Home » Small Business » Open Your Own Restaurant

Open Your Own Restaurant

The restaurant business is challenging. Since there are a large number of variables to consider, many novice restaurateurs make mistakes born out of pure ignorance. Experience and training are among the most vital parts of the hospitality and food service business. For individuals who have no formal training or experience, sufficient motivation and humility to learn by doing can be enough. The following are the steps an individual should take to avoid making mistakes when starting a restaurant.

Before You Open Your Own Restaurant, Know the Market

Chefs - open your own restaurantThe first step in opening a restaurant is to identify what will work well in the area in which the restaurant is to be opened. This involves determining the demographic makeup of the area and figuring out what the local people want in such a culinary establishment. What are some of the most successful restaurants? What dining experiences do people in this area seem to respond to? Knowing who will actually drive or walk by the restaurant will determine the target market.

Find a Suitable Space

Once the burgeoning restaurateur has selected an area and a niche to serve, securing a space is the next step. The space the restaurant will inhabit will determine many of the functional aspects such as seating and food preparation space. As well, the space will further inform the decor and theme initially chosen based on the local demographics. Any cash flow considerations related to leasing or obtaining a loan to purchase a space need to be addressed and ironed out at this point.

Become Licensed

Once a space is secure, the restaurateur needs to secure licensing. In addition to facing a nasty fee if an owner tries to operate an unlicensed restaurant, without a license to prepare and serve food, the local board of health can even close down the restaurant. Before opening, the restaurant itself will need a business license and (if necessary) a liquor license. These licenses will typically have to be displayed publicly somewhere in the restaurant. The owner should also ensure that all employees have food handler’s permits. These licenses can be obtained through local government offices.

Decorate the Space

Once every regulatory hurdle is out of the way, the restaurateur needs to begin decorating the space. The decor needs to remain consistent with the space and the demographics identified earlier. When people feel welcome and comfortable in the space, they will be more likely to stay longer and return later on. A good place to start is to take a walk around the neighborhood yourself; try to get a feel for the look of other nearby establishments. While it’s important to make sure your target demographic will feel comfortable in your restaurant, some of the most successful restaurants are also the most unique. Be sure to find a balance between making it appealing to a broad audience, while staying true to your original vision.

Decide on Management

Once the space is decorated, the restaurateur should begin to hire employees. In some cases, the owner will act as the general manager. However, this can be a mistake if the owner does not have at least 5 to 10 years of restaurant management experience. While hiring a professional general manager is more expensive, doing so can make the early stages of the restaurant ultimately more successful. The most important traits of a good general manager are a friendly personality, ambition and as much successful restaurant experience as possible.

Build a Menu

Once the owner has decided who will function as the general manager, the next person to recruit is a chef. The chef works with the owner to create a menu that will work properly with the restaurant’s theme, be appetizing to the clientele and be simple enough to cook repeatedly. Remember that certain ingredients can be expensive, and you should always aim to remain in your budget.

Allow Management to Get Started

After the owner has chosen a chef, choosing assistant managers for the kitchen and main dining areas is the next step. The important traits to look for in assistant managers are high energy and a commitment to customer service. The general manager and assistant managers should do the bulk of any further hiring, including dishwashers, food runners, hosts and busing personnel.

The Grand Opening

Once the menu is done, there is adequate staffing and the space is ready for customers, the doors can open. Don’t forget to focus on marketing; it’s important for people to hear about your establishment. Work with local newspapers to get a notice of a grand opening out, or invite a food critic to write a review. Finally, never underestimate the power of family and friends, who can spread word of your restaurant’s opening quickly.

While the success of a restaurant will come over time, building a solid foundation (and following this simple list) is a good place to start.

Editor’s Note: Restaurants are one of the hardest businesses to make successful. The failure rate on new restaurants is staggering. There is more to it than being a good cook. To get started in any new business it is best to work for someone else first to get experience and find out what works and what doesn’t. Another option is to start small and work your way up. A third option is a franchise that will teach you the ropes.
 
Illustration by Julien Tromeurn
Scroll to Top