Do you want to start your food business but can't figure out where to start?
Well, it turns out that it could be a good time to dive in now.
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| 8 Things You Should Know Before Starting Food Business: eAskme |
Studies have shown that foodservice industries are booming and are expected to reach about $ 4.2 trillion with an annual CAGR of 3.6% by 2024.
Therefore, to help you get started, we have collected an 8-step beginner's guide, with internal tips and tricks which will enable you to grasp all the opportunities for success.
Having a Solid Business Plan
The first thing you need to do before investing is doing extensive research.
After spending weeks (or months), you will begin to understand the broader food supply prospects, the latest trends for your customers, and the competition in a deeper way.
Create an investor's business plan.
Think of looking around the 4Cs: customer, consumer, channel, and context.
Adequate Financing
It's time to sort out your current finances.
However, not everyone who starts a restaurant has the personal funds to do so.
Fortunately, there are various other ways to secure your financing:
- Apply for a business loan
- Take help from family or friends
- Bring external investors, or join a partnership
- Utilize crowdfunding.
- Seek Government aid.
Remember that it can take years to make your first profit, and the money will barely flow initially.
Therefore, think about starting with something small (which can always be expanded) and pick your business partner wisely.
Choosing a Perfect Location
The location of your restaurant can depend on various factors.
You don't necessarily have to be at the hottest new retailers unless you rely heavily on food traffic.
Few things you should consider:-
Expenses
The rental expenses shouldn't be beyond the reach of your sales and profits.
Take something which you will be able to afford easily.
Accessibility
How can most of your customers reach your restaurant on foot, by car or by public transport?
Pick a spot, which can be easily accessible by your customers.
Ideal Neighborhood
Some locations tend to have strict regulations or restrictions on how long the suppliers can deliver their products.
So, choose them according to your requirements.
Other Businesses Around You
Competitors and other businesses can greatly impact your traffic, so try gaining some knowledge about what's happening around you and how it could influence your business.
Future Vision
Consider what your neighborhood can look like in 5 or 10 years and see if any major development projects are underway that can change the area's landscape.
Innovative Designing of Your Layout
After figuring out a perfect venue, it's time to work on your design and layout.
Of course, this depends on the type of restaurant you will be running, but in general, restaurants allocate about 45-60% of their space to the dining room, about 35% to the kitchen space, and the rest to storage and office space.
Carefully review the layout of your kitchen and dining area and make sure that there is a smooth flow between the two spaces.
Preparation space is also an important factor, so make sure you have enough space for plating and decorating dishes.
Secure Your Supply
Create a wish list and find a partner for short-term and long-term budgets.
But you don't want to go stale when it comes to quality, don't forget that high-priced suppliers can minimize your margins and get your business on-ground.
So always try to negotiate hard.
You should seek a reliable supplier.
This supplier should have a good track record of providing high-quality products and should have previous successful partnerships.
For food suppliers, be sure to check their delivery schedules and how they manage their food safety protocols.
And try to go local as they generally provide fresher ingredients.
Consider contacting the wholesalers to get some accessories for cheap rates, including vegetable wholesalers, glass milk bottle wholesalers, wholesalers for various accessories, etc.
You can also try contacting a glass or bottle manufacturing company, which can provide you with designer glasses that can match the essence of your restaurant.
Licenses And Permits
Regulations vary from country to county.
Make sure to check in with local regulations and consult a legal professional to ensure compliance with all of your local health and safety protocols.
In some cases, acquiring a license can even take months, so you should start on this process well before your opening day.
Hiring Good Employees
First, you need to figure out what type of employees you want to hire to be useful for your business type.
Depending on the size of the restaurant, it may include HR personnel, purchasing specialists, accountants, marketers, waiters, bartenders, etc.
Ensure to hire enough staff for each task and anticipate their travel plans and backups in case of illness or vacation.
Find candidates who are equipped with sufficient experience and a decent track record.
They should also possess excellent social skills.
Proper Advertisement
You have to do a good amount of advertising to spread the word about your new restaurant in the neighborhood.
Word-of-mouth is still the best advertising tool, but there are some other ways that you can consider announcing your new venture.
Creating An Attractive Website
Make sure it contains all the key information, including easy navigation, opening hours, menus, booking engine, and whether your restaurant fulfills the customer's special requirements.
Utilize Social Media Platforms
Create accounts on Facebook, Twitter, LinkedIn, and Instagram to share news and high-quality photos related to your restaurants and behind-the-scenes processes as you prepare for your opening day.
You can also try putting an ad in the local newspapers about your restaurant.
Hosting a Soft Opening
This is useful for great practice-run before the opening day and for creating buzz about the restaurant within the community.
Consider a soft opening for families and try to make the guest list smaller.
Offering Promotions
Offer free drinks and desserts to the first 10, 50, or 100 customers.
By this, you will be remembered for your hospitality and generosity and create some buzz in the neighborhood.
Conclusion
There's nothing like running a restaurant, provided the right owners run them.
You can create an atmosphere and cuisine that people can love, but that involves hard work.
Having a proper plan and effective strategies can do wonders. Start your journey and make your business bloom.
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