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#ELConsulting - Guidelines 

How to Open a Successful Restaurant Business?

Interested in being your own boss? Here is the right guide for you.

If you're interested in being your own boss, opening a restaurant is a great choice. Research indicates that the foodservice business is on the upswing and will reach $4.2 trillion by 2024, growing at 3.6% CAGR during 2019 – 2024.

Many people, in the beginning, assume that it's an easy task to launch a restaurant business, while in fact, it is much more difficult. Getting started in business has a lot of important business skills. But, for opening a successful restaurant business, you couldn't compromise on careful planning.

Having years of experience in restaurants, bars, kitchen management, products production, distribution, and branding, Ermanno Lelli has shared the following restaurant startup checklist with you to get started. So, if you're wondering how to open a successful restaurant, you must first follow the following steps:

1. Develop A Formidable Business Plan

As with any new business, starting a restaurant requires a strong business plan. Before making any investment, it is imperative to undertake detailed research on the type of restaurant, cuisine type, target customers, service style, competitors, and the latest food and beverage industry trends. Then start writing the business plan. Below are a few of the steps you'll need to take while creating a business plan.

● Specify Your Budget For The Business

The business budget is a core component of any business plan, specifically if you are seeking funding. A business budget will look at all the costs associated with starting your business, the funds required to manage the business once it is up and running, and a matter how long your business will generate revenue and how much revenue you plan to generate.

Among the costs you'll incur and factors to consider when beginning a restaurant business are the following:

○ Which type of restaurant business are you launching?

○ Expenses of staff and senior management

○ Equipment

○ Initial food product investment

○ Design for a physical space

○ Property investment

● Competitors Analysis

As you're getting your business strategy together, you should begin researching and evaluating your competitors. The business is a highly competitive industry, with many markets saturated. So before you start your small restaurant business, you should familiarise yourself with who else is out there and what they are doing.

While identifying competitors, keep an eye out for their strengths and weaknesses. This will identify any gaps in the market that your business can fill. This is also an excellent opportunity to examine business costs and estimate your profitability at this time.

● Identify The Market Gap

Finding a gap in the market is the optimal strategy for beginning a restaurant business. Where is there a lack of customer desire that competitors are not meeting? And just because no one is doing it doesn't imply there isn't a customer desire—to make a profit, buyers must want it and be prepared to buy it.

Identifying a gap in the market will assist you in determining your target market, your USP( unique selling point), and the type of restaurant you wish to open.

● Define Your Restaurant Style

Are you interested in starting a bakery, quick-service, coffee shop, fast-casual or full-service restaurant? All of these depend upon the market research you have done, so make sure you spend a few weeks (or even months) getting a deeper understanding of all these aspects.

● Specify Your Food Type/Menu Items

Choose a menu that best suits your meal offerings. You'll be more prepared if you do this early in the process. Keep tabs on what the latest restaurant trends are and customize your services to your target market.

● Define Your Restaurant Brand

Your branding — from your logo and graphics, the design of your menu, the music you play, and even the uniforms worn by your workers – defines your business and its values. It establishes the mission/theme for your establishment and informs guests of what to expect. So consider carefully how you wish to position yourself and the identity you want to project.

Once you have a business plan, go out and test it. First, find a few of your target clients and ask for their feedback and impressions. This can range from a quick street poll to a comprehensive market research study.

2. Look For Financing Options

The next stage in starting your restaurant is to secure financing. Most of us don't have enough capital on hand to cover the cost of opening a restaurant without financial assistance. Obtaining funding from outside sources will determine if you can make your dream of restaurant ownership a reality.

Here are a few ways to secure funding for your new restaurant:

● Contact family/friends

● Get a business loan

● Find outside investors or bring in a partner

● Obtain government assistance