An increasing number of Americans are starting to prefer prepared food from restaurants at home or dine out. The amount of food service companies have skyrocketed to almost 1 million. Consumers want tasty dishes without the hassle of making them or cleaning up afterwards, and it seems the trend will continue to grow. This means that now is the perfect time for restaurateurs to develop their own restaurants. But even though the demand for prepared food is huge, many restaurants fail within their first year of opening. Here are some critical tips to keep the doors of your new restaurant open.
Recruit Your Top 3 MVPs. This means take time to really flesh out a great concept, find and secure a profitable location, and recruit a fantastic master chef. Ensure that your location suits your concept. For example, if you specialize in sea food and have a lake or sea theme, you should probably not be located in the middle of the prairie. Also make sure the location is easily accessible. Avoid quaint, tucked away locations. If you don’t have a lot of experience in the biz, or a large marketing budget, the chances are your ‘best kept secret’ restaurant will stay a secret.
Never Too Much. You can never have too much capital. Try to collect 6 to 9 months of working capital before starting your venture. You’ll be surprised just how fast expenditures will pile up, and you don’t know when an emergency might occur. If you don’t wind up using your reserve, keep it as a reserve.
Don’t Cheat Your Guests. Good restaurant owners should always be looking for ways to save money. However, cheating the guests out of amenities or sacrificing the quality of the dining experience should never be the first place you go to save a couple of bucks. In fact, a significant part of your budget should go towards increasing the customer experience. The better the experience, the larger the customer base grows, and the bigger the revenues.
Put Systems in Place. Failing to put systems in place will lead to the decline of your restaurant in the blink of an eye. Make sure there is a clear chain of command and protocols to follow that can keep things running smoothly, even in the absence of a manager.
First American Merchant is the online lender that gives merchant cash advances to restaurants and other small businesses. FAM knows that our comprehensive loan programs and cash advances will get your business off the ground, or assist in your time of need.
Contact FAM to learn more about our easy loan options and cash advances for your restaurant today!