Surviving the Unforgiving Restaurant Industry

Living the dream for many entrepreneurs is opening their own restaurant. Who doesn’t love food and fancies themselves a natural host? However, most folks with business sense are well aware of the risks associated with the food service industry. By far one of the more unpredictable and unstable enterprises to enter, restauranteering is not for the faint of heart. More than that, it requires a successful combination of business tact, artistic sensibility, and, of course, a delicious menu.

Here is a quick breakdown of what it takes to survive the harsh realities of the restaurant world:

Simplicity

Many of the common flaws dooming new restaurants are the same problems affecting all startups. Running out of money, poor management, and ill-chosen hires are certainly things restaurant owners need to watch out for, but when it comes to the food service, simplicity is key. Expanding in the aftermath of initial success without direction or concern for long-term cash flow and expenses can be a death sentence for eateries. Keep the menu simple and expand space at the existing location before opening up a new place elsewhere.

Durability

Restaurants cannot afford for equipment to fail at any point. Repairs and replacements are not only costly outright, but may result in hundreds or thousands lost in revenue. Make sure you invest in top-notch stainless steel cabinets, tables, and walk-ins, which are mandatory in restaurant kitchens. They can be used for decades, perhaps even longer, without degrading in quality. Make a similar investment in knives, cookware, containers, etc. Buy the equipment built to last–you’re going to need it in order to maintain seamless operation of a restaurant.

Location

Again, we have a traditional business rule-of-thumb that strongly applies to the restaurant industry. While many products and services have shifted to online retail, food remains something which still requires a brick-and-mortar existence. Optimal restaurant location involves visibility and parking, but also factors in demographics and nearby competition. These elements must be taken into consideration prior to renting space or buying property, for there’s usually no turning back by that point.

Control

This is where strong management over staff and zero tolerance for theft and slack come into play. Restaurants depend almost entirely on capable staff and cost-effective inventory. Many eateries fail because management did not maintain a strong workforce or keep track of product. These are absolute necessities, otherwise a restaurant business is one bad season away from financial disaster and failing to hit their potential in the meantime.

Creativity

The food should stay relatively simple, no doubt about it. But the environment of the restaurant is a canvas onto itself where creativity matters. Interior design for a dining establishment centers on theme, which is itself a product of the style of food being focused on. The look and feel of a restaurant will greatly influence the experience of guests and, if positively coupled with tasty food, will solidify a returning business rate, which is crucial for success.

And Finally…

Put the address and hours of your restaurant FRONT and CENTER on your website! Directly underneath, or otherwise easily accessible, should be the menu. How many times have we visited a restaurant’s website to find out when they’re open and what they have to offer only to be met with a frustrating barrier of undesirable details about the chef’s philosophy and so forth? These details have to be readily available for potential diners or else they will not hesitate to consider going somewhere else.

The life of the restaurateur is a romantic one in theory, but an uphill battle in reality. This isn’t to say there is no potential for stabilized success running a restaurant, just that the accomplishment is no easy task. The path to it, while inevitably featuring pitfalls and roadblocks, is navigable with a cool head and calculated risk. In this sense it’s not unlike any other business venture.