Has your first restaurant venture been a success? Hungry for more? Opening a second location may just be your next best move.
Owning and managing a restaurant can be difficult at times. The last three years have been some of the most turbulent for the hospitality industry, but those with a recipe for success have been able to survive and even thrive.
Opening a second restaurant may be a good step to diversify and reduce the level of risk you have with only one establishment. But what factors do you need to consider?
A new business needs a new business plan, even if you’re transferring many of the lessons from your first restaurant. If there were any bumps in the road the first time around, use those lessons to make this venture even more successful.
Your plans should be comprehensive in outlining every area of the business, from suppliers to marketing and everything in between. Include current members of staff to get their take on what could be done better and how methods can be improved.
The location of a restaurant is significant in its chances of survival and success. You don’t want to be too close to your first establishment, or else you could risk draining some of its business. Find somewhere with untapped potential and a healthy customer base that you can target.
Proper market research is crucial here to identify opportunities for you to explore. Consider your style of food and target demographic, then look at locations that are likely to welcome your new offering.
Insight from your first opening will be key in estimating costs for your new restaurant. Ensure that you have adequate financial reserves to deliver everything you want, otherwise, you may fall short before you even open.
Don’t forget essentials such as restaurant insurance and the additional costs associated with branding, staff uniforms and marketing efforts. Be sure to set aside a certain amount for contingencies should the worst scenarios happen.
Your staff will play a significant role in the launch of your new restaurant. Engage actively in the recruitment process to ensure that the people you are bringing on board will represent your values and share the same passion for the business that you do.
Front-of-house and kitchen staff are both vital in the customer experience, so find the right talent and keep them happy by creating a healthy work environment.
Opening your second restaurant is likely to be daunting, but it could be the perfect step for you in your entrepreneurial and hospitality career. Put 100% into the process and take the right steps to ensure it’s as successful as your first – if not even better.