What do I need to do to open a successful restaurant business with no business and restaurant experience?

Question

I love to cook and I have a great idea like no other restaurants in town. My problem is NO KNOWLEDGE OR EXPERIENCE. Any suggestions to get started?

Answer 1

The best routes to take are to research the process of starting a business as well as the industry you're interested in.

I recommend checking out the SBA, Entrepreneur, The Start Up Journal & Nolo. All 4 are great informational resources for the new/small business owner. I posted links for you in the source box.

Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:

* The Restaurant Business Start-up Guide by Paul Daniels
* Restaurants That Work: Case Studies of the Best in the Industry by Martin E. Dorf
* Restaurant Financial Basics by Raymond S. Schmidgall
* Opening a Restaurant or Other Food Business Starter Kit: How to Prepare a Restaurant Business Plan and Feasibility Study by Sharon Fullen
* Upstart Guide Owning & Managing a Restaurant by Roy S. Alonzo
* The Restaurant Managers Handbook: How to Set Up, Operate, and Manage a Financially Successful Food Service Operation by Douglas Robert Brown

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 2

My family had two restaurants for over 20 years. It's a very tiring and tedious business if you don't know how to manage people. We owned a Coney Island and an Oriental Cuisine Restaurant.
The State Rules and Regulatioins on sanitation and food handling is a PAIN IN THE *** if you don't learn and follow them well. They can close you down based on this. You have to attend and pass several required seminars to be able to start.

I would suggest though, to focus on who are your customers, the location, the type of food you'll be offering, and ask yourself if you have good management skills because this is a service type of business.

I have a good friend who has a restaurant but specializes on a certain cuisine. He's the chef, so, it's not much of a problem. His restaurant is somewhat classy with an average of $30 per plate. Now, considering that all in his menu are expensive, his place is packed most of the time. Why? Because he offers something different to the palate. Something you cannot order or buy at a Coney. This is something to think about, what kind of restaurant you want to open.

Try to learn as much as you can. My family sold the restaurants 5 years ago and we were much happier.

Again, I have to stress that good management skills is a key. You cannot manage a restaurant by yourself not unless you want to be a slave of your own business.

Answer 3

Get some... knowledge AND experience.

Experience- (you can buy or earn this on your own)
Buy it- find a partner with the funds, interest and experience. Earn it- find a restaurant similar to your idea, and start working there. Learn ALL the positions and duties- busing, dish-washing, cashier, waiting tables/order taking, cooking, managing, ordering supplies, etc.

Knowledge-
Take courses at the local university or community college or even vocational center (Remember- you're not looking for a degree- you just want the knowledge). Accounting, Business finance, Business management- This is a business, after all! Also, if there's one on Entrepreneuring or starting your own business, that would be excellent!! Also a cooking or Restauranting course may be helpful.

If your idea is a mix of businesses, also get a job with that other type of business... My husband wants to some day open a dinner theater... for that example, work in a restaurant AND at a theater... again, learn all the positions and duties...

Answer 4

Yes. My experience with a new business is that people that are suppose to be your friends will take atvantage of you at all times. We have had a successful Motorcycle Business for 4 years now and our problem is this, the company sold almost $300,000 in sales and my husband only has 300$ in his pocket right now. That does not seem right does it. Well over many arguments and very frustrated days and night of no sleep, He has to become an asshole and start collecting money owed to him be these supposedly called friends that get a service done and do not expect to pay or just say "man i'll come back by and pay you on Friday" They dont though is the problem. So be very careful and consistant with "giving away" to friends and family, they will start to expect it. Atleast charge what you pay for the food and supplies plus maybe a 5-10% profit instead of 50%profit. The first 1-2 years is the hardest. One person can do it all but if you have a family they will suffer the stress too. Hope this helps.

Answer 5

About 60% of restaurants close within the first three years. If I had to guess at a reason, I'd say it's because people think that all it takes is being a good cook. In reality, it takes money and it takes time.

As for the money, you'll need a large cash outlay to outfit the kitchen and the dining room. You have to be able to pay your suppliers, usually well before you ever prep, serve, and sell the food. You'll also need multiple licenses, inspections, and certifications, because you'll be in a position of handling other peoples' food. Oh, and the taxes. Thoes can be hefty. Bear in mind also that unless you get some good publicity, business probably won't be all that good at first.

The single biggest thing you'll need, though, is time. In all likelihood, you will need to spend your every waking hour in that restaurant, cooking, supervising employees, shutting down at the end of the day, doing repairs, or keeping the books after everybody else has gone home. That, I think, is the one thing that people really underestimate about being your own boss. In any occupation, a self-employed person can expect to put in 12-16 hour days, every day of the week, for several months or years until the business is stable enough for you to take time off.

Have I scared you away? No? Well, people succeed in this business every day, so if you still want to take the plunge, go ahead. But do your research.
* Look into locations. If there used to be a restaurant at one of your preferred locations, try to find out why they closed.
* Assemble a menu, figure out your pricing, figure out who your customer base will be. If you're going to specialize in quick and tasty lunches for office workers, you're probably best off downtown, and operating only Monday-Friday.
* Pick a theme, and stick with it; if you're planning to offer burgers and sushi and burritos all in one place, you'll have three mediocre menus, which will drive up your food costs (especially spoilage) and make it hard for the cooking staff to keep up.
* Although you don't necessarily need a degree to work the kitchen, diners at a more upscale restaurant will expect it. They'll want to know that you've gone to culinary school and learned the craft, or that you hired somebody with the proper pedigree.
* Once you're open, keep it clean, maintain quality, and listen to your customers. They are the reason you're in business, and they can shut your business down if you consistently disappoint them.

Answer 6

Sorry but you are just setting yourself up for failure if you try to go into the restaurant business with neither restaurant nor business experience. In general restaurants tend to have a very high failure rate.

My suggestion would be to go to culinary school or if that's not an option get an AA in business at your local junior college or at the very least take some business courses.
While you are going to school get a part time job at a restaurant even if it is as a waiter/waitress or dishwasher so you can see how things run on a day to day basis.

In your spare time watch a lot of the Food Network shows to help gain some extra cooking knowledge.

Good luck!

Answer 7

You cannot be successful with no experience. You need to work in a restaurant for at least a year to learn the business. You can't go into it blind.

Being a good cook does not make you a good business man. More than 90 percent of non-chain restaurants fail within 5 years.

Answer 8

I would suggest you work in a few restaurants for a while. This will give you an idea of the day-to-day running of a restaurant.
Some colleges and universities offer courses on hospitality- restaurant and hotel.

If you already have a job and just want a "feel" for the profession, maybe you could "shadow" a restaurant employee? Also, interviewing owners, chefs and wait staff may help.

Many restaurants fail in the first year. You will need to get lots and lots of experience before you get started.

Partner with someone who is knowledgeable in the field. It would be a shame if you did a lot of work and have it all go "belly up."

Answer 9

To open ANY type of business with NO knowledge or experience in that business is foolhardy to say the least. The restaurant business in particular is one of the easiest to FAIL at even when you DO know what you are doing. Your help is going to steal you blind unless you know how to manage the business.

The only thing to do is keep your great idea to yourself (so no one else will steal it,) and go and get a job working for someone who is running a successful restaurant. While you are there, work hard (a given) and keep your mouth shut and watch and learn. After a year go and get another job at another successful restaurant and do the same. Then you MIGHT be ready to risk your money on your own place.

Answer 10

Get a job as a cook in a restaurant much like the restuarant you'd like to own. Keep your eyes open and take notes on how you would run the restaurant to make it better. Take notes on what works great. Ask if the manager will feature some of your best dishes for their daily specials. See how all this goes. If you've got the money, offer to by the owner out and put your experience to work. Be ready to work 24/7.