Things to Consider When Planning a Restaurant Business

Starting a restaurant business isn't built on whether you can serve a tasty dish or two – there’s much more to it. So before you take the plunge and commit yourself to the foodservice industry, ensure you plan the following carefully first.

Funding Your Restaurant

Starting a restaurant business doesn't come cheap. There are several variables you need to think about, such as your own salary, equipment, venue hire, and staff. Whether you decide to use your personal savings or borrow, make sure your financial details are planned meticulously.

You can’t afford to make a mistake when it comes to your finances, otherwise you’ll find yourself in trouble. Keep some cash stowed away for a rainy day and have a plan in place should things go south. Never stretch your finances beyond breaking point if you can help it.

Type of Food

The type of food is an obvious item to consider, but the specifics are sometimes not thoroughly explored by new restaurant owners. Even if you’re an expert chef of a particular type of food (or if you can hire one), it’s not guaranteed that you’ll be successful. The market may not be accustomed to Peruvian food, for example, whereas Italian restaurants tend to perform relatively well across the board.

Do your research to find out whether people are likely to be interested in the type of food you’re going to offer. Ensure you can source the required ingredients locally if possible and at reasonable prices. If you need niche equipment that’s not common in Australia, be sure that you can import it without too many problems.

The Customers

There isn't a single restaurant that caters to every single demographic and this is a fact that has brought ruin to many would-be entrepreneurs. You just can’t capture the entirety of the market and the quicker you accept it, the higher the chances of success. Because if you try to please everyone, the inevitable conclusion is that no one ends up happy.

Pick a group and stick to it. If you’re going for Generation Y, for example, be aware that they often prefer fast food and quick service. They’re more likely to visit burger and pizza joints, rather than your average fancy eatery. Seniors, on the other hand, are loyal customers that will visit regularly but won’t spend much on each visit. They value decent prices coupled with friendly service without pretensions. Having good deals (such as pre-theatres menus) are highly appreciated.  

The Kitchen

Perhaps more so than any other section of your restaurant, the kitchen is the one you don’t want to get wrong. It’s the place where the core of your business will take place – without a proper kitchen, your restaurant isn’t going to get anywhere. Think about how staff members can move around comfortably and safely, leave room for future scaling, and ensure that chefs have all of the equipment necessary to conjure up those succulent dishes.

Be very careful that practicality and safety, rather than aesthetic values or nifty kitchen tools, drive the design of your kitchen. This handy PDF guide gives you a comprehensive summary of what you should be looking out for including all of the relevant government regulations you need to adhere to.

Equipment: Buy or Hire?

The cost for the kitchen equipment you’ll need to run a fully equipped restaurant can tally up quickly. Consider whether you’re better off renting first and buying later, especially if this is your first venture and you don’t have much experience.

There are numerous companies that offer a solution where you can rent the equipment before making the commitment to buy. It’s similar to a ‘try before you buy’ scheme. You get flexibility, short contracts, as well as a rental rebate should you decide to buy the equipment. We highly recommend looking at such a service, as buying expensive equipment for a new business is relatively risky.  

Engaging a Third Party

Even if you consider each of the aforementioned elements, it’s still a daunting prospect for someone that has no experience in the foodservice industry. That’s why it’s worth considering engaging a third party that has specific experience in planning restaurant businesses.

These agencies won’t just cover the business basics, but they’ll also be able to assist you in picking the right equipment, where you’ll get the most bang for your buck, how you can source equipment both locally and overseas, and putting you in touch with suppliers that can offer competitive rates.

Ultimately, the message you should take away is this: starting a restaurant business isn’t easy and requires meticulous planning from top to bottom. And doing it alone is a risky avenue to take, so ensure you get advice from industry experts whenever you can. It may cost you a little extra when you start off, but it will save you plenty of headaches in the future.