Common mistakes done by Restauranters.

HospiBuz Desk

Starting a restaurant of your own isn’t a cakewalk. It is a thrilling and exciting experience which can easily make or break your chances of success.  It is true that business can be tough and failures do happen and therefore a strong business plan is very necessary to open a restaurant. There are some mistakes which people do when they open a restaurant and these mistakes bring them to their downfall. 

Not having a Business Plan.

The biggest mistake done is not having a business plan and if you have then not writing it down is another big foolishness. A rough plan is never sufficient when opening a business. A full detailed plan is very necessary for a business. A good business plan highlights your weak points in the early stages of your business. How are you planning to run your restaurant is way too important therefore a good business plan is what you necessarily require for your business.

Not giving importance to the Location.

Location is something one should never compromise with. No matter how big is your reason is, a correct location is very important for your business. Choosing a location according to the concept of your business is very important. A good location is not as worth as a correct location in matters of business like opening a restaurant or QSR. Never force your concept in the location. Find a suitable location for your concept. Before finalizing your location, always keep in mind the kind of people you are targetting. This is something which helps in finding a perfect location for your business. Once a business started, it is impossible to change its location and so extra scrutiny is necessary while choosing a location.

Not being Market-centric.

Going too broad.

 Many times a restaurant fails because it can not fulfil everything it promised. Restaurant owner often has a mindset of “the more the better.” and they add to their menu choices. They think it will be appealing to the customers. Fewer menu choices presented in a good way and prepared perfectly is something which attracts the customers. A good experience is what a customer aspires for. Choice of your menu should also depend on the market you are targetting.

Not having a solid agreement.

It is very strange how people who run restaurants in partnership, don’t have a strong agreement. A restaurant business requires a huge amount of investment and can also face financial consequences, therefore, a legal agreement is very necessary when

you are opening a restaurant in partnership. Apart from this, the agreement should carry the responsibilities of each person. The issues come up either way and not having an agreement can result in conflicts and sometimes shutting down the business, so making an agreement is a must.

Marketing Strategy and Financial Planning

A good marketing planning is a key to success. It should be paid attention when opening a restaurant. It can bring new customers and can bring them again to your restaurant. Schemes and offers provided by restaurants attract customers.  A restaurant website is very necessary, digital marketing and social media are some of the tools which help in attracting customers.

Apart from this financial planning should be done correctly. A good amount of bank balance is very necessary to open a restaurant and to run it in its early stages. Contingency fund should always be kept aside in your budget to meet the unforeseen expenditure which sooner or later definitely arises. Working capital for day to day expenditure should never be less.

These are some of the things which should be kept in mind when opening a restaurant.