Do you know why most restaurants fail? The reason is that they believe if the food is good, success will just be a step away. This is a wring concept and most people are misguided by thinking this way. Now, you are a little excited about opening your own restaurant, but in all this excitement, do not forget to make a reality check on your complete project. You do have a good vision to succeed but do you have a clue about how to open a restaurant? No, you do not have a correct understanding about the real business that gets into opening a restaurant. This lack of understanding will make you a complete failure in your attempt; if you want to succeed then read on to avoid the common mistakes.
A particular saying in the business world is that you must have 3 important things for your business they are location, location and location. It is true that a good location is a great investment and boon for any business, but that alone is not a guarantee of your success. Do you know that there are a lot of restaurant in “not so great places” that are a huge success. Location is a big factor but it is not the only factor that you should consider while opening a restaurant. The poor business practice can also lead to the downfall of a restaurant and I am sure you would want to avoid it.
Another common mistake that most people do when thinking about how to open a restaurant is that they fail to draw a fair cost for each recipe placed on menu. The problem here is that they do not draw a fair cost of every recipe and then chalk out the basic charges on the items. These people set the prices of the items on the gut feeling and what they believe that the customers would shell out. These kinds of restaurateurs do not know the actual cost of the items on their menu.
You have to first look at the budget of the restaurant; you will be amazed to see the amount spend on the food. This is what you will have to control and if you are unable to control this aspect of your business then your business is traveling down the wrong path. If you want to be successful about how to open a restaurant then you will have to price your food items on the menu correctly. The pricing should be moderate and must also help you earn profits. The key here is to avoid setting high prices.
The last problem is customer service. Yes, this is also the biggest problem of the restaurant industry today. You must know that you will not be able to make everybody happy. There will always be people who complain about a certain recipe, while others might tell you that this is the prize winning recipe of your restaurant. Always remember that your customers are the breath of life of your restaurant. They are the reason why on the first place you are thinking about how to open a restaurant.
Keep these simple issues in mind when you are thinking about how to open a restaurant!