When most people open a restaurant, they ensure that they have great recipes and that they are on the right track towards achieving their dreams. Sadly none of this guarantees successfully running a restaurant.
Honestly speaking, the restaurant industry is very tricky. According to a study done in Cornell Hotel and Restaurant Administration, a quarter of startup restaurants fail within their first year of operation. There are almost a million restaurants in the United States but this has done nothing to decrease the alarming failure rate in the industry.
The reason running a restaurant is tricky is because there are a number of factors that contribute to the already rocky path to success. Here’s how you can successfully run a restaurant.
How Not To Fail At Running A Restaurant
1. Be Prepared To Work Long Hours
When running a restaurant, you have to be prepared to work at least 90 hours or more a week. This means that you have to be ready to put in extra time even during holidays and weekends.
2. Be Prepared To Work Hard
Running a restaurant involves downright, difficult, draining, dramatic and dirty work. You should be prepared to pick up the ball when the employee drops it, work for an employee who does not show up for his shift and unclog the grease trap when no one else is available to do it. You have to be prepared to work every job in your restaurant.
3. Know How To Manage Your Risks
The first thing that you have to do when you open your restaurant is to protect it with insurance against damages, accidents and injuries. This is one way of ensuring that you manage your risks effectively without disastrous financial repercussions. Another way that you can manage risks is by incorporating safety procedures in all processes and operational tasks. Remember that the smallest of problems can lead to great financial repercussions.
4. Evaluate Your Competition
Chances are very high that you may not be the only restaurant in your local area looking to attract customers. No matter how unique your concept is, there will always be a new restaurant that might pop up as the months go by and try to absorb your customer base. It’s important that you always stay aware of the competition and maintain distinguishing characteristics to set yourself apart from them.
5. Know Your Financials
You need to familiarize yourself with basic restaurant accounting before you begin running a restaurant. Your restaurant cannot make to stand on its own if you do not know the necessary know-how and don’t have initial capital. With sufficient experience, you can prepare a budget, purchase and manage hefty costs that come with running a restaurant.
6. Mind The Economy
Although you cannot control it, the economy plays a huge role in successfully running a restaurant. You should keep an eye out for inflation costs and cut your losses whenever possible.
Get an Instant Quote on Your Equipment Lease, Free
One way that you can easily survive through a tough and unpredictable economy is through leasing. Leasing is the most favored way of acquiring equipment without investing large sums of money.
As mentioned earlier, a quarter of restaurants fail within their first year of operation. Assuming you take out a loan to purchase all the commercial kitchen equipment that you need and your restaurant collapses, not only would you lose your investment but your credit score would be negatively affected.
Getting approved for a lease is an easier alternative to direct purchases or loans from lending institutions because if your restaurant fails, all you have to do is return the equipment to the equipment leasing company. Your credit score is not affected and you don’t lose all your investments.
Leasing offers other benefits such as:
- Tax benefits
- Free upgrades at the end of the lease period
- You can add more equipment to your lease as the need arises
- You don’t need to provide collateral or make any down payments
- It a free and fast way of acquiring equipment. Most equipment leases are pre-approved within 24 hours and 98% of businesses have a high chance of getting approved.
Restaurant equipment is not cheap and investing all your money in it can be financially disastrous especially in tough and unpredictable financial times.
For more information on leasing restaurant equipment, simply CLICK HERE.