Restaurant Business


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  • Clearly define your business ideaHave the passion for owning this particular businessAre you willing to commit to the hours and frustrations? Ask lots of questions to small business owners that way you are getting good information and idea
  • 1. A business plan is a well defined and structured document 2. In order to raise capital, a business plan will be shown to bankers, investors, and lenders 3. Sets a marker to see what we do wrong4.Without a business plan, we can’t track how we are wrong and what we did wrong5.
  • 1. By having a business plan, we can manage the conflict between short-term problems and long-term goals2. It is important to come up with a strategic plan so you know where you want to be in three to five years 3. Risks are important but they are important to come up with just incase they actually happen to your business 4. By listing the risks, it helps knowing to deal with them
  • 1.By writing down your questions and answers allows you to change them as you go along2.By keeping a binder is a good format3.
  • “Strong family support along with understandable friends go a long way to making your restaurant a success.” (pg. 11)What matters to you?Know how to manage your time Set aside time for yourself, family and friends
  • By knowing how to problem solve, make decisions, plan, communicate, and multi-task will help you to be a good leader in your business and know what to do when these situations come up. Problem solving skills make the business run more effectively Decision making is hard. Communication is the most critical skill because the way you communicate to people is important Multi-tasking: by doing this, allows you to complete more tasks during a short period of time
  • 1. Managementskills are good to have in order to handle situations that come up in a restaurant business2. Each employee will have their task and work as a team 3. Have the confidence and respect your employees
  • 1.Management is a big responsibility!2.Talk to staff members everyday 3. By creating a friendly working environment will make the employees want to stay and not leave4. Make employees happy and treat them with respect 5. Employees don’t share the same needs in a motivating workplace6. Think about what makes a workplace more motivated?
  • 1.
  • These are some things to keep in mind while opening up your restaurant business.Deliveries come often and when they come, you have to pay them on the spot. Also, Knowing the payments terms is important because you want to make sure you sell enough food in order for the new orders to come in.
  • It is important to know who your food supplier and beverage supplier is and when they will come and deliverWhat days will they deliver to the businessKnow how much food needs to be delivered Make sure the profits you receive from food, is enough to pay for the ingredients you use to make that food
  • A job description is extremely valuable.It helps make clear what the job involves and its responsibilitiesJob descriptions show a clear understanding of responsibility and what is expectedWhen hiring, you know what skills you are looking for that will make a person successful in a given job
  • 1.It is easy to look good in an interview but don’t always jump on the first applicant2. While doing interviews, make sure to check references 3. Choose best person for the job, NOT best friend4. Ask plenty of behavioral questions
  • Who and what do you need?When hiring, discrimination problems arise so you can be selective but the last thing you want is discriminationGet the candidates to think on their feet If you are qualified to do the job, do you have the skills?
  • breakfast, lunch, dinner, a bar Promotions, ads, tv, magazinesProvide good food and excellent service and providing a pleasant gathering for people
  • Targets: downtown community, tourists, young adults, special eventsMake grand-opening trueLook at marketing opportunities Keep up with trends
  • Know what menu items you want to offer to the customersBe creative about themPrice concerns are risky If they are too high, it can turn down peopleKeep a reasonable price that still allows you to make profit and pay the bills withNot all restaurants accept credit because it charges yourself to swipe the credit card That might turn down customers.
  • Have difference in your restaurantBy changing up your food choices, customers will be more attracted 3. Customers like unique things that are different from all other restaurants 3. Wide variety dishes on menu4. Reasonable price5. Originality of food
  • 1.Customer service is a very important thing2. Communication is important because it is good to speak in a professional way and have a positive tone3. Negative emotions will make the customer not feel welcomed to come back
  • Apologizing is important because it will enable yourself to connect with the customer. Customers are important because they can “make or break your business.”Customer should feel the want to come back again and enjoyIt is a huge turnoff when people working in a restaurant are rude to customers4. That is how people lose business by having bad customer service
  • Don’t make promises unless you will keep themReliability is one of the keys to any good relationshipPut in some extra whether it’s a coupon for a discount Even just a smile makes people happy
  • 1. Chain restaurants are growing as private companies and are taking over the market
  • 1.Supermarkets and Convenience stores are recent competitors for restaurants2. These businesses offer customers food that’s freshly prepared but it is not always healthy3. Customers consider dining out as something to do on a special occasion
  • 1. Priceis a major marketing concern2.While deciding on prices for the menu, make sure that it will cover the costs3. Don’t make the mistake of under pricing just to get customers
  • 1. Maximize profits? Are you trying to be competitive?2. Build up a new product line?A review of your pricing strategy is valuable in addition to planning
  • 1. In addition to price competition, take a look at quality, service, cleanliness, unique foods, and freshness before judging2. Just by making the price lower, does not mean it makes everything else better3. The price can be low, but the service is bad or the price may be high, but the service good
  • Location is importantDepending on what type of restaurant you plan to open, where is the perfect location?3. Where do you want to locate because you want to make sure your restaurant is in a good area where people are willing to spend money and buy your food4. Good population =good money
  • If people do not see your restaurant or have a hard time finding it, it is a big turn-offHave curb appeal, well-lit areas, and landscaping maintenance Make sure name display is out front
  • 1. When you have decided on location, check with the lawyer for licensing requirement2. Licensing requirements will vary depending on location3. Advertising can be risky 4. Think about your target markets, buying habits, and expectations It is important that the local health department does its job and makes sure the restaurant is well sanitized. Remember: You are dealing with food and a dirty restaurant will turn down customers. The local health department will shut down your business if it does not pass the health inspection. By being a part of your local restaurant association, allows you and the members to share business and talk about marketing ideas.
  • It is important that the local health department does its job and makes sure the restaurant is well sanitizedWhen dealing with food, customers can get turned down quick if the place is dirtyThe local health department will shut down your business if it does not pass the health inspection By being a part of your local restaurant association, allows you and the members to share business and talk about marketing ideas
  • It is important to meet with these professional advisorsThey will keep your accounting organizedYou will need your accountant to set up your bookkeeping and accounting systems
  • 1. Record keeping is important because for tax and legal reasons2. The legal form is an important choice3. If you make the wrong decision in selecting your type of business, the penalties are high4. Consultants have experience and even though they might be expensive, they have great experience and training
  • 1.Time is precious2. While owning a restaurant business, it could take all your time away from your family and yourself if you let it3. Avoid those burnouts4. Better judgment and make better decisions
  • Knowing the customers is important because you want them to feel welcomed and come back againAsk too much and you risk turning off customers 2. While maintaining competition and talking with their customers acts as an improvement for your own business as well4. They come back 5. They refer people 6. Make them feel special7. They think you care because you remember what they like
  • 1.There are many different kinds of restaurants out there to open 2. Take these decisions into consideration3. What kind of location is it in, in order to chose whether the business is family oriented or fine dinning
  • Customers like places that are open all the time If your place is going to close early, people get turned down
  • 1. Keep in mind if your restaurant is going to be trendy2. Trendy restaurants attract people more3. No one wants to sit down in a boring restaurant with their family4. Difference means a lot to people
  • 1. This is an important task2. Naming is important because it is a part of advertising3. Reflecting a theme 4. Adding a personal meaning
  • 1. What impression will it leave on the customers?2. Think of a name that will attract more customers3. It is all about attracting your customers4. Good restaurant names are easy to remember and spell
  • This can result in negative cash flow. You don’t want to have more money going out than coming in. The quick rich stories are ridiculous. You will not get rich overnightBy starting small is a good way to build wealth
  • It takes a few years, after the business has grown, to start making a lot of money.People think that they can just borrow loans here and there and they get to be too confident about their business and then end up in debt.
  • This can result in negative cash flow. You don’t want to have more money going out than coming in. The quick rich stories are ridiculous. You will not get rich overnight. By starting small is a good way to build wealth. It takes a few years, after the business has grown, to start making a lot of money.People think that they can just borrow loans here and there and they get to be too confident about their business and then end up in debt.
  • Consider these risks in you start-up planBy planning ahead will help you get organized with your businessA written business plan will help you focus on important parts of your business, use your resources wisely and save a lot ofWhile having experience in management, allows you to handle situations better
  • 1. If you know you have your family’s support, it will help you improve emotionally2. At times, things get tough and someone might want to just give up3. Don’t give up because you have to put a lot of energy into your business in order for it to be consistent4. Be prepared to be tired5. It takes a lot of dedication to be tired
  • 1. Most cities and counties require food-service business operators to get various licenses and permits2. The health department will inspect your facility before issuing your permit3. They will be concerned with food storage, preparation, food display, employee health and cleanliness, equipment, sanitary facilities and maintenance
  • 1.The fire department may require to get a permit for your business2. If you don’t do this, fighting a lawsuit is expensive and not worth it so if this permit is required, do it the right way3. This permits allows you to:4.maintain, store, use, and handle materials 5. Install equipment
  • Easy to start up, unlimited liability, easier tax systemSimplest business to star up Advantage: business is easy to stopDisadvantage: pay out of pocket
  • Easy to start upAdvantage: not taxed as hard as a corporation Disadvantage: all partners are responsible for one another’s decisions Partners can disagree
  • 20% of all US businesses They can buy and sell property Sue and be suedAdvantage: Limited liability Disadvantage: Tax consequences
  • Brand familiarity & many expenses are paid for by corporate officesProvides training and advertising Advantage: brand familiarityDisadvantage: its harder to change the menu
  • 1. By placing charts, labels, and placards in areas where staff will be reminded, reinforces employees on washing their handsInspections including storage of food, employee’s personal hygiene, cleanliness of utensils, plumbing, floors, garbage disposal and animal control should be performed every six months in order to reinforce the sanitation inspectionsSanitation is important because it prevents the spread of avoidable diseases
  • While food sanitation standards are valid in a food-service operation, they are just as important in your home kitchen By touching your eyes, mouth, ears, nose, hair, or smoking can contaminate food Gloves can spread germs as well Salmonella bacteria are the number one cause of food borne infection in the U.S.
  • Depending on what type of restaurant business you own, depends on the hours. If you are going to be self-employed with your own business, in order to please the customers, it matters how late you stay open especially on the weekends. Customers like it when they can go out to eat late and find a place that is still open. It is a turnoff when customers see the closed sign early.
  • The concept of co-branded or dual-branding continues to be a strong trend in fast food markets. Nutrition-conscious customers show interest in health and nutrition. Many customers are looking for low-fat dishes and fresh foods. Snack foods are increasing in popularity. Restaurants have respond with more natural and organic menu items. Food operations who are trying to reach this market are offering children’s menus.
  • Restaurant Business

    1. 1. Restaurant Business<br />IvanaDeLuca<br /> Per. 9<br />
    2. 2. Overview of Presentation <br />Restaurant Business<br />Class Activity <br />
    3. 3. Thesis<br />Opening a successful business takes time, commitment, and planning, while allowing the owner to express his or her skills and talent.<br />
    4. 4. Planning <br />Decide what type of restaurant<br />Talk to people with experience <br />
    5. 5. Business Plan<br />Scope of Business<br />Mission Statement <br />“Why do you want to start a business?”<br />“What do you have to give?” (Sullivan 71)<br />
    6. 6. Risks<br />Strategies <br />Goals & Objectives<br />“Goals should be realistic and doable within a one to three year timeframe.” <br />(Sullivan 71)<br />
    7. 7. Keep track of thoughts, ideas, questions <br /><ul><li>“Your ideas change, you change, and your business will ultimately be better for it.”(Rainsford 7)</li></li></ul><li>Work/ life balance <br />“Make sure to consider how your new venture will affect income, hours, support level, commitment to family, and personal life.” (Rainsford 7)<br />
    8. 8. Skills In Management <br />Problem solving, decision making, planning, communication, multi-tasking<br />
    9. 9. “Formal management courses are a fast way up the learning curve if you’ve had little management experience.” (Rainsford18)<br />Management Courses<br />
    10. 10. M<br /> O<br /> T<br /> I<br /> V<br /> A<br /> T<br /> I<br /> O<br /> N<br />“Managers can motivate their staff by praise and incentives, to create a friendly working environment, and having diligent employees, that are less likely to resign.” (Rainsford 19)<br />
    11. 11. Managing People<br /> (not done)<br />
    12. 12. Food Distributor <br />Determine the sources you will use <br />Payment Terms <br />
    13. 13. Deliveries come quit often<br /> “What days of the week will you deliver to me?” (Casey 114)<br />
    14. 14. Hiring Process <br />Job Description<br />“Job descriptions help you determine wage ranges and<br />help to communicate with your employees.” (Casey 116)<br />
    15. 15. “Don’t depend on help appearing off the street.” (Casey 116)<br />Interviews <br />
    16. 16. Be Selective <br />“You don’t have to hire anyone you don’t feel is willing and able to do the job.” (Casey 116) <br />
    17. 17. Marketing <br />Services and Products<br />How are you going to advertise?<br />Values and Aspirations <br />
    18. 18. Who will you be selling to?<br />“Always place the customer at the center of your strategies.” (Rainsford 26)<br />
    19. 19. Marketing Components <br />What are the menu items? <br />What price range are you going to offer?<br />How will they pay? <br />
    20. 20. What makes you different?<br />“What can you offer your markets that they are ready and eager to buy?” (Casey 28)<br />
    21. 21. Train employees to be courteous<br />“The role of common courtesy is often overlooked.” (Rainsford 128)<br />
    22. 22. Initiative <br />“You should be able to apologize and correct a mistake.” (Rainsford 128)<br />
    23. 23. “The customer makes or breaks your business.” (Rainsford 129) (Sullivan 121)<br />Coddle the customer<br />
    24. 24. Competition <br />Chains<br />“What these restaurants don’t offer is the personalized attention<br />that small businesses provide.” (Lynn 9)<br />
    25. 25. Competition <br />Supermarkets <br />Convenience Stores<br />
    26. 26. Profit Objectives <br />Price<br />“The menu prices you set should reflect not only the cost of food but also an intangible image factor.” (Casey 69)<br />
    27. 27. Objectives <br />Objectives <br />“Pricing is inherently strategic, so be clear on your objectives.” (Casey 69)<br />
    28. 28. Price Range <br />“ Make sure that you charge enough to cover your costs.” (Casey 69) <br />
    29. 29. Location <br />Population Base<br />“Are there enough people in the area to support your business?” (Casey 35)<br />
    30. 30. Visual Appeal <br />“If guests will be arriving by car, then access and adequate parking are necessary.” (Casey 35) <br />
    31. 31. “As a rule, it is safer to spend more money on location and less on advertising than vice versa.” (Rainsford 48) <br />Space Cost and Advertising <br />
    32. 32. Health Department <br />“ Proper food handling techniques and sanitation are critical.” ( Lynn pg. 49) (Rainsford)<br />
    33. 33. Outside Advisors And Professionals <br /><ul><li> Bankers
    34. 34. Accounting</li></ul>“Record keeping has made proper personal records almost as important as keeping proper tax and accounting records.” (Rainsford 54)<br />
    35. 35. Legal Form<br />“The tax code is tens of thousands of pages long, and the penalties are so high.” (Rainsford 52)<br />
    36. 36. Budgeting Time <br />Time for family/yourself<br />“The temptation to spend all your time at work is tempting.” (Casey 138)<br />
    37. 37. Time to know customers <br />“Listen twice as much as you talk, and you’ll become wise.” (Casey 138)<br />
    38. 38. Deciding the type of Restaurant <br />Full service with waiters and waitresses <br />“What type of guests will it cater to?” (Casey 45) (Margretta) <br />
    39. 39. Families and casual dining/fine dinning <br />
    40. 40. Trends <br />make your decision on what you like to cook or what you like to eat. You may be the only person in that market segment.” (Casey 45)<br />
    41. 41. Naming Your Restaurant Tips <br />Straight forward and descriptive <br />“The name you pick should tell your markets what your restaurant is about, not baffle them.” (Casey 47) (Sullivan) <br />
    42. 42. Distinctive Naming<br />“You still want to stand out from the the crowd.” (Casey 45)<br />
    43. 43. Myths <br />“I can bootstrap it”<br />“Too little money invested in the business is the biggest cause of small business failure.” (Rainsford) (Sullivan) <br />
    44. 44. Myths <br />“I’ll get rich overnight”<br />
    45. 45. “I have nothing to lose”<br />“It isn’t that easy to find other people’s money and it never makes sense to take on debt if you can avoid it.” (Rainsford 2)<br />“It takes money to make money” <br />
    46. 46. Reducing Risks<br />Plan ahead<br />“A written business plan is inexpensive insurance.” (Rainsford 4)<br />Get experience in management <br />“Combine experience with course work and you will have an almost unbeatable start.” (Rainsford 4)<br />
    47. 47. Reducing Risks<br />Have family’s support<br />Be prepared to be tired <br />Follow your strengths <br />
    48. 48. Licenses and Permits <br />Health Department <br />“The type of food your restaurant specializes in isn’t an issue; what is important is how you store and prepare that food.” (Lynn 194)<br />
    49. 49. Licenses and Permits <br />Fire Department<br />Your best strategy is to avoid situations that could result in any potential liability.” (Lynn 195)<br />
    50. 50. Types of Business Ownership<br />Sole Proprietorship<br />Business owned by one person or family<br />
    51. 51. Partnership<br />Business jointly owned by two or more persons<br />
    52. 52. Corporation<br />Business recognized as an individual operating as a separate entity<br />
    53. 53. Franchise<br />An independently owned business controlled by a corporation <br />
    54. 54. Sanitation <br />Standards for employees <br />“Too many incidences of food contamination that lead to illness can be traced to workers failing to wash their hands.” (Lynn 200)<br />
    55. 55. Sanitation <br />Food Storage <br />“A single case of food poisoning can put a restaurant out of business.” (Lynn 200)<br />
    56. 56. Setting Hours of Operation <br />Depending on what type of restaurant you open, depends on the hours <br />Quick Service Restaurants (10:30 & close between 9-11)<br />National fast-food franchises (6a.m. or 24 hrs.)<br />Casual Dining (lunch & dinner) (10:30a.m.-9 or 11p.m.)<br />“These establishments open around 10:30a.m. and stay open late, especially on weekends to appeal the post-dinner crowd.” (Lynn 14)<br />
    57. 57. Industry Trends <br />Co-branded operations <br />“When two or more well-known restaurants combine their menus in one location to offer customers a wider selection.” (Lynn 5)<br />Nutrition-conscious customers<br />Popular menu items<br />“Customers are looking for menu items that are compatible with weight-loss trends.” (Lynn 5)<br />A focus on children<br />