What Should I Consider Before Opening My Own Restaurant?
Opening a restaurant can be an immensely daunting task. With so many factors to consider, it’s good to have a simple checklist to get the basic considerations down first. Here’s our list for a few things you can use as a starting point when starting to plan your journey to opening your own restaurant.
Before you even begin thinking of what type of food you’re going to serve, you have to consider where your restaurant will be! The thinking process leading up to your restaurant can be heavily influenced by the location and space you have. Although you can always serve the food you want to wherever you are, your location predetermines the system that your restaurant will adopt. For example, if your restaurant is located in the CBD, you will have to cater to the customer base present there. Regardless of cuisine and space, you may want to cater quick, easy meals that people can eat on-the-go. In comparison, having a restaurant at Dempsey Hill caters towards a different type of customer too.
2. Type of Restaurant
Once you have your location settled, these may be the next few basic considerations that will come in when developing your concept:
Food Service and Menu What type of food will you serve and in what style – be it takeaway, standing restaurant, or dine-in, amongst many other options that you can explore!
Inventory What type of ingredients and supplies will you need, in what quantities, and what will be your method of procurement?
Pricing Depending on location and type of food served, pricing is heavily dependent on the place you’re situated in and the type of customers you’re looking to attract.
Customer Base Who will be the primary customers you’re looking to attract and how will you cater your food towards their likes, taste palettes, and finances?
3. Financial Goals
As Joey Lee, co-owner of Tandem Collective, said, “Even if you’re doing well, I would say an estimate where you are being freely confident with the sales to still be at least a year.” Breaking even will take awhile as startup costs will be high, thus ensure your financial capabilities and capital at the beginning. Be sure to plan ahead for your expenses for the first half a year, and ensuring that you are monitoring your finances on supplies and operational costs carefully. Monitor your invoices, profit-and-loss, and cash flow statements to ensure that you’re on top of your spending.
4. Have a Plan
Planning helps any businesses to chart a course for the achievement of its goals. The process starts with reviewing business goals and identifying what objectives and key performance indicators you would need to meet. This helps in envisioning the results of what you need for your business achievements, and determining the steps necessary in working towards them.
We hope these tips give you a good starting point in your journey of planning for your restaurant. We wish you all the best!