Opening your own restaurant could be fulfilling a lifelong dream, but while this venture is exciting, it’s important to have a solid plan of action to get things off the ground. That begins with a strategic business plan to help with crucial decision-making and establishing clear business objectives. Some of the factors that you will have to consider include financing options, location, potential customers, concept and menu, staffing, restaurant insurance, and the competition.
You must consider all the crucial elements that are important to your restaurant’s success before opening. Let’s take a more detailed look at five things that you should consider before opening a new restaurant.
1. Financing
Financing is one of the biggest hurdles that many first-time restaurant owners have to tackle. You need capital to get your restaurant business off the ground, and perhaps to meet either some short-term or long-term goals as well. Restaurant financing options can take a number of forms, including the typical bank loan, but other options like merchant cash advances, business line of credit, crowdfunding, small business association (SBA) loan, or an alternative loan. You have to think about which option is ideal for you, your unique restaurant and your business objectives.
2. Location
A restaurant’s success is dependent, in part, on its location and not just the menu. Your restaurant should be in a location that will attract customers. Think about factors such as target customers, area traffic, accessibility, visibility, and parking. You want to be in a prime spot that will draw customers, helping your business to take off and grow.
3. Target Customer
Simply opening a restaurant doesn’t mean that customers will be pouring in on the opening day or thereafter. Once you’ve established your target consumer, you need to come up with a plan to not only attract them but also retain them. Factors to keep in mind include income level, sex, education, value, lifestyle, and age. Defining your target customer will help to determine who will likely dine at your restaurant and well as key business strategies related to pricing and promotion.
4. Restaurant Insurance
Insurance risks are things to consider before opening and during the operation of your restaurant. Having employees, the risk of injuries and the protection of property are all crucial factors that come to mind as they relate to insurance. Your restaurant is an asset and every aspect of it should be protected, and as such, having the right restaurant insurance can give you peace of mind. The types of insurance that you may need for your restaurant could include property insurance, general liability insurance, and employee coverage.
5. Menu
The menu is a staple of every restaurant and can be the thing that largely influences if people will come to your establishment. Every restaurant has a concept, and the menu is essential to the overall service you’ll be offering. While knowledge of food trends could be useful, some elements that should be included on the menu include meatless (vegan/vegetarian) options, kids’ options, desserts, and beverages. Careful planning is needed to produce a cost-saving menu with meals that patrons will love.
Opening a new restaurant requires careful thought and planning. Success from day one requires strategic decision-making and a clear vision. It’s crucial to consider factors such as financing, location, target customer, restaurant insurance and menu. Contact our experts at American Tri-Star Insurance to make sure all of your restaurant insurance needs are met.
