Opening a restaurant is no mean feat. There are a lot of steps in this process, not to mention the level of stress involved. If you're wondering how to start your journey, here are four essential steps in opening a restaurant.
1. Create a Business Plan
Creating a business plan is the first and, arguably, most important part of opening a restaurant. Without this plan, you won't be able to get very far. Start the process by creating your pitch. This should be the general idea of your restaurant, including its theme and the items you'll sell. Next, you'll want to define your target customers. Who do you think will be flocking to your restaurant? After that, you'll want to define your ideal location and competitors. Avoid moving in near similar stores, particularly ones that have roots in the community. Learning about competitors should also inspire more uniqueness. Finally, you'll need to outline your timeline, finance plan, restaurant equipment, marketing strategy and future plans.
2. Take Care of Legalities
In order to create a viable business, you'll need to take care of some legalities. An important piece to start with is your name. Once you have a name, you can get the rights and copyright it. Next, you'll need to get an employer identification number. This informs the IRS of your existence and allows you to hire workers. At some point during this process, you'll need to determine the ownership structure of your restaurant. If you want to stay independent, you may want to get a sole proprietorship. However, you might be able to avoid some financial difficulties if you share ownership. Finally, be sure to get any permits and licenses you need. As a restaurant, you'll need a good amount of these in order to serve food.
3. Organize Your Finances
While finances aren't exactly exciting, getting a financial plan together is essential for your restaurant's survival. An important part of this is creating your accounting documents. You'll need an income statement, a balance sheet and a cash flow statement. If these concepts sound completely foreign, don't worry! You don't need to handle everything. In fact, you may have the most success if you hire an accountant. This individual can handle the more confusing aspects of your monetary plan, as well as keep you informed when any prominent changes occur. If you're unable to hire a full-time accountant, don't give up on this idea. Many people utilize freelance consultants, particularly when starting out. Whoever you hire, make sure this person will give you brutally honest advice. Although the realities of money can be painful, you'll want to know the true state of your business before a disaster occurs.
4. Hire a Staff
Staffs are the backbone of any business. Therefore, hiring a great team is essential to your restaurant. You'll want to start by focusing on the management. This will allow you to micromanage early on, as well as solidify your restaurant's chain of command. Once you have a strong group of managers, you can then focus on the front and back of house workers. When it comes to the kitchen, you'll want hard workers with flexible hours. While you'll need some with substantial experience, less knowledgeable hires can start off on dishes or front of house help. When hiring servers, it's important to judge personality over a resume. Admittedly, experienced servers are helpful for new businesses. However, training a group of servers from scratch can create the perfect team. Hiring a mix of both is generally a good idea.
While opening a restaurant can feel exhausting, it's often very rewarding. Stay strong and enjoy bringing your vision to life!
1. Create a Business Plan
Creating a business plan is the first and, arguably, most important part of opening a restaurant. Without this plan, you won't be able to get very far. Start the process by creating your pitch. This should be the general idea of your restaurant, including its theme and the items you'll sell. Next, you'll want to define your target customers. Who do you think will be flocking to your restaurant? After that, you'll want to define your ideal location and competitors. Avoid moving in near similar stores, particularly ones that have roots in the community. Learning about competitors should also inspire more uniqueness. Finally, you'll need to outline your timeline, finance plan, restaurant equipment, marketing strategy and future plans.
2. Take Care of Legalities
In order to create a viable business, you'll need to take care of some legalities. An important piece to start with is your name. Once you have a name, you can get the rights and copyright it. Next, you'll need to get an employer identification number. This informs the IRS of your existence and allows you to hire workers. At some point during this process, you'll need to determine the ownership structure of your restaurant. If you want to stay independent, you may want to get a sole proprietorship. However, you might be able to avoid some financial difficulties if you share ownership. Finally, be sure to get any permits and licenses you need. As a restaurant, you'll need a good amount of these in order to serve food.
3. Organize Your Finances
While finances aren't exactly exciting, getting a financial plan together is essential for your restaurant's survival. An important part of this is creating your accounting documents. You'll need an income statement, a balance sheet and a cash flow statement. If these concepts sound completely foreign, don't worry! You don't need to handle everything. In fact, you may have the most success if you hire an accountant. This individual can handle the more confusing aspects of your monetary plan, as well as keep you informed when any prominent changes occur. If you're unable to hire a full-time accountant, don't give up on this idea. Many people utilize freelance consultants, particularly when starting out. Whoever you hire, make sure this person will give you brutally honest advice. Although the realities of money can be painful, you'll want to know the true state of your business before a disaster occurs.
4. Hire a Staff
Staffs are the backbone of any business. Therefore, hiring a great team is essential to your restaurant. You'll want to start by focusing on the management. This will allow you to micromanage early on, as well as solidify your restaurant's chain of command. Once you have a strong group of managers, you can then focus on the front and back of house workers. When it comes to the kitchen, you'll want hard workers with flexible hours. While you'll need some with substantial experience, less knowledgeable hires can start off on dishes or front of house help. When hiring servers, it's important to judge personality over a resume. Admittedly, experienced servers are helpful for new businesses. However, training a group of servers from scratch can create the perfect team. Hiring a mix of both is generally a good idea.
While opening a restaurant can feel exhausting, it's often very rewarding. Stay strong and enjoy bringing your vision to life!