Running a Restaurant For Dummies

Michael Garvey, Andrew G. Dismore, Heather Dismore

• Publisher: For Dummies
• Year: 2019
• Print ISBN: 9781119605454
• eBook ISBN: 9781119605478
• Edition: 2
• Topic: Business
• Subtopic: Hospitality, Travel & Tourism Industry
• Index: Business

The easy way to successfully run a profitable restaurant

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 aspiring 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 get more successful, Running a Restaurant For Dummies offers unbeatable tips and advice for bringing in hungry customers. From start to finish, you'll learn everything you need to know to succeed.

• New information on designing, re-designing, and equipping a restaurant with all the essentialsfrom the back of the house to the front of the house
• Determining whether to rent or buy restaurant property
• Updated information on setting up a bar and managing the wine list
• Profitable pointers on improving the bottom line
• The latest and greatest marketing and publicity options in a social-media world
• Managing and retaining key staff
• New and updated information on menu creation and the implementation of Federal labeling (when applicable), as well as infusing local, healthy, alternative cuisine to menu planning

Running a Restaurant For Dummies gives you the scoop on the latest trends that chefs and restaurant operators can implement in their new or existing restaurants.

P.S. If you think this book seems familiar, youre probably right. The Dummies team updated the cover and design to give the book a fresh feel, but the content is the same as the previous release of Running a Restaurant For Dummies (9781118027929). The book you see here shouldnt be considered a new or updated product. But if youre in the mood to learn something new, check out some of our other books. Were always writing about new topics!

Part 1

Getting Started

IN THIS PART …

You’re standing on square one. In the chapters that follow, we introduce you to the restaurant business and help you determine whether you have what it takes to make a go of it in the restaurant world. We help you choose the kind of restaurant that fits your geographic area and your expertise. We help you understand that in order to be successful, you have to create food that people want to buy, again and again. We also help you nail down your concept, come up with a name, and start researching everything from your potential customers to the competition. And we show you how to develop a restaurant-specific business plan.

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

Restaurants 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. 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 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. In the restaurant business, you have so much fun that you can hardly stand it. It’s kind of like wishing every day was Christmas and actually getting your wish. 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 when you first open your doors, the work has only begun. Finally, we help you examine your motivations and expectations for pursuing your dream to determine whether 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’d better do it better than the other guy, or you’ll be out of business.

In this section, we discuss planning your restaurant, hiring experts to help you set up shop, and attracting customers.

Laying the foundation

Sometimes the business of the business is tough for people to relate to. 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 influence your diners’ 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 develop your restaurant’s theme and concept (see Chapter 2), research the market (Chapter 3), develop a detailed business plan and use it to find and secure financing (Chapters 4 and 5), and find the best location for your new restaurant and get the right licenses and permits (Chapters 6 and 7).

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 13 for tips on getting the best price and look to Chapter 8 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 a 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 4 and 5 can give you the details.) After you’re up and running, you 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 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 7.

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 airflow 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 9 through 11 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 give your place a face-lift for much less than you imagine.

Welcoming the world to your restaurant

All the hard work you do to get to the point where you can open the doors means absolutely nothing if no one shows up. Start thinking about how to draw customers way before you open your doors (and every day after that). Develop your marketing plan based on what’s special about your restaurant. Maybe it’s the food, ambience, price, or value. Study your competition, watch what they’re doing well (and not so well), and understand where you have the advantage.

Different groups respond to different messages, so figure out what works for the diners you’re going after. Check out Chapter 15 for details on telling the world about your place and getting them to beat a path to your door. After you get the customers in the seats, you have to keep them there. We’ve heard that you can’t use restraining devices in most states and municipalities, so you do have to let diners go and hope they come back. We want you to do more than hope. Chapter 18 gives you concrete tips for building your clientele and ensuring that most of them come back — and bring their friends.

To be successful in this or in any business, you need to take care of your business today, tomorrow, and years from now. Stay up on trends in your sector and the restaurant business as a whole. Watch for information about shifting dining preferences and behavior in trade magazines, print publications, television news (and the not-so-news magazine shows), the Internet, or anywhere else you get information. And always keep an eye on your competition. Don’t copy them, but know what they’re up to. See Chapter 3 for information on how to conduct a market analysis, and check out Chapter 19 for ways to maintain what you create, using feedback from financial analysis and operational reports.

Finding Out Whether You Have What It Takes

Culinary prowess, a charming personality, and an ability to smile for...

Table of contents

• Cover
• Table of Contents
• Introduction
• Part 1: Getting Started
• Part 2: Putting Your Plan in Motion
• Part 3: Preparing to Open the Doors
• Part 4: Keeping Your Restaurant Running Smoothly
• Part 5: The Part of Tens
• Index
• About the Authors
• Advertisement Page
• Connect with Dummies
• End User License Agreement