Every year hundreds of thousands of restaurants open with great expectations, and every year almost as many close down. The successful restaurateur is a combination of entrepreneur, entertainer, and magician. Your success in owning a restaurant will come as a direct result of solid business practices and your ability to entertain and satisfy your customers.
Learn from stories of successes ' and failures
Understand the industry and competition
Maximize your food savvy
Start and Run a Restaurant Business is a practical guide in how toa and how not toa proceed in this volatile business, covering the following:
Formulating a business plan
Budgeting and financing
Choosing a location
Designing a menu
Creating atmosphere through décor
Hiring and managing employees
Attracting customers
Start and Run a Restaurant Business will not only help you decide if you have what it takes to prosper as a restaurant owner but will also set you up to do so.
Introduction xvPart I: Evaluating Your Dream 11 Before You Start 51. The restaurateur as entrepreneur and entertainer 52. The menu 63. Trends 64. Types of restaurants 74.1 The gourmet- or fine-dining room 74.2 The family, mid-size, casual restaurant 84.3 The quick-service or fast-food restaurant 84.4 Social and contract caterers 92 The Structure of Your Business 111. The sole proprietorship 111.1 Advantages 111.2 Disadvantages 122. The partnership 122.1 Advantages 122.2 Disadvantages 133. The corporation 143.1 Advantages 143.2 Disadvantages 154. Franchising 155. Building your team 17Contentsvii3 The Business Plan: Feasibility Study 191. The business plan: An overview 192. The feasibility study 212.1 Target area analysis 232.2 Population profile 232.3 Economic profile 242.4 Competition analysis 252.5 Industry and tourism profile 272.6 Cultural, recreational, and sporting events 272.7 The real estate marketplace 273. Pre-opening marketing strategy 294 The Financial Plan 311. The capital budget 321.1 Hard costs 321.2 Soft costs 352. Investment plan 373. Financial statements 383.1 The income statement 383.2 The break-even analysis 433.3 The balance sheet 443.4 The cash-flow analysis 444. Resources 45Part II: Start-Up 475 Start-Up Practicalities 511. Naming your restaurant 511.1 Your own tastes 511.2 Marketing implications 511.3 Copyright 522. Registering your business 522.1 In the United States 522.2 In Canada 533. Trademarks 53viii Start & run a restaurant businessContents ix4. Obtaining licenses and permits 535. Insurance 546 Choosing Your Restaurant's Location 571. Finding the fit 572. Downtown versus suburban 582.1 Suburban 582.2 Downtown/City 593. Freestanding versus mall location 594. Zoning 605. Leasing versus purchasing 607 Design and Renovation 651. Building your dream 652. What designers can do for you 663. Design 664. Décor 675. Designing without a designer 686. A word about renovation 698 Equipment and Furnishings 711. Equipment 711.1 Sourcing equipment 721.2 New versus used equipment 721.3 Buy versus lease equipment 731.4 Kitchen equipment 731.5 Front-of-the-house equipment 742. Furnishings 752.1 Tables 752.2 Chairs 752.3 Other furnishings 782.4 Kitchen/bar small wares 782.5 Dinnerware (china, flatware, glassware, linen) 799 Your Employees 851. Job analysis, job description, and job specifications 852. Recruitment 863. Selection 884. Orientation and training 915. Policy and procedure manuals 916. Reward and discipline 957. Performance appraisals 958. Pay scales 969. Management communications 969.1 Log books and incident and accident reports 969.2 Managers' meetings 100Part III: Managing Your Operation 10310 Your Menu 1071. Types of menus 1072. Menu pricing 1083. Menu design and development 1094. Developing a wine list 1124.1 Wine pricing 1134.2 Designing your wine list 1134.3 Resource guide 11511 The Art of Service 1171. Keeping customers satisfied 1172. Service styles 1183. Front-of-the-house considerations 1194. Dealing with difficult customers 12012 Marketing 1231. Ongoing marketing strategies 1241.1 Advertising 1241.2 Sales 1261.3 Merchandising 1261.4 Public relations 1271.5 Promotions 1272. Professionals, and what they have to offer 1282.1 Sourcing the pros 129x Start & run a restaurant businessContents xi3. Building your marketing base 1303.1 A loyal customer is free advertising 1303.2 The role of service in marketing 1324. Increasing sales by using the five ""Ps"" of marketing 1324.1 Product 1334.2 Place 1334.3 People 1334.4 Price 1334.5 Promotions 1335. The restaurant critic: Friend or foe? 1346. Web opportunities 13413 Cost Control 1371. Keep control systems simple 1372. Standard recipes 1403. Standard purchase specifications 1434. Supplier selection 1435. Purchasing 1446. Par stocks 1467. Receiving 1468. Storage 1479. Perpetual inventories 14810. Issuing 15111. Service area control 15112. Cash control 15312.1 Cashing out 15312.2 Daily sales reconciliation 15412.3 Floats 15413. Till procedures 15713.1 Pulling the till 15713.2 Spotters 15813.3 Skims 15813.4 Counterfeit money 15814 Bars and Pubs 1591. Responsible service of alcohol 1602. Handling difficult situations 1603. Bar service and products 1623.1 Bar service 1623.2 Bar products 1624. Bar equipment and small wares 1644.1 Bar equipment 1644.2 Small wares 1654.3 Disposable goods 1664.4 Bar condiments and juices 1664.5 Garnishes 1665. Glassware 1666. Control Systems 1676.1 Mechanical controls 1687. Entertainment 1698. Advertising and Promotion 1708.1 Advertising 1708.2 Promotional strategies 1718.3 Public relations 173Conclusion 177Bibliography 179Checklists1 Business plan checklist 222 Market feasibility study checklist 283 POS system 764 Hiring/interview checklist 905 Orientation procedures 926 Floor training checklist 937 Analyze your readiness to start and run 175your restaurant or barxii Start & run a restaurant businessSamples1 Construction budget cost summary 342 Equipment list (Generic) 363 Income statement 394 Kitchen small wares 805 Job description 876 Job specifications 887 Job ad 898 Performance appraisal 979 Meeting agenda 10110 Standard recipe 14111 Food cost form 14212 Purchase order 14513 Inventory 14914 Perpetual inventory/bin card 15015 Server cash-out sheet 15516 Bartender's summary 156Worksheet1 Competition analysis 26
