Opening a new restaurant can be an exciting endeavor that opens up countless opportunities for growth and brand establishment. The long-term success of a restaurant is dependent on many things, ranging from customer satisfaction to the security of your business. As new restaurants are constantly popping up, it is important to make a name for yourself by staying driven and focused. You should also be aware of certain risks that could affect your business and how you can best manage these risks. If you are newly established in the food industry, consider the following tips for new restaurant owners:
1. Have a Solid Concept
When you think of McDonalds, what comes to mind? Probably burgers and fries. What about Olive Garden? Visions of Italian cuisine and endless breadsticks may fill your vision. Many business owners open a restaurant with a loose concept of what they will offer their customers. By having a solid concept, you can target the right audience and be more successful in your marketing ploys. Some concepts you can choose include fast food restaurants, casual dining establishments, upscale dining, food trucks, or pop-up restaurants.
2. Create a Memorable Logo
Many new restaurants overlook the importance of a logo. A logo is not just a graphic that will adorn the cover of your menu. It reflects your company’s brand and can impact public perception. It is essentially the face of your business. In time, you may see your logo printed on advertisements, street signs, billboards, business cards, newspapers, websites, and elsewhere. Do not skimp when it comes to a logo and be sure to make it memorable.
3. Invest Your Startup Funds Wisely
There is a right way and a wrong way to start up a business. The right way is to invest in your customers by choosing to splurge on the important things, like commercial kitchen equipment, quality ingredients, and adequate dining room furnishings. You also want to invest in your staff. Take the time to hire great employees and provide training to ensure they know how to properly interact with customers.
4. Keep Funds on Reserve
Financial issues are one of the top reasons that most restaurants close their doors. In fact, about 60 percent of new restaurants fail within their first year, according to CNBC. Due to the common financial restraints involved in the initial opening of a new restaurant, it is important for business owners to have extra funds on reserve to make up for a lost of customers during the off seasons or when money is extra tight.
5. Build a Business Website
Even with the tremendous growth of the internet in the last few decades, some restaurants still do not know the value of having a website. There are many reasons to create a professional website for your business. First, it is often the first place new customers go to see what your restaurant is all about. Next, it is a great way to share information about your business, such as menu items, hours of operation, and contact information. Finally, your website can be an alternative for people who prefer to order food via the internet rather than the phone.
6. Make Valuable Partnerships
In the hospitality business, it is all about who you know. Forming business-to-business partnerships with other business owners can be highly beneficial to your bottom line. Not only can it help you build a reputation in your area, but by creating professional relationships with other companies you can open up new business opportunities and expand your enterprise.
7. Acquire Restaurant Insurance
Among the most important of all these tips involves acquiring restaurant insurance. If you operate any type of eating or drinking establishment, restaurant insurance is a must. There are a number of important policies that can help reduce your risk of financial ruin in the event of claims like property damage or bodily injury. Most restaurant owners pay less than $200 a month for a standard business owner’s policy which can provide ample protection against personal liability.
When building your restaurant insurance package, consider what types of policies can best protect your business. This may include general liability, product liability, assault and battery insurance, property insurance, automobile insurance, workers’ compensation insurance, equipment breakdown insurance, and spoilage insurance. If you fail to protect your restaurant with adequate insurance policies, you could face the financial consequences. Your business may be held liable for various lawsuits that could lead to a loss of your business license(s) and total liquidation of your restaurant.
Learn More About Restaurant Insurance
Restaurants face many risks on a day-to-day basis. While it is not always possible to eliminate these risks, business owners can ensure that they are protected from many possible repercussions. For more information about tips for new restaurant owners, or to acquire a restaurant insurance policy, contact the restaurant insurance brokers at MFE Insurance.