3 Big Money Tips For Restaurant Owners To Know

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money tips for restaurant owners

If you are a dab hand in the kitchen and you have more culinary flair than you can shake a stick at, you may be tempted to enter the world of restauranteurship. While you might think it’s all about creating the perfect menu, honing your gastronomic fayre and seducing potential diners, there is a huge financial foundation that needs to be secured before you even begin to think about opening the doors of your restaurant.

Take a look at these financial considerations you need to be aware of before you cook up a jus.

Premises

Where you situate your restaurant is vital to the clientele you are hoping to attract. For a hip dessert bar or bohemian vegetarian bistro an inner city, achingly cool suburb would be the location of choice. Rents here will be on the more expensive side, so you will need to consider the square footage of the dining area and the kitchen carefully. Smaller venues can feel more exclusive and give your restaurant instant kudos should you make a name for yourself quickly.

For eateries of a more homely vibe, an out of town premises may be viable. These are infinitely cheaper and do not carry the same premium as a city center location. Families may be attracted to dine at your restaurant giving you the opportunity to secure repeat custom and a loyal dining base.

Ingredients

It would be nonsensical and financially dire for you to obtain your ingredients from retail establishments and supermarkets. These target the end user of produce, not any form of trader. Instead, you should be keeping an eye out for companies that specialize in sourcing for suppliers of quality fruit and vegetables and herbs.

By going directly to the farmer and purchasing ingredients from all over the globe, you are cutting out the middleman. Trading directly can save you a small fortune which could see you unnecessarily eating into your profits.

Menu Design

You need to formulate your menu carefully so that each dish is turning a suitable profit. Percentage wise you should be looking at making 75% or more on any starter, main or dessert ingredients. While this might sound like a lot, you need to consider your overheads such as utilities, rent for your premises and staffing.

Restaurateurs tend to make most of their money on wines, making up to 300% on trade cost. It’s vital that you do the same to allow you to experiment in the kitchen, purchase the finest ingredients and offer something new to the foodie market.

Setting up a restaurant is fraught with difficulties. Competition is fierce and savvy diners have better palates than ever. They won’t think twice about leaving a savage review online if the service is not up to scratch or if the food is sub-par. You need to provide people with something new for their taste buds so that they tell their friends, shout about it on social media and enhance your reputation as the place to eat.

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