Here At Americard Payment, we work with a significant amount of customer-facing businesses, which include a large number of restaurants. Opening a restaurant is considered both an exciting and a risky business venture. Some believe that as many as 90 percent of restaurants fail within their first year of opening, which is a myth. That said, as many as 55-60 percent of restaurants do experience failure in their first year, so the statistics remain somewhat frightening. If you are considering opening a restaurant of your own, read our blog to discover what actions you can take to experience success.
The Big Three: Location, Concept, and Chef
A great location, a talented chef, and an exciting concept combine together to form the holy trinity of a successful restaurant. First of all, it doesn’t matter how delicious your fare is if your place is in a crappy location. Your restaurant needs to be as accessible as possible not just in location but in price point and branding as well.
Before anything else, you must determine your restaurant concept. What sets your place apart from others? Once you have determined your concept, you need to find a chef who is compatible with your concept. When you find the correct match, you will spare yourself and others drama.
Overestimate Your Capital Needs
It’s wise to have at least six to nine months of working capital when starting your business. Expenditures often add up more quickly than expected, and restaurants generally take some time to work out kinks in their business. Although your place might experience a boom in business upon first opening its doors, it will most likely taper off after its newness has worn off. This is why it’s vital to have capital stashed away to help build your business so that it will last in the long term.
Don’t Be Cheap with Your Guests
Customers don’t flock to your restaurant just for the food; they desire an amazing experience as well. Refrain from buying cheap equipment or from using cheap ingredients for your food. Another great way for building your business is to give away free gift cards and send complimentary dishes to guests. When you offer gifts to your customers, you create a relationship with them, and they will love you for it. Happy customers are repeat customers, so build as many positive relationships as you can with your patrons.
Remember the big three that we discussed earlier? These elements all come together in the organization process, which is vital. Your restaurant must develop systems in order to make a profit, retain key employees, and improve guest retention. When your establishment is well organized, you can focus your energy on the creative elements of your place of business.
Surround Yourself With The Right People
In the service industry, having a pleasant, friendly, and efficient staff is key. Be discerning when hiring employees because the reality is that you simply cannot be in the restaurant 24/7. When you hire good people, train them well, and treat them well, your business will run more smoothly whether or not you are on site.
If you are opening a restaurant, then you need the right POS system. Americard is currently running a promotion on our mobile restaurant POS equipment for no money down and only $89 a month. Contact us today for our credit card processing services.