Running A Restaurant

Restaurant is where everyone goes to have good food, spend some time relaxing in a relaxing environment, but not everyone at the restaurant is having a great time and not all of them are there to enjoy, the staff, workers and managers are there to serve and do their jobs, running a restaurant successfully is one of the most challenging and somewhat daunting task because of the number of things that they have to put right, and it is said that in the restaurant business the margin for error is close to none, customer appreciation is everything and once rejected it is really very hard to retain the lost goodwill.

There are a couple of really significant things which can decide the fate of your restaurant, some of the things are much under your control while some external factors are not so controllable but you can minimize the impact on your business, customer appreciation is among the most important things in a restaurant business and it is not that easily gained as well, a customer would only visit your restaurant again if they find food, service, ambience and environment right up to the level.

restaurant-business-plan-v1-532Among all the other entertainment and luxury businesses, restaurant business is among the top in which the customer is really demanding and wants no error, they would just turn their back on you even if a thing goes wrong once, or even if you have good food but your service is not up to the par. And an owner must also be mindful of the location of the restaurant because it bears huge significance and people really consider where the restaurant is actually located. The importance of location in this particular business line is extremely important.

These are some of the most common and obvious things that any restaurant owner would consider, but along with all these things there are a couple of other things that customers deem necessary which include parking lot, rest rooms, impeccable dining rooms and distant kitchens, nobody likes the heat and the visible ingredients near to them when sitting and enjoying their food.

If you have just your restaurant or if you intend to start one anytime soon then the best planning you can do is by observing through customer’s eye, put yourself in their shoes and ask yourself what would you want when you step into this restaurant, and the entire theme and ambience of your restaurant or the dining hall must compliment your food and style, that is very important, you must be aware of this because a Chinese restaurant has a completely different outlook to a classic American steak house.

I have tried to give an overview of all the things that a customer looks at in a restaurant and if you even get most of it right then your customers would find it hard to reject you, there are many training courses and drills on restaurant and food place management along with hotel management which might help you understand the entire operations of a restaurant.

Common Issues In A Restaurant Business

A restaurant business is complex and dynamic and it is also among the most successful businesses anywhere in the world, if you can provide quality food and provide an atmosphere where people can have a good time then it is more than a possibility that you will have a successfully running business, but since this business has a lot of things that you need to put right.  When you are at the early stages of starting a restaurant you may face a lot of issues in all the areas of the business, the best approach you can have is to categorize the nature of the work and either delegate the work or manage the time allocation accordingly, The entire work of a restaurant will include, first of all, the in-house work which includes all the kitchen requirements, dining hall and the serving, the supply chain of produce and other necessary things, the marketing part, the working capital management, the administration and accountancy. A medium sized restaurant’s work is not more complex than this unless you grow into a chain of restaurants and get huge recognition, and you decide to go listed or open franchise which may also go overseas, that is a different work requirement, but as far you have a medium sized hotel, getting the in-house requirement, the marketing and supply chain right would do the trick for you.

restaurant-working-capital-money-on-plate-fork-knifeMostly hotels are owned by businessmen who have little knowledge of the financial management strategies and working capital issues, either they must hire some professionals to deal with this area of requirement or they must develop some skills themselves to cope with it. What you need to have in order to make your restaurant a very well financially managed restaurant is the use of an accounting system, forecasting and financial analysis at quarterly, six monthly or at annual basis, cash operating cycle review and proper recording of stock in stock out of the ingredients, which is managing the supply chain.

Most of the medium sized businesses face working capital issue, if you have no knowledge of this then you must know that working capital is the daily day routine cash which is required to carry out the operations of a business, the invested capital is not in your hands to spend but working capital is cash you need to run the business and pay off the daily expenses, most people find it hard to manage working capital and that has been the reason of their restaurant’s downfall. Managing the financial side is as important as serving good food on a plate to your customers but unfortunately a significant number of restaurant owners seem to neglect it and do not give much importance to the expense recording, cash cycle reviews and other major analysis that really predict the foreseeable future of the restaurant.

If you have started your own restaurant make sure that a proper accounting and recording system is present and you are constantly aware of the analysis, forecasts and other important things of the restaurant as well.