ATK
New Delhi [India], April 27: Starting a Restaurant can be an exciting idea, and it is a dream to many, but according to the reports, 95% of restaurants get shut down in the first 5 years, which simply means that only 5% survive after 5 years. So, in this post let’s discuss some most common mistakes food business owners make so that you can ensure that you are not doing the same.
1. Running a Restaurant is not a part-time job
So, the first mistake people make is that they think a restaurant/cafe is a passive income business, so if they set it up first, then there is no need to look into it again, it will function on its own and keep generating the profits.
Before starting, I want to make it very clear that running a restaurant or food business is just like running any other business. It is no different than any other business, in which you have to take care of store location, marketing, sales, costing, margins, customer experience, product quality and whatnot!
But, on the contrary, food businesses, just like any other business, need full attention, at least until you have created all the SOPs and autopilot mode for your business.
2. Restaurant Equipment
The equipment you use in your restaurant kitchen plays a crucial role as efficiency and quality primarily depend on the quality of equipment you use. So, make sure to make sure to buy quality restaurant equipment.
The most common restaurant equipment are: Grillers, Fryers, Ovens, Coffee machines
Restolane.com is a restaurant equipment and supplies store where you can buy high-quality equipment hand-picked by experts.
You can also contact Restolane and their experts will help you choose the best quality kitchen equipment for your Restaurant.
3. Expenses
As discussed in the previous point, “restaurant” is a “business”. So, in business, you would have to keep track of your expenses, they can easily go out of hand if not taken care of.
Common expenses in your restaurant can be
* Rent
* Salaries
* Electricity bills
* Equipment Maintenance
* Raw material supplies
* Other miscellaneous costs.
4. Menu Setup
One of the most common reasons for the restaurant to fail is poorly structured food menu pricing. First of all, you must be aware of costing of all of your dishes. Ideally price of the dish should be no less than 3 times the cost, keep in mind that you are not just selling the food, you are selling a full service which includes other costs as well. Pricing plays an important role in Indian markets.
5. Location
For any food business, location is one of the most important factors, make sure to choose the right location for your restaurant.
* Type of crowd in the location: Check who usually goes to the area where you want to open your restaurant. For example, if it’s mostly students and you plan a fancy place, it might not work.
* Rent: See if the rent of the shop fits your budget.
* Existing competition: Research, who is your current competition in that location.
* Shop Location: Choose a shop at the front of the market with a larger storefront, as it usually attracts more customers due to better visibility.
6. Packaging
Good packaging serves two purposes:
* Keeps food fresh, and prevents food from spilling at the time of delivery.
* Works as a marketing agent: Brands having good food packaging get more social media shares and also make customers feel amazing!
Investing in good packaging is always a good idea, If you have just started the restaurant and don’t have the budget, you can invest in quality generic packaging and get stickers printed.
7. Product
In the Restaurant business, every dish is your product. So treat it seriously, every dish in your restaurant must take care of these points to ensure overall success.
* You have to be clear about the food cost and recipe
* Outline serving or packaging for the dish.
* Keep tweaking the recipe to make it tastier and better without spending much more.
Conclusion
Running a restaurant is like any other business. You need to take care of certain things. Keep learning and applying them. Best of luck!
(ADVERTORIAL DISCLAIMER: The above press release has been provided by ATK. ANI will not be responsible in any way for the content of the same)
