Start a Restaurant

Bob Parks’ personal notes on Let’s open a restaurant to maximize profits: With additional valuable insights by noted restaurateurs and hospitality personalities

New award program highlights the use of rigorous research in developing successful corporate practices

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As the lead for the new Student Corner at HospitalityEducators.com, helping hospitality students be better prepared in starting their professional careers is a priority. This is the first of a series of ‘Hospitality Conversations’ exploring different internship programs available to hospitality students.

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Getting funding for a restaurant this year of 2008, is definitely harder on a national level is more difficult then ever before.

Why You Will Find It Difficult To Get A Loan

Unfortunately bank loan officers do not like to do restaurant financing! This year of 2008 is a very tough year, foreclosure rates the highest ever in the history of the United States, a credit crunch due to the mortgage crisis, lenders cherry picking their loans, even denying borrowers with good credit.

So as if the food and hospitality industry was not already difficult for getting restaurant loans, it is much more harder to get loans then ever before due to the recession that is happening currently around major cities in the united states, gas prices going off the roof creating a domino effect in many many industries, consumers not spending as much, going out less due to super high gas prices.

Restaurant failure is the main reason why bankers are Leary of lending money to a new start up restaurants, if the borrower applicant does not have a proven track record in the food and hospitality business.

Success for food service businesses is viewed by bankers as minimal. Their hesitation is due to higher failure rates in the industry for new restaurant owners with no experience opening a restaurant. Unless you have enough collateral to make the loan risk free, banks will usually not approve your loan. This belief is not well founded, since the data is skewed, therefore, it is not accurate and hurts you when you apply for a loan.

Traditional money lending institutions are Leary of lending money to a new restaurant, if a the borrower applicant does not have a proven track record in the food and hospitality business.

What Can You Do To Increase Your Chances Of Success With Your Restaurant

Restaurant Consultants — Set aside some money from your working capital to consult with one. They will help maximize your chances for restaurant success and minimize your chances for restaurant failure; this is the main reason to to speak to a restaurant consultant.

Restaurant Training — Seek out those companies that provide restaurant training

Restaurant Marketing — Become an expert in restaurant marketing, consult with someone who will help you create a great restaurant marketing plan. Implement a moving targets and birthday marketing campaign to generate immediate cash for your restaurant, which you can find out more info with the author of this article.

Restaurant Management Training — Seek a company that will train your restaurant manager.

Restaurant Accountants — Seek out CPA accountants that specialize with restaurant accounting software and restaurant accounting systems.

Restaurant Floor Plan – Warning, pay attention to how you layout the front, back, kitchen area! Could cause to lose profits if you do implement a good efficient cost effective floor plan.

What Are Your Restaurant Funding Options & Sources

Soliciting partners

* Selling stock
* Venture capital
* SBA
* Loans from relatives
Insurance policies cash values
* Credit from food suppliers
* Personal savings
Collateralized loans from your personal assets
* Credit from equipment suppliers

Up till now if you are having problems getting financing for your existing restaurant, your options were limited. There is a product called the business cash advance or merchant cash advance that is a possible solution to you when you find yourself being turned down for restaurant funding.

Copyright@2008

Author: Edwin De Leon
Article Source: EzineArticles.com
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If you are thinking of opening up your own restaurant motivated by the prospect of a great atmosphere, wonderful food and drink and healthy profits, perhaps you should know that there is a lot of groundwork to do before you can hope to open your doors to the buying public.

Two of the main considerations are location and competition. You need to consider how desirable your restaurant will be in a particular area, and that can also depend on what type of restaurant you are thinking of opening. Just because there’s no Italian restaurant where you live, it doesn’t mean that it would be an automatic success. It could be that people just don’t like eating that kind of food in that location. (more…)

If you’re just starting a restaurant, finding a reliable supplier of restaurant equipment and materials is critical to the success of your business. If you’re not careful, you could spend more on supplies than is necessary. To control your expenditure and still get great deals on restaurant supplies, here are tips you can use:

Buy in bulk

Buying in bulk may seem intimidating but it will save you a lot of money in the long run. Some of the best restaurant supplies deals you’ll find are those that are offered through bulk purchases. If you become a regular buyer, you might even get huge loyalty discounts.

Purchase only supplies with the NSF sticker

NSF stands for the National Sanitation Foundation, which certifies kitchen and restaurant supplies for efficiency and food preparation safety. (more…)