The process of opening and launching a new restaurant is a thrilling venture. It’s an exciting and challenging endeavor however, the effort that you put into it will result in a positive return.
A restaurant’s success depends on using a solid business plan, knowing your local marketplace, locating the perfect location and staff getting permits and a license to operate, coordinating the inventory and supply, creating menus that will appeal to your customers, and so on.
A lot is going into the process. If this is your first time, it’s essential to look at more than the opening and think about strategies for creating money that allows you to go further than breaking the bank. However, with the right direction, you can make your dreams of owning an acclaimed restaurant a reality.
This guide will provide all the information you require to know about the process of starting and operating an establishment. The focus will cover everything from making a brand-new business plan to establishing operations and promoting your restaurant. Following this step-by-step, you can open a thriving establishment lasting many years.
Every restaurant has a different appeal to everyone. This is a fact many newer entrepreneurs need help acknowledging, yet the truth is that you’ll need help to capture 100% of the marketplace. If you try to satisfy everyone, you will not please anyone. Therefore, focus on the 5-10 percent market share you can acquire and ignore the others.
In that case, who eats in restaurants? Let’s take a look at the most critical segments of the food service business’s customers:
- Generation Y. Generation Y, also known as”the “millennial generation,” the “echo,” or the “boomlet” generation, is comprised of people born between the years 1980 to 2000. Generation Y is by far the most multi-ethnic generation and is three times larger than Generation X. They are the ideal customer for any food-service company. Generation Y members Generation Y go for fast-food and quick-service food items. Around 25 percent of their dining out trips are to franchises for burgers, then pizza places with 12 percent.
- Generation X. Generation X is a name that refers to those born between 1965 and the year 1980. The Gen X group is known for its strong values of family. While previous generations tried to make more money than their parents, Gen Xers are likely to be focused on their relationship with their kids. They’re concerned about the value of their food and prefer fast-service eateries and mid-priced operations with salad bars for all-you-can-eat and buffets. You must provide a relaxing setting focused on quality and atmosphere to attract this segment.
- Baby boomers. Born in 1946 and 1964, the baby boomers comprise the largest percentage of the U.S. population. Most prominent in this generation are professionals with a high income who can afford expensive restaurants and spend without restriction. In the 1980s, they were the most popular clientele for stylish, fashionable eateries. The 1990s were a time when a lot of baby boomers were in two-income families with children. Nowadays, people on the forefront generations of boomers are turning into grandparents, which makes them an ideal target for establishments that cater to families in a welcoming setting and the most elegant, traditional dining environment.
- The empty nesters. This category includes people who fall between the baby boomers and the seniors (people in their 50s until age 64). They typically have children who are no longer at home. Their number will continue to rise as the baby boomers become more affluent and children move out of their homes. With all generations’ highest discretionary earnings and income per capita, these people tend to go to high-end dining establishments. They’re less concerned about cost and more focused on outstanding service and exceptional food. Attract this crowd with sophisticated surroundings and a refined setting.
- Seniors. The senior market is the majority of those 65 years old or older. In general, seniors have fixed incomes and might only sometimes be able to pay for expensive dining out often, so they typically frequent family-style restaurants with excellent service and reasonable costs. “Younger” seniors are likely to be more active and possess greater disposable earnings than “older” seniors, whose health could decline. Seniors generally prefer restaurants with menus for seniors and early bird specials with a lower cost and smaller portions, as their appetites tend to be less nourishing than those of younger individuals.
Restaurant Service Styles
Restaurants can be classified into mid-scale, quick-service, and high-end. Quick-service restaurants are also referred to as fast-food eateries. These establishments have limited menus of foods that are cooked quickly and are sold at meager prices. They typically have drive-through windows and take-out services alongside very informal dining places.