A Complete Checklist For Starting A Restaurant
The COVID-19 pandemic has taken a toll on all businesses worldwide. So, a lot of people are looking to diversify their funds and invest in different businesses as compared to their own. The restaurant industry has always been a lucrative business option for many as it brings in cash sales. Also, as per analytical and research firms, the restaurant industry is expected to reach ~INR 5 lakh crores in the period of 2020-2024. However, starting up with a brand of your own requires a good amount of investment. With this article, we bring you a checklist that will help you evaluate the various aspects to be considered before starting a restaurant.
1. Format of Restaurant:
The first step is to decide the concept of the restaurant. Restaurants are broadly segregated into 3 categories: Quick service restaurants, Dine-in restaurants, and take away restaurants. The average price per customer (APC) gives you a justifiable idea to work upon when it comes to this decision. Next, you require a business plan that will make your vision more clear and direct your daily activities in such a manner.
2. Investment plan:
Procuring investors in such times is difficult but not impossible if you have a target to achieve. There are three different types of investments that you need to consider: Self Finance, loans, or venture capital / Angel investing. These give a variety for you to best suit your type of restaurant.
3. Costs Involved:
Costs are a major expense to cover before making any profit out of it. The price of your eatables should be set in a manner that all your costs are covered. There are a lot of costs that have to be considered before approaching any investor.
Location is a factor that determines your productivity. As this is a crucial factor while opening a restaurant with the format chosen by you earlier, the location should be considered factors like competition, rent, carpet area, direction, locality, and people staying around the area. For example, you decide on a bakery shop with the second-best option of investing, study the area you have chosen based on the primary survey, whether people staying in that locality eat these products or not, check for any competitor selling a similar product in the locality. The factors like – visibility and accessibility should be taken into consideration for supplier vendors and reachability of customers to find you and also when you open a restaurant you need a No Objection Certificate (NOC) from at least three of your neighbors.
5. POS Systems:
POS systems that make a difference in the regular working of your restaurant’s daily activities. Instead of facing issues that are already resolved by a POS operator, connect with the POS system provider with the most appropriate system. RePOS has been able to provide customized software to all its customers to date. POS has replaced a lot of manual work which used to make everyday tasks tiresome.
6. Menu Design:
The next step is to design a menu smartly so that your potential customers are tempted to buy the food item. The images of the food should be professionally photographed so that the customers are not fooled by what they expected and what they actually receive. Customers tend to order items that are cost-effective/cheap, so place your expensive food items just below these because it acts as a strategy to get an order for the expensive ones as well. Market your food items in a combination where your exclusive and best-selling items combine (in case they are not the same).
7. Marketing of Your Restaurant:
It can be done online or offline. However, due to the situation around, it is better to opt for online marketing as most people are more attentive to the ads shown to them on mobile phones than on the posters, banners, or hoardings on the road. Make a better reach by introducing offers on initial purchase, and also giving them loyalty points or opting for different social media campaigns that have a better reach for your target customers. This way you can build your initial customer base. You can use the POS software for the same.