Start a Restaurant

Companies are booming one after another. An example of a successful industry is the business format franchise.

Most people believe that franchise businesses often pertain to food. The growth and success of various big and recognized fast food franchises is the reason behind this impression.

If you are a businessman thinking of franchising a restaurant, you must focus on the business and its characteristics you would like to invest in. The first step is to determine if this industry is appropriate for you. Amidst all the businesses you can venture in, make sure that the food industry is what will help you succeed.

There are tons of advantages to running a restaurant franchise, but there are also lots of challenges you must know before embarking in this business.

1. The demand

Since you are franchising a restaurant, customers are already familiar of what it offers. This is a good first step for your business. Now, it is your task to double check that what you provide can last. Customers must demand this product for a long period – meaning this is not a trend or a fad.

2. Track record of success

As a businessman, you must always be two steps ahead of your competitors. Get a food franchise that have numerous franchises and have already been providing services for some time. In that way, it already has a record.

3. Reputation

Customers often associate a glamorous perception to a businessman who owns a restaurant franchise. This is both a good and a bad thing.

Before franchising a restaurant, you must assess the following: (more…)

I figured I’d put up a some thoughts on what it is like to work in the restaurant biz in Manhattan since I did it for eight months. In one word: crazy. But seriously, restaurant work is really only for those people who are completely psycho. I was pulling 70-80 hours a week and most people would call that pretty weak for the restaurant biz. A lot of chefs start their careers working at 100 plus hours per week. Still, there is a culture about the restauranteurs that I met. It’s not work for them and to be honest, it never really felt like work for me either. The best part of the restaurant biz is the food and beverage culture that you get immersed in. For anyone who wants to learn a lot about food and not pay to learn, but instead be paid to learn, the restaurant industry is great. Of course, the price is the hours worked.

If you want to learn the restaurant biz in Manhattan, you have to start at the bottom. Ultimately, every restaurant is going to desire managers who can honestly say they’ve worked every position and know how things should be done because they’ve already done every job. In Manhattan especially, there’s the added obstacle that you really can’t start to be a waiter unless you learn to bus tables and be a runner. A runner is just someone who runs food from the kitchen to the tables, but doesn’t really interact with the customers. (more…)

Do you know the number one reason most restaurants fail within their first year of business?

They deserve it, that’s why.

I know that sounds harsh but you have to understand that when we come into your establishments, it’s because we’re choosing to pay for a dining experience we can’t get at home. Our expectations aren’t high -all we desire is a decent meal, a little service and the peace of mind that comes from knowing we don’t have to drag the shopvac up from the basement to clean under our children’s chairs. That doesn’t seem like too much to ask, does it?

Apparently it is. Lately, I find the only way to get through a terrible dining experience is to imagine myself eating in one of the seaside cafes depicted in the expensive murals that cover the walls. Many’s the time I’ve “disappeared” into a charming Italian villa by the sea while waiting for my missing waiter to reappear with the bill.

But I’m not here to just complain about the state of the restaurant industry or to encourage greater use of murals that showcase charming seaside communities to stimulate daydreaming as a means of overcoming unpleasant customer service experiences, I want to help – particularly those entrepreneurs considering whether or not they have what it takes to open a new restaurant.

So here are ten helpful tips from a seasoned diner to make sure your restaurant lasts longer than a Whoopi Goldberg talk show.

1. Always greet people when they enter your restaurant. Customers love this because it reinforces their belief that they are actually alive and can still be seen by others.

2. Customers appreciate it when a waitperson tells them their first name when they approach the table. This makes it much easier to seek additional support when their waiter or waitress disappears without a trace. “Have you seen Lance? We’re still down three entrees and about to draw straws to determine who’s going to plaster his picture on telephone poles.”

3. Most people consider a dining experience to be a positive one when their entrees all come out at the same time. The only exception to this rule is when you serve customers who view unsynchronized meal delivery as a wagering opportunity. (more…)

It’s really not hard to figure out which franchises are the most successful. You see them advertised on television and on billboards, hear them advertised on the radio, and cannot drive through a shopping center anywhere in the US without passing one or more of them.

Not only do you know who they are, you have probably been in some of them so many times that you know exactly what they have to offer. These franchises, in other words, have succeeded wildly in branding their products. What are they?

Franchise restaurants, of course. Anybody borne after 1955 probably cannot remember a world in which McDonald’s didn’t exist, and they were only the beginning. If you are one of the millions of people thinking about breaking away from the nine-to-five routine and starting your own business, you could do much worse than a franchise restaurant.

Why? Because given the choice of trying to establish a loyal customer base for a new, unfamiliar product of your own choosing, and going with a restaurant franchise with food already familiar and proven to keep the customers coming back, the odds are definitely on the side of the franchise restaurant.

The Pros and Cons

There are, of course, big risks in starting a restaurant of any kind. Only those people who have a genuine love for the business usually stick with it long enough to make a profit; while having a franchise restaurant may ease some of the concerns, there are some realities you need to face before you start.

First, buying a franchise restaurant can be very expensive; they can include actually buying the land on which you will build your operation. You may be able to get help with your financing from the franchisor, and banks also realize that a restaurant franchise is one of the less risky small businesses, so may be willing to give you favorable terms. (more…)

We all know that owning a franchise such as a Burger King franchise can be very profitable in the long term but is it that easy to run? The truth is no matter what franchise business you start, you will always be promised financial independence but in order to obtain that independence you’ll need to work for it. In many cases some people are not aware of what it takes to run a fast food restaurant which is why by reading the next three following facts you will have a good idea whether you are ready or not. In any case you will have learned valuable information here should you ever decide to join a franchise.

What Is Your Net Worth?

You have to remember a Burger King franchise is very popular and the profits can be very high but in order for the corporation to be profitable they need to charge the franchise buyers a very large amount. Unfortunately if you do not have a very high net worth you will probably not be eligible to own a Burger King restaurant. The reason why it is priced so high is because the branding is mostly done by the corporation so you get basically instant recognition once you set up the restaurant. The financial barrier is the biggest one because everything after that can easily be learned over time.

Managing The Restaurant

Because the Burger King franchise becomes yours when you buy it you will need to be able to manage it. In many cases management may be an issue because some of you may not have proper training but that’s fine because there are courses you can take and the Burger King Corporation offers support programs for those in need. Training includes everything from marketing, staff management to menus and much more. If you are willing to learn everything, you will be ensuring a successful business.

Having A Long Term View

Franchises are mostly long-term businesses and a Burger King franchise is no different so if you are expecting short-term results you better be an outstanding businessman. The reason why this is a long-term business is because the initial investment for such a restaurant is very expensive and you will probably have to use the first few years to cover your investment before making any profits. How long it takes to cover your investment depends on how good of a manager you are and how much you actually invested initially. If this is your first franchise, you also need to take into consideration everything you have to learn the first year so it might slow down business a little.

Whether you own a Burger King franchise or any other franchises you have to remember that it requires a lot of work at the beginning and you may be very disappointed by the results but if you keep it up, you can definitely to expect great results in the long term. Not everyone is suited for this business but if you are very disciplined and punctual you may have two of the most important criteria in order to manage your own business. Products, marketing, brand and other company goals can easily be learned or created but being disciplined and punctual are a habit that many cannot develop. (more…)

Why are there so many different restaurant type franchises available? It is interesting that franchises and restaurants seem to go together. Restaurants are a good business because there are 300 million people in the United States and they get hungry about three times per day. That is to say humans need to eat to survive. So it makes sense that if you are going to buy a franchise perhaps a restaurant franchise might be a good idea?

Have you considered a new career, perhaps a franchise? The restaurant business is not the easiest business in the world, but if it’s done correctly it can be a very consistent business. Of course any business including a franchise is a risk and there is no guarantee of success or profits. When you work in corporate America you get a paycheck and you know how much it will be, but in a franchise there is a chance you could even lose your investment or not make a profit for three years? That is a little scary to contemplate.

If you open your own franchise there is no guarantee of success either and well most restaurant proformas and limited partnership investments are troubling, I mean you have clauses which state total re-modeling in every ten years and all the costs of everyone, salaries, etc. Then the remodel costs 1-5 million? Oh well there goes your ROI. (more…)

More and more, those who have a desire to open a business of their own are finding that opening a restaurant franchise is very profitable. It is predicted that restaurant sales will reach $577 billion in sales by 2010. The restaurant business industry now employs 8% of all workers employed in the United States. That comes to about 11 million people, and makes them the largest employer next to the government.

Restaurants have been satisfying the hunger of people for ages, and restaurant franchising is around to add to the growth of the industry. In 1950, Colonel Harlan Sanders introduced his Kentucky Fried Chicken franchise and built a chain of over 600 restaurants by 1960. McDonalds was franchised in 1955, and so were House of Pancakes, Tastee Freeze, Dairy Queen, and Dunkin Donuts.

Baby boomers (people born between 1946 and 1964) are often the folks opening new restaurants and fast food establishments. They have sophisticated tastes and the money to make their ideas a reality. They demand fresher ingredients, healthier dishes, and vegetarian options. Baby boomers are credited with setting the pace for what does and doesn’t work when it comes to successful restaurants. When they dine out they want high quality, no matter where they are eating.

More and more people are holding full time jobs, leaving little time to prepare meals at home. Quick serve restaurants continue to be fueled by the consumer’s ever increasing need for convenience. More than half of all adults say they are busy, and convenience is a critical part of their lives.

While older consumers demand quality, younger customers want convenience. 55% of consumers between the ages of 25 and 34 admit they are usually in a hurry and want fast service. This sparks the growing need for quick service restaurants. Takeout restaurants are also a growing trend. 78% of all households in the United States use take out or delivery service at least once a month. These people consider themselves very value conscious. (more…)

Restaurant and fast food franchising is a booming sector presently. Fast food franchising is considered to provide the maximum revenue in the total food service industry, but franchising in full-service restaurants also contributes quite a bit to the economy. In one sense, franchising indirectly implies rise in the employment in a country.

Franchisers have the option to provide more than the service expected by the customer. This includes customized orders that can be taken care of by the chefs. Restaurants that provide the buffet style food can provide the patrons with various options while paying considerable lesser than the actual individual costs of the items.

Fast food restaurants have streamlined operations with a very wide network. This ensures the quality of the food to remain perfect along with excellent service in all the franchisees because of the extensively trained staff. Even quick service restaurants that deal with only sandwiches can seem to be an excellent place either to just hang out or have a leisurely meal at nominal prices in a known neighborhood because of all the franchisees. However, the fast food restaurants might face problems when dealing with franchisees abroad. This might require extensive research whether raw materials can be found in that country and whether keeping a control on the staff from long distance would be a possible. (more…)

Given the wide and across prevalence of Internet in day-to-day life, exploitation of the media is imperative according to good business sense. Those who fail to act in time in the business arena, can never out do competition and may even succumb to the pressure of changes. Good business sense dictates cutting across the clutter and acting smart first.

Online Food Ordering System is one such concept that can help your restaurant in numerous ways. Customer convenience is a top priority for restaurants and online food ordering system is the order of the day for any restaurant that wishes to keep its customers happy and satisfied. Online Food Ordering system lets you receive food orders from your customers online, communicated to you through emails.

The system is highly desirable as it promises expansion of customer base beyond the offline constraints. Logically flow in more sales and, in turn, more profit.

With more and more eating joints cropping up, the market scene for you is turning all the more hostile. Under the circumstances, you cannot afford to follow the beaten track of pamphlet distribution. Thinking over the utility of pamphlets, flyers and brochures, you may come across substantial number of instances wherein your paper ad often becomes an addition to the garbage box without a second thought. Many a times, it is because the target customer even fails to spot the pamphlet and it flies here and there with the rest of the dry leaves and dust. Printing of pamphlets costs you significant budget that does not yield relatively lucrative results.

Sporting a website installed with an efficient online food ordering system allows you to stand out and can do wonders to your public image and help you promote your business substantially. (more…)

One very important fact about the restaurant industry, is the fact that you absolutely need to keep consistent portion control. Ingredients are purchased in weight, count and volume. You will need to calculate the cost of all ingredients in a recipe. Total the costs and divide this by the food cost you want to charge for a menu item. This way you will have a price for your menu for this item.

In the restaurant industry, you will need to count all ingredients. As an example, a cheese burger with tomato, lettuce, and mustard on a wheat bun with a small bag of potato chips has a total cost of $2.10. If you want to get a 30% food cost for this item, you will need to divide $2.10 by 30 % (.30), which will give a menu price of $7.

Try to keep your food costs between 22 and 34%. If your food cost is 22%, it will mean you will be spending 22 cents of every dollar for food. This would leave you 88% of every dollar to cover labor and other expenses.

If you want to use the factoring method, you can multiply the cost of ingredients by three. This will only give you the cost of the menu item and not include other costs.

When you use gross margin pricing, the formula is profit minus the cost of goods sold divided by the net sales. For instance a gross profit margin of 33:1 means that for every sales dollar, you will have 33 cents to cover other expenses. This is the best for calculating a dish with a high ingredient cost in the restaurant industry.

The Prime Cost method works by adding the cost of labor and cost of food, then add a percentage for profit. This method is good in the restaurant industry for dishes that need a lot of preparation.

Competitive Pricing matches what other restaurants charge for the same product, with what you charge. Compare the prices by studying the menus, and price your product not much higher or lower than what others are charging. (more…)