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Assignment on Set up A Restaurant
1. Table of Content
7 Consideration Opening a Restaurant
Planning
Blue Print
Develop a Business Plan
Location
Target Market
Organizing
Create Menu
Get Funding
Leading
Communicating
Motivating
Inspiring
Encouraging
Controlling
Regulative Controls
Financial Controls
Quality Control
Work in a Restaurant
Know Your Select a Service Style and Food Concept
Develop a Business Plan
Create a Menu
Choose a Location and Layout
Get Funding
Be Familiar With Safety Regulations
Hire Employees
2. 7 Consideration Opening a Restaurant
1. Decide on a Concept
Design a hypothetical menu and make sure its something you have knowledge and
passion for. What are your price points going to be? What is socio-economic
demographic who can afford these price points? Then find a neighborhood where the
earning demographic can support the price points of your concept.
2. Do Some Market Research
Find out how many households per restaurant are in your eligible price point range
neighborhoods. Find out how many restaurants sell the same thing within 5 miles of that
neighborhood. Find out the ratio of residential housetops within 5 miles and how many
businesses (large and small) within 3 miles (5 minute drive). These numbers are critical
to determining whether you have a better shot at breakfast, lunch, dinner, catering, etc.
3. 3. Go on the Fantasy Location Search
This is where you get to have fun and taste the dream a little bit. This is also where reality
has a chance to rear its ugly head. Go visit commercial real estate offices in your selected
neighborhoods and get tours of available properties. Don’t get too romantic about any
location: You’re still weeks, if not months away from being ready to even consider signing
a lease. This is purely a fact-finding mission.
4.Telemarketing for Local Service Providers
Call pest control, equipment and refrigeration service contractors, linen services,
dishwasher/chemical service companies, and, most importantly, business insurance
providers and city and county governmental fees & licensing departments toget monthly,
quarterly,and annual costs. Then call your local bar and askthem to double your monthly
tab; you’ll be needing a lot more to drink.
4. 5. Build Your Model Restaurant
Get out the old Excel spreadsheet or your favorite college ruled legal sized writing pads — restaurants are
never successful when drawn out on standard writing pads.List all your gathered information in a monthly
and quarterly format and extend for one full year, then multiply the monthly number by 1.5. This will
anticipate forgotten or omitted data and predict price increases in utilities and expenses throughout the
year. These figures represent your fixed costs for the year.
6.Add Staff and Food to Determine Sales
Let’s figure, in your first year you will run high food costs (40%) and high labor
costs (30%), while you figure out customer flow, proper ordering, and scheduling. So
multiply your fixed costs by 2.4 and this should give you your total monthly operating
expense. Yes it’s very high, but, let’s face it, you might be too for wanting to open this
place! Now, divide your total monthly expenses by your average dish price point, distill
5. that figure down to weekly and daily expenses, and this will tell you basically how many
customers you will need to be a success.
7. Panic!
If this figure scares the bejesus out of you, then go back and repeat steps 1
through 6 until you find a concept and expense profile you can live with.
Thisisthebest way toget realabout thepossibilityofopening a placeofyour
own. This virtual model is then whittled down to create your profits by
controlling those costs and adding sales volume. The next things to think
about arethe role of a consultantsinthis process, locationand design, start-
up and marketing costs, and, probably the most difficult issue, funding and
finance. Pleasefeel freeto drop me a messagein thecomment sectionbelow
and ask me any questions you may have.
6. Planning
Our Planning of Restaurant consist based on some
factors such as:
1. Blue Print of Our Restaurant
7. 2. Develop A Business Plan
We have emphasis upon our target sell. And motivate our
employee enoughto get fulfill their targeted sale. Especially in the
occasion we have to extra concern on sale and be careful about
guest service.
Planning is an ongoing step and can be highly specialized based
on organizational goals, division goals, departmental goals, and
8. team goals. It is up to the manager to recognize which goals need
to be planned within his or her individual area.
3. Our Target Market
Teens, students and young adults
Maintain a Website
Focus on Value
Implement Viral Market
Choose Music Carefully
Families and children
Make the adults comfortable
Train servers to be polite and patient with children.
Make sure changing stations, high chairs, sippy cups and bibs are
readily available.
Provide children with toys, crayons and paper at the table, but only
after asking permission from the parents.
Give families an oversized table to allow them enough room to spread
out. For example, if a family of four comes in, seat them at the table
for six.
Seniors
Retirees Have Money
Senior Citizens like Having Fun
The Population is Growing
Empty nesters
Tourist
9. Distribute Paper Momey
Offer good parking
Take away service
Vegetarians
Eco-conscious people
Business people
Sports fans
Gay community
After-bar crowd
Happy hour crowd
To increase sales during slow hours.
Toattract customers who might not otherwise try your restaurant.
Toshowcase your appetizers and/or drinks at a good value.
Toencourage customers to associate your restaurant with “fun.”
Toattract a specific market during a specific time. For example, you may
use a Happy Hour to target Sunday football fans, businesspeople getting
off work, the weekend brunch crowd, etc.
Lunch break crowd
Discount for large parties
Social Media
Offer delivery to local Business
Music lovers
Restaurant Marketing
10. Promotional Flexibility:
DairyQueen beganimplementingdigitalmenu messaging becauseit offered
the flexibility and capacity to promote over 47 different menu types. The
result showed that in most cases, items featured on digital signage boards
increased in sales from year to year.
Improved Sales:
Digital menus can play an especially important role in improving sales in
this, the digital age of communication. Wendy’s restaurants have also seen
sales improve by 12 to 13 percent in restaurants with digital signage in
comparison to those with traditional signage.
Tablet Menus For The Table:
While digital menu boards and signage have been helpful in quick serve
restaurants, digital tablet menus work especially well for sit-down
restaurants. Theseitemsareuseful for manyof the samereasons mentioned
above, but the concept of handheld or tableside technology can make more
sense in a fine dining or sit-down restaurant. Many customers are already
accustomed to using iPads and other handheld devices in their everyday
lives.
11. Exciting Interactivity:
When restaurateurscancomeup with creative, attractivegraphicdesign
and then placeit in the customers’hands to explore, the dining experience
becomesmore interactive. Customersmayeven be ableto offer comments
or input marketing data onthe spot, yet without feeling pressured.
Interactivitycanmakethe customer feel more involved during thedining
process, and may even improveloyalty.
Improved Communication:
Wired magazinesuggeststhat placing iPadsinthehands of customersisthe
best new way to promote restaurant marketing and menu communication.
The trend is most often seen in forward-thinking fine dining restaurants.
These typesofmenusaredesigned toimproveinternalmenu communication
in ways like these:
Better visibility. Tablets are bright, with clean design and manual
zooming abilities, excellent for dimly lit dining rooms or anyone with
poor eyesight.
Searchable. The menu is scrollable and searchable, making it easy to
look for particular items. This is especially useful for a menu with a
lengthy wine list.
Easy alterations. When the restaurant runs out of a daily special or
wants to update a certain item, the digital process can make this look
nicer, cut down on printing costs, and eliminatedisappointmentwhen
something is sold out.
12. Restaurant Management & Operations
ActualUsage
The amount of food product and suppliesthat arephysically used in a given
timeperiod.
BackoftheHouse (BOH)
The area of therestaurant or food serviceoperationthat customerstypically
do not access, such as the manager’soffice, the kitchenarea, the storage
areasand the employee breakroom.
Build-to-Amount
The amount of a certainproduct therestaurantshould alwayshave on hand.
When ordering, managersessentiallyneed to build their up inventory to the
appropriate build-to amount. This is another term for par level.
Cash Flow
The movement of moneys withina restaurant business, specificallyincome
and expenses.
CasualDining Restaurant
Full-service restaurants are geared more toward the every-day dining
experience. Thedécor, food and servicetends to be moreinformaland often
more family oriented than fine-dining restaurants.
FIFO
The first-in, first-out method of rotationused in restaurantstoavoid
expirationbyusing up older productsbeforenewer ones.
13. Full-Service Restaurant
Operationsthat offer guests completetable serviceincluding seating guests,
taking beverageand food orders, delivering food and clearing the table.
These restaurantsoftenemploy hosts or hostesses, servers and bartenders
to deliver full tableservice.
Inventory
The physicalfood, beveragesand supplies therestaurant hason the line or
in its storageareas.
Menu Price
The selling pricefor a restaurant’sgoods, often obtained bytaking the food
cost of the menu item and dividing by the desired food cost percentage.
Shelf-life
The length of time until a food or beverageproduct expireson the shelves.
Tips
The money guests customarilypayservers and other restaurant workersfor
good serviceduring the dining experience. Tipsusually supplement
restaurant workers’overall income.
Waste
The food or supplies that are spilled, burned, incorrectly prepared
or otherwise misused or expired and thrown away. High waste
will negatively affect food cost.
14. Restaurant Menu
When starting a new restaurant, creating the menu is one of the most-important
responsibilities that you will undertake as the restaurant owner. The items you put on
your menu will be responsible for bringing in the revenue that it takes to run the
business.
We considers some steps to create our restaurant menu:
Step 1
Promote your most-profitable items. These are the items that have a low cost for the
ingredients and can be sold at a high market. These items may require a very small
amount of time from your staff toprepare. Focus on promoting these items over the other
offerings. If you can steer people into items you want them to order, it can significantly
improve your profit margins.
Step 2
Emphasize the items that you want ordered with menu design tricks. A talented graphic
designer can help emphasize something on the page. For example, drawing a colorful box
around a featured item can naturally draw the eye of the customer to that offering. The
layout of the menu can have a drastic impact on what the customer’s order. If you are
featuring your most-profitable items, it will lead to more profit for you in the long run.
Step 3
Use relative pricing to make some of your most-profitable items look more attractive. For
example, if you have one dish that is priced significantly higher than the others, it may
make the rest of the dishes look more attractive. If one dish is priced at $35, the $20 plate
does not seem as expensive. While this will not always work, it can influence many
customers.
Step 4
Put your best offerings at the top of the category. Most restaurants place their most-
profitable items at the top of a particular food category. The majority of orders come from
that section, so it only makes sense to put your best dish in that slot.
Step 5
15. Include photos of the dishes in your menu. With a large photo of a featured dish on the
menu, customers will be more likely toorder it. If the customer has no idea what the food
looks like, he may be hesitant to give it a try.
Specimen of Menu
This is a sample menu of our Restaurant.This is not final at all. It
could be develop later as per company policy. And menu will
include some foreign menu like: Chinese,Thai and Indian Food
17. Leading
Communication:
Many common problems in restaurants result from poor communication
and could be avoided by implementing simple workplace procedures.
Creating proper two-way contact policies can help you avoid staffing,
scheduling, reservations, and order and inventoryproblems. Somefeatureof
communication:
Featuresof the day, including additionalnotesregarding thefeatures.
Any promotionsyou have running
Any contestsor incentivesyou are running
Policychangesor planned enforcement
What thedaily side work or sanitationdutiesareand who they will be
assigned to
Tipsof the day, from up-selling and menu knowledge, servicetipsto
cooking skills.
There are many benefits to having regular pre-shift meetings:
Creating a positivework environment
Happy customers
Makemore money
The following are the top five personal qualities or skills potential employers seek:
1. Communicationskills(verbal and written)
2. Strong work ethic
3. Teamworkskills (works well with others, group communication)
4. Initiative
5. Analyticalskills
18. Motivation
Competitive salaries
It is very useful to enquire as to what the salaries are in other establishments so you can
compare them to the ones you offer. You can easily see what a big problem you would
have is one of your experienced and reliable staff members leaves to work for your
competition.
Recognize and reward good results
There are various situations in which you can praise the good results of your staff: compliments
from satisfied customers, helping a colleague in his/her station, an innovative idea to improve
business are some of many.
You must recognize those moments and let your staff know you are aware of their effort. A
couple of words of praise can be the first step.
Working hours
How to motivate team in your restaurant if your staff working overtime? Overtime not
discussed and agreed with employees can cause discontent. Stick to agreed shifts and
working hours and reduce the risk of causing dissatisfaction. Introduce the possibility of
employees seeing their schedule in advance so they can plan their free time and be
relaxed.
Socialize with your staffoff the clock
In addition to annual vacations of your staff, think about socializing with them outside
of working hours, for example throwing an informal barbecue or a Sunday lunch party,
where everyone can feel they are a part of the team and have fun. Result of these
gatherings, popularly called team building, are trust and togetherness.
Incentives
A loss of an employee means you will have to spend money on replacement and training
of a new one. In the meantime your schedule will be incomplete and the service below
your desired level. However, if an existing employee knows they will get a bonus for the
extra effort he/she puts in, it is very likely the service will not suffer and dedication from
your staff will remain unaffected.
19. Controlling Cost of Food & Labor
PerformFood Cost Calculations
The first step in controlling foods costs is to determine what they are, per diner. You can
do this by calculating the expense of each ingredient that goes into each dish, or divide
the total number of diners you serve per month by your monthly food costs. Food costs
include the cost of the food, delivery, interest on those purchases, spoilage, theft and
make-good meals returned for lack of quality.
Evaluate Menu Planning
Knowing the food costs of individual dishes lets you determine whether they belong on
your menu. For example, if your overhead cost per customer is $7 and your food cost for
a specific lunch dish is $4, your cost to serve that customer is $12. Customers must pay
$11, as well as for a drink, tip and tax, and your desired profit margin, which brings the
bill to more than $15.
Reduce Waste andTheft
Use ordering, inventory and security techniques that reduce food from going bad or being
stolen. Keep track of monthly and annual traffic to better project demand and prepare for
sales peaks and valleys. Record how many dishes are returned each service and why, and
20. how many meals you comp or replace to determine if the problem is a particular cook or
one or two dishes you need to eliminate
Schedule StaffEfficiently
Review your expected tables for each service during the week and mix your staff to ensure
you don’t end up with all rookies during one lunch rush and all veterans during a slow
dinner. Have fewer staff members for set-up and takedown than during a service to
minimize your costs.
Cross-TrainStaff
The more each staff member can do, the more productivity you’ll receive from each. Slow
servicecan doom a restaurant ascustomers leave or make the decision not toreturn. Train
your prepcooks topreparemenu items and managers and bus staff toservediners to help
out during rush periods.
ImproveStaff Quality
Restaurants rely on repeat customers and sales of non-entrée items to maximize
revenues.Paying the least amount for dining room staff can lead tofrequent turnover and
poor customer service. Consider paying high-quality, trained staff more and teach them
to know how to sell specials, upsell appetizers, desserts and drinks, remember regular
customers and their preferences and work with your kitchen staff to get orders in and out
quickly.
21. Our Location
Selecting Location is an important task to open a restaurant. After research
of market we select our location In Zigatola Dhanmondi Dhaka depends on
our target customers. This is such road where school collage University
Corporate Office and residential are nearby this location.
The old saying of "location, location, and location" is vital in the restaurant
world. It is important to find a location that has a continuous stream of
traffic, convenient parking, and is in proximity to other businesses
(especially if you're catering to the lunch crowd). And don't forget to revisit
your business plan to make sure you are close to your target market. If you
are opening a restaurant/nightclub, it may not be the best idea to open it in
the vicinity of retirement homes. In addition, make sure your monthly rent
22. is in-line with your business plan's projected profit so that you do not
become building-poor.