When it comes to starting a restaurant, many entrepreneurs jump in and risk their time and startup capital without giving the idea due consideration. Like other business models, restaurants have a high failure rate and owners quickly realize that being in the restaurant business is not as glamorous or as enjoyable as they imagined.
However, with that said, for the right kind of people who have done the right preparation, restaurants offer excellent business opportunities. Many end up thriving and enjoying the lifestyle that comes with owning a business in this industry.
Before deciding to go ahead and open a restaurant, take some time to consider the following restaurant success factors. These are set out as a series of questions to ask yourself to see if you have what it takes to open and run a restaurant business.
1) Do you need experience and qualifications?
It is still possible for someone with no formal training or experience to open a restaurant and be successful. However, you will dramatically increase your chances of success if you have had some form of formal training, experience, or both. There are numerous culinary schools in the United States that offer a variety of courses of various lengths.
If you can get some experience working in a restaurant, this is also a great way to learn how things are done and get ideas for running your own business. Start by role-playing and persuading the owner to allow you to work in a variety of roles so that you can understand the entire operation.
2) Do you have general business management skills?
Having good money management skills will come in handy when it comes to handling cash and budgeting for expenses. While not absolutely necessary, restaurant owners who understand all the cash flows into and out of their business are more likely to feel in control and make a profit. Taking a course in small business administration or bookkeeping would be extremely helpful if you don’t already possess these skills.
3) Do you have creative talent?
While you can rely on the creative talents of others, such as chefs and interior decorators, it will come in handy if you are a creative person. Then you can have a considerable stake in creating a viable and unique restaurant concept, menu design, dining room décor, and more.
4) Can you handle long hours of work?
Running a restaurant business will require you to spend a fair amount of time away from your family, if you have one. When your children are home from school in the afternoons and evenings, you are likely working, as most restaurant business models follow these hours (unless you are concentrating on breakfast and lunch) . Weekends are the busiest days of the week for most restaurants, so you probably won’t see your family much on Saturdays and Sundays.
5) Do you have all the support of your family?
Clearly, you need to have the support of your spouse, at least for the first few days until you can step back and have managers run your operation in a way that allows you some free time. And if you are going to work with your spouse, you need to make sure your relationship is strong before you go into business together.
6) Do you have enough starting capital?
You will need to ensure that you have access to the funds necessary to start your business, as well as to cover operating costs in the early stages. You will also need funds for your personal living costs for the first few months of the life of your business while it is being established and income is still low. Undoubtedly there will be unexpected expenses, too, so make sure you don’t fall short.
7) Are you a sociable person?
As a restaurant owner or manager, you will have to relate well and communicate effectively with all types of people.
With your staff, you will need to demonstrate strong leadership skills and communicate clearly with them to maximize productivity and maintain good relationships with them.
Restaurant owners who have a strong personality and get to know many of their guests often become the face of the brand. Sometimes the owner even ends up being part of the attraction that draws customers to dine at specific restaurants. As a restaurant owner, you should be prepared to go out into the dining room and mingle with your customers whenever possible. Make sure to do it in a way that doesn’t interrupt your dining experience.
With your suppliers, city officials, inspectors, and other parties, you will also need to have the ability to communicate with them in a way that allows you to get what you want and build strong relationships.
8) Are you hard-working and organized?
As a freelance restaurant owner, you need to be motivated and disciplined if you want to do everything and achieve your goals. Being organized is the key to managing your time and your employees’ time effectively.
9) Can you stay cool in a crisis?
In the day-to-day running of your restaurant you will run into many problems small and large, especially in the early days. For everything to run smoothly, you need to be able to take control in a crisis situation, calm your employees, and offer quick, practical solutions that avoid stressing everyone out. As the owner and manager, you must work to eliminate problems so they don’t happen again.
There are many assets, personality traits, and other attributes that an ideal restaurant owner should have. To some extent, these restaurant success factors can be acquired, learned, or developed before opening the doors to business.
While you should always keep financial rewards in mind when starting out in the restaurant trade, having other reasons for entering this business is also important. If you love people, food, and hospitality, there is nothing you cannot learn along the way to becoming the perfect restaurant manager.