Going with renting in Suburban London, expect to pay somewhere in the neighbourhood

of £10-20 per square foot per month in rent (according to Bright Ideas Trust). That
might not sound like much, but 200 square feet is about the size of a one-car
garage! Or, to put it another way, a fine dining restaurant would need about 20
feet per person while a more casual restaurant would require about 10.

You would also need to allow about 40% of that space for the kitchen, storage and
bathrooms and the remaining 60 for dining space.

Location, Location, Location

So that’s – conservatively - £4,000 per month for a small London suburban space.
London business rental space is notoriously expensive, though, so you can lop that
price if you’re setting up your restaurant in Amsterdam or Prague, where rents can
be less than half what they are in London.

Across the Pond, Oklahoma recently topped a survey for the best place in America to
open a
restaurant.

Other Costs
Other costs include staff, equipment, licenses and permits, supplies (uniforms,
janitorial and ingredients), utility bills and possibly renovation.

Prices vary according to food type, restaurant size and location (among other
factors), but all told,the establishing costs run from the early thousands (say for
a food stall or food truck) to a six-figure sum.

This becomes clearer the more research you put into your business plan.

6. How to write a restaurant business plan

A good restaurant business plan combines your burning passion for the project with
solid research. You want readers of this business plan to become just as excited
about your restaurant as you are. And, of course, it will help you to understand
what you need to get started.

Here’s what to include:

1- A branded cover
Show the name of the eatery in the font and style that you intend.

2- The restaurant brand and philosophy

What kind of restaurant is it? Why this particular food? Why now? What inspired you
to do this? What sets the restaurant apart?

3- An example of the menu

Not only will this paint a clear picture of the restaurant, but it will spark the
imagination of the reader. Also, importantly, it will give an outline of the prices
charged and whether it’s a high-end or casual experience. Finally, the language
should convey what’s special about the dishes.
4- Service style
This is an opportunity to convey your views on service – how you’ll run an
efficient business and how you’ll keep the customers coming back for more. For
instance, is speed of service more important to you than a gentler, sit-down
experience? Will dishes be presented by the cook in a window, or will waiting staff
enter and exit the kitchen? Will you have a host? Or a sommelier?

5- The team
Who’ll be working there? Does your chef or manager have form in working in
successful restaurants? Don’t be afraid to brag.

6- Imagery
This could be a mood board or sample stock photos, intended to give an image of
what the restaurant and meals will look like.

7- Demographics
Who do you hope will be eating in your restaurant? Young professionals? Seasoned
diners? Early adopters of chic new dining trends? Do some research on who your
intended audience is.

8- Location
You may not know quite where the address is yet, but you should know the
neighbourhood or at least the kind of neighbourhood it will be in. Also, potential
investors may not know much about this area, so tell them: Describe other
businesses in the area, the kind of demographics who live there (Professionals?
Families? Young couples?) and the football: For example, is it right next to a busy
train station? Is it becoming known as a restaurant hub? Is it the kind of place
people go for breakfast, dinner or lunch?

9- The Market
Explain why your restaurant is filling a gap in the
need? Is it on the crest of a trend? If it’s a busy
explain why your restaurant is special. Don’t fudge
your restaurant you should be excited to talk about
market. Is it fulfilling a
market, acknowledge that and
on it: if you’re confident in
what makes it unique.

10-Marketing
Tell how you’ll spread the word (and if you already have). This might be local
advertising, a PR team, a press release, a launch, social media or something more
innovative. If you have an intended marketing budget and you know how to spend it,
this is the time to bring it up.

11-Financials
Arguably the most challenging part of this document, take the time to talk to an
accountant who’s experienced in the restaurant business while drawing up the
financials. You should have an outline of staff costs, rent, utilities, one-off
costs (like equipment), and supply costs. Also look at incoming – expected average
bill from a diner, restaurant capacity, expected peak times, whether you’ll partner
with a food delivery company, and margins on food, coffee and wines. These numbers
are not only essential for securing financing: They’ll also keep you in check and
warn you of potetial pitfalls in the future. At this stage, you might want to start
looking into paperwork and permits.

7. What permits are required to open a restaurant?

Paperwork is an inevitable part of business life, and this is especially the case
when it comes to opening a restaurant. After all, isn’t it reassuring to know that
your favourite eatery is compliant with legal, hygiene and public noise rules?

These are UK-specific, but many of the following will have an equivalent in every
territory (you will need licenses and insurance regardless of where in the world
you open!).

You will need:

Food hygiene certificate

This is important not only for opening your restaurant, but for keeping it open!
Inspectors can visit unannounced to ensure that your health, safety and hygiene are
up to scratch. And if the inspector is not satisfied that your restaurant business
is adhering to the official food safety regulations, they have the power to shut
you down.

Pest control regulations

Legally, you’re obligated to have “adequate procedures” for pest control in place.
They are also included in the hygiene regulations link above.

Food premises approval

This is a requirement for any restaurant handling meat, fish or dairy. (So, in
other words, essential unless you’re a strict vegan operation.) Find out more about
food premises approval applications.

Insurance
This would be public liability insurance. It’s a legal requirement, but you’ll be
grateful for this if anyone (for example) takes a fall in your restaurant.

Alcohol license
You can apply for a license for your local area. Obviously, this isn’t necessary if
you don’t serve any alcohol.

Building permit
Even if you move straight into a restaurant without making any renovations, you
might need a building permit for alterations in the future.

Planning permission
This doesn’t just apply to building a place from scratch. If you’re changing the
use of a building (i.e. if it wasn’t a restaurant when you rented it), you’ll need
to make sure that you’re allowed to use it to make and serve food. Here’s a link to
the planning permission paperwork.
8. How do I choose a restaurant’s premises?

A restaurant’s location is a balancing act – enjoying the maximum football possible

at an affordable
price.

Established vs Emerging Areas

By all means, if you can afford to open in a busy thoroughfare, you should. But
also keep an eye out for places with potential; quirky or distinctive entrepreneurs
and restaurateurs priced out of desirable areas often move into more affordable
ones, creating new restaurant districts. Classic examples include New York’s
Brooklyn, London’s Camden or Dublin’s Stoneybatter.

Parking
Parking is undeniably a plus, but not necessarily essential if the restaurant has
good public transport
links or if it’s in close walking distance to a large target market.

Market Gaps in the Area

Another consideration is clear gaps in the market: Examples might be a busy

shopping area with nowhere for brunch; a street full of restaurants with limited
vegan or vegetarian options; or an office district with nowhere for tasty, fast
lunches.

Converted Spaces vs Old Restaurant Premises

When it comes to the premises itself, yes, converted spaces are a possibility and
they can have great character. But in general, you’re better off using a space
that’s previously been used as a restaurant: It will have a built-in infrastructure
and appropriate layout.

Light and Space

Consider natural light, ventilation, how many people can comfortably dine and work
there (in winter and summer!). It should have space for waiting staff to work and
manoeuvre between tables, and then cooking and prep space. What looks enormous on
first glance might quickly shrink once you add tables, a bar, a host’s station, a
coffee dock and other equipment. Don’t forget how many diners your business plan
says you need.

This applies to back of house too – where a full, stocked kitchen; staff; a large
fridge (likely walk-in
size) and storage will be.

Bring a Friend!
And finally, it’s recommended – if not essenitial – to bring someone with
restaurant experience with you to check out any potential location. They will see
potential advantages or problems that might not be obvious to a newcomer.

Your New Career Starts Here

There’s a lot to consider before opening night of your new restaurant, but as many
of our graduates have proven, it can be done. The longest journey starts with a
single step. Whether that step involves creating a perfect main course, seeing a
gap in the market or something else, is up to you – the person with the vision.

We have a range of professional cookery courses and available at Le Cordon Bleu,

for every stage and
direction of a hospitality career.

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