Running a Restaurant For Dummies

Michael Garvey, Heather Dismore, Andrew G. Dismore

• Publisher: For Dummies
• Year: 2011
• Print ISBN: 9780764537172
• eBook ISBN: 9781118053195
• Edition: 1
• Topic: Business
• Subtopic: Hospitality, Travel & Tourism Industry
• Index: Business

Millions of Americans dream of owning and running their own restaurant — because they want to be their own boss, because their cooking always draws raves, or just because they love food. Running a Restaurant For Dummies covers every aspect of getting started for wannabe restaurateurs. From setting up a business plan and finding financing, to designing a menu and dining room, you'll find all the advice you need to start and run a successful restaurant.

Even if you don't know anything about cooking or running a business, you might still have a great idea for a restaurant — and this handy guide will show you how to make your dream a reality. If you already own a restaurant, but want to see it do better, Running a Restaurant For Dummies offers unbeatable tips and advice of bringing in hungry customers. From start to finish, you'll learn everything you need to know to succeed:

• Put your ideas on paper with a realistic business plan
• Attract investors to help get the business off the ground
• Be totally prepared for your grand opening
• Make sure your business is legal and above board
• Hire and train a great staff
• Develop a delicious menu

If you're looking for expert guidance from people in the know, then Running a Restaurant For Dummies is the only book you need. Written by Michael Garvey, co-owner of the famous Oyster Bar at Grand Central, with help from writer Heather Dismore and chef Andy Dismore, this book covers all the bases, from balancing the books to training staff and much more:

• Designing and theme and a concept
• Taking over an existing restaurant or buying into a franchise
• Stocking and operating a bar
• Working with partners and other investors
• Choose a perfect location
• Hiring and training an excellent staff
• Pricing menu items
• Designing the interior of the restaurant
• Purchasing and managing supplies
• Marketing your restaurant to customers

If you're looking for a new career as a restaurateur, or you need new ideas for your struggling restaurant, Running a Restaurant For Dummies offers expert advice in a fun, friendly format. Packed with practical advice and expert wisdom on every aspect of the food service business, this guide is all you need to get cooking.

Part I

Getting Started

In this part . . .

You’re standing on square one. In the chapters that follow we introduce you to the business and help you determine if you have what it takes to make a go of it in the restaurant world. We give you the big picture, including a detailed timeline that takes you from today through the day you open the doors of your place for the first time. We also help you nail down your concept, come up with a name, and start researching everything from your potential customers to the competition.

Chapter 1

Grasping the Basics of the Restaurant Business

In This Chapter

Understanding the basics of the business

Deciding whether you have the necessary skills

R estaurants are fun. Whether you stop by to celebrate a special occasion, grab a quick bite for lunch, meet friends for a drink, or pick up dinner for the family on the way home from work, the experience is usually enjoyable. (At the very least, it’s more enjoyable than not eating or being forced to cook!). Just about everyone associates restaurants with having a good time. If people didn’t enjoy their experience, they wouldn’t come back. So it’s natural for people to think, “I enjoy going to restaurants, so I may as well get paid to do what I enjoy — hang out in bars and eat at great restaurants.”

And you know what? Living the restaurant life is fun. We’ve been doing it for many a year, and we love it. But the problem comes when people see only the fun and never see the struggle. Viewed from the dining room or barstool (or from the kitchen, stockroom, or anywhere else other than the seat marked “Proprietor”), it’s difficult to see the 95 percent of the picture that’s pretty tough work. It’s kind of like wishing every day was Christmas and actually getting your wish. In the restaurant business, you have so much fun that you can hardly stand it. You get tired of wrapping the presents, preparing the eggnog, and checking that the elves are on time for their shifts, and if you have to look at any more roasted chestnuts, you’ll die. The restaurant business quickly becomes more work than fun, so don’t be fooled.

In this chapter, we take you on a quick tour of the business. We introduce you to all the upfront work that you must do on paper before you can even think about picking up a pan or laying down a place setting. We move on to the physical preparations that will consume your every waking minute on the way to opening your doors. Then we remind you that the work has only begun after you first open your doors. Finally, we help you examine your motivations and expectations for pursuing your dream to determine if both are rooted in reality.

Getting a Feel for the Restaurant World

The restaurant world is more than glitz and glamour. It’s truly a business, and if you don’t look at it that way, you won’t succeed. Ultimately, being a restaurateur is being a manufacturer. You’re producing a product (food) from raw materials (your ingredients) and selling it to a customer (your diner). You’re competing with lots of other “manufacturers” for that same diner. So you better do it better than the other guy, or you’ll be out of business.

Laying the foundation

Sometimes the business of the business is tough for people to relate to. It’s a hard concept for many people to get because your product isn’t packaged in a box that sits on a shelf. Your product is packaged in many layers — including your exterior, your lobby, your staff’s attire, the music playing, the aromas emanating from the kitchen, the friendliness and knowledge of your staff, your silverware, your china, and your glassware. All these things make up your packaging, affect the costs of doing business, and affect your diner’s decision to come in and, ultimately, to come back.

As with any business, the planning stage is crucial, and you have to survive it before you can enjoy any of the fun. Right off the bat, you have to create a timeline for getting your business up and running (see Chapter 2), develop your restaurant’s theme and concept (see Chapter 3), research the market (see Chapter 4), develop a detailed business plan and use it to find and secure financing (see Chapters 5 and 6), and find the best location for your new restaurant and get the right licenses and permits (see Chapters 7 and 8).

Buy your products at the right price and sell them at the right price. This simple tenet can make or break your business. Check out Chapter 14 for tips on getting the best price and look to Chapter 9 for pricing your food and beverage menus right from the start.

Setting up shop (with a little help)

Depending on how new you are to the restaurant biz, you may need accountants, attorneys, contractors, and host of other characters, all at the ready and working with you at various stages of the project.

Hire an accountant early in the process of setting up your business. She can help you get your numbers together for your business plan, which is a must-do if you’re trying to get financing for your venture. Chapters 5 and 6 can give you the details. After you’re up and running, you’ll analyze your monthly financial reports and look for ways to improve the numbers. A good accountant, preferably one with restaurant experience, can help.

When starting any new business, you’ll need to review contracts, file your permits, or maybe incorporate your business. Depending on how you set up your business, you may need to draft a partnership agreement or two. Before you sign franchise agreements or vendor contracts or fire your first employee, make sure that you’re working with a good attorney, who can help you with all these tasks and more. Watch for details in Chapter 8.

Most people starting a new restaurant, or taking over an existing one, change a few things (or a few hundred things) at their new location. Maybe you need to set up a new kitchen from scratch or improve the air flow of the hood over the range. Maybe you want to upgrade the plumbing or install air filtration in your bar. Contractors can save you lots of time and trouble. Don’t hesitate to ask them questions and check their references.

Check out Chapters 10 through 12 for the scoop on designing your exterior, dining room, kitchen, and bar — with or without the help of contractors, designers, and architects. Interior designers and architects come in very handy around renovation and revamp time. Sometimes they can come in and give your place a face-lift for much less than you might imagine.

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Table of contents

• Title
• Contents
• Introduction
• Part I : Getting Started
• Chapter 1: Grasping the Basics of the Restaurant Business
• Chapter 2: Getting Everything Done before Your Grand Opening
• Chapter 3: Deciding What Kind of Restaurant to Run
• Chapter 4: Researching the Marketplace
• Part II : Putting Your Plan in Motion
• Chapter 5: Writing a Business Plan
• Chapter 6: Show Me the Money! Finding Financing
• Chapter 7: Choosing a Location
• Chapter 8: Paying Attention to the Legalities
• Part III : Preparing to Open the Doors
• Chapter 9: Composing a Menu
• Chapter 10: Setting Up the Front of the House
• Chapter 11: Setting Up the Back of the House
• Chapter 12: Setting Up a Bar and Beverage Program
• Chapter 13: Hiring and Training Your Staff
• Chapter 14: Purchasing and Managing Supplies
• Chapter 15: Running Your Office
• Chapter 16: Getting the Word Out
• Part IV : Keeping Your Restaurant Running Smoothly
• Chapter 17: Managing Your Employees
• Chapter 18: Running a Safe Restaurant
• Chapter 19: Building a Clientele
• Chapter 20: Maintaining What You’ve Created
• Part V : The Part of Tens
• Chapter 21: Ten Myths about Running a Restaurant
• Chapter 22: More Than Ten Resources for Restaurateurs
• Chapter 23: Ten (Or So) True Restaurant Stories That You Just Couldn’t Make Up