Welcome to Your Place Guide

Your Place Guide is the place where you start your journey to becoming a restaurateur. According to statistical estimates, between 20% and 40% of all restaurant types fail within one year of opening.

We are here to help you avoid the pitfalls that could make you a part of the failure statistics. Our team contains cooks, business managers, project managers, top restaurant owners and financial advisors. We all have decades of real-world experience, as we have learned lessons on the perfect success formula for setting up a restaurant business.

You will get to learn things like:

• The day-to-day economics of handling a restaurant business.
• How to handle workflow and kitchen staff.
• How to set up the perfect menu.
• The process of getting reviews from customers and making improvements as needed.
• The licensing, permits and health regulations of the restaurant business.
• How to set up kitchen equipment.

Thinking of Opening a Restaurant?

Operating a restaurant is both an art and a science. You have to get your maths right and be creative at the same time.

In the long run, every new restaurant entrepreneur aims to attract as many customers as possible and build a popular brand. The path to reach this goal requires small, consistent steps. Here are a few of those small steps.

Pay Attention to the Planning Phase

Your first decision is to consider your financial capability and choose a type of restaurant. Then you will create a business plan to put your ideas into action.

Before selecting a restaurant type, you need to know your target audience and the type of services you want to render. You could decide to serve vegan-only food or set up a Mexican restaurant because of the demographics in your area.

Build a Financial Action Plan

A financial or business plan provides a framework that defines a roadmap for a restaurant business. It can also help new restaurant owners pitch their idea to potential investors, so as to acquire funding. The components of a typical restaurant business plan include:

• Executive summary (restaurant name, founders, target audience and funding needs).
• Company description (legal structure, location and mission of the restaurant).
• Market analysis (Identification of target market and a SWOT (strengths, weaknesses, opportunities, threats) analysis of competitors).
• Menu and operations (potential food and drink offerings, inventory layout, and supplier relationships).
• Comprehensive financial projection (Financial forecast for the next 3 to 7 years).

Keep Things Simple at the Start

It is best to start with a simple restaurant, especially if you are on a tight budget. You also need to build experience and minimize risk at the start.

One option is to start with a home-based catering business where you run the cooking and business side of things from your home. You could also decide to run a ghost restaurant and deliver to customers via a third-party company. A more capital-intensive and relatively simple option is to buy a food truck and fit it with all the required cooking equipment.

Common Mistakes that New Restaurant Owners Make

New restaurant owners often overlook key factors that can significantly impact their business in the long run. Here are some of them.

Selecting A Poor Location

No matter how world-class your restaurant service delivery is, you will not see good results if you set up in a bad location. Some clear examples of poor locations include:

• A restaurant in a quiet and almost always empty street with no pedestrians.
• A location that is in a crime-ridden neighbourhood that most people avoid.
• A building with limited or no parking spaces.
• A high-end five-star restaurant in a low- to middle-income neighbourhood.
• A youth-focused café in a place filled with an older generation.
• A small Pizza Hut in a location close to three more popular food chains.

You should consider the demographics, accessibility, and economic conditions of your location. You should also consider the potential competition from other restaurants in the area.

Poor Understanding of the Food and Hospitality Industry

Many people open restaurants without doing the required preliminary research. They fail to look up dining trends, craft their target audience and underestimate competition. They are in love with the idea of owning a restaurant, without having the knowledge to stand out in a saturated market.

New restaurant owners tend to overlook statistical metrics like the profile of the daily dining traffic and customer taste. If you are new to the restaurant business, you need to take note of these seemingly insignificant statistics.

An Underestimation of the Operational Cost of Running a Restaurant

New restaurant owners often fail to contact experienced restaurant owners and leading financial experts to guide their financial decisions. The result is that they don't have a good idea of what it takes to open and run a restaurant.

Then, the restaurant eventually shuts down. There is a need to know the costs of rent, cooking equipment, licensing, and staff payments, among other factors. It is also best to plan for unexpected expenses.

A Complicated and Large Menu

It might be tempting to have as many items on the menu as possible. However, this approach does more harm than good. It will reduce the efficiency of your kitchen staff and could cause low-quality food. A small and balanced menu is visually appealing to customers.

Subscribe to Your Place Guide's Monthly Newsletter

Starting a restaurant might feel overwhelming. However, you don't have to do it alone. You need every motivation you can get every step of the way, from planning to launch day.

Our newsletter will deliver expert opinion to your inbox without spamming your inbox. When you subscribe, you will receive access to:

• Actionable tips on menu design, pricing, and branding.
• Guides to kitchen setup, staff hiring, licenses, and budgeting.
• Marketing advice tailored to small and first-time restaurants.
• Free downloadable templates and worksheets.
• Early access to new tools and resources.
• Regular interviews and podcasts featuring successful restaurant owners.

The emails are short and filled with actionable steps to help open your dream restaurant. Subscribe and start your journey with expert opinion.