyouroptions.Itis
temptingtojustorganize,butthereareclearprosandconstoeachformof
organization.Thereareresourceguides,classesandindividualopinionsregardingeach
formoforganization.Thepurposeofthisguideistoassistyouinwritingyourbusiness
planandbecausewebelievewecantcompletelycoverthesubjectbrieflyitis
importantthatyouconductsomeselfresearch.Ultimately,youmaywanttoconsulta
lawyerandevenanaccountanttochoosethebestformforyouruniquesituation.
Remember,thisisanimportantstep,trytotakethesamecareinlayingthefoundation
foryourbusinessasyouplantotakeinultimatelydeliveringyourbusiness.

Manager(Owner)
Asamanageryouwillplan,organize,direct,control,evaluateandimplementongoing
activitiesoftherestaurant.MostruralAlaskarestaurantoperationsaresmallenough
thattheycannotsupportapaidmanagerandstillprovideincometoanowner.Instead,
inmanycasestheownerperformsallthemanagementfunctions,aswellasmanyofthe
employeefunctions,untiltherestaurantbecomesprofitable.Specificactivitiesofthe
managerinclude:

FinancialAccountingresponsibleforensuringfundsareavailabletooperate
therestaurant.Activitiesincludedevelopingsystemstotrackrevenueand

StartingaSmallRestaurant

26

expenseitems(cashflowstatement),andthenevaluatingtheinformationand
developingafinancialplan.

Marketingresponsibleforensuringguestscometoyourrestaurant.Activities
includedevelopinganddistributingmarketingmaterialstoattractcustomersto
yourlodgeandthenprovidingamemorableexperiencesothattheguestswant
toreturn.

FoodServiceresponsibleforensuringthatfoodisprovidedtoguestsas
promisedandinawaythatmeetshealth,safetyandlicensingrequirements.
Activitiesincludedevelopingmenus,preparingafoodbudget,makingfood
purchases,preparingfoods,serving,andmeetingguestneeds.

FacilityMaintenanceresponsibleforensuringtheentireproperty(interiorand
exterior)isproperlymaintained.Itisparticularlyimportantthathealth,safety
andlicensingitemsareaddressed.Activitiesincludekeepingitemssuchas
electrical,plumbing,heating,ventilation,fireprotectionandsmokecontrol
systemsinproperworkingorder.Additionalactivitiesincludesnowremoval,
mowingorotheryardcare,paintingandrepairingfixturesandamenities,and
maintainingheavilyuseditemssuchaskitchenappliances.If,astheowner,you
areparticularlyhandyathomemaintenancethelistedresponsibilitiesmaynot
bedaunting,otherwisecontractingoutmanyoftheseresponsibilitiesmaymake
goodbusinesssense.

BuildingyourRestaurantTeam
Thefirststeppriortolookingforsomeonetohireistodecidewhatexactlyyouwant
someonetodo.Youdontneedtodevelopaformaljobdescription,butatthesame
timeyouneedtoclearlyoutlineanyandalldutiesandresponsibilitiesyouexpectofthe
positionyouwanttohirefor.

Thenextstepyouwillneedtotakeistodeterminehowmuchyouarewillingtopaythe
position.Determiningpayshouldbeacombinationofexploringwhatothersarepaying
forsimilarpositionsandwhatyourfinancialplanningsaysyoucanafford.Remember
thatmanyrestaurantpositionsreceivetheaddedbenefitoftipssofacturethisinasyou
aredeterminingyourpayscale.Itwillalsobeimportanttodecideonwhatbenefitsyou
willalsobeofferingaspartoftheemployeestotalcompensation.

HiringemployeesinruralAlaskacanbedifficult.Ifyouareinasmallcommunity,you
maybedealingwithaverysmallpoolofapplicantsandemployeesthatneedtrainingin
theskillsnecessaryforarestaurantbusiness.Additionally,ifyouhavelivedinthis
communityforanylengthoftimeyouwilllikelybefacedwithafurthercomplicationof

StartingaSmallRestaurant

27

hiringyourfriendsand/orrelativesasemployees.Alloftheseobstaclescanbedifficult
tonavigate.Hopefully,therecommendationsbelowwillsmooththisprocess.

Donotunderestimatetraining.Ifyouarehiringsomebodyforapositionthat
theydonotalreadypossesstheskillsetfor,donotassumetheywillpickitupas
theygo.Plantospendextratimeandmoneytoteachyouremployeespersonally
whattheyneedtoknoworspendmoneyforoutsidehelp,onlineclasses,or
computersoftwaretoassisttheminlearningtheskillstheyneed.

Itmaybeworthpayingalittlebitmoremoneyforsomebodywhoisresponsible,
oralreadyhastheneededskills.Anirresponsibleorillequippedemployeecan
slowdownabusinesssoperationorevenaffectitsreputation,whichcostsmuch
more,intheend,thanpayingamarginallyhigherwageforabetteremployee.

Performacriminalbackgroundcheck;itisworththecost.Itisacheapand
convenientprocesstoperformcriminalbackgroundchecksonpotential
employees.Checksallowyoutofeelsafeinhiringemployeesandtoprotect
yourselffromunknownthreats.Twosourcesforcriminalbackgroundchecksare:
o TheAlaskaDepartmentofPublicSafety
http://www.dps.state.ak.us/Statewide/background/

o MotznikInformationServices
http://www.motznik.com/

Whenhiringfriendsand/orfamilymembers,makesurebothofyoudiscuss
expectations.Theemployeewillneedtounderstandthattheymustshowupfor
workontime,obeytherulesoftherestaurant,andactprofessionally,orthey
willbefired,justlikeanyotheremployee.Thiscanleadtocomplicationsand
strifebetweenfamilyandfriends.Ifyoudonotbelieveyourfriendorfamily
memberwillbeabletofollowthesetrulesorthatyouwillhavetrouble
enforcingthem,donothirethem.

EnsuringtheRightSkillsandAptitude
Whileyoumayinitiallyfeelthatnospecifictrainingisnecessaryorneeded,inmost
casessometrainingisbeneficial.Guestswillrememberandsharewithothersstories
aboutpoorcustomerserviceoruncleanfacilitiesevenifthefoodwasexcellent.Running
arestauranthasnospecifictrainingrequirements,butthereisaneedforbasic
knowledgeofthefollowing:

Serviceandhospitality:Youwillbeexpectedtobewelcomingandprovidea
hospitableenvironmentforguests.

StartingaSmallRestaurant

28

Cleaning:Manypeopleareverypickyaboutcleanlinessand,tocomeoffas
professional,arestaurantmustbeclean.

Cooking:Theamountofcookingskillsneededwillvarybasedontheleveloffood
servicesyourrestaurantdecidestooffer.

Bookkeeping:Ifyou,asthebusinessowner,arenotcomfortablewithkeeping
thebooksorusingbookkeepingsoftware,youmaywanttoconsiderhiringa
companytokeepthebooksandfiletaxes.

Peopleskills:Asthehost,youwillneedapositiveattitudeevenwhenthingsare
goingpoorly.

Serviceandhospitalityareofutmostimportance.Ifhospitalityisshown,itcould
producefreeadvertisingthroughwordofmouthreferrals.Therestaurant
owner/managershouldhavebasiccooking,bookkeeping,andpeopleskills.

HiringProfessionalAssistance

Attorney:Anattorneyshouldbehiredatstartuptocheckoverpaperworkand
legalissuesbeforebeginningoperations.Thiswillsaveyoumoneylaterandgive
youaworkingrelationshipwithalocalattorneyincaseproblemseverarise.

Accountant:Itisadvisabletohaveanaccountantifyoudonothaveexperience
withbusinessaccounting,althoughonemaybeusedjustfortaxfilingpurposes.

Remembertoconsideryourself,whenweighingmanagementandtrainingneeds.Ifyou
lackacertainskillset,youmayneedtohiresomebodywhopossessesit.Also,you
shouldnotunderestimatethevalueofinvestinginyourowneducation.Itmaybeworth
flyingintoAnchoragetoattendahotelmanagementseminarorclassifitallowsyouto
completetasksthatyouwouldotherwisenotbeabletodo.

Criticalquestionstoanswerinthisstepinclude:

Whattaskswillneedtobecompletedonadailybasis?
________________________________________________________________________
________________________________________________________________________
Howmanystaffdoyouplantoemploy?Whatwillyoupaythem?
________________________________________________________________________
________________________________________________________________________

StartingaSmallRestaurant

29

Areyourstaffedpositionsseasonal,fulltime,parttime,etc.?
________________________________________________________________________
________________________________________________________________________
Whatskillsdoyourmanagerandemployeesneedtobesuccessfulattheirjobs?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Howwillyoutrainemployeesandensurethattheyhaveneededskills?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
Whatprofessionalrelationshipshaveyouestablished?(Lawyer,accountant)
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________

StartingaSmallRestaurant

30

STEP7DEVELOPINGYOURFINANCIALPLAN

Thissectionwillguideyouthroughtheprocessofdeterminingwhetherornotyour
restaurantwillbeprofitable.Toeffectivelymanagethefinancesofyourrestaurantyou
willneedtofirsthaveafirmgraspofprojectedstartupcosts.Nextyouwillneedto
estimateyourrevenueandcoststodevelopyourannualbudget.Followingthis,youcan
projectyourprofits.Usetheworksheetsonpages62to65todevelopyourfinancial
projections.

Topreparefinancialestimatesyouwillneedtomakesomebasicplanningassumptions
todevelopyourfinancialprojectionsfrom.Assumptionsaresimplytheeducated
guessesyouwillbemakingregardingyouraveragecostpermeal,numberofclientsand
operatingexpenses.Followingisasummaryofkeyfactorsandassumption
considerationstoprepareyoufordevelopingyourownfinancialestimates.

StartupCosts
EquipmentPurchases
Startupcostsusuallyincludesignificantone
Equipmentisanessentialpartof
timecosts,suchasthepurchaseorremodel
startingasmallrestaurant.Thereare
ofarestaurantfacility,andsomeminorcosts
lotsofopportunitiesforbuyingor
(e.g.equipmentpurchases,utilitydeposits,
leasingnewandusedequipment.Used
downpayments,andlicenses).
equipmentisavailableinAnchorageor

fromlargervillageslikeDillingham,
Startupcostswilldifferforeachproperty,
KingSalmon,orBethel.Neworold
butcommonrestaurantstartupexpenses
equipmentcanbeorderedeither
include:
throughfreecatalogsorthroughthe
internet.Thefollowingsitesprovide
StateofAlaskabusinesslicense($100
detaileddescriptionsofequipmentas
peryear)
wellasapricelist:
Officeandkitchenequipment

Diningfacilitydcorandseating
http://www.gandgequipment.com/,
Facilitylease,purchaseand
http://rex.rewonline.com/groupcou.html,
renovation.
http://www.cateringequipmentworld.com

http://WWW.NEXTERNAL.COM/JANDE/.

Startupcostsmaybepayablethroughasmallloanpaidbackoverthenextfiveto
twentyyears,but,duetothedifficultyofmicrolendinginruralAlaska,aloanshould
notbeconsideredreadilyavailable.Moneyforarestaurantstartupshouldbesavedor
obtainedwiththerealizationthatitmaynotberepaidthroughbusinessprofitsfor

StartingaSmallRestaurant

31

severalyears.Manystartupcostscanbeturnedintofixedcostswiththeuseofloansor
rentingratherthanbuying.Ifequipmentisleased,itwillthenbecomeafixedcost.Ifitis
possibletorenttheneededspaceinyourtown,thenonlythesecuritydepositbecomes
astartupcost,andrentwouldbeamonthlyfixedcost.Intheend,rentingmaybemore
expensive,butifyourrestaurantweretofail,youwouldnothavespentorborroweda
largeamountofmoneytobuyabuildingandequipment.

Thefollowingquestionsshouldhelpyoudeterminetheamountofstartupcapital
youwillneedtobeginyourrestaurant.

Howmuchmoneydoyouhavesavedtosupportarestaurantstartup?
________________________________________________________________________
________________________________________________________________________
Howmuchmoneywillyouneedforstartupandworkingcapital?
________________________________________________________________________
________________________________________________________________________
EstimatingRevenues
Toestimaterevenuesyouwillneedtoestimatehowmanypeoplewilleatatyour
restaurant(covers)andhowmuchtheaveragepersonwillspendpervisit(average
check).Toestablishanestimateastoexpenditure,reviewotherrestaurantsinyour
localarea.Higherpricesdonotalwayscorrelatedirectlyintoadditionalrevenues
remembersomepotentialguestswillturnawayifthepriceofamealistoohigh.

Thefollowingquestionsshouldhelpyoufurtheransweryourprojectedsales.

Howmanycustomersdoyouhavetheabilitytoserveinyourrestaurant?
________________________________________________________________________
________________________________________________________________________

StartingaSmallRestaurant

32

Howmanytimesperperiod(breakfast/lunch/dinner)willyouturn*atable?
________________________________________________________________________

*Turnsthenumberoftimesatableisfilledandrefilledduringaspecifiedperiodoftime.The
timeperiodistypicallyamealtimeorday.

Ifanewrestaurant,howmanysalesarenecessarytohitabreakevenanddesiredprofit
level?
________________________________________________________________________

Estimatingbreakevenpoint
Atooloftenusedinbusinessplanningiscalledabreakevenanalysis.Abreakeven
analysistellsyouhowmanysalesyouneedtomaketocoverallyourcosts(fixedand
variable).Thisisyourbreakevenpoint.
Tocalculateabreakevenpoint,takethefollowingfewsimplesteps:
1. Determinetheaveragesalespriceofyourproductorservice;
2. Calculatethetotalvariablecostsandsubtractthesecostsfromtheaveragesales
pricetheremainderiscalledtheunitcontributionoramountyouhaveto
coverfixedcosts;
3. Totalyourfixedcosts(insurance,licensing,utilities)alsoknownasoverhead.
4. Divideyourtotalfixedcostsbyyourunitcontributiontodetermineyour
breakevenpoint
Achievingabreakevenpointwithyourbusinessisgreat.However,dependingonyour
personalgoalsandreasonforbeinginbusinessyoumaywanttodeterminewhatlevel
ofsaleswillbenecessarytoachievedifferentlevelofprofitability.Manybusinesses
calculatetheirbreakeventobetterunderstandthelevelofproductionoreffortthat
needstooccurtocoverfixedandvariablecosts(withoutmakingaprofit).Evenifyou
areinbusinesstocreateajobforyourself,theremaycomeatimewhenyouneedto
determinehowadditionalsaleswouldsupportincreasedsalaries,medicalbenefits,
purchaseofequipment,orexpansionofyourbusinesstothenextlevel.

StartingaSmallRestaurant

33

EstimatingCosts
Toeffectivelymanagethefinancesandplanforasoundandrealisticbudget,youwill
needtoestimateyouroperationalcosts.Again,itisimportanttolistyourassumptions
sothatyoucantrackwhatyoubasedyourcostson.Coststypicallyincludeinventory
(costofgoodssold)andoperationalcosts,whicharetypicallybrokendownintofixed
andvariablecosts.

CostofGoodsSold
YourcostofgoodssoldorCOGSincludesthecostofingredientstoproducetheitems
forsaleontherestaurantsmenu.Costswilltypicallyincludeinventory,aswellasany
specialboxingthatisrequiredperpurchase.Foodcostsincludeallthatwentintothe
inventorypurchase.Ifthefoodspoiled,orwastakenhomebyanemployeeitisstill
consideredacostofgoodsold.

FixedCosts
Fixedcostsarefeesthatarepaidyearly,withorwithoutcustomers.Theycanalsobe
calledthecoststojustopenthedoor.Theseincludeminimumstaffing,managers,rent,
utilities,interestanddepreciation.Theycanalsoencompassprofessionalassociation
feesandloanpayments(ifaloanwastakenout).

Itisimportanttoincorporatestaffingorlaborcostssuchas(FICATax,Workmens
Compensation,FederalandStateUnemployment,MedicalInsuranceandanyVacation
orHolidayPay.Thesecostscanamounttobetween15and20percentofyourtotal
laborcosts.Additionally,youmayfinditusefultobreaklaborcostsintomoredetailfor
instance:management,kitchenstaff,waitstaff(servers),andcleaningstaff.

VariableCosts
Variablecostsarecoststhatareincurredwhenacustomervisitstherestaurant.The
mostpredominantoftheseiscostsofgoodssoldaddressedpreviously.Additionalcosts
includelinens,creditcardfees,disposablesuppliesusedtocookandservethefood,
wrappers,bags,cups,grease,andcondiments.Equipmentmaintenanceisalso
consideredavariablecost,becausethemorecustomersyouhave,themorewearyour
equipmentwillendure.

StartingaSmallRestaurant

34

Howcanyouloweryourcostofcostofgoodssold?
________________________________________________________________________
________________________________________________________________________
Whatareyourfixedcosttotalsonamonthlyandyearlybasis?
Monthly:___________Yearly:__________
Whatfactorscontributetoyourvariablecostsandhowcanyoumanage?
________________________________________________________________________
________________________________________________________________________
FinancialStatements
Oneoftheprimaryindicatorsoftheoverallhealthofyourbusinessisitsfinancialstatus.
Itisimportantthatyoudeveloptheskillsnecessarytomonitorandtrackyourfiscal
progressasaregularpartofrunningyourrestaurantbusiness.Thereareawiderangeof
computersoftwarepackagestoassistyouintrackingyourbusinessfinancialposition.If
thesesystemsseemforeign,youmaywanttocontractwithanaccountanttoestablish
youraccountingsystemsandprovidetrainingsothatyoucantrackyourownprogress.
Asanalternative,youmaywanttopaysomeonetodoyourmonthlyaccounting.
Whateversystemyouuse,youmustalwayskeepyourbusinessrecordscurrent.

TheNationalRestaurantAssociationoffersabookonindustryoperationalratiosand
statisticsfromwhichyoucandrawassumptionsforyourrestaurant.
www.restaurant.org/research/operations/overview.dfm.Itisimportanttoremember
thattheseareindustrywideratiosandassumptionsandthatAlaskabasedbusinesses
typicallydontfallcompletelywithinnationalaverages.Itwillbeimportanttoconsider
bothnationalandlocalaverageswhenplanningyourownassumptions.Followingisa
summaryoftypicalsalesandexpenses:

ITEM
Sales
CostofGoodsSold
Labor
GeneralExpenses
NETPROFITBEFORETAXES

StartingaSmallRestaurant

AverageRestaurantPerformance
100%
32%
34%
30%
4%

35

Toknowhowyourproposedbusinesscomparestotheseindustryaverages,youwill
needtodevelopproformafinancialstatements.
Theprimaryfinancialstatementsthatyouwillneedtounderstandanduseinclude:

Profitandlossstatementalsoknownasanincomestatementthisfinancial
statementletsyouknowhowmuchyourbusinessismakingorlosingovera
specificperiodintime(monthly,quarterly,yearly).Thestatementsimply
subtractsexpensesfromrevenuestoarriveatanetprofitorloss.

Balancesheetalsoknowsasasnapshotofabusinessesfinancialpicturethis
statementsummarizesyourassets,liabilities,andownershipequityonaspecific
date.

Cashflowstatementalsoknownasstatementofcashflowsthisstatement
showstheinflowsandoutflowsoffinancialactivityforaspecifiedperiod(often
monthlyorquarterly).Thisstatementsupposedtotellyouifyouaregenerating
enoughrevenuetocoveryourexpenses.

Understandingandmonitoringyourcashflowwillbeofcriticalimportance.All
toooftensmallbusinessownerstakeinrevenuewithoutfullyaccountingforthe
expensesandcoststhatmustbecovered.Netcashflowisthedifferencebetween
incomingcashandoutgoingcash.Startupcostsandunforeseenexpensescanquickly
gobbleupyourcashreserves.Preparingcashflowreportscanbetterprepareyouasa
businessownertoplanforpaymentofbillsandstaffsalaries.

Additionally,allbusinesseshavesalescyclesbasedontheseasons,communityevents,
andthedaysoftheweek.Arestaurantisnodifferent.Yourfinancialprojectionsshould
takeintoaccountanyeventsorknownactivitiesthatwillpositivelyornegativelyimpact
yoursalesorexpenses.

StartingaSmallRestaurant

36

CONCLUSION

InasmallruralAlaskacommunity,runningarestaurantmayprovetobeatough
business.Unlessyouarefromacommunitythathashighlevelsofvisitorstravelingfor
businesspurposesandyourrestaurantispositionedtoservetheseclients,youwillhave
toworkreallyhard.SummerbusinessoperationsinAlaskasruralcommunitiesoften
competewithhigherpayingsourcesofrevenuesuchascommercialfishingand/or
subsistenceactivities.Makecertainthatyouspendtimedecidingifthisisthetypeof
businessthatworkswellwithyourotherrevenuegeneratingactivitiesandinterests.

Thefollowingrecommendationsareforfurtherconsiderationandasawayof
summarizingpreviousstepsofthishandbook:

Developandimplementproceduresforrestaurantoperations

Operatinghours
Menuitems
Cleanlinessprocedures

Developamenuthatyoucanprepareandthatoffersitemsthatarenotonly
affordabletopurchase,butreadilyavailable.Yourpatronswilltireofhearing
thatsomethingisnotonthemenubecausetheplanedidnotmakeitin.
Additionally,developamenuthatisaffordabletoyourprimarytargetmarket.
Investigateandknowfoodsafetypracticesaswellaslicensingandregulatory
requirements.

Itisalsoimportantthatarestaurantownerbeflexibleandwillingtoworkthebusiness
asbusinessopportunitiespresentthemselves.Likewise,itisimportantforarestaurant
ownertosurveycustomersandadjustthebusinessasdemanded.

StartingaSmallRestaurant

37

APPENDICES

StartingaSmallRestaurant

38

StartingaSmallRestaurant

39

LocationEvaluationWorksheet

Thisworksheetshouldhelpyoudeterminewhattypeofrestaurantthatmaybesuccessfulin
yourcommunity.

1.Whatisthepopulationofyourcommunity?_______________________________________

2.Areyoulocatedontheroadsystem?
Yes_____
No_____

3.Ifyes,howfarareyoufromthenearestregionalcenter,touristdestination,orurbanarea?
__________________________________________________________

4.Ifno,howmanypeopleflytoyourtownannually?__________________________________

5.Isyourtownapopulartouristdestination?_______________________________

6.Whatlodgingfacilitiesexistinyourcommunitythatmightwantfoodservicefortheirguests?

Hotels__________________________________________________________________

Motels__________________________________________________________________

Roadhouses_____________________________________________________________

Bed&Breakfasts_________________________________________________________

7.Howmanygovernmentprojectsarecurrentlyactivewithinyourcommunity?

Shortterm______________________________________________________________

Longterm_______________________________________________________________

8.Howlongdoestheaveragevisitorstayinyourcommunity?____________________________

9.Areyouatransportationorservicehubforsurroundingcommunities?Whichcommunities?

Yes__________________________________________________________
No

10.Doyouhaveanyofthefollowing?

CommercialIndustry

GovernmentAgencies

MedicalServiceProviders

Other

StartingaSmallRestaurant

Yes No
Yes No
Yes No
Yes_________________________

No

40

11.Doesyourcommunityhaveanyspecialtaxesorrestrictionsonrestaurants?

Yes__________________________________________________________
No

12.Doesyourcommunityexperienceseasonalinfluxesofvisitors?Howmanyvisitors?

Yes_________________________________________________________
No

13.Areyourtypicalvisitors:

Governmentcontractors________________________________________________
Tourists______________________________________________________________
Localsseekingservices__________________________________________________
IndustryWorkers______________________________________________________

StartingaSmallRestaurant

41

RestaurantChecklist

Equipment:

Bakersbinandtables
Bar(ifapplicable)
Beveragedispensingsystem
Broiler
Canopeners
Cashregister
Coffeemaker
Convectionoven
Commercialdishwasher
Foodprocessor
Freezer
Fryer
Garbagedisposal/dumpster
Griddletop
Dolly
Heatlamps
Icemachine
Meatgrinder
Microwave
Mixer
Oven
Pots/Pans

FacilityNeeds:

Adequateparking
Welllitexitsign
Fireextinguisher
Wheelchair/handicapaccessibility
Inspectionbythehealth
department

OtherNeeds:

Condiments
Cleaningsupplies
Gloves/hairnets/uniforms
Trashbags
Portionscale
Prepandsteamtable
Preparationsinks
Pressurelesssteamer
Refrigerator
Roll/breadwarmer
Sandwichtable
Securitysystem
Signage
Slicer
Soap/soapdispensers
Sodamachine
Spatulas
Silverware
Storage
Threecompartmentsink
Toaster
Tongs
Utensilrack
Ventilationsystem

StartingaSmallRestaurant

42

EstimatedStartUpCostsWorksheet

Startupcostsareanyexpensesenduredaspartofstartingthebusiness.Thisincludeslicensing,
legalassistance,andotheronetimeonlycosts.Startupcostswillbesubstantiallyhigherifthey
includeamortgageandthepurchasingofallrestaurantequipment.Anystartupcostspaidwith
aloanshouldbefactoredinasfixedcostsequaltotheloanpayments.

StartUpNecessities

EstimatedCost

Licenses

Equipment

Legalservices

Insurance

Advertising

Mortgage

Phone

Training

Licenses

Equipment

Legalservices

TOTAL:

StartingaSmallRestaurant

43

RevenueEstimateWorksheet

Estimatingrevenuecanbeverychallengingbutisessentialforplanningthesuccessand
scopeofyourrestaurant.Pricingshouldbecompetitivewithotherrestaurants,although
higherpricescanbechargedifbetterfood,location,andservicearebeingoffered.
Secondly,anestimatemustbemadeonthenumberofcustomersyouwillhaveper
year.Rememberthattheseestimatesneedtobereasonable,oryoumayenterintoan
unrealisticbusinessventure.

Nowweestimateourrevenuebytakingourthreeassumedvariables:

A)AVERAGECOSTOFMEAL:______________________________________

B)NUMBEROFMEALSPERDAY:___________________________________

C)DAYSOPENAYEAR:___________________________________________

NowAXBXC=TOTALREVENUE

TotalRevenue=_______X_______X_______=_______________

ABCTotal

StartingaSmallRestaurant

44

EstimatedFixedCostsWorksheet

Fixedcostsaremonthlyoryearlyfeesthatmustbepaid,andremainrelativelyconstant
nomatterthenumberofguestsreceivedayear.Theseflatfeesmustbeaccounted
forinadifferentmethodthanvariablecosts,whichdependonthenumberof
customers.

FIXEDCOSTS

EstimatedCostsperYear

Labor

Utilities

Maintenance

Insurance

Advertising

Miscellaneous

Phone

LoanPayments*

TOTAL:

*Ifaloanwastakenouttopaystartupcosts,thentheloanpaymentsshouldbe
calculatedhere.

StartingaSmallRestaurant

45

VariableCostsWorksheet

Variablecostsarecostsonlyexperiencedwhentherearecustomers.Theseincrease
whentherearemoreguestsanddonotexistwithoutguests.Oneexamplewouldbe
estimatedfoodexpensesperguestfortheaveragemeal.Thesearemoredifficultto
estimate,becauseyouneedtoestimatetheperguestcostratherthantheyearlycost.

VariableCosts

EstimatedCostPerAverageGuestStay

Food

Paperandothersupplies

Maintenance

Cleaningsupplies

TOTAL:

Thistotalgivesyouthevariablecostpercustomerforyourrestaurant.

NowforthetotalvariablecostperyearwetaketheTOTALfromaboveandmultiplyit
bytheestimatednumberofguestsperyeartoestimatetotalyearlyvariablecost.

_____________X_______________________=_______________________________
TOTALEstimatedGuestsperYearEstimatedYearlyVariableCost

StartingaSmallRestaurant

46

ProfitandLossStatement

Revenue:

GrossSales

LessReturnsandAllowances
NetSales

CostofSales

GrossProfit

$__________________
$__________________
$__________________
$__________________
$__________________

OperatingExpenses:
Salaries

PayrollTaxes

EmployeeBenefits

Insurance

Advertising

Depreciation

TransportationExpenses

DuesandFees

Legal&Accounting

OfficeSupplies

Telephone&Internet

Utilities

Rent/Mortgage

TaxesandLicenses

Other

$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________
$__________________

TotalOperatingExpenses
OperationalProfit(Loss)
OtherIncomeandExpenses

$__________________
$__________________
$__________________

NetIncome(Loss)BeforeTaxes

$__________________

IncomeTax

NetIncome(Loss)

StartingaSmallRestaurant

$__________________

$__________________

47

BalanceSheet

Proformabalancesheetsandcashflowsaresimilartotraditionalbalancesheetsandcashflows,
buttheypredictwhatwillhappentoyourbusinessinthefuture,soyoucanseewhereyour
moneywillbegoingandwhethertoexpectaprofitoraloss.

Year:________________

Assets
CurrentAssets

Cashandequivalent

$__________________

Accountsreceivable

$__________________

Inventories

$__________________

Prepaidexpenses

$__________________
TotalCurrentAssets

$__________________

FixedAssets

Land

$__________________

Buildings

$__________________

Equipment

$__________________

Furniture

$__________________

Vehicles

$__________________

Lesstotaldepreciation

$__________________
NetTotalFixedAssets

$__________________
TotalAssets

$__________________

Liability
CurrentLiability

Accountspayable

$__________________

Shorttermdebt

$__________________

Currentportionoflongtermdebt

$__________________

Incometaxpayable

$__________________

Accruedexpenses

$__________________
TotalCurrentLiabilities

$__________________
LongTermDebt

$__________________

TotalDebtandLiabilities:

$__________________

StartingaSmallRestaurant

48

CashFlowStatement

BeginningCashBalance

CashReceipts:
Cashsales

Accountsreceivablecollections

Other

TotalCashReceipts

CashDisbursements:

Inventory

Salariesandwages

Fixedassets

Rent

Insurance

Utilities

Interest

Advertising

Taxes

Otherpayments

TotalCashDisbursed:

TotalOperationalCashSurplus(Deficit)

AdditionalFunding(Repayment)

EndingCashBalance

StartingaSmallRestaurant

Month1
$_______

Month2
$_______

Month3
$_______

Month4
$_______

Month5
$_______

Month6
$_______

$_______
$_______
$_______

$_______
$_______
$_______

$_______
$_______
$_______

$_______
$_______
$_______

$_______
$_______
$_______

$_______
$_______
$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______

$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______

$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______

$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______

$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______

$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______
$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

$_______

49

FoodServiceSafetyConsiderations

FoodPreparationandService
Potentiallyhazardousfoodsarethosefoodsthatsupporttherapidgrowthof
bacteria.Theyincludebutarenotlimitedto:meats,beans,soups,seafood,rice,
stews,bakedpotatoes,sauces,gravies,hotdogs,pastadishes,eggcontaining
dishes,hams,spaghetti,chili,chowders,custards,creamfilledpastries,BBQ,
casseroles,pastaandpotatosalads,dressings,batters,sandwiches,manydairy
productsincludingwhippedbutter,etc.

PrepareallfoodsintheboothoraDECapprovedkitchen.
Useonlyfoodandicefromapprovedsources.
Avoidpreparingfoodstoofarinadvanceofservice.
Prepareandservefoodwiththeleastpossiblehandcontact.Use
suitableutensilsandgloveswhereverpossible.
Thawunderrefrigeration,incoldrunningwater(70Forless),aspartof
thecookingprocessorinthemicrowavewhencookingwillfollow
immediately.
Washallrawfruitsandvegetablesthoroughlybeforepreporservice.
Cookfoodwithoutinterruptiontothefollowingminimuminternal
temperatures:
Poultry165F
Pork150F
Otherpotentiallyhazardousfood140F
Reheatfoodrapidlytoatleast165F.
Keeppotentiallyhazardousfoodsat45Forbelowor140Forabove.
Useametalstemthermometer,withaminimumrangeof40Fto165F,
tomeasuretemperaturesofhotandcoldfoods.Don'tguess.
Useprechilledingredientstomakesalads,sandwiches,andothercold
foods.
Coolfoodrapidlyto45Forbelowbyusingshallowpans,witha
maximum4"sidewall,oranicebathandmixing.
Cookandholdpotentiallyhazardousfoodat140Forabovewhenever
possible.Avoidcookingandreheating.

StartingaSmallRestaurant

50


FoodStorageandDisplay

Providerefrigeratorstokeeppotentiallyhazardousfoodscold.
Insulatedcontainerswithcoolants,suchasicepacksordryice,maybe
approvedforsomefoodatonetothreedayevents.
Providehotholdingequipmenttokeeppotentiallyhazardousfoodshot.
Provideeffectivelyinsulatedcontainerstomaintaintemperaturesofhot
andcoldfoodduringtransport.
Storeallfoodupofftheflooronpalletsorshelving.
Storeallfoodsinoriginalorotherapprovedcontainers.
Coverfoodtoprotectitfromcontamination.Wraporprovidesneeze
guardsfordisplayedfood.
Provideindividualpacketsfordispensedcondiments.
Ropeofforotherwisesegregatebarbecueareasfromcustomers.
Sprinkleoneortwocapfulsofbleachovericetoprovideachlorine
residualof10PPMwhenstoringcannedandbottledbeveragesinice.

CleaningandDishwashing

Usethreebasinstowash,rinse,andsanitizeallutensils:
Washwithhotwateranddetergentinthefirstbasin.
Rinseincleanhotwaterinthesecondbasin.
Sanitizeusing50PPMbleachwaterinthethirdbasin.
Use1ounce(2tablespoons)bleachper5gallonsofwater.
Leaveutensilsinthesanitizeratleastoneminute.
Airdry.
Scrapesoiledutensilsbeforewashing.
Changewateroftentokeepitclean.
Uselargeenoughbasinstocompletelyimmerseyourutensils.
Cleanandsanitizecuttingboardsandotherutensilsusedonaproduction
basiseveryfourhours.
Wash,rinse,andsanitizecuttingboardsbetweencuttinguprawand
cookedfoodsordifferentkindsofrawmeats.
Usewipingclothswithsanitizertoregularlywipeworksurfaces.
Rinsewipingclothsfrequentlyin100PPMbleachwater(halfateaspoon
perquart).Changefrequentlytokeepclean.
Usechlorineteststripstochecksanitizingconcentrationsofwipingcloth
solutionandduringdishwashing.

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CustomerCommentCard

Howoftendoyouvisitthisrestaurant?______________________________________
Whatwouldyouchangeabouttherestaurant?________________________________
______________________________________________________________________
Wouldyourecommendthisrestauranttoothers?_____________________________
WhyorWhyNot?_______________________________________________________
______________________________________________________________________
Howwouldyouratethefollowingonascalefrom110?(10beinghighest)
Service12345678910
Food12345678910
Friendliness12345678910
Cleanliness12345678910
Pricing12345678910
Selection12345678910
Comments:__________________________________________________________

StartingaSmallRestaurant

52

AdditionalResources

FREEPUBLICATIONSFORALASKASMALLBUSINESSOWNERS

AlaskaEconomicDevelopmentResourceGuide(19thEdition,October2007)An
inventoryofprogramsandserviceswhichcanprovidetechnicalandfinancial
assistancetoAlaskacommunitiesandbusinesses.PublishedbytheAlaska
DepartmentofCommerce,CommunityandEconomicDevelopment,Divisionof
CommunityAffairs.Availableathttp://www.dced.state.ak.us/dca/edrg/EDRG.htm.
AlaskaSmallBusinessResourceGuideOffersadvice,contacts,andinformationto
helpAlaskabusinessownerssucceed.AvailableatanyFirstNationalBankAlaska
branchortheAlaskaSmallBusinessDevelopmentCenter.
EstablishingaBusinessinAlaskaReferenceGuide(13thEdition,March2006)
Providesinformationregardingcriticalstepstotakebeforestartingabusiness,such
as:license,regulatory,taxandlaborlawrequirements;businessassistance
information;financialinstitutions;andenvironmentalprotectionrequirements.
PublishedbytheAlaskaDepartmentofCommerce,CommunityandEconomic
Development,OfficeofEconomicDevelopment.AvailableonCDROMordownload
athttp://www.commerce.state.ak.us/investments/pdf/EstablishingABusiness.pdf.
StartingYourSmallBusiness(SpringSummer2007)Ageneralguidetostartinga
smallbusinessinAlaska,includinglendingresources.PublishedbytheAlaska
DepartmentofCommerce,CommunityandEconomicDevelopment,Officeof
EconomicDevelopment.See
http://www.commerce.state.ak.us/oed/small_bus/pub/StartingaSmallBusiness.pdf.
TheSmallBusinessResourceGuideAreferenceguideforsmallbusinessandself
employedtaxpayers.AvailablefromtheInternalRevenueServiceonCDROMor
downloadathttp://www.irs.gov/businesses/small/article/0,,id=101169,00.html.

OTHERPUBLICATIONS

AlaskaBusinessMonthlyhttp://www.akbizmag.com
9072764373editor@akbizmag.com
501WestNorthernLightsBoulevard,Suite100,Anchorage,AK99503

AlaskaJournalofCommercehttp://www.alaskajournal.com
9075614772jeff.jones@alaskajournal.com
301ArcticSlopeAvenue,Suite350,Anchorage,AK99518

StartingaSmallRestaurant

53


ALASKAREGIONALDEVELOPMENTORGANIZATIONS(ARDORs)

TheAlaskaLegislatureestablishedtheARDORprogramin1988tostimulateeconomic
development.TheARDORs:
o
o
o
o
o

Enablecommunitiestopooltheirlimitedresourcesandworktogetheron
economicdevelopmentissues
Developpartnershipsamongpublic,privateandotherorganizations
Offeratechnical,nonpartisancapacitytodevelopandimplementaneconomic
developmentstrategy
Oftenhaveextensiveexperiencewithfederal/stateprograms
Provideneededtechnicalassistanceviadirectlinkswithlocalcitizens.

AnchorageEconomicDevelopmentCorporationhttp://www.aedcweb.com
9072583700aedc@aedcweb.com
900WestFifthAvenue,Suite300,Anchorage,AK99501
BeringStraitDevelopmentCouncil(Kawerak)http://www.kawerak.org
8772192599webmaster@kawerak.orgP.O.Box948,Nome,AK99762
CopperValleyEconomicDevelopmentCouncil
http://www.alaskaeconomicdevelopment.org
9078225001cvedc@cvinternet.comP.O.Box9,Glenallen,AK99588
FairbanksNorthStarBoroughEconomicDevelopmentCommission
http://www.co.fairbanks.ak.us/mayorsoffice/economicdevelopment
9074591309kdodge@co.fairbanks.ak.us
809PioneerRoad,Fairbanks,AK99707
KenaiPeninsulaEconomicDevelopmentDistricthttp://www.kpedd.org
9072833335info@kpedd.org
14896KenaiSpurHighway,Suite103A,Kenai,AK99611
LowerKuskokwimEconomicDevelopmentCouncilhttp://www.lkedc.org
9075435967carl_berger@ddcalaska.orgP.O.Box2021,Bethel,AK99559
MatSuResourceConservationandDevelopmentCouncil
http://www.matsurcd.org
9073731062,extension108matsurcd@mtaonline.net
1700EastBogardRoad,Wasilla,AK99654
NorthwestArcticBoroughEconomicDevelopmentDepartment
http://www.nwabor.org/edu
8004781110dhamilton@nwabor.orgP.O.Box1110,Kotzebue,AK99752

PrinceWilliamSoundEconomicDevelopmentDistricthttp://www.pwsedd.org
9072222440pwsedd@alaska.net
2207SpenardRoad,Suite207,Anchorage,AK99503

StartingaSmallRestaurant

54

SoutheastConferencehttp://www.seconference.org
9075232310info@seconference.org
612WestWilloughbyAvenue,Juneau,AK99802

SouthwestAlaskaMunicipalConference(SWAMC)http://www.swamc.org
9075627380admin@swamc.org
3300ArcticBoulevard,Suite203,Anchorage,AK99503

OTHERSMALLBUSINESSRESOURCES

AlaskaDepartmentofCommerce,Community&EconomicDevelopment,Officeof
EconomicDevelopmenthttp://www.commerce.state.aka.us.oed/home.htm
o

SmallBusinessAssistanceCenter
http://www.commerce.state.ak.us/oed/smallbus/home.cfm
9072698104michael.hanzuk@alaska.gov
550West7thAvenue,Suite1770,Anchorage,AK99501

MadeinAlaska(MIA)http://www.madeinalaska.org/mia/

AlaskaManufacturingExtensionPartnership(AMEP)http://www.akmep.org
9072792637info@akmep.org
701SesameStreet,Suite200,Anchorage,AK99503
o

Ecommerceprogram:AlaskaManufacturing,Business,Industrial,and
TechnologyProjects(AMBIT)http://www.ambit.cc

AlaskaSmallBusinessDevelopmentCenter(SBDC)http://www.aksbdc.org
9072747232 430West7thAve,Suite110,Anchorage,AK99501
9074567232 604BarnetteStreet,Suite220,Fairbanks,AK99701
9074633789 3100ChannelDrive,Suite306,Juneau,AK99801
9072605629 43335KalifornskyBeachRoad,Suite12,Soldotna,AK99669
9073737232 201NorthLucilleStreet,Suite2A,Wasilla,AK99654
o

BuyAlaskawww.buyalaska.com
8004782332ansj@uaa.alaska.edu

ProcurementTechnicalAssistanceCenter(PTAC)
http://www.ptacalaska.org
8004787282(Anchorage)
8004781701(Fairbanks)

RuralOutreach9072747232

AlaskaVillageInitiativeshttp://www.akvillageinitiatives.com
8004782332cparker@akvillage.com
1577CStreet,Suite304,Anchorage,AK99501

AmericanswithDisabilitiesAct(ADA)http://www.ada.gov
8005140301

StartingaSmallRestaurant

55

KauffmanFoundation,EntreWorldhttp://eventuring.kauffman.org
OccupationalSafetyandHealthAdministration(OSHA)http://www.osha.gov
9072715152222West8thAvenue,RoomA14,Anchorage,AK99513

SCOREFreesmallbusinesscounseling.http://www.akscore.org
9072714022 score558@gci.net 510LStreet,Suite310,Anchorage,AK99501
SmallBusinessAdministration(SBA)http://www.sba.gov
8008275722 answerdesk@sba.gov
UniversityofAlaskaCenterforEconomicDevelopmentFeasibilityanalysis,
marketresearch,businessplanning,andbusinessimplementationassistancefor
nonprofitsandmunicipalandtribalgovernments.http://www.ced.uaa.alaska.edu
9077865444ancab5@uaa.alaska.edu
4500DiplomacyDrive,Suite507,Anchorage,AK99508

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