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If you are passionate about the restaurant business, go for it. The motive should not be only making money out of it. Good planning leads to good execution. Opening a restaurant requires a lot of guts and investment. You visualize and analyze things. When it comes to implementation, all look at the stake. When you are doing it for the first time the hurdles seem to be very challenging. If you are scaling up for another location, it seems quite easier. Here is a brief overview of what requires you to consider for a successful launch of a restaurant.
Market research
Do the market research before entering into the venture. You can start market research based on case studies of the relevant subjects. What your competitors are good at and what they are not good at, check on their food pricing etc. You just have to get an edge over others that you are offering something better. You have to present that USP (Unique Selling Proposition). Otherwise, why would they listen to you?
Location
Location decides the fate of the restaurant. Most of the restaurants fail because of the bad location. Choose the location smartly. Restaurant located right off the busy highway in the outskirt of the cities often do well because they are spacious, visibly accessible and enough parking space. The localized city’s restaurant goers too don’t mind going some extra miles away from home for a memorable long drive.
Write a Stellar Business Proposal to investors for raising fund
Opening a new restaurant or scaling up your existing restaurant always require a lot of investment. Acquiring fund from the third party is no easy job. Investors need to be assured that you are working on a profitable venture and would recover the committed amount.
For this, you need to present a saleable business proposal that will show the company details, market analysis with some concrete evidence, growth prospects, revenue profit generation year after year and dividend. Write them a clear-cut perspective that reads you understand the business modality. It will be a fruitful association.
License and No Objection Certificate
Needless to mention that you have to get the license from Food Safety and Standard Authority Of India (FSSAI) followed by string of other licenses and NOC from different organizational bodies. You have to go past all these barriers before opening your dream restaurant.
Brand Awareness
Building the brand takes so many years. Before opening a new restaurant you should not think too much over this. For the new restaurant advertisement can work well for the awareness goal. Via social media and google ad the audience of particular location can be targeted. A lavish grand opening is not advisable for the inexperienced restaurateur.
Brand awareness program works for established brand such as Buffalo Wild Wings, KFC, McDonald's etc. Being the franchise of established brand reduces the pressure of building the brand name.
Present Food Menu
All the promotional activities of your restaurant should represent the menu because after all what you offer your customers at what price does matter. The customers are going to visit your restaurant primarily on the basis of food quality. The ambiance and services come later on the priority basis.
Forecast The Restaurant’s KPIs
Cash flow, premises cost, cost of goods sold etc., can be predicted just before opening a restaurant. These are the restaurant Key Performance Indicators (KPIs). These are the managerial terms that show the crucial information about the restaurant business. Analyzing these terms management can estimate the operational cost and return on investment in the business. Plan to have an efficient restaurant management software that will do all the operational and managerial work of the restaurant.
