Plans on launching a new restaurant and actually setting up a new one in reality, has its own set of challenges. As an inexperienced person, who is new in this industry and is not having enough planning, concept and ideas based on realistic data’s, can get his/her restaurant closed in the first year of opening. Don’t be one of them.The idea is to identify the bad signals on time, pay attention and take accurate decision and hopefully you can avoid failure. Let’s talk vividly about the most commonly committed beginner’s mistake.
1) Location of your restaurant – Location, for your restaurant decides your destiny in the first place. The first impression of how you are going to fare as a restaurant owner gets decided here. You need to know the place well, parking provisions, whether your brand favors the type of people, and their food choices. As an instance, if you have opened a romantic themed restaurant on a crowded busy streets of a city, then surely you need to bring a change on your analytic skills.
2) Low start up Capital – Often it is seen that budding restaurateurs end up spending more than what they have decided upon. In the other way, it can be said that if you have invested on your own funds and you have also taken some more amount on a credit limit from any institution, it is advisable not to spend the entire amount of your credit limit at one go. Instead spend on things which is necessary rather than luxury(buying expensive furniture’s, so that you can use your money on difficult times as you never know how much your operational cost can rise.
3) Unrealistically high rent – It is always advisable to see your pocket and take decisions accordingly. A wise decision can actually sum up good news for your coming days. So, better choose a place which suffices your need rather than a posh location, where your renting charge is more than what you earn. If you are so, then you have invited failure from the onslaught itself.
4) Ignoring your competition – Ignoring your competition and assuming yourself to be the best is the most vital reasons of failure. Well, we understand that you want to be ahead of him, but firstly know what they are focusing on, their way of market research. You know their cuisine, their restaurant type and also their operational techniques. In that way, you can save yourself on ending up doing the same things and also gaining knowledge.
5) Don’t indulge into bad partnership relation – Research says that whenever you end up getting loggerheads with your partner you have unknowingly invited doom for yourself. It is mostly seen that partnership involves good friends, sometimes couple or acquaintances. It works both ways. You both know your strength and weaknesses. So, the root plan should be chalking out the functions both of you will take ownership of, analyzing the market trends, the need of the hour, motivational skills and also to take the pressure of bad phase.
6) Know your customer – Restaurant owners spend a lot of time in researching about food, the interiors and also the price of the menu. But they fail to recognize their client’s need. To get success, you need to think from the perspective of your guest. Think what they would like when they will visit your eatery. Investigate your data and get the pattern in which your guests orders. Moreover give them the chance to voice out their opinions on things which you have thought and anticipated about. This will help you achieve success in the long run.
Bonus Tip: Choosing the right Software – To manage the restaurant operations smoothly, you need a great software. Gone were the days to use manual bills, cash registers and spreadsheets. FusionResto, a ready-to-use software takes care of your business and gives you freedom from complex day-to-day operations. It helps you make profits sooner, reach break even faster and open more restaurants quicker.