By Bizna Brand Analyst
Owning a restaurant may seem like a glamorous business for aspiring enterpreneurs. Successful restaurateurs can also achieve a measure of fame and fortune that catapults the owner from a life of normalcy to one of extreme riches. However, success in the restaurant business does not come easily, and failure is not uncommon. Before opening your own restaurant, you should gain a basic understanding of the various pros and cons. This is important so that you don’t end up wasting so much of your time doing something that wont improve your life.
Benefits of owning a restaurant
More and morr busy people choose to eat out as opposed to taking the time to prepare meals at home. This means that the right restaurant at the right location can be a lucrative enterprise. Successful restaurateurs often become popular figures in the local community. So it’s always imortant to set up your restaurant at a busy location where people are in need of food. A market area is always ideal and so are areas next to institutions.
Employee Considerations
A restaurants is a “people” business, so if you enjoy meeting with the public you may thrive in this type of business. However, this also means that your staff, especially your servers, must also possess strong people skills. A challenge you are likely to face is finding and retaining the right type of person. If you hire a young staff, such as interns or college students, your turnover may be especially high as workers leave to start more lucrative careers. So if you don’t want a scenario where employees keep leaving, hire people above the age of 25.
The type of restaurant
The type of restaurant you choose to operate can also include pros and cons. For example, if you purchase a franchise, you will have the benefit of choosing a proven business model but will have little say in operating procedures. If you open a restaurant from scratch, you will be able to run things your own way, but you may have difficulty establishing your brand and building a core of regular customers.
Complexity of operations
Restaurants are not easy businesses to operate. You will need to know the proper equipment to purchase and become versed in food-handling procedures and local health codes. You may also have to conduct extensive market research before taking the plunge to see if your particular specialty will be accepted by the people in your area.
Warning
It is a confirmd fact that many restaurants fail during the first year of operation, in large part due to poor planning. Taking the time to prepare a carefully researched business plan will give you a better chance of success and is essential if you wish to obtain bank financing to get started. Good luck.
