10 Aug 3 Mistakes to Avoid when Opening your restaurant
Researches show that 17% of restaurants fail within their first year, but good news are that this scenario is avoidable with proper planning. Here are three common mistakes to avoid at the beginning of your business.
- Not planning your budget effectively / not enough capital
Unforeseen expenses are a part of any business, particularly in the first year when costs are expected to be much higher than an established business. A significant shortfall can put you off the tracks for months as you try to reimburse the difference. Before starting, outline all intended expenses and research the common costs associated. Make sure your budget includes spare room for unexpected or higher costs than planned. It’s a good idea to overestimate your starting costs and have enough cash for the first 12-16 months for covering basics.
2. Having a complicated menu
Too large offer generates production problems, slows down your service and downgrades the quality. The more extensive menu requires more time for a customer to order, which leads to less table turnover and finally less profit. Smaller but an exquisite menu is always a better solution and a simpler way to consistently deliver quality.
3. Lack of Concept
Trying to be everything for everybody will eventually lead you nowhere. When opening a new restaurant, it is crucial that your restaurant concept is clear to the customer. Besides, clear concept helps outline the type of your menu, the décor, and the price range. Deciding a restaurant concept and sticking to it will target your audience and position you on the market.