Many chef entrepreneurs think the menu is only thing worth their attention and maybe it is, but there are other equally as important factors.
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Competition is Fierce - There was a time when one of our very large and popular local restaurants had one to two hour waits all the time; friends would get a number and go home, get dressed for dinner and come back and still wait. That restaurant went out of business two years ago. They just tore down the site. So many new and specialty type restaurants have opened in the last decade, it's mind boggling
Over expanding - Everyone wants to be a franchise or chain; for some reason, all business principles seem to go out the window; they think having multiple stores is the answer; it is if koreatown spa you have solid investors and/or large amounts of capital to tie up; and above all a proven formula is also a must; Remember the cost of the buildout of the first location? Remember all the city/town requirements/taxes/fees?
Overhead - Expensive long term leases are usually the culprit and the restaurant does not have the business needed to support that cost; employees and scheduling: does not need to be an art; with the right tools it can be a science.
Controlling Costs - In the restaurant business buying fresh food is a must; how do you control the costs of the food and price meals accordingly; by costing out each ingredient; sometimes I have seen chef/owners not willing to do this; they see all the beautiful meats, etc. and buy it; vendors love these type of chef/owners except when it comes time to get paid!
Marketing - How to get the word out? Social Media including a Facebook business page is a must; as well as the traditional methods of ads, etc.; every restaurant must decide how they should be portrayed: fine dining, café, fast food, etc.
There are many tools on the market today for restaurants. They have robust back ends and cloud based iPad based systems to help control costs, scheduling of employees (save on payroll costs), rewards programs (capture customer information); you can now offer online ordering, do catering; you can even have self-service setups where customers punch in what they want. Because they are in the cloud as long as you have the internet, you can see what the restaurant is doing from around the world 24/7. Everything is integrated to your accounting system as well. Win! Win!
Restaurant business is very lucrative. Apart from the initial investments that you need to invest it can earn you life long revenues and luxurious life. For excellent and very high results from opening a restaurant business there is a lot of hard work and planning required. Everything needs to be perfectly implemented for gaining high profits. A restaurant business is a safe business with no or little risk. You get what you have invested in a short period of time for sure. Profits can be assured if regularly you are making amendments in accordance with the changing trends. If you have targeted the mass then you will surely enrich benefits. You have to produce good quality services to your customers in order to enjoy the success.
The success of your restaurant business mainly depends on two major things: