Are you thinking about expanding your restaurant portfolio? Are you READY to open another restaurant? Whether you are opening another location or branching out to create a restaurant unlike anything you currently have, research, dedication, and a well-thought-out plan is crucial.
Considerations Before Expanding Your Restaurant Portfolio
Ask yourself a few questions prior to making your decision:
- Are you willing to invest the hours it takes for another successful restaurant?
- Is your current restaurant so busy that you can’t handle the crowds?
- Do your customers travel from a distance to visit your restaurant?
- Do you have funding?
- Will opening another restaurant increase your capital?
Steps for Opening a Successful Restaurant
If the answers are yes to the above questions, you may be ready and should consider each of the following steps as you expand your restaurant business.
Finalize Funding
Opening a restaurant will certainly require capital. After developing a budget to determine the amount of capital needed, will you be funding the new business yourself, taking on outside investors, or utilizing business loans? Any route taken will need careful consideration and planning as each come with their own set of pros and cons. It’s highly recommended that you do NOT utilize funds from your current restaurant to open your new one – in fact, you should make sure your current restaurant is in good standing and financial health before jumping to start another location.
Location, Location, Location
Finding the right location for your new restaurant is one of several key elements to its success. You’ll want to consider things such as distance from your other restaurant, understanding the area and its demographics, your potential competition and the demand for your proposed concept.
Develop Business and Marketing Plans
Using your experience within the restaurant industry and advice from your inner circle, consider whether you can duplicate processes, systems and marketing tactics from your other restaurant to make things easier. Develop your plans and operations in a way to accommodate future growth and scalability. Understand the location and your target audience to develop the marketing plan in the most effective way.
Hire the Right Management
Owning multiple restaurants may come with increased hours of work. Surround yourself with the right management teams – you cannot be two places at once. Empower and trust the manager at your current location to have success in running and managing the restaurant operations. Make sure the management team has a good, trusting relationship with your employees, and understands the high quality and service expected. You will still want to check in several times a week, but you will likely spend more time and energy at the new restaurant in the early stages.
Purchasing Equipment, Supplies & Inventory
It may be easier the second time around, but remember to measure your space prior to purchasing equipment, appliances, and furniture. Make sure you are set up in a way that utilizes your space properly, creates efficiencies in the kitchen and creates an atmosphere to enhance your guest experiences. Consider using similar types of equipment and the same vendors/suppliers to create consistencies and economies of scale.
The Anders Lodging, Food and Beverage Group will work with you not only on tax planning and compliance, but will also assist with business decisions and analysis of restaurant operations and cashflow. Contact an Anders advisor to discuss our services that can help your restaurant.
