An instructor at culinary school posed this question to myself and my fellow students: What is the quickest, easiest way to amass a small fortune in the restaurant-ownership business? Students bandied about many answers. But the truth? The easiest way to gain a small fortune in restaurants is to begin with a large fortune. Nine out of ten new restaurants fail. Failures can be due to anything ranging from a bad location to insufficient (or over-sufficient) staffing to incompetent ownership.

Yet, in the era of the celebrity chef and Food Network, many people continue to dream about opening their own restaurants. Perhaps one is a socialite who is constantly receiving rave reviews about his or her food at dinner parties. Maybe it is the small-time fry cook who simply KNOWS that he can do it better than his overlords. Another might be the celebrity with too much money burning a hole in his pocket, itching to have a place where he can relive his "Casablanca" fantasies. Regardless of why one chooses to open a restaurant, only with a deep understanding of the foodservice industry and a solid, pre-planned concept for the new restaurant will a prospective owner have any chance of entering the ten-percent Valhalla of successful restaurateurs.

First, as with any nascent business, it is crucial to have a business plan in place before breaking ground. This plan must entail several key areas: where the restaurant is to be located, what type of food will be served, what level of service will be offered, how the restaurant floor will be designed, where the kitchen will be located, how the restaurant will be marketed...etc. It seems obviously unintelligent to the level-headed, but woefully brilliant to too many restaurant owners, to open another pizza joint beside Dominos or a high-end steakhouse between Morton's and Ruth Chris. Too often people believe - erroneously - that opening a restaurant simply entails finding a space and cooking some food and getting it to the table. But, without a deeper understanding of the requisite permits, finances, staffing and inventory which come with the territory of owning a restaurant, and the competition in the near vicinity, the prospective owner is inevitably doomed to fail.

Next, unless his or her last name happens to be Rockefeller or Gates or Vanderbilt, the prospective restaurateur will have to pitch this business plan to potential investors. This is where an iron-clad business model is crucial. This business plan must

• 1
• 2
• next page >>

---

Add your voice

Know something about How to start a restaurant?
We want to hear your view. Write now!