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BUSINESS PLAN OF OPENING A RESTAURANT

Opening a restaurant requires more than a passion for food
and the food industry. The process requires a detailed analysis of
the food industry, organized and well-defined strategies, and
financial backing. Developing a business plan for your restaurant
will force you to analyze every aspect of your business, from the
menu to the marketing. When completed, the business plan can
be used not only as a tool to capture investments, but a tool to
capture customers. From steakhouses to sub shops, more and
more restaurants are popping up in cities every day.

Since restaurants are such a common business venture,
people must enjoy running them. How do these benefits sound to
you? Be your own boss, have more flexibility, and sincerely enjoy
what you do. Not bad. However, all of those advantages come at
a price - building a restaurant from scratch isn't easy. It's a hard
and expensive process, and the reality is that many restaurants
fail in their first year of business. But rest assured, there are ways
to reduce the risk of becoming another statistic. Follow some of
these handy tips and you too can run a successful food
establishment.

MEANING OF BUSINESS
PLANNING
One of the most popular trends of this
developing economy and living standards is dining
out. More and more people prefer dining out on
weekends and even on regular working days. The
restaurant and food chain industry has grown up to
900,000 in past thirty years.
The overall revenue generated from this
industry is more than $600 billion and it gives
employment to more than 13 million
people making it the largest employer in this
world. The best thing about this industry is the
room available for growth. One can start his
restaurant and achieve success amidst all this
competition.

Work in a Restaurant
One of the best ways to reduce the risk of owning a failed restaurant is to
have some restaurant experience before you start. Many successful
restaurateurs have said that the best way to prepare for owning a
restaurant is by working in one, hopefully in an eatery similar to one you'd
like to open. You'll learn more than just how to serve food with a smile; you
can learn restaurant marketing, menu development, payroll, and other
significant components of the restaurant world. Working in the restaurant
industry and learning the basics is an important first step to becoming an
owner.

1. If you don’t have a thick skin and complete abandonment of political

correctness, don’t go near the kitchen. You will immediately learn there
that what you consider to be off-limits is just the baseline of someone
else’s sense of humor.
2. Bad tippers are the worst kinds of people, and are often terrible in
many other ways than just being cheap.
3. Correction, the worst people are those who don’t tip or tip very badly,
and accompany their financial insult with a snarky note left on the
receipt.
4. The pain of a bad seating chart is a real one, and not a single customer
will care or understand that you got slammed while someone else is
totally dead.
5. The difference between the people who have never worked in food
service, and the people who have, is always clearly visible. And a lot of
time it has to do with the basic degree of respect they give to the people
who are serving them.
6. Make back-of-house’s life easy, they will make yours easy. Working is
always about scratching someone’s back so they’ll scratch yours, and
you’d better not break that chain.
7. The only people you’re going to be able to hang out with — and often
date — are by default going to be other people in the industry. So you
better like the people you work with it, because no one else is going to be
coming out with you at 1 AM.
8. There is absolutely zero shame in eating the plate that gets sent back
barely-touched because someone either misunderstood what they were
ordering or is incredibly fussy about their perfectly-good food. People
who will judge you over shit like that are people who don’t know the joys
of a pristine plate of onion rings coming back to you when you are
starving.

9. The most important friend you will make is the one who will cover for
you while you eat, crouched next to some appliance in the kitchen. True
friendship is about taking the fall so someone can eat.
10. There are a lot of people who are going to look down on you for
working a restaurant, and treat you with massive disrespect, and you just
have to get over it and remind yourself to never be like that in your own
life

Know Your Target Market
Who do you see eating at your restaurant? Are you targeting the
family crowd, teenagers or seniors? Knowing your target market
before you start planning will not only help you solidify your menu;
it will help determine your location, décor and the overall
atmosphere of your restaurant. A family-style restaurant, which
caters to parents and their kids, may not appeal to seniors. On the
other hand, an upscale, quiet restaurant offering a two-hour dining
experience wouldn't be appealing to teenagers or families with
small children.

Regardless of your brand mission, identifying and gaining
the devotion of your target audience is the necessary
means to reaching your brand objectives.
You will find that knowing your target market inside and
out you'll have the information that you need to achieve
your brand marketing goals. You can do this by conducting
a market analysis. Depending on how much detail you

adult. Knowing your target audience you help you in solidify your message and increase your confidence in the steps to take to connect with that audience. That is why defining your target market will help to strengthen your brand's overall effectiveness. You don't want to market a product to a child that is most suitable for an adult.  What is the income level of your potential customer? Are you trying to market luxury items to them? You need to determine what your customers . The instructions below will walk you through the process of completing both of these steps. teenager.  What is the age of your demographic? Is it a child.  What is the gender of your audience? Is it male or female? You can't very well sell female products to males. get this . If you get one thing.the power of your brand relies on your ability to focus and craft a marketing message that will convert prospects into customers.put in the market analysis you have the capabilities of gathering enough data to learn what you need to know to reach your target effectively. There are two steps in lesson four of the Developing Your Brand's Strategy course. The first is to conduct an informal market analysis of your target market which I mentioned above and the second is to write a target audience definition for your company.

divorced. Is there a particular type of cuisine that you see yourself serving? Do you prefer pizza or seafood? Sandwiches or Chinese? . if you consider yourself a night owl you may prefer an after 4 p. dinner/bar crowd. which has full course meals at value prices. you service style will either be fast-food. college graduate? Is your product or service a luxury item or a need? Select a Service Style and Food Concept What type of restaurant do you see yourself owning? One of the first things you must decide is what specific service style you are interested in.m. If you are a morning person. you can narrow your style of food choices. offering full service meals with high-class ambiance and.can and cannot afford. On the other hand. which offers food types that range from burgers. hot dogs and sandwiches.  What is the family situation? Are they married. higher prices. Typically. widowed. or upscale. and that way you can better market to that demographic. in turn. midscale. After narrowing your establishment to one of these three options. fries. you may be more apt to owning a diner specializing in breakfast and brunch.

This blog will describe some of the main ways to serve food. . as well as explain some ways that you might not have heard of to add a little variety to your wedding.Choosing your food concept goes hand-in-hand with your choice in service style. There are several different styles of serving food at a wedding. Sometimes changing the style of food service can add enough originality to add a fun twist to a traditional wedding.

If your food choices are less expensive (not oysters.The most common serving styles are buffet and plated. but you do not spend as much on food because each guest receives a specific portion size. Buffet or self service . or a different design. If there are no servers.Large tables are arranged for guests to carry their plates from one end to the other. This is a great option if the guest count is large and you need to feed people as quickly as possible. this is true of staffing costs. guests can serve from both sides of the table. Plated or American Service – Waiters bring pre-plated guest dinner plates to each table. Stations – Stations are another style of serving that is similar to buffet style. A Mexican . This style requires some kind of place card and map for the kitchen staff. If there are different ethnic foods that are being served. Plated is often viewed as the more expensive route. There will often be different stations throughout the room with different foods. Waiters on one side of the table serving the food are optional. buffet might be the option for you. and is often noted on the place card with a chicken symbol. this is a great way to give people a taste of each person’s heritage. Guests do not have the chance to overload their plates with food that they often will not even be able to finish. or at the guest’s place setting at their table. They need to know who requested the chicken or the vegetarian option. or other rare and expensive options). Plates can either be at the buffet table.

Trolley service – When waiters bring around trolleys where the guests choose options from the trolley. Develop a Business Plan . Russian style – When the food is cut or carved in the kitchen and is replated to look whole when presented to the guest. and a seafood station. and an Italian station (the location of their honeymoon) are great ways for the guests to get to know the couple more. Presentation and portion sizing is done in the kitchen. This is often done for dessert courses in restaurants. Another option is having a pasta station. Family style – When the waiters bring large platters or bowls of food to each table to serve from one dish in the middle of the table. a meat station. This is often done with salads when the Caesar salad is dressed. garnished. French style – When the food is prepared at the table side.station (where the couple met). an Irish station (where the couple got engaged). and portioned in front of the guest.

Like any other type of company. this business plan is a road map. a description of your target market. and a potential exit strategy. Consider every aspect of your business and how it will affect your business plan. develop an outline of your business plan. Remember. It must guide you. an advertising and marketing plan. equipment and employee details. specific financial information and projections. This plan should include but is not limited to: the overall concept and goal of your restaurant. First. a restaurant will need a concise business plan. . your menu and pricing. It must also communicate to investors what you're doing and why they should invest with you.

or your business's 1.The order in which your plan is presented should be something like the following:  Mission Statement  Executive Summary  Product or Service Offerings  Target Market  Marketing Plan  Industry and Competitive Analysis  Pro-Forma Financials  Resumes of the Company Principals  Your Offering (what type of financing you're seeking)  Appendix (any other pertinent information)  Statement The mission statement is a concise. Mission .to three-paragraph description of your business objectives. one.

This part of the plan will include advertising and promotional strategies.guiding principles. In this section.to two-page summary of your business. you should state your unique selling point. Crocodiles And Moats to learn more about the importance of good advertising. Don't forget to include governmental and regulatory agencies. Potential investors will read this to decide whether they want to look at the rest of your plan. (ReadAdvertising. (Read Competitive Advantage Counts to learn the . along with any research that demonstrates how your target market will benefit from and consequently purchase what you're offering. 5. Industry and Competitive Analysis Include a complete and thorough industry and competitive analysis that includes all stakeholders in your business. which should show in detail how you'll reach your target market.) 6. Executive Summary This is a one. Target Market Present your primary and secondary target markets.  2. Product or Service Offering Create a section describing your product or service offerings in detail.  How to find the best credit card for your lifestyle. Marketing Plan Present your marketing plan. 3. or what separates your company from all the others in the industry that are otherwise just like it. 4. as well as how much you'll charge for what you're selling.

Your Offering Present what level of investment you're seeking and for what purposes you will use the funds. determine what it will actually be.)  9. You will want to emphasize how their backgrounds have prepared them to take on the challenge of running your new startup. (Read more in Evaluating The Board Of Directors. It should be typed. Financial Statements These must be complete. accurate and thorough.importance of being different from the pack. Do not handwrite changes or corrections. Once you've put together all of this key information. Each number on your spreadsheets must mean something. Resumes of Company Principals Include the bios and professional backgrounds of all significant employees of your business. Also. Use color graphics and pictures where possible. for instance. state the individual price per unit. Your income statement must reconcile to your cash flow statement.) 7. Don't estimate payroll. which reconciles to your balance sheet. margin aligned and neatly bound. if an employee's business background is in a significantly different industry.  8. If you're selling business units. you might want to emphasize how this can be an advantage instead of a detriment. make sure to present your plan professionally. .

If you are an upscale establishment. Step 1 Sketch a mock-up of the basic menu layout. is affordable within your budget. if your restaurant is family-friendly. bright colors will usually make the most sense.  For a fancy restaurant. Here are big-picture issues for you to keep in mind: Choose a color scheme that matches the style of the restaurant. At a restaurant with a young clientele or a zanier theme. At an all-day establishment. For example.  Order your menu logically. At a casual restaurant. a lot of thought will have to go into your wine list. and should be in accordance with the overall concept of the restaurant. and complements your restaurant's design concept. making the menus match (or at least complement) the restaurant itself is probably the safest bet. and relevant graphics. Revisit your business plan to make sure the menu is attractive to your target market. Your menu should reflect the order in which people actually eat the dishes you offer. warm. You will probably want to limit initial designs to just categories. you will need a kids menu. muted colors will look appropriately inviting.Create a Menu The menu can make or break a restaurant. Unless you’re not happy with the interior design or plan on changing it. dark colors will convey a sense of seriousness and professionalism. section titles. .

Lunch. Other subsection possibilities include: Step 2 List the food items and prices. you may need main sections (Breakfast. simple drinks (water. Traditionally. Salads). Dinner) and subsections (Fish. or people on low-calorie or heart-healthy diets will satisfy a greater variety of customers. Visually break your menu into sections. especially if the font is small and the rows are hard to follow. . If you offer a large variety of foods. Poultry. dinner. kids. You should either break  up your categories of food using large. The easiest way to do this is by writing columns (Food Item. if you offer many items. Pasta. simple headings or. vegans. and then dessert.  Consider offering diet-specific dishes. Description. Keeping variety in mind is generally a good idea:  Make sure there are a few economy dishes that are below the average price of the dishes as well as a few expensive specialty items. Price). lunch.this would be breakfast. Items specifically for vegetarians. by putting each on its own page. Vegetarian. A simple way to do this is to connect items with a series of periods (…). specialty drinks (wines. tea) are listed last. appetizers. soda. cocktails) are usually on a separate list or an insert. Make sure it’s clear which item belongs to which description or price.

You may want to make note of common substitutions in the menu. peanuts).) . lowsodium. ripe tomatoes. creamy aioli. The food items themselves should have descriptive titles.  The dish contains any ingredients to which some people are severely allergic (e. This can mean offering a discount on certain dishes at a certain time (preferably low-traffic times) or offering a smaller portion of a dish at a low price during that time. low-acid. grilled mushrooms.Consider offering specials during happy hour and for seniors.g. military  personnel. vegetarian. low-calorie [include an accurate calorie count]. Ex: “Quarter-pound all-beef patty with arugula. Ex: “Burger” doesn’t sound like much. like "Replace the baked potato with any other side for an extra $1. etc. and other groups. Find  out if substitutions are allowed. gluten-free. Look for variation in pricing for add-ons or special preparations. and pepper jack or Swiss cheese on a brioche bun." Step 3 Describe each dish. After that.” It's also wise to make note (either with words or a symbol) if any of the following apply:  The dish is hotter/spicier than most of the other dishes on the menu.  The dish caters to a group with special dietary needs (vegan. but “Juicy Burger with Arugula and Horseradish Aioli” will get your readers’ attention. include a brief description of all the ingredients in the dish. and how much they cost.50.

simple fonts for restaurants with a large elderly clientele. However. If you can afford to hire an excellent professional food photographer. the appeal of food is that it is three-dimensional. People buy more if they can easily read the choices. and is often warm to the touch.  Use larger. This is especially relevant for high-end restaurants. Food photography is notoriously difficult. and overall composition:  Keep your fonts simple. smells tantalizing. it’s best to leave each dish’s appearance to your customers’ imagination. which can be fun but tend to look unprofessional.Step 4 Add photos with caution. This time. the images may help make the food more appetizing. where taste and simplicity are at a premium. simpler design. . Don’t use more than 3 fonts on the menu or it will look busy. In general. margins. spacing. Don’t get carried away with funky fonts.  Err on the side of a shorter. focus on font. 5 Work out the finer details in a second round of mock-ups. meaning even the best photos will never do your menu justice.

. Go through the entire menu with a fine-tooth comb. Make sure the restaurant owner. like you don’t have much to offer in that category? Step 6 Select the final layout. "I want number 4. Do the pages look lopsided? Do certain sections look underdeveloped. Try to visually balance each page. You could also hire a professional editor. then look at their overall placement versus the remaining white space. 7 Proofread and print the final design. just in case you missed anything. manager and chef sign off on the design and content. Draw a square around each area  of content. Additionally. and the numbers continue chronologically through sections. have someone who isn’t in the business give you their thoughts.Menus with a very large selection often give each dish its own  number. as errors in the menu send a poor message about the quality of the establishment. This makes it easier for the customer to communicate with the staff (ex. what seems obvious to someone in the know may be confusing for the layman. please").

it may not be the best idea to open it in the vicinity of retirement homes. make sure your monthly rent is in-line with your business plan's projected profit so that you do not become building-poor. Once you find your location.Choose a Location and Layout The old saying of "location. In addition. It is important to find a location that has a continuous stream of traffic. You should already have a concept of your restaurant in your business plan. If you are opening a restaurant/night club. And don't forget to revisit your business plan to make sure you are close to your target market. bring this concept into . location" is vital in the restaurant world. the layout and design of the interior should be taken into account. and is in proximity to other businesses (especially if you're catering to the lunch crowd). location. convenient parking.

It involves looking at demographics. assessing your supply chain. for example:  Brand Image – Is the location consistent with the image you want to maintain?  Competition – Are the businesses around you complementary or competing?  Local Labor Market – Does the area have potential employees? What will their commute be like?  Plan for Future Growth – If you anticipate further growth. Here are some tips to help you choose the right business location.the design of the dining room. and much more. scoping the competition. Determine Your Needs Most businesses choose a location that provides exposure to customers. tips for Choosing Your Business Location Choosing a business location is perhaps the most important decision a small business owner or startup will make.  Proximity to Suppliers – They need to be able to find you easily as well. there are less obvious factors and needs to consider. Additionally. think about what's on your menu in order to determine what is needed for the food preparation area. understanding state laws and taxes. staying on budget. Will employees feel safe alone in the building or walking to their vehicles? . When designing your kitchen area.  Safety – Consider the crime rate. look for a building that has extra space should you need it. so it requires precise planning and research.

IT system upgrades.  Taxes – What are the income and sales tax rates for your state? What about property taxes? Could you pay less in taxes by locating your business across a nearby state line?  Minimum Wage – While the federal minimum wage is $7. and other government-funded programs specifically support small businesses. Is the Area Business Friendly? Understanding laws and regulations imposed on businesses in a particular location is essential. Women’s Business Centers. The Bottom Line . You can find out how property is zoned by contacting your local planning agency. Evaluate Your Finances Besides determining what you can afford. View the Department of Labor’s list of minimum wage rates by state. Zoning Regulations – These determine whether you can conduct your type of business in certain properties or locations. and so on.  Government Economic Incentives – Your business location can determine whether you qualify for government economic business programs. Include costs like renovation. decorating. Many states offer online tools to help small business owners start up and succeed. As you look to grow your business. such as state-specific small business loans and other financial incentives. Local community resources such asSBA Offices. many states have a higher minimum.25 per hour. Check what programs and support your state government and local community offer to small businesses. Small Business Development Centers. it can be advantageous to work with a small business specialist or counselor. you will need to be aware of other financial considerations:  Hidden Costs – Very few spaces are business ready.

Talk to other business owners and potential co-tenants. Consult the small business community and utilize available resources. such as free government-provided demographic data.Do your research. to help in your efforts. .

talking to other restaurant owners can help you project your expected start-up costs.Get Funding (Investment) Your business plan will help you recognize how much money you will need to start your restaurant. liquidating assets or using them as collateral for a loan. . or encouraging a family or friend to become a partner. There are numerous ways restaurateurs raise capital to start their business. including taking advantage of government programs that cater to upstart small business owners. If you are unsure about how much money you will need upfront.

culinary skill and passion may catch an investor's eye. Get Educated Education. there was a moment when the forces behind it struggled for funding. Dedication. "You open a restaurant with your . Whether you're an accomplished chef. Young restaurants have a notoriously high failure rate. who's opened six acclaimed Boston restaurants in addition to his flagship Clio. To find out the secrets to securing funding. is a strong first step. but that startup check won't be written until you've demonstrated that you can run a viable business. it's important to remember one thing: a restaurant is first and foremost a business. Serious Eats talked with a couple of our favorite restaurant owners to get their advice. Chef Ken Oringer.Steps To an aspiring restaurateur. and no investor wants to put money against the odds. the challenges of funding a business can seem overwhelming. formal or otherwise. But for every thriving restaurant out there. earned a degree in business management before he set foot in the kitchen as a chef. a seasoned manager or part of a third-generation family restaurant.

food. Better to learn it yourself. labor. Oringer recommends at the very least taking a few business courses at a local college. Even without a full formal education. It doesn't matter if you're the best chef in the world if you don't have a viable business on your hands. "not your heart." he said. how many rolls you'll pile in a bread basket." Chef Donald Link of New Orleans earned "most of a finance degree" before opening Herbsaint and Cochon. If you don't apply a little common sense.head. "Restaurant margins are extremely small. equipment and all of that as a percentage of total sales. and costs. and how . you're in trouble. That doesn't just mean a few back-of-the-napkin scribbles about average checks and covers. Until you've thought about how many hamburgers you need to sell at lunch to break even." he says. "you'll be paying someone $200 an hour to run those areas for you. "If you don't have a basic sense of law and contracts and accounting." Do Your Homework It's critical to crunch the numbers and do the legwork on your project before looking for money." Spend the time to accurately gage the funds you need. whether or not you'll close over holidays. looking at projected sales. "You've got to take into account rent." said Chef Link. profit.

have to resign the lease.many napkins each customer will use. that adds an enormous amount you'll have to pay back. and find that the landlord has tripled the rent. particularly with regard to the restaurant concept. you haven't adequately thought it through. You need to think all these things through before you get in a room with investors. You've got to consider—will the concept still be able to make money ten years ." Oringer agrees on the importance of long-term planning. you may find it hard to think past the first year. but it's critical to think further down the road. If you're looking at a $2 million restaurant and you're dealing with 15 percent interest. interest calcuations. "You have to make sure your idea has legs. "Sign the longest lease you can." he says. earning forecasts. "You don't want to leap on the latest trend." Demonstrating profitability with this sort of rigor will give investors confidence that they want to take a risk on you—and give you the confidence to present yourself well." says Link. Says Oringer: "You need a menu breakdown. a pro forma. "The last thing you want is for your restaurant to take off. Think Long-Term and Prepare For the Worst While in the early stages of designing your restaurant.

" . the less likely you are to bury yourself in debt you can't get out of.from now?" Thinking ahead is essential for a fully formed business strategy. but in the beginning. "Over time. my father-inlaw. Do you have enough funding to ensure that the restaurant can stay open even without a single customer walking through the front door for the first three months? The first six months? Spread the Risk Unless you've got a tidy chunk of change tucked away. Even the considerable upfront costs you'll project and account for are likely to balloon out of control faster than you anticipate. Even before you get to that point. and together. my father-in-law and I bought the others out. it just made sense to go in on it together. and two others. they took out a loan to finance the restaurant. So the more widely you spread the risk. a good business plan should factor in the worst case scenario. "When I opened Herbsaint." Each partner made a contribution. "there were four of us—myself." said Link of his highly regarded New Orleans restaurant. funding a restaurant is the quickest way short of an Atlantic City bender to send yourself spiraling into debt.

Choose Your Partners Wisely That said. not every partner is a good partner. you'll ultimately want to retain control. you'd better trust the people in it with you." Link has first-hand experience of what bad partnerships can do. total autonomy. where he was eventually pressured to invest five times more money than was agreed upon. It means that. It was worth the initial risk to keep the restaurant all in our hands. "Know how everyone's going to contribute. . "It's like a marriage. can be critical to getting a restaurant off the ground. we're making all the money ourselves." Outside Investment is Good… But Autonomy is Often the Goal Of course outside investment." he told us." "When we opened Cochon. and eventually. "If you're going to put everything in your life on the line for a restaurant. "At this point. "I learned one important thing at that restaurant: Choose your partners wisely. Make sure everything's cut and dry. when you can secure it. He made the mistake of joining as a third partner in a Northern California restaurant." said Link. Make sure that you share the same goals and visions." says Oringer of opening his later restaurants. But keep in mind that when you're the one devoting your life to launching the restaurant. "we didn't want outside investment. "we pay back our investors within a year to fifteen months. Link walked out. early in the life of the restaurant." Link said of his second New Orleans restaurant.

investors now trust that we'll get their money back to them. we've bought the building." says Oringer. "given the state of the economy."At this point. Since we've done that in the past. "in order to pay back investors as quickly as possible. When you spend 10 years pouring your heart and soul and entire life into a restaurant." He adds." Establish A Good Track Record "It's worth it to bite the bullet and not make much money at first." Now that's the sort of confidence you want to instill. . too. our investors now see us as a safer alternative to the stock market. you want it to be yours at the end.

Be Familiar With Safety Regulations .

make sure you are aware of the food safety regulations. Food safety regulations apply to each stage of food and beverage production. If you are considering starting a business in the food and beverage industry. from processing and manufacture to distribution.Restaurants are regulated and subject to inspection. or you may face fines or prosecutions. Most regulatory agencies will work with new restaurateurs to help them become familiar with what they must do to meet the necessary legal requirements. and failing to be up to speed with these regulations could be detrimental to your company. Food safety regulations Food safety standards outlined by Food Standards Australia New Zealand (FSANZ) apply to every business involved in the handling of . You need to understand how your business can meet your obligations and comply with these regulations.

plant and human health status. As a food and beverage business owner. the Food Regulation 2006.  food safety regulations from your local government. seafood and eggs. Food safety compliance . in Australia. including food safety for restaurants and food retailers. you must be familiar with:  Queensland food safety legislation.food for sale. You can get more information on food safety in Queensland from:  Department of Agriculture .provides import and export inspection and certification to help Australia keep its highly favourable animal. and issues with food labelling and food tampering issues. which applies to businesses selling or supplying liquor  Australian wine laws. which apply to wine producers and distributers. the Food Production (Safety) Act 2000 and the Food Production (Safety) Regulation 2002. The only exception is businesses involved solely in primary production that do not process their products or sell them directly to the public. dairy products. Safe Food Production Queensland manages the operational aspects of food safety through industry-based food safety schemes for meat. or the sale of food. including the Food Act 2006.provides accreditation and certification for food safety systems in Australia and New Zealand. and wide access to overseas export markets  JAS-ANZ . Queensland Health has overall responsibility for food safety in Queensland. including training requirements and ratings systems  liquor licensing.

You must be able to verify the safety and quality of your products to export markets and other businesses that you supply your products to. To make sure you are familiar with food safety regulations:       read Fact sheet 5 .2. find out what other restaurants are paying their employees so that you can be competitive in the job market. make sure your employment ads specifically state what you are looking for in an employee. as your customers will expect that your food products are safe. 1. In order to get and retain qualified employees. . without spending too much on payroll.1  Hire Employees One of the biggest challenges restaurants face is a lack of qualified labor.a guide to Standard 3. and clearly outline the job's duties and responsibilities.Producing safe food is essential to your business's success. In addition.6MB) find out about food safety compliance by reading Fact sheet 26 complying with a food safety program read about becoming a food safety supervisor find out about food handling skills and knowledge read Food Safety Programs .a self-assessment guide to the Food Safety Standards (PDF. such as manufacturers. retailers and fast food franchises.general requirements for all Queensland food businesses complete Know your food business .

Pay is relatively low in the restaurant business due to the low margins of the business. Others have drug and alcohol problems. etc.) Be forewarned -. Some have criminal records. Other restaurants will try to hire away good people.) may have little education. Restaurant work. Areas with low unemployment and few students find it harder to fill restaurant positions. 2. These factors make it hard to attract and retain top people 1. A coffee shop will not have an Executive Chef nor a Sommelier (wine manager. Turnover is notorius in the restaurant industry. keep your eyes and ears open. while managers and Executive Chefs are at the top. everyone has a title and a role to play. 5. dishwashers. The staffing structure will depend on the concept of your restaurant. So.Restaurant Staffing For the most part. Unless you have a large family and they all intend to work at the restaurant. 3. the restaurant business is hierarchical. 4. . especially entry positions in the kitchen and in the front of the house are usually filled with people in their late teens and 20's who usually leave for better positions or to continue their studies.staffing your restaurant and keeping it staffed will be one of your most difficult and time consuming tasks. Busboys and dishwashers are at the bottom. you'll have to be hiring part-time and full-time help. People who will work for the low wages you will most likely offer for some of the most menial positions (bussers. Like the army.

So. and there is no substitute for that. Remember staff birthdays and serve a cake before the restaurant opens. Empowering Employees Employees who are encouraged to make decisions by themselves when on the job and who have the authority to solve problems and keep customers happy are generally more satisfied with their job than employees who must always seek out a manager. Incentives are a fun way to drum up healthy competition between employees and to get sales up. Give out coupons for free movies to employees who never miss their shifts. look for people who like to think on their feet. Offer a free meal to the person with the highest weekly sales.Benefits & Incentives – Key Tools for Attracting & Retaining Good People There's a lot of turnover in the restaurant business. the employee who sold the most bottles of that wine would earn a gift certificate to a favorite store. It says that you care. more efficient staff. Even the smallest positive gesture will go a long way. are decisive and take initiative. You'll end up with a happier. offer employees benefits and incentives that will make them feel appreciated and much more inclined to uphold the highest standards at all times. Managers and owners who empower their employees have lower turnover and higher customer satisfaction. . Like a spouse or child. when interviewing and hiring staff. especially a new restaurant. often run into trouble sooner rather than later. a different wine would be highlighted. Staffing the Front of the House Owners who are not on site and try to manage from afar. so to minimize it. restaurants require a lot of personal attention. At one restaurant where each week.

They bring the dirty dishes to the kitchen to be washed. Rather. responsible for recipe and menu creation. Wait staff If the restaurant has table service. Kitchen Staff Executive Chef The Executive Chef is in charge of a kitchen. White tablecloth restaurants and many table service eateries do not have cash registers. The chef also “manages” the staff of cooks. butchers. you will need to have waiters and waitresses or servers. you may have servers and runners. and everyone else . One will open the restaurant and the other will close. they will hire one or more managers. staff training. and overseeing all cooking. bringing customers the food they ordered directly from the kitchen. If the concept is more formal. There may be a General Manager for the restaurant who is responsible for all restaurant operations and who works closely with the Executive Chef. Bussers Bussers are the folks who clear tables and re-set them. they will usually split the shifts.Management If the owners are on site. There may also be an Assistant Manager or two depending on the size of the restaurant and the number of hours it is open. If the owners need additional help. bakers. for example. Cashiers Whether or not you'll have dedicated cashiers manning cash registers will depend on the type of concept you choose. Runners Runners work under the servers. they have computer terminals with cash drawers that process credit card transactions located at service areas in the dining room.

the line cook works incredibly hard and is exposed to heat. a line cook will be assigned to a station such as sauté or fryer or grill. The line cooks usually report to the sous chef. Prep Cooks A prep cook spends their time at work prepping for all of the dishes that will be served during meal service. whether it is breakfast. Often. each in charge of his/her own area. Sous Chef A Sous Chef (pronounced "sue") is literally. This person needs to be organized and quick. Line cooks often train working at the cold station. stress and sharp knives during much of their shift. A very demanding position. salads and desserts. This person must be very fast and accurate and be able to keep focused. determines food cost and is in charge of purchasingfor the restaurant. with the proven mastery skill and understanding of all stations in the kitchen. Some cooks rotate stations each shift. He/she is below the sous chef in rank. Line cooks may do all their own prep in smaller restaurants. as well as have top cooking skills. as they support the rest of the cooks. The chef must know how to manage the bottom line. lunch or dinner. slicing. in French translation. Prepping includes washing. Pastry Chef The pastry chef specializes in pastry and baking and is in charge of all .involved in the preparation of food. trimming and weighing. while some remain at the same station until they have mastered that skill and are interested in learning another. or garde manger. where they prepare and plate cold appetizers. This person must be a confident leader. Some larger restaurants have more than one sous chef. He/she spends more time cooking than the executive chef and overseeing the daily happenings in the kitchen. The chef writes the menu. the “under” chef. This chef is just below the Executive Chef in rank and is in charge of food production. Line Cooks A line cook works on the hot line of the kitchen (where the food is cooked).

Dishwashers A dishwasher washes dishes and pots and empties the trash. This is one of the most demanding jobs in the kitchen and the least glamorous. This person needs to be reliable and strong! .pastry production in the restaurant. Many chefs would attest to the fact that the dishwasher is the most important employee in a restaurant. A reliable dishwasher will work fast and hard and be able to keep up with the piles of dirty dishes and keep the trash cans emptied. since the place will come to a standstill if there are no clean plates or pots. Smaller restaurants may not have a pastry chef. and may just buy desserts from an outside bakery.

Grass roots advertising.com. Ask your customers how they found out about you. Every business needs a comprehensive marketing plan. so that you can record where your advertising and marketing dollars are best spent. such as setting up tasting booths at local events or having an event at the .Advertise and Market As with any business. and television and radio advertising. ads in coupon clippers. After determining your marketing budget.fooddigger. price out billboard advertising. "build it and they will come" won't have customers breaking down your door. and restaurants are no exception. Get noticed online by posting your restaurant on sites such as www.

can be an inexpensive way to achieve positive word-of-mouth. then sponsoring a local softball team or athletic tournament makes sense. . You should already know who your target audience is as outlined in your restaurant business plan. Think about your clientele and where they are most likely to see your advertisements. 2. even coupons are all ways to advertise a new restaurant. Restaurant advertising comes in many forms. season to season. Know where to advertise. quick meal or a leisurely relaxed dinner. Radio spots newspaper ads. Difficulty: Average Time Required: On Going Here's How: 1. TV commercials. which are more expensive than newspaper ads. advertising in your local chamber of commerce guide. or other regional travel guides is a good investment. you will need two decisively different advertising plans. Advertising plans vary from year to year. Who does your restaurant appeal to? Families? Career professionals? Those looking for an easy.restaurant benefiting a local charity. Create a strategy to reach potential restaurant customers. Your strategy will depend on your budget. If you hope to lure in families on vacation. You can hire a PR agency to help you get your message out or you can do it yourself. TV commercials are more expensive than radio ads. If you operate a sports bar and grill. Know your audience. 3. Advertising is not a one-size-fits-all deal. I you have a busy summer season and less business in the winter.

radio commercials and newspaper ads can be very expensive and may not reach your target audience. But they are going to perk up at the sound of a kids-eat-free on Tuesday advertisement. including wine tastings. Conversely. there are several ways to advertise on a budget. including taking advantage of social media sites like Facebook and Twitter. Find plenty of ideas to keep business coming in all year round. from the busy holidays like Valentines and Mother's Day to the slow seasons in between. . Here is a complete guide to restaurant advertising all year long. No matter if you are getting ready to open a new restaurant or if you are looking for a way to promote your existing restaurant. Clearly state your message. single men looking for a night out are not going to flock to an establishment that offers free coloring books and crayons with kids meals. Advertising all Year Long Your restaurant advertising and marketing tactics should change with the seasons. putting coupons for free kids meal in the Sunday paper would be a good move. Advertising on a Budget Traditional methods of advertising. What sets you apart from your competition? Do you have aspecial menu for kids or a sports night buffet? Do you offer the lowest priced burger town? You need to reach your target audience and leave them with a message they will remember.If you want to bring in families. 4. drink specials. and catering. such as TV. You will also find advice for keeping to go menus updated and when to begin advertising for different seasons. Busy moms are not likely to care if you have big screen TVs with four different ball games going at once.

Promotions can be traditional. all year long. such as a name-the-microbrew beer contest. Use social networking. Restaurant promotions can range for a nightly happy hour to an annual customer appreciation day. such as Facebook and Twitter as a free way to tell customers about your restaurant promotions.Restaurant Promotions Restaurant promotions are great because they can run daily or weekly. . such as two-for-one dinner specials or out of the ordinary. They offer the perfect opportunity to show customer appreciation and bring in some extra business at the same time. with drink and dinner specials.

More Information Owning and running a restaurant is not for everyone.restaurant. And. However. Visit the National Restaurant Association's Web site at www. . as with any new business venture.org for more information. there are many experts that can help you be a successful restaurateur. there is a lot of work involved. Trade associations are an excellent source because they can give you specific information about your particular market niche. it is important to discuss business options with an attorney.

This allows businesses to adjust the pricing of menu items according to their customers’ disposable income levels.TARGETS FOR BUSINESS Your marketing strategy should attract the customers that you want in your restaurant. However. As opposed to mass marketing. target marketing focuses on attracting a specific type of customer. but it is important to tailor your promotions to these specific consumer groups. Market Segmentation You probably already know what kinds of customers you want in your restaurant. so you should make sure to gear your promotional techniques toward the segments you want. Different market segments – or groups of customers with similar characteristics and needs – will respond to different types of marketing strategies. you will need to target customers based on their income. which aims its advertising and promotions to a general majority of consumers. Usually. you may also choose to develop promotional strategies that target one or more the following segments: .

Families and children . Seniors . students and young adults . Always remain up-to-date . Attracting the Wrong Customers Even if your business is already in operation. your marketing techniques are failing. Empty nesters Tourists Vegetarians Eco-conscious people Business people Sports fans Gay community After-bar crowd Happy hour crowd Lunch break crowd Music lovers You can choose the best promotional techniques for your restaurant by honing your marketing strategy to attract specific groups of customers like the ones listed above. Perhaps you are not in the right location to attract the kind of customers you want. If not.              Teens. you need to keep assessing your customer base and ask yourself if your marketing is really pulling in the customers you want to target. Your strategy could be problematic for one of the following reasons: Location is off.

For example. For example. Keep in mind that demographics. attitudes and trends in your area can change. and then marketing the new products to the students with coupons or other promotions. It is possible that your concept is failing to attract the customers you want.with the demographics. Cheese targets children and families. It is not necessarily too late to make some changes. . This problem could be fixed by adjusting the concept to include frozen yogurt products. » Learn more about restaurant demographics Concept misses the mark. Attracting the wrong demographic. an ice cream shop that is run near a university in hopes of attracting the student population may overlook the recent frozen yogurt craze that is sweeping through campus. Chuck E. This has caused numerous problems. and your restaurant needs to change with them or move to another place. but in recent years has seen a lot of teenage customers at the restaurants’ arcades. It is possible that you are accidentally attracting the wrong customers.

Any time you choose to target a new segment with your marketing. For example. you could try targeting a secondary segment of the population.including several brawls that have broken out. Avoid customers that clash. . like refusing service to anyone that is under the age of 18 without a parent or guardian present. Or you could try to attract multiple types of customers at once. driving away the very families that the restaurant hopes to attract. It is probably not wise to begin marketing yourself to families and children. Cheeses have chosen to implement new policies. if you run a formal restaurant that is known for its elegance. you may be attracting a lot of empty nesters. since the associated noise and atmosphere could drive away your existing business. since many segments go hand-in-hand and would complement each other well as customers. To combat this problem. Choosing Complementary Segments If your business is attracting many of the customers you want but is still struggling. Some segments may not go well together. You could focus on one segment during the lunch hour and another during dinner. be sure to consider the consequences on your existing customer base. several Chuck E.1 It is also possible that you are using the wrong promotional techniques. Always make sure that you are using the right promotions for your target market.

your restaurant will be far more likely to succeed.If you have the right location and concept. a good target marketing strategy will make a considerable difference in your profits. . and you choose a good target market and the best promotional techniques for that segment. When accompanied with proper restaurant management and operation.

com www.com www.in .entrepreneur.com restaurants.info/ www.restaurantindia.com www.com www.BIBLOGRAPHY www.com www.about.restaurantresearch.uk www.wikipedia.foodservicewarehouse.legalzoom.co.tripadvisor.wikihow.