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7 Business Plan Mistakes All Restaurants Should Avoid

AcademicBrits.com ·17 October 2018
Not writing one or including enough detailThe first, and easiest, hurdle to fall at it to simply not write a business plan at all. When you have a goal such as opening a restaurant It's natural to want to get started as soon as possible and it might seem as though a rough plan will be sufficient. However, the reality is that over half of all restaurants have failed within three years of opening, with 26% failing in the first year.If you're going to take a shot at your dream it's also important you go into as much detail as possible, the reality is there are multiple points at which you could fail in the early stages of opening a restaurant and not paying enough attention to the details can cause you to trip at any one of these. There will be numbers to crunch, permits to apply for and endless market research to consider and the more time spent and information gathered the better. A rich, qualitative business plan will highlight any weak spots in your business model and make for a smoother start-up period. A strong business plan can also be used to attract investors and secure funding such as loans.Not focusing on the long termAs so many restaurants fail in the first few years it is important you not only consider the start-up phase of your business but also focus on the long term. Alongside the initial push needed to launch a restaurant, any business plan you form should also include procedures to ensure the sustainability of your restaurant. It is important to consider financial returns, how you will ensure your restaurant becomes self-funding and your long term aims as a start-up and include these in your business plan.Location, Location, LocationEnsure the location of your business is highly visible to potential customers, while a premises in a less popular or frequented area may be cheaper it is simply not worth any savings you might make by compromising. "Location is everything when drawing in patrons and it's important that your restaurant is in a prime location to be spotted by hungry passers-by who could become loyal customers. While a marketing campaign is an incredibly effective way of attracting customers don't underestimate the importance of an appealing storefront in a busy area," says Bethany Barnes, a business writer from Write My X and OriginWritings.Being realistic about the costsWhen creating your business plan be as specific as possible regarding the associated costs, leaving anything vague creates room for costs to turn out higher than expected and this can cause havoc. A poorly constructed financial plan also has the potential to put potential investors off.It is vitally important to leave space in the budget for unexpected or costs as these are likely to arise in some form; ultimately the best strategy is to overestimate all costs when writing the preliminary budget. A general rule is also to set aside a contingency fund for unpredicted costs or emergencies.Not empathising your businesses competitive advantageThere are thousands of other people out there trying to make their dream restaurant a reality but the reality is not all of them will be successful in doing so. Ensure your business plan highlights what makes your restaurant stand out from the crowd and how your plan will give you the best possible chance of success. There are a variety of ways you can differentiate your restaurant from your competitors', including: location, concept, cost and menu items. Make sure you build a solid argument as to how these differences will give you an edge. Also ensure you include information regarding your experience and what makes you the ideal candidate to implement your business plan successfully, that way any potential investors reading your business plan can build confidence in the competitive advantage of both the plan and it's enactor.Not creating a marketing strategy Implementing a sound and well planned marketing strategy is the key to the success of any new business and should not be overlooked when opening a restaurant. When done correctly it will not only bring in new customers but encourage repeat customers as well, through schemes such as a loyalty program. "Other things to consider when building a marketing strategy are: your restaurants website, creating relationships with local charities and organisations, digital marketing, and social media. All of these are incredibly useful tools to encourage visitors to your new business and successful marketing might well make the difference between success and failure," says John Phillipe, a marketing manager at 1Day2Write.Not paying attention to the red tapeWhile it may not be the most exciting aspect of making your dream a reality, focusing on the 'red tape' like paperwork and permits is an integral part of making it a success. A key part of your business plan needs to focus on any permits, regulations and compliance requirements. Falling short in these areas can seriously stall your restaurant opening and incur unexpected costs, so it's important you give them the attention they need.

The Importance of Visual Branding in Restaurants

Modern Restaurant Management·17 October 2018
Visual branding is critical for any business because it often shapes a consumer’s overall perception. This is especially true in the restaurant industry, where making an impactful first impression is crucial for drawing in new customers and driving sales. Restaurant owners need to decide what message they want to convey and who they are trying to reach.

Brand kAAKAO wants a change in EU legislation

mycloud HOSPITALITY·17 October 2018
kAAKAO has revolutionised the art of chocolate making with chocolate sweetened with dates that is suitable for vegans, people with allergies, intolerances, and diabetics – one 40g bar of kAAKAO contains as little naturally occurring sugar as one medium sized green apple.

Check-In at the Bar: New Ideas for Hotel Front Desks

4hoteliers.com·17 October 2018
Hotel lobby front desks are no longer desks or located at the front: It made perfect sense, your first stop when checking into a hotel was the front desk, you had to collect your key and room number, but, you also might have needed to provide a credit card for incidental charges like the mini bar, Oh, and what’s the WiFi code? Technology has rendered the concept of the hotel front desk nonsensical.

Pop-Tarts Pop-Up and 'NewGen Retail

Modern Restaurant Management·16 October 2018
New Additions to the Toast Partner EcosystemAvero, GoParrot and Rooam have been added as key integrations in the Toast Partner Ecosystem. These new application partners will provide restaurants of all sizes access to the technology partners they need to increase revenue, improve operations, and delight their guests. Toast's Partner Ecosystem complements its core point-of-sale, empowering restaurant operators with the flexibility to build their highest-performing restaurant tech stack.

MRM Research Roundup ... Mid-October 2018 Edition

Modern Restaurant Management·16 October 2018
Modern Restaurant Management (MRM) magazine's "According to a recent study/survey …" column is being rebranded as MRM Research Roundup. This time, we feature top pizza cities, top cities for vegans and vegetarians, brand intimacy, retail's halo effect and the best places to eat apple pie and for allergy-friendly dining.

Free tnooz report: Unlocking the potential of group sales and catering - a hotelier's guide

Tnooz·16 October 2018
To fulfill the potential, group sales and catering teams need to be aware of the many moving parts. The various internal and external influences – such as demand and supply, customer preferences, operating costs, competitive landscape – have aligned with each other and now have a resonance in unison as well as isolation.

Return to Work Policies Make Cents

Modern Restaurant Management·16 October 2018
The hazards encountered on a daily basis by those working in restaurants often lead to injuries, the restrictions from which are inherently difficult to accommodate. From a dull knife in the kitchen you can start bleeding money and from the hot oil in the fryer, get badly burned by the workers’ compensation system.

3 tips to save on F&B at your next hotel event

Hotel Tech Report·16 October 2018
Food and beverage options can sometimes hit your budget hard. But there are ways to reduce your spend by working with your hotel for alternate F&B options. Here are 3 tips to help you save on F&B at your next hotel event.

5 Tips for Staying Healthy While Traveling

4hoteliers.com·16 October 2018
It’s no secret that when you’re away from home, fast food like McDonald’s and Dunkin often looks significantly more appealing than taking the time to find healthier options, and staying consistent with a meal plan and being active are steps to a healthy lifestyle that you shouldn’t have to compromise on while on business travel.

Sweeney named 2019 Hospitality Executive of the Year

mycloud HOSPITALITY·15 October 2018
The Penn State School of Hospitality and Penn State Hotel & Restaurant Society (PSHRS) named National Restaurant Association President & CEO Dawn Sweeney their 2019 Hospitality Executive of the Year.

The Ripple Effect in the Hospitality Industry

Hotel F&B Observer·15 October 2018
As your operations look at purchases in the new fiscal year, be prepared for potential sharp hikes (and in some cases significant drops) in prices paid over previous years.

Classic Plane to Become Cocktail Lounge

hotelbusiness.com·Requires Registration ·15 October 2018
The TWA Hotel’s 1958 Lockheed Constellation “Connie” L-1649A Starliner airplane is completing her 300-mile journey from Auburn-Lewiston Airport in Maine, where she was fully restored, to her new home at John F. Kennedy International Airport here today. The Connie (tail number: N8083H) will become a one-of-a-kind cocktail lounge and event space at the 512-room hotel opening in spring 2019 and located at the landmark 1962 former TWA terminal designed by Eero Saarinen.

Four F&B Updates to Know

hotelbusiness.com·Requires Registration ·15 October 2018
Hotel Business is tracking movements in the F&B space. Here’s what we found.

Weaker pound driving investment in London's hotels

Hotel Management·15 October 2018
A new report monitoring hotel capacity across European cities shows London is set to add 11,600 guestrooms to its hotel sector by 2020.

What Does a Restaurant Coach Do?

The Restaurant Expert·15 October 2018
What does a restaurant coach do? What’s the difference between a restaurant coach and a restaurant consultant? To me, the distinction is simple.

Six BOH Metrics You Need to be Tracking

Modern Restaurant Management·15 October 2018
Running a restaurant is no easy feat. The hours are long and the work is hard. You’re always balancing customer requests, food quality, employees, and so much more. Sometimes you might even think for all the work you put in, you aren't getting the results you want. There’s a way to fix this – restaurant metrics.

Deliveroo now taking room service orders for hotel guests

mycloud HOSPITALITY·15 October 2018
Restaurant and takeaway food delivery service Deliveroo has expanded its business offerings, announcing it is now offering deliveries to hotel guests across Australia.

The Trick to Aging Legendary Kentucky Bourbon, Plus Recipes

mycloud HOSPITALITY·14 October 2018
In Kentucky, where 95 percent of the world’s bourbon is produced, there’s almost as much interest in the process as there is in the finished product. Almost.

Restaurants up the ante on healthier menu options

mycloud HOSPITALITY·13 October 2018
Consumers say they're looking for menu items lower in calories, more nutritious and, in some cases, smaller sized. Restaurateurs are listening.

Subway Delivers Big, Punchh Revolution and Storytelling Dinners

Modern Restaurant Management·12 October 2018
Subway Partners Up for Delivery Subway is one of the first QSRs to partner with four of the largest third-party delivery providers. Guests can order their favorite footlongs and salads from more than 9,000 Subways at Subway.com/Delivers.

Special 'Parts Unknown' Episode Reflects on Anthony Bourdain's Impact on Food and Travel

skift.com - Destinations·12 October 2018
We don't quite have the words to describe the overwhelming mark Bourdain left on the travel industry and world. But we will say that he helped change the conversation about what traveling should look like, what we should get out of it, and how we should feed ourselves along the way.

Can Signage Bring New Customers To Your Restaurant?

Modern Restaurant Management·12 October 2018
Before the internet, a restaurant would rely on word of mouth and their location to bring in customers. Today it is a totally different environment. Restaurants today have multiple marketing channels to choose from. We have Facebook, Google, Zomato, Yelp, Instagram, etc.

Top Hotel Dining Design and Furniture Trends

Hotel F&B Observer·12 October 2018
Industrial designs with reclaimed wood, exposed lightbulbs, and exposed brick, typically coupled with metal furniture look like they have peaked and are starting to decline after many years of success.

Restaurants begin recovery following Hurricane Michael

mycloud HOSPITALITY·11 October 2018
The strongest hurricane to hit the United States in a century, Michael damaged many homes and businesses. In Georgia alone, about 1,500 restaurants were affected.

4 Things to Consider when Selecting Your Restaurant Reservation System

SevenRooms F&B Blog ·11 October 2018
For restaurants, your reservation system is perhaps the single most important piece of technology at your property. It’s the operational system, the heart beat of your entire front-of-house operation. That’s why it’s important to understand the differences between reservation systems and how those differences may impact your bottom line.

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