Wait, Where are You Opening A Restaurant?
Wednesday April 23, 2008
I have said it before and I will continue to say it again…and again…and again. Location, people! It is all about location. Yet I know that there are people who aren’t reading this blog (pity the fool, as MR. T would say) because I continue to see restaurants popping up in awful locations.
Case in point: A little burrito joint is getting ready to open in my small, rural Maine town. Now, I like the Mexican idea. It is new niche in our area (we do not count Taco Bell as Mexican food here) and has the potential to expand and grow. I know this because I have researched opening my own Mexican restaurant.
This particular burrito eatery is located on the west side of town, which was once a thriving neighborhood of its own, but is now a run down span of half filled buildings. Strike One. I am guessing the rent was cheap.
There is no parking except right in front of the building. Strike Two. Now, there is a public parking lot across the street, but it is just far enough away to be a nuisance to walk to and from your car in cold or inclement weather. Parking is an especially big issue in Maine. We like to walk in the woods, along our beaches and through our parks. But we don’t like to have to walk far to eat. Unfortunately parking is often overlooked when choosing for a location for a new restaurant.
I hear the place is only doing take-out. Strike Three. This is just a rumor. I am waiting for the place to open to confirm it. I hope they are planning to offer some sit down service. Otherwise, they will be missing the most obvious opportunity to expand their products to a wider market.
I speak from painful and costly experience when I talk about the importance of a restaurant’s location. Just because a building is beautiful and/or cheap, doesn’t mean it will be a successful restaurant. But I also understand you have to take a gamble in this business. If we all waited for the perfect place & time to open a new restaurant, there would be a lot of hungry people in the world.
Wednesday, October 28, 2009
CHOOSING A RESTAURANT NAME
Choosing a restaurant name is as important as deciding what type of food you are going to serve. A good restaurant name is easy to remember and easy to spell. It may reflect your restaurant’s theme, its location or simply be a play on words. The important thing to consider when choosing a restaurant name is the impression it will leave on customers.
Naming a Restaurant After a Location
Often times naming a restaurant is simple. The owners take a cue from their restaurant’s location. For example, our restaurant is located in the former boiler room of an old New England shoe factory. Because of this historic link, we decided to call the restaurant simply The Boiler Room Restaurant. It is easy to remember and most of the locals know that it refers to the old shoe shop. Tourist’s passing through love that is was once part of an old factory.
The French Laundry, in Napa Valley, California is one of the countries most esteemed restaurants. Its name stems from the fact the restaurant building once housed a French steam laundry during the 19th century. The building was also once a brothel, but the restaurant owners wisely stayed away from incorporating that name.
Reflecting a Theme in a Restaurant Name
Choosing a restaurant name can also come from a theme or menu. Chinese restaurants do this perfectly, with names like Jade Palace, Fortune Fountain, and The New Great Wall. Each of these restaurant names let customers know that they serve Chinese food. Avoid calling your restaurant an ethnic name if you are serving a different type of menu. For example, if you are serving authentic Mexican food, calling the restaurant Giovanni’s will confuse your patrons, who may think you serve Italian food.
Adding a Personal Meaning to a Restaurant Name
Opening a restaurant is like having another child in many ways. Sometimes a restaurants name is a reflection of the owner’s name or someone dear to them. Wendy’s founder, Dave Thomas, named his restaurant concept after his daughter. Perhaps your grandmother influenced your joy of cooking, so you might name your restaurant after her. What ever the meaning behind your restaurant’s name, be prepared to share it with the public, who love a good story.
Restaurant Name With a Play On Words
Paula Deen’s first restaurant business was called The Bag Lady, because she and her sons went around delivering bagged lunches to local businesses. This is a great example of playing with words. Fun restaurant names that have nothing to do with food are usually easy to remember, and pass on by word of mouth. Celebrity chef Wolfgang Puck called his earliest restaurant Spago, (Italian slang for spaghetti.) Little in the name would tell you that it serves a fusion of Mediterranean and California cuisine, with a specialty in wood-fired pizzas. It’s just a great restaurant name.
Avoid Trademarked Restaurant Names
If your last name happens to be McDonalds, don’t call your restaurant that. You are just asking for trouble (ditto if your last name is Taco Bell, Burger King or Jack In The Box.) It may seem like a harmless gesture to name a restaurant something similar to an already established chain, but you’ll be asking for potential legal troubles.
Naming a Restaurant After a Location
Often times naming a restaurant is simple. The owners take a cue from their restaurant’s location. For example, our restaurant is located in the former boiler room of an old New England shoe factory. Because of this historic link, we decided to call the restaurant simply The Boiler Room Restaurant. It is easy to remember and most of the locals know that it refers to the old shoe shop. Tourist’s passing through love that is was once part of an old factory.
The French Laundry, in Napa Valley, California is one of the countries most esteemed restaurants. Its name stems from the fact the restaurant building once housed a French steam laundry during the 19th century. The building was also once a brothel, but the restaurant owners wisely stayed away from incorporating that name.
Reflecting a Theme in a Restaurant Name
Choosing a restaurant name can also come from a theme or menu. Chinese restaurants do this perfectly, with names like Jade Palace, Fortune Fountain, and The New Great Wall. Each of these restaurant names let customers know that they serve Chinese food. Avoid calling your restaurant an ethnic name if you are serving a different type of menu. For example, if you are serving authentic Mexican food, calling the restaurant Giovanni’s will confuse your patrons, who may think you serve Italian food.
Adding a Personal Meaning to a Restaurant Name
Opening a restaurant is like having another child in many ways. Sometimes a restaurants name is a reflection of the owner’s name or someone dear to them. Wendy’s founder, Dave Thomas, named his restaurant concept after his daughter. Perhaps your grandmother influenced your joy of cooking, so you might name your restaurant after her. What ever the meaning behind your restaurant’s name, be prepared to share it with the public, who love a good story.
Restaurant Name With a Play On Words
Paula Deen’s first restaurant business was called The Bag Lady, because she and her sons went around delivering bagged lunches to local businesses. This is a great example of playing with words. Fun restaurant names that have nothing to do with food are usually easy to remember, and pass on by word of mouth. Celebrity chef Wolfgang Puck called his earliest restaurant Spago, (Italian slang for spaghetti.) Little in the name would tell you that it serves a fusion of Mediterranean and California cuisine, with a specialty in wood-fired pizzas. It’s just a great restaurant name.
Avoid Trademarked Restaurant Names
If your last name happens to be McDonalds, don’t call your restaurant that. You are just asking for trouble (ditto if your last name is Taco Bell, Burger King or Jack In The Box.) It may seem like a harmless gesture to name a restaurant something similar to an already established chain, but you’ll be asking for potential legal troubles.
BEFORE YOU OPEN A RESTAURANT
Before you open your own restaurant there are many aspect that need to be addressed, to assure success. Here’s a list of available resources to help you in your new restaurant start-up.
Deciding if Owning a Restaurant is Right for You
Restauranting is hard work. It may seem glamourous and fun, but it all boils down to hard work. Ask anyone in the food business, and they will tell you about long hours they put into it. It’s important to understand all the various jobs that are involved in running a restaurant. From bookkeeping, to cooking to PR, as the owner you are responsible for it all.
* Is Owning a Restaurant Right for You?
* Five Restaurant Myths
* What it's Really Like Being a Restaurant Owner
Deciding on a Restaurant Concept
Deciding what type of restaurant you want to open will depend of a variety of things. Often times people who want to open their own restaurant want to serve food they like to cook, in an atmosphere they feel comfortable in. Other people are interested in Franchising. Restaurant franchises offer a number of benefits, including instant name recognition and built-in marketing. However, many restaurant franchises don't come cheap and owners must be willing to follow a stringent set of rules.
* Franchise vs. Independent Restaurants
* How to Become a Franchisee
* Types of Restaurants
Choosing a Location for Your Restaurant
Location is vital to the success of any restaurant. There are several factors to consider when searching for that perfect restaurant location, including population base, local employment figures and accessibility. Once you find that perfect location, you will need to make sure you negotiate the best lease possible for your restaurant.
* Finding the Perfect Location
* How to Determine Population Base
* How to Negotiate a Lease
Writing a Business Plan
To prepare for your interview with the bank, you need to do your homework. Creating a business plan that outlines your restaurant and how you plan to make it profitable, will show the loan officer you mean business. Also make sure you arrive at the bank with all the necessary paperwork, including personal income statements, tax returns and anything else the banker ask you for.
* Why You Need a Business Plan
* Writing a Restaurant Business Plan
* Get Ready For Your Bank Interview
Finding the Perfect Restaurant Name
Restaurant names may reflect a theme (Mexican, Chinese, Continental), a location, or simply be a play on words. The important thing to consider is the impression it will leave on customers. Select a name that will be easy to customers to remember and spell. Nothing is more frustrating than not being able to find a restaurant online or in the Yellow Pages because you aren't spelling it correctly.
* Choosing a Restaurant Name
* Restaurant Names That Inspire
Writing the Menu
Your menu is a huge part of your restaurant. After all, it is essentially why your customers keep coming back. They love the food. The layout and design is just as important as what’s listed on the menu. Avoid amateur looking menu designs, such as clip art or photocopied handwriting. Finally, knowing how to price the menu will help increase your profit margins, giving you more money to invest into your restaurant.
* How to Price Your Menu
* Menu Design
* Tips for Writing a Restaurant Menu
Staffing Your Restaurant
Hiring the right staff is crucial to any new restaurant. Good food loses much of its appeal if it accompanied by bad service. Knowing the basic employee roles of the back of the house and the front of the house will help you select the best candidate for the job. Experience counts for important positions, such as head cook, dining room manager and bartender.
* Hiring for Front of the House
* Back of the House Positions
* Five Rules Every Restaurant Owner Should Know
Equipping Your Restaurant
Outfitting your restaurant kitchen, dining room and bar is the largest part of your start up budget. Shop around for bargain deals of used equipment and leased equipment. Also understanding needs vs. wants is important in avoiding the pitfalls of buying unnecessary furniture and equipment, which can set you way over budget. Begin with the basics, and once you have those you can pick up a few extras.
* Five Tips for Stocking Your Restaurant
* Why You Need a POS System
* Benefits of Leased Equipment
Deciding if Owning a Restaurant is Right for You
Restauranting is hard work. It may seem glamourous and fun, but it all boils down to hard work. Ask anyone in the food business, and they will tell you about long hours they put into it. It’s important to understand all the various jobs that are involved in running a restaurant. From bookkeeping, to cooking to PR, as the owner you are responsible for it all.
* Is Owning a Restaurant Right for You?
* Five Restaurant Myths
* What it's Really Like Being a Restaurant Owner
Deciding on a Restaurant Concept
Deciding what type of restaurant you want to open will depend of a variety of things. Often times people who want to open their own restaurant want to serve food they like to cook, in an atmosphere they feel comfortable in. Other people are interested in Franchising. Restaurant franchises offer a number of benefits, including instant name recognition and built-in marketing. However, many restaurant franchises don't come cheap and owners must be willing to follow a stringent set of rules.
* Franchise vs. Independent Restaurants
* How to Become a Franchisee
* Types of Restaurants
Choosing a Location for Your Restaurant
Location is vital to the success of any restaurant. There are several factors to consider when searching for that perfect restaurant location, including population base, local employment figures and accessibility. Once you find that perfect location, you will need to make sure you negotiate the best lease possible for your restaurant.
* Finding the Perfect Location
* How to Determine Population Base
* How to Negotiate a Lease
Writing a Business Plan
To prepare for your interview with the bank, you need to do your homework. Creating a business plan that outlines your restaurant and how you plan to make it profitable, will show the loan officer you mean business. Also make sure you arrive at the bank with all the necessary paperwork, including personal income statements, tax returns and anything else the banker ask you for.
* Why You Need a Business Plan
* Writing a Restaurant Business Plan
* Get Ready For Your Bank Interview
Finding the Perfect Restaurant Name
Restaurant names may reflect a theme (Mexican, Chinese, Continental), a location, or simply be a play on words. The important thing to consider is the impression it will leave on customers. Select a name that will be easy to customers to remember and spell. Nothing is more frustrating than not being able to find a restaurant online or in the Yellow Pages because you aren't spelling it correctly.
* Choosing a Restaurant Name
* Restaurant Names That Inspire
Writing the Menu
Your menu is a huge part of your restaurant. After all, it is essentially why your customers keep coming back. They love the food. The layout and design is just as important as what’s listed on the menu. Avoid amateur looking menu designs, such as clip art or photocopied handwriting. Finally, knowing how to price the menu will help increase your profit margins, giving you more money to invest into your restaurant.
* How to Price Your Menu
* Menu Design
* Tips for Writing a Restaurant Menu
Staffing Your Restaurant
Hiring the right staff is crucial to any new restaurant. Good food loses much of its appeal if it accompanied by bad service. Knowing the basic employee roles of the back of the house and the front of the house will help you select the best candidate for the job. Experience counts for important positions, such as head cook, dining room manager and bartender.
* Hiring for Front of the House
* Back of the House Positions
* Five Rules Every Restaurant Owner Should Know
Equipping Your Restaurant
Outfitting your restaurant kitchen, dining room and bar is the largest part of your start up budget. Shop around for bargain deals of used equipment and leased equipment. Also understanding needs vs. wants is important in avoiding the pitfalls of buying unnecessary furniture and equipment, which can set you way over budget. Begin with the basics, and once you have those you can pick up a few extras.
* Five Tips for Stocking Your Restaurant
* Why You Need a POS System
* Benefits of Leased Equipment
BUSINESS PLAN IN ANOTHER STYLE
A business plan is especially helpful to those new to the food/restaurant industry. As you research information for your restaurant business plan, you may encounter problems you hadn’t considered previously, such as licensing, health codes and tax laws.
Most business plans have the same general parts, but some sections of your plan should be geared specifically to the restaurant industry. Here is a break down of all the necessary parts of a restaurant business plan.
1. Executive Summary- Start out with an overview of your entire business plan. Think of it as your introduction. Make it interesting, to keep your readers attention. Here are some tips for writing an executive summary geared toward a restaurant business plan.
• You want to give the reader (a potential investor) the basics of your business idea. What is the style of your new restaurant, the name, the location?
• Explain why you are well suited for this restaurant venture. Do you have previous cooking experience in restaurants? If not, do you have any experience in the restaurant business? If the answer is no, then you need to tell them on the idea that despite your lack of experience, you are still the perfect person for this new restaurant business.
2. Company Description – This part of a business plan is sometimes referred to as a business analysis. It tells the reader the location, legal name and style of restaurant you want to create. This is where you get detailed and explain your local competition, population base, and other information you have gathered during your research.
3. Market Analysis- This part of restaurant business plan is sometimes referred to a marketing stategy. There are three parts to a market anaysis:
• Industry- Who are you going to be serving? Is your restaurant going to cater for the older folks at lunch time? Single professionals at dinner? Families with young children? Explain your customer base and why they are going to flock to your new restaurant, not your competitors.
• Competition- Who is your competition? Many people opening a new restaurant assume everyone will prefer their new establishment to the existing competition. Don’t undermine the other restaurants. They already have a loyal customer base, and luring customers from that base is not always easy. Find out as much as you can about your competition, including their menu, hours and prices. Then explain in a paragraph or two how you will compete with the already established businesses.
• Marketing- What methods do you plan to use to promote your restaurant? How are you going to target your core audience? Perhaps you will offer a kids eat free night, or free lunch delivery to local offices. What is going to set you apart from your competition? Give specifics on how you plan to advertise (newspaper, TV commercials, ect…)
4. Business Operation- Sometimes referred to as Products and Services. This is where you tell investors about your hours and how many employees you plan to hire. Here is where you explain the benefits of your establishment for customers, such as its convenient downtown location, or its close proximity to the local interstate exit. This is also a good place to mention any close ties you have to local restaurant vendors, such as food supply companies or local farms that will give you a competitive edge.
5. Management & Ownership- Who is going to run the ship? Are you going to be the general manager, bookkeeper, head cook and bartender? If so, how are you going to do it all? Many new restaurant owners either hire a general dining room manager or a kitchen manager (but usually not both). Explain who is going to do what, including any potential employees whom you feel will be a great benefit to your new restaurant.
6. Funding - Now the sticky part of a restaurant business plan. How much is this stellar business plan going to cost? Here you want to list the projected growth of your new restaurant. You should include a profit and loss statement that projects how much are you going to spend vs. how much you are going to make. This is a good time to once again point out all the great aspects of your new restaurant. Other items you should include in your funding report include:
Most business plans have the same general parts, but some sections of your plan should be geared specifically to the restaurant industry. Here is a break down of all the necessary parts of a restaurant business plan.
1. Executive Summary- Start out with an overview of your entire business plan. Think of it as your introduction. Make it interesting, to keep your readers attention. Here are some tips for writing an executive summary geared toward a restaurant business plan.
• You want to give the reader (a potential investor) the basics of your business idea. What is the style of your new restaurant, the name, the location?
• Explain why you are well suited for this restaurant venture. Do you have previous cooking experience in restaurants? If not, do you have any experience in the restaurant business? If the answer is no, then you need to tell them on the idea that despite your lack of experience, you are still the perfect person for this new restaurant business.
2. Company Description – This part of a business plan is sometimes referred to as a business analysis. It tells the reader the location, legal name and style of restaurant you want to create. This is where you get detailed and explain your local competition, population base, and other information you have gathered during your research.
3. Market Analysis- This part of restaurant business plan is sometimes referred to a marketing stategy. There are three parts to a market anaysis:
• Industry- Who are you going to be serving? Is your restaurant going to cater for the older folks at lunch time? Single professionals at dinner? Families with young children? Explain your customer base and why they are going to flock to your new restaurant, not your competitors.
• Competition- Who is your competition? Many people opening a new restaurant assume everyone will prefer their new establishment to the existing competition. Don’t undermine the other restaurants. They already have a loyal customer base, and luring customers from that base is not always easy. Find out as much as you can about your competition, including their menu, hours and prices. Then explain in a paragraph or two how you will compete with the already established businesses.
• Marketing- What methods do you plan to use to promote your restaurant? How are you going to target your core audience? Perhaps you will offer a kids eat free night, or free lunch delivery to local offices. What is going to set you apart from your competition? Give specifics on how you plan to advertise (newspaper, TV commercials, ect…)
4. Business Operation- Sometimes referred to as Products and Services. This is where you tell investors about your hours and how many employees you plan to hire. Here is where you explain the benefits of your establishment for customers, such as its convenient downtown location, or its close proximity to the local interstate exit. This is also a good place to mention any close ties you have to local restaurant vendors, such as food supply companies or local farms that will give you a competitive edge.
5. Management & Ownership- Who is going to run the ship? Are you going to be the general manager, bookkeeper, head cook and bartender? If so, how are you going to do it all? Many new restaurant owners either hire a general dining room manager or a kitchen manager (but usually not both). Explain who is going to do what, including any potential employees whom you feel will be a great benefit to your new restaurant.
6. Funding - Now the sticky part of a restaurant business plan. How much is this stellar business plan going to cost? Here you want to list the projected growth of your new restaurant. You should include a profit and loss statement that projects how much are you going to spend vs. how much you are going to make. This is a good time to once again point out all the great aspects of your new restaurant. Other items you should include in your funding report include:
POPULAR QUESTIONS ABOUT OWING A RESTAURANT
1. How do I get a loan to open a restaurant?
Financing is often the biggest obstacle when trying to open a new restaurant. With a high failure rate, banks are not always eager to dole out hundreds of thousands of dollars to would-be restaurateurs. To help get an initial loan for financing, you should start with a through restaurant business plan. A business plan is a blueprint for success. It helps identify your core customer base, examine your competition and create a budget. More on Restaurant Business plans.
2. How do I choose a restaurant location?
Location, location, location. It can make or break a restaurant. If no one can find your restaurant, it doesn’t matter how great your food and service are. Before you settle on any location first examine the area population base, to determine if there are enough potential customers in the area. Another indicator of a good location is the other businesses in the area. Is the restaurant location in a thriving downtown or is it more like a forgotten ghost town. More about choosing the right restaurant location.
3. How long of a lease should I sign if I am renting my restaurant location?
Start with a year long lease, two years at the most. Any longer and you can run into serious legal trouble with your landlord if you can’t make rent. A year to two years will give you more than enough time to determine if the location is a good choice for a restaurant. More on negotiating a restaurant lease.
4. How do I choose a restaurant name?
Naming a restaurant is like naming a child; it should be given careful consideration. A restaurant name can reflect its location, theme, or local history. It can be play on words, like The Bag Lady (Paula Deen’s first catering business). More about choosing the perfect restaurant name.
5. Should I buy new or used restaurant equipment?
It depends on the piece of equipment and how used it is. Some commercial kitchen equipment have short life spans, like ice makers, and are better suited to leasing or buying new with a warranty. Other pieces of kitchen equipment, like gas ranges, are like dinosaurs that live forever with minimal repairs and can be bought used with confidence. More about buying new and used equipment.
Financing is often the biggest obstacle when trying to open a new restaurant. With a high failure rate, banks are not always eager to dole out hundreds of thousands of dollars to would-be restaurateurs. To help get an initial loan for financing, you should start with a through restaurant business plan. A business plan is a blueprint for success. It helps identify your core customer base, examine your competition and create a budget. More on Restaurant Business plans.
2. How do I choose a restaurant location?
Location, location, location. It can make or break a restaurant. If no one can find your restaurant, it doesn’t matter how great your food and service are. Before you settle on any location first examine the area population base, to determine if there are enough potential customers in the area. Another indicator of a good location is the other businesses in the area. Is the restaurant location in a thriving downtown or is it more like a forgotten ghost town. More about choosing the right restaurant location.
3. How long of a lease should I sign if I am renting my restaurant location?
Start with a year long lease, two years at the most. Any longer and you can run into serious legal trouble with your landlord if you can’t make rent. A year to two years will give you more than enough time to determine if the location is a good choice for a restaurant. More on negotiating a restaurant lease.
4. How do I choose a restaurant name?
Naming a restaurant is like naming a child; it should be given careful consideration. A restaurant name can reflect its location, theme, or local history. It can be play on words, like The Bag Lady (Paula Deen’s first catering business). More about choosing the perfect restaurant name.
5. Should I buy new or used restaurant equipment?
It depends on the piece of equipment and how used it is. Some commercial kitchen equipment have short life spans, like ice makers, and are better suited to leasing or buying new with a warranty. Other pieces of kitchen equipment, like gas ranges, are like dinosaurs that live forever with minimal repairs and can be bought used with confidence. More about buying new and used equipment.
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