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5 Tips For Making Your Restaurant Business Successful

by Designhill Tweet - in Restaurant Business - 6 min read

Restaurant Business

Last updated on June 12th, 2017

People go to restaurants to spend some memorable moments with friends and family while enjoying food. Still, many entrepreneurs either abruptly close their restaurant business or they are not satisfied with its performance. Most of them fail because they do not adhere to some basics of operating a restaurant business and end up losing their customers to the competitors.

A majority of restaurant owners wrongly believe that if a restaurant serves good quality food, then that is enough to run a lucrative business. Good quality of products or services is something basic. Beside the quality offerings, you need to turn your restaurant business into a brand that people can trust.

Many restaurants fail to explore their full business potential. Several of surveys have found that the failure rate in the restaurant industry is actually very high. According to the Restaurant Startup & Growth magazine survey, 23% of the restaurants fail in the very first year in Dallas, a major U.S city in the state of Texas. But the study also pointed out that if the restaurant survived the first year, then only 14% and 7% such restaurants close in the second and third year respectively.

A recent study by Cornell University estimates the failure rate even higher. The study shows that 60% restaurants are closed in the first year. This means that the starting phase is crucial for your restaurant startup. However, do not be frightened by these stats.

All you need to do to run your restaurant business effectively is to avoid making the mistakes others made. For example, many unsuccessful entrepreneurs opened a restaurant without proper research of the market and customers. They had no plan to deal with any financial emergency. Most of them had no marketing plan for the brand building, which is something you should be doing right away to start building a reputation for your business in your area. An established brand can easily ward off competition.

One of the key things that most of the restaurant owners ignore is a professional logo design. Logo is a visual identity of a business and it conveys a brand message to target consumers. So, look at some inspiring logos for restaurant startups and get an impressive logo for your restaurant.

Also, research your target customers to know about their economic, social and other backgrounds. Find out more about your competitors. Get right answers to some key questions before you launch your restaurant business. These are the key things you should consider before starting your restaurant.


Here Are 5 Essential Things For Making Your Restaurant Business Successful

1. Hire A Great Chef And Know Your Concept

Make sure that you hire a chef who boasts many years of experience in preparing the dishes to the utmost satisfaction of the customers. Chefs are like superstars. People go to a particular restaurant because it has the services of a chef who has a reputation for preparing unique dishes. So, think of hiring some talented chefs who can satisfy the taste buds of your customers.
Location of your restaurant also is important in determining the success of your business. Visit many places and do some research to find out which location will be crucial for the restaurant. Find out what local people are missing when they want to enjoy going to a restaurant. Make sure that your restaurant is in a busy area that has parking space.


Choose your restaurant concept carefully as well. Do you want to target only a few rich tourists and people of the area? Or, do you want to target the middle-class consumers? Know your target consumers to decide before launching your restaurant project. Some of the concepts you can choose are:
• fast food restaurant
• fast casual dining such as a café and a pub and a family style dining
• An upscale dining
• Food trucks
• Pop Up restaurant with no long time commitment

2. Keep Adequate Funds In Reserve

A sudden slump in the business is often unbearable for startup restaurant owners and many of them close the shutters. Most of the restaurants start well but face a financial crunch in off seasons when customers disappear. A wise move to deal with such a tight money situation is to plan your capital expenses for next many months.

Generally, new restaurant owners take around eight to nine months before break even. Keep enough money aside until that period is over. Moreover, you need the additional money also to wait and watch to find out, if your restaurant will catch on. The restaurant owners not foreseeing a possible crisis period spend all of their budget money quickly.

So, do not be carried away by the initial success. Instead, let your business settle first. Until then, spend your reserved funds cautiously.

3. Invest On Your Guests

You should treat your customers as guests. This implies that you will earn your business and money by treating them with quality food and service. Spend money on buying qualitative equipment. Train your restaurant people for good manners while serving your customers.

Read More Similar Blog:5 Inspiring Logos for Restaurants Start-Ups

Make additional efforts to connect with your customers. Make a close relationship with them while talking and serving by using phrases that establish a real emotional connection with the guests. Spend some money on the ways to giving your guest a memorable personal experience. They will spread a good word of mouth for your restaurant.


4. Run Your Restaurant As A Corporate Entity

Run your new restaurant in a professional way. Develop a system to generate demand for your food and service. Make sure that you retain the talented chefs with your restaurant.


If you are operating your restaurants from two locations, you need to learn some organizational skills.

5. Partner With Smarter People

After your restaurant gets some foothold, make sure that it evolves steadily afterward. You will need many ideas from many people for a steady growth of the business. You need to find out those smart people with smart ideas.


Once you get the ideas and the people, establish a strong emotional relationship and partnership with them. You must take good care of them. Their ideas are the basis on which you will build a reputation of your restaurant.

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You must take some strategic steps to run your restaurant business successfully. Treat your restaurant as a corporate business entity and run it professionally. Make sure that the restaurant is located in a busy area with a parking facility. Hire a great chef to satisfy your consumers’ taste buds. Do not overspend in the early stages of the business.

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