When it comes to starting a restaurant, many entrepreneurs jump in and risk their time and startup capital without properly considering the idea. Like other business models, restaurants have a high failure rate and owners quickly realize that being in the restaurant business is not as glamorous or enjoyable as they first imagined.
With that being said though, for the right kind of people who have done the right preparation, restaurants offer excellent business opportunities. Many end up prospering and enjoying the lifestyle that comes with having a business in this industry.
Before you decide to take the plunge and open a restaurant, take some time to consider the following restaurant success factors. These are set out as a series of questions to ask yourself to see if you have what it takes to open and run a restaurant business.
1) Do you need experience and qualifications?
It is still possible for someone with no formal training or experience to open a restaurant and be successful. However, you will dramatically increase your chances of success if you have had some sort of formal training, experience, or both. There are numerous culinary schools in the United States that offer a variety of courses of various lengths.
If you can get some experience working in a restaurant, this is also a great way to learn how things are done and get ideas for running your own business. Start by playing a role and persuade the owner to let you work in a variety of roles so that he can understand the whole operation.
2) Do you have general business management skills?
Having good money management skills will come in handy when it comes to managing cash and budgeting for expenses. While not absolutely necessary, restaurant owners who understand all the cash flows coming in and out of their business are more likely to feel in control and make a profit. Taking a small business administration or accounting course would be extremely helpful if you don’t already possess these skills.
3) Do you have Creative Talent?
While you can rely on the creative talents of others, such as chefs and interior decorators, it will help if you are a creative person. You can then have a considerable contribution in creating a unique and viable restaurant concept, menu design and dining room decoration, among other things.
4) Can you cope with long working hours?
Running a restaurant business will require you to spend a lot of time away from your family, if you have one. When your kids are home from school in the afternoons and evenings, you’re likely working, as most restaurant business models follow this schedule (unless you’re concentrating on breakfast and lunch). Weekends are the busiest days of the week for most restaurants, so you probably won’t see much of your family on Saturday and Sunday either.
5) Do you have the full support of your family?
Clearly you need to have the support of your spouse, at least in the early days until you can step back and have the managers run your operation in a way that allows you some free time. And if you’re going to work with your spouse, you need to make sure your relationship is strong before you go into business together.
6) Do you have enough start-up capital?
You will need to make sure that you have access to the necessary funds to get your business up and running, as well as to cover operating costs in the early stages. You will also need funds for your personal cost of living for the first few months of the life of your business while it is established and income is still low. Unexpected expenses will undoubtedly crop up as well, so make sure you don’t come up short.
7) Are you a people person?
As a restaurant owner or manager you will have to relate well and communicate effectively with all kinds of people.
With your staff, you’ll need to display strong leadership skills and communicate clearly with them to maximize productivity and maintain good relationships with them.
Restaurant owners who have strong personalities and get to know many of their diners often become the face of the brand. Sometimes the owner even ends up being part of the attraction that draws customers to dine at specific restaurants. As a restaurant owner, you need to be prepared to go out into the dining room and mingle with your customers whenever possible. Be sure to do it in a way that doesn’t interrupt your dining experience.
With your vendors, city officials, inspectors, and other parties, you’ll also need to be able to communicate with them in a way that allows you to get what you want and build strong relationships.
8) Are you hardworking and organized?
As a self-employed restaurant owner, you need to be motivated and disciplined if you want to get everything done and achieve your goals. Being organized is the key to managing your time and the time of your employees effectively.
9) Can you stay calm in a crisis?
In the day-to-day running of your restaurant you will encounter many small and large problems, especially in the early days. To keep things running smoothly, you need to be able to take control in a crisis situation, calm down your employees, and offer quick, practical solutions that avoid stressing everyone out. As the owner and manager, you must work to eliminate problems so they don’t happen again.
There are many assets, personality traits, and other attributes that an ideal restaurant owner should have. To some extent, these restaurant success factors can be acquired, learned, or developed before opening its doors for business.
While you should always keep financial rewards in mind when starting out in the restaurant trade, it’s important to have other reasons for entering this business as well. If you love people, food, and hospitality, then there’s nothing you can’t learn on your way to becoming the perfect restaurant manager.
