The future is even brighter
With the great number of restaurants competitiveness is increasing. This is the reason to decrease food and drink prices in restaurants but also the reason to increase the number of guests who use the services of restaurants or cafes. For example, in America, the difference between number of people who have lunch at home and those who have lunch in the restaurant is 20%. If we want that people get used to have lunch in the restaurant, food prices should be lower.
Sure there will be always exclusive restaurants with high. But for everyday lunch prices must be acceptable. If you want to be first with the regular guests who have lunch in your restaurant, we recommend that you start with the lower prices of certain foods, and to see if there is any change in habits of your guests.
If you are not sure whether to open a cafe or restaurant, continue with calculations. In contrast to shops business, which has an average profit amounting to 30 – 35%, the profitability of the restaurant amounts to over 70%. The fact is enough to make a simple conclusion.
Although the statistics are on your side, it is not simple as it seems.
Love for the hospitality business
All these numbers can encourage you to go through to become the owner of a pub or restaurant, but the true sign is not math, it is love for the hospitality industry. Lot of people, in one moment of their lives has a dream to become an owner of a hospitality facility. They do that from different motives. Someone because of thought that it is exciting business, others in order to have “their own private place” where they could hang out with their friends in the atmosphere which suits to them. Others may want to get to know more people, and to entertain some of the celebrities or to enter in the circle of celebrities by themselves.
The good news is that all of these goals can be achieved, if the restaurant is profitable. It is easy to open a restaurant because you do not require the specialized training as a doctor or lawyer. If you think you know what can be a big hit, you have the money for an investment, then you have nothing to wait for, or?
Please do not forget that even before you, millions of dreamers were existed who knew everything you know now, been passionate about that they wanted their own hospitality facility, and again failed. Why? Because they have not knew how to manage a business successfully?
Surely you know this story. Two restaurants are opened in the same area. Six months later, one was extremely successful, non-stop guests come and go in the restaurant, while other one locked the door forever. Or another example, a successful restaurant, located in a good location, is a popular, well visited and profitable for years. Suddenly the restaurant owner has been changed; the management and waiters remain the same. Next two years hospitality facility operates negatively and almost closed. A third example may be the bar, which is certainly not in the busiest location, but people still come and it is always full of guests. What is it that what all successful facilities have in these stories? X Factor. Is the X Factor person or something else, what is it that makes some objects successful while others fail?
X Factor is not just the luck or the possibility that you have had, as most people would have thought. With careful study and planning, you can increase the probability that your hospitality facility can have X Factor. In some cases, X Factor can be a great location, and comfy ambiance. Or it may be a good food. For others, it might be a good price. In most cases, X Factor is a combination of several items: location, food, price, service, atmosphere, music and good management.
In short, the X Factor includes:
- Understanding the needs of the market
- Creation of a concept with a clear and unique offer
- Consistent concern about the guests, providing them an experience that is worth more than they paid. The food, the service and the whole experience in your restaurant must meet or exalted above their expectations.
- Keeping and controlling inventory goods and monitoring of finances
From my own experience I can say that with all the risk and the work that you do to run a successful hospitality business, happiness, pride and satisfaction that you get, will exceed all of the above. At the start, your hospitality business will take away all your time, and you will certainly be exhausted.
But if you are really passionate, dedicated and have a plan, the financial rewards will follow. You will receive the award in the same proportion as you’re rewarding your staff and guests. And the biggest prize and confirmation that you have done well and that you are on the right road, is when your guest come to you satisfied and thank you for a wonderful dinner which he had in your restaurant.
In the following articles we will write more about planning before opening a catering facility, which will depend on whether you will succeed or become part of the negative statistics.