So, you want to open a restaurant?
Restaurants have been a big part of my life for the last 7 years or so. I shudder now at how naive I was when I opened the first back in 2017. After many, largely avoidable mistakes, the first site managed to grow to multiple locations, but it would have been a lot easier had I known then what I know now. Below I list the 7 things I now consider before opening a new concept;.
Before investing your time and money, conduct a thorough financial feasibility study to ensure your restaurant model is viable. This study should include a detailed analysis of your startup costs, projected revenue, and ongoing expenses. Consider factors such as rent, equipment, inventory, staff salaries, and marketing expenses. A well-crafted feasibility study will help you determine if your concept is financially sound and sustainable. Your forecasting will be educated guesswork, but the more information you have available the better. Ensure there’s a buffer when you open to avoid huge amounts of stress (my account was on £500 the day we opened restaurant 1 & we would have failed quickly had it not, very luckily, got off to a flying start!)
Define What Success Looks Like. Having a clear vision of what success means to you is essential. Is this a lifestyle business? Are you looking to scale? This vision will inform how you setup and operate the business. For me, being able to quantify the impact we were making as a mission-led restaurant was important to engage key stakeholders, so we made a point of aiming for a set number of customers served per week, as we could relate this to an environmental impact that aligned with our mission as a business.
Test Before Opening a Full Site. Before committing to a full-fledged restaurant, consider testing your concept through supper clubs, pop-ups, or takeovers. These low-risk options allow you to gauge customer response, refine your menu, and build a loyal following. Testing your concept in a smaller setting can provide valuable insights and help you make necessary adjustments before investing in a permanent location. Remember, go crazy on these events! You can really get creative and test things without fear of failure or cost!
Ensure Alignment with Partners & Stakeholders. If you have partners or stakeholders involved in your restaurant venture, it's crucial to ensure everyone is aligned with the vision, goals, and operational strategies. Clearly define roles, responsibilities, and expectations to avoid conflicts down the road. Regular communication and transparency are key to maintaining a strong partnership and navigating challenges together. I have lost considerable money & time on a successful restaurant where the parents weren’t aligned.
Conduct a Proper Market Study. Understanding your target market is essential for the success of your restaurant. Conduct a comprehensive market study to identify your ideal customer profile, analyze competitors, and assess the demand for your concept in the chosen location. This research will help you tailor your menu, pricing, and marketing strategies to attract and retain customers effectively. I’ve seen amazing concepts fail simply by picking the wrong location for their concept.
Create a Comprehensive Pre-Opening Checklist. Opening a restaurant involves numerous tasks and details that can easily be overlooked. Create a comprehensive pre-opening checklist to ensure nothing falls through the cracks. This checklist should include items such as obtaining necessary licenses and permits, hiring and training staff, purchasing equipment and inventory, and setting up your point-of-sale system. A well-organized checklist will help you stay on track and avoid last-minute surprises. Funny thought, I actually opened my first site with no salt & pepper shakers, noticing on the opening night when someone asked!
Work with Experts and Focus on Your Strengths. Running a restaurant requires a wide range of skills, from culinary expertise to financial management and marketing. Don't hesitate to seek the guidance of experts in areas where you lack experience or knowledge. Surround yourself with a strong team of professionals, including a skilled chef, experienced managers, and reliable suppliers. By focusing on your strengths and delegating tasks to experts, you can create a well-rounded and efficient operation. If I had hired a consultant at the start I would have saved a considerable amount of money paying for the mistakes I could have avoided!
Have Fun! Finally, remember to have fun throughout the process of opening your restaurant. While it can be stressful and challenging at times, it's essential to maintain a positive attitude and enjoy the journey. Celebrate milestones, foster a supportive work environment, and take pride in your accomplishments. Your passion and enthusiasm will shine through in the dining experience you create for your customers. I have spent a lot of time on the floor, in the kitchen and eating in my spaces, if you’re not the number 1 fan, how can you expect other people to love it?
Opening a restaurant is one of the most difficult things you can do in business, but also one of the most rewarding. To see a space come to life, based on an idea you had, is a truly unique feeling! Good luck!