Top 3 things you need to keep in mind before you open a restaurant

by Dhiren Bhatia / April 04, 2020

In this episode, I will talk about the things that an aspiring restaurant owner must look into before they open their restaurant. Based on my experience working with numerous restaurants over the last three years, I have learned first hand about implementing the right technology in a restaurant and how to make the business successful. I have leveraged on that knowledge to come up with the three major things that a new restaurant owner should do prior to opening their restaurant to ensure that it will succeed in the long term. 

The first thing one should consider is what their place in the market will be by analyzing the desired target customer. This can be achieved by carving out a clear niche based on their preferred taste, budget level, dining schedule, and aesthetics. This will enable a restaurant to stand out from new and existing competitors, and get a strong foothold in the market. The second thing to do would be to nail down the costs associated with opening the restaurant, and they include, rent, utilities, equipment, technology, construction, decor, staffing, marketing, and insurance.

The third and last consideration would be the projected sales and profitability of the restaurant. Once one has a basic understanding of all their potential costs, they can then start to estimate how much money their restaurant could make. Well researched sales projections can help build a strong roadmap for profitability, and to make those projections one must have a clear idea of how many customers can fit into their restaurant, what percentage of their restaurant would be full at any given time, the average meal time, the average sales generated per customer per meal, how long the restaurant would be open daily, and much more. Once one has their sales projections, they can take a harder look at their numbers to see if they can expect to operate at a profit. Tune in for more on that so you can gain the knowledge you need to ensure that you will be on the right track from the very beginning once you decide to open your own restaurant.

Key Takeaways:

  • The three things to keep in mind before opening a restaurant (01:22)
  • Ensuring profitability by niching down (02:22)
  • Getting a handle on the costs that will be necessary to bring your vision to life (03:16)
  • Budgeting for different forms of marketing for a successful launch (06:39)
  • Understanding how relevant restaurant insurance policies will affect your bottom line (07:26)
  • How to project sales and profitability and how important it is (08:15)

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Tags: Cloud Technology Restaurant Tips Retail Tips Small Business Tips POS Business Cloud software Software
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