you ready for the challenge?

Firstly you need to

be passionate about your business. If you are not passionate about coffee, don’t get into the
coffee business. There are many days when you will question why you choose this route and you
will need to be able to fall back on this passion.

Are you prepared to work harder and longer than you ever have before? During your first few
years of operation you will invariably find yourself working sixteen hours per day, six or seven
days per week.

Are you a multi‐tasker? Few industries have as many moving parts. As a restaurateur you will
have to wear many different hats. It is not just about serving great food; you will need to
understand Marketing, HR, Finance, the Law etc.

Finally don’t forget that the nature of the industry means that you will be providing
entertainment for people on their time off, so you will find yourself working while your friends
are playing.

A Scary Stat

Restaurants have the highest attrition rate of any type of business. According to latest figures
only 34.2% of hotel and catering businesses started in the UK in 2003 have survived.

How much profit should I expect to make?

A well run restaurant or cafe typically make between 5% and 8% profit.

While every restaurant is different, typical after tax sales are distributed inline with the graph
below.

Franchise or Not

This is probably the number one question that we get asked by people thinking of entering the
food business? Are you better off taking a franchise in an already proven concept or should you
develop your own concept?

In simple terms franchising involves paying someone else for the right to their concept.

So what are the advantages and disadvantages of franchising?

The Advantages
An Instant Business ‐ A restaurant franchise offers you an instant business. You don’t have to
worry about the name, the décor, the menu or the marketing. It’s all done for you.

Support ‐ A restaurant franchise comes with support from the head office. If you have questions
or concerns, you can always ask them. This can be very helpful for new restaurant owners, who
don’t always know what to do when they encounter certain problems.

Better Buying Power ‐ Restaurant franchises have bigger buying power. Food and other
inventory can often be purchased far cheaper than your local independent restaurant.

Name Recognition ‐ Name recognition is a huge benefit of a restaurant franchise. You don’t
have to worry about start‐up costs for advertising.

The Disadvantages

Money ‐ (or lack of) is often major drawback of buying a restaurant franchise. Many of the
bigger restaurant chains require you to have significant assets, before they will consider letting
you buy into their company.

Lots of Rules ‐ In order to maintain a certain quality of customer service, as well as continuity at
each location, franchises have many rules and regulations that must be followed. Everything
from the seating plan of the dining room, to the colour of the bathrooms can be subject to
specific rules. Make sure you are okay with all the rules beforehand.

Lack of independence ‐ Basically you will have to do things their way. You have no say in the
menu, the décor, or the signage of your restaurant. If you have a certain theme or concept in
mind, it may not mesh with a restaurant franchise. You may find yourself resenting the
restrictions placed upon you.

Get some experience working in a restaurant to learn the “ins and outs “of the business before
investing your time and money in your own restaurant. Learn from other people’s mistakes

Royalties ‐ On top of the upfront franchise fee, you are also expected to pay royalties. This
covers the advertising, training, and other support the restaurant corporation gives you
throughout the year. Franchise royalties are usually between 3% and 8% of turnover.

Exit Strategy ‐ When you come to sell, the franchisor will have the right to vet and potential new
franchisees.
Limited Growth Potential ‐ If you develop you own concept, perhaps it could one day be
franchised itself. This is where the real money is in the industry. Can you take an idea and not
just build one location put perhaps dozens or even more. Perhaps you could become a franchisor
yourself.

Essentially, deciding to either buy a restaurant franchise or create an independent restaurant will
depend on your wallet, your experience, the time that you can commit and your personality. If
you are comfortable working with a team and being told what and how to do something, a
franchise may be the right move for you. However, if you are starting your own restaurant to get
away from people telling you what to do, an independent is probably a better choice for you.
Admittedly we are a little biased, but if you are confident that you have a good idea you could
most probably get it up and going for less money than talking a franchise. What’s more it will be
all yours.
NEXT UNIT

How to decide on a concept

What is going to be you’re (USP) Unique Sales Position? Is there a niche in the market? I spent a
lot of time in the US and I loved the seafood restaurants there. Great Crab houses etc. Would a
seafood chain work in the UK? Remember niche concept work best in bigger markets.

Avoid gimmicks and theme restaurants. Analysts say that most people often only visit theme
restaurants once and don’t come back. They have a kind of being there done that attitude to these
establishments.
 See what’s hot in other markets for inspiration. Be first to market. Check out our BLOG to keep
up with what’s hot or explore these two great resources for a little bit of inspiration:

Always compete on great service. Service doesn’t really have a cost. And the smaller owner run
business can always out service the big chains.

Also look at what the big chain restaurants do, particularly because they spend a fortune on
expensive market research and then implement it.

If you are just at the idea stage why not take a grand tour, this is the fun part. If you are thinking
about opening up a BBQ Restaurant, take a trip to the southern states of America. Rent a car and
drive around, see the best and get ideas, collect sample menus and memorabilia and take lots of
photos. Maybe even twin your new restaurant with one that you meet on your travels.

How do you decide on a location?

Location, location, location, it can make or break a restaurant. Finding the perfect location is a
time‐consuming and tedious process, but it’s essential that you give it all the attention it
deserves. Do not rush this decision. It is the most important one that you will make. Wait until
you have several prospective properties and then weigh your options carefully. Remember, once
you sign the lease and opened your restaurant, the one thing that is almost impossible to change,
is your location.

You need to consider the following factors when choosing a location:

 Visibility and passing traffic (Foot and car)

 Parking
 Demographics
 Potential for outdoor seating
 Zoning
 Refurbishment required
 Freehold or leasehold
 Competition
 Complementary businesses located close by
Don’t just get stats from the yellow pages or the last census. Pound the pavement, check pricing,
service, style, when are busy, when are they not? Are there enough potential customers in the
specific segment you are targeting to ensure you get your own share?

Finally don’t be afraid to open right next door to your competitors. In most businesses, it is best
to stay as far away from your competitors as possible. But in the restaurant business, it is often
best to stay as close as possible to your competitors, as your potential customers may have
already decided that they are coming to this part of town to eat.

Should I buy or lease a location?

A key decision is whether to buy or rent property. For the new restaurant owner, the investment
necessary to buy a property may be the deciding factor in this question.

Buying a location is a major and typically a long-term commitment usually reserved for someone
who has significant available capital.

The advantage to leasing is that it provides you with an opportunity to launch on a smaller
budget. It may also offer an easier exit strategy if things don’t work out.

The major advantage to owning a location is that you will not have to worry about a rent hike. In
addition, as an owner you do not have to work within the parameters as set up by a landlord,
giving you more freedom to do as you like with your property.
The final consideration when buying any real estate is the projected value of the property. Will
the price of the property appreciate or depreciate in the coming years? While the goal of most
restaurant owners is to build a successful eatery, in the past the acquisition of prime real estate
made ownership very rewarding.

Never think that the cash in your register is yours. It isn’t, it belongs to your suppliers, your
employees, the government etc. Always pay yourself last. In many instances the owner is the
first person to take cash out of the till and at the end of the month there is no money to pay
anyone else.

Practicalities of renting premises

Before renting a location it is critical that you consult the property experts. A chartered surveyor
will be able to advise you on the best sort of deal to suit your business needs and a solicitor will
be able to advise you on legal points arising from the lease, the legal agreement between you and
the landlord.

Think carefully before signing any agreement. Do not sign anything unless you completely
understand it and agree with it.

Here are some of the things you will need to think about:

The rent ‐ Not only what it will be when the lease begins, but how much it could go up by.
The length of the lease ‐ How long you want to commit yourself to renting the premises.
Remember that unless your landlord agrees that you can give up your lease or transfer it to
someone else, you will have to pay rent for the whole period of the lease, even if your income
dries up. Leases typically have agreements of between one and 25 years. Don’t lock yourself into
a long lease, at least not the first few years that you are in business. If your restaurant fails you
don’t want to be locked into four more years of rent that you cannot pay.

Quitting ‐ How easily could you give up renting if you no longer need your premises or run into
financial difficulties? Will you be able to transfer the premises to someone else? Will the
landlord allow you to give up? Do you have the opportunity to ‘break’ (end the lease) at certain
intervals – this would allow you to choose whether or not to continue renting the property;

Insurance ‐ The landlord may expect you to ensure the premises yourself, or to pay for the
insurance if the landlord takes it out.

Repairs ‐ Are building repairs included in the rent. If you make significant repairs to the
plumbing or heating, then ask if they can be deducted from your regular rent. Most landlords
would rather give free or reduced rent one month than shell out cash to make repairs.

Service charges ‐ On top of the rent, the landlord may charge more for services such as cleaning,
heating and lighting. These may be more expensive than providing them yourself.
Guarantees ‐ The landlord may ask you for a financial guarantee, or may ask you to provide a
guarantee or anyone who takes over your lease. If things go wrong, a personal guarantee could
bankrupt you and make you homeless.

Protection when the lease ends ‐ Will you have the right to renew the lease when it comes to an
end?

Restrictions ‐ Imposed by the local authority that may affect your business e.g. delivery or
loading times rubbish disposal, parking, noise, lighting, litter. Also does the premises have an
existing licence to sell alcohol?

The landlord ‐ Is he or she someone you want to have a working relationship with?

The History of the property ‐ Find out the history of the property and whether any other
businesses have failed there and why. Was the property a restaurant before? Ask neighbouring
tenants for their input.

Will the space work for a restaurant. – Is there suitable ventilation, services, power etc?

Finally before renting a property, make sure you can get planning permission to make any
changes you need to the property.

Associated with startup costs are finding reliable suppliers. Try and negotiate credit terms so you
are not always paying for your products up front.

Designing your restaurant

 If you have the
budget, use an interior designer. Make sure they have experience designing restaurants and have
a portfolio of their work to show you.

Emphasize to your interior designer the need to adhere to your budget and that your restaurant
should run smoothly and look good.

Create a design that facilitates the movements of your employees in and out of the kitchen. This
will help create seamless service.

Also can you incorporate an open plan kitchen? The public likes to see who is preparing their
meals. This design also brings chefs out of the kitchen

And don’t just design a kitchen that works at the busy times. Make sure you can operate the
kitchen just as efficiently when you are quite and require less staff.

Designing the menu

What dishes should you offer and what should you skip?

The ideal restaurant menu offers a balance of unique dishes and old favourites.

It also has the right food cost to maintain profits and can be easily reproduced in the kitchen
during a busy dinner rush.
 Avoid food fads on your restaurant menu
You need to balance high and low food costs to for a reasonable profit margin. 

Unless you plan to get a Michelin Star, ensure your dishes are easy to prepare. Any menu items
that have over fussy presentations can potentially bog down the kitchen staff during a lunch or
dinner rush.

Items on a restaurant menu should be versatile. Cross-utilization of menu items keeps food
spoilage down and allows you to use ingredients in more than one dish.

Update your menu periodically and remove items that aren’t selling.

What are the costs involved in setting up a restaurant?

There is no cast iron answer to this question as each restaurant operation is different

Here is the most common startup costs associated with developing a new restaurant:

 Obtaining a lease and professional fees

 Premises refit
 Kitchen fit out, ovens, refrigeration etc.
 Staff recruitment and uniforms
 Furniture, crockery, table cloths, flowers, pictures etc.
 Signage
 Initial stock of food
 Launch marketing fund
 Working capital

Remember there are also a multitude of expensive ‘hidden’ costs involved with setting up a
restaurant that many people do not consider.

Make sure you have sufficient funds in reserve to provide you with six months of working
capital? Many restaurants fail because they are undercapitalized.

Top tip: Keep your startup costs as low as possible. The recession will end shortly. Normal
business will resume, investors and banks will start throwing money at startups again. Great, not
necessarily so. I have seen way to many restaurants that would have a viable business if they
weren’t crippled by their startup costs. So many restaurant owners asking themselves a year after
opening, did they really need that £20,000 till system?

Equipment and Fit Out?

Buying the kitchen equipment and fitting out your restaurant will probably be your biggest
expense when starting up a restaurant.

Look into buying second hand equipment. You may find that another entrepreneur’s misfortune
will contribute to your success.

Recently failed restaurants probably left the owners needing money to bail them out of debt. One
way that these entrepreneurs recover finances is to dump their equipment quickly, often for far
less than they paid for it.

Use this opportunity to get the equipment you need‐‐and only what you need‐‐at a fraction of the
price. Look in the newspaper and online on classified ad sites to find where these sell‐offs are
happening.

Also can you get free equipment or equipment on loan from your suppliers? Grab and Go
Fridges from your cold beverage supplier, barista machines from your coffee bean supplier.
Remember though free equipment is often incorporated into the long term cost of your
purchases.
Raising Finance

Most would‐be entrepreneurs find this the most daunting aspect of opening their restaurant.

There are a number of potential sources for raising finance.

Savings

Not everybody has savings but if you do, they are a good place to start. If you don’t have savings
yet, now is a good time to start. Your timeline for starting your business may be six months to a
year anyway, so if you start putting money away now, you’ll have at least a starting point from
which to raise more cash. Starting a business is about sacrifice and so you should cut down your
lifestyle as far as possible and save the cash – you’ll be glad you did.

Banks

For you to be able to borrow money from a bank you will need to convince them that the
business is viable and that it can pay any interest and make the capital repayments as they fall
due. They will also look for some kind of security for any loan.

Once the business is set up, an overdraft can usually be arranged, although it should only be
taken out as part of a tightly controlled cash flow plan.
The biggest barrier to running a restaurant is never getting started. It is easy to plan but never
take the plunge. You need to be prepared, you need to have funds and you need to be willing to
work hard but most of all, if you want to realize your dream of running a restaurant, you need to
get started – today!

Friends and family

There are a number of pitfalls associated with borrowing from friends and family; on the positive
side, such borrowing arrangements can often be made on more attractive terms than might
otherwise be available from a more formal source of funding.

For example, it may be possible to borrow either without any form of security against the loan
and it may also be possible to borrow at either a lower rate of interest or even interest‐free.
Repayments may also be possible over an extended period of time and a detailed business plan
may not be necessary.

It is best to keep any arrangement formal, however, and to give your benefactor as much
financial information as possible upfront. You will be responsible for their money and as such, it
is in everyone’s interest to manage your money effectively.
 Venture Capitalists
There are a growing number of venture capital firms that are looking for small businesses to
invest in. If you are simply looking to run a sweet little bistro, the best you could hope for would
probably be a local businessman keen to invest. But if you are looking to launch a new concept
restaurant with potential for rapid expansion, venture capital funding may be available to you. If
you choose a venture capitalist, make sure you maintain control running your business.

Writing a Business Plan

Trying to convince
anyone, either a bank manager or venture capitalist, to lend you the money to embark on your
scheme is going to take more than a hazy idea sketched on the back of a pub napkin.

You need to be prepared, with a business plan, a presentation of your idea of how the business
will work, and a realistic breakdown of costs. Only then will any investor take you seriously.

The business plan will include:

Always pay for food and drinks in your own restaurant, this will set the standard for everyone
else.

 Startup costs
 Fixed and variable operating costs (Rent is fixed, Staff costs are variable)
 Forecasted number of covers and average spend. (Best and worst case scenario)
 Analysis of the likely gross profit on food and wine
 Analysis of your likely breakeven point
 A marketing and sales plan
 A plan of source of funding
 A budgeted monthly P+L and forecasted cash flow analysis.

A business plan is also vital in securing enterprise grants, investments, and loans, which you will
need when starting your business.

Compiling your business plan can seem like the most difficult and the least exciting part of
starting a new business, but it really is the most important.

Deciding on a legal structure for your Restaurant

There are three types of business that you need to be concerned with: Sole Trader, Partnership,
and Limited Company.

A sole trader operates exactly as the name suggests. You are actually trading in your own name.
Even though you might call the business something completely different to your own name, your
name will be on all official documentation.

A partnership has the same set up as a sole trader, except that you have equal responsibility for
the business with your partner or partners. If you are in a Partnership it is wise to draw up a legal
Partnership Agreement, to ensure that all partners know where they stand. This is also very
useful if you close the business down.

Many businesses decide to register as a Limited Company once they reach a certain level of
turnover to take advantage of limited liability status. This is because the major drawback of
being a Sole Trader or Partnership is that you are personally responsible for any business debts if
the company closes down. These debts are treated as the same as your personal debts, and any
personal assets (such as your house) could be claimed to use for repayment.
 Limited
Companies have directors and shareholders. There must be a minimum of 2 directors, and one
company secretary (who can also be a director) who is responsible for submitting the company
accounts to Companies House. However a limited company is separate from the directors and
shareholders who may not be held personally responsible for any debts if the company becomes
insolvent. Unlike with sole trader status where your income is effectively the same as your
salary, as a director you need to pay yourself a salary from the turnover of the business, and use
PAYE to arrange income tax and National Insurance. As a company director you also need to
complete a self‐assessment tax return each year to declare your salary and any benefits or
additional earnings. In addition to paying income tax on any salary you draw, you must also pay
corporation tax on any profit. For profits between £1 and £300,000 the tax rate is 20%.

As a limited company there are many and varied legal requirements you must adhere to, for
which a fine is payable if they are not complied with. These include employment laws – look out
for Working Tax Credit, Maternity Leave, Statutory Sick Pay & Employer’s Liability Insurance
– tax laws, health and safety laws etc. As you will see by now there is much more administration
work involved with running a Limited Company than as a sole trader or partnership. If you are
not sure which legal structure would best suit your business, you can get advice from an
accountant or solicitor.

Registering your Business with the Environmental Health Service

You must register your premises with the environmental health service at your local authority at
least 28 days before opening – registration is free.

Registration applies to most types of food business, including catering businesses run from home
and mobile or temporary premises, such as stalls and vans. If you use two or more premises, you
will need to register all of them.

It is a good idea to take the initiative and invite your EHO at the earliest opportunity.

If food premises are used by several catering businesses (for example, a village hall or
conference centre), the person who allows the premises to be used for this purpose is responsible
for registering them.

Registration is simple. You can download a registration application form from some local
authority websites, which can be completed and emailed, faxed or posted to the food team in the
environmental health department. Other local authorities offer online registration, where an
electronic form can be completed and submitted online.

Contact your local authority to find out how you can register.
www.food.gov.uk/enforcement/enforceessential/yourarea/

Finally remember if you want to make changes to your premises, remember that you should tell
the environmental health service at your local authority and you might need planning permission.

What other paperwork is involved?

 Before opening,
get in touch with your local authority to plan your business, organize waste and recycling
collection and get appropriate training and tools –it could cost you more money if you don’t.

You will also need a specific license if you want to do the following things:

 Sell or supply alcohol

 Sell hot food between 11 pm and 5 am
 Provide entertainment, such as theatre, cinema or live music
 Sell food from a stall or van on the street

Businesses should contact their local authority for information on all of these licenses.

Music Licenses

While you’re thinking about licences, you’ll also need two licences if you play music in public ‐
one from the Performing Right Society www.prs.co.uk and the other from Phonographic
Performance www.ppluk.com. Expect to pay about £90 for the former and £42 for the latter.

Find a good account, before you even think about setting up a restaurant. Ask friends and
colleagues for advice. Open a business bank account immediately and always keep your personal
finance separate from your business.

Trademarks
If you’ve created a specific, unique image for your business you can register for a trademark to
protect it from being used by competitors and other interested parties.

A trademark can protect your business’s name, slogan, domain name, logo, colour or sound, but
only if it is distinctive for that business within its class (i.e. industry type specified by the IPO).

Insurance

When starting a
restaurant, insurance is one of the easiest things to forget. Here is a quick review of the essential
and optional insurance that you will need to consider.

Public liability insurance ‐ will cover the cost of a claim if a customer in your restaurant or cafe
is injured or killed, or if their property is damaged while on your property.

Buildings insurance ‐ If you own the building of your restaurant, it’s essential to have business
buildings insurance cover.

Employers’ liability insurance ‐ You are required by law to take out employers’ liability cover if
you have employees. It will pay the cost of a claim from an employee who has been injured at
work, or who has become seriously ill as a result of working for you. Employer’s liability
insurance may seem like a nuisance and unnecessary extra expense but the law is there to protect
you and your business. If an employee is injured or becomes ill in the course of their work, and it
can be proven as your fault, you could face a claim for compensation. This policy will ensure
that your business is protected from this cost. Another good reason for making sure you comply
with this law is that there is a £2,500 fine for each day you are in business without cover.

Contents cover ‐ Contents insurance covers you against a wide range of perils and disasters such
as fire, theft, water and more.

Business interruption ‐ This cover compensates your business for lost income when your
business is forced to close due to an event that is stated in your policy. It could be for an incident
as small as a power outage lasting a couple of days that prevents your shop from opening, or one
as big as a fire on your premises which could prevent your business from opening for weeks or
months.

Thanks to the internet, it is now possible to compare multiple policies and providers of public
liability cover in a similar way to car and home insurance. Although the choice of companies is
much more limited, online business insurance comparison sites offer price and policy
comparison services for most types and size of business. Check out:

www.swinton.co.uk/commercial/ www.simplybusiness.co.uk/

What Tax will you need to pay?

Over a year, a business owner has to make certain reports (returns) and payments to various
government bodies.
VAT

Value Added Tax (VAT) is a tax business charge when they supply their goods and services in
the United Kingdom.

Normally you will pay the standard rate of VAT which is 17.5% (rising to 20% in January 2011)
on the value of your takings. However cold takeaway food and is charged at 0% on the value of
your gross sales for these items, provided it is not of a type that is already standard rated, e.g.
crisps and prepared drinks.

Calculating VAT can be a little confusing. So here is a simple explanation.

Take your sales, i.e. in this case £100,000 and divide them by 1.175 (1.20 after January 2011) to
get your sales before VAT. In the above example this amount is £85,106. The difference between
these two figures is you’re VAT.

It is obligatory to register for VAT, if your business has a VAT applicable turnover of more than
£70,000 (as of April 2010). As a member of catering mentor you can also download our VAT
calculator.

Business Rates

You will also need to pay business rates on most premises. Normally around March of each year
and to coincide with the start of the financial year your local council will send out its annual
business rate bills.

Most councils ask you to pay in ten equal monthly instalments. You may be able to pay your bill
online if your local council provides this facility.

The rateable value is based on the likely annual open market rent for the premises at a particular
date. To find out what the rateable value of a property visit the website of the Valuation Office
Agency an agency of HM Revenue & Customs www.voa.gov.uk

The business rates you are charged are calculated using the rateable value and the multiplier set
by the government. In England, the standard multiplier for the financial year 2010‐11 is 41.4
pence. For example, a property with a rateable value of £10,000 is normally charged £4,140.

There are also several rate relief schemes available. You may be eligible for small business rate
relief if your rateable value is below a certain level. The amount of relief depends on the rateable
value of the property and is given in the form of a sliding scale
Between 1 October 2010 and 30 September 2011, eligible ratepayers will receive small business
rate relief at 100 per cent on properties up to £6,000. Business rates don’t cover commercial
refuse collection and water charges.

If book Keeping and payroll is new to you consider going on an evening course to learn the
basics. There are plenty of courses available particularly for Sage and Quick Books

Paying employees

If you are employing other people, you will need to work out, and pay, your employees’ tax and
National Insurance contributions. These come out of the wages you pay them. Remember, you
need to keep a record of everything you pay your employees, including wages, payments and
benefits. You also need to make sure that you keep to employment law on issues such as
employee rights, working hours, minimum wages and equal opportunities

PAYE (Pay As You Earn) is the system that HM Revenue & Customs uses to collect Income
Tax and National Insurance contributions from employees’ pay as they earn it. As an employer,
you’ll have to deduct tax and NICs from your employees’ pay each pay period and pay
Employer’s Class 1 NICs if they earn above a certain threshold. You pay these amounts to
HMRC monthly or quarterly.

Tax Allowance

As a business you can claim tax allowances, called capital allowances, on certain purchases or
investments. This means you can deduct a proportion of these costs from your taxable profits and
reduce your tax bill.

Restaurant Organizations that you need to

check out.
 There are
numerous trade associations for the food service industry. Most offer plenty of free advice and
publish relevant trade magazines as well as great award ceremonies every year. Check out the
following:

The British Hospitality Association (BHA) has been representing the hotel, restaurant and
catering industry for over 100 years. The BHA is the parent organization for the Restaurant
Association, the leading trade organization for the restaurant industry. The Association’s key
objective is to advance the interests of restaurateurs, and it is supported by over 50 Patron
Suppliers providing a range of support services,

www.bha.org.uk

The Sustainable Restaurant Association (SRA) The SRA is a not‐for‐profit, nationwide,

membership‐based organization committed to promoting sustainability across the UK’s
restaurant industry, from high street chains to fine dining operators. The SRA provides
restaurants with advice and support to help its members navigate the whole spectrum of
sustainability issues.

www.thesra.org

The National Restaurant Association is a restaurant industry business association in the United
States, representing more than 380,000 restaurant locations

www.restaurant.org
The British Sandwich Association is a great resource for anyone thinking of opening up a
sandwich shop or deli.

www.sandwich.org.uk

The Pizza, Pasta & Italian Food Association (PAPA) is the only formal trade body in the UK
representing the broad pizza, pasta and Italian food and drink industry.

www.papa.org.uk

The Café Society a sister organisation to PAPA and BSA, is dedicated to promoting the
development of the café environment in the UK and to encouraging high standards in all aspects
of the business, from coffee and tea making to service.

www.cafesociety.org.uk

The Restaurants Association of Ireland (RAI) is the representative group for the Irish Restaurant
Industry, providing a wealth of benefits and services to restaurant owners.

www.rai.ie

The British Franchise Association (BFA) is the voluntary self-regulating governing body for
franchising industry. Whether you are looking to become a franchise or a franchisor this is a
great place to start.

www.thebfa.org

The British Association of Innkeepers (BII) is the professional body for the licensed retail sector

www.bii.org

The British Coffee Association (BCA) provides a representative voice for all the UK coffee trade
and industry and promotes and safeguards members’ interests in all matters relating to the coffee
industry. www.britishcoffeeassociation.org

The British Beer and Pub Association (BBPA) is the leading organisation representing the UK
beer and pub sector. Their members account for 98% of beer brewed in the UK and own more
than half of Britain’s 54,000 pubs. www.beerandpub.com
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What are the best Catering Industry Trade
Shows?

There are
numerous National and Regional exhibitions and trade shows for restaurant owners and
managers. Check out some of the following remember times and locations may vary.

Hotelympia is held every year in February at the Excel Centre in London and is one of the
biggest of all the UK Restaurant shows. Not to be missed.

www.hotelympia.com

The Restaurant Show takes place in Earls Court, London every October. The line‐up of live
events see some of the UK’s leading chefs demonstrate new and inspirational ideas, Restaurant
Managers share their top tips on how to enhance business and Sommeliers and food experts offer
advice on how to create that winning menu. www.therestaurantshow.co.uk

Lunch the UK’s only trade show for the food‐to‐go market and is held in September/October in
Old Billingsgate, in the heart of London. www.lunchshow.co.uk

Hospitality UK is held every January at the NEC IN Birmingham incorporates not only the
largest collection of hospitality‐related exhibitors in the country but also Hostec Europe the only
dedicated UK hospitality technology event. www.hospitalityshow.co.uk

Scot Hot delivers the largest collection of hospitality‐related exhibitors in Scotland and happens
in February every year at the SECC IN Glasgow.

www.scothot.co.uk
Caffè Culture is the leading trade exhibition exclusively catering for Europe’s growing café bar
market. Held in June at the Olympia London.

www.caffeculture.com

Catex is Irelands leading food service tradeshow and is held every two years at the RDS Dublin
in February.

www.catexexhibition.com

Catering Trade Shows (Continued)

Hotel & Catering Show is a must visit caterers, restaurant owners and hoteliers and takes place at
the Bournemouth Int. Centre in March.

www.hotel‐expo.co.uk

Finally visit one of the BBC Good food shows for lots of inspiration and a chance to meet your
favourite celebrity chefs, held in October and November around the country.
www.bbcgoodfoodshow.com

The National Restaurant Association runs an annual restaurant and hospitality industry trade
show in Chicago, This Grand Daddy of them all takes over virtually the entire city of a week
every year in May. www.show.restaurant.org

For a complete and up to date listing of all trade shows in the UK, log in to
www.cateringmentor.co.uk.

Managing Yourself
 Good leadership
and culture starts at the top. As a restaurant owner, it’s your job to set expectations for your
restaurant, as well as for each position at your restaurant. This starts with a great leader – and in
this case, that’s you!

Getting Organized
When everyone is rallied around a certain goal and buys into the culture of your restaurant (both
of which are set by you), amazing service will come easier.

While management is very much a state of mind, there must be a framework. For example, there
are certain things that must be in writing.

 Business Plan: This is the foundation of your restaurant. Even if you never wrote one when
starting your restaurant, you can still draft up a business plan to understand the past, present, and future of
your company. You can use this template to get started.
 Mission Statement: This is a one-paragraph explanation of what the purpose of your restaurant is.
Is it your mission to provide local food to the masses? Improve restaurant service? Act as a community
resource?
 Company History: Understanding the past is the key to a successful future. Jot down a quick
overview of how and why the restaurant began, including co-founders and others involved.
 Financial Goals: You may have already highlighted these in a restaurant business plan, but things
change in this industry! Keep this document updated with long- and short-term financial goals for
restaurant sales, profit & loss, and more based on how you are performing financially.
 Positioning Statement: Who are you targeting? What makes your restaurant special?Draft a
formal positioning statement (different from the mission statement) to figure out what you’re – you
guessed it – position is in your competitive environment.

If you don’t have these written down, get started on them immediately. According to this study,
people who wrote down their goals accomplished 33% more than those who did not write down
their goals. They also checked on these goals weekly, staying accountable with reminders from a
friend. If you don’t have restaurant goals, or if it’s been a while since you’ve looked at these,
give them a refresher and ask yourself the following questions:

 Are these still my goals?

 Do these fit the culture I have in mind for my restaurant?
 Are these words in line with how I see my business?

If you’re not happy with the answers to those questions, it may be time to reorganize your
thoughts so your restaurant can move forward.
 Admitting
Your Flaws
This job isn’t easy. Restaurant managers can work up to 15 hours each day. This can take a toll
on your management, because let’s face it – you are not Superman/Superwoman. When the hours
add up, you can get tired and lose focus during the dinner rush. Take time to manage your time.
When you get burned out, your performance as a manager will suffer.

The frustrating fact of this role is that your job is never really over. Any time not spent
discovering ways to better your restaurant – such as staying in tune with industry trends,
studying your market, reviewing your numbers, and contemplating strategies for growth – is an
opportunity cost. All successes – and failures – will likely fall on you.

Think back on that euphoric feeling when you’ve had an awesome night. The place was packed,
but the customers didn’t seem to care. The staff was smiling the whole time through, the food
that came out looked perfect, and you hear your employees complimenting each other’s, saying
“good job.” That’s a moment you can take pride in. But then there are nights where you’re best
people are just…off. Your chefs make four or five mistakes in a row, a server drops a plate, and
you have at least two tables requesting to speak with you. Those are the nights that stick with
you.

It’s time like these when you need to admit to yourself that you are not perfect. Accepting this
fact – not ignoring it – is what makes a great manager. When things don’t go the way you
planned, look to improve in these areas:
 Patience: Because acting rashly can lead to bigger and worse problems. Be patient! Understand
that there will occasionally be holdups and delays, and when there’s a glaring issue, make a note of it and
give yourself and your team a set time frame toward fixing it so it isn’t a problem in the future.
 Ask for help: Again, you are not flawless. Remember, your team is composed of those who do
their jobs on a daily basis. They know how to help out in the areas that you may not. If you hire correctly
(which we’ll revisit in the next section), you’ll have a team of individuals who will be happy to lend
themselves where needed. This empowers your staff and lets them know you – as their manager – look to
them when they are needed.
 Pitch in: It’s easy to stand on the sidelines complaining and criticizing. Is there a backlog of food
ready to be brought to the tables? Don’t yell at your servers, pick up a plate and bring it to where it
belongs. Is the busser overwhelmed with an influx of dirty tops? Don’t tell them to go faster – grab a
cloth and get to work.

When things go exactly as you had planned, be selfless and humble. Modern managers know the
value of a team and always give credit where credit is due.

These practices will help you serve as someone your employees can emulate. Ask yourself –
would you rather have your staff base their behaviours off a humble manager with integrity, or of
someone who is too afraid to admit to their flaws?

Owning Your
Strengths
 Managing a restaurant involves more than planning inventory, telling others what to do, and
making decisions for the restaurant’s future.

It may sound corny, but it takes a certain personality to be a restaurant manager. You can’t
expect to see your restaurant succeed just by being a figurehead – you need to take action and
capitalize on your strengths.

Here are four characteristics you should adopt if you want to strengthen your management
style.

 Passion: “I have a passion for restaurants. This is where it all comes together…I love the
restaurant industry!” – Donald Burns, the Restaurant Coach.

First and foremost, you should always be passionate in this role. If you’ve managed a restaurant
for some time now, you know how thankless this job can be. Sometimes, the thing that gets you
through that shift is your passion for this role. Seeing guests leave with a smile or overhearing
them at the table mention how much they enjoyed their meal can be your biggest reward.
Maintaining this passion in all that you do is what will make you stand out from the restaurant
managers who are fine with their restaurant being “just okay.”

 Self-control: This industry is incredibly fast-paced. It’s easy to lose your head and make a rash
decision that could come back to bite you. Remember to be level-headed and have self-control in all of
your dealings and decisions. Think everything through, be methodical, and have a reason for all that you
do.
 Willing to take risks: This may seem contradictory from the last point, but it’s not. Being a great
restaurateur means making your restaurant stand out in a positive way. To accomplish this, plan and take
calculated risks to see a payoff. Add that new menu item. Try a new system in your restaurant. Be
innovative! If you don’t evolve, neither will your restaurant.
 Proactivity: “We all need help at some point or other; offer it, before someone has to ask for it.” –
Chris Hill, Chef and Entrepreneur.

It’s so easy to be reactive as a manager. Waiting for a situation to arise and then responding to it
seems like the natural course of action. But what if you formulate a response to a problem before
it even arises? Wouldn’t it alleviate so much stress if you had a process in place for when your
credit card processor goes down, if there’s a conflict with customers, or if your supplier mixes up
delivery dates? Proactivity allows you to stay ahead of any problems by being prepared.

Managing Others

Now that you

understand how to confidently and effectively manage yourself, it’s time to pass off some of the
work to others. The service your staff provides will either be the root of your success or the
cause of your restaurant’s downfall.

Staff management can be broken down into three areas: hiring, enforcing and adjusting.

Hiring calls on you to carefully bring a worker on board who matches your communication style,
will work well on a team and will have a positive attitude towards the industry, your restaurant,
and of course, your guests.

Enforcing requires you to manage your employees just the right amount to ensure consistent
performance from your staff.

Adjusting means recognizing the need to fix or enhance the performance of your staff, and the
way you manage employees through this process can make all the difference in staff retention
and satisfaction.

Hiring
 “You can lead a horse to water, but you can’t make it drink.” There’s a reason this saying has
stood the test of time, and it’s because it still makes sense – especially in the context of your
restaurant’s employees. A great team is determined by who you bring onto your staff. They are
the ones who will prepare food, interact with customers, and serve as the face of your business.

Your restaurant will not be able to run on its own if your employees aren’t as passionate about it
as you are. Therefore, you should be giving a lot of thought to every employee you hire. Have a
list of questions you ask when interviewing. Here are a few to get you thinking:

 Why do you want to work in this industry?

 What does “hospitality” mean to you?
 Tell me about your most memorable hospitality experience.
 Tell me about a conflict you’ve had to deal with involving your co-workers, and how you handled
it.
 Why would you make a good addition to this team?
 Find more restaurant interview questions here

It’s essential to gain more from an interview than answers to these questions. Gauge whether or
not you can really manage these people. Employee management is about sharing a mission and
empowering your personnel to be a reflection of the restaurant and an extension of yourself. If
the best chef in the world doesn’t match your idea of a manageable employee, even they might
not work well in your restaurant.
 As a rule of thumb,
it may be wise not to hire these people:

 Those who have bad references.

 Those who dodge your questions.
 Those who don’t seem passionate about the industry or the work.
 Those who appear confrontational or disrespectful in the interview.

Enforcing
Once you hire the best people, it’s your job to hold them to the standards they were hired on.

Managing your staff is tough. You typically have a group of completely different workers at any
given time, all of whom will require a different level and style of management. By getting to
know your staff as individuals, you will be better equipped to match their communication style
and manage them in the best way possible.

Manage too little and you run the risk of a slacking staff. Manage too much and you’re seen as
overly controlling. Every individual staff member and every team will require different
management, which requires you to understand the best ways to interact with everybody in your
staff. This is why communication is the key between employer and employee, and should be
noted during the interview process.
Management – whether it is in an office, in a restaurant, on a movie set, or on a construction site
– is not a “one size fits all” mentality. If you can’t read people as individuals, you will not be
able to motivate them or manage them properly.

At the end of the day, your staffs are people, not puppets or army soldiers. They work together as
a team and that means they want a leader they can respect and that would approach a problem
with a level-headed mentality. As The Restaurant Coach Donald Burns writes, “If you describe
yourself as tough, business minded, direct, no-nonsense, or a hardass manager, let’s face it…
you’re probably a jerk.”

If you simply look at your employees as “my favourite waiter,” “the new part-time cook,” or “the
hostess who is only here for the summer,” you’ll struggle to connect with them. This will impede
on successful management and will rob you of the opportunity to personally empower your staff.

Adjusting
When you do notice an area of improvement for an employee, you’ll need to address it
immediately. Letting problems linger for too long creates two major issues. First, it allows the
employee to become set in their ways and think the behaviour isn’t a problem. Second, if the
behaviour impacts customers, it could negatively affect your business.

When speaking with an employee about a behaviour change, it’s important to remember what we
went over in the previous section. Some people communicate indirectly, and will be turned off or
even offended by direct instructions, seeing it as an insult. Others prefer direct, clear instructions
so they misunderstand nothing. Mixing these communication patterns can lead to confusion and
frustration for both you and your staff.
 Once you speak
with the employee, allow for a brief adjustment period, pending on the severity of the situation.
Whenever you see a slip-up, give a gentle but clear reminder of what you discussed. If the
behaviour does continue, have another talk. Be clear and leave little to no room for
interpretation.

If the behaviour continues past that, explain to them they have one final chance to prove that they
understand what you spoke about. However, do not let this behaviour carry over to your
interactions with your better-performing employees.

Let me paint a picture for you. It’s a crazy Saturday, and one of your employees (for the
twentieth time) unprofessionally confronts their coworker about something. They’re yelling,
making a scene, and the staff and even some customers notice it. You’ve explained to this
employee that if they react this way again, they will be let go. So it’s your natural instinct to go
right up to them and fire them on the spot.

Bad idea. It’s likely they’ll make an even bigger scene which will disrupt everything even
further. You’ll then be in a worse mood, which could be detrimental to your interactions with
good employees. Instead, calmly but firmly approach them and break up whatever conflict has
arisen. Then, following the shift’s end, pull them aside and tell them you’ve decided to let them
go since they didn’t come through on their promise to act more professionally. That way, you
avoid creating a bigger conflict that would potentially impact the rest of your staff, and by
extension, your customers.
When terminating employees, always give a reason. It would also be a smart idea to check your
local laws to see what cause is needed – if any – to let employees go.

At the end of the day, you want your employees to be productive, committed, and happy. If you
notice even one of these three characteristics missing from your staff, take a close look at how
you are managing your team to ensure you have the best possible workforce from the group you
have assembled. As hard of a pill as it is to swallow, sometimes it isn’t them that is the problem.
Refer back to the first section of this course to really rethink your management style.

Finally – don’t forget to treat your staff well! Give them discounted meals (free if you can afford
them) and talk to them before and after shifts to get to know them. Over time, interpersonal
communication will come easier and more naturally so you can manage staff easier and better. If
you give even a little to your staff when they don’t expect it, you’ll see an enormous return on
performance, morale, and retention.

Managing Your Money

In every business,
money is an essential factor to consider in your management decisions. For example, poor staff
management leads to higher turnover, which costs money (in some cases, about £4,000 per
employee). Improper management in the kitchen leads to more wrong orders, which costs
money. Setting prices at an inaccurate amount leads to less profit, which costs money. When not
enough money comes through the door, soon enough you’ll be closing your door.
Employees No staff = no profits.

Investing in a reliable staff is key to your financial survival. But at what moment are you
spending too much money on your staff, to the point where you are unnecessarily losing profits?

Wages, meal comps, uniforms, and all other periodic expenses should be designated in advance.
You should know going into each week how much your staff is going to cost you. Proper
scheduling is the best way to do this.

Make sure you account for the condensed lunch rush and the consistent pace of dinner in your
planning so that you always have just enough people scheduled for each shift. That way, you
won’t lose money from customers too frustrated to wait because you won’t be understaffed. You
also won’t lose money from overstaffing workers who won’t contribute as much during that
hour.

Most restaurant managers have the schedule set at least a week or two in advance, which is made
easier through scheduling integration tools. Try to keep employee costs as similar as possible
during each period. Naturally, this will take some adjusting during holidays and busy seasons,
but don’t worry! That extra business should offset the wages.

Unfortunately, there’s not much you can charge your employees for. Keep a watchful eye for
discounts and voids, frequent waste or mismanagement of food, or off-putting interactions with
customers. If you spot employees who just seem to bleed profits whenever they are working, it
might be time for a tough talk.

Menu & Pricing

Your menu is your selling point. As a restaurateur at heart and in practice, you’ve carefully
selected each menu category, its offerings, the ingredients, and your signature dishes. But have
you put that much effort into calculating your prices?

Prices typically cover the cost of the food in full, plus a markup to cover the rest of your
expenses. But are all of your markups the same, or do they differ?

If the numbers aren’t as positive as you’d like, consider repricing your menu items. Naturally,
you’ve figured in such expenses as operating costs, rent, and workers’ wages. But have you
taken everything else into consideration, like covering wrong orders, credit card fees, and money
for emergency repairs? All of these expenses affect your restaurant’s bottom line.
Accounting

Okay, time for a quick crash course in accounting.

As tedious as it may seem, you should always keep track of your expenses and revenue in full.

It’s not enough to just know that you spend £112 on yesterday’s produce delivery. You should
have a complete record in one concise location to keep track of your profits and losses at any
time.

Finding a Balance

Managing your money in a restaurant requires a delicate balance. You can’t splurge, but you
can’t be stingy. You can’t be too risky with your money, but you should take some risks.

To find a good place to start, set aside a certain percentage of your revenue every month to use
for investing in new ideas for your restaurant. You never know if you’ll want to try out a menu
redesign, get some updated furniture, or add a new item to the kitchen.

From there, you can adjust your spending based on your profits and the results of your
investments. If they’re going well – awesome! Why not try pushing your limits and see what else
you can accomplish? If you find you’re spending too much, cut back and see if you get better
results.
Managing a restaurant is first and foremost a business! Take advantage of industrial innovations
that will improve your operations. Sometimes you have to spend money to make money.

One of the biggest assets a modern restaurant manager can use in their financial planning is the
reporting function on a POS system. This will give you all the data you need to break down your
sales and make the right decisions for your business.

Managing Your Food and Supplies

“Supply chain
management” is a term that usually comes up in discussion about large distributors like Wal-
Mart, but supply chains play a role in every business, including restaurants. It’s true – taking
control of your inventory can threaten to overwhelm, but it must be done to ensure smooth
operations in your restaurant.

Managing the food and supplies in your restaurant can be broken up into three different sections
– pre-delivery, delivery, and post-delivery.

Pre-Delivery

If you want to secure a consistent and streamlined delivery system, take note of a few strategies.

First, limit your suppliers. While the company that supplies your vegetables may not be the
company that supplies your takeout boxes, there is still plenty of overlap in this industry. Some
restaurants utilize many different suppliers for the same deliverables, which can result in a slew
of inconsistencies. This can negatively affect the perception of your brand.

Customers – especially your regulars – come to expect certain results from you. How do you
think they will perceive your restaurant if the box their pizza comes in changes every week, or if
the cheese on their sandwich seems to taste different every time? Limiting your suppliers
eliminates this risk of inconsistencies in your restaurant so things the same for your customers.

Second, dealing with excessive suppliers can cause problems with your supply chain. Delivery
dates can get mixed up and you can end up with too much of one provision and not enough of
another. Keep things simple!

Finally, be sure to order enough inventory to get you through your next delivery date and then
some. Holidays, service interruptions, and delays happen. This can leave you without the
ingredients for your signature offering. Always have a reserve emergency supply for “just in
case” scenarios. Space permitting, feel free to stock up on bags, packaging material, and cleaning
supplies. For food, limit the size of your emergency stash to prevent waste, and be sure to replace
that emergency supply with each new delivery so that the earlier delivered food goes first.

Delivery

It’s best to have your deliveries arrive on a regular schedule. Make sure your staff knows the
procedure for when deliveries arrive, or else you may face confusion. For example, some people
should work on bringing items to the correct stations, others should work on unpacking and
properly storing those items, others should handle cleanup, and others should be totally dedicated
to fulfilling orders. This way, there won’t be an issue of too many hands organizing the newly
arrived items and not enough staff fulfilling orders.

Do your best to schedule supply deliveries during the slower times of the day, like earlier in the
morning or in between your two busiest shifts. You could also ask a few trusted employees to
handle deliveries before the restaurant opens.

Food safety is another concern to address. Every item should be inspected upon or immediately
after delivery. Take note of things such as spoiled produce, poor product packaging, and
expiration dates if applicable. If something isn’t right, waste no time telling your provider so that
you can either replace or receive reimbursement for the bad product and get it out of your
kitchen. This ensures your restaurant will have fresh food and will minimize the chances of food
poisoning.

Post-Delivery

Inventory control requires you to organize your food and supplies properly.

Next time you’re in your restaurant, take a look around. Are there places that are so stuffed with
supplies that you can barely move? Have you lost track of where you kept a certain item? Have
you ever received complaints from employees about the lack of structure in your back of house?
If the answer to any of these questions is “yes,” take the initiative to redesign your inventory
space.

Make sure there’s a place for everything, and make sure everything is in its place. No longer will
you be fumbling around for that misplaced shipment of salt packets. You’ll reduce wasted time
and put your time and your staff’s efforts toward more valuable tasks.

For your food, freshness is key. The best way to ensure freshness is through preservation. Simple
differences in refrigeration temperatures can affect freshness. Defrosting too much meat or
slicing up too many vegetables that go unused for too long are on you, so make sure your staff
knows not to prep too much. It’s essential to be prepared, but not at the expense of your food or
money. Based on the performance of similar days, engage in some predictive forecasting to make
safe estimates of how much food you should have ready before a shift.

Supply Management

When dealing with these logistics, it’s important to be organized above all. This is a prime
example of how managing a restaurant involves wearing many hats. Masterful management will
require you to be involved with the logistical side of operations even though your daily
interactions with staff and guests may call on you to be a little less precise and a bit more
personal.
 Managing
Your Technology
There are many factors that make restaurant management far more difficult than it once was. It
seems like more power is in the customers’ hands – they have more information, buying power,
and locations where they can eat out. Operating costs are rising, while customers want lower
prices. Staff turnover is causing your employees to head out the door, never to return.

Luckily, there are many advantages of restaurant management that exist today that were not
feasible or even possible decades ago, and these come from technology. For instance, the POS
system that you use can unlock data that allow you to make purposeful, intentional, and logical
decisions about how to manage your restaurant.

Take a look at the list below of the technological advancements that have helped to shape the
modern restaurant industry. Many or all of these can make your job easier, allow you to connect
with customers, and manage your restaurant operations better.

 Interactive Data Reports: collected from your POS system to give real statistics and data so you
won’t have to guess anymore.
 Handheld Tablets: for servers to take orders at the table, decrease delays, and increase the number
of customers served in a given time.
 Online Ordering: to clear up your phone lines, reach a tech-savvy demographic, and ensure order
accuracy.
 Loyalty Programs: to engage your guests and turn them into happy returning customers.
 Self-Ordering Kiosk Stations: to speed up the ordering process and give customers a restaurant
experience that they can control.
 Kitchen Display Screens: to keep your back-of-the-house staff organized and working efficiently.

All this restaurant technology can seem difficult and overwhelming to manage, but it becomes
easier when you adopt an all-in-one restaurant management system for your restaurant. It can be
used by customers to order online and manage their loyalty accounts. It can be used by your staff
to place orders and close checks. It can be used as software for the terminals, kiosks, and
equipment you employ in your restaurant.

And of course, it can be used by you to change the menu effortlessly, manage scheduling and
inventory, and check your restaurant data. Ditching that legacy POS for a cloud-based model
means you can manage your restaurant from anywhere, at any time. Checking your reports don’t
need to be onsite anymore, and there’s no need to call support if you want to add a menu item.
Managing your restaurant technology is simple today – just take advantage of streamlined
technology and you’ll be less stressed in no time.

Remember, in today’s competitive environment, other restaurants will be making data-driven

decisions based off of their reports as well. Savvy managers will also be using integrated
technology to streamline their operations and gain valuable insight in order to make better
decisions, achieve higher profits, and create a better customer experience. If you want to match
that, you must invest in manageable technology for your restaurant.

Managing Everything Else

 Your restaurant is
one in a million. Literally, there are millions of restaurants located in a country, so how will you
make your restaurant stand out? What kind of culture will you create? What will your
competitive advantage be?

As important as everything we just covered is, words can’t express the importance of these areas
in your restaurant that need your input as manager. Here are a few you might want to take a
closer look at.

Managing Your Atmosphere

Even if you’re a one-of-a-kind fusion restaurant or a speciality eatery, there are no guarantee
customers will just flock to your restaurant. Diners have countless choices when it comes to
going out to eat. Besides the food you sell, how else can you set your restaurant apart?

Start thinking about all the things that define your atmosphere. These can by physical items like
the furniture and plates you use, intangible assets like your design and music played, or
interpersonal factors such as the way staff will interact with guests. Everything in your restaurant
– everything – will determine how you are perceived by customers. What kind of restaurant do
you want to be?

One way to narrow down what you want to be is narrowing down what you do not want to be.
This is called a trade-off. By acting on decisions that define what kind of restaurant you are not,
you give off the message that you know what kind of restaurant you are. Guests will come in
 knowing exactly what to expect, which will create loyal customers who appreciate what you
offer.

Managing Your Customer Experience

Almost every restaurant’s main goal is to provide remarkable service to guests. But what does
that mean? While everyone has a different opinion, there is one group whose opinion you cannot
ignore – your customers.

It doesn’t matter how established your restaurant is. You can always benefit from customer
feedback. Leave out comment cards on the table, or give them to all servers to hand to customers
at the end of the meal. Offer an incentive – like entry into a drawing, a free dessert, or a small
amount of their next meal – in exchange for filling out comments.

Some great questions to ask on these comment cards are:

 Server name: To address the specific server if they deserve praise or need to explain a problem
they faced.
 Item ordered / feedback on the food: To figure out which meals should be scrapped from the
menu, or if a certain cook isn’t sending out the best possible plate.
 Date and time of visit: To narrow down who was in the back-of-the-house if it was an issue with
food or presentation. It may also help explain comments on wait time or other comments not related to the
server.
 Likelihood to return: To share with the staff if the likelihood is particularly good or notably bad.
 Email address (optional): To sign up customers for loyalty programs or newsletters and create
repeat visitors.

These cards are an amazing source of feedback for both qualitative and quantitative information.
They will let you know why you have customers who are or are not coming back so that you can
stop guessing and get all the facts. Gaining feedback on specific dishes and servers can tell you
who or what you should be managing, and to what extent.

If you use a POS with a CRM function, it’s even possible to match up feedback with specific
customer profiles. That way, when you see a customer comment and cross-reference your CRM,
you may notice it’s a complaint from one of your frequent guests who comes in every week with
 their family and usually places a big order. At that point, you’d know to reach out to them and
personally make them aware you’re working to amend the issue for their next visit.

Other answers, such as from an “any additional comments” section on the card, give you insight
on the little things you never thought to look into. Restaurant customers can comment on the
lighting, the table setup, or even restaurant design. Now you can dedicate your time to improving
service and customer satisfaction. Your time spent micromanaging the things that don’t matter
will cease, and you’ll be a more efficient restaurant manager with customer feedback.

Managing Your Safety

Safety and security

problems only complicate your operations and seem to happen at the least desirable time. Take
the time to address these crucial threats to your business that will do nothing but disrupt the flow
of your management.

 Data/credit card breach safety: Hold the payment information of your customers in high regard. If
that trust is gone, your restaurant will always be questioned for its safety. Make sure your credit card
processor is PCI compliant to ensure secure transactions.
 Emergency procedures: Detail what to do in an accident, choking situation, or robbery.
 Security policies and procedures. Make it clear that it is illegal to steal money or inventory from
the restaurant or to communicate or transmit a former employer’s confidential or proprietary information.
 Safety rules: Outline basic guidelines such as “never try to catch a falling knife” and “don’t put
hot food or plates in front of small children.” This may seem like common sense, but it’s better to be safe
than sorry.
 Fire protection: Outline where the fire extinguisher is in the restaurant, as well as how to notify
the fire department in the case of an emergency. Show where the nearest fire exit is out of the building.
 First aid and medical care: Managers are responsible for CPR and first aid. Make it clear who on
the team knows this, and give others the option to learn important first aid procedures.

Managing Your Appearance

If you walked into a restaurant with delicious food, but the floor needed to be swept, the counter
was messy, your table hadn’t been bussed properly, and the restrooms were…unappealing,
would you be likely to return?

Cleanliness in your restaurant cannot be overlooked. Ensure all hands of your staff know that
when they have a free second for side work, they should be looking around for something to
clean. If they notice it, chances are one of your customers already has as well.

For the bigger projects like windows, bathrooms, kitchen equipment, and storage places,
responsibilities should be divvied up so that everyone does their fair share. Set up a
system/schedule so that at least once every set period of time, stations are cleaned. Refer to that
guide often, so cleaning never gets overlooked!

To pitch in, it may be a good idea to throw yourself on that schedule as well, to understand your
employees’ tasks and hold your staff and yourself to higher standards.
 Managing
Your Brand
Countless people will see your restaurant and the food you serve before they even come to your
establishment. You may be asking how that’s possible. Two words: social media.

Customers love to engage their followers with their exploits at local restaurants, posting on
Instagram, Snapchat, and Twitter. Why let your customers control your brand for you? Create
social media accounts for your restaurant, and designate a few social media gurus on your staff
to run and post frequently on the page. Encourage customers to tag or mention your official page
in their posts so you can see what’s being said about you.

Today, taking the first step to managing your brand is as simple as picking up your smartphone.
People want to see great food, not just read about it. So publish photos of signature dishes or
you’re special of the day! See for yourself some awesome examples of restaurants that have set
the bar for social media.

If the very thought of social media throws you for a loop, using a tool like Hootsuite or Buffer to
keep things organized may be a great place to start engaging with your customers!
Conclusion
While managing a restaurant today can be stressful and at times difficult, it’s exciting,
rewarding, and fun with the right mindset and management skills. Make no mistake – there is
one person who decides if a restaurant will be a good place to work or a bad place to work. That
one person will determine if a restaurant will sink or swim. That one person is the one who
manages the restaurant. That person is you. You call the shots for your restaurant. So, what kind
of decisions will you make?

When in doubt, look at your numbers! Making data-driven decisions results in real
improvements to your restaurant. Now you can truly see what your best-selling item is, what
time of the day is best for business, which employees get the best tips, and if that lunch shift you
just survived really was the busiest one you’ve ever had. How can you get this kind of data –
data that will give you insight into your customers, inventory, menu, scheduling, employees, and
finances? A modern, efficient, and reliable POS system is a great place to start.

Food Business Basics

Synopsis
The following are some of the factors that need to be seriously considered, and none of these
includes the ability to cook great food, which is the least on the long list of a requirement this
business style insist upon:

The Basics

When this
business style is mentioned it is common for everyone to associate the actual process with a
restaurant or bistro of sorts. However, this is only a very small part of the bigger picture that the
food industry paints.

However, either way, the premise where the business is to be conducted had to be legally
appraised and approved before any other steps are taken towards launching the food business.

All the legal documentation also have to be in order with the relevant licenses and permits
applied for and approved. Whether the business is a small homegrown one or a large
cooperation, both styles require the proper and legal approval before it can be considered a safe
entity.

Being sure of the niche market the business intends to cater to is also another consideration that
should get some serious thought. Identifying the niche market is important as this will eventually
have some bearing on the success rate of the business. There is no point opening a particular
style at a location that is not suitable to that style mainly because of the lack of
 demand. Considering other elements such as the lifespan of the food involved in the business
endeavour and the necessary tools to keep the food product at its freshest should also be explored
extensively.

 DIPLOMA IN RESTAURANT AND FOOD MANAGEMENT

 10 MINUTES

Put Together Your Business Concept

Synopsis
Any business should be centred around a single concept or design, and this should be clearly
depicted within the actual business makeup. With the clear concept in place, all those working
toward the actual final product will be able to have a clear goal of what is eventually to be
expected.

What Will It Be

There are many

elements that would dictate the business concept and its eventual execution. The following are
some contributing factors that would lead to the eventual concept the business is built upon:
Budgets would be a huge factor when the concept for the business is being decided upon.
Although there should be some leeway given, most times this particular area has to be
compromised in order to accommodate other more important elements.

If the market intended is a niche in style then the concept should be fitting to the market targeted.
Often this factor is not taken seriously enough and this can cause a lot of problems through the
business as the wrong concept will produce the wrong results. Identifying the supporting tools
that will help to realize the concept will help the individual making the whole process a lot
simpler.

There are a lot of specific areas that may need the assistance of these tools and by putting some
effort into identifying these supporting tools the actual concept can be made into a  reality more
quickly and efficiently. Besides the suitable tools, there is also the allowance made for the need
to consider the actual labour participation in the concept for the food business. If the concept is
labour intensive then the relevant amount of manpower needs to be factored in and provided.
Creating a business concept that is unique yet functional will ensure the business garners the
intended interests desired. Along with this interest comes the high probability of realized revenue
earned.

Identify your Target Market

Synopsis
In order to create a business that has the potential of phenomenal success, the individual would
have to ensure some research is done before. This research should include the identification of
the appropriate target market and its corresponding location.
Your Market

The target market

is the ideal platform for the business to gain leverage without having to “guess” the products’
eventual acceptance. Therefore the basic understanding would be, where there is a need there
will be a corresponding solution and the target market is that solution.

The following are some of the ways to categorize the target marketing identification:

Demographics – in this area the different yet relevant elements that contribute to the positive
participation of the purchasing public is very important.

Being able to present the material to a target audience that is more likely to receive it well, will
eventually contribute to the optimization of the revenue goals for the business.

Simpler elements such as age, income, education, gender all affect the general identification of
the targeting exercise. Designing elements that will eventually attract the attention of the target
audience will help to create the interests that will generate income to the site. Advertising
campaigns can be used to help identify the target audience, thus creating a platform where quires
and questions can be identified.

Being constantly updated in the latest food information, from the preparation to the actual selling
point, there is a need to understand and identify with all process it entails. When the information
used is innovative and fresh it will also attract the attention of the target audience. Although in
general, most food businesses are capable of catering to the target audience, this may prove to be
quite a feat especially if the intended target audience if not open to the actual food concept being
featured.

Identify Your Competition

Synopsis
Any business endeavour will have competition. In some very rare cases where the business
concept is totally unique, it is possible to initially have no competition but this soon changes as
people catch on to the new idea and duplications come about. However, there is no need to panic
as there are ways to overcome this problem and still ensure the business entity is a success.

Rivals

Perhaps the first

exercise that should be conducted is identifying the competition. This can be done by taking a
simple survey of what is currently popular and how long this popularity factor has ensured
success for the particular competitor.

Taking the time and effort to understand the competition and why their current endeavour is
obviously successful, will help the individual identify the winning ingredient that brings forth the
success.
When this is done the new business owner has some choices to make, some of which may
include the decisions made to either follow is already obviously proven success style of the
competitor or to have enough confidence in his or her own style to venture forward
individualistically.

Such risks are quite common and usually made based on the confidence the individual has in his
or her own concepts and capabilities. Other elements to consider when identifying the
competition, is the style used to garner and keep the interest of the target audience that
eventually creates their successful customer base. In doing so the new potential business owner
will be able to decide if the style used by the competition will also work for his or her business
concept.

The advertising tools used should be considered for its own individual contributions and
suitability.   Also, the target audience intended should be categorically decided upon as this
might in some way affect the eventual business endeavour if the current market share enjoyed by
the competitor needs to be shared with the new business entity launched.

Write A Mission Statement

Synopsis
Mission statements are great directional and motivating factor to have visible for all involved in
the business endeavour to be very well aware. The consistency of the work ethics and goals
should be created along the designs of the mission statement.
Write It Down

Ideas for the

mission statement can come from many sources and this is relevant to the personality and the
business direction set up by the potential business owner.

When the mission statement is completely understood and acknowledged by all involved, the
evident “oneness” of the direction those involved in the company will eventually seal the success
element beyond reproach. Companies that have mission statements designed have found that this
is an effective way to keep the staff constantly reminded of the overall goal intended for the
company besides of course the need to make money from the business entity.

This mission statement can be used to keep morals high all the time, and can also be used as a
motivational factor wherever problems cause the said moral to be affected or when the defeated
feeling is about to set in. Mission statements are also an effective way for the target audience to
be able to identify with the business entity. Often these mission statements can double up as
taglines which the customer base easily identifies with as it becomes very much a part of their
lives too.

Besides this, mission statements are also a very effective way to ensure the business and its
progress stays true to its original idealistic basic frame.  Sometimes when too much deviation
takes root and becomes a common factor within any progressive movement towards seemingly
newer techniques and business styles, the originality of the business style can become distorted
and even lost thus effectively creating a situation where the loyal customer base can no longer
identify with the said business entity. This can cause a considerable amount of confusion and the
shifting of loyalty as the original customer base cannot identify with the mission statement which
is no longer obvious.

Downline Basics
Synopsis
If and when there is an intention to expand the business into a huge and far-reaching entity, the
individual would eventually have to consider having a good and strong downline that will
effectively contribute to this eventuality.

Expansion

This exercise
includes getting other individuals who may have like-minded interest and capabilities to join the
business entity in helping to spread the business to venture even further and wider, with the
intention of reaching customer bases while at the same time adding to the revenue generation
possibilities of the overall current earnings.

These downlines are usually well compensated as they generate the sales that will comfortably
create the platform for business expansion possibilities.

Through the exercise of recreating downlines, there is a possibility of being able to enhance the
already lucrative position of the current business situation into a big and successful entity that
will generate eventual phenomenal revenues. With this added advantage the individual is able to
get the recognition for the business which should also help to contribute positively and also help
to expand the business even further.

It is an unchallenged fact that the existence of the downline concept is a very important element
that contributes to the backbone of the actual business make up, thus giving the business the
solid foundation it can build upon, expand and succeed. Having a food product sold or
introduced to a wider customer base through this business style tool is not only effective but
relatively cheap when the cost factors are taken into account.

A lot of food industries today are using this concept to further their sales and expansion
possibilities rather than using the more conventional style of creating outlets that carry high
overhead costs to sell the products. For most companies, this is also a much more personal and
successful way of getting their food products noticed and accepted by the public as a whole.

Equipment And Supplies

Synopsis
Part of launching a food business requires some research done into the various equipment needs
to accommodate the actual churning out of food products. This equipment may vary in cost and
sizes required based on the needs and intentions of the said food business. Then there is the issue
of supplies which may be quite complex, as it may involve perishable goods and also goods that
require special storage instructions to keep them safe for consumption.
What You Will Need

The following
are some points for consideration with regards to equipment and supplies for the food business:

If the individual is already sure and knowledgeable in the type and amounts of equipment needed
for the business then the research is now only needed to find the costing for the said equipment
and to ensure that the budget set aside for this purpose is compatible with the intended choices.

If there is a second hand or used market available for this purpose, it would be cost-effective to
look into buying the equipment from this convenient source. There may be a possibility available
to simply rent the equipment and if it considered a cost-effective and suitable option, then this
should be given serious consideration.

The general outlay for new equipment can be rather high and thus take up a huge amount of the
budget for the business. Supplies are also another very important area to be thoroughly informed
about.

This is because there are certain supplies that can cause a lot of problems for the smooth running
of the business and these may include seasonally available items, special storage requirements,
lengthy preparations, complicated preparations, ingredients that are very hard to find and when
found are very costly and any other factors that would cause the disruption in the smoother
flowing rhythm of the food business.
The food industry has been notoriously known for its often fickle and delicate process,
procedures and the complexities involved in keeping the end consumer happy and satisfied,
therefore serious thought has to be given before this particular business style is chosen.

Marketing And Quality Control

Synopsis
These two factors play an important role is getting the business the recognition it needs to
survive and be a success and also to create the intended revenue earning possibilities desired by
the set up of the business.

Research

During the
planning stage of the food business, some thought should be given to the type, size, and
frequency of the marketing campaign chosen for the job of creating market awareness.

The marketing style chosen should be suitable and cost-effective so that it fits into the budget
allotted within the overall costing exercise of the business.

The marketing campaign does not have to be lavish nor huge but if the correct tools are used the
campaign can be successful and cost-effective.
The important element to ensure is that the general public and the targeted audience are
effectively reached through the marketing campaign the chosen. Exploring tools online that are
considerably cheaper in comparison to the more conventional style of marketing a product, can
bring phenomenal success in creating visibility for the product and this can be done without the
constraints of cost, demographics, and any other limiting elements.

Quality control is another important factor to ensure is always consistent and at the very best it
can be. There are a lot of businesses that set out with the best products purely because of the
quality control stringently in place, sadly however when the said company gains a strong footing
of the market share available, quality control is no longer a top priority. This becomes very
obvious when the company starts to “cut corners” and less than optimum standards are applied to
produce the food items.

Wrapping Up
Most customers today seem to have this very popular complaint about products they were loyal
to, thus maintaining the quality control is the only way to ensure the loyal customers don’t look
elsewhere when their original satisfactions has been catered to. So it is very important to treat
your customers well and have a good product.

Where You Work

 Registering
food premises
If you are planning to start a new catering business, you must register your premises with the
environmental health service at your local authority at least 28 days before opening.

This is a legal requirement under the Food Premises (Registration) Regulations 1991 and applies
to most types of food business, including catering businesses run from home, and mobile or
temporary premises such as stalls and burger vans. Contact your local authority for information
on how to register.

If food premises are used by several catering businesses (for example, a village hall or
conference centre), the person who allows the premises to be used for this purpose is responsible
for registering them. However, if you use your own premises for a catering business, you must
register them, even if you use other premises too.

You might also need to register as self-employed and/or register for VAT. These registration
processes are completely separate from registering your food premises.

Remember that you might need planning permission to alter premises. And you will also need to
pay business rates on most premises. Contact your local authority for information on these
matters.
 Rules about premises
When you choose the premises for your business, it is very important to make sure that
they:

 meet the necessary regulations

 are suitable for the purpose of your business
 allow you to prepare food safely

The following rules apply to your whole premises, not just the areas used for preparing food.

Design and construction

The premises you use must be designed and built in a way that allows you to keep the place
clean and to work hygienically. They must also be designed to keep out pests, such as flies and
rats.

Handwashing facilities and toilets

Your premises must have enough washbasins for staff to wash their hands. (This is as well as
sinks in food areas for washing food and cleaning equipment – see page 4.) There must also be
enough toilets and these must not lead directly into food areas.
 Washbasins
Basins for washing hands must have hot and cold running water. And you must provide soap and
materials for drying hands hygienically, such as disposable towels.

Changing facilities

You must provide adequate facilities for staff to change their clothes, where necessary.

Waste

You must make adequate arrangements for food waste and other types of rubbish to be stored
and removed.

There are rules about the way certain types of food waste must be collected and disposed of.
Contact your local authority for more information.

Water supply

There must be an adequate supply of drinking water at your premises.

Other requirements

Your premises must also have adequate ventilation, lighting and drainage.

For more information, read Food safety regulations, which is published by the Food Standards
Agency, or contact the environmental health service at your local authority.
Food preparation areas

All these rules apply to rooms where food is prepared.

Floors, walls and surfaces

Floors and walls, and surfaces in contact with food, must be in a ‘sound condition’. They must be
easy to clean and (where necessary) to disinfect.

In practice, this means that floors, walls and surfaces should be smooth, hard-wearing, washable
and in a good state of repair.

Ceilings

Ceilings must be designed and constructed in a way that prevents condensation, build-up of dirt,
moulds, and shedding of particles.

In practice, this means that ceilings should be in good condition, smooth and easy to clean, with
no flaking paint or plaster.

Windows

Windows and any other openings must be designed and built in a way that prevents dirt building
up. Windows that can be opened to the outside must be fitted with insect-proof screens, where
necessary.

Doors

Doors must be easy to clean and, where necessary, to disinfect.

Equipment
 All equipment that comes into contact with food must be kept in good repair and be made in a
way that allows it to be cleaned thoroughly and, where necessary, to be disinfected.

Facilities for cleaning equipment

Your premises must have adequate facilities for cleaning and disinfecting any tools, utensils and
equipment used in the premises. There must be an adequate supply of hot and cold water.

Facilities for washing food

You must have a separate sink for washing food (not the same one used for equipment and
utensils) if unwrapped food is handled as part of your business. There must be an adequate
supply of hot and/or cold water of drinking quality.

 Always use basins and sinks for the right purpose. Staff should wash their hands in basins that are
used just for washing hands. They should never wash their hands in a sink used for cleaning equipment or
a sink used for washing food.
Equipment should be cleaned in a sink used just for that purpose. And food should be washed in
a sink used just for washing food.

Health and safety

You must work in

a way that protects the health and safety of your employees and other people who might be
affected by what you do. If you have five or more employees, you must have a written health and
safety policy, which describes your health and safety arrangements.

For more information, see the Small Business Service publication, Small Firms: Health and
Safety (for ordering details see page 21) or contact the Health and Safety Executive at
www.hse.gov.uk or on 08701 545 500.

Fire safety
You must carry out a fire risk assessment at your premises and take fire safety precautions to
help protect you, your staff and customers. The type of precautions you must have will depend
on a number of things, such as the size of your premises. For advice, contact your local fire
authority.

If you are planning to adapt premises, it is a good idea to get fire safety advice before you start
the work.
For more information, see Fire safety: An employer’s guide. You can view this publication
online on the Office of the Deputy Prime Minister’s website (www.odpm.gov.uk), or order it
from HSE Books at www.hsebooks.co.uk or on 01787 881165.

Mobile/temporary premises
If you run a food business from mobile or temporary premises, you need to know about the same
hygiene issues as other food businesses. Because space is limited, the legal requirements are
slightly different and allow greater flexibility.

For more information, contact the environmental health service at your local authority. Mobile
and/or temporary premises include marquees, stalls and burger vans.

If the premises you use are only used occasionally (such as village halls), the law also allows
some flexibility. Remember, mobile and/or temporary premises still need to be registered.

Staff, Suppliers and Transport

Recruiting
and training staff
Reliable and responsible staff are important for any business. If possible, it is a good idea to
recruit staff with some catering experience and/or training.
You must make sure that any member of staff who handles food has adequate supervision,
instruction and/or training in food hygiene for the work they do.

So, when you hire a member of staff, you should make sure they understand the main food
hygiene issues before they start work. See the 4 Cs on pages 8 to 11. And you (or the
manager/supervisor) will also need to explain to them how to do their individual job
hygienically.

It is a good idea for you and your staff to go on a food hygiene course. Short courses in food
hygiene are available at three main levels: foundation, intermediate and advanced.

For more information about training, visit the Food Standards Agency’s ‘Safer food, better
business’ website at www.food.gov.uk/cleanup or contact your local training provider.

Tip

It is a good idea to keep a record of any training you or your staff have done, because then you
will be able to show this to environmental health officers when they visit your premises.

Suppliers

Your choice of supplier is important because their reliability, and the safety and quality of the
food they supply, could affect your business. It is especially important that the products you buy
have been stored, processed and treated safely. When food is delivered, check that:
 it is what you ordered
 chilled and frozen food is cold enough (ideally below 5oC for chilled food, and below -18oC for
frozen)
 packaging is not damaged

If you have any concerns about the safety of the delivery do not accept it, or put it on one side
until you return it to the supplier. Make sure it is clearly marked to avoid staff using it
accidentally.

It is a good idea to keep a record of what products you receive from which supplier. Then you
will be able to contact the supplier later if there are any problems with the product.

Transport

When you transport food – perhaps from your premises to another venue, or from the cash-and-
carry to your premises – you must prevent it from becoming contaminated, for example with dirt
or bacteria.

It is especially important to make sure that:

 food is transported in packaging or containers that protect it from contamination

 chilled foods are kept at the right temperature (some businesses use cool bags and boxes, or
refrigerated vans)
 raw and ready-to-eat foods are kept apart

Vehicles used to transport food must be kept clean and in good repair.

Food Hygiene
 Good food hygiene
is essential to make sure that the food you serve is safe to eat. And it makes good business sense
because good hygiene helps prevent food poisoning and protects your reputation with customers.

When you are setting up a catering business, it is a good opportunity to introduce ways of
working that will help you ensure good hygiene right from the start.

The four main things to remember for good hygiene are the 4 Cs:

Cleaning Cooking Chilling

Cross-contamination

You can use the 4 Cs to help you prevent the most common food safety problems. The following
sections explain how you can use each one.

Cleaning

Effective cleaning gets rid of bacteria on hands, equipment, and surfaces. So it helps to stop
bacteria from spreading onto food. You should do the following things.

Make sure that all your staff wash and dry their hands thoroughly before handling food.

Clean food areas and equipment between different tasks, especially after handling raw food.

Clean as you go. If you spill some food, clear it up straight away and then clean the surface
thoroughly.
 Use cleaning products that are suitable for the job, and follow the manufacturer’s instructions.

Do not let food waste build up.

Tip

A cleaning schedule is a good way to make sure that surfaces and equipment are cleaned when
they need to be. It can also help to stop cleaning products being wasted or used incorrectly.

Work out what needs cleaning every day, or more than once a day, and what needs cleaning less
frequently. Your schedule should show:

 what needs to be cleaned

 who is responsible for doing the cleaning how often it needs to be done
 how the cleaning should be done

It is a good idea to include cleaning instructions showing: what cleaning products should be used

 how the products should be used, including how much they should be diluted and how long they
should be left in contact with the surface (following the manufacturer’s instructions)
 how the products should be stored (in a special place away from food)

Keep dish cloths and tea towels clean and replace them frequently. Otherwise they could spread
bacteria.
Lack of basic cleanliness is one of the most common reasons for food businesses being
prosecuted.

Cooking

Thorough cooking kills harmful bacteria in food. So it is extremely important to make sure that
food is cooked properly. Undercooked food could cause food poisoning.

When cooking or reheating food, always check that it is piping hot all the way through (and do
not reheat more than once).

It is especially important to make sure that you thoroughly cook poultry, pork, rolled joints and
products made from minced meat, such as burgers and sausages. This is because there could be
bacteria in the middle of these types of meat. Proper cooking is essential to kill any bacteria, so
these types of meat should not be served pink or rare.

Whole cuts (such as steaks) or joints of beef or lamb can be served pink/rare at the customer’s
request.

Keeping food hot

When you are keeping cooked food hot, you must keep it above 63˚C. When you are serving or
displaying food, it can be below 63˚C for a maximum of two hours. But you can only do this
once. Then you must throw the food away, or cool it as quickly as possible and keep it chilled
until it is used.

Tip

Of course, different dishes need different cooking times. If you work out the temperature and
time you need to cook a particular dish in your oven, you can use these settings and times to
cook the dish in the future.

But remember, ovens and other equipment can vary and go wrong, so you will need to check
regularly that these settings and times are still right to cook dishes properly.

Chilling

Chilling food properly stops bacteria from growing and multiplying. Some foods need to be kept
chilled to keep them safe, for example food with a ‘Use by’ date, food that you have cooked and
will not serve immediately, or other ready-to-eat food such as prepared salads.
 It is very important not to leave these types of food standing around at room temperature. So,
make sure you do the following things.

 Check chilled food on delivery to make sure it is cold.

 Put food that needs to be chilled in the fridge straight away.
 Cool cooked food as quickly as possible and then put it in the fridge.
 Keep chilled food out of the fridge for the shortest time possible during preparation.
 Check regularly that your fridge and display units are cold enough.

Keeping food
cold
Cold food must be kept at 8˚C or below, under the Food Safety (Temperature Control)
Regulations 1995.

In practice, the coldest part of your fridge should be between 0˚C and 5˚C to make sure that food
is kept cold enough. Use a fridge thermometer to check regularly that your fridge and any
display units are cold enough.

Tip

Food will cool more quickly if you divide it into smaller amounts and put it in shallow dishes.

Cross-contamination
 Cross-contamination is when bacteria spread between food, surfaces or equipment. It is most
likely to happen when raw food touches (or drips onto) ready-to-eat food, equipment or surfaces.

So, if raw meat drips onto a cake in the fridge, bacteria will spread from the meat to the cake.

If you cut raw chicken on a chopping board, bacteria will spread from the chicken to the board
and knife. If you then use the same board and knife (without washing them thoroughly) to chop a
cucumber, the bacteria will spread from the board and knife to the cucumber.

Hands can also spread bacteria. If you touch raw food and do not wash your hands thoroughly
you can spread bacteria to the other things you touch.

Cross-contamination is one of the most common causes of food poisoning. Do the following
things to avoid it.

Keep raw and ready-to-eat foods apart at all times. Wash your hands thoroughly after touching
raw food.

Clean work surfaces, chopping boards and equipment thoroughly before you start preparing food
and after you have used them to prepare raw food.

Ideally, use different chopping boards and knives for raw and ready-to-eat food.

Keep raw food below ready-to-eat food in the fridge. If possible, use separate fridges for raw and
ready-to-eat food.

Make sure that your staffs know how to avoid cross-contamination.

Food safety management

Everyone who runs a food business needs to manage food safety properly, to make sure that the
food they serve or sell is safe to eat. Effective food safety management involves:

 thinking about your food preparation arrangements working out what could go wrong
 putting procedures in place to stop things going wrong
 making regular checks to make sure the procedures are working and are being followed

Look at every stage of your business, from when the food is delivered to when you serve or sell
it to your customer. Think about what food safety problems there could be at each stage. The
 most common food safety problems can be controlled by good food hygiene – the 4 Cs.
Remember, different dishes might have different problems.

It is a good idea for you or your staff to keep records of your main safety checks. This will help
you see if something is going wrong and put it right straight away. The records will also help you
show environmental health officers what you are doing to ensure good food hygiene and obey
the law. For example, you could make a note when you check the following things:

 cooking times and temperatures dates on food

 cleaning schedules fridge temperatures pest controls

If you would like

more information about how to identify food safety problems and control them, contact the
environmental health service at your local authority.

Personal hygiene and illness

To keep food safe, it is essential for you and your staff to have high standards of personal
hygiene. It is particularly important to wash and dry hands regularly, especially:

 before starting work before starting a new task

 after touching raw food, especially meat or poultry after a break
 after going to the toilet after emptying a bin
 Handwashing
Although most people know they should wash their hands before handling food, many people
still do not do it. And bacteria can spread easily from hands to food and surfaces. So, make
handwashing a habit in your business right from the start.

To wash hands thoroughly, use warm water and soap. Work up lather and rub your palms, backs
of hands, fingers and thumbs. Then rinse with clean water and dry using a disposable towel or
hot-air dryer.

Staff working with food should:

 wear clean clothes and an apron or protective garment cover cuts or sores with clean waterproof
dressings
 wash hands after blowing their nose or touching their face or hair tie long hair back or wear a
hairnet

They should not:

 cough or sneeze over food smoke in food areas

 wear jewellery, such as rings or earrings, nail varnish, or false nails

If you or one of your staff has symptoms of food poisoning, such as diarrhoea, vomiting or
stomach pains, they must not handle food and must leave food preparation areas straight away.

Make sure that your staff tell you (or a manager/supervisor) if they have any type of illness or
skin condition. If you are not sure whether someone should be working with food, ask for advice
from a doctor or environmental health officer straight away. You can find more information in
Food handlers: fitness to work, which is published by the Food Standards Agency.
 Storage
It is very important to store food properly to keep it safe. Make sure you do the following things.

Keep foods in the fridge if they need to be chilled.

Store raw food apart from ready-to-eat food – see Cross-contamination on page 11.

Never use food after the ‘Use by’ date, because it might not be safe to eat.

If you save cooked food to be eaten later, cool it quickly, put it in the fridge and use within two
days – it is a good idea to date food, using stickers you can write on, so you always know how
old food is.

Check food with a short shelf-life every day to make sure it is still within its ‘Use by’ date.

Follow any storage instructions on food packaging.

Store dried foods (such as grains and pulses) off the floor, ideally in sealable containers, to allow
proper cleaning and protect them from pests.

Stock rotation

Remember the rule first in, first out to make sure that older food is used first. This will help to
prevent waste.
When you put food in the fridge or storeroom, make sure the foods with a sooner ‘Use by’ or
‘Best before’ date are at the front of the shelf, so they are used first.

Inspections
Environmental health officers will inspect your premises to make sure you are following food
hygiene rules. They might come on a routine inspection, or visit because of a complaint. Usually,
they will not tell you in advance that they are coming.

How often your business is routinely inspected will depend on the type of business and its
previous record. Some premises might be inspected at least every six months, others much less
often.

The environmental health officers will offer help and advice on food safety, and can take action
if they find that your standards of food hygiene are not good enough. In serious cases, action
might include closing the premises or prosecution.

The Food Standards Agency leaflet, Food law inspections and your business, explains the
inspection process and your rights of appeal if you are unhappy with the way an inspection has
been carried out.

Rules about Menus

 Displaying
prices
When you sell food or drink for people to eat or drink on the premises, you must make the prices
clear, for example on a price list or menu. You must include VAT in the prices when appropriate
(see Charging VAT below).

If you add a service charge (a percentage or amount), or if there is a minimum charge, you must
display this with as much prominence as the other prices.

Charging VAT

Whether or not you need to include VAT in your prices, and what rate of VAT, depends on a
number of different things. In general, businesses selling food or drink that is ready to eat or
drink should charge VAT at the standard rate.

But businesses that have a turnover (not just profit) below the ‘registration threshold’ do not
need to be VAT registered, and therefore do not need to charge VAT. See VAT registration on
page 17.

For businesses that are VAT registered, these are some of the main rules. If you sell food or
drink to be consumed on your premises, or if you supply hot takeaway food, you must charge
VAT at the standard rate on these products.
Normally, you do not need to charge VAT on cold takeaway food and drink, but there are some
products where standard-rate VAT always applies, such as crisps, sweets and bottled water.

Sometimes caterers that supply food to a school or hospital do not have to charge VAT.

For more information about when you need to charge VAT, contact Customs and Excise on 0845
010 9000 or visit www.hmce.gov.uk.

Describing food

You must describe food and drink accurately on menus, blackboards and adverts. Any
illustrations must accurately represent the food you are selling. Descriptions and illustrations
must not be misleading.

Descriptions like ‘fresh’, ‘home-made’ and ‘suitable for vegetarians’ can easily be used
misleadingly. Visit the Food Standards Agency website www.food.gov.uk, or contact the trading
standards service at your local authority, for advice on how to make sure your descriptions do
not mislead.

Products described as ‘sausages’ or ‘burgers’ on menus must contain a minimum amount of

meat, by law. Contact the trading standards service at your local authority for more information.

Labelling food
Usually, catering businesses do not have to label food. But if the food contains ingredients that
are irradiated, or derived from genetically modified (GM) soya or maize, you must say this either
on a label attached to the food, on a menu, or on a notice that is easily visible to the customer.

The same rules apply to food that you pre-pack to sell directly to the customer (for example,
sandwiches made and packed in advance in a sandwich bar). There are more extensive labelling
rules for retailers.

Contact the trading standards service at your local authority for more information.

Selling alcohol

You must have a licence to sell alcoholic drinks. To apply for a licence, contact the licensing
justices at your local magistrate’s court.

There are also rules about the quantities of beer, wine and spirits you can serve. Contact the
trading standards service at your local authority for more information.

Paperwork and Finances

Types of
business
Before you start trading, you need to decide what type of business you are setting up. The main
types of business are:
‘sole trader’, which means you will be self-employed partnership, with another person or more
than one person limited company

For more information about these different types of business, visit the Business Link website
(www.businesslink.org) or see the Small Business Service publication, Small Firms: Setting up
in Business.

Being self-employed

If you are self-employed, you must register with the Inland Revenue. As a self-employed person,
you are responsible for paying your own tax and National Insurance contributions. You will need
to fill in a tax return each year.

Contact your local tax office to find out more about what you need to do concerning tax, or call
the Inland Revenue’s helpline for newly self-employed people on 08459 15 45 15.

VAT registration

VAT stands for ‘Value Added Tax’. Businesses that are ‘VAT registered’ charge VAT on the
goods and services they provide. If your business has a turnover (not just profit) above the
‘registration threshold’, it must be VAT registered.

Some businesses choose to register for VAT, even though their turnover is below the registration
threshold. If your business is VAT registered, you will be able to reclaim the VAT you pay to
suppliers. And you will also need to charge VAT on certain things. See Charging VAT on page
15.

To find out more about VAT registration contact Customs and Excise on 0845 010 9000 or visit
www.hmce.gov.uk.

Record keeping

You must keep records of all your business income and expenses. This will help you to prepare
your accounts and fill in your tax return. Having a record of all the money coming in and going
out can also help you to run your business efficiently.

You must keep all records for at least five years from the latest date for sending back your tax
return.

If you would like advice about record keeping, contact the Inland Revenue or an accountant.
 Tips

Update your records regularly. This helps to avoid paperwork piling up and it will make it much
easier to prepare your annual accounts.

Keep receipts for all your business expenses. They are proof of how you spent the money.

Always keep business money and personal money separate.

Paying employees

If you are employing other people, you will need to work out, and pay, your employees’ tax and
National Insurance contributions. These come out of the wages you pay them. Contact the Inland
Revenue for more information.

Remember, you need to keep a record of everything you pay your employees, including wages,
payments and benefits.

You also need to make sure that you keep to employment law on issues such as employee rights,
working hours, minimum wages and equal opportunities. For more information, see Small Firms:
Employing Staff, which is published by the Small Business Service, or visit the Business Link
website (www.businesslink.org).

Law
 Lots of the
information in this booklet is based on legal requirements under a range of acts and regulations.
This logo is used throughout the booklet to show when you are required to do something by law.

This section explains the main laws that apply specifically to food businesses in Great Britain.
Similar laws apply in Northern Ireland.

Food Safety Act 1990

Under the Food Safety Act, you must not:

 sell (or keep for sale) food that is unfit for people to eat
 cause food to be dangerous to health
 sell food that is not what the customer is entitled to expect, in terms of content or quality
 describe or present food in a way that is false or misleading

Lots of the advice in this booklet will help you to obey the Food Safety Act. For example, the 4
Cs (see pages 8 to 11) can help you to maintain good hygiene in your business. This will help
you to prevent food becoming unfit or dangerous to eat.

It is important for you to be able to show the steps you have taken to ensure good food hygiene.
If you were prosecuted under the Food Safety Act 1990, there could be severe penalties. You
would need to convince the court that you had taken all reasonable steps to avoid the offence you
had been accused of (this is called a ‘due diligence defence’).
Food Premises (Registration) Regulations 1991

If you are planning to start a new food business, you must register your premises 28 days before
opening.

Food Safety (General Food Hygiene) Regulations 1995

These Regulations set out the basic hygiene rules that food businesses must follow in relation to
staff, premises and food handling. Many of these requirements are explained in the earlier
sections of this booklet.

Food Safety Regulations, a booklet published by the Food Standards Agency, contains more
detailed information about the regulations.

Food Safety (Temperature Control) Regulations 1995

Temperature control is all about keeping food at a temperature that will keep it safe (whether hot
or cold). The regulations cover the following issues:

the temperature at which certain foods must be kept which foods are exempt from specific
temperature control when the regulations allow flexibility

In Scotland, the regulations apply slightly differently to the rest of the UK, but the principles are
the same. For more information on rules in Scotland, contact the environmental health service at
your local authority.

Food safety regulations, a booklet published by the Food Standards Agency, contains more
detailed information on the regulations.