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Basics Steps to Opening up a Restaurant

 

A lot of people dream of opening up a restaurant. However, the journey to successfully run a restaurant is quite intimidating. We have listed down the following guide to help you face all the crucial challenges in this endeavor.

Have a Unique Concept

In the restaurant industry, it’s important to stand out from the mass majority. Restaurants that follow recent trends don’t have any longevity in their business. Therefore pick a concept that flourishes with the general public in the long run. A good concept coupled with great food and service will certainly result in a profitable business.

Effectual Business Plan

After finalizing the concept, it’s important to lay down the details of the business plan ahead of you. Make achievable deadlines with a clear-cut road map towards your goal. Do the proper market analysis and include a restaurant description and executive summary of your plan. Writing a comprehensive business plan is important as it will keep you on track and would keep your investment in check.

Raising Money

After completing the initial steps, it’s time to get down to the basics. Opening a restaurant is quite expensive. You’ll need to raise funds from investors or partner with someone passionate as yourself. Taking out a loan is also an option however it should be your last resort.

Choosing the Location

Put in a lot of effort while choosing a location for your restaurant. Don’t simply rent/purchase a location without giving it proper thought. Your location will determine all the economics and traffic associated with your restaurant. A small restaurant on a busy road will provide the best return on investment.

Devise the Menu

It’s now time to make your concept menu into an official one. A comprehensive menu with reasonable prices will attract the majority of customers and hence should be given utmost priority.

Hiring the Right Staff

A quality staff will ensure quality service for your customers. The team can range anywhere from 5-50 people. Be sure to choose the right people as your staff will be the point of contact for your customers.

Deploying a Reservation System

Installing a restaurant reservation system in your restaurant can automate a lot of processes for you. It will increase your turn over time and can allow you to receive bookings from multiple channels as well. You can visualize your sales graph along with the customer behavior on different days of the week.

Have a Grand Opening

Before jumping into the grand opening, it’s important to test out your staff with a soft opening. They’ll have the chance to interact with real guests beforehand, and you can note down the flaws in your system. After that, have a grand opening and sort out maximum publicity for your restaurant. Invite your local bloggers, press, and public so they may taste your new flavor in town.

Make a Marketing Plan

If you are getting less traffic than expected, it’s time to formulate a marketing strategy or revamp your previous one. Have an updated strategy that utilizes social media to create maximum impact on your potential customers.

5 Reliable Ways to Relieve Stress of Restaurant Staff

It is common for a restaurant worker to be stressed out and lose temper. He has to go through intense manual-labor and challenging environments to work in restaurant’s kitchen. This stress affects “productivity”, “efficiency” and “quality of work” of the workers. It is no way good for the worker’s health also. One employee’s stress can largely affect all those working around him. Fortunately, there are ways to reduce stress among workers at workplace. Read on below to know about the 5 reliable ways restaurant staff can de-stress at work.

1: Set the Example:

As restaurant owner, you must lead by example at the first place. The positive vibes from you will affect your team’s behavior. You must be high on energy every time in a good mood. Even if any hurdle comes your way, you should not panic out. You must deal with it without getting stressed out. When your staff sees this positive behavior of you, they will get inspired and refrain from destructive behaviors. You will notice that it will positively affect the quality of dishes and dining experiences they put in for customers. Not only restaurant’s owner, the members of restaurant staff should also show constructive behavior to cut out stress in the surroundings.

2: Adequate Number of Staff:

Your restaurant should have adequate number of staff. Understaffing your kitchen will create stress of work-burden among workers when someone has to go on leave. What if a worker has some emergency to go urgently? If your kitchen is understaffed, it will get more understaffed. Only few workers have to manage everything. This understaffed situation will create stress and panic. The quality of work will affect eventually. You must keep your line staffed to cope up with peak times and rush hours.

3: Documented Procedures and Processes:

A restaurant will invite stress and tension when it does not have operational processes and procedures. If you experience electricity breakout, only an emergency procedure backup can reduce stress and anxiety. When every staff member knows what to do in which situation, no stress and panic would be there. They will exactly know the quick, easy and right course of action to take if you have documented process for every situation.

4: Watch Out For Music:

Music is soothing to soul. But in an atmosphere like restaurant’s kitchen, it may do more harm than good. The restaurant kitchen is already loud on noises (dishes, utensils, flames, kitchen wash basin, exhaust fans and much more). If you put on loud music there, you can imagine what the situation could be. The staff can get distracted and make mistakes in stress. They can destroy kitchen property or ruin the recipe.

5: Collaborative Culture:

Keeping a supportive and collaborative culture in restaurants is like giving life to the workplace. You should provide a good environment to work at for your staff. They should feel safe at work, they should enjoy working in your restaurant kitchen, they should help fellow staff, they should respect workplace diversity and most of all they should feel authorized to bring in something new to menu. Supportive workplace culture helps a lot in cutting down all the stress and strain among the workers.

 

Effect of Rising Food Prices in 2018 on Your Restaurant. How to Cope It?


Restaurant owners enjoyed running their business in 2017. Is 2018 different or not with the rising food prices? Will rising food prices affect restaurant industry? It is a blend of positive and negative effects.

According to the United States Department of Agriculture’s 2018 update, there is both good and bad news for the restaurant owners. Let’s get the good news first. The good news is food prices are rising at a rate less than the general rise in prices in the economy. The food prices are showing the rise of +1.7 percent from Jan.2017 while the prices in the economy, in general, are rising at +2.1 percent from Jan.2017.

As per USD, food prices in 2018 will be less as compared to 2015 because of the fluctuating and decreasing food price trend in recent past years. Here comes the bad news. Despite the fact that food prices are rising at “slower rate,” they are somehow actually rising. The pressure comes from food-service vendors and grocers to keep the prices affordable while earning enough profit to grow the business. To maintain this balance may get difficult for them in 2018.

Effect of Rising Prices on Restaurants:

Food stores and grocers still will face little pressure of rising food prices in 2018 as compared to restaurant owners. Restaurant proprietor has to bear extra costs in the form of labor wages and labor-related costs. Not only labor cost, but there are also other factors affecting restaurants due to this rise.

For instance, due to 2017’s hurricane, the supply of coastal foods and oil from the affected areas were limited. Low supply resulted in high price from food distributors. All such factors together affect the final price of the “menu.” Grocers are exploiting this situation by adopting the strategy of decreasing their rate of price increase to encourage customers for food shopping rather than eating out at restaurants. This strategy can put restaurants behind.  However, food and labor costs in a restaurant are the variable costs. A restaurant can easily control these costs to earn a profit by concentrating more on inventory management.

How to Manage Restaurant with Rising Food Prices:

Following ways can be a great help to cope up with food cost challenges and earn revenue.

1: Calculate Recipe-Level Food Cost:

Updating menu prices once a year cannot help to manage the costs of your dishes. It is important to calculate food cost at recipe level.

2: Theoretical V/s Actual Usage:

Are the theoretical food costs same as the actual usage in your restaurant? The answer cannot be in “yes” in most cases. It is assumed by the restaurant owners that they are same. But in reality, they are not. Wastes do happen with food in the form of over or under portioning, theft of food, etc. Your restaurant’s inventory software should be capable enough to evaluate invoices from vendors. The software would compare theoretical usage v/s what your actual usage is. This would help in eliminating extra food costs.

3: Work on the “Menu”:

Menu creation is a matter of extreme importance. Menu engineering helps in categorizing the profitable dishes v/s less profitable dishes. Food costs do not change uniformly on all food items with the rising prices. Thus, it is now wise to uniformly change the menu pricing consequently. You can face the challenge of rising food prices by selling your profitable dishes more than non-profitable ones. It will ensure the constant revenue. You must evaluate your menu on a regular basis to adjust menu items according to the season and to keep their prices optimized.