It is no secret that a restaurant can be a very lucrative business but is also one of the most challenging businesses to run. This might sound discouraging, but it only takes one look online to realize there are numerous successful restaurants.
We have looked through the stories of successful restaurant business owners and entrepreneurs to see what contributed to their success. Here are their secrets.
Start By Working in a Restaurant
This is not something you might want to do especially if you want to start a restaurant right away. However, nothing prepares you for your new business like seeing how other people are doing it. Working in a restaurant should be supplemental to the books you read and the courses you take.
Pay close attention to how the restaurant operates, how the manager treats their employees, employee expectations, and the various positions to learn what everyone’s role is. This will come in handy when you hire your own employees.
One thing to remember is that there are several types of restaurants, and you might want to start just one type. Try to get experience in the type of restaurant you are interested in starting. Learn everything you can about this type of restaurant so that it is easier to bring what you learn into your new business.
Do Thorough Market Research
The restaurant niche can seem like it is already saturated, but it is not. It is important to do market research to discover underserved areas in the business. For example, many restaurants specialize in niche delicacies because they discovered it was an underserved area.
Talk to other restaurant owners to see the kinds of customers they serve, the types of food they offer, the combinations of services available, and the volume of business they do if they are willing to share. This is crucial information to help you not only know the types of customers to serve but to get an insight into your potential competition once you start your business.
Do Market Tests
Once you know your niche and think it could be right for you, test the market. Create the delicacies and environments you would want in your restaurant and invite a sample group consisting of people in the demographics you are targeting.
When doing the tests, ask questions. People will often leave positive remarks because of the free food. The questions will help you understand what they truly think. Ask what they like and don’t like. Ask them if there are any improvements you need to make to ensure they become permanent customers. Finally, ask what they are willing to buy and if there is an alternative they could settle for.
Foster a Professional Work Environment
As they say in the food industry, “good help is hard to find” and because of this, restaurant owners need to put measures in place to keep their best employees when they find them. A restaurant employment handbook is an ideal tool that creates the right environment for restaurant workers to not only thrive but to want to continue working for you.
It sets out rules for anti-harassment policies, as well as health and safety for the employees, and sets out expectations for your employees and their colleagues. By having these rules and protocols in place, restaurant owners can use a restaurant employee handbook to create a professional work environment that any restaurant worker would want to work in.
Although there are templates to help you create this legal document, every restaurant is different and so your handbook should be too. Yelp has put together a detailed guide on how to not only create the perfect restaurant employee handbook but also what to include in it. This way, it helps you create the culture and professional work environment that makes employees proud to work in your establishment. While Yelp makes it possible for people to find and rate businesses they have interacted with in the past, their restaurant section provides you with everything you need to run a thriving restaurant business. From advice on starting and running a restaurant to information about the best tools to run your business successfully, Yelp has it all.
Never Let Customers Leave Unsatisfied or Hungry
All restaurants have unsatisfied customers. The difference between successful restaurants and those that do not do so well is how they handle these issues. Many restaurant owners say they investigate all complaints and find out if the issue is with the customer or the preparation of their meal. In many cases, they end up replacing the meal, offering an apology, or inviting the customer back later with a discount code.
Many customers want to be understood and want the restaurant to see their point of view. Restaurant owners should do their best to ensure their customers leave happy, and knowing you are apologetic, understanding, and sympathetic always helps.
Consistency is Important
There are so many people who no longer frequent the restaurants they used to because the food changed. Once you have recipes that work for you and that you know your customers like, you should stick with them. While it is great to experiment from time to time with new recipes, spices, or even whole ingredients, try to keep it to a minimum and test the changes first before making them permanent. If there are any complaints about changes in how the food tastes, listen to your customers and make the necessary adjustments so they leave happy the next time they visit your restaurant.
Get Everything in Writing
This one is for restaurants that do outside catering. Never assume any business has the go-ahead until all papers are signed. Signed contracts and purchase orders will save you a lot of time, money, and effort because you might prepare for an event or large order, only to learn the client picked a different restaurant. Also, never buy any materials or supplies until you have the requisite contracts signed with your client. While it is impossible to predict how a business will do, it is important to prepare for success. Starting with passion, attention to detail, and following in the footsteps of restaurant owners who came before you will help with your success as a restaurant owner.
