what do you consider for putting up a business

8/2/2019 What Do You Consider for Putting Up a Business

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what do you consider for putting up a business?

Now a days it is really hard to put up a new business. More like very risky. There should be a lot of

preparations. Planning, goal setting etc. . How about you guys? what do you consider for putting up a

business?

Restaurant

A restaurant ( /rstrnt/or/rstrnt/;French:[s.t.]) is an establishment which

prepares and servesfoodanddrinktocustomersin return for money, either paid before the meal,after the meal, or with a running tab. Meals are generally served and eaten on premises, but manyrestaurants also offertake-outandfood delivery services. Restaurants vary greatly in appearanceand offerings, including a wide variety of the main chef'scuisinesandservicemodels.

Whileinnsandtavernswere known fromantiquity, these were establishments aimed at travelers,and in general locals would rarely eat there. Modern restaurants are dedicated to the serving offood, where specific dishes are ordered by guests and are prepared to their request. The modernrestaurant originated in 18th centuryFrance, although precursors can be traced back toRomantimes.[1]

A restaurant owner is called arestaurateur( /rstrtr/); both words derive from the French

verb restaurer, meaning "to restore". Professional artisans of cooking are calledchefs, whilepreparation staff andline cooksprepare food items in a more systematic and less artistic fashion.

How to Start a Restaurant

Whether you want to serve fast food, steak, pizza or coffee, start your journey here with thiscomprehensive guide to launching your own food establishment.

Editor's note: This article was excerpted from our Restaurant start-up guide, available from

SmallBizBooks.com.

As increasing numbers of consumers want to dine out or take prepared food home, the number offood-service operations has skyrocketed from 155,000 about 30 years ago to nearly 900,000today. But there's still room in the market for your food-service business.

Shifting demographics and changing lifestyles are driving the surge in food-service businesses.

Busy consumers don't have the time or inclination to cook. They want the flavor of fresh breadwithout the hassle of baking. They want tasty, nutritious meals without dishes to wash. In fact,the rise in popularity of to-go operations underscores some clear trends in the food-serviceindustry. More and more singles, working parents and elderly people are demanding greaterconvenience when it comes to buying their meals.
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Though the future looks bright for the food-service industry overall, there are no guarantees inthis business. Even the most successful operators will tell you this isn't a "get rich quick"industry. It's more like a "work hard and make a living" industry.

A hard reality is that many restaurants fail during their first year, frequently due to a lack of

planning. But that doesn't mean your food-service business has to be an extremely complexoperation. In fact, the more streamlined you can make it, the better your chances for success.Robert V. Owens, owner of RV's Seafood Restaurant, a casual seafood restaurant in Nags Head,North Carolina, observes, "The restaurant business is a simple business that people makecomplicated." His formula for success is quality food, good service and great people--anapproach that's worked for him for nearly a quarter century.

Target Markets:

No single food-service operation has universal appeal. This is a fact that many newerentrepreneurs have trouble accepting, but the reality is that you will never capture 100 percent of

the market. When you try to please everyone, you end up pleasing no one. So focus on the 5 or10 percent of the market that you can get, and forget about the rest.

With that said, who is eating at restaurants? Let's look at the main market categories of food-service business customers:

Generation Y. This generation, also tagged the "millennial generation," the "echo" or the"boomlet" generation, includes those born between 1980 and 2000. Generation Y is the most

ethnically diverse generation yet and is more than three times the size of generation X. They are

a prime target for a food-service business. Members of Generation Y go for fast-food and quick-

service items. About 25 percent of their restaurant visits are to burger franchises, follow by pizza

restaurants at 12 percent.

Generation X. Generation X is a label applied to those who were born between 1965 and 1977.This group is known for strong family values. While earlier generations strove to do better

financially than their parents, Gen Xers are more likely to focus on their relationship with their

children. They are concerned with value, and they favor quick-service restaurants and midscale

operations that offer all-you-can-eat salad bars and buffets. To appeal to this market group,

offer a comfortable atmosphere that focuses on value and ambience.

Baby boomers. Born between 1946 and 1964, baby boomers make up the largest segment ofthe U.S. population. Prominent in this generation are affluent professionals who can afford to

visit upscale restaurants and spend money freely. During the 1980s, they were the main

customer group for upscale, trendy restaurants. In the 1990s, many baby boomer were two-income households with children. Today, those on the leading edge of the boomer generation

are becoming grandparents, making them a target of restaurants that offer a family-friendly

atmosphere and those that provide an upscale, formal dining experience.

Empty nesters. This group consists of people in the age range between the high end of the babyboomers and seniors (people in their early 50s to about age 64). Empty nesters typically have

grown children who no longer live at home, and their ranks will continue to increase as the baby


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boomers grow older and their children leave home. With the most discretionary income and the

highest per-capita income of all the generations, this group typically visits upscale restaurants.

They are less concerned with price and are more focused on excellent service and outstanding

food. Appeal to this group with elegant surroundings and a sophisticated ambience.

Seniors. The senior market covers the large age group of people age 65 and older. Generally, themajority of seniors are on fixed incomes and may not often be able to afford upscale restaurants

often, so they tend to visit family-style restaurants that offer good service and reasonable

prices. "Younger" seniors are likely to be more active and have more disposable income than

"older" seniors, whose health may be declining. Seniors typically appreciate restaurants that

offer early-bird specials and senior menus with lower prices and smaller portions, since their

appetites are less hearty than those of younger people.

How to Find the Best LocationA guide to scouting out a location for your food or retail business, sizing up demographics and getting

the help you need

Chances are, you've heard the term "location, location, location" more than a few times.

But if you're in the throes of creating a spectacular menu for your new restaurant orfinding wholesalers for your first retail store, it might not be the first thing on your mind.

It's time to put location at the top of your to-do list. If you're preparing to open a food orretail business with a storefront, putting your business in the proper location might be thesingle most important thing you do at startup. Of course you need a winning product, too,but how will anyone know about that product unless you get them through the door?

"In the brick-and-mortar retail world, it's said that the three most important decisions[you'll make] are location, location and location," affirms Irene Dickey, a lecturer inmanagement and marketing at the University of Dayton's School of Business in Dayton,Ohio. "Careful determination of new sites is critical for most retail and consumer servicebusinesses."

Check Your DemographicsMaking these determinations can be as simple or as complex as you make it. There are,for instance, sophisticated location analysis tools available that include traffic patterninformation, demographic and lifestyle data, and competitive analyses. Adds Dickey:"For a price, a retailer can ask such questions as, 'If I'm looking to add a store to a

particular market, what's the optimum level of traffic as it relates to the specific targetedtrade area? What is the overall type of traffic? Once consumers are in the store, is thereany way to measure the traffic patterns in the store?'"

"Do your due diligence," advises Michael Rodelle, director of real estate for the PapaGino's Inc./D'Angelo Sandwich Shops franchise, based in Dedham, Massachusetts. "Geta demographic overview of the area you're looking at-age, income, households, etc."


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In addition, you should look at neighborhood traffic generators, such as other retailersthat draw people to the area, industrial or office parks, schools, colleges and hospitalcomplexes. You'll also want to look at both highway and foot traffic. Carlos Silva, co-founder of Memphis Championship Barbecue in Las Vegas, learned all about finding agood location when he and his three co-founders (Dick Hart, Mike Mills and Dan

Volland) opened their first restaurant in 1994. "We opened our first business in themiddle of nowhere, and we had to work to get people to go to it," says Silva.

That's not to say it was a bad location-Silva says it fit in terms of the restaurant's theme.But it did require more of an effort to establish a presence. With three other locationsnow up and running, one of them inside a casino, the founders seem to have found theirgroove. "What we've done in Vegas is gone to each corner of the city," says Silva, whosays the restaurants' sales have grown 25 percent over last year's, with 60 percent growthprojected for 2004. "You're able to get to a Memphis restaurant within 10 minutes."

Look Your Competitors in the Eye

Many experts agree, though, that the answer to where you should locate is morestraightforward than many entrepreneurs make it. "Quite simply, the best place to be is asclose to your biggest competitor as you can be," says Greg Kahn, founder and CEO ofKahn Research Group in Huntersville, North Carolina, and a behavioral research veteranwho's done location research for Arby's, Buffets Inc., Home Depot, Subway and othermajor and minor players. "Foot traffic is obviously important, but landing the 'perfect'customer is far more crucial. By being in close proximity to your competitors, you canbenefit from their marketing efforts."

n other words, your competitors chose their locations based on the ideal demographics of a particular

area, says Kahn. In many cases, they've also devoted large portions of their advertising budget toward

driving traffic to their locations. "Why spend the money when they've already [spent it] for you?" asks

Kahn. "It's that easy."

What's more, being located near your competition can be a boon to business, provided you're confident

enough in your product to outsell your competitors. "Competition is good," concurs Blake Tartt III,

president and CEO of commercial real estate firm New Regional Planning in Houston, known for his work

on major malls and other commercial developments. "It makes the retailer or the restaurant better-

competition breeds more business, more traffic, and that's a positive. If my clients are good, I tell them

to go right up against the competition."

Of course, it's still a good idea to make your own evaluations of a particular property, even if your

competitors seem to be thriving in the area. Staying ahead of the game in this regard will help your

business grow should you decide, for instance, that you later want to open another location.

Restaurant Manager Leadership Traits

http://www.restaurantvoice.com/Experienced-Managers/restaurant-manager-leadership-

traits.html

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As a restaurant manager, part of your value to a company comes from your ability to managecertain metrics leading to service excellence and store profitability. Metrics such as Food

Cost, Labor, and Ticket Times are things for which you are compensated to manage, monitor and

improve. While some restaurant managers think they are also to manage the people in theircharge, the exceedingly successful managers realize they are to manage things and leadtheirpeople.

The following eleven attributes are important factors of leadership every manager desiring tosucceed and excel should master:

1. Unwavering CourageThis attribute is based upon your knowledge of your abilities, and of your function within therestaurant. No staff member wishes to be dominated by a manager who lacks self-confidence andcourage. No intelligent employee will be dominated by such a leader very long.

2. Self-ControlThe manager who cannot control himself/herself, particularly under pressure, can never controlothers. Self-control sets a mighty example for your crew, which the more intelligent willemulate, resulting in grace under pressure.

3. Consistent JusticeWithout a sense of fairness and justice, no manager can command and retain the respect of hisstaff. Your restaurant's policy handbook should be your first point of reference for maintaining aconsistent consequence for specified infractions. Remember, consistency is the key. An effectiveleader cannot play favorites.

4. Decision MakingThe manager who wavers in decision-making shows that he is not sure of himself and cannotlead others successfully.

5. Effective Planning

The successful leader must plan hiswork, and work his plan. A manager who moves byguesswork, without practical, definite plans, is comparable to a ship without a rudder. Sooner orlater he will land on the rocks. Every restaurant should have Systems in Place which aid in thisregard.

6. Doing More than ExpectedOne of the burdens a leader must bear is the necessity of willingness to do more than required ofhis/her followers. Not only must you be able to manage the training of your staff, you must alsobe able to perform all functions in your restaurant yourself, at least adequately, in order to helpwhere needed.

7. Pleasant PersonalityNo rude, overbearing, careless manager can become a successful leader. Leadership calls for
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respect, of others and of self. Followers will not respect a leader who does not exhibit a pleasantpersonality.

8. Sympathy & UnderstandingThe successful restaurant manager must be in sympathy with the staff. Their performance affects

the success of the restaurant's operations. Therefore, a leader must understand them and theirproblems and come to their rescue when necessary. The guest is always right, except whenthey're WRONG. There are times when you as their leader must defend your staff from certainsituations. A great leader recognizes those situations.

9. Eye for DetailSuccessful restaurant leadership calls for an eye for detail. See the restaurant through both theguest's eyes as well as the staff's. Vigilantly seek ways to improve the guest's experience as wellas ways to make thejobfunctions of your staff more easily executed.

10. Assume Full Responsibility

The successful restaurant manager must be willing to assume responsibility for the mistakes andthe shortcomings of the staff. If you try to shift this responsibility, you will not remain the leader.If one of your followers makes a mistake, and shows himself incompetent, the leader mustconsider that it is a personal failure and take steps to prevent the situation from happening again.

11. CooperationThe successful restaurant leader must understand and apply the principle of cooperation and beable to cause his/her followers to willingly do the same.

While this list by no means is intended to be exhaustive, it does contain a foundation upon whicha restaurant manager can successfully develop a style of leadership that his/her staff will respect

and follow. Without the ability to lead, a manager will find there are no followers. If you'releading and nobody is following... you're only taking a walk.

About the author: Brian Bruce is an Executive Restaurant Recruiter andBloggerwith 23 yearsof operations experience. His vast knowledge of the industry comes from managing in nationalconcepts such as Chili's and Joe's Crab Shack. Brian understands the day-to-day challenges fromboth sides of the equation - as a client trying to find quality operations candidates, and as amanagement candidate trying to find a quality employer. He can be contacted [email protected].

Example:

BUSINESS PLAN

AMERICAN DINER
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5409 Lapel St.

Timbuktu, UT 48224

January 4, 1993

Adopting a 1950s theme, the American Diner intends to serve traditional foods, such as fruit piesand cobblers, freshly baked breads, pot pies, and other "home-cooking" with an eye toward

health. The two proprietors, both experienced restauranteurs, intend to draw on their extensive

food service backgrounds as they launch their new business. The following plan outlines the

strategy the Diner will develop to cater to the growing Timbuktu community in the face of strong

competition.

EXECUTIVE SUMMARY INTRODUCTION MENU MARKET DESCRIPTION COMPETITION MARKETING STRATEGIES MANAGEMENT TEAM FINANCIAL PROJECTIONS APPENDICES

EXECUTIVE SUMMARY

Founders

John Doe has worked in food service for over 17...

Source: Business Plans Handbook, 1995 Gale Cengage. All Rights Reserved.Full copyright.

(The entire page is 3365 words.)

Business Plans

You are ready to be your own boss and you are very excited about the potential of your ideas.But you just need that extra $50,000 to make your dream a reality. Investors and financialinstitutions expect to see a business plan when you approach them.

Or, you are certain that your idea will succeed, but you are unsure of the process involved toachieve it.

A business plan is paramount. We can help. We develop full business plans for start-ups andexisting businesses that are looking for financing, entering new markets, introducing newproducts, or restructuring.
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Results You Can Expect:Every business starts with a strong business planit is the foundation and the building block ofevery company. A good business plan will not only be the blueprint of your business, it will alsoprovide you with a good entry into many doors, including the door of investors and financial

institutions. The due diligence of starting a company can be overwhelming. With our help, wecan provide an excellent plan for you.

Business consulting

As a business owner you are most likely very, very good at what you do. However, many smallbusiness owners find that they are not very, very good at the day-to-day operations of runningthe business. At Kimpton Wells Business Consulting we come alongside you and help injectmuch needed common sense into your business structure.

We are business management consultants specializing in implementing well proven managementprofitability and organizational improvements. We understand the many challenges facingbusinesses in today's fast-paced and competitive climate. We understand because many of ourassociates have owned or currently head-up their own successful business organizations.

Is your business requiring more and more of your time to maintain, much less to grow? Is itbecoming your life, rather than your livelihood? Or, are you experiencing declining profits,markets, efficiencies, all of which you have grappled with alone. Have the results of yourimprovement initiatives proven disappointing in spite of all your efforts? Have you lost yourbusiness focus? Are you uncomfortably deep into your bank line of credit, or is your banklending facility currently becoming overly burdensome? Or is it more serious; has your business

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cut operational costs reduce business risk create brand value generate revenue from new sources transform your company into an innovative market leader ahead of the competition

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Business Plans

You are ready to be your own boss and you are very excited about the potential of your ideas.But you just need that extra $50,000 to make your dream a reality. Investors and financialinstitutions expect to see a business plan when you approach them.

Or, you are certain that your idea will succeed, but you are unsure of the process involved toachieve it.

A business plan is paramount. We can help. We develop full business plans for start-ups andexisting businesses that are looking for financing, entering new markets, introducing newproducts, or restructuring.

Results You Can Expect:Every business starts with a strong business planit is the foundation and the building block of

every company. A good business plan will not only be the blueprint of your business, it will alsoprovide you with a good entry into many doors, including the door of investors and financialinstitutions. The due diligence of starting a company can be overwhelming. With our help, wecan provide an excellent plan for you.

Marketing Plans

Are you having problems differentiating your business from your competitors? Maybe you arestruggling with selling your products and services because your customers or clients do not knowyou. Or perhaps you are running low on ideas to market your business.

We have a solution for you. We create full marketing plans to help you enter the market andcreate a brand. With our help, you will be able to refine your products and services, identifymarket segments, select distribution channels, create effective promotional strategies, and utilizevarious pricing tactics to gain optimal profit.

Results You Can Expect:Your customers or clients will now get your message and distinguish you from the sea ofcompetitors. Most importantly, with the right mix of marketing strategies, your customers willACT on the message and buy from you. With a strong marketing plan, you will not only build

brand identity, you will enhance your revenue.

Strategic Planning

You may be caught in the daily operations of your business so much so that you are losing sightof the big picture. Or perhaps you are contemplating a change to the core of your business andexpansion geographically, but you do not know how that will impact the rest of your operations.


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We develop full strategic plans to help you define the core values of your organizations and keybusiness activities so that you can meet your objectives once again. We will dissect yourorganization and analyze your internal operations as well as the external environment yourbusiness is operating within. We will also work with you to set new goals, create new strategiesand timelines, and determine your success criteria for you to run a successful business long term.

Results You Can Expect:Most companies and organizations need a vision and strategic plan, but few have it. Your Planwill put you ahead of many of your competitors. You will now have short and long-term goalsfor your business in key performance areas which will help you stay focused. Your businessactivities or issues, such as operating costs, customer satisfaction, quality of goods or services,etc., will subsequently be improved with a more focused vision.

Project Implementation & Management

Are you one of the many small business owners who are juggling multiple roles from talking tocustomers, marketing your business, picking up phone calls to sweeping the floor at the end ofthe business day? You just wish that you had more time and resources to implement some of thegreat ideas you have, or were suggested to you, either by your close confidantes or us at KimptonWells.

We will help you manage projects of any size. We will also implement business or marketingplans you already have to ensure success.

Results You Can Expect:You will be able to pursue urgent business activities without spreading your resources too thinand sacrificing your ability to implement great business initiatives. In addition, our professionalassistance in project management will accelerate the project initiation process and enhance itssuccess.

Business Evaluation & Organization Reviews

You think you are doing all the right things for your business, but for some reason, your bottomline just doesnt reflect it. Or you are working long and hard hours from Mondays to Sundays,

and are desperate to find more efficient and effective ways to run your business.

We will gladly help you achieve that work/life balance by evaluating your current businessmodel, process, operations, and/or organizational structure, to identify problems or areas ofimprovement.

Results You Can Expect:


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You will learn how efficient and effective your companys programs and/or initiatives are. Youwill also gain the ability to recognize when changes are required and to implement them acrossall parts of your business on an ongoing basis. You can expect to identify opportunities that willincrease your operational excellence.

Business restaurant:http://www.enotes.com/handbook-business-plans/restaurant-2

retreived: Saturday,march 10,2012 at 3:20pm

BUSINESS PLAN

PEACH BLOSSOM DINER

1 Congaree Battery Drive

Columbia, SC 34345

January 17, 1993

The Peach Blossom Diner is an authentically restored diner featuring period paraphernalia from

the 1920s through the 1950s. This plan includes details on how to create an establishment with a

nostalgic atmosphere and discusses issues relevant to the genesis of any new restaurant.

BUSINESS DESCRIPTION MARKET DEFINITION MARKETING PLAN FINANCIAL CREATION OF JOBS FINANCIAL PLANNING SUPPORTING DOCUMENTS

The Opening of America's Most Authentic Restored Diner on the Banks of the Congaree

River at the Gervais Street Bridge

Presenting the restoration of America's largest and most authentic diner with a nostalgicoverview of life from the 1930's into the future. The menu will offer contrasting health...

Restaurant promotions offer a way to reach both new and existing customers, showing your

appreciation for their business. Depending on the type of restaurant you operate, as well as the size and

design, some promotions may work better than others.

Restaurant Advertising Ideas
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How Thrifty is Your Restaurant?

http://restaurants.about.com/


Sunday February 26, 2012

There are many ways your restaurant can save money for better profits. Reducing food waste andspoilage in the kitchen or taking green energy saving steps are two ways you can decrease costsand increase profits at your restaurant. Take advantage of freebies from distributors and don't beafraid to shop around vendors for the best prices on food and other supplies.

Food Cost Problems

Saturday February 25, 2012

As food costs continue to rise, restaurants are faced with the problem ofbalancing food costs with affordable menu prices. If you find your profit margins are shrinking,take a look at your food costs. Is there a way you can bring down the cost of your dishes, toimprove profits? Is your kitchen staff using as much food as possible from ingredients, sonothing goes to waste?Read on for common food cost problems and ways to deal with it.

Photo Credit: Jeflias

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Effective Restaurant Management

Friday February 24, 2012
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Before You Open a Restaurant:

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htmretreived: Saturday,march 10,2012 at 3:30pm

Before you open your own restaurant there are many aspects that need to be addressed, to assure

success. Heres a list of available resources to help you in your new restaurant start-up.

Deciding if Owning a Restaurant is Right for You

Restauranting is hard work. It may seem glamourous and fun, but it all boils down to hard work. Ask

anyone in the food business, and they will tell you about long hours they put into it. Its important to

understand all the various jobs that are involved in running a restaurant. From bookkeeping, to cooking

to PR, as the owner you are responsible for it all.

Deciding on a Restaurant Concept

Deciding what type of restaurant you want to open will depend of a variety of things. Often timespeople who want to open their own restaurant want to serve food they like to cook, in an atmosphere

they feel comfortable in. Other people are interested in Franchising. Restaurant franchises offer a

number of benefits, including instant name recognition and built-in marketing. However, many

restaurant franchises don't come cheap and owners must be willing to follow a stringent set of rules.

Choosing a Location for Your Restaurant

Location is vital to the success of any restaurant. There are several factors to consider when searching

for that perfect restaurant location, including population base, local employment figures and

accessibility. Once you find that perfect location, you will need to make sure you negotiate the best

lease possible for your restaurant.

Finding the Perfect Location

Choosing a Location for Your Restaurant

Four Factors to Help You Find a New Restaurant Location

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on.htm

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Before you create a business plan, write a menu, or dash off to the bank to apply for aloan, you must first decide where exactly your restaurant is going to be located. Arestaurant's location is as crucial to its success as great food and service. It will influencemany parts of your restaurant, including the menu. If you already have a certainrestaurant location in mind, dont get too attached until you know if it has all the right

requirements for a successful restaurant. There are four crucial elements to consider when looking at a potential restaurant

location: Population BaseAre there enough people in the area to support your business? For

example, is the restaurant location in the heart of a thriving downtown shopping district,or along a busy freeway? There needs to be enough people who live in the area, or passthrough the area on a regular basis to keep you busy. To determine the population base ofa particular area, you can do a site study. However, these can cost up to $25,000. Mostpeople looking at their first restaurant dont have enough money in their budget for aprofessional survey. A less expensive method to determine the population base of certainarea is to use a circle graph, as well as asking the local chamber of commerce and town

office for more information. ParkingWill there be enough parking to accommodate all the seats in your new

restaurant? Ideally, a new restaurant location should have its own parking lot. If that isntan option, is there public parking near the restaurant location?

AccessibilityTheres a reason that major restaurant chains are often located nearhighway and freeway exits: It makes them accessible for customers. Motorists can reachthe restaurant without fighting traffic or driving out of their way. Most successfulrestaurant locations (but not all) are easy to find.

VisibilityThis goes along with accessibility an dis very important for new restaurantlocations. People have to know the restaurant is there. This is why property prices indowntown districts and developed strips are higher than other areas. They offer a level ofvisibility that can bring in a great deal of walk-in business.

Its important to address all these elements when you sit down to draft yourbusiness planfor a new restaurant, which you will need before applying for a loan. In addition, byunderstanding each of these elements, you can better choose the right location for yournew restaurant.

How to Determine Population Base

How to Find Out the Population Base of an Areahttp://restaurants.about.com/od/resources/a/Population.htm


here are a couple ways to figure out the population base of an area. One is to do a sitesurvey. Big chains and corporations routinely conduct some type of site survey beforethey begin building. Because a site survey can cost as much as $25,000 or more, itusually is not an option for a person starting an independent restaurant.
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If you dont have several thousand dollars sitting idyll in your bank account for a sitesurvey, dont despair! There are several ways to figure out the population of particulararea, and most of the information is free. Take advantage of local government reports,speak with a representative from the Small Business Administration (SBA), or visit thenearest economic growth council for information on local employment and population

data. Population Census- Every ten years the US government publishes a population census.

A census not only tells you exactly how many people live in a certain area, it gives you amedian age and household income. These factors can influence your menu and restaurantstyle, as well as location. For example, if the median household income of an area is$40,000, it is a good idea to keep the menu prices on the inexpensive side. If the medianhousehold income is $200,000 a year, then you can offer a slightly more upscale menu.

Housing Value- Find out how much local houses are appraised at. If houses are goingcheap, that is an indicator that incomes are lower. If every house in the area is selling for$500,000 or more, than it is a good indication that incomes are high and people haveextra money to dine out.

Nearby Institutions and Attractions- Are there any big businesses or attractions thatwill bring lots of people into the area? For example, a sports stadium or major medicalfacility will attract hundreds, even thousands of visitors from outside the local area.

Unemployment Rate- You can find unemployment rates for towns, counties and statesthrough local government websites. Currently the US unemployment rate is 4%. If anarea is higher than this figure, you may want to think twice about locating your restaurantthere.

How to Negotiate a Lease

Negotiating a Lease

http://restaurants.about.com/od/location/a/lease.htm retreived: Saturday,march 10,2012 at 3:32pm Because most would-be restaurant owners dont have a lot of start up cash, many end up

renting their restaurant location. Renting has several benefits. You dont have to worryabout a large mortgage payment (you do need to worry about rent, though) or taxes, orbuilding maintenance. However, before signing any lease, whether long term or shortterm, do your homework. Find out if the landlord is someone you want to have a workingrelationship with. Find out why the space is vacant. Lastly find out if the space will workfor a restaurant. A former office or retail shop may not have the necessary requirements

of a licensed eating establishment. Before You Sign a Lease If you are planning on making extensive renovations to a location first find out if the

space will even pass inspection. Bring in the fire marshal, health inspector and buildingcode office (code enforcement officer) to tell you exactly what needs to be done. After allthe initial visits, you may find that renovations will be too expensive to justify thatparticular location.

Possible problems of renovating a space for a new restaurant include:
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Lack of public bathrooms- ADHA bathrooms require a certain amount of stalls perseats and all must be ADHA compliant. If all you have is a one-seater, is there enoughroom to add more bathrooms? Lack of outside ventilation- Restaurant kitchens produce a lot of smoke, grease andodors. Therefore, ventilation is necessary, not only to keep the dining room free of smoke

but to keep the kitchen a healthy work environment. Finding outdoor ventilation can be aproblem in older downtown buildings. No Garbage pickup- Restaurants produce a lot of garbage. Is there a place for adumpster nearby? Or can you share with other local businesses?

If your location passes the first phase of inspections, discuss with your landlord whichrepairs he is willing to cover. Again, if the space is in a hot-to-trot neighborhood, youmay find yourself paying for nearly everything. However, if the space has been vacant,you can gently remind the landlord that you should not have to pay for renovations andrepairs that you cant take with you at the end of the lease. For example, if you have toupdate plumbing or heating ducts, they are going to stay with the building. If a landlordrefuses, then it may be a sign to look elsewhere for a restaurant location.

Do a Landlord/Location Background Check

Ask other tenants in the building about their experience, both with the building locationand the landlord. Ask if the landlord is easy to work with and if he addresses problemsquickly. You can also ask about pros and cons of the location, as well as their thoughts ona new restaurant going into the building. Of course, take everything other tenants saywith a grain of salt. If they think a restaurant is a fantastic idea, remember, its theiropinion, not an actual fact.

Negotiating a Restaurant Lease Depending on the location of your restaurant, you may have quite a bit of room for

negotiating your lease as well as your monthly rent payment. If the location is an busydowntown sector that full of thriving businesses, you may not have any wiggle room witha lease.

If a spot has been vacant for several months you can probably haggle with the monthlyrent or get the first couple of months (your start-up phase) free. Remember, the landlordwants businesses in the building. That is the only way he can generate income from hisbuilding. Having a business in the building will attract other businesses and increase thevalue to his property. So it is to his benefit to get you into that building.

Common lease negotiations include: Not paying rent at all until the restaurant opens for business

Pro-rating rent. You may pay a very low rent the first year of the lease, then graduallyincrease it each year thereafter. Including building repairs in the rent. If you make significant repairs to the plumbing orheating, then ask if they can be deducted from your regular rent. Most landlords wouldrather give free or reduced rent one month than shell out cash to make repairs.

Once you and your landlord have come to an agreement on what he will cover, make sureto have (in writing) a plan that allows for unexpected repairs. For example, you are halfway through installing the commercial hood and ventilation in the kitchen when yourcontractor informs you that new duct work has to be put in place. You should have anagreement that your landlord will cover this unforeseen expense.

Terms of the Lease


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Dont lock yourself into a long lease, at least not the first year you are in business. If yourrestaurant fails (hard to think about, but a necessity to consider) you dont want to belocked into four more years of rent that you cannot pay. A lease is a legal bindingdocument and the landlord is within his rights to sue you for the rest of the rent, or atleast the rent that is owed until new tenants take up occupancy, if you default. If the space

you want to rent is only available with a long term lease (more than a year or two) thinklong and hard about whether or not it is really worth the risk. A pro-business landlordshould be willing to start with a year lease and work from there. If the landlord refuses tonegotiate, they probably wont be any easier to work with in the future and more troublethan the space is worth.

Writing a Business Plan

To prepare for your interview with the bank, you need to do your homework. Creating a business plan

that outlines your restaurant and how you plan to make it profitable, will show the loan officer youmean business. Also make sure you arrive at the bank with all the necessary paperwork, including

personal income statements, tax returns and anything else the banker ask you for.

Finding the Perfect Restaurant Name

Restaurant names may reflect a theme (Mexican, Chinese, Continental), a location, or simply be a play

on words. The important thing to consider is the impression it will leave on customers. Select a name

that will be easy to customers to remember and spell. Nothing is more frustrating than not being able to

find a restaurant online or in the Yellow Pages because you aren't spelling it correctly.

Choosing a Restaurant Name

Choosing a Restaurant Name

http://restaurants.about.com/od/openingarestaurant/a/naming.htm retreived: Saturday,march 10,2012 at 3:35pm Choosing a restaurant name is as important as deciding what type of food you are going

to serve. A good restaurant name is easy to remember and easy to spell. It may reflectyour restaurants theme, its location or simply be a play on words. The important thing toconsider when choosing a restaurant name is the impression it will leave on customers.

Naming a Restaurant After a Location Often times naming a restaurant is simple. The owners take a cue from their restaurants

location. For example, our restaurant is located in the former boiler room of an old NewEngland shoe factory. Because of this historic link, we decided to call the restaurantsimply The Boiler Room Restaurant. It is easy to remember and most of the locals knowthat it refers to the old shoe shop. Tourists passing through love that is was once part ofan old factory.The French Laundry, in Napa Valley, California is one of the countries most esteemedrestaurants. Its name stems from the fact the restaurant building once housed a French
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steam laundry during the 19th century. The building was also once a brothel, but therestaurant owners wisely stayed away from incorporating that name.

Reflecting a Theme in a Restaurant Name Choosing a restaurant name can also come from a theme or menu. Chinese restaurants do

this perfectly, with names likeJade Palace, Fortune Fountain, and The New Great Wall.

Each of these restaurant names let customers know that they serve Chinese food. Avoidcalling your restaurant an ethnic name if you are serving a different type of menu. Forexample, if you are serving authentic Mexican food, calling the restaurant Giovanniswill confuse your patrons, who may think you serve Italian food.

Adding a Personal Meaning to a Restaurant Name Opening a restaurant is like having another child in many ways. Sometimes a restaurants

name is a reflection of the owners name or someone dear to them. Wendys founder,Dave Thomas, named his restaurant concept after his daughter. Perhaps yourgrandmother influenced your joy of cooking, so you might name your restaurant afterher. What ever the meaning behind your restaurants name, be prepared to share it withthe public, who love a good story.

Restaurant Name With a Play On Words

Paula Deens first restaurant business was called The Bag Lady, because she and her sonswent around delivering bagged lunches to local businesses. This is a great example ofplaying with words. Fun restaurant names that have nothing to do with food are usuallyeasy to remember, and pass on by word of mouth. Celebrity chef Wolfgang Puck calledhis earliest restaurant Spago, (Italian slang for spaghetti.) Little in the name would tellyou that it serves a fusion of Mediterranean and California cuisine, with a specialty inwood-fired pizzas. Its just a great restaurant name.

Avoid Trademarked Restaurant Names If your last name happens to be McDonalds, dont call your restaurant that. You are just

asking for trouble (ditto if your last name is Taco Bell, Burger King or Jack In The Box.)It may seem like a harmless gesture to name a restaurant something similar to an alreadyestablished chain, but youll be asking for potential legal troubles.

Restaurant Names That Inspire

Writing the Menu

Your menu is a huge part of your restaurant. After all, it is essentially why your customers keep coming

back. They love the food. The layout and design is just as important as whats listed on the menu. Avoid

amateur looking menu designs, such as clip art or photocopied handwriting. Finally, knowing how to

price the menu will help increase your profit margins, giving you more money to invest into your

restaurant.

How to Price Your Menu

How to Price Your Restaurant Menu

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Writing the menu for your restaurant is the fun part. It's kind of like picking out namesfor a baby. You can play around with terms and pair different foods together to see whatlooks good together. However, a menu, just like a new baby, can be rather complicatedand hard to understand at times. For example, how do you know what to charge in orderto make a profit? Food cost and portion control are two ways to help price your menu

correctly, so you make a profit but be careful not to price yourself out of the local market.Another way to ensure a profit is to create a balance of expensive and inexpensive items. Food Cost Food cost refers to the menu price of a certain dish in comparison to the cost of the food

used to prepare that same dish. In other words, how much you pay for food willdetermine how much you need to charge for it. Generally, food cost should be around 30-35%. This means that if you pay $1.00 for something, you need to charge minimum of$3.34. It may seem like you are charging a lot more than necessary, but keep in mind thatyou aren't just paying for the food itself. You are paying someone to prepare the food,serve the food, and clean up after the food. Everything in your restaurant, from payroll tothe electric bill needs to be covered by the food you serve.

Lets look at a typical menu item that many restaurants offer: Filet Mignon Dinner.

The initial cost of a filet mignon dinner can be broken down into the following areas: The beef filet costs you $6.00 per portion The wrap (the potato, vegetable, salad and bread that comes with the filet, as well as

any condiments the guest asks for) costs $2.50 Therefore, the entire meal costs you $8.50. If you wrapped the filet in bacon and topped it

with herb butter (very tasty) your costs would increase. So, then your prices wouldincrease. Get the picture? Every thing that goes onto the customers plate needs to beaccounted for.

So how do you decide on a final menu price? Time to brush up on that high schoolalgebra you swore you'd never use.

The formula for costing goes as follows: Cost of your product/.35=menu price or $8.50/.35= $24.29 $24.29 is the absolute minimum you need to charge in order to make a profit off the filet

mignon dinner. Of course, $24.29 is an awkward looking number, so you might bump itup to $24.99. If you bumped it up to $29.99, your food costs would drop below 30%,which means you make a bigger profit.

Portion Control One reason that chain restaurants are so successful is that they have a firm handle on

portion control. The cooks in those restaurants know exactly how much of eachingredient to put in every dish. For example, shrimp scampi may have a portion controlof six shrimp per dish. Therefore, every shrimp scampi that goes out of that kitchen willhave six shrimp in it, no more, no less. This is portion control.

In order to practice portion control in your own kitchen, everything should be measuredout. Chicken, beef and fish should all be weighed, while shredded cheese can be stored inportion control cups and a measuring cup can dish out mashed potatoes. Once you feelcomfortable cooking your menu, you can eyeball the serving amounts (sort of likeRachael Ray) but in the early stages of your restaurant, err on the side of caution andmeasure everything out. Another way to practice portion control is to purchase pre-


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portioned items, such as steaks, burger patties, chicken breasts, and pizza dough. Theymay be more expensive, but can save you money in labor and food waste.

Well Balanced Menu Food markets fluctuate depending on the season, the weather and the price of gas. One

day lettuce may be $10.00 a case and then the following week it has jumped to $30.00 a

case. There is little you can do when prices jump, short of changing your entire menuevery few weeks, and who has time for that? However, when you balance expensiveitems, which are prone to price fluctuations, with items that have stable prices, you canhelp maintain your desired food cost. So, go ahead and have some fresh lobster and beefon your menu, but temper it with some less expensively priced chicken dishes or pastadishes.

Menu Design

Restaurant Menu Design

http://restaurants.about.com/od/menu/a/Menu_Design.htm retreived: Saturday,march 10,2012 at 3:38pm A restaurant menu design is a reflection of the restaurant itself. Restaurant menu

descriptions, layouts and colors, whether formal, casual or playful, should match yourrestaurant concept, location or theme.

Before Your Design Your Restaurant Menu Check out your competition. Look at their website and study their menu to see the price

range of their meals. Also, look for similarities and differences between your prospectiverestaurant menu and theirs. Ask yourself the following questions:

How will my restaurant menu be different from everyone elses? If you cantanswer this question, stop right here. Do not pass go, do not collect $200 dollars. Youneed to decide what will separate your food from the masses. This is the driving forcebehind your restaurant menu design.

What restaurant menu items are similar to my competitors? Not everything on yourmenu has to be 100% original. Look at how many places offer a hamburger orcheeseburger as a dinner option. You can offer similar items, but you should addsomething to yours, to make it stand out in a crowd. For example, your restaurant menumay include a hamburger with hand-cut French fries, while your competitor offers a plainburger with boring old frozen fries.

Does my restaurant menu pricing match my competitors? If you charge $14.00 forthat hamburger and your biggest competitor charges $9.00, youd better be addingsomething fantastic to that burger to justify the price (like lobster or a foot massage).Otherwise, who do you think your customers are going to frequent?

Designing a Restaurant Menu LayoutOkay, so once you have studied the competition and written up a stellar restaurant menu,you need to create the perfect restaurant menu design. This sounds easy enough, but aneffective menu design is more than just printing out a list of items on a WordPerfectprogram. Colors, fonts and borders are all integral parts of a an effective menu design.
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Restaurant Menu Colors and FontYour menu font and color scheme should reflect your restaurant theme. For example, ifyou are opening a Mexican themed restaurant, vibrant colors such as red, turquoise,purple and green would be good choices for a menu. These same colors would look outof place on the menu of a French bistro or Italian restaurant. Ditto for the font. A French

bistro may have a classic script font or simple plain font, while a sports bar or othercasual restaurant might have a less formal or playful font. Beware of choosing a font thatis hard to read or too small.

Restaurant Menu SectionsTake a look at a menu from most any restaurant and you will see that it is arrangedsequentially: appetizers, soups & salad, main entrees, desserts and beverages. It isimportant to have sections clearly identified, by either bold headings, boxes or borders.Highlighting special dishes with a star or other insignia, such as a house favorite or chefsspecialty is one way to draw a customers attention to popular dishes.

Depending on your restaurant menu size, one or two columns makes for an attractivelayout. Adding more columns runs the risk of looking like the newspaper classifieds.

Daily specials can be easily changed with a clear menu insert. Avoid adding to manypictures or busy backgrounds, that make the menu hard to read. Also avoid commoncomputer clipart, which takes away from the professional look of a restaurant menudesign.

Restaurant Menu DescriptionsYou menu description should make a guests mouth water. Dont be afraid to explainwhat is in a dish, and use ethnic names if they fit, to add a bit of authentic flair to themenu description. For example, Chicken Margarita sounds better than Chicken toppedwith spicy tomatoes. You can explain what is in the dish (spicy tomatoes) in thedescription itself.

Incorporating geography or local history into a menu item name is also a way to makeyour restaurant menu unique. For example,Maine Lobster Roll sounds inviting, whetheryou eating it in Maine or somewhere else, as does Texas Barbequed Ribs and GeorgiaPeach Pie. Avoid making descriptions too long. A sentence or two is fine. You want tointrigue the customer. If they have more questions, their server should be able to givefurther information about a dish or recommend a house favorite.

Tips for Writing a Restaurant Menu

Tips For Writing Your Restaurant Menu

http://restaurants.about.com/od/menu/a/Menu_Hub.htm retreived: Saturday,march 10,2012 at 3:40pm A restaurant menu is more than just a list of food with prices. It is a reflection of your

restaurant style and concept. A restaurant menu is not something to be hastily written up,but rather an important marketing tool that should be carefully considered. There arethree main parts of designing a restaurant menu: Description, Layout and Pricing.

Restaurant Menu Description
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A good rule of thumb when writing the descriptions of your menu items is to keep it shortand simple. But the description should be vivid and enticing- enough to make a guestsmouth water. Always explain what are the major ingredients are in a particular dish, anduse ethnic names if they fit, to add a bit of authentic flair to the menu description.

Restaurant Menu Design

A restaurantmenu designis a reflection of the restaurant itself. Restaurant menu layoutsand colors, whether formal, casual or playful, should match your restaurant concept,location or theme. Your menu font and color scheme should reflect your restauranttheme. For example, if you are opening a Mexican themed restaurant, vibrant colors suchas red, turquoise, purple and green would be good choices for a menu. These same colorswould look out of place on the menu of a French bistro or Italian restaurant. Ditto for thefont. A French bistro may have a classic script font or simple plain font, while a sportsbar or other casual restaurant might have a less formal or playful font. Beware ofchoosing a font that is hard to read or too small.

Restaurant Menu Pricing Food costand portion control are two ways to help price your menu correctly, so you

make a profit but be careful not to price yourself out of the local market. Another way toensure a profit is to create a balance of expensive and inexpensive items and limiting theuse ofmarket priceitems, which have the greatest fluctuation in prices.

Specialty Restaurant Menus Certain occasions such as holidays or local festivals, is a good time to put together a

specialty menu.Mothers Dayis prime example of when to use a specialty menu insteadof or in addition to your regular restaurant menu. Specialty menus and prix fixe menusallow you to expand your regular dining selection while still maintaining control overcost and inventory.

Staffing Your Restaurant

Hiring the right staff is crucial to any new restaurant. Good food loses much of its appeal if it

accompanied by bad service. Knowing the basic employee roles of the back of the house and the front of

the house will help you select the best candidate for the job. Experience counts for important positions,

such as head cook, dining room manager and bartender.

Staffing a RestaurantHiring a staff requires specific knowledge of each job within the restaurant. From front of the house

waitstaff, to back of the house kitchen staff, each person needs to be the best at their job, in order for a

restaurant to run smoothly.

1. Back of the House (3)
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Restaurant Cooking PositionsDepending on the size and theme of your restaurant, you may have just one cook running the show, or

you may have several cooks working together. The term chef and cook are often used interchangeably.

Originally a chef was a professionally trained individual. Today, it is often applied to anyone who works

in a kitchen. Here is a breakdown of the various cooking positions that can be found in one restaurant

kitchen.

Executive Chef- This is the head chef. He is the guy (or girl) who creates the specials, ordersthe foods, and works as the general manager of the kitchen. He probably does the scheduling, thehiring and the firing of kitchen staff, as well. This position is normally filled by someone withseveral years cooking experience and restaurant management experience.

Sous Chef- The executive chefs assistant, and next in charge, is a sous chef. It is the job of thesous chef to pick up the slack when the executive chef has a day off or is on vacation. They mayneed to fill in on the line, or work a particular station on busy nights. Many smaller restaurant

dont keep a sous chef on staff.

Expeditor- This is a non-cooking role on the kitchen line. An expediter is the person in chargeof organizing orders by table, and garnishing the dishes before the server takes them out to thedining room. An expeditor is only needed when it is really busy. The person who acts as anexpeditor should be very familiar with the menu, and know what the dishes should look likebefore being served to guests.

Line Cook- The most common title in the kitchen is that of line cook. Depending on yourkitchen set up and your menu, you may have two or thee line cooks or as many as seven or eight,or more. A line cook simply refers to a cook who is charge of a particular station in the kitchen.For example, a line cook can include the following titles:

Saut Chef- This person is in charge of anything cooked in a saut pan. Usually it is the best

cook on staff, behind the executive chef and sous chef.

Grill Cook- This person takes care of all of the items on the char-grill or flattop grill,such as meats, chicken and fish.

Fry Cook- This entry level position into the kitchen is in charge of anything that needsto be deep fried. French fries, chicken fingers, onion rings, all fall to this individual.

Bigger restaurants or those with a very specialized menu may employ these types of chefs aswell:

Dessert Chef- The person who is charge of desserts. Many restaurants have servers prepare

their own desserts. However, in more upscale or specialty eateries, a dessert chef prepares a

bulk of the desserts as they are ordered.
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Pastry Chef- This individual is in charge of making all the baked goods, such as breadsand desserts. If you are thinking about a restaurant with a bakery, then you may employ apastry chef.

Salad Chef- If a restaurant goes through a lot of salads, or other cold menu items, they

may keep a salad chef on hand.

Caller- Another non-cooking position. The caller calls the incoming orders to thecooks. He (or she) tells the rest of the kitchen staff what they should be working on.Often times the executive chef will act as caller during the dinner rush. A caller needs tobe quick witted and organized. They should know exactly how long menu items take tocook (a well-done prime rib takes much longer than a piece of grilled rare tuna steak) sothat meals for a certain table all come out at the same time.

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Front of the HouseHow to staff the front of the house in a new restaurant.

Hiring For Your Restaurant

Description of various positions within a restaurant, as well as what type of employee goes best in each

position.
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How to Hire a Bartender

How to hire a bartender. Hiring a bartender should be based on experiences, references and reputation.

A good bartender knows how to relate to staff and customers.

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2.Common Restaurant Jobs

http://restaurants.about.com/od/frontofthehouse/Front_of_t

he_House.htm

There are many different types of jobs necessary for the smooth operation of any restaurant. As arestaurant owner or restaurnat manager, you must decide what jobs you want to do and what you want

to hire out, such as bookkeeping and accounting.

Restaurant Server Job Description

A restaurant server job is more than just dropping food and collecting tips. It involves knowing the

restaurant menu, excelling at customer service and knowing when to ask for help.

Restaurant Jobs

There are many different types of restaurant jobs available, in both the front of the house and the back

of the house. There are also speciality jobs such as sommelier, butcher, pastry chef and sous cook.

Basics of Staffing a Restaurant

How to hire for a new restaurant, including chefs, bartenders, front of the house and other back of the

house positions.

How to Write a Restaurant Employee ManualHow to write a restaurant employee manual for new servers, kitchen staff and bartenders. Be sure to

include food safety, harassment and job policies.

How to Prevent Employee Theft
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what do you consider for putting up a business

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