Want to open your own restaurant so you can share your recipes and passion for cooking with others? What you need is careful planning and dedication. This article guides you through the process, from concept development to the opening and everything involved in running your restaurant. We explore all the ins and outs. All the best with your new business!
Opening a restaurant: a practical guide
Develop a unique concept
Take a look around and you'll see restaurants everywhere, especially in city centres. So, you'll already be aware that this is a competitive industry. How do you make sure that potential customers choose your business, and more importantly, keep coming back to you? The answer is in your concept. And the more unique, the better. Don't think we mean that you need to serve food no one's ever heard of. There are many ways to differentiate yourself with your dishes, experience, hospitality or even a combination of many factors.
For example, there are Korean barbecue restaurants where guests prepare their own meat, fish and vegetables on an integrated table barbecue or a French restaurant that serves small gourmet dishes with wine pairings to leave guests wanting for nothing. Or the Karen's Diner concept, where an uncomfortable dining experience awaits, something that other restaurants wouldn't dare try — and yet it works. If you muddy your concepts, they won't work.
A strong concept requires you to choose a target group. Families, business partners, companies, young people... The possibilities are endless. So think about who you want to convince with your new concept. Then research what they are looking for. To do this, answer the following questions:
What is this target group missing?
What does this target group find important?
What is the budget of this target group?
Finding the answers to these questions is sure to lead you to a unique concept. Have multiple ideas? Ask your target group. They are sure to appreciate your interest in their needs. Want to find out more about this? Read our blog article about unique restaurant concepts.
Write everything down in a business plan
Decided on a concept? Great, now it's time to draft your business plan. Include the following aspects:
Mission and vision: what is your mission and vision for the future?
Objectives: what are your long and short-term objectives?
Company name: what is the name of your restaurant?
Ownership structure: information about the owners and their shares in the company.
Type of restaurant: this is your concept.
Market analysis: who are your target customers?
Competitive analysis: who are your direct and indirect competitors and what are their strong and weak points?
Market trends: current trends in the hospitality sector and how will your restaurant adapt to them? (tip: read our blog articles about food trends)
Menu: an example menu with prices (tip: read our blog article on calculating and optimising food cost percentage to determine your prices)
Special services: catering, delivery service, special events etc. (tip: read our blog article about boosting your turnover with ordering and delivery platforms)
Marketing strategy: how will you attract customers to your restaurant? (tip: read our blog article about marketing for hospitality businesses and social media marketing for culinary entrepreneurs)
Operational plan: suppliers and personnel plan.
Financial plan: startup capital, costing, expected turnover, profit and loss account, cash flow etc. (tip: hire an accountant to draft this plan)
Risk analysis: SWOT analysis and risk management.
Important to know: this list is just a summary of the elements your business plan should contain. Always consult the right professionals, like an accountant or social secretary, to get the full information.
Determine your location
As well as a concept, you need a good location. Therefore, pick a location that's easy to reach and/or has parking spaces or set up your business in a city centre. Ideally there shouldn't be any direct competition in the area and be sure to check whether you are permitted to serve food outdoors.
You'll find that buildings located in city centres are more expensive but have more passers-by and therefore attract customers more easily. Certainly when you make a good first impression with your menu.
Administrative tasks
When you open a restaurant, it's important to ensure you have the right permits and licences. A few crucial things to arrange:
Find an accountant with experience in the hospitality sector: pick someone you trust. A good accountant can contribute to the success of your business. Your accountant can also help you choose the best business structure for your restaurant.
Visit a chamber of commerce: apply for an enterprise number and a VAT number, so you can rest assured you are doing things by the book. A chamber of commerce can also give you advice on food licences and registering with a social insurance fund.
Open a bank account for your restaurant: it's very important to keep your personal and business finances separate.
Sit down with an insurance broker: protect yourself by getting the necessary insurance coverage. An insurance broker can advise you on this. Explain your plans in full. For example, if you want to run a market stall or offer catering, you'll need extra insurance.
Work with a social secretariat: will you be hiring staff? You'll need to meet certain obligations. A social secretariat will make sure everything is in order.
Important to know: this list is not exhaustive, it's just a rough guide. Your chamber of commerce, insurance brokers, accountant and social secretariat will ensure you dot all the i’s.
More tips and tricks for opening a restaurant
La Lorraine Bakery Group has more than 85 years of experience in the milling and bakery sector. We know the sector better than anyone. Our experts are happy to share their tips with you. Here are some blog articles that may interest you:
Measuring and increasing customer satisfaction
Putting breakfast on the menu at your business
Summer-proof your menu
Serving burgers at your restaurant
Italian concepts
Create an appetiser board
How do you prepare for peak times?
Optimising your restaurant menu (margin)
Appeal to every target group with your menu
Gourmet coffee
Good dessert presentation
Sustainable entrepreneurship in the hospitality sector
Looking for a reliable partner to support you with products like breads, patisserie, viennoiserie, savoury snacks and sweet snacks? We have everything you need. Request a product catalogue or contact us for tailored advice.
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