Starting a successful restaurant is a goal for many aspiring chefs. You may have grown up cooking with your siblings, parents, or grandparents, refining those family recipes. Experimenting, pairing, and taste-testing might be second nature to you. Sharing your food with your community can be a wonderful experience for both you and the people you serve, but to help it run as smoothly as possible, you need to have practices in place to protect your restaurant.
While there are many ins and outs to the restaurant business, anyone can run a successful one with the proper habits in place.
Come Up with an Individual Concept.
Your restaurant needs to set itself apart by offering a specific experience to customers. Your job is to figure out what that experience will be.
Answer the following questions to clarify your restaurant’s identity:
- What kind of food do you want to cook?
- What “vibe” are you going for?
- What do you want people to remember about your restaurant?
Set yourself up for success by creating a clear identity for your business.
Identify Your Market & Competition.
Once you have a specific concept for your restaurant, figure out what you’re up against. You should never assume that just because there is a restaurant that exists, people will come to it. This is simply not true.
You need to figure out what your restaurant uniquely offers. Think about what kind of people you want to sell to and how your business should appeal to them. You may need to consider age, culture, religious leanings, and other influences that change public relationship with various foods and create marketing practices that appeal to those leanings.
One thing that may be helpful in evaluating your area’s food habits is observing other restaurants near you. Determine how similar restaurants operate and how you can set yourself apart. This can include any part of the restaurant experience, from service to pricing. The key is to pinpoint what will work for your idea and your target audience.
Come Up with a Tasty Menu.
Once you know what type of food you want to make, create a menu that will appeal to your customers.
Evaluate:
- What dishes you will make
- How the food connects with your concept or “vibe”
- How affordable your menu is for your clientele vs. business costs
Another essential consideration to make is whether you will have a kids menu at your restaurant. While it is recommended that you invest in your future customers by offering healthy options for children, this depends on the caliber of your restaurant. If your restaurant’s concept is not designed to appeal to children, it may be best to focus on culinary excellence in your chosen category of food instead.
Hire Quality Staff.
Your staff represent a significant part of the experience of your restaurant. Servers are essentially the face of the business, and cooks are the backbone. You need to be able to rely on your employees to carry the image of your business forward with excellent customer service and consistently great food.
It is especially important to keep this in mind if you want to build a sit-down restaurant. Customer service is king – it is one huge reason why people come in to sit-down restaurants. Make sure your team is on the same page in terms of how they will represent the face of the business.
Track Your Expenses & Profits.
For many business owners, money is the least interesting and most complicated part of running their business. However, it is impossible to run a business without money coming in, so keep detailed bookkeeping records. You can’t spend more than you have coming in without consequences; in order to keep your restaurant afloat, your people employed, and your profits growing, prioritize a budget and keep track of your money.
Get Insurance Coverage.
When the unexpected hits, having a business insurance policy can save your business hundreds or even thousands of dollars. Here are a few coverages that are commonly listed on restaurant owners’ policies:
- Building
- Business personal property, including property of your customers
- Tenants’ improvements and betterments
- Worker’s compensation
- Business interruption
- General liability
- Employer liability
- Liquor liability
- Fine art, including property of others in your care
In particular, restaurant endorsements often include:
- Spoilage
- Food contamination
- Advertising
- Reward payment
- Brands and labels
- Ordinance or law for equipment
- Lock replacement
- Limited merchandise withdrawal expense
Real-Life Example: Luca’s Place
Here is an example of how the right insurance coverage can save your business in a time of need:
Luca owns a small Italian restaurant, Luca’s Place. His restaurant is warm and welcoming, and with the help of his family and friends, he has curated a menu with quality items that set his restaurant apart from others in his area. He has hired trustworthy servers, and his cooks are well-trained and consistent with their cooking. Luca keeps careful records of his business expenses, and he meets with his insurance agent regularly to update the coverage on his policy.
Luca locks up his restaurant after a busy night, and he turns on the building security system. Unfortunately, his business is broken into anyway; all the cash in the register is stolen, along with technology Luca’s staff uses for inputting and tracking orders. However, Luca has his business insured against theft. Once he files a claim with his insurance, he is compensated for the loss.
As you can see from this example, you can be doing everything right to project success for your business, but disasters happen to the best of us. Protect yourself against the unexpected by following these practices and getting insurance for your restaurant.
Frequently Asked Questions
Do I have to serve different food from everyone else in my area? No! You can set yourself apart from the competition with more than just your food. The atmosphere, the service, and the quality of your menu can create an individual face for your restaurant.
Should I use social media to market my restaurant? It can’t hurt. Even if your business is focused on bringing people to sit down in the restaurant, the modern restaurant typically markets itself with modern media, which includes Instagram, Facebook, TikTok, etc. Evaluate what your business can achievably do and work from there.
Do I need to set up an online ordering service? It depends. If your market values speedy service, then it could be a good investment. If your business prides itself on its excellent in-person customer service, an online ordering service may not be beneficial to your goals.
How do I decide what insurance coverages I need? Your agent can help you out! If you review your business practices with your agent, they can add the appropriate coverages for what your restaurant does.
Final Takeaway
Starting and running a successful restaurant does not have to be complicated. Make a plan, hire the right people, and protect your financial standing. If you follow these steps, you will be on the right track to meet your goals.
Talk to a local agent today to review your professional needs.
Disclaimer: The information included here is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts.
