5 Things You Should Know Before Starting a Food Business

5 Things You Should Know Before Starting a Food Business

Are you looking for a fresh new challenge? If so, the food industry could be perfect for you. Here are 5 things you should know before starting a food business.

The statistics on business failure rates are alarming.

60% of restaurants don’t make it to their first anniversary, and 80% don’t get to five years.

As unsightly as these stats are, they should not steer you away from your passion for venturing into starting a food business.

But it would be foolhardy to jump into the food business blindly. Here are some pointers to improve your chances of success.

1. Research Is Key

To be profitable, you must maximize patronage. For you to do this, you need to have an in-depth understanding of who your target market is.

A clear picture of who this is will steer your pricing decisions, décor, ambiance, and location.

Look at their income levels, age, hobbies, lifestyle, and so on. Once you have this and can feed their needs, then you have higher chance of getting your food business off the ground and sustaining it.

2. Wear Many Hats

As much as possible, try and have a good understanding of as many areas of your business as possible.

This will help you to hire the best people for the job and will make supervision easier. Again, you will be in a better position to take over should a role fall vacant unexpectedly.

Granted, it’s not always possible to get a firm handle on more than a handful of roles when also juggling the responsibilities of running an eatery.

For starters, consider taking a bookkeeping course, leadership, or an IT course.

3. Create a Concept

People create deep connections with food and, by extension, dining experiences.

Creating a concept helps you zero in on your restaurant’s personality as well as how it differs from the competition.

To further clarify this, evaluate your reasons for starting the restaurant in the first place.

Are you looking to franchise? Do you want to serve certain foods you love, or will you approach it purely like an entrepreneur by serving what people want?

This stage should include creating a company culture. Think about what you want your eatery to be known for apart from food.

Is it superior customer service, is it a fun, easy time, or do you want to offer a formal exclusive dining experience? Whatever it is, think about it in the initial stages as you plan on execution.

4. Location Can Build Your Food Business-or Break it

Your location will impact the food business in almost as much the same way as will your menu.

If your location is ridden with the competition, it is hard to find, or has poor visibility, you might find yourself in a crunch.

When picking a location, think about your target audience and where they are easily found. Similarly, try to get to an area with heavy foot traffic as this puts your restaurant in front of many eyes.

The more people that know you exist, the higher the number of diners you will have on your tables.

Think about accessibility and parking, as well.

5. Automating is a Life Saver

A restaurant in Boston takes automation to the next level. Clients place orders through a digital kiosk. They can then watch a robot prepare and serve their meal with precision.

Clearly, this is a bit extreme. Automating, in this case, means acquiring useful software to help you manage your operations seamlessly.

Some of the things you can automate include bookkeeping, inventory management, and human resources.

Aside from getting you organized, automation creates records that help in decision-making. It also frees up your time to handle other aspects of your food business.

Still Have the Stomach for It?

If you have the stomach for it, the restaurant business can be both exciting and lucrative. The trick-if any-is to do your homework, start small and make incremental steps with time.