Restaurant risk management

1. Restaurant risk management
If you are business savvy and have a strong passion for providing service to customers in
the food service industry, you can prepare to set up your own restaurant business. It is
quite surprising to note that almost 60% of the newly set up restaurants shut down within
three years. Though new restaurant success rate is not quite promising, you can prepare
yourself well for the practical realities of restaurant business to achieve success.
Given below are 5 important steps or tips that you follow to increase your chances of
establishing a successful restaurant business.
1. Defining the Business Concept
First of all, you need to come up with a strong business concept and a unique theme. To
become successful in your business, you must have a clear vision about your goals.
Consider the restaurant locations and the requirement of local patrons while
brainstorming to come up with a unique business theme. A catchy name for your
restaurants is also an important part of entire process. So, try to come up with a name
which is short, appealing and easy to remember.
2. Deciding the Budget
The next important step is to develop a budget for your business. Once you have decided
the budget you need to stick to it. Do not underestimate the start-up cost, as it can have a
negative effect on your restaurant business. You can also use resources for the first round
of financing for your business. There are many investors who would like to finance your
business. However, for that, you need to work out an effective business plan illustrating
your business concept, risk management strategies and planning for return on investment
(ROI).
3. Designing the Restaurant Space
The design of your restaurant space should be completely in tune with your business
goals. Right from lighting to bathroom fixtures, you need to take into consideration all
the fine details. The restaurant design should be done in a way that it reflects your
business vision. Relaxing ambiance and functionality are the two most important
components of the restaurant design. Pay attention to kitchen space, storage area and
sitting room for customers.
4. Recruiting New Employees and Retaining Experienced Ones
While in the restaurant management business, you need to handle the human resource
task as well. To achieve success, you should be ready to prepare for hiring a great staff.
The success of a restaurant has a direct connection with whether your employees are
happy. You can put up a 'Now Hiring' sign during the construction of restaurant and place
advertisements in print media and online. The interviewing process and training of
employees should begin at least six months in advance before the business actually starts

2. operating. Maintaining a positive work environment and addressing to employee issues
are essential to establish a successful business.
5. Publicizing Your Restaurant Business
Start publicizing your business as soon as the construction work begins. Hang banners
around revealing the name of your new business and the tentative time of opening. It is a
great idea to throw a free food samples party to create a buzz. Issue press releases to gain
more coverage. After your business starts to operate, you can use the online media for
advertising. Hosting local food events without spending too much on it is also an
excellent tip to promote your restaurant business. Find other methods of low-cost
business advertising as well.
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