How to Start a Restaurant Business
Starting a restaurant business is an alluring dream for many but a reality for only a select few. The restaurant business is like the start of the New York marathon. Thousands of people start the race but only a fraction of those people finish and an even smaller percentage actually succeed in meeting their goal for the race. Why? Well, it simply isn’t as easy as most people think and there are key skills and attributes that the entrepreneur must consider when thinking how to start a restaurant business. The National Restaurant Association (“NRA”) claims that over 42,000 new licences are issued each year in the US. These are lofty numbers and you would be forgiven for thinking this is a positive.
The reality is that restaurants have the highest attrition rate of any business type. The attrition rates in the sector very wildly, ranging from 90% failing in the first year, to as low as 20% in the first year of trading. A recent academic survey conducted by researchers at Michigan State University found that 27% of start up’s failed in the first year; after three years 50% of those restaurants were no longer in business; after five years 60% had fallen away and before the end of the decade 70% of restaurants were no longer trading. While these may seem like scary statistics a subsequent study at Cornell University in 2005 revealed that 81.4% of small business failures result from factors within the owner’s control. In other words, despite these damning metrics, failure is by no means inevitable. So how can restaurateurs evade this landmine? Here are our top tips on how to start a restaurant business.
Top Tips For A Successful Restaurant Business
Most people dream of having a buzzing little establishment with perfect ambiance, a hoard of adoring, loyal customers and a cash register that is brimming with money every night. Nice dream, but it takes a special kind of person to make that a reality.
Key Personal Traits that typify a successful restaurateur. baden baden sushi
1. Unwavering Tenacity
The restaurant business is characterized by long hours, customer complaints and an endless list of tasks to perform, and that’s before we even get into the strategy! This is not an easy ride and to succeed you will need all the determination at your disposal to get through each week. Ask any chef, restaurant owner or hospitality worker. It is hard to succeed and only the strong survive. You need to stay the course and remain positive in the face of adversity. Most restaurateurs lament about the hard start but also revel in the “tipping point” when their business really took off. Maintaining the momentum is the trick and tenacity is pivotal in achieving this.
2. Attention to detail
Everything comes down to the detail in this game. You are providing an experience for your customer base and if you concentrate on getting the detail right you increase your chances of making that experience meet the customer needs. This trait is so important, not just in terms of the quality control of each dish that is served but also in terms of the kitchen cleanliness, ensuring licences are up to date, that the booking system works, the list goes on… If you have a “devil may care” attitude then you won’t last five minutes. Being meticulous about all aspects of you business from the product to the business strategy is absolutely critical.