Every day people take the plunge and open their own restaurant. Are you tempted by the adventure? If so, Melba has prepared the ultimate guide to help you open your restaurant!
The food service industry is constantly renewing itself through new concepts, products and ideas. Opening a restaurant in 2023 is nothing like opening a restaurant ten years ago.
Many restaurateurs still experience the same problems that were common over ten years ago:
Too often, with lack of information and perspective, people launch headfirst into the creation of their restaurant. Unfortunately, opening a restaurant in a hurry can make projects unstable in the long run.
Keep in mind that 80% of new restaurants fail within 3 to 5 years. This is definitely not a situation you want to find yourself in.
Fortunately, there are ways to overcome these obstacles and put the odds in your favor. So, while we are not here to assure you of the future success of your restaurant, we will show you the best techniques to achieve it.
Before embarking on the opening of your restaurant, it will be quite necessary to think about the idea of the concept which holds your project. This is how you will be able to characterize your competitive advantage.
Do not hesitate to discuss it with your family and friends, it may sound simple, but talking about your project will allow you to make it real in people's heads--and give you greater incentive for the future.
The concept can reflect your desires and your personality, but it can also be chosen out of opportunism. The important thing is that it echoes the expectations of your consumers.
Once you have your concept selected, you have to define your positioning. The latter must be:
Clear and identifiable by your consumers. They need to be able to understand your offer very quickly in order to determine if it is relevant to them.
Differentiating. Your consumers need to be able to identify the differences between you and your competition in order to make a decision.
Your pricing policy will also be crucial in the positioning of your restaurant. Price is an element which differs according to: your economic situation, that of your competitors and the expectations of your customers.
The name of your restaurant should be catchy and create longing. It might seem obvious, but it is important to note that the name of your restaurant is one of the first contacts consumers will have with your establishment.
The name must, therefore, be able to withstand challenge and trigger in them the desire to cross your door's threshold. If at first you get stuck with the name of your restaurant, don't hesitate to use a name generator!
You should ensure that the name of your restaurant echoes the concept of your restaurant. If it is far from your concept, it won't matter if it is catchy--you will have to find a different one. Always aim for consistency with your decisions, whether that be selecting the name, decoration or communication.
Be careful once the name of your restaurant is in mind, you'll want to check its direct availability. This can be done via country specific sites which track business names.
You are probably wondering why you need a business plan? A business plan makes it possible to achieve major objectives by:
To get started, define your target market and what you expect from it. You have to get used to defining and describing these people as well as formulating the questions they will pose. Always keep in mind that the end goal is to convince your audience to invest.
Looking for investment
If you are looking for an investor, it will be essential to focus on the profitability of your establishment.
Looking for a purchase from your business (parent company)
If you are aiming to buy out your company, you will need to focus on strategic issues and point to the return on investment of your restaurant.
Seeking funding or regulatory approval (funding from a regulatory body)
To obtain funding from a regulatory body, you will need to focus more specifically on the conditions issued by them. Make sure you meet all the conditions. Keep in mind that each authority will put forward specific criteria which must be met.
Looking for an acceptance of your offer (raising funds)
If you are looking to raise funds, you should insist on the quality of your management.
Looking for help in managing my business
As part of a search for help in the management of your business, clearly define your objectives. Focus on non-financial issues, such as management aspects. You will have to define not only all of the objectives of your restaurant, but also those of each of the different services.
Always write your business plan with your target audience in mind. This will condition the language used. There are no precise rules for building a business plan, but certain information must still be included:
The executive summary: this presentation is there to sell your project and make your target want to dive deeper into it. The audience must quickly understand the main points and also want to continue reading.
The team: in this part, you will have to introduce yourself and your team. Try to value experiences and highlight the expertise of your team. Emphasize the synergy of the team and its ability to successfully complete your future restaurant.
General presentation of the project: Where does your idea come from? Why did you start this project? What are your goals?
The detailed description of the future restaurant: You will explain in detail the concept of your restaurant, the decorations, its geographical location, etc.
Also clearly indicate the means by which the operation is envisaged. Potential customers; the number of staff planned and each of their tasks; your organization; the legal, social and fiscal status you have planned.
Your restaurant will also have to account for the economic environment of your restaurant: the customers you want to reach, the competition--direct and indirect, the market share you plan to take in your sector.
Your commercial strategy: the menu, the type of cuisine, the services provided to customers (parking, valet parking, games for children, swimming pool, etc.), the main suppliers, the price range in relation to the services provided.
There are several online tools that will help you write your business plan. For example, melba will allow you to prepare your menu and quickly calculate your profitability.
Even if it is quite possible to open a restaurant without a diploma, you should be taken into account that some training is compulsory. This the case for :
If you don't have the required training, many training courses will allow you to acquire business knowledge quickly and lay a solid foundations for your future establishment. These courses, of varying lengths, can be provided by both the State and private organizations.
The Operating License
Any manager of an establishment (bar or restaurant) distributing alcoholic beverages must hold a license subject to conditions. This training is not free and lasts 2 and a half days. At the end of this training, you will be issued with an operating license valid for 10 years.
Training in good hygiene practices for people handling food
This training is compulsory for any person working in an establishment handling food. At least one person in your establishment must have completed this training. You can train your employees directly or call on an outside organization.
The license to sell Alcoholic beverages at night
The Night Alcoholic Beverage License allows you to sell alcohol to be consumed on site between 10 p.m. and 8 a.m. This training lasts 7 hours and can be delivered online.
There are a large number of aids and subsidies to know before you open your restaurant. Your status often determines which ones for which you are eligible. Many grants are also determined by your location, your age, etc.
The region or department, where you are located, influences the assistance available to you. They are free to choose the aid scheme they grant. The local authorities allocate aid in the form of:
If you are an employee and you fear that your restaurant opening project will not be a success, you can claim aid such as the CIF or a business creation leave. These aids will allow you to move forward on your project with peace of mind .
Crowdfunding can be a good alternative to "traditional" financing. This consists of presenting your project on online platforms in order to raise funds. Many restaurants have opted for this method in order to launch their establishment.
The formalities for starting a business have been significantly simplified compared to a few years ago. The administrative formalities consists of declaring your activity and requesting your registration with the proper organizations. These will vary by country, but don't worry, the internet is a great source to help understand your local requirements.
Before embarking on the opening of a restaurant, the choice of your legal status will be important. This choice will have to be made according to several parameters: level of taxation, level of capital required, level of personal risk, etc.
Staff is one of the biggest expense items in a restaurant (at least 25% of total expenses). However, your employees are also one of your greatest competitive advantages and have a huge impact on your strategy and ultimately on your profitability.
The recruitment stage should not be done in a hurry. The time you invest in recruiting your future employees will be an asset for your future gains.
Many softwares now offer to help you during the recruitment stage. If you need support, these softwares can be useful!
Before you jump headlong into the recruitment of your future employees, start by identifying your needs. To do so, it is necessary to know and understand the nature and structure of a brigade.
In a brigade, each employee has a very specific function. The constitution of your brigade will depend on your establishment and its specificities. There is no one type of organization to favor, your brigade must meet the needs of your restaurant.
Assess your needs by asking yourself the right questions:
The job description is one of the keys to success. It allows you to define your expectations and to impose the same rigor and framework for the different people you will see in an interview.
This section is divided into 3 parts:
The responsibilities of the role: Here, it's about defining the essence of the job. For example, for a team leader, you could write "Coaching a team of restaurant workers to ensure their success." The description should be clear, concise and precise.
Expected results: Determine what you expect from your future employees. For example "Set up processes to act as intermediaries between management and team members." Find between 3 to 7 expected outcomes.
⚠️ Expectations must present a challenge for your future employees but at the same time remain attainable.
Skills: Define the skills you expect from a candidate to fit the role perfectly.
Now that you have defined your needs and established profiles for expected candidates, you need to set salary ranges. The remuneration of an employee can be made up of a basic salary and, when called for, additional supplements. The basic salary needs to be neither more nor less than the remuneration paid for the work of the employee. Salary supplements can come in different forms (tips, accommodation, food, etc.).
You have the right to set the base salary freely, while respecting:
The amount of the SMIC (growth-indexed minimum wage)
The SMIC is the minimum wage below which no employee can be paid. Please note, the minimum wage applies to each person, even if the contract allows for a commission fee.
The Collective Agreement
The collective agreement for hotels, cafes and restaurants (HCR) offers a framework which deals with the working conditions of employees and their social guarantees. The HCR collective agreement defines the jobs, classifies them and can also associate each of them with a guaranteed minimum wage; the amount of which is more favorable than the minimum wage. The employer who is subject to it must respect this guaranteed minimum wage. The collective agreement also sets out to regulate overtime, trial periods for hiring, severance pay, etc.
Provisions applicable to overtime
Any hour worked beyond the legal weekly duration, or a considered equivalent, constitutes as an additional hour. These hours are eligible for compensation.
If you have no idea of the average compensation applied for each position, you can get information from colleagues with a structure similar to yours. You can also go to job boards and compare the stated salaries.
Gas or Electricity? You will have to make your choice in the type of energy you want to use for your restaurant. Gas is traditionally the norm in restaurant kitchens, however, there has been a breakthrough in electricity in recent years--thanks to induction.
City gas is still the preferred energy for restaurateurs. In addition, there is a wide variety of large gas cooking equipment available. However, one of the problems with the use of city gas is ventilation. It will be necessary to invest in efficient ventilation to ensure proper evacuation of the burnt gases.
Propane offers almost the same conditions of use as city gas, however, its installation makes it a scarce energy. Propane is only used very rarely, often in fairly complex geographic situations.
Electricity is one of the fastest growing energies. Equipment is getting more and more efficient. Thanks to induction, electricity now guarantees great precision in cooking management. You still have to be careful because the price of electric cooking equipment can often be much higher in comparison with other energies.
To get started in purchasing your future cooking equipment, start by making a list of your different needs. The list greatly depends on the specificities of your restaurant.
There are still essentials: cooking and preparation equipment to cook your meals quickly and precisely; refrigeration equipment to keep your food fresh and in good condition; cleaning equipment to ensure the hygiene of your utensils... The list is long and it is sometimes difficult to navigate through the multitude of equipment needed for your kitchen .
We strongly advise you to contact a CHR professional. The materials you find will very often have a higher quality of life than mainstream materials. One of the other advantages is safety--this type of material is suitable for professional use.
Before embarking on a new project, it is always essential to set goals. It's the same thing for a communication plan as part of the opening of your restaurant. One of the proven methodologies in this area is the SMART methodology.
How to formulate a SMART goal?
Your goal should be clear and precise. The more you specify what you are trying to achieve, the more you will be able to deploy the means necessary to accomplish it.
Ex: "I want to increase the traffic on my restaurant site by 50% in one year!" "
The objective must also be quantifiable. This is essential to ensure that your goal has been achieved. If your exact goal has not been reached, you will also be able to measure the difference between your initial objective and the result obtained.
Setting a goal that is far too ambitious will drain your resources and demotivate you.
Your goal must be realistic, something that is obtainable with your means.
The goal should have an end date to define if it was reached within the allocated time.
By creating buyer personas, you will be able to define what your typical customers look like and make your strategy more effective.
To determine your clients, start by filling in the demographic information of your future customers.
Present the motivations of your personas. What are they looking for? What are their desires? How can your restaurant meet their needs?
Include real quotes and prepare a list of objections for which you can respond.
By preparing messages tailored to each of your personas, you will be able to deliver the right message at each point of contact.
A website is still, in the minds of many people, one of the most trusted platform for finding restaurant information. Uses have changed a lot, and mobile browsing now represents more than 50% of web traffic. Your site must, therefore, be optimized for mobile phones to ensure that your visitors don't leave without having succeeded in obtaining their desired information.
80% of customers search for the establishment they want to visit on the internet. Several more traditional solutions are available to them: google, online directories (Tripadvisor, Lafourchette...), but also social networks. Social networks are essential platforms to boost your visibility. The news feeds of your prospects are generally swamped with information, so it is necessary to put in place an effective content strategy to be visible.
Email remains one of the most efficient communication channels. It is one of the channels with the best return on investment (ROI). However, to best succeed, you should try out some of these best practices to effectively engage your target.
Opening a blog where you will write articles, related to your business, will allow you to improve your SEO strategy . If your writing is done on a regular basis and with a focus on topics that your clients are interested in, chances are your ROI will be significant.
The return rate for a flyer distribution operation is generally quite low (around 0.1%). For this type of operation to be profitable, it is imperative to play on quantity and repetition.