The business of choice of so many people I know is a food establishment. No, not to sell like a grocery, but to prepare food and serve like a café, a diner, or a restaurant. And so many of them think that it’s easy work with only a simple process to follow – acquire a desirable space, have it renovated, buy good equipment, hire the right people, and look for suppliers. Easy, right? No. Like in every business endeavor, there is always a lot more detail involved than meets the eye. Let’s look at some of these.
Good equipment is paramount. It should be brand new (never second hand), and durable. It doesn’t matter if the equipment costs a pretty penny, because once a restaurant has good gear, it dramatically reduces the need for staff and ingredients. For those who are unable to see things long-term, this is a good thing. Entrepreneurs are cautioned though that this is going to be capital-intensive.
Although equipment might seem like a huge expense, restaurant owners have to brace themselves for the biggest expense yet: staff salary.
In the United States, the restaurant industry is the second-largest when you consider employment.
When stocking food and drinks, the rule of thumb is that food lasts a week, while alcohol lasts a few more weeks. Always be careful not to overstock.
Increasing sales is much more important than cutting costs, simply because increasing sales leads to expansion. Cutting costs is much easier, though.