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Laying The Groundwork: Determine Whether Owning Your Own Business Is For You. Most Restaurant and Coffee Shop
Laying The Groundwork: Determine Whether Owning Your Own Business Is For You. Most Restaurant and Coffee Shop
1.
1
Determine whether owning your own business is for you. Most restaurant and coffee shop
owners are driven by a passion for what they do. This carries them through the hard times and
the risk of failure that accompany all small business ventures.[2]In addition to having a passion
for your business, you should make sure that your personality is a good fit for the uncertainties
of business ownership.[3][4]
For example, are you comfortable with the unknown? Can you take risks that
may or may not pay off?
How comfortable are you being a self-promoter? Can you “sell” your business to
strangers and your community?
Are you willing to work long and/or unusual hours to keep your business afloat?
Are you comfortable being the person responsible for your success or failure?
Do you enjoy problem-solving and creative thinking?
.
2
Check out the environment. The environment in which you open your restaurant or coffee
shop has a significant effect on its success. It’s very important to consider factors such as the
location, how fast you can grow the business, and what makes your business different from its
competitors.[5]
You will need to do significant market research in order to learn about where the
best location would be, what types of customers you might attract, and what customer needs
are currently not met that you could meet.[6]
Sources such as the National Restaurant Association and Nation’s Restaurant
News can be helpful to obtain industry data.[7][8]
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3
Talk to other small business owners in the area. Networking with other owners of
restaurants and coffee shops will help you understand more about the process from a first-hand
source.
It’s a good idea to ask about the challenges and difficulties they faced, as well as
what strategies they used to overcome those challenges.
Remember that small business networking is a two-way street. Make sure that
you thank people who talk with you for their time, and offer to help them once your own
business is up and running. This will also help generate goodwill toward your business.
.
4
Decide on your market. You need to decide who your target audience is. Even though most
people eat out at least occasionally, there is no way that you will be able to appeal to everyone.
Trying to do so is actually a recipe for failure. Focus on the niche that your restaurant or coffee
shop can appeal to.[9]
For example, a restaurant that serves steaks, Chinese food, Italian pasta, and
fresh seafood would probably be confusing to most customers. Businesses that specialize in a
particular area are more likely to draw a following. Pick a few things for your business to do and
do them impeccably.
You should also think about the demographic in the area where you want to open
your business. Who frequents the existing businesses in the area? Millennials, who often prefer
fast/convenient food or quirky, locally sourced food? Families, who often focus on value for the
money and family convenience? Professionals, who often spend on “fine dining” experiences?[10]
You want to look for a balance between filling an unexploited niche while not
aiming your business at customers you’re unlikely to draw.
You should also decide whether you want to open a “fast food” restaurant, a
midscale restaurant, or an upscale restaurant. Knowing whether your demographic is more
likely to be interested in value or fine-dining “experiences” will help you determine what type of
business will be most successful.
.
5
Figure out your concept. All restaurants need a “concept,” or something that lets customers
know what to expect. This doesn’t have to be highfalutin or expensive, but it should present a
clear “vision” of what your restaurant will offer.[11]
For example, if you love your grandmother’s fried chicken and soul food,
centering your restaurant on that tradition will be your “concept.” You wouldn’t also offer
hamburgers or Korean food at your soul food restaurant.
Consider your location as well. For example, a restaurant centered around “fresh
seafood” makes sense when you live near a river or ocean, but less sense if you’re far inland
from any source of fresh seafood. The cost of those ingredients will be higher, and it will be
harder to find quality.
Coffee “concept” shops are increasingly popular as well. Customers are
interested in buying coffee that is fair-trade, organic, and other markers of quality. Decide
whether you want to be more of a “boutique” coffee experience or more of a traditional
“doughnuts and coffee” venture. Stick with that identity.[12]
.
6
Determine whether you want to start from scratch or buy an existing business.While the
failure of independent restaurants is much lower than commonly thought -- only about 30% in
the first year -- the turnover rate is significantly higher than that. Owners of restaurants and
coffee shops frequently look for a new owner to hand the business to.[13]If the business is
already fairly successful, taking over an existing business could be a good idea.
If you choose this route, make sure you still do your research to learn why the
owner wants to sell. Is the business profitable? Does it have a steady stream of customers?
Does the owner just want to retire, or is the business having trouble that the owner wants out
of?
Another option is franchising. Opening a franchise of a successful restaurant
chain can be a good way to achieve instant brand recognition and access a loyal customer
base. However, you will not have as much control over your product and operations as you
would if you open an independent business.
.
7
Figure out your budget. Starting a restaurant or coffee shop requires start-up capital. How
much money you’ll need can vary dramatically, depending on your location, the scale of your
venture, and how much investment your property requires. There are several online calculators
you can use to get a rough idea of starting costs.[14]
It’s a good idea to keep your ambitions small, at least at first.[15] Once you have
built your reputation on your menu, you can expand.[16] You could start as small as a kiosk
focused on providing one delicious dish or beverage type.
Make sure you research average salaries and wages in your area as well. You
will need this information when you write your business plan.
Plan on not turning a profit for at least the first six months. Set aside enough
money to cover your personal expenses for six months at minimum.[17]
.
8 Write a business plan. The US Small Business Association has excellent and extensive
advice on writing a business plan on their website. A fully developed business plan will make
sure there are no nasty surprises once you begin the process of opening your restaurant or
coffee shop.[18]
A business plan has many elements. It’s important to have a very clear idea of
your restaurant’s identity, including what food it will serve, its location, and its long- and short-
term goals.
Present a clear breakdown of all costs. State the amount of the lease or
mortgage, how much salaries and wages will cost, how much benefits packages will cost, how
much furniture and equipment will cost, how much your food products will cost, etc.
Develop a clear marketing strategy. You should be absolutely clear on who your
target market is and what actions your business will take to draw them. You should know who
your competitors are and how you will compete with them. In this section, you should also
present the average costs of the types of marketing you’ll use, as well as any licensing and
permit requirements.
Include your menu. Make sure that you know exactly what your restaurant will
serve. Know what distributors you will purchase food from and how much items will cost.
Consider these costs when pricing menu items.
.
9
Secure funding. Once you have a solid business plan in place, you’ll need to secure funding.
Starting a restaurant or coffee shop can be done with just a few thousand dollars,[19][20] or it can
require several hundred thousand dollars.[21] Don’t borrow or spend more than you need.
You can use personal resources, such as savings accounts and credit cards, as
start-up cash.
You can also go in with a partner or two, particularly if your business plan is
convincing. Just make sure you draw up a clear partnership agreement document.
The US Small Business Administration (SBA) can connect you with lenders and
other programs to support small businesses.
Part 2
Making the Initial Decisions
1.
1
Consult with a professional. You will need to have some kind of legal structure for your
business. Consulting with an expert, such as a small business attorney or a Small Business
Administration office, will help you make sure that your business gets what it needs to succeed.
A small business attorney can help you figure out what the best structure will be
for your needs.[22] An attorney will also be able to guide you through the process of obtaining
permits and licenses, as well as ensuring that you comply with any regulations in your area.
The US Small Business Administration has District Offices throughout the
country that offer free counseling and advice about how to start a small business. You can find a
local office on their website. They also have over 900 “Small Business Development Centers”
(SBDCs) that can help you plan and execute your business decisions.
Many restaurant and coffee shop owners go with a Limited Liability Company
(LLC), which protects your personal assets in case the business runs into trouble.
While you can run your business as a “sole proprietorship,” this is usually not a
good idea, as your personal assets are usually on the line if your business incurs liabilities.
You may also want to consult with a small business accountant. The work of
running your restaurant may be so much that you need to hand the bookkeeping over to
someone else.[23]
2
Research local zoning laws. Restaurants and coffee shops are small businesses, so they
must be located within a commercial zone. You must acquire the necessary permits and other
documentation before proceeding.[24]
Most areas will not allow you to sell food or beverages unless you have a
commercial kitchen onsite. This means that home-based businesses are usually out.
The SBA has a “Permit Me” tool that will help you determine what licenses and
permits your state requires.[25]
.
3
Research your local food safety laws. Health codes vary depending on your location, but in
order to establish a business that will sell food and/or drinks, you must comply with all the local
regulations regarding food safety.[26]
Be aware that you will generally need to submit your application to your local
environmental health department at least a month in advance of opening your business.[27]
You should also be aware of any particular regulations involving the sale of
alcohol. While laws vary depending on your location, the laws surrounding alcohol are generally
complex, so make sure you understand them.
.
4
Find a location. You’ll want to make sure that your restaurant or coffee shop is in a convenient,
easily accessible location.[28] Often, nearby businesses will help generate foot traffic that can
benefit your business too.
5
Purchase insurance. Restaurants and coffee shops have many areas that could open you up
to liability, including worker safety, food safety, and liquor liability. Many areas require any
restaurant or coffee shop that sells alcohol to carry liquor liability insurance, which will protect
your business against lawsuits or liability from wrongdoing resultant from alcohol consumed at
your business. In most areas, you’ll also need to carry workers compensation insurance.[32]
1.
1
Listen to your instincts. Once you’ve done your research, listen to your gut when making
business decisions. Don’t worry about what is “trendy” or the latest “must-have.” Focus on the
important things, such as good quality food or coffee, excellent service, and a solid location.[34]
Don’t let other people push you around with their own ideas. Remember that
what works for one business may not work for another. Just make sure that you’re basing your
decisions on research.
.
2
Look for bargains. You don’t have to spend a fortune to establish a small restaurant or coffee
shop, especially if you shop smart. Repurpose whatever you can. Buy wholesale from
restaurant supply shops. See if contractors and other service providers will work for barter.[35]
If you need to establish branding for your business, consider contacting a local
design school or university with an advertising department. Often, students will be glad to
develop excellent low-cost work for you in exchange for getting to use it in their portfolios.
Leasing big-ticket items such as refrigerators and espresso machines, at least at
first, can help cut down on start-up costs. This means you will be able to keep lower prices,
which will mean happy customers.[36]
You may also be able to find equipment offered on sites like craigslist. Just make
sure that it is in good working order.[37]
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3
Design your space with care. The dining area of your restaurant or coffee shop is the place
where your customers will spend their time. It communicates your restaurant’s identity and is
crucial to customers’ impressions of your business. Usually, between 45-65% of your floor
space will be devoted to the dining area.[38]
Visit other restaurants or coffee shops in your area. Observe how customers
interact with the space. Does it seem comfortable? Efficient? Inviting?
Make sure you have flexible seating. Booths for larger groups should be placed
along the walls. Remember that 40-50% of customers arrive in pairs. 30% come alone or as a
party of 3. Just 20% of guests come as groups of 4 or more. Use primarily tables for two that
you can push together when necessary.[39]
For coffee shops, make sure that you have a comfy seating area that’s conducive
to working and socializing. A mix of chairs and couches with 2-person tables will create an
inviting environment in which customers will want to stay for awhile.[40]
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4
Hire staff. Don’t overhire at first. Be willing to fill in gaps yourself until your business is profitable
enough for you to hire more personnel.[41] You can advertise online, in classifieds, and through
word-of-mouth.
Create a training guide so that your employees know what is expected of them.
Setting clear roles and expectations will help things run smoothly.[42]
For coffee shops, hire well-trained baristas. Coffee quality is the live-or-die
element of coffee shops. Even if you buy the best espresso in the world, if your baristas don’t
know how to prepare it, your coffee won’t draw customers.
Be aware of turnover. Food service is very prone to employee turnover, where
employees join and leave a company within a short amount of time. Make sure you have ways
to quickly hire new people when you need to.[43]
Make sure you’re aware of and comply with your local Department of Labor
regulations.[44]
Even if you hire family, make sure that each person has a clear understanding of
their duties. All laws and regulations apply to family-member hires, too.
5
Make a list of every single supply you need. Before you choose a supplier, you have to know
every single product that your business will need. This ranges from obvious items like “eggs”
and “tables” to tiny details, like “napkin holders” and “toilet paper.” Make a comprehensive list so
that you know exactly what your business will need each week.[45]
6
Find your suppliers. You will want to provide your customers with the best-quality products for
their money. There is a wide variety of suppliers out there, from those who specialize only in
seafood to those who will do everything from toilet paper to T-bones. If you talked with other
restaurant and coffee shop owners, you may be able to get recommendations from them.
[46]
Make sure you balance between cost and quality.
Start with a list provided by your local branch of the National Restaurant
Association.
Check out any potential supplier with your local Better Business Bureau. If a
business has a history of complaints, steer clear.[47]
Comparison shop. Ask for price quotes on everything you’re likely to need and
compare between suppliers.
Consider your staff’s talents. It may be more cost-effective for your staff to clean
its own seafood, but if you don’t have anyone who knows how to do that, it won’t actually save
you any money. If your staff has skills like bread-baking, though, make use of them.
Make sure the company you choose is responsive. If they can’t get something to
you in time, will they let you know? Are they conscientious about delivery schedules? Do they
reply to inquiries in a timely manner?
7
Test your menu before you open. Even the best menus need fine-tuning at times. Host a
small party for people whose opinions you trust and prepare your menu offerings for them. Ask
for their feedback, and make changes as necessary.[48]
Tell people what the price will be at the restaurant and ask them how they think
about it. You may need to bring your prices down, or you could be pleasantly surprised to learn
you can charge more while still offering value.
Part 4
Growing Your Business
1.
1
Market your business. Your business plan should already have detailed marketing plans in
place. Your goal is to make your business visible to customers and provide a compelling reason
for them to visit. Form social media accounts, run ads in your local papers, and make yourself a
public figure by visiting locales like fairs and farmers markets.[49]
Gift-certificate giveaways and “free food” promotions are very popular ways to
draw attention to your business.[50]
You can also donate gift certificates as prizes for local charities, nonprofit, and
professional organizations. This will generate goodwill toward your business and spread the
word about your business.
Consider inviting your local food critic to your business. While you can’t control
what they write, it’s a good way to get some press for your business.
Loyalty cards work well for fast-food restaurants and coffee shops.[51]
.
2
Stay in touch with customers. Even if you meet with success once you open up, don’t rest on
your laurels. Give surveys. Ask your customers what they like and what they don’t like about the
business. Ask what they would like to see that you aren’t currently doing. Ask how they feel
about your location, your interior, your menu offerings. Listen to what your customers say,
regardless of how it may make you feel.[52]
You can even incentivize these surveys by offering a free product or meal if
customers return the survey to you.
.
3
Keep an eye on expenses. Once you’re up and running, the biggest day-to-day expense you
face will be the cost of food and beverages. However, you should make sure that your food and
beverage costs don’t add up to more than 25-40% of your revenues.
4
Upsell. This is especially important for coffee shops, where the average transaction is fairly
small (usually, around $3). Make sure that you also have plenty of accompaniments, such as
pastries and muffins, and encourage your staff to recommend them to all customers.[53]
Coffee should not be more than about 40% of your weekly sales volume.
Don’t go overboard with the accompaniments, though. Have a good selection,
but you don’t need to have six types of quiche and twelve types of cookie. Trying to sell too
much of a variety increases costs without increasing benefits.
Submit
Will using Combat gel keep roaches from coming back after you get rid of them?
Tips
Parlay what you currently do into the shop. A web programmer could offer services,
teach classes or create games for the customers to play.
If possible, work in a similar restaurant for up to two years before you start one of your
own.
Save some money on your decoration costs and help the local starving artists showcase
their original work.
Support local musicians. Let them sell their music/mix tapes, etc. Play the good stuff on
the overhead speakers.
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
What's Inside
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
Shifting demographics and changing lifestyles are driving the surge in food-
service businesses. Busy consumers don't have the time or inclination to
cook. They want the flavor of fresh bread without the hassle of baking. They
want tasty, nutritious meals without dishes to wash. In fact, the rise in
popularity of to-go operations underscores some clear trends in the food-
service industry. More and more singles, working parents and elderly people
are demanding greater convenience when it comes to buying their meals.
Though the future looks bright for the food-service industry overall, there are
no guarantees in this business. Even the most successful operators will tell
you this isn't a "get rich quick" industry. It's more like a "work hard and make a
living" industry.
A hard reality is that many restaurants fail during their first year, frequently
due to a lack of planning. But that doesn't mean your food-service business
has to be an extremely complex operation. In fact, the more streamlined you
can make it, the better your chances for success. Paul Mangiamele, president
and CEO of Bennigan’s, says, “Although we all love it, this business is very
difficult. It’s a wonderful business, a great business, a satisfying business. It’s
a lucrative business. But there are a thousand moving parts, and you need to
be knowledgeable of all of them.”
To help you get started, we've compiled this thorough, but easy-to-digest,
guide to starting your own food business. Whether your dream is to open a
traditional American diner, a New York-style pizzeria, a Chinese buffet, a deli
for busy lunch-goers or a local coffeehouse/hang-out spot, start your business
research here.
Target Markets
No single food-service operation has universal appeal. This is a fact that many
newer entrepreneurs have trouble accepting, but the reality is that you will
never capture 100 percent of the market. When you try to please everyone,
you end up pleasing no one. So focus on the 5 or 10 percent of the market
that you can get, and forget about the rest.
With that said, who is eating at restaurants? Let's look at the main market
categories of food-service business customers:
Seniors. The senior market covers the large age group of people age
65 and older. Generally, the majority of seniors are on fixed incomes and
may not often be able to afford upscale restaurants often, so they tend to
visit family-style restaurants that offer good service and reasonable prices.
"Younger" seniors are likely to be more active and have more disposable
income than "older" seniors, whose health may be declining. Seniors
typically appreciate restaurants that offer early-bird specials and senior
menus with lower prices and smaller portions, since their appetites are less
hearty than those of younger people.
What's Inside
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
For example, are you an early riser, or do you prefer to stay up late and sleep
late? If you like--or at least don't mind--getting up before dawn, your niche
may be a bakery or a casual breakfast-and-lunch operation. Night owls are
going to be drawn to the hours required for bar-and-grill types of restaurants,
fine-dining establishments and even pizzerias.
What's Inside
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
Do you like dealing with the public, or are you happier in the kitchen? If you're
a people person, choose a food-service business that gives you plenty of
opportunity to connect with your customers. If you're not especially
gregarious, you'll probably lean more toward a commercial type of business,
perhaps a bakery or even a catering service, where you can deal more with
operational issues than with people.
Some other types of questions to ask yourself include, Do you have a passion
for a particular type of cuisine? Do you enjoy a predictable routine, or do you
prefer something different every day? Are you willing to deal with the
additional responsibilities and liabilities that come with serving alcoholic
beverages?
As you do this self-analysis, think about your ideal day. If you could be doing
exactly what you wanted to do, what would it be?
Once you've decided on the best niche for you as an individual, it's time to
determine if you can develop a niche in the market for your food-service
business.
Working in a Restaurant
Dealing graciously with customers and playing the role of elegant host are
only part of a restaurateur's many duties. Food-service business operators
spend most of their time developing menus; ordering inventory and supplies;
managing personnel; creating and implementing marketing campaigns;
making sure their operation is in compliance with a myriad of local, state and
federal regulations; completing a wide range of paperwork; and performing
other administrative chores. Certainly the financial opportunities are there--as
are the fun aspects of the business--but starting, running and growing a food-
service business is also hard work.
Regardless of the type of food-service business you intend to start, the best
way to learn the ropes is to work for a similar operation for a while before
striking out on your own. Doing so will give you significant insight into the
realities and logistics of the business.
Ideally, you should work in a restaurant similar to the type you want to open.
You may find you don't like the business. Or you may find you're more suited
to a different type of operation than you originally thought. Hopefully, you'll
discover you're in exactly the right place.
What's Inside
Introduction
Creating a Menu
Hiring Employees
Regardless of how much you need, you will definitely need some cash to start
your food-service business started. Here are some suggestions of where to go
to raise your startup funds:
Choosing a Location
Depending on how much money you have to invest in your food-service
business and the particular type of business you choose, you can spend
anywhere between $70,000 and $1.5 million on a facility.
What's Inside
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
Not every food-service operation needs to be in a retail location, but for those
that do depend on retail traffic, here are some factors to consider when
deciding on a location:
History of the site. Find out the recent history of each site under
consideration before you make a final selection. Who were the previous
tenants, and why are they no longer there?
Terms of the lease. Be sure you understand all the details of the lease,
because it's possible that an excellent site may have unacceptable leasing
terms.
Much of your dining room design will depend on your concept. It will help you
to know that studies indicate that 40 to 50 percent of all sit-down customers
arrive in pairs; 30 percent come alone or in parties of three; and 20 percent
come in groups of four or more.
To accommodate the different groups of customers, use tables for two that
can be pushed together in areas where there is ample floor space. This gives
you flexibility in accommodating both small and large parties. Place booths for
four to six people along the walls.
Creating a Menu
As you put together a plan for your food-service business, be aware of some
of the trends in terms of menu content and design: These factors could--and,
in fact, should--influence the type of food-service business you open.
What's Inside
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
At the same time, be sure to keep the kids in mind as you plan your
selections. If families are a key part of your target market, you'll want a range
of four or five items in smaller portions that youngsters will enjoy. If you serve
snack items as well as entrees, note that kids are choosing healthier snacks
more often than they did a few years ago, thanks to concerned parents. For
example, while both sweet and salty snacks remain popular, yogurt is the
fastest growing snack food based on consumption frequency among kids
ages 2 to 17. While most restaurants still offer fixed kids' meals, you might
consider allowing your young diners to choose among a selection of nutritious
options.
Though menu variety has increased over the years, menus themselves are
growing shorter. Busy consumers don't want to read a lengthy menu before
dinner; dining out is a recreational activity, so they're in the restaurant to relax.
Keep your number of items in check and menu descriptions simple and
straightforward, providing customers with a variety of choices in a concise
format. Your menu should also indicate what dishes can be prepared to meet
special dietary requirements. Items low in fat, sodium and cholesterol should
also be marked as such.
Safety Regulations
Though we don't think of food service as heavily regulated an industry as
something like medical services or public utilities, the reality is that many
aspects of your operation are strictly regulated and subject to inspection. Fail
to meet regulations, and you could be subject to fines or get shut down by
authorities. And if the violations involve tainted food, you could be responsible
for your patrons' illnesses and even death. Issues such as sanitation and fire
safety are critical. You must provide a safe environment in which your
employees can work and your guests can dine, follow the laws of your state
on sales of alcohol and tobacco products, and handle tax issues, including
sales, beverage, payroll and more.
Most regulatory agencies will work with new operators to let them know what
they must do to meet the necessary legal requirements. Your state's general
information office can direct you to all the agencies you'll need to be
concerned with.
Hiring Employees
One of the biggest challenges businesses in all industries face is a lack of
qualified labor. As the food-service industry in general continues to grow and
thrive, the demand for workers in an already-diminished labor pool is also
increasing. Finding qualified workers and rising labor costs are two key
concerns for food-service business owners.
What's Inside
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
Next, you need to establish a pay scale. You should do research to find out
what the pay rates are in your area. You'll want to establish a minimum and
maximum rate for each position. You'll pay more even at the start for better
qualified and more experienced workers. Of course, the pay scale will be
affected by whether or not the position is one that is regularly tipped.
Every prospective employee should fill out an application--even if it's someone
you already know, and even if that person has submitted a detailed resume. A
resume is not a signed, sworn statement acknowledging that you can fire the
person if he or she lies about his or her background; the application, which
includes a truth affidavit, is. The application will also help you verify the
applicants' resumes, so you should compare the two and make sure the
information is consistent.
Here are some tips to help you find and keep great people:
Report tips properly. The IRS is very specific about how tips are to be
reported; for details, check with your accountant or contact the IRS.
To get the quality of manager you want, you'll have to pay well. Depending on
your location, expect to pay a seasoned manager $35,000 to $55,000 a year,
plus a percentage of sales. An entry-level manager will earn $28,000 to
$32,000 but won't have the skills of a more experienced candidate. If you can't
offer a high salary, work out a profit-sharing arrangement-it's an excellent way
to hire good people and motivate them to build a successful restaurant. Hire
your manager at least a month before you open so he or she can help you set
up your restaurant.
Chefs and cooks. When you start out, you'll probably need three
cooks--two full time cooks and one part time. Restaurant workers typically
work shifts from 10 a.m. to 4 p.m. or 4 p.m. to closing. But one lead cook
may need to arrive early in the morning to begin preparing soups, bread
and other items to be served that day. One full-time cook should work days,
and the other evenings. The part-time cook will help during peak hours,
such as weekend rushes, and can work as a line cook during slower
periods, doing simple preparation. Cooking schools can usually provide you
with leads to the best in the business, but look around and place newspaper
ads before you hire. Customers will become regulars only if they can expect
the best every time they dine at your restaurant. To provide that, you'll need
top-notch cooks and chefs.
Salaries for chefs and cooks vary according to their experience and your
menu. Chefs command salaries significantly higher than cooks, averaging
$1,300 to $1,800 a week. You may also find chefs who are willing to work
under profit-sharing plans. If you have a fairly complex menu that requires a
cook with lots of experience, you may have to pay anywhere from $575 to
$650 a week. You can pay part-time cooks on an hourly basis; check around
for the going rate in your area.
Ask every new customer how they found out about you, and make a note of
this information so you know how well your various marketing efforts are
working. You can then decide to increase certain programs and eliminate
those that aren't working.
What's Inside
Introduction
Choosing a Location
Creating a Menu
Hiring Employees
Next, step back and take a look at each element in your facility. Everything
from the parking lot to the interior decor to the printed items contributes to
your marketing message--and each should be an accurate reflection of what
that message is.
One cheap and easy way to promote your food-service business is by giving
away gift certificates--such as dinner for two, coffee and bagels for 10, or a
free pizza. Call local radio stations that reach the demographics of your target
market and ask to speak to their promotions manager. Offer to provide gift
certificates or coupons to use as prizes for on-air contests and promotions.
Your company name and location will be announced several times on the air
during the contest, providing you with valuable free exposure, and it's always
possible that the winner will become a paying customer.
You can also donate coupons and gift certificates to be used as door prizes at
professional meetings or for nonprofit organizations to use as raffle prizes.
Just be sure every coupon or gift certificate clearly identifies your business
name, location, hours of operation and any restrictions on the prize.
Some other promotional methods you can try include local event or sporting
team sponsorships, discount coupon books, frequent-dining clubs, menu
promotions and contests.
The Menu Maker: Having trouble creating that memorable menu for
your restaurant? This site specializes in spicing up menus to increase your
profits, complement your eatery and reinforce your desired image. It also
offers tips for menu presentation and helps determine your menu needs.