The restaurant business is considered prestigious and profitable. Many famous people open their restaurants hoping to attract customers with their name.
However, few of them succeed in the restaurant business. The restaurant becomes an expensive toy for them, which brings losses, but it is also a pity to leave it.
Restaurant is a complex business
Meanwhile, the restaurant business idea is not only good in itself, but is very profitable if taken seriously. A restaurant is a complex enterprise, the organization and economy of which must be dealt with professionally and constantly.
Before you open your restaurant, you need to decide on the level of future prices in it and draw for yourself a portrait of the average visitor. And for this you need to conduct market research and draw up a detailed business plan.
The main types of restaurant business
1) High-end restaurants are a very expensive and risky business.
The level of service and prices in it are inaccessible to the average person, such a restaurant is designed for rich people and high quality service. The volume of investments in the creation of such a restaurant is very large. The costs of maintaining the image of an elite institution are also high. But it is not at all a fact that the restaurant will be able to attract rich customers. Indeed, in such an environment, the fashion for establishments, which is not constant, plays a very important role.
Therefore, many elite restaurants go bankrupt in a fairly short time.
2) The other extreme is a cheap restaurant that provides services and meals at very affordable prices.
However, this option is also likely to quickly burn out, since income does not cover expenses.
After all, a restaurant should provide a higher service than a cafe, and this is expensive.
In this price category, it is more profitable to open a cafe that will just meet the expectations of customers.
3) Therefore, the most realistic niche for opening a restaurant is the average level of prices and service.
Such restaurants are often franchised and become part of a chain of restaurants.
This option removes a lot of problems from the entrepreneur, since the opening of the restaurant takes place according to a proven scenario, and the initial advertising is not as important as when opening your own independent restaurant.
Start-up costs in the restaurant business
1) The main part of the initial costs of implementing a restaurant business idea will be the cost of equipping the restaurant premises and obtaining licenses and permits from supervisory authorities.
2) In addition, you will need to purchase high-quality kitchen equipment, furniture, dishes, tablecloths and napkins.
As experience shows, the estimated amount of investment in the opening of a restaurant is from 300 to 700 thousand dollars.
Operating expenses will consist of the cost of maintaining premises and staff, paying rent and utilities, purchasing food, transportation and security costs.
How to evaluate the payback of this project?
The profitability of the restaurant business is highly dependent on the correspondence of the average check to the quality of the dishes and the level of service. If these parameters correspond to each other, then the attendance of the restaurant will quickly recoup the costs and reach profitability.
You can preliminarily assess the profitability of a future enterprise using the calculator located on our website. However, if you want to get into the restaurant business seriously, we recommend ordering the necessary calculations and a business plan on our website . This work will be performed by highly qualified specialists, taking into account specific conditions.