BUSINESS PLAN OF OPENING A RESTAURANT

Opening a restaurant requires more than a passion for food

and the food industry. The process requires a detailed analysis of
the food industry, organized and well-defined strategies, and
financial backing. Developing a business plan for your restaurant
will force you to analyze every aspect of your business, from the
menu to the marketing. When completed, the business plan can
be used not only as a tool to capture investments, but a tool to
capture customers. From steakhouses to sub shops, more and
more restaurants are popping up in cities every day.

Since restaurants are such a common business venture,

people must enjoy running them. How do these benefits sound to
you? Be your own boss, have more flexibility, and sincerely enjoy
what you do. Not bad. However, all of those advantages come at
a price - building a restaurant from scratch isn't easy. It's a hard
and expensive process, and the reality is that many restaurants
fail in their first year of business. But rest assured, there are ways
to reduce the risk of becoming another statistic. Follow some of
these handy tips and you too can run a successful food
establishment.

MEANING OF BUSINESS
PLANNING
One of the most popular trends of this
developing economy and living standards is dining
out. More and more people prefer dining out on
weekends and even on regular working days. The
restaurant and food chain industry has grown up to
900,000 in past thirty years.
The overall revenue generated from this
industry is more than $600 billion and it gives
employment to more than 13 million
people making it the largest employer in this
world. The best thing about this industry is the
room available for growth. One can start his
restaurant and achieve success amidst all this
competition.

Work in a Restaurant
One of the best ways to reduce the risk of owning a failed restaurant is to
have some restaurant experience before you start. Many successful
restaurateurs have said that the best way to prepare for owning a
restaurant is by working in one, hopefully in an eatery similar to one you'd
like to open. You'll learn more than just how to serve food with a smile; you
can learn restaurant marketing, menu development, payroll, and other
significant components of the restaurant world. Working in the restaurant
industry and learning the basics is an important first step to becoming an
owner.

1. If you dont have a thick skin and complete abandonment of political

correctness, dont go near the kitchen. You will immediately learn there
that what you consider to be off-limits is just the baseline of someone
elses sense of humor.
2. Bad tippers are the worst kinds of people, and are often terrible in
many other ways than just being cheap.
3. Correction, the worst people are those who dont tip or tip very badly,
and accompany their financial insult with a snarky note left on the
receipt.
4. The pain of a bad seating chart is a real one, and not a single customer
will care or understand that you got slammed while someone else is
totally dead.
5. The difference between the people who have never worked in food
service, and the people who have, is always clearly visible. And a lot of
time it has to do with the basic degree of respect they give to the people
who are serving them.
6. Make back-of-houses life easy, they will make yours easy. Working is
always about scratching someones back so theyll scratch yours, and
youd better not break that chain.
7. The only people youre going to be able to hang out with and often
date are by default going to be other people in the industry. So you
better like the people you work with it, because no one else is going to be
coming out with you at 1 AM.
8. There is absolutely zero shame in eating the plate that gets sent back
barely-touched because someone either misunderstood what they were
ordering or is incredibly fussy about their perfectly-good food. People
who will judge you over shit like that are people who dont know the joys
of a pristine plate of onion rings coming back to you when you are
starving.

9. The most important friend you will make is the one who will cover for
you while you eat, crouched next to some appliance in the kitchen. True
friendship is about taking the fall so someone can eat.
10. There are a lot of people who are going to look down on you for
working a restaurant, and treat you with massive disrespect, and you just
have to get over it and remind yourself to never be like that in your own
life

Know Your Target Market

Who do you see eating at your restaurant? Are you targeting the
family crowd, teenagers or seniors? Knowing your target market
before you start planning will not only help you solidify your menu;
it will help determine your location, dcor and the overall
atmosphere of your restaurant. A family-style restaurant, which
caters to parents and their kids, may not appeal to seniors. On the
other hand, an upscale, quiet restaurant offering a two-hour dining
experience wouldn't be appealing to teenagers or families with
small children.

Regardless of your brand mission, identifying and gaining

the devotion of your target audience is the necessary
means to reaching your brand objectives.
You will find that knowing your target market inside and
out you'll have the information that you need to achieve
your brand marketing goals. You can do this by conducting
a market analysis. Depending on how much detail you

put in the market analysis you have the capabilities of

gathering enough data to learn what you need to know to
reach your target effectively. Knowing your target
audience you help you in solidify your message and
increase your confidence in the steps to take to connect
with that audience.
If you get one thing, get this - the power of your brand
relies on your ability to focus and craft a marketing
message that will convert prospects into customers. That
is why defining your target market will help to strengthen
your brand's overall effectiveness.
There are two steps in lesson four of the Developing Your
Brand's Strategy course. The first is to conduct an
informal market analysis of your target market which I
mentioned above and the second is to write a target
audience definition for your company. The instructions
below will walk you through the process of completing
both of these steps.

What is the age of your demographic? Is it a child,

teenager, adult. You don't want to market a product
to a child that is most suitable for an adult.

What is the gender of your audience? Is it male or

female? You can't very well sell female products to
males.

What is the income level of your potential

customer? Are you trying to market luxury items to
them? You need to determine what your customers

can and cannot afford, and that way you can better
market to that demographic.

What is the family situation? Are they married,

widowed, divorced, college graduate? Is your product
or service a luxury item or a need?

Select a Service Style and Food Concept

What type of restaurant do you see yourself owning? One of the first things
you must decide is what specific service style you are interested in. If you
are a morning person, you may be more apt to owning a diner specializing
in breakfast and brunch. On the other hand, if you consider yourself a night
owl you may prefer an after 4 p.m. dinner/bar crowd.
Typically, you service style will either be fast-food, which offers food types
that range from burgers, fries, hot dogs and sandwiches; midscale, which
has full course meals at value prices; or upscale, offering full service meals
with high-class ambiance and, in turn, higher prices. After narrowing your
establishment to one of these three options, you can narrow your style of
food choices. Is there a particular type of cuisine that you see yourself
serving? Do you prefer pizza or seafood? Sandwiches or Chinese?

Choosing your food concept goes hand-in-hand with your choice in service
style.
There are several different styles of serving food at a wedding. This blog
will describe some of the main ways to serve food, as well as explain some
ways that you might not have heard of to add a little variety to your
wedding. Sometimes changing the style of food service can add enough
originality to add a fun twist to a traditional wedding.

The most common serving styles are buffet and plated. Plated is often
viewed as the more expensive route; this is true of staffing costs, but you
do not spend as much on food because each guest receives a specific
portion size. Guests do not have the chance to overload their plates with
food that they often will not even be able to finish. If your food choices are
less expensive (not oysters, or other rare and expensive options), buffet
might be the option for you.

Buffet or self service - Large tables are arranged for guests to carry their
plates from one end to the other. Waiters on one side of the table serving
the food are optional. If there are no servers, guests can serve from both
sides of the table. This is a great option if the guest count is large and you
need to feed people as quickly as possible. Plates can either be at the
buffet table, or at the guests place setting at their table.

Plated or American Service Waiters bring pre-plated guest dinner plates

to each table. This style requires some kind of place card and map for the
kitchen staff. They need to know who requested the chicken or the
vegetarian option, and is often noted on the place card with a chicken
symbol, or a different design.

Stations Stations are another style of serving that is similar to buffet

style. There will often be different stations throughout the room with
different foods. If there are different ethnic foods that are being served, this
is a great way to give people a taste of each persons heritage. A Mexican

station (where the couple met), an Irish station (where the couple got
engaged), and an Italian station (the location of their honeymoon) are great
ways for the guests to get to know the couple more. Another option is
having a pasta station, a meat station, and a seafood station.

Trolley service When waiters bring around trolleys where the guests
choose options from the trolley. This is often done for dessert courses in
restaurants.

Family style When the waiters bring large platters or bowls of food to
each table to serve from one dish in the middle of the table.

French style When the food is prepared at the table side. This is often
done with salads when the Caesar salad is dressed, garnished, and
portioned in front of the guest.

Russian style When the food is cut or carved in the kitchen and is replated to look whole when presented to the guest. Presentation and portion
sizing is done in the kitchen.

Develop a Business Plan

Like any other type of company, a restaurant will need a concise business plan. This
plan should include but is not limited to: the overall concept and goal of your restaurant;
specific financial information and projections; a description of your target market; your
menu and pricing; equipment and employee details; an advertising and marketing plan;
and a potential exit strategy.

First, develop an outline of your business plan. Consider every

aspect of your business and how it will affect your business plan.
Remember, this business plan is a road map. It must guide you.
It must also communicate to investors what you're doing and why
they should invest with you.

The order in which your plan is presented should be something

like the following:

Mission Statement
Executive Summary
Product or Service Offerings
Target Market
Marketing Plan
Industry and Competitive Analysis
Pro-Forma Financials
Resumes of the Company Principals
Your Offering (what type of financing you're seeking)
Appendix (any other pertinent information)

Statement
The mission statement is a concise, one- to three-paragraph
description of your business objectives, or your business's
1. Mission

guiding principles. In this section, you should state your

unique selling point, or what separates your company from
all the others in the industry that are otherwise just like it.

How to find the best credit card for your lifestyle.

2. Executive Summary
This is a one- to two-page summary of your business.
Potential investors will read this to decide whether they want
to look at the rest of your plan.
3. Product or Service Offering
Create a section describing your product or service offerings
in detail, as well as how much you'll charge for what you're
selling.
4. Target Market
Present your primary and secondary target markets, along
with any research that demonstrates how your target
market will benefit from and consequently purchase what
you're offering.
5. Marketing Plan
Present your marketing plan, which should show in detail
how you'll reach your target market. This part of the plan
will include advertising and promotional strategies.
(ReadAdvertising, Crocodiles And Moats to learn more about
the importance of good advertising.)
6. Industry and Competitive Analysis
Include a complete and thorough industry and competitive
analysis that includes all stakeholders in your business.
Don't forget to include governmental and regulatory
agencies. (Read Competitive Advantage Counts to learn the

importance of being different from the pack.)

7. Financial Statements
These must be complete, accurate and thorough. Each
number on your spreadsheets must mean something. Don't
estimate payroll, for instance; determine what it will actually
be. Your income statement must reconcile to your cash flow
statement, which reconciles to your balance sheet.
8. Resumes of Company Principals
Include the bios and professional backgrounds of all
significant employees of your business. You will want to
emphasize how their backgrounds have prepared them to
take on the challenge of running your new startup. Also, if
an employee's business background is in a significantly
different industry, you might want to emphasize how this
can be an advantage instead of a detriment. (Read more
in Evaluating The Board Of Directors.)

9. Your Offering
Present what level of investment you're seeking and for
what purposes you will use the funds. If you're selling
business units, state the individual price per unit.
Once you've put together all of this key information, make
sure to present your plan professionally. It should be typed,
margin aligned and neatly bound. Use color graphics and
pictures where possible. Do not handwrite changes or
corrections.

Create a Menu
The menu can make or break a restaurant, and should be in accordance
with the overall concept of the restaurant. Revisit your business plan to
make sure the menu is attractive to your target market, is affordable within
your budget, and complements your restaurant's design concept. For
example, if your restaurant is family-friendly, you will need a kids menu. If
you are an upscale establishment, a lot of thought will have to go into your
wine list.

Step 1
Sketch a mock-up of the basic menu layout. You will probably want to limit
initial designs to just categories, section titles, and relevant graphics. Here are
big-picture issues for you to keep in mind:

Choose a color scheme that matches the style of the restaurant.

For a fancy restaurant, dark colors will convey a sense of seriousness and
professionalism. At a casual restaurant, warm, muted colors will look
appropriately inviting. At a restaurant with a young clientele or a zanier
theme, bright colors will usually make the most sense. Unless youre not
happy with the interior design or plan on changing it, making the menus
match (or at least complement) the restaurant itself is probably the safest
bet.

Order your menu logically. Your menu should reflect the order in
which people actually eat the dishes you offer. At an all-day establishment,

this would be breakfast, lunch, appetizers, dinner, and then dessert.

Traditionally, simple drinks (water, soda, tea) are listed last; specialty drinks
(wines, cocktails) are usually on a separate list or an insert.
Visually break your menu into sections. You should either break

up your categories of food using large, simple headings or, if you offer
many items, by putting each on its own page. If you offer a large variety of
foods, you may need main sections (Breakfast, Lunch,
Dinner) and subsections (Fish, Poultry, Vegetarian, Pasta, Salads). Other
subsection possibilities include:

Step

List the food items and prices. The easiest way to do this is by writing
columns (Food Item, Description, Price). Make sure its clear which item
belongs to which description or price, especially if the font is small and the
rows are hard to follow. A simple way to do this is to connect items with a
series of periods (). Keeping variety in mind is generally a good idea:

Make sure there are a few economy dishes that are below the
average price of the dishes as well as a few expensive specialty items.

Consider offering diet-specific dishes. Items specifically for

vegetarians, vegans, kids, or people on low-calorie or heart-healthy diets
will satisfy a greater variety of customers.

Consider offering specials during happy hour and for seniors, military

personnel, and other groups. This can mean offering a discount on certain
dishes at a certain time (preferably low-traffic times) or offering a smaller
portion of a dish at a low price during that time.
Look for variation in pricing for add-ons or special preparations. Find

out if substitutions are allowed, and how much they cost. You may want to
make note of common substitutions in the menu, like "Replace the baked
potato with any other side for an extra $1.50."

Step

Describe each dish. The food items themselves should have descriptive
titles. Ex: Burger doesnt sound like much, but Juicy Burger with Arugula
and Horseradish Aioli will get your readers attention. After that, include a
brief description of all the ingredients in the dish. Ex: Quarter-pound all-beef
patty with arugula, creamy aioli, grilled mushrooms, ripe tomatoes, and pepper
jack or Swiss cheese on a brioche bun. It's also wise to make note (either
with words or a symbol) if any of the following apply:

The dish is hotter/spicier than most of the other dishes on the menu.

The dish contains any ingredients to which some people are severely
allergic (e.g. peanuts).

The dish caters to a group with special dietary needs (vegan,

vegetarian, gluten-free, low-calorie [include an accurate calorie count], lowsodium, low-acid, etc.)

Step

4
Add photos with caution. Food photography is notoriously difficult. If you can
afford to hire an excellent professional food photographer, the
images may help make the food more appetizing. However, the appeal of food
is that it is three-dimensional, smells tantalizing, and is often warm to the
touch, meaning even the best photos will never do your menu justice. In
general, its best to leave each dishs appearance to your customers
imagination.

Work out the finer details in a second round of mock-ups. This time, focus
on font, margins, spacing, and overall composition:

Keep your fonts simple. Dont get carried away with funky fonts, which
can be fun but tend to look unprofessional. Dont use more than 3 fonts on
the menu or it will look busy.

Use larger, simple fonts for restaurants with a large elderly clientele.
People buy more if they can easily read the choices.

Err on the side of a shorter, simpler design. This is especially relevant

for high-end restaurants, where taste and simplicity are at a premium.

Menus with a very large selection often give each dish its own

number, and the numbers continue chronologically through sections. This

makes it easier for the customer to communicate with the staff (ex. "I want
number 4, please").
Try to visually balance each page. Draw a square around each area

of content, then look at their overall placement versus the remaining white
space. Do the pages look lopsided? Do certain sections look
underdeveloped, like you dont have much to offer in that category?

Step
6

Select the final layout. Make sure the restaurant owner, manager and chef
sign off on the design and content. Additionally, have someone who isnt in the
business give you their thoughts; what seems obvious to someone in the know
may be confusing for the layman.

Proofread and print the final design. Go through the entire menu with a
fine-tooth comb, as errors in the menu send a poor message about the quality
of the establishment. You could also hire a professional editor, just in case you
missed anything.

Choose a Location and Layout

The old saying of "location, location, location" is vital in the
restaurant world. It is important to find a location that has a
continuous stream of traffic, convenient parking, and is in
proximity to other businesses (especially if you're catering to the
lunch crowd). And don't forget to revisit your business plan to
make sure you are close to your target market. If you are opening
a restaurant/night club, it may not be the best idea to open it in
the vicinity of retirement homes. In addition, make sure your
monthly rent is in-line with your business plan's projected profit so
that you do not become building-poor.
Once you find your location, the layout and design of the interior
should be taken into account. You should already have a concept
of your restaurant in your business plan; bring this concept into

the design of the dining room. When designing your kitchen area,
think about what's on your menu in order to determine what is
needed for the food preparation area.

tips for Choosing Your Business Location

Choosing a business location is perhaps the most important decision a small
business owner or startup will make, so it requires precise planning and research. It
involves looking at demographics, assessing your supply chain, scoping the
competition, staying on budget, understanding state laws and taxes, and much
more.
Here are some tips to help you choose the right business location.
Determine Your Needs
Most businesses choose a location that provides exposure to customers.
Additionally, there are less obvious factors and needs to consider, for example:
Brand Image Is the location consistent with the image you want to
maintain?
Competition Are the businesses around you complementary or competing?
Local Labor Market Does the area have potential employees? What will
their commute be like?
Plan for Future Growth If you anticipate further growth, look for a building
that has extra space should you need it.
Proximity to Suppliers They need to be able to find you easily as well.
Safety Consider the crime rate. Will employees feel safe alone in the
building or walking to their vehicles?

 Zoning Regulations These determine whether you can conduct your type
of business in certain properties or locations. You can find out how property is
zoned by contacting your local planning agency.
Evaluate Your Finances
Besides determining what you can afford, you will need to be aware of other financial
considerations:
Hidden Costs Very few spaces are business ready. Include costs like
renovation, decorating, IT system upgrades, and so on.
Taxes What are the income and sales tax rates for your state? What about
property taxes? Could you pay less in taxes by locating your business across
a nearby state line?
Minimum Wage While the federal minimum wage is $7.25 per hour, many
states have a higher minimum. View the Department of Labors list
of minimum wage rates by state.
Government Economic Incentives Your business location can determine
whether you qualify for government economic business programs, such as
state-specific small business loans and other financial incentives.
Is the Area Business Friendly?
Understanding laws and regulations imposed on businesses in a particular location
is essential. As you look to grow your business, it can be advantageous to work with
a small business specialist or counselor. Check what programs and support your
state government and local community offer to small businesses. Many states offer
online tools to help small business owners start up and succeed. Local community
resources such asSBA Offices, Small Business Development Centers, Womens
Business Centers, and other government-funded programs specifically support small
businesses.
The Bottom Line

Do your research. Talk to other business owners and potential co-tenants. Consult
the small business community and utilize available resources, such as free
government-provided demographic data, to help in your efforts.

Get Funding (Investment)

Your business plan will help you recognize how much money you will need
to start your restaurant. If you are unsure about how much money you will
need upfront, talking to other restaurant owners can help you project your
expected start-up costs. There are numerous ways restaurateurs raise
capital to start their business, including taking advantage of government
programs that cater to upstart small business owners; liquidating assets or
using them as collateral for a loan; or encouraging a family or friend to
become a partner.

Steps

To an aspiring restaurateur, the challenges of funding a business can

seem overwhelming. Young restaurants have a notoriously high
failure rate, and no investor wants to put money against the odds.
But for every thriving restaurant out there, there was a moment
when the forces behind it struggled for funding.

Whether you're an accomplished chef, a seasoned manager or part of

a third-generation family restaurant, it's important to remember one
thing: a restaurant is first and foremost a business. Dedication,
culinary skill and passion may catch an investor's eye, but that
startup check won't be written until you've demonstrated that you
can run a viable business.

To find out the secrets to securing funding, Serious Eats talked with
a couple of our favorite restaurant owners to get their advice.

Get Educated
Education, formal or otherwise, is a strong first step. Chef Ken
Oringer, who's opened six acclaimed Boston restaurants in addition
to his flagship Clio, earned a degree in business management before
he set foot in the kitchen as a chef. "You open a restaurant with your

head," he says, "not your heart. It doesn't matter if you're the best
chef in the world if you don't have a viable business on your hands."

Chef Donald Link of New Orleans earned "most of a finance

degree" before opening Herbsaint and Cochon. Even without a full
formal education, Oringer recommends at the very least taking a few
business courses at a local college. "If you don't have a basic sense
of law and contracts and accounting," he said, "you'll be paying
someone $200 an hour to run those areas for you. Better to learn it
yourself."

Do Your Homework
It's critical to crunch the numbers and do the legwork on your
project before looking for money. "You've got to take into account
rent, labor, food, equipment and all of that as a percentage of total
sales," said Chef Link. "Restaurant margins are extremely small. If
you don't apply a little common sense, looking at projected sales,
profit, and costs, you're in trouble."

Spend the time to accurately gage the funds you need. That doesn't
just mean a few back-of-the-napkin scribbles about average checks
and covers. Until you've thought about how many hamburgers you
need to sell at lunch to break even, whether or not you'll close over
holidays, how many rolls you'll pile in a bread basket, and how

many napkins each customer will use, you haven't adequately

thought it through.

Says Oringer: "You need a menu breakdown, a pro forma, earning

forecasts, interest calcuations. If you're looking at a $2 million
restaurant and you're dealing with 15 percent interest, that adds an
enormous amount you'll have to pay back. You need to think all
these things through before you get in a room with investors."
Demonstrating profitability with this sort of rigor will give investors
confidence that they want to take a risk on youand give you the
confidence to present yourself well.

Think Long-Term and Prepare For the Worst

While in the early stages of designing your restaurant, you may find
it hard to think past the first year, but it's critical to think further
down the road.

"Sign the longest lease you can," says Link. "The last thing you
want is for your restaurant to take off, have to resign the lease, and
find that the landlord has tripled the rent." Oringer agrees on the
importance of long-term planning, particularly with regard to the
restaurant concept. "You have to make sure your idea has legs," he
says. "You don't want to leap on the latest trend. You've got to
considerwill the concept still be able to make money ten years

from now?" Thinking ahead is essential for a fully formed business

strategy.

Even before you get to that point, a good business plan should factor
in the worst case scenario. Do you have enough funding to ensure
that the restaurant can stay open even without a single customer
walking through the front door for the first three months? The first
six months?

Spread the Risk

Unless you've got a tidy chunk of change tucked away, funding a
restaurant is the quickest way short of an Atlantic City bender to
send yourself spiraling into debt. Even the considerable upfront
costs you'll project and account for are likely to balloon out of
control faster than you anticipate. So the more widely you spread
the risk, the less likely you are to bury yourself in debt you can't get
out of.

"When I opened Herbsaint," said Link of his highly regarded New

Orleans restaurant, "there were four of usmyself, my father-inlaw, and two others." Each partner made a contribution, and
together, they took out a loan to finance the restaurant. "Over time,
my father-in-law and I bought the others out, but in the beginning, it
just made sense to go in on it together."

Choose Your Partners Wisely

That said, not every partner is a good partner. "It's like a marriage,"
said Link. "If you're going to put everything in your life on the line
for a restaurant, you'd better trust the people in it with you."

Link has first-hand experience of what bad partnerships can do. He

made the mistake of joining as a third partner in a Northern
California restaurant, where he was eventually pressured to invest
five times more money than was agreed upon. Link walked out. "I
learned one important thing at that restaurant: Choose your partners
wisely," he told us. "Know how everyone's going to contribute.
Make sure that you share the same goals and visions. Make sure
everything's cut and dry."

Outside Investment is Good But Autonomy is Often the Goal

Of course outside investment, when you can secure it, can be critical
to getting a restaurant off the ground. But keep in mind that when
you're the one devoting your life to launching the restaurant, you'll
ultimately want to retain control, and eventually, total autonomy.
"At this point," says Oringer of opening his later restaurants, "we
pay back our investors within a year to fifteen months. It means that,
early in the life of the restaurant, we're making all the money
ourselves." "When we opened Cochon," Link said of his second
New Orleans restaurant, "we didn't want outside investment. It was
worth the initial risk to keep the restaurant all in our hands.

"At this point, we've bought the building, too. When you spend 10
years pouring your heart and soul and entire life into a restaurant,
you want it to be yours at the end."

Establish A Good Track Record

"It's worth it to bite the bullet and not make much money at first,"
says Oringer, "in order to pay back investors as quickly as possible.
Since we've done that in the past, investors now trust that we'll get
their money back to them."

He adds, "given the state of the economy, our investors now see us
as a safer alternative to the stock market." Now that's the sort of
confidence you want to instill.

Be Familiar With Safety Regulations

Restaurants are regulated and subject to inspection, and failing to be up to

speed with these regulations could be detrimental to your company. Most
regulatory agencies will work with new restaurateurs to help them become
familiar with what they must do to meet the necessary legal requirements.

Food safety regulations apply to each stage of food and beverage

production, from processing and manufacture to distribution.
If you are considering starting a business in the food and beverage
industry, make sure you are aware of the food safety regulations. You
need to understand how your business can meet your obligations and
comply with these regulations, or you may face fines or prosecutions.

Food safety regulations

Food safety standards outlined by Food Standards Australia New
Zealand (FSANZ) apply to every business involved in the handling of

food for sale, or the sale of food, in Australia. The only exception is
businesses involved solely in primary production that do not process
their products or sell them directly to the public.
Queensland Health has overall responsibility for food safety in
Queensland, including food safety for restaurants and food retailers,
and issues with food labelling and food tampering issues.
Safe Food Production Queensland manages the operational aspects
of food safety through industry-based food safety schemes for meat,
dairy products, seafood and eggs.
As a food and beverage business owner, you must be familiar with:

Queensland food safety legislation, including the Food Act 2006,

the Food Regulation 2006, the Food Production (Safety) Act
2000 and the Food Production (Safety) Regulation 2002.

food safety regulations from your local government, including

training requirements and ratings systems

liquor licensing, which applies to businesses selling or supplying

liquor

Australian wine laws, which apply to wine producers and

distributers.
You can get more information on food safety in Queensland from:

Department of Agriculture - provides import and export

inspection and certification to help Australia keep its highly
favourable animal, plant and human health status, and wide access
to overseas export markets

JAS-ANZ - provides accreditation and certification for food safety

systems in Australia and New Zealand.

Food safety compliance

Producing safe food is essential to your business's success, as your

customers will expect that your food products are safe. You must be
able to verify the safety and quality of your products to export markets
and other businesses that you supply your products to, such as
manufacturers, retailers and fast food franchises.
To make sure you are familiar with food safety regulations:

read Fact sheet 5 - general requirements for all Queensland food

businesses
complete Know your food business - a self-assessment guide to
the Food Safety Standards (PDF, 1.6MB)
find out about food safety compliance by reading Fact sheet 26 complying with a food safety program
read about becoming a food safety supervisor
find out about food handling skills and knowledge
read Food Safety Programs - a guide to Standard 3.2.1

Hire Employees
One of the biggest challenges restaurants face is a lack of qualified labor.
In order to get and retain qualified employees, make sure your employment
ads specifically state what you are looking for in an employee, and clearly
outline the job's duties and responsibilities. In addition, find out what other
restaurants are paying their employees so that you can be competitive in
the job market, without spending too much on payroll.

Restaurant Staffing
For the most part, the restaurant business is hierarchical. Like the army,
everyone has a title and a role to play. Busboys and dishwashers are at
the bottom, while managers and Executive Chefs are at the top.
The staffing structure will depend on the concept of your restaurant. A
coffee shop will not have an Executive Chef nor a Sommelier (wine
manager.)
Be forewarned -- staffing your restaurant and keeping it staffed will be
one of your most difficult and time consuming tasks. Unless you have a
large family and they all intend to work at the restaurant, you'll have to
be hiring part-time and full-time help. Turnover is notorius in the
restaurant industry.
These factors make it hard to attract and retain top people
1. Pay is relatively low in the restaurant business due to the low
margins of the business.
2. Restaurant work, especially entry positions in the kitchen and in the
front of the house are usually filled with people in their late teens
and 20's who usually leave for better positions or to continue their
studies.
3. Other restaurants will try to hire away good people.
4. Areas with low unemployment and few students find it harder to fill
restaurant positions.
5. People who will work for the low wages you will most likely offer for
some of the most menial positions (bussers, dishwashers, etc.) may
have little education. Some have criminal records. Others have drug
and alcohol problems. So, keep your eyes and ears open.

Benefits & Incentives Key Tools for Attracting & Retaining Good
People
There's a lot of turnover in the restaurant business, so to minimize it, offer
employees benefits and incentives that will make them feel appreciated
and much more inclined to uphold the highest standards at all times.
Give out coupons for free movies to employees who never miss their
shifts. Remember staff birthdays and serve a cake before the restaurant
opens. Even the smallest positive gesture will go a long way. It says that
you care.
Incentives are a fun way to drum up healthy competition between
employees and to get sales up. Offer a free meal to the person with the
highest weekly sales. At one restaurant where each week, a different wine
would be highlighted, the employee who sold the most bottles of that
wine would earn a gift certificate to a favorite store.
Empowering Employees
Employees who are encouraged to make decisions by themselves when
on the job and who have the authority to solve problems and keep
customers happy are generally more satisfied with their job than
employees who must always seek out a manager. Managers and owners
who empower their employees have lower turnover and higher customer
satisfaction. So, when interviewing and hiring staff, look for people who
like to think on their feet, are decisive and take initiative. You'll end up
with a happier, more efficient staff.

Staffing the Front of the House

Owners who are not on site and try to manage from afar, especially a new
restaurant, often run into trouble sooner rather than later. Like a spouse
or child, restaurants require a lot of personal attention, and there is no
substitute for that.

Management
If the owners are on site, they will usually split the shifts. One will open
the restaurant and the other will close, for example. If the owners need
additional help, they will hire one or more managers. There may be a
General Manager for the restaurant who is responsible for all restaurant
operations and who works closely with the Executive Chef. There may
also be an Assistant Manager or two depending on the size of the
restaurant and the number of hours it is open.
Wait staff
If the restaurant has table service, you will need to have waiters and
waitresses or servers. If the concept is more formal, you may have
servers and runners.
Runners
Runners work under the servers, bringing customers the food they
ordered directly from the kitchen.
Bussers
Bussers are the folks who clear tables and re-set them. They bring the
dirty dishes to the kitchen to be washed.
Cashiers
Whether or not you'll have dedicated cashiers manning cash registers will
depend on the type of concept you choose. White tablecloth restaurants
and many table service eateries do not have cash registers. Rather, they
have computer terminals with cash drawers that process credit card
transactions located at service areas in the dining room.
Kitchen Staff
Executive Chef
The Executive Chef is in charge of a kitchen, responsible for recipe and
menu creation, staff training, and overseeing all cooking. The chef also
manages the staff of cooks, bakers, butchers, and everyone else

involved in the preparation of food. The chef writes the menu,

determines food cost and is in charge of purchasingfor the restaurant.
This person must be a confident leader, with the proven mastery skill and
understanding of all stations in the kitchen. The chef must know how to
manage the bottom line, as well as have top cooking skills.
Sous Chef
A Sous Chef (pronounced "sue") is literally, in French translation, the
under chef. This chef is just below the Executive Chef in rank and is in
charge of food production. He/she spends more time cooking than the
executive chef and overseeing the daily happenings in the kitchen. The
line cooks usually report to the sous chef. Some larger restaurants have
more than one sous chef, each in charge of his/her own area.
Line Cooks
A line cook works on the hot line of the kitchen (where the food is
cooked). He/she is below the sous chef in rank. Often, a line cook will be
assigned to a station such as saut or fryer or grill. Some cooks rotate
stations each shift, while some remain at the same station until they have
mastered that skill and are interested in learning another. Line cooks
often train working at the cold station, or garde manger, where they
prepare and plate cold appetizers, salads and desserts. A very demanding
position, the line cook works incredibly hard and is exposed to heat,
stress and sharp knives during much of their shift. This person must be
very fast and accurate and be able to keep focused.
Prep Cooks
A prep cook spends their time at work prepping for all of the dishes that
will be served during meal service, whether it is breakfast, lunch or
dinner. Prepping includes washing, slicing, trimming and weighing. This
person needs to be organized and quick, as they support the rest of the
cooks. Line cooks may do all their own prep in smaller restaurants.
Pastry Chef
The pastry chef specializes in pastry and baking and is in charge of all

pastry production in the restaurant. Smaller restaurants may not have a

pastry chef, and may just buy desserts from an outside bakery.
Dishwashers
A dishwasher washes dishes and pots and empties the trash. This is one
of the most demanding jobs in the kitchen and the least glamorous. Many
chefs would attest to the fact that the dishwasher is the most important
employee in a restaurant, since the place will come to a standstill if there
are no clean plates or pots. A reliable dishwasher will work fast and hard
and be able to keep up with the piles of dirty dishes and keep the trash
cans emptied. This person needs to be reliable and strong!

Advertise and Market

As with any business, "build it and they will come" won't have customers
breaking down your door. Every business needs a comprehensive
marketing plan, and restaurants are no exception. After determining your
marketing budget, price out billboard advertising, ads in coupon clippers,
and television and radio advertising. Get noticed online by posting your
restaurant on sites such as www.fooddigger.com. Ask your customers how
they found out about you, so that you can record where your advertising
and marketing dollars are best spent. Grass roots advertising, such as
setting up tasting booths at local events or having an event at the

restaurant benefiting a local charity, can be an inexpensive way to achieve

positive word-of-mouth.

Restaurant advertising comes in many forms. Radio spots newspaper ads,

TV commercials; even coupons are all ways to advertise a new restaurant.
You can hire a PR agency to help you get your message out or you can do
it yourself. Advertising is not a one-size-fits-all deal. Advertising plans vary
from year to year, season to season. I you have a busy summer season
and less business in the winter, you will need two decisively different
advertising plans.
Difficulty: Average
Time Required: On Going
Here's How:
1. Know your audience. Who does your restaurant appeal to?
Families? Career professionals? Those looking for an easy, quick
meal or a leisurely relaxed dinner. You should already know who your
target audience is as outlined in your restaurant business plan.
2. Know where to advertise. If you hope to lure in families on
vacation, advertising in your local chamber of commerce guide, or
other regional travel guides is a good investment.
3. Create a strategy to reach potential restaurant customers.
Your strategy will depend on your budget. TV commercials are more
expensive than radio ads, which are more expensive than newspaper
ads. Think about your clientele and where they are most likely to see
your advertisements. If you operate a sports bar and grill, then
sponsoring a local softball team or athletic tournament makes sense.

If you want to bring in families, putting coupons for free kids meal in
the Sunday paper would be a good move.
4. Clearly state your message. What sets you apart from your
competition? Do you have aspecial menu for kids or a sports night
buffet? Do you offer the lowest priced burger town? You need to
reach your target audience and leave them with a message they will
remember. Busy moms are not likely to care if you have big screen
TVs with four different ball games going at once. But they are going
to perk up at the sound of a kids-eat-free on Tuesday advertisement.
Conversely, single men looking for a night out are not going to flock
to an establishment that offers free coloring books and crayons with
kids meals.

Advertising on a Budget
Traditional methods of advertising, such as TV, radio commercials and
newspaper ads can be very expensive and may not reach your target
audience. No matter if you are getting ready to open a new restaurant or
if you are looking for a way to promote your existing restaurant, there
are several ways to advertise on a budget, including taking advantage of
social media sites like Facebook and Twitter.
Advertising all Year Long
Your restaurant advertising and marketing tactics should change with the
seasons. Here is a complete guide to restaurant advertising all year long,
from the busy holidays like Valentines and Mother's Day to the slow
seasons in between. Find plenty of ideas to keep business coming in all
year round, including wine tastings, drink specials, and catering. You will
also find advice for keeping to go menus updated and when to begin
advertising for different seasons.

Restaurant Promotions Restaurant promotions are great because they can

run daily or weekly, all year long. They offer the perfect opportunity to
show customer appreciation and bring in some extra business at the
same time. Restaurant promotions can range for a nightly happy hour to
an annual customer appreciation day, with drink and dinner specials.
Promotions can be traditional, such as two-for-one dinner specials or out
of the ordinary, such as a name-the-microbrew beer contest. Use social
networking, such as Facebook and Twitter as a free way to tell customers
about your restaurant promotions.

More Information
Owning and running a restaurant is not for everyone; there is a lot of work
involved. However, there are many experts that can help you be a
successful restaurateur. Trade associations are an excellent source
because they can give you specific information about your particular market
niche. Visit the National Restaurant Association's Web site
at www.restaurant.org for more information. And, as with any new business
venture, it is important to discuss business options with an attorney.

TARGETS FOR BUSINESS

Your marketing strategy should attract the customers that you want in your restaurant.
As opposed to mass marketing, which aims its advertising and promotions to a general
majority of consumers, target marketing focuses on attracting a specific type of
customer.

Market Segmentation
You probably already know what kinds of customers you want in your restaurant, but it
is important to tailor your promotions to these specific consumer groups.
Different market segments or groups of customers with similar characteristics and
needs will respond to different types of marketing strategies, so you should make sure
to gear your promotional techniques toward the segments you want.
Usually, you will need to target customers based on their income. This allows
businesses to adjust the pricing of menu items according to their customers disposable
income levels. However, you may also choose to develop promotional strategies that
target one or more the following segments:

Teens, students and young adults .

Families and children .
Seniors .
Empty nesters
Tourists
Vegetarians
Eco-conscious people
Business people
Sports fans
Gay community
After-bar crowd
Happy hour crowd
Lunch break crowd
Music lovers
You can choose the best promotional techniques for your restaurant by honing your
marketing strategy to attract specific groups of customers like the ones listed above.

Attracting the Wrong Customers

Even if your business is already in operation, you need to keep assessing your
customer base and ask yourself if your marketing is really pulling in the customers you
want to target. If not, your marketing techniques are failing. Your strategy could be
problematic for one of the following reasons:

Location is off.
Perhaps you are not in the right location to attract the
kind of customers you want. Always remain up-to-date

with the demographics. Keep in mind that

demographics, attitudes and trends in your area can
change, and your restaurant needs to change with
them or move to another place. Learn more about
restaurant demographics

Concept misses the mark.

It is possible that your concept is failing to attract the
customers you want. For example, an ice cream shop
that is run near a university in hopes of attracting the
student population may overlook the recent frozen
yogurt craze that is sweeping through campus. It is
not necessarily too late to make some changes. This
problem could be fixed by adjusting the concept to
include frozen yogurt products, and then marketing
the new products to the students with coupons or
other promotions.

Attracting the wrong demographic.

It is possible that you are accidentally attracting the
wrong customers. For example, Chuck E. Cheese
targets children and families, but in recent years has
seen a lot of teenage customers at the restaurants
arcades. This has caused numerous problems,

including several brawls that have broken out, driving

away the very families that the restaurant hopes to
attract. To combat this problem, several Chuck E.
Cheeses have chosen to implement new policies, like
refusing service to anyone that is under the age of 18
without a parent or guardian present.1
It is also possible that you are using the wrong promotional techniques. Always make
sure that you are using the right promotions for your target market.

Choosing Complementary Segments

If your business is attracting many of the customers you want but is still struggling, you
could try targeting a secondary segment of the population. You could focus on one
segment during the lunch hour and another during dinner. Or you could try to attract
multiple types of customers at once, since many segments go hand-in-hand and would
complement each other well as customers.

Avoid customers that clash.

Some segments may not go well together. For
example, if you run a formal restaurant that is known
for its elegance, you may be attracting a lot of empty
nesters. It is probably not wise to begin marketing
yourself to families and children, since the associated
noise and atmosphere could drive away your existing
business. Any time you choose to target a new
segment with your marketing, be sure to consider the
consequences on your existing customer base.

If you have the right location and concept, and you

choose a good target market and the best
promotional techniques for that segment, your
restaurant will be far more likely to succeed. When
accompanied with proper restaurant management
and operation, a good target marketing strategy will
make a considerable difference in your profits.

BIBLOGRAPHY

www.wikihow.com
www.wikipedia.com
www.foodservicewarehouse.com
www.legalzoom.com
restaurants.about.com
www.entrepreneur.com
www.tripadvisor.co.uk
www.restaurantresearch.info/
www.restaurantindia.in