With a clear cut menu, coherent theme, structured restaurant marketing plan, and detailed restaurant business plan, you can turn your restaurant dream into reality. But starting a restaurant business requires not only a lot of hard work and rigorous planning, but also a huge financial commitment. Exploring a variety of ways to start a restaurant business can help you begin.
Franchise
Franchises are very expensive and one of the reasons why restaurateurs choose this is the fact that they are turn-key ready. The kitchen layout, the dining room design, menu, even the marketing campaigns are all done for you. A franchise business plan or a franchise proposal is needed for bank or investor financing. You have to go over a restaurant franchise contract with your lawyer. In terms of franchise marketing plans, you don’t need to worry because that is built-in once the franchise process is finalized.
Partnership
In many instances, operating a restaurant business can be more successful if it involves a partnership venture. It is important for partners to agree on a variety of concerns that come along with owning and operating a restaurant business before sealing a partnership. You both should have a copy of the partnership proposal to study through. Before building a partnership, you must draft a partnership contract that spells out everything. Partnerships can be sealed with a handshake, but a binding legal partnership agreement to ensure your restaurant business runs smoothly.
Buy an Existing Restaurant
In buying an existing restaurant, first question that you should ask is: Why is the restaurant for sale? Next, you have to understand exactly, what it is that you are buying. Are you buying the actual restaurant, location and all or are you just buying the name of the restaurant, the location or just the equipment? Lastly, is the restaurant worth the price? Your answers to these questions may tell you if you should buy or pass. Just like opening your own restaurant business, there are several important factors to consider before buying an existing restaurant. You will need a purchase existing restaurant checklist. Location, and sales potentials for growth should all be examined too.
Partnership in Existing Restaurant
Ideally partners’ professional skills should complement one another, but not overlap too much. Once the decision is made you should secure a limited partnership agreement to address crucial areas such as the compensation, exit clauses, roles and responsibilities.
Open a Restaurant with no Money
In a study conducted by Ohio State University, 26% of new restaurants fail during the first year, and 80% fail within in the first five years. That is quite an alarming statistic. It makes you wonder how to figure out opening a restaurant with very minimal investment but makes you pause and contemplate how much does it cost to open a restaurant. The same study further confirms that it takes about three years to begin seeing a profit. The recommendation is to have sufficient funding and have a pre-opening planning chart to be successful in the restaurant business.
Food Truck
While a food truck business will typically cost less money than a sit-down restaurant, food truck business is still going to require a great deal of money. There are a lot of options to raise funding. Crowdfunding platforms for example have been made available to help you raise money online with small increments online. Your food truck restaurant plan should have a detailed food costs analysis to also help lenders understand how you’ll reach your target profits.
Share Space in an Existing Restaurant
How integrated or separate you want the spaces to be is up to the discussion of the owner and the tenant. A well-drafted shareholders agreement will help run and will play an important role in the continuity of your restaurant business, also to avoid expensive and time- consuming legal battles. This agreement should be reviewed periodically to ensure that it is in line with the current restaurant business environment. The creation of the declaration of the sole shareholder is also needed to secure that the criteria are met.
Provide Food for a Bar or Club
“Are you really the type of person who wants to own and run a bar or are you the kind of person who would rather deal with paperwork or sit in an office where you don’t have to talk to people? If you’re eyeing to own a bar/club, you should have a clear vision, keep doing your homework and learn the ins and outs of the restaurant business. Make all your efforts translate into a rewarding and financially successful enterprise. It’s very important that a delivery service agreement should also be secured so you and your supplier are in the same page.
Restaurants with Speciality Items
Your restaurants’ ‘specials’ can set you apart from the competition. It defines the character of your restaurant as well as help boost your profits. Customers expect to pay more for signature dishes, hence, you should be able to charge more for a special without impacting your sales. Sales should increase up to 15% for food items offered as specials, because they are being singled out. In preparing a profitable menu, restaurant menu engineering is needed to understand the psychology of the customers, indulge in a proper market research and to help you create a stellar restaurant menu.
Pick-Up or Delivery Service
This service is incredibly convenient as it allows consumers to order from home or work without having to travel. Adding a delivery service to your restaurant will help you stand out from the competition – or keep up with it. It’s always best to secure a food delivery business plan first.
Owning a restaurant entails a lot of work. You have to do your homework to better understand the restaurant business landscape. You can also tap many experts that can help you be a successful restaurateur. Find restaurant templates and documents here.