3 Tips For Success in the Restaurant Business

Starting your own restaurant is a tough business venture. It’s a competitive line of work, costs are high, and business can be unpredictable. But a good eatery can be a robust success — and so if you’ve got a great idea, and the means to see it through, it may well be worth the effort. Here are three tips to help you on your way if you’re planning to start a restaurant.

  1. Choose Your Niche Wisely

With so much great cuisine around, particularly in large cities, the market can begin to feel oversaturated. In fact, it often is, and many new restaurants fail to gain traction simply because they are one of many similar businesses in a crowded market.

If you are opening a restaurant, carefully determine what sort of cuisine you’ll serve. In some cases, this may be obvious. If you come from a particular ethnic background, or have training in a certain type of cuisine, the question may be a no-brainer.

If, on the other hand, you’re a foodie who’d like to own his own place, it’s worth spending some serious time determining just what has the best chance of success in your market — and, not incidentally, what type of food you know best.

  1. Hire a Great Staff

A good crew is the lifeblood of any successful restaurant. Given the fast-paced nature of this line of work, fluid operation between front-of-house and back-of-house is necessary for success.

While it’s tempting to cut corners in startup costs, you don’t want to skimp on a great staff. If you’re not personally a cook, hire an experienced chef and sous chef to whom you can delegate running the kitchen. Likewise with front-of-house: you’ll generally want a head waiter, maitre d’, or other front-of-house manager who can capably train your staff and keep the operation running smoothly.

  1. Compare Financing Options

Consider multiple options for funding a new restaurant: commercial loans from a bank or credit union, SBA loans, a business line of credit, and if necessary, alternative financing options. One or several of these may be the path towards funding the venture.

But be careful in accepting any loan: restaurants are difficult to keep open, and many unfortunately do have financial trouble. Take stock of interest rates and fee schedules to ensure payment is realistic.

Ultimately, though, success as a restaurateur is possible. With effective planning and a solid knowledge of the local food scene, it’s well within reach.