Starting a Profitable Restaurant Business
Everyone eats because it is a necessity for survival and without food, a person can starve and die. In most cities in Nigeria, the majority of the people are more concerned about making money, with no time to cook thereby relying on food vendors like restaurants and roadside canteens to meet their food needs. These have opened a lot of opportunities for individuals who want to invest in the restaurant business to make huge profits off the business.
In this article, you will get to learn what starting a profitable restaurant in Nigeria entails, as well as the tips to becoming a successful restaurant owner.
Steps to Starting a Profitable Restaurant Business
If a restaurant will make any profit from this business, the following factors or steps must be considered. They are:
A Business Plan
Businesses that want to overcome the challenging stages of this business must have a blueprint. This blueprint is the business plan. A business plan describes the business, what it does, how much money is needed to start and run it, what the money will be used for, how the company hopes to repay borrowed funds, the plan for investment, and marketing. Everything about the operations of the business is discovered through and documented in the business plan.
Where will you get your funding from, savings alone, family and friends or a bank? Having the source of your money from the bank may lead to unwanted problems which may not be visible at the beginning of the business
Location is one of the next important things in this business after you must have acquired the required startup capital. A restaurant without a good location will lead to outright failure. Regardless of the market, you should consider setting up your restaurant in an area with offices, business area, markets, places open to people and so on.
Related Post: How Bakery Business is profitable
Startup expenses are the necessary items or equipment needed to start up a business and for a restaurant business, you will need items such as cookers, pieces of furniture, electric power set/generator and most especially foodstuff, drinks, and so on.
Recruitment of Staff
Recruit capable and experienced staff to assist in the monitoring the activities in the restaurant. They should be able to attend to customers and take care of customer needs in an ideal, respectable, and satisfactory manner without compromise to quality, standard and business integrity.
Identify Your Target Market
This is usually stated in the business plan. Each restaurant has a different target market, depending on the size and class you prefer. Moreover, you can start with the low class (i.e., the low-income earners) and expand the business as it becomes more profitable thereby serving the bigger class or high-income earners in the long-run.
Supply both Foodstuff and Drinks
Get wholesalers to constantly supply foodstuffs at the least market price. To make more gains, consider adding drinks to your restaurant menu. To reduce cost, you can decide to buy your foodstuff and drinks directly from the manufacturer and major dealers at the right price. This will help reduce your cost price and increase your profits.
This is one of the important parts of the business. In order to retain customers, you must cook the right type of food demanded by your customers and most importantly your food must be tasty and affordable. In all you do, make sure you master the method of cooking at least one continental meal as this will make your business more classy and when your customers know that you can also cook and serve continental dishes, they may want a personal order of your continental meals which of course don’t always come cheap.
The environment where you position your restaurant should be cool with the chairs and tables neatly arranged and clean with no form of stain(s) from leftover food around. The interior design of the restaurant should be appealing to customers with adequate lightning and ventilation in place. Use bright red colors where necessary to paint the walls of the restaurant, to stimulate the appetite.
Ensure that your food attendants are neatly dressed and that they have good customer service relations. While working in the kitchen, they should endeavor to cover their heads to avoid contamination of the cooked meal with germs possibly from their hairs. It is your duty to orient them on how to relate well with customers and how to respond to different types of clients so that they will not send them away with bad attitude.
Price of Food and Drinks
Keep customers happy by selling at fair rates with no reduction in quality of food and they’ll keep coming back.
You need to be known regardless of how best you cook and that is where marketing comes in. If people don’t know what you are selling, the business will fail. You can deploy an open marketing advertisement approach by placing a large sign post in strategic positions/areas in good-quality graphics prints displaying what you do.
Profit and Loss Analysis
You need to have basic accounting knowledge so that you can read and understand your restaurants’ yearly financial statements.
Just know that you have profit when sales less cost of goods sold. Your major task to continually make a profit is to make sure your sales increase daily. Apart from that, make sure as sales increases, the operating costs as well is monitored.
Difference Between a Profitable Restaurant And an Unprofitable One
A profitable restaurant must have the required characteristics in order to remain and be regarded as an elite restaurant and be profitable in its dealings.
These are the things that differentiate a profitable restaurant and an unprofitable one:
A profitable restaurant
- must have a good place
- is passionate about quenching the customer’s hunger and thirst problems
- recruits experienced staff
- manages its staff and administers the business in a professional way
- rewards staff with incentives to enable them to continue to improve on service delivery
- purchases foodstuffs, drinks, and other condiments at wholesale price and sells at a profit
- cooks quality food and serves chilled drinks always for customers satisfaction.
- makes sure its environment is attractive
- provides attendants with neat uniforms
- trains staff on how to serve customers
- listens to customer feedback
- corrects complaints immediately
- cooks food customers wants and high on demand.
Is the Restaurant Business truly a profit making business?
With the guidelines above for setting up and administrating a restaurant business, you can decipher the certain factors that differentiates a profitable one to the other. Therefore you can cook and serve your way to making millions in your business, reaching out to more and more customers on a daily basis.
Your business is as profitable as you want it to be and it being profitable depends on the good management team, marketing skills, happy staff, excellent customer services and the ability to keep your brand ahead from close competitors.