This article explores the factors that are essential when starting a restaurant, a café, a bakery, butchery or a shop. Fortunately, the factors are important to each of the different service ventures. The bottom line is that all the named business ventures are in the line of the food industry that is undoubtedly a lucrative industry. However, it is an industry with challenges of equal measure. Before you can make the first step, here are the factors to consider.
The location factor cannot be overemphasized. It is not only an essential factor but also one that is complex. There is no hard and fast rule on choosing that perfect location. Rather, the ideal location should be considered against many more factors.
First, the location factor should be considered against the restaurant niche. A restaurant that is inclined into the Italian cuisines, for instance, should be located in an Italian culture location. On the other hand, a fast- foods restaurant is best placed in the very busy places.
The golden rule of getting the location right is to do due diligence. Here you may wish to hire a professional, but it is advisable that you do your separate due diligence. Remember, once the business is up and running the last thing you want is to change locations because now you realize you made a mistake. Such a venture is not only costly but very tiresome.
One of the things that should come out of the due diligence is the traffic generators of the contemplated location. For instance, is it a college, office park, hospital, and such traffic. A bakery will blend well in a neighborhood of a college while a mid- scale restaurant will suit an office- Park neighborhood.
Once disposed of with the location factor, the second important factor must be the choice of food concept. Here, it is crucial to have in mind the community of the business premises. Again, due diligence will come in handy. This should not, however, mean that you may not introduce your own menu in the business.
Choosing the food concept will bring with it the need for certain equipment thus the need to plan accordingly. For instance, choosing the Chinese cuisine necessitates the purchase of chopsticks and large platters among other service ware. The Chinese cuisine device is extensive in their service because foods are served on some different bowls.
This factor also comes in handy in starting butchery. The business of selling meat is rather a sensitive one where people are likely to have differing preferences. There are different kinds of meat that a potential butchery owner may choose preferences on the kind of meat. That is, beef, pork, chicken, mutton, Pork will for instance not appeals to the Muslim community.
The third important factor, most applicable in restaurants business is the restaurant service style. Generally, there are three categories of restaurants service styles. That is quick service style, mid-scale and the large scale restaurant
This factor also applies when starting a bakery. The different service styles here are the sit-down bakery, specialty service bakery, and counter service bakery. Sit down bakeries have gone against the traditional way of running a bakery by allowing customers dine in the bakery. The specialty bakeries on the other hand deal with cakes for special occasions. This could be cakes for birthdays, anniversaries and weddings. Customers are mostly served on pre- order basis.
The capital factor is yet another important aspect. Perhaps you have been saving up for this venture and are ready to put your money into the business. On the other hand, if you have no capital, you may wish to pool you resources together from family members and friends. Where a lot of capital is required, you may have to consider getting equity financing. Whereas this option may take a while to mature due to the long procedures in equity financing, it is an ideal option more so because of the lengthy repayment period.
Notably, quick service restaurants are more likely to appeal to the young people. It is, therefore, necessary to have this customers’ age group in mind. The best advice would be to set a quick service style restaurant in youth populated areas.
Also, due regard must be given to the business potential competitors. As a new entrant in the food industry, you may be led to think that the best place is a location where you have no competitors. However, entrepreneurship experts opine that it is prudent to set up your business in the eyes of your competitors.
Placing your business in the proximity of competitors is more prudent in a new business. The advantages are that your business will take advantage of the already established marketing forces. The new business must, however, offer something unique to the potential customers.
Another restaurant service to choose from would be the family service style restaurant. This niche is ideal for the seniors and young children that are not your everyday customers in the quick service restaurant.
As a general rule, urban areas are more attractive for the restaurant as opposed to the upcountry areas. Perhaps this could be explained by the fact that urban residents are too busy to make their own food. Upcountry areas would on the other be an ideal location for setting a restaurant in a tourist attraction area. This factor is important more so because a 2015 research on restaurant growth index shows that tourism remains a leading driver for restaurant growth. Specifically, the top five world best places to start a restaurant are Beach destinations. Beach destinations are mostly in the upcountry.
Another important factor has to do with the legal approvals that are required to run such establishments. Certain approval prerequisites may require a considerable amount of money to comply with standards for restaurant, butchery and cafe fitouts. These approvals are essential so to enable you, and your staff to run the business smoothly. Check all theses requirements during the commercial kitchen design process.
Most importantly, just like in any business, the restaurant, butchery will be liable to remit tax. Tax compliance is essential and mandatory. It is thus prudent to consider the amount that the business shall be required to pay. Notably, certain areas, and in the broader sense, certain countries have more favorable tax laws. The amount of tax is undoubtedly a significant expense that any business faces. When you choose the location make sure that the hydraulic and electric set up is ready otherwise you will have to call recognized plumbers, experienced electricians and shopfitters. Article written by our SEO consultants in Sydney.