Unique Restaurant Business

Before meeting with or hiring anyone, create a business outline for yourself. List all the items that pertain to the type of restaurant you plan on opening. Include the cost for each item.

This is a good guideline. It will help you to determine if the type of restaurant you plan to open is right for you.

A well-detailed list will easily turn into a business proposal when seeking financing for your project.

Get informed, get references and stay organized.

In order to start on any project you need to be aware of costs involved in the design, construction and operating of a business. Do research. Find out as much as you can.

Visit existing restaurants and watch the daily operation.
If possible speak with the owner. They may be willing to discuss with you how they got started in this business.

Contact a restaurant association close to your area. They can direct you to many resources related to the restaurant business.

Contact a commercial kitchen equipment supplier. You are required to use commercial equipment in a restaurant. Find out the cost involved. Find a name in your phone book, or sources at the library or on the Internet.

Contact a local interior designer or firm to get an approximate idea of design fees. Do the same for construction costs. Contact a local general contractor. Make sure you are contacting those specializing in restaurant work and not residential or office projects.

Have an approximate square footage and brief description ready when you call.
For instance: Approx. 1,500 square feet – new space (no demolition or renovation) Fast food, take-out business with a small countertop area for stools to seat six.
Or whatever applies in your case.

You will probably receive an estimate square footage price. Sometimes an approx. total figure may even be given.

Location

The next step is to focus on finding a location. The location you chose is directly related to the type of restaurant you open.

You may be considering a leased space in a complex such as a mall. It may be a leased street location. Find out the lease amount and what the landlord is providing for this space. If it is a building that you own, determine the renovation, maintenance and utility costs.

Take the time and study the location. Who are the people that use the complex or street? Will your menu appeal to them? What is the competition? Are there many restaurants in the area? Is it better to have a quick turn around of people eating and leaving? Or is it more profitable to have your customers linger but pay a little more service? Determine what type of food service business best suits this location.

Keep in mind that a small space may not be functional or profitable. The lease, building and maintenance costs will be higher for a large space.

Set Up Cost

As with any business, certain items need to be in place for opening day. Depending on the type of restaurant these items and costs will vary. For example, printed menus are required for sit down dining. So are plates, bowls, cutlery, etc. Make a list pertaining to your specific project. Research the cost for each item.

Promotion of your restaurant business is important.
Well before your opening date, you should advertise. Perhaps it is in newspapers or on a local radio station. Pamphlets, flyers and coupons for mail, or door-to-door distribution are another good system. Choose a method that suits your project. Contact the appropriate company to get a cost estimate. You definitely want to ensure that everyone knows about the opening of your restaurant.

List all start up components involved and put a dollar figure next to each one.

Business Plan

You have done your research. Now you are ready to prepare an outline about your business. Your business plan will help you to develop a direction for your restaurant project.

Your outline should include at least the following items with as much detail as possible about each category. Specify if each cost is an estimate or firm figure.

- Location, square footage, leased or owned
- The type of restaurant
- The design fee
- The equipment cost
- The construction cost
- The type of food and cost to buy
- The set up cost
- The daily operation costs

Also make a clear note about which items will be directly supplied by you. If the equipment is to be included in the construction cost, supplied and installed by the contractor make this a clear notation.

Preparing an outline for yourself will give you a good overall perspective on your project.

At this point you may decide to reconsider the type of restaurant you want to open. That is ok. This is what gathering information is all about. You must feel comfortable with the overall cost of your project.
Once you have made your decisions, you will have established a budget.

To use this outline at a financial institution or other source, present it in a professional manner. Find out what other information is required by arranging an informal meeting with this party. It may be necessary to obtain written price quotations from companies. When you are ready, present your proposal in a folder or binder. Type all pages, clearly describing the project and all related data.

When everything is in place, your interior designer will also need to know your parameters. The exact size of the space, location, the specific food, your budget allowance and so on. With this information the designer can produce an appropriate restaurant design that is functional, creative and meets your budget. You want the end result to be a design that you can afford to build.

References

Before hiring anyone, get references. Always meet with the person or company you intend to hire. This applies to the interior designer, the contractor, etc. It is important that you feel comfortable and confident working with them.

Ask for a list of a minimum of six local references. Phone each one of them. Ask many questions. You should be able to contact a minimum of four. It is possible one or two of the six may not be available for whatever reason.

If your project happens to be a large restaurant involving a lot of money, get a minimum of ten references. Contact at least eight.

Arrange to see at least four completed projects in person. Review the design at the places referred by the interior designer. Decide if the design style is creative enough or too creative for your needs. Inspect the quality of the work at the places provided by the contractor. Make sure the general contractor will provide a license of certification of all trades working in on your restaurant. Verify that the contractor is insured and that his work is guaranteed.

Checking references will ensure that you have hired a reliable person or company for the job.

Once you have made your decision to hire, get a signed contract.

Get A Contract

Always get a signed contract regardless if your project is big or small. The interior designer you hire will provide the contract documents. The general contractor will do the same for the construction work. The contract should at the very least state the following:

- The full legal name of both parties involved
- A detailed list - type of work or services to be provided
- A detailed list - equipment, furniture, etc. when applicable
- Who will supply which items, when applicable
- Responsibilities of the client
- Responsibilities of the party hired
- Total cost for the work or services listed
- Applicable taxes and delivery charges
- Method of payment
- A place for signatures by both parties

A contract protects all parties involved in the project.
It eliminates any confusion as to the work or services to be provided. Everything is all laid out clearly in writing.

Read this document carefully before signing. Discuss any issues or concerns. All clarifications or changes should be incorporated before you sign.

Stay Organized

Keep all related information to your project, such as the contract, payment receipts, and invoices, etc. in one handy place. You should be able to access your information easily and quickly.

Establish a reasonable contact system with the person or company you hire. Phone, e-mail or fax, which ever best suits both parties. It is important to stay in touch through all phases of your project.

Once construction starts take photos. This will help you to keep current with the progress of work. Your financial backer, if you have one, will be happy to view them. They are also a handy visual record if any problems occur.