Why do most restaurants fail in the first 2 years? Even if they have great food? Even if they have the most fashionable design projects? Even if they are located in the most visible connections?
Having worked in various industries for more than 25 years, I saw that although most large corporations are serious about finance, marketing and management, many small businesses pay too much attention to their products, neglecting Financial Management and Marketing / Promotion. Because of this, many entrepreneurs are buried in cash problems and lack of customers after 6 months of operations.
Restaurant business is no exception. Very often I met restaurant owners, who paid a lot of attention to food, but neglected financial calculations and marketing. I also met owners who carefully study the design of the restaurant, but forget about the importance of service.
I firmly believe that the ability to cook does not mean that you can successfully manage a restaurant. Working in a restaurant is more than a good cook. This includes a lot of planning, human resource management, marketing, financial management and a lot of hard work.
Opening a restaurant is easy, but maintaining a profitable restaurant in the long run is another battle. There are 5 important elements that make a successful restaurant.
Your restaurant should have:
1. Good location with a comfortable dining area.
Your restaurant should be located where your target customers are. You should not open a high-class restaurant in which people living within a radius of 5 miles from your place emit less than $ 2,000 per month.
2. Great food and drinks that make a customer come back.
Your restaurant should have food and drinks that distinguish you from other cafes in the area.
3. Excellent customer service
Eating is more than just food. This is a whole experience of saving dishes, absorbing the atmosphere and entertainment. If you do not provide excellent service, the entire dining experience will be bad and your customers will never return.
4. Accurate and strong financial management.
In the restaurant business requires strong financial management. You need to know exactly your food expenses, operating expenses, and targeted sales to cover your monthly expenses. Cash flow management is very important to ensure smooth operation.
Even if your restaurant works in a full house every day, if you do not control your expenses and evaluate your dishes correctly, you will end up losing every month.
5. Aggressive marketing and advertising campaigns.
Any retail store must do aggressive marketing and promotion ALL THE TIME. Have you noticed that, despite its huge business and popularity, McDonald always advertises? You have to constantly sell and promote your restaurants so that people “remember” you all the time.
Take full advantage of available social networking sites to promote your products.
