From a Single Restaurant to a Chain

September 19, 2009 | Filed Under Money

A lot of you readers are bound to be talented in the kitchen. It is likely that several people in your life enjoy this food. Don’t you think, then, that other people will enjoy it, too? You should start a restaurant!

You might be thinking of how many restaurants fail. Most do, right?

Absolutely they do. It is not surprising that most restaurants fail. However, this does not mean that your restaurant will fail, and it does not mean that you should fear it will fail. Just because ninety percent of restaurants fail does not mean you have a ninety percent chance of failing. Most restaurants fail because they are started by incredibly talented chefs. These chefs, most people think, are the best ones to start a restaurant. That’s where most people are wrong, and that’s why most restaurants fail. That’s because these failing restaurants are not started by excellent businessmen. You, of course, are going to be a businessperson.

Haven’t you noticed that restaurants with mediocre food sometimes thrive and turn into giant chains, while restaurants with excellent food go under? This shows us that the success of a restaurant has little to do with the quality of its food.

So, stop improving your food; don’t make the same mistake that most restaurant owners make. Think about it; if people like your food when you cook at home, then people will like your food in your restaurant. Your food is good enough. Stop worrying about it. You need to focus on the rest of your restaurant.

If you already feel that your food is tasty enough to belong in a restaurant, then your food is tasty enough to belong in a restaurant. Forget the food. Move on to the rest of the business.

Do as many of the jobs in your restaurant as you can. Every job you do is another job that you don’t have to spend the money to hire somebody to do. You’ll eventually want to hire all of them, but now you have limited funds. Do as many as you can.

You’ll try to do most, or as many of the jobs in your restaurant as you can. The more jobs you do, the more money can be put back into your company. Eventually, however, you will hire out the work you are doing. For now, though, do as much as you can.

Someday, an employee will take over every job that you’re doing. You’ll need a system for him or her to follow; you need to create an instruction manual for each job in your restaurant. That’s the main reason most restaurants fail - they have weak structure.

Eventually, you will have an employee doing inventory; you need instructions written down so that they know what to do. The lack of structure in a restaurant is the primary cause of failure. A tall building cannot be built with a weak structure. Likewise, your restaurant cannot be built with one.

We move on to your suppliers, as you need supplies to run your restaurant. Obviously, you should find the cheapest supplier who still fills your needs. Most restaurant owners, however, are lazy here. If you put in a good amount of work, you will be able to find a good deal.

On we go to advertising. You simply must advertise. You must. Newspapers are good, and so is television. However, stay away from television while you have little money - it won’t be worth it. Local radio can be good if you can afford it. Systems are a must. Every area we just mentioned needs a system. Without firm, strong systems, your restaurant will survive, but it will not grow.

Imagine your restaurant is a building which you have yet to build. You start with land, and you pour a foundation into it. Any cracks in the foundation will get bigger with each floor you add on to the building. A foundation with lots of cracks might only support a two story house. If your foundation is strong, though, you can build a skyscraper….a huge chain of restaurants!

Cody Scholberg is an expert on entrepreneurship and writes for Many Money Making Ideas, THE place to get your ideas to make money. If you have a small budget, learn how to create a financial empire with smoothies.

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