Introduction
There are many restaurants in the world, and their number continues to increase every year. Restaurants are very convenient in our lives. However, they are difficult to establish and run, as restaurant establishment and operation require a lot of knowledge and support, especially if you are running a popular restaurant.
Preparations required to open a restaurant
First, restaurant owners need to prepare funds to open a restaurant. They can open one by getting a loan from banks or other companies or through support from their investment partners. Next, they have to get a lot of licenses and permits before they can open a restaurant. After getting them, a business plan is made so that they could succeed (Ramsay, 2021).
There are many things to do to start a restaurant.
・Think about a concept – It is important to choose a dish and experience that influences customers.
・Make a business plan – Making a business plan leads to developing a marketing strategy.
・Raise funds – If people do not have enough money to open a restaurant, they have to seek funding.
・Lease real estate – We need to rent a space to attract many customers.
・Prepare equipment – A restaurant needs too many items, such as tables, cash registers, kitchen utensils, dishes, etc.
・Identify suppliers – We cannot run a restaurant if we do not have trustworthy suppliers. Business owners and chefs should build a good relationship with food and beverage distributors and produce vendors based on the business plan.
・Hire staff – People can succeed in a restaurant due to hiring the proper people. Most restaurants start by creating a menu, then hire a chef. After that, they hire front staff, servers, cashiers, and so on.
・Get the word out – Reach and retain prospective customers based on your marketing strategy. We can also ask our publicist to promote it.
(Ramsay, 2021)
Licenses and permits required to operate a restaurant
We have to get many licenses and permits to run a restaurant.
・Business license – A business license is not limited to restaurants but is always necessary when starting a new business. We can start a business by getting it.
・Certificate of occupancy – A certificate showing that the building has been constructed and maintained correctly.
・Food license service – People cannot sell food without a food license. They get this due to meeting all food safety laws.
・Employer identification number (EIN) – This indicates the business tax identification number. This number tells the government that we are in the business of paying employees so we can hire them.
・Food handlers permit – This indicates proper food use, storage, and health and safety practices by restaurant staff. In addition, the entire staff has to undergo food safety training.
・Building health permit – Buildings used for restaurants must be clean and hygienic.
・Sign permit – Building signs may have specific colors and sizes, so permission must be obtained.
・Seller’s permit – This tells the customer that a tax charge has occurred while dealing with the customer.
・Resale permit – This permit is required to prevent double tax payments. This allows us to buy things that are taxed and resold without paying taxes.
・Liquor license – If the restaurant provides alcohol, a liquor license is absolutely necessary.
・Music license – Only permitted music can be played to prevent copyright infringement.
(Elizabeth, 2021)
Advantages and disadvantages of running a restaurant
When owners start a restaurant business, they have to think about a lot of advantages and disadvantages to succeed.
Advantages
・Profitable – A steady stream of customers can generate high profits due to restaurants being in high demand.
・Easy customer acquisition and retention – When we open a restaurant, we can create a popular restaurant by devising ways to impress customers.
・Real estate assistance – Due to signing a contract with superior real estate, people can get a location that will lead to success.
Disadvantages
・Many restaurant employees quit their jobs – The turnover rate in the service industry is very high, accounting for 70% of the total. We have to spend time training new employees, so a restaurant owner needs to hire many of them.
・Need to find the right place – A restaurant incurs many expenses, such as rent, utilities, signs, and so on. In addition, it is difficult because various procedures are required to rent a space.
・Need lots of time and energy – Working times are very long, and in some cases, owners also have to help with cleaning and preparations, answer the phone, and so on.
(Libava, 2018)
Conclusion
We have to do a lot of preparations and procedures to run a restaurant. It is very difficult, but if we want to make a popular restaurant, we need to think about a lot of them. With the help of financial institutions and real estate, trial and error to open the ideal restaurant will lead the restaurant to success.
References
Elizabeth, E., 2021. Restaurant Licensing: Licenses and Permits Needed To Open a Restaurant. [online] Restaurant Clicks. Available at: <https://restaurantclicks.com/restaurant-licenses-and-permits/> [Accessed 8 October 2022].
Ramsay, G., 2021. How to start a restaurant. [online] MasterClass. Available at: <https://www.masterclass.com/articles/how-to-start-a-restaurant> [Accessed 8 October 2022].
Libava, J., 2018. The Pros and Cons of Owning a Food Franchise. [online] U.S. Small Business Administration. Available at: <https://www.sba.gov/blog/pros-cons-owning-food-franchise> [Accessed 10 October 2022].
