Business

How to Open a Restaurant: 5 Steps to Take

The restaurant industry provides more room for growth than most. In fact, 9 out of 10 restaurant owners started out in an entry-level industry position. 

If opening a restaurant is your dream, just remember that it’s attainable. The key is learning how to open a restaurant.

Running a successful restaurant comes down to the way you set yourself up from success from the beginning. We’re here to look at those first steps you should take.

Read on to learn the fives steps to take when starting a restaurant of your very own.

1. Pick Your Niche

What kind of cuisine or dining experience is missing from your community? What cooking and recipe creating skills can you bring to the table? Pick a niche based on consumer needs and your own personal skill set to ensure that you stand out from the competition.

2. Write Your Business Plan and Create a Menu

Now, it’s time to make your ideas concrete. Start by writing a business plan that includes (but is not limited to):

  • A business summary: what you’ll serve, who you’ll serve it to, and the overall type of restaurant you intend to create
  • A value proposition: who your competition and is and how you’ll stand out from the pack
  • Financial planning: how much money you’ll need, where you intend to source it from, and financial projections
  • A marketing plan: how you will get the word out

These are the materials that will help you stay on track. A well-written business plan will also help you attract and secure funding. This is also the time to start putting together a menu to give a better sense of what your restaurant will serve.

3. Obtain Funding, Permits, and a Lease

Now, for the paperwork. You will need to obtain funding and decide things like how much will come out of your own bank account and how much you need from investors or lenders.

Next, you will need to secure the proper permits, tax identification, licenses, and insurance.

Finally, it’s time to sign a lease on your first restaurant location. 

4. Secure Equipment and Food Suppliers

Once you have all of your paperwork and funding in order, it’s time to look for the right equipment and food suppliers for your needs. Remember, you don’t have to buy all of your equipment straight away. You can lease ice makers and rent equipment like stovetops and bulk refrigerators. 

5. Hire the Right Staff

Is your space ready to go? It’s time to staff your new restaurant. Make sure that you hire at least some servers and line cooks who possess industry experience to ensure that your opening weeks go smoothly.

Learning How to Open a Restaurant Will Set Yourself Up For Success

If opening a restaurant has always been your dream, then the first step is learning how to open a restaurant. In the end, the restaurant industry is open to anyone. As long as you take the right steps and create a thorough plan, you can set yourself up for success.

Looking for ways to improve your management skills? Take a look at our management content for effective strategies, industry news, and more.

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