Opening Your Restaurant On A Dime
Written by: Julie Morris
If you are a chef, you may have considered opening your first restaurant. Even though many people are starting to dine in restaurants again after a difficult year for the industry, opening a restaurant and making sure it’s a success is no easy feat even in the best of times. These tips from Ann’s Social Media & Marketing can help you save money and make the best choices for opening and maintaining a restaurant business.
Before You Start
There are numerous steps you should take before you open a restaurant. Here are a few key points to start with:
Work in a restaurant first. Be sure your job is in an eatery similar to the type you want to open.
Choose a service style and food concept. Bistro? Fast food? Fine dining? As a rule, choose a style first and then determine the cuisine or food concept.
Location and layout are critical. You need to choose an area with a high traffic of diners eating at the time you are serving. For example, if you open in an office park area, lunch will be your main draw, though you probably won’t have a big dinner crowd.
Make sure you have the right design and ambiance to attract customers.
When planning a restaurant business, you must also create a business plan and address any legal issues. You’ll need to know your target customers, menu outline, and as much financial information as possible, as well as your plan for your employees. Before starting, read this detailed guide from the Eat app on how to start a restaurant.
Options For Funding Your Restaurant
If you need to fund your venture, business loans can be hard to secure. Personal loans are easier to come by, but it's also important that you understand how they work. Make sure to do your research to find the best options.
If you are struggling to get the funds you need, here are some tips on opening a restaurant with no money from Toast.com:
Start in a restaurant incubator where people who want to open restaurants come together in a shared space.
Apply for some of the unique programs from the Small Business Association that encourage partnership, community development, and micro-lending.
Consider creative crowdfunding.
If you want to make sure you’re giving yourself the best chance to succeed, here are 10 things that ShopKeep.com recommends you get right.
Restaurant Alternatives During a Pandemic
Again, opening a restaurant may seem like a daunting task, especially in the wake of a pandemic. Luckily, there is a great option that has become more and more popular these days: a pop-up restaurant. Essentially, a pop-up gives you the flexibility to start your business without having to secure a physical location. Other exciting options that are less temporary is to open a food truck or a take-out establishment. Any of these can give you time to prepare the menu you want and test out food choices before you settle into a location. The venue may not be permanent, but it just might inspire investors to get behind you, and you could be well-established when health concerns settle down.
One important step before you start your new pop-up restaurant is making your business a legal entity — yes, even when you’re only testing the waters and don’t have four walls and a physical foundation. You’ll want to check with your local and state government to find out how the Maryland LLC registration process works in order to make sure your business is legit. This will keep you out of trouble with the IRS and can be DIYed with the help of an online service.
Also, don’t forget to create the all-important business plan so that you are prepared to take the next step when you either find a location or commit to a location and really start your business in earnest. You can actually use an online template, so getting started is easier than ever.
More Ways To Save Money
Whatever option you choose, there are lots of ways to save money when opening a new shop. As a rule, always over-budget when planning. One area where it might be challenging to lower costs is with labor. After all, you get what you pay for. Learn four ways to lower labor costs at Intouch Insight.
Above all, keep careful track of your food inventory and rent or lease used equipment rather than buying. A POS system is a must-have for any business — restaurants, especially. This makes it easy to do exactly that, as well as keep track of your cash flow and sales for seamless and accurate bookkeeping.
Free And Low-Cost Advertising
Local press and word of mouth are great ways to get low- or no-cost advertising, but WebRestaurantStore.com has even more ideas:
Establish your brand with a website and blog.
Join your local chamber of commerce.
Social media marketing on Facebook, Twitter, and Instagram is a must-do for any restaurant business. Let the expert team at Ann’s Social Media & Marketing take this to-do off your plate. We’ll help you grow your restaurant business to new heights!
It’s always a great time to open a restaurant business, pandemic or no pandemic. With so many funding options, venue possibilities, low-cost advertising, and, above all, proper planning, your dream can be realized today.