This is a guide from my past experience about owning a restaurant business. I would love to share it with anyone who is interested in starting up your own restaurant.
For most people working in a restaurant, is always a dream of having your own business.
Restaurant business needs a lot of time to manage. When you first started, you will lose your time with your family and even weekends, It is a long hours work.
After you are done for the day arriving home, you might have to start thinking about jobs for tomorrow. Etc (stocks to order, taxes to pay, employees time schedule and menu for tomorrow)
Are you willing to sacrifice? But if you do successfully, it will definitely very rewarding.
There are a few ways to own a restaurant business, you can buy an existing restaurant business, buy a franchise (pros and cons of franchising) and opening a new restaurant.
Most people will consider renovating and existing restaurant with a similar concept because it will cost less.
You will also need a business plan before you consider starting up a restaurant, etc https://www.canadabusiness.ca/eng/page/2853/
Types of cuisine, choosing a location, financing to start your restaurant, business insurance including liquor license, food suppliers and also types of equipment to use.
Managing a Restaurant Business is also challenging, how can you develop a menu suitable for all ages and makes money.
Can you hire and train your staff to generate profit for your business, bad hires create stress and disruption in the entire restaurant. Morale is lowered, productivity, and absenteeism increases.
As for ongoing expenses, the food cost will be the main cost: 25% to 40% of revenues, depending on your restaurant menu.
Payroll will be adding 20% to 25%, Rent should be around 10%, Marketing 5%, Repair and Maintenance 5% if you end up clocking 5% profit margins, you should be happy.
What are your Marketing strategies? There’s no doubt Social Media play a big part today it enhances customers experiences and also holds your business accountable for quality and consistency. This will no doubt expose your brand, promote your products and connect with customers
All the best for your Restaurant Business.
If you do have any other questions regarding about opening up a Restaurant or looking for a Restaurant For Sale. Feel free to contact me anytime.