How to Become a Restaurant Owner

Want to put up money in a restaurant? Familiarize yourself with different types of restaurants, check how many investments each type requires and what profits it can make.
How to Become a Restaurant Owner

Restaurant business today enjoys at investors the big popularity. At the first, definition of the size of the future investments in an eatery establishment, experts recommend to start with calculation 1000 dollars for one square meter of a premise. At the competent approach to management if all will go under the plan, in four months after opening your "child" growth of a turn will start to increase. And year through 1,5-2 (it is an average time of recovery of outlay of restaurant) you will start to get a profit. The minimal profitability in this business makes 20 %, average - about 25 %, and in case of success it can reach 50-60 %.

The sizes of investments and the future incomes depend on a level and scale of business: you can open a restaurant in classical sense of this word, and simply bar or cafe. There are also various combinations of type such as a cafe-bar, a bar-restaurant, etc.
However, modern experts use a little bit other gradation: elite, restaurants for middle class, or as them still name, "an average hand", and fast foods. We shall note also, that besides usual bars and the cafe special type of eateries - coffee houses exist.

Elite restaurants distinguish refinement of an interior, a high level of comfort, wide assortment of original, custom-made and firm dishes and drinks and, certainly, the high prices. Restaurants of an average hand for more moderate money also offer visitors various enough menus. Fast foods give the standardized set of dishes, and for them self-service, as a rule, are characteristic.

For interested persons to become owners of restaurant there are two ways: to purchase ready business or to invest money in creation of business "from zero". For those who wish to get restaurant and to embody in it the idea, the vision of the future institution, the second variant more approaches.
 If you had an idea to get ready restaurant, but all of you equally be going to break and reconstruct in it all in your own way, economically it is more expedient to adjust business from the very beginning. All over the world it is accepted to begin with creation of idea under which then look for a suitable premise.

Recently many not profile investors begin work above restaurant with carrying out of marketing research. It is done to determine, what type of an institution will be most effective from the financial point of view in a concrete premise. Whether the created concept will enter the conflict to the market validity?

To cope with this problem, it is necessary ask experts for the help. They will carry out research, investigate corresponding parameters: streams of people in immediate proximity from a premise, a competitive environment, the basic buildings and constructions near to the future restaurant, convenience of an entrance, presence of a parking, an opportunity of external registration; find out approximate structure and solvency of potential clients, investigate competitors, their concepts, design, attendance, clients, work of the personnel and "the average check". It is important to understand in advance, what opportunities are given by the advertising market and how it will be possible "to advance" the future institution.
On the basis of the analysis of the collected information it is formed one or several conceptual decisions most suitable for a specified place which are offered on consideration to the client. Carrying out of such research by experts will cost 3-5 thousand dollars, drawing up business-plan for two years forward by results of research - 500 dollars.

Certainly, having similar marketing research to be mistaken it is almost impossible: you any more will not open elite restaurant in absolutely "sleeping" area or, for example, a fast food in a place where dinner and men of means have a good time and there have traditionally is all preconditions for reception of higher incomes.

How much the level of profitableness of the enterprise depends on its class and from initial investments? We shall recognize that an institution it is located in a "correct" place and you were not mistaken with a choice of a niche and positioning. For the beginning we shall examine stationary fast foods.

Correctly located restaurant for an "average" class can bring to the owner on the average from 100 up to 350 thousand dollars a year. And by some expert estimation, its maximal annual profit is capable to reach 500 thousand dollars. On it opening on the average it is necessary to spend 200-250 thousand dollars.