Restaurant Industry

How to Buy or Sell a Family Restaurant

2011-09-13T01:53:00.000-07:00

A family restaurant exudes the ambiance of a home. The menus served might be time-honored family recipes that have become a hit with the family and extended family members: relatives, neighbors, classmates, office-mates and friends. It might have started as a way to pass the time and increase the income of members of the family. Most family restaurants that have managed to become successful grew popular mainly by word of mouth.

As with any business, opening, buying or selling a family restaurant is done with profit as the objective. Whatever the objective, a simple business plan is required to make a restaurant financially viable. The following are some tips you have to keep in mind on how to buy or sell a family restaurant.

Small is Still a Big Deal

A single proprietorship family restaurant is labor-intensive. The hours put into the business might adversely affect the goods and services being offered so there is a need to professionalize the business approach no matter how small it may be.

The Location is your Lifeline

Market analysis greatly influences the location of the business. Family restaurant does not mean the location should be at home but anywhere where there is a demand since business is a matter of supply and demand. Thorough market analysis should take into consideration the clientele's age brackets, employment, lifestyles, habits and financial capabilities. The food and beverages to be served are usually influenced by this.

Know Your Hook

When breaking into the food service business, there needs to be a careful emphasis on what aspect of the product to promote. It might be the price, the quality of food, great service or the charm of the individuals involved.

Get in Sync

The daily business activities are the backbone of the food service industry. These are the activities of employees, the business hours offered and the source of foods for cooking. It is always advisable to offer dishes which are in season and are readily available in the locality.

Go Healthy

Health and environmental considerations should be weighed heavily for the good of the owner and the general public. You wouldn't encourage hypertensive clients to partake of rich foods. This kind of business practice might be unpopular but will prove to be an intangible asset in these times when obesity is a world health problem. A successful family restaurant is able to cope with the changes in the demands of the clients as well as have the ability to diversify to other products and recipes as well as serve healthy food without sacrificing quality.

Six Reasons to Open an Independent Restaurant

2011-09-04T01:52:00.000-07:00

Those with an interest in the food service business often work as managers and cooks as they dream of starting their own eatery. If this describes your situation, going from working for an eatery to owning your own could require some risks, but ones that could pay dividends in the long run. If you find it difficult to break loose and take a chance on your own eatery, consider the benefits you miss if you don't open your own restaurant:

Being your own boss

If you've spent years in the food service industry as a manager, cook, or waiter, then you know how stressful it can be working for someone else, especially in a business known for its ups and downs. When you own your own restaurant, the stress of the restaurant environment doesn't stop. In fact, it often increases. But when you run an establishment instead of working for one, the final say in business matters is yours. At the end of the day, you can rest knowing that, as long as your eatery maintains its performance, your job is safe.

Developing unique cuisine

If all restaurateurs share one trait, it's a passion for cuisine. Unlike chain eateries whose menus only change when corporate officials give the go ahead, independent eateries allow their owners to be food artists, developing new twists on old dishes and creating new ones. In an era where the cuisine in many chain restaurants' is seriously second rate, having your own eatery lets you offer consumers more than just consumption.

Developing an establishment's identity

Developing an establishment's identity is critical to developing its customer base, which is critical to sustaining its income. Unlike a chain eatery whose identity is already formed, an independent eatery can form a unique identity, one that appeals to a demographic whose presence in the eatery helps to solidify its identity. Whether an establishment that channels sophistication, rusticity, or family fun is your goal, independent restaurant ownership makes it possible to achieve.

Generating high income

If you're tired of earning a salary that doesn't reflect the hours you work, being self-employed means that all of your work time goes toward your income. Furthermore, there isn't a salary range that keeps you from reaching a certain income level, or anxiety about raises or bonuses that may or may not come. Opening your own eatery could involve financial risks. But when you succeed, the reward for taking those risks can be great.

Meeting lots of people

If you're a social butterfly, having your own establishment could let you meet hundreds of people a day, some of whom could be valuable business or social contacts for expanding your restaurant's services, or enhancing its social appeal.

Before people buy restaurants

Before people buy restaurants, they should speak with attorneys that oversee restaurant sales, or with consultants that help investors calculate the cost of opening and owning restaurants. By doing your homework before you enter the buying phase, such as ensuring that an establishment's asking price reflects its fair market value (FMV), you can find an establishment that helps fulfill your aspirations, and then some.

High Quality Commercial Catering Equipment

2011-08-28T01:51:00.000-07:00

Are you planning to start your own catering business? Definitely the catering business is an excellent as well as alluring business option. The profit margins are extremely high and there are fewer legal formalities to be completed. Also the customer satisfaction ratios are higher and easier to attain as compared to any other related businesses. But it is extremely important to provide and to further maintain the high standard of services and food quality.

If you love cooking and serving the food in an exceptionally astonishing manner you can do really well in the field of catering. But as I said earlier you need to be prepared to do your best every time with each customer. The basics of starting a catering business initiates by formulating a well laid-out plan that where you want to establish the office? What will be on your menu? What extra services can you provide? How many staff members you will need? What type of equipments you have to buy?

The use of commercial catering equipment is very important as it not only makes sure the job is done in a hassle-free manner but also saves a lot of time. The use of catering equipments is highly recommended in order to provide the customers quality as well as timely services. This basic investment has to be done no matter what and therefore you should conduct an extensive research regarding the various types of catering equipments before purchasing them for your business.

There are many types of equipments that you will be requiring depending upon the nature of your menu and size of the firm. For beverages, there are bar blenders, water boilers, coffee machines, juicers etc. For cooking you need to buy exhaust hoods, processors, blenders, catering taps and sinks, vegetable cutters, stick blenders, peelers, food slicers, mixers, wash basins etc. There are many larger equipments like chip dump ship scuttle, hot plates, bin Maries, trolleys, plate warmers, hot buffet, waste bins, base cabinets, storage wall units and food displays.

Now most of the commercial catering equipment are quite expensive and therefore need to be installed very carefully. Make sure you spend a good amount of time on researching about these equipments online before finally purchasing them. First of all formulate a tentative budget for these equipments and then start researching about those equipments that fall under your budget. You also have the option to buy these equipments online from various online websites which provide kitchen equipments.

While researching an equipment look for its manufacturer and the warranty period they are offering. You can also get some exclusive discounts or deals while purchasing your equipments online. But make sure that you are ordering the equipments from a reputed store where detailed descriptions are provided along with high-resolution images or visual displays of the products. Compare different products and go for the one which offers maximum usability at most reasonable prices. Opt to purchase the equipments from a store which provides complete solutions to your catering needs

How To Sell a Restaurant: A Comprehensive Guide

2011-08-21T01:50:00.000-07:00

So, you want to know how to sell your restaurant. Either because you want to retire to your own tiki hut in Bora Bora, or it's unfortunately going under and you just want to cut your losses. Here are a few simple steps you could follow to make the transition from restaurant-owning to restaurant-free.

Assess What You Have

• Market Value

Of course you want to earn from this sale, who doesn't? But you have to get real about things. Before fixing on a price that YOU think the business warrants, find out the prevailing selling price of other restaurant businesses in your area. If you price it too high, no one may make an offer and you'll be stuck with a business you no longer want.

• Physical Condition

Take a good look at your restaurant. Are the chairs and tables so worn they need to be put to sleep? Is the wallpaper faded and old enough to vote? Has your kitchen become a health, as well as a fire hazard? Or are they all as pristine as the day you opened your doors to the hungry public? It would be best if you do some minor repairs and give everything a good scrubbing. It would not only up its appeal, but would also incite a well-needed confidence in the business.

• Financial Condition

Is the business thriving? Or is it sinking? A thriving business could command a good price. (after all, the buyer is getting an earning business.) If it is in the red, then you might just have to compromise and agree on a much lower price. This is also another chance for you to think things through; do you really want to sell?

Prepare the Paper Work

Update your different licenses and permits. Are they about to expire? Can these licenses and permits be transferred to another person? It is better to take note of these things now rather than compromise the sale simply because you forgot to take care of such things.

Create a Business Package

A business package is simply an overview of your business. This includes the name, place, years of operation, financial statements (annual income, net profit, itemized costs - lease, utilities, permits), list of equipment, furniture, appliances included in the sale. This is a great tool to get both parties on the same page on what are and are not included in the sale.

Get the Word Out

People should know that your restaurant is up for sale! Advertise in all possible channels - newspapers, online classifieds, and specific classified sites for selling businesses. The farther your reach, the more potential buyers you can attract.

Screen Potential Buyers

Are these potential buyers willing and able to buy and run your restaurant? Avoid selling to con artists or buyers who don't have the means to pay you. Have them fill out a buyer disclosure form you've created and be diligent in checking out their references. When it seems that they are who they say they are, then and only then do you hand over a copy of the business package.

Have Everything In Writing

Unless you are a lawyer yourself, it's best to hire legal counsel when it comes to the final sale. Lawyers would put down every agreement on paper and make sure all your legal paperwork is in proper order.

Using Candy Jars At The Hardware Store

2011-08-18T01:49:00.000-07:00

It is easy to become overwhelmed when entering a hardware store. The shelves, walls, and even portions of the floor are usually filled with tools, supplies, equipment, and other items. Unless they are familiar with the store layout, customers often have a difficult time finding what they need. Candy jars can keep the smallest items organized so customers can locate what they are looking for without any assistance.

Hardware stores seem to sell nails, screws, nuts, and bolts in every size and shape imaginable. Often, these are thrown into compartments with open lids. This becomes a problem when customers do not put items back in the correct compartment. Soon, all the sizes are mixed together, making it difficult for a layperson to determine which one is correct. By storing each size in a different lidded and labeled jar, the confusion is eliminated.

Even larger items like plugs and adapters can be hard to find when they are stored in cardboard boxes on shelves. Since these boxes are not usually labeled, customers have to look inside each one to determine the contents. Storeowners can make things easier for them by displaying these items in labeled plastic jars. Label makers are inexpensive, can be purchased from nearly any office supply store, and feature an assortment of font styles and colors.

The size of an item does not necessarily equate to its price- some small tools can be expensive. Multipurpose tools, small electronic levelers, and other pricey items can be stored in jars behind the counter. When shoppers request one of these, the worker simply plucks it from the container, saving a trip to the inventory area at the back of the store. This reduces chances of breakage and theft, maximizing profits in the process.

A candy jar is also perfect for displaying impulse items at the cash register area. Car air fresheners, pocket flashlights, and lock deicers are impromptu buys for many shoppers. Keeping these in a visible location increases the chance that someone will purchase them. These products make great stocking stuffers this time of year so storeowners should highlight them.

Candy jars are much less expensive than built-in compartments and other containers. They are portable and reusable, increasing their versatility within any hardware store. Jars that are not needed are easy to store and as the business expands, it will be cost-effective to order more of these containers in larger sizes.

Costs in Developing a Restaurant Business

2011-08-07T01:48:00.000-07:00

A restaurant is one of top performing and profitable business ventures today because food is the staple need of everybody and we all need to eat to survive. Because of its profitability and feasibility, numerous individuals ventured into this type of business. However, it is not that easy to form or develop your own restaurants due to the numerous elements and requirements you need to comply to become successful.

Some people believed that restaurant business is one easy task to hurdle, but they are wrong. There are lots of factors to consider when opening a new restaurant.

These are the restaurant start-up costs elements:

    * Lease - Since not all entrepreneurs can afford to buy a new space and a new building where they can operate their restaurant business, you need to consider lease costs, which include deposits and monthly rental payments.

    * Lease improvements - Once you have signed a contract with your tenant or landlord, you need to make the needed improvements to the space to meet your desired ambiance. You have to make the needed changes to the walls, interiors, flooring, rewiring, lighting, plumbing, shelving, furniture fixtures and many more.

    * Beginning inventory - Like any other businesses around, you need to buy the needed supplies and equipment for your restaurant such as tables, tablecloths, spoons, forks, knifes, cutlery sets, casseroles and other kitchen utensils. Since you need to buy several pieces of these things, you can source out suppliers which offer discounts on bulk purchases. Since you will use these supplies several times, you should buy those which are durable and made from quality materials. You also need to print menus for your customers to use when choosing their dishes.

    * Marketing - To let your target customers know your existence, develop an effective marketing strategy to inform them of your menus and services. You can distribute fliers, business cards, send electronic mails and SMS messages to your customers.

    * Legal Documents - Before you start operating your restaurant, you need to comply with all the legal papers such as business permit, sanitary permit, building permit, health permit and business license. You also need to pay the corresponding taxes in opening a start-up restaurant. You need to pay the associated fees when complying with all these documents.

    * Employees - You have to hire credible, experienced and reputable employees who will help you manage and operate your restaurant. You need to employ cooks, waiters, cashiers, dishwashers, accountant, manager and delivery personnel, in case you cater to food delivery services.

    * Insurance - To prepare for untoward accidents and calamities, it is best that you get the needed insurance for your restaurant, machinery and other devices. Insurance really helps especially when your business is impacted by a calamity or disaster.

    * Emergency funds - It cannot be avoided that businesses also encounter emergency situations such as sudden breakdown of one equipment or device. To avoid bottlenecks, you need to have emergency funds to address these cases.

The factors mentioned above are the common items that should be considered in your costs in starting up a restaurant.

Your First Restaurant - Calculating Out Beginning Funds

2011-08-02T01:47:00.000-07:00

So you have chosen that being a restaurateur is your mission. You've come up with the perfect name, company logo, area, and design, and now you are on your way to becoming one of the biggest restaurant managers in history! But there's just one little catch before your grand opening - Your start-up sources are nearly non-existent... What do you do? Here's a little information to help you get started.

First, A Plan

The first element you need to do when starting up is to decide just how much income you need to source. It can be as little or as much as you like. Your objective, however, is to be realistic.

While you may have an area in mind already, you need to consider if the costs are going to be greater than you can afford! First, there are the principles like rent/lease, the necessary licenses and permits, energy expenses, and various service fees.

Next come accessories and remodeling, furnishings, workplace materials online, décor, a phone system, and everything else necessary just to get your restaurant in working order. Then there are the REAL requirements - items, smallwares, disposables, and the ever-important beginning items to be kept on stock.

Oh, and you cannot ignore marketing expenditures - If no one knows about your restaurant, they will never come! Be sure to consider marketing and campaign expenditures such as mass mailing and hiring someone to build a website. This process, depending on your location, can turn out to be just as important as the quality of food you serve.

Finally, you will need people to run your restaurant - You cannot do it all by yourself. With that comes not only other expenses, but yours as well. And you may even need to buy company automobiles to get you and your workers around.

Once you get up and managing, keep in mind those expenditures that will come before you even know it - replacing inventor, systems of upkeep, monthly loan payments to the bank, and all the other varied and unexpected expenditures. You will want to make sure to have an emergency fund for the same reasons that you should keep an emergency fund with your personal finances.

Finding the Ideal Cafe Equipment and Supplies

Now I'm no expert on these items, but I can tell you that I both have practical exposure to restaurant items and restaurant supplies! Good tools are the key to any profitable business. You can often find cheap, but quality restaurant supplies online by searching for the items that you need in the search engines. Be sure to find a reputable company that has a solid history of happy customers.

Face the Figures

At some point you may realize you still do not have the cash flow necessary to stay in business. If you are committed to the success of your restaurant and believe that the possibilities of success are probable, you may need to get creative about new sources of funding.

The most important thing is to keep an eye on the money that you spend and invest. Watch where every dime goes and ask yourself if you are maximizing the use of your limited resources. Here are some general tips that you may find helpful:

    * Start small and bootstrap your business. Focus on being profitable as soon as you can.
    * Expect debt at first, but keep it in check. The wheels of capitalism are greased by healthy levels of debt as they allow people to dream big.
    * Congratulations, you are living your dream of owning and running a restaurant!

The Importance of Hiring Bartending School Graduates

2011-07-14T01:47:00.000-07:00

You undoubtedly want to make sure that you hire the best servers and bartenders for your establishment. The quality of your staff reflects directly on the profitability and popularity of your bar or restaurant. Let's face it - people aren't going to patronize an establishment that has poor service no matter how good the food is or how cheap the beer might be. Making the right hiring decisions is incredibly important and you need to do everything you can to ensure you hire the most qualified applicants. That means you need to hire bartending school graduates to work your bar.

Bartending School Graduates Offer Better Service

Why is a formal education in bartending necessary for your bartenders? While anyone can learn how to mix a drink or pour a draft beer, you'll find that those who have attended bartending school can give your establishment some additional benefits.

For example, you'll find that a bartending school graduate will know far more about how to serve your customers quickly and efficiently. This is incredibly important because a high-pressure, fast-paced work environment demands someone skilled and experienced in handling the rigors of such a position without sacrificing the quality of service.

In a stressful, fast-paced environment, it can be very easy for a bartender or server to become overwhelmed. This affects everything about their job performance, from their service speed to their attitude toward customers to how they treat individual customers. It also affects their level of attention. If you don't employ bartenders who are trained to deal with these conditions, you might just find that they're not paying the attention they should to the amount of alcohol your customers are consuming.

Over Serving Is a Crime

While under serving a customer can lead to dissatisfaction and possibly lose you a customer, you'll find that over serving is a crime and you can actually wind up in some very sticky legal situations. If your bartenders are not paying attention to the number of drinks served to your patrons, it can be easy to over serve them. The result can be a drunk driving accident if that patron leaves your bar or restaurant drunk. That accident can be laid right at your door - you might find yourself facing legal charges for over serving.

Protect Your Establishment by Hiring Educated Servers

How do you protect your livelihood from the threat of legal action in these situations? Actually, the best defense is not to get involved in them at all. If you employ bartending school graduates, you are helping to prevent these situations from happening in the first place. Bartending school graduates are taught the importance of providing good customer service, and the importance of personal responsibility and accountability when serving alcohol.

Increase Sales With A Well Designed Restaurant Menu Board

2011-07-08T01:46:00.000-07:00

The menu board is one of the most important features in a restaurant. It not only informs customers of what food you offer, it also creates an impression in the minds of your customers. It is often the first interaction that a customer has with your restaurant. A well designed menu board will impress your customers and enhance the style of your establishment.

If you own a restaurant, you probably spent months, or even years, generating a diverse and delicious menu. After all, the food is the most important element in an eating establishment. Now that you have the food figured out, you must present your choices in an easy to read and appealing manner. Your restaurant menu board should be well designed and easy to understand so you can highlight your food selection in a way that will excite and delight your customers.

Before a person even takes one bite of food in your establishment, he or she must be enticed to come inside and order. One way to generate interest in your food is to install high quality signs outside of your restaurant. You may want to have signs indicating the special of the day or even a small menu board that features some of your most popular dishes. Many people are reluctant to walk into restaurant if they do not have some idea of what types of food are offered. A small menu board outside allows pedestrians passing by to determine whether or not your restaurant offers selections that appeal to them.

You want to be sure that your menu board catches the customers' eyes the minute they walk in the door. Be sure that the font is clear and easy to read. Keep in mind that images sell. Include vivid pictures that will make your customers' mouths water. High quality and high-resolution graphics make your board stand out and get noticed. You will want to use a design and include graphics that match the atmosphere of your restaurant. A casual family restaurant may have a very different menu board than a romantic Italian eatery that caters to the adult crowd. Be sure that all of your signs perpetuate the image you are trying to create.

Menu boards can be backlit or illuminated for better visibility. Lighted signs are easy to read, which means that your customers spend less time trying to decipher the menu. As a result, the ordering process can move more quickly, allowing your customers to get speedy service. The brightness of a lighted board demands attention and is a great way to showcase the many food and beverage options that you offer.

If you own or manage a restaurant, you know how easy it is to get wrapped up in food preparation, wait staff issues and many other responsibilities that go along with running a business. Don't forget to pay attention to the menu board and other signage around your establishment. It is what draws in the crowd and is often the first impression they have of your restaurant. Be sure to work with a sign specialist in your area who is skilled at designing and installing high quality, easy to read and attractive menu boards and restaurant signs. It will be an investment that will benefit your restaurant in many ways, including an increase in sales.