Hospitality

How To Open A Franchise Restaurant | Independent Restaurant

Restaurants Never Go Out Of Style

Food, like music, is a universal language spoken across all cultures. We all appreciate good food but might be too busy to want to prepare it at home. Like matters of the heart, matters of taste should not be handled by amateurs. Starting a new thriving restaurant can be a lifelong dream and could also add some money to your pocketbook. Passion alone will not make this happen; you need good advice, lots of training, and the will to make it happen. Let’s start with the numbers.

Three Ladies Dine At Their Favorite Restaurant

Checklist For Starting A Restaurant

Statistics show that over 50% of Americans eat out or order from restaurants daily. A lucrative venture, right? Then why does the same percentage of restaurants rarely make it through the first year? There is a lot of information on opening a restaurant on the internet and plenty of options when deciding on your concept.

So far, the hospitality industry has proven remarkably resilient. However, the Covid pandemic has changed the landscape over the last couple of years; people had to overcome the most difficult situations imaginable and adapt to survive. Still, anyone who isn’t learning from and planning with our recent history in mind might find themselves out in the cold if we go through another pandemic-like situation.

It’s anyone’s guess how many will come through these last couple of years unscathed or what the restaurant industry’s future might look like. One thing is sure; your customers will be the ones who pull you and your staff through to the other side in tough times.

The Fate Of Family Owned Restaurants

The restaurant business is not for the faint-hearted or those who want to make a quick buck. Profits are sometimes slim, and the competition is intense. Walk around any street in the Nation, and you will quickly realize that thousands of restaurants have already closed but many more survived, and more will follow. With that in mind, knowing that the pandemic is winding down if you still want to open a restaurant, read on.

My Restaurant Vision

Today, those who are considering opening a restaurant business have several options that, include the following:

Build one from scratch- which is also the most expensive route
Rent a space in a building and open a restaurant- a common theme
Join a fast-food franchise- but the costs to join a franchise can vary from $50K to $3 million.
Cook from home is cheaper, but one can only make so much food because of space limitations. This may not be an option if you live in a condo.
Share a kitchen- a viable option for those with little money and just starting.
Search for a restaurant for sale in the area you intend to operate. But it would help if you checked out why the restaurant is for sale.

Essentially, the amount of money you have to invest will dictate what type of restaurant business you can open.

Find a Good Fresh Food Supplier

All restaurants depend heavily on their food and equipment suppliers; finding a reliable source of daily food supplies is vital. Also, your food supplier must have reasonable prices and should have all the supplies you need. You’ll also need to have backup food and equipment suppliers if there is a problem with one of them. The best way to know suitable food suppliers is to talk to other restaurateurs.

Here is a list of some popular restaurant food supply companies

Why Is Running A Restaurant So Hard

You’ll be dealing with demanding customers
There’s a constant requirement to refine your menu.
Regular tracking of supplies and inventory
Managing personnel
Constant management of fresh food from the market
You must ensure staff comply with all state and local regulations
Keeping the restaurant meticulous, clean, and immaculate at all times
Time commitments
Low profits
Getting negative reviews for trivial reasons
Demanding customers
Dealing with health and safety issues
Managing personnel scheduling and retention

The Restaurant Business – Restaurant Startup

Register the business
Obtain an EIN
Register for federal and state taxes
Obtain a Food Safety Permit
Open a dedicated bank account.
Get local permits and licenses.

If you are unsure, either speak to another restauranter or visit the local Chamber of Commerce

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit – SBA loan for restaurant

IRS Website

This site by the IRS is a must-see when beginning your LLC.

Restaurant Partnership

We will all need partners along the way, We can’t run the entire restaurant ourselves, and two heads can be better than one. You can partner with other motivated individuals or groups of people. Joint ownership is not as bad as it sounds; with shared risk and rewards by many, it will be easier to carry the load. Applying for permits might not be your thing, so find partners to help fill in the gaps in your plan.

Restaurant Permits And Licences

Below is a list of likely licenses you need to get. A business lawyer will be a great substitute if you don’t want too many partners.

Register your business name and trademark.
Get a business owner’s license.
Foodservice license.
Food Manager Certification
License for signs
Health permit.
Meet OSHA requirements
Live Music license (Cabaret License)
Workers’ Compensation Insurance
Fire and Safety Permit
Liquor license.
Employer identification number.
Sign permit.

Here are a few legal services available online if you want to talk to a lawyer

Most of the above permits and licenses can take several months to obtain, so you must submit your application early in the process. Your local county website or chamber of commerce will have information on exactly which licenses you will require.

Here are a few websites with information on OSHA guidelines

Trademark Your Restaurant Brand

Here are a few resources where you might get started

There are a few companies that specialize in Trademark Registration

The United States Trademark And Patent Office

A Word Of Caution

Unfortunately, because of the ongoing pandemic, the future of the restaurant business in some areas is not assured. Thousands of restaurants have closed, and no one knows how many will survive until the pandemic is in our rearview mirrors. Anyone considering a restaurant business must consider their local COVID restrictions.

In the meantime, save money and prepare your ideas. We all hope that the covid pandemic will be gone entirely, remain dedicated, and motivated, and find a great location and a unique menu. At the right time, the sky’s the limit. But always remember there may not be any competition in the area today, but tomorrow may be a different story. The more you anticipate the issues, the more successful you will be.

Banking For Restaurants

Here are a few of the standard business banking options available online

Some Financial Tools That You Might Consider

Budgeting Tools

Accounting Software

Expense Tracking

Payroll Management

More In-Depth Reviews Here At The Barcode

Tax Preparation

Inventory Tracking

Billing And Invoicing

Restaurant Marketing 101

If you want to succeed in the restaurant business, making a detailed marketing plan is essential. A plan will help guide you through the process and help mitigate any future issues. The saying goes, “failure to plan is inadvertently planning to fail.” If you want to avoid becoming a restaurant owner who quits the business in the first year, a solid marketing plan must include a backup plan. Bobby Flay once said, ‘Nothing ever goes perfectly, especially when opening a restaurant.

Why Do Restaurant Businesses Fail?

The failure rate of restaurants is very high. 60-80% of new startups close within the first five years. Just making great food is probably the easiest part of running a restaurant. The business requires hard work, long hours, dedicated staff, reliable marketing, constant updating, and knowing how to beat the competition. Without a solid marketing plan, anyone considering opening a restaurant business is doomed to failure.

The marketing plan should contain the following information:

How much money will we invest in marketing the restaurant?
Where will I open my restaurant?
How much foot traffic will we have?
Who are my customers?
Who is my competition?
What is my culinary niche?
What kind of restaurant theme will we employ?
Are we a franchise operation?
How will we construct our website?
Will we use text messaging?
Which publications will we utilize?
How large is my restaurant space?
How many people will I employ?
What age group are my employees?
What social media platforms will we use?
Our head chef profile
Will we be offering take-out? Take-out will be important as customer habits have changed since the covid pandemic, and you’ll need to consider it.
Are we featuring live music?
What kind of sports events will we feature?

Rest assured, no matter how great your marketing plan might be, you will never satisfy every customer; the aim is to please the majority.

Here are just a few restaurant marketing agencies available online

Restaurant Marketing Tools

Marketing a new restaurant is vital for success and should be done weeks before the opening. Develop a marketing plan; this should include the following:

Get the word out in the local community by placing ads in the local newspaper and radio shows.
Distribute flyers in the neighborhood
Create a webpage detailing everything about your restaurant, including the location, menu, facilities, and prices
Maintain a social presence in the community
Create a customer loyalty program
Sponsor local events at the school or in amateur sports
Offer a fantastic customer experience because word of mouth is the best form of marketing.
Participate in social media like Facebook, Twitter, and Instagram. Regularly post menus and images of your restaurants and mention new happenings.

Restaurant Website Builder

The internet is the new normal for marketing any successful restaurant. There are many creative ways to spread the word about your business, which are all at your fingertips. Having a website helps with online orders, reservations, and information dissemination. Social media pages are all linked to a website. Encourage patrons to leave a review.

Build Your Own Restaurant Websites

Your restaurant domain name protects your website address on the internet. You can register a domain name with any hosting company you choose.

Some of the common domain registrars include:

Here is a list of options for building a regular website.

Here is a list of drag-and-drop page builders for WordPress.

Culinary Competition

Too many similar restaurants in your chosen location will motivate you to go a different way and carve out your own niche. Humans are unpredictable; we constantly desire variety; Federico Fellini said, ‘it is easier to be faithful to a restaurant than a woman.’ But remember, Those original and unusual ideas carry a more considerable risk of failure.

Full-Service Restaurant Design

What you see is what you get, right? So true. So what do we see when we look at your restaurant, your interior? How elegant is it? An exquisite restaurant has thoughtful design working independently and collectively.

Here are a few restaurant design and architecture firms

Design A Menu For A Restaurant

When creating a menu, things to keep in mind include:

Sleek modern design
Current trends
QR code menu access
Price – has to be affordable.
Kid-friendly
Vegan options
Gluten-free- a significant number of the population now asks for gluten-free options.
Cook your own food restaurant
Vegetarian options
Quality ingredients
Do not go overboard with the size

Here are a few menu design services available online

Cost Of Starting A Restaurant

Opening a restaurant is not an inexpensive undertaking. The costs will usually depend on size, location, concept, and equipment. Even the smallest high-end restaurant comes with startup costs upwards of $100K. The price per square foot can run between $100-$1,000. So if you’re opening a 2,000-square-foot restaurant, the cost can be very high. Startup costs for a restaurant business can depend on many factors, which will usually include the following:

Rent $7K- $20K
Interior decoration $20K-$30K
Employees’ salary is $25K-$50K.
Supplies $5K-$10K
Furniture $7K-$20K
Kitchen appliances $15K-$50K
Walk-in Fridge $10K-$15K.
License and permits $500-$2,000
Registration $300-$700
Insurance $500-1000
Marketing $100-$500
Utilities $100-$500
Training employees $300-$700
POS systems $3K – $7K
Uniforms $400-$1,000

On average, even for a small restaurant, startup costs vary from $50K – $200K, assuming the place is rented. Today, many companies lease restaurant equipment that can be far cheaper than buying it new, significantly lowering your startup costs.

Hospitality Business Loans

Most lenders are reluctant to offer first-timers loans because the restaurant business is associated with high failure rates. So your options are limited, but you may want to consider the following:

Seek a venture capitalist to assist you
Ask for a loan from a credit union; however, those loans are usually smaller and come with high-interest rates and administrative fees.
Have a detailed marketing plan because the lender will ask for it.
Be creative with crowdfunding.
Small business loans are available, but the application is often long and tedious.
Seek a partner
Speak to a restaurant consultant

Funding My Restaurant

Small Business Administration

The Small Business Administration, SBA has a program to fund new startups, and is worth a look.

Here are a few of your options

Restaurant Businesses For Sale

Here is a list of services advertising businesses for sale

My Restaurant Location

One of the keys to a successful restaurant business is its location. You’ll want to look for a place with limited or no competition. Also, you’ll want your location to be central, easily accessible to traffic, and near residential homes and offices. Many restaurants fail because of a lack of research in their local area.

Restaurant Food Delivery

Grubhub for restaurant
Postmates restaurants
Uber Eats
Door Dash

Potential For Growth In The Hospitality Industry

There are some locations with more significant potential than others. A Growing residential area or commercial business district is perfect as long as you can afford rent. Your expansion also depends on the location; chances are the growth potential will be as much as your environment permits.

Restaurant Accessibility

Good food is worth all the effort in getting there. An easily accessible location for first-timers and return patrons will double business turnover. People tend to choose the most accessible and most convenient option when given a choice.

Fast Food Free

Keep in mind, depending on the kind of restaurant you are opening, if there are a lot of fast food joints like McDonald’s near you, they will attract a significant amount of your potential customers. These franchise fast-food restaurants offer low prices and are often open 24/7, which will impact most local restaurants.

So spend time strolling through the area and determine when there are substantial traffic and pedestrian fairways. Also, you’ll want to look for more traffic during the weekends when most people visit restaurants.

Finally, no matter what location you decide on, you must ensure that the cuisine you offer will be a local favorite. If the area’s population is young people, college students, and young families, opening an upscale restaurant may not do well. You’ll also want to ensure that heavy foot traffic is at least 5-7 days a week.

Restaurant Real Estate Brokers

Here is a list of some popular commercial real estate companies:

Consider A Soft Opening

Before your restaurant’s grand opening, consider a low-key or soft opening for a few days. You want to identify any issues and ensure that your staff is ready.

First, make sure that no other events nearby will steal your customers.
Offer a smaller version of the menu.
Limit the opening to only a few hours- either brunch or lunch
Invite friends and family so that they can assess the menu and staff efficiency
Invite the local business staff nearby; perhaps they will become regular customers

Restaurant Customers

The restaurant business is very diverse, and you need to know what type of restaurant you will be running. Some of your choices include:

Family-owned business
Fast foods
Food trucks and concession stands
Catering for large orders
Pop-up restaurants
Affordable dine in
Seafood
Steakhouse
Pizzeria
Fine Dining
Contemporary casual
Fast-casual
Buffets
Bars & pubs
Drive through and pick up only
Vegetarian, gluten-free
Exotic Foods
School and college individuals

Fast Food Franchise

Fast food restaurants serve the most affordable meals and require fewer employees, food production, and delivery staff. If delivery, takeout, and drive-through pickup are a part of your vision, you’ll want to specialize in fast foods like burgers, pizzas, fries, etc. A food delivery van can also be a significant addition.

Here are some American franchise options

Chick fil a franchise
Islamorada fish company
Chipotle franchise
Panera restaurant
Bennigans restaurant
Wingstop franchise
Steak and shake franchise
Wahlburgers restaurant
Raising Cane’s franchise
Taco Bell franchise
Waffle House franchise
Jimmy Johns franchise
Popeyes franchise
Jersey Mike’s franchise
Ruby Tuesday restaurant
Whataburger franchise
Shake Shack franchise
Panda Express franchise
Dairy Queen franchise
Papa John’s franchise
Dairy Queen franchise
Blaze Pizza franchise
Pizza Hut franchise
Five Guys franchise
Tim Hortons franchise
Firehouse Subs franchise
Wendy’s franchise
Cookout franchise
Burger King franchise
Domino’s Pizza franchise
Subway franchise
Arby’s franchise

Midscale Restaurant

Offering traditional American cuisine will always be popular in every corner of the USA. The menu doesn’t have to be sophisticated or unique in family restaurants, sports bars, franchise chains, or breakfast restaurants. It works.

Upscale Restaurant

Serious business here: Significant attention is paid to the type of cuisine, service, location, and decor. That saying ‘to whom much is given, much is expected’ applies here—high-end patrons will want something classy, intercontinental, and extravagant.

Fresh Food Company

It would help if you also decided on the cuisine region that you will be offering; some of your choices include:

All American (pizza, burgers, fries, etc.)
Asian
Chinese
Indian
Middle Eastern
Japanese
Korean
European
West Indian
Mexican

Restaurant Operational Equipment

Cash-registers
credit-card processing machine
Point of sale system (some of the best iPad restaurant pos systems are available for $600)
restaurant management systems

Restaurant Inventory

Inventory and stock-taking are essential to making profits; you can’t afford to leave anything to chance. What, then, should you do?

Take stock as frequently as possible.
Get software that makes recording easy.
Update point-of-sale machines
Make sure clients get receipts fo purchases.
Go easy on purchasing perishables.

Aside from letting you figure out how well the business is doing, A sound accounting system will come in handy when funding business expansion.

Hire the Right Staff

One major challenge in the restaurant industry is hiring and retaining good employees. Employee turnover remains high for various reasons, including low pay and long working hours. Thus, screening potential employees who share your vision is required to employ the right team. You need to get the right personality and experience. Also, after hiring, employees need to be continuously trained and motivated. Fair treatment and financial remunerations are the keys to retention.

Staffing agencies that you may want to use:

Some examples of staffing positions you’ll need for a restaurant include:

Receptionist
Servers
Bartender
Catering manager
Cleaner and dishwasher
Chef
Broiler cook
Accountant
Baker.
Manager.
Beverage manager
Bus person
Counter server
Sous Chef
Prep cooks

The front-of-house staff should have a clean uniform and exhibit superb social and personal skills.

Except for the chef and/or cook, job descriptions are fluid among available hands. Nothing is set in stone. The number of staff depends on the business, but it will be in everyone’s best interests to keep your hiring to a moderate level so you can offer your team the hours they will need to be happy.

Standard Restaurant Staff;

The Manager can double as a host. Even the restaurant owner can fill in sometimes. This person should have leadership and coordination skills to keep other staff members on track.
The Chefs are the stars of any restaurant. Success largely depends on their culinary skills; chefs are also known for their versatility and management skills.
The Dishwasher: People eat out because they don’t have to wash dishes; dishwashers and bus staff play a fundamental role in keeping the restaurant clean and tidy.
Servers and Waiters are our frontline employees; Servers will be face-to-face with your patrons, so they should be hospitable and always keep a pleasant disposition. Working well under pressure is an excellent characteristic that servers must possess.

Furthermore, well-trained staff will focus on your mission and vision. Experience is an excellent commodity when hiring, but so is commitment. A Committed team boosts the chances of success and business growth. From the soft opening forward, correcting lackluster behavior is crucial.

What Type of Restaurant Equipment And Tools Are Needed?

Here are some Online Restaurant Supply Companies

Don’t forget the To-Go containers

Vibe Cartons

Kitchen Equipment

Beverage dispensers
Blenders
Coffee makers
Countertop dispensers
Cutting boards
Deep fryers
Display cabinets
Dishwashers
Food processors
Freezers
Fryers
Grills
Hoods & Venting systems
Ice makers
Microwaves
Mixers
Ovens
Refrigerators
Safety equipment (e.g., fire extinguisher)
Sandwich press
Sinks
Slicers
Steamers
Storage containers
Toasters
Variety of pans, pots, spoons, knives, measuring cups, etc

Front-of-House Equipment

Chairs
Condiment dispensers
Glassware
Handwashing station
Menu Boards
Napkins
Tables
Tablecloths
Salt and pepper shakers
Self-service food equipment.
Silverware
Sofa, Couch, stools
Sound system
Seating stools
Utensils