10 secrets to restaurant success

10 SECRETS TO RESTAURANT SUCCESS

Restaurant industry sales are projectedto total $709.2 billion this year and

equal 4% of U.S. gross domestic product. It is also the second largest industry,

in terms of size, with 616,008 establishments.

However, starting a restaurant is much more than having great food and customer service. Every year thousands of new restaurants are started, but 60% of restaurants do not make it past the first year, and

80% go under in five years.

To builda successfulrestaurant, here area few insider secrets

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Restaurant BusinessPlan?

• Always overestimate your capital needs. Opening a restaurant is an expensive venture and requires the following:

• Enough cash reserve for the first 12 months• Initial start up costs (construction, equipment,

furniture, etc.)

E n s u r e Yo u H a v e S u f f i c i e n tS t a r t U p C a p i t a l

Market research is crucial in deciding the best location and the following should be considered: Accessibility Sufficient parking Visibility Potential Traffic Competition and proximity

Determine the Best Location

Have a (Business) PlanA business plan is the essence of your restaurant, and a poor and unrealistic

business plan will not earn you any profits. A good plan will also attract potential

investors or banks for financing.

From being greeted at the door to paying the check, first

impressions determine repeat customers. Furthermore, with

the proliferation of user-review sites like Yelp and Urbanspoon , these platforms will become the

gatekeepers to customer acquisition.

Focus on Customer Service

Establish Quality Control

Ensuring quality and consistency in the kitchen is essential for a successful

restaurant. If it's not good enough, don't serve it - it

could ruin your reputation.

Implement a Simple MenuLong menus lead to

confusion for everyone. Start with a simple menu concentrating on quality

items done well vs. quantity. This will increase efficiency and there will be

less waste and costs.

Calculate Food CostsDetermine the appropriate menu prices based on costs and market research. Pricing factors include:• Food costs• Portion size• Quality of ingredients• Competitor pricing

Execute a StrategicMarketing Plan

The goal of a restaurant’s marketing plan is to ensure

long-term success. Employ an integrated strategy that will

reach your target market segments. Utilize marketing, public relations, advertising

and sales efforts to gain brand recognition and ultimately

drive revenue.

Profitability analysis and inventory control is an important task of every restaurant owner, which must be carried out regularly in order to prevent

theft and reduce unnecessary costs.It has been shown that the average monthly

restaurant loss is about 20%. 

Control Inventory and Costs

Keep It Clean and OrganizedThere's nothing worse than a dirty restaurant. Make sure all your staff have the right hygiene certificates

and set up a thorough cleaning regime. Get to know your local environmental health officer so they can help you with any issues that may arise.

In summary, these are the 10 things to do to ensure your restaurant succeeds: Ensure You Have Sufficient Start Up Capital

Determine the Best Location Have a (Business) Plan Focus on Customer Service Establish Quality Control Implement a Simple Menu Calculate Food Costs Execute a Strategic Marketing Plan Control Inventory and Costs Keep It Clean and Organized