Do’s and don’ts for startup restaurants – vol. 1

Do:
Know your target market. Your target market is not the people you WANT to buy your food, but rather the ones MOST LIKELY to buy your food. A big red flag in any marketing plan is an assumption that your concept appeals to everyone.Don’t:
Have a large menu. Large menus confuse your concept, increase ticket times, decrease table turns, increase waste, make server training harder, and overall just make you lose money. You can’t be all things to all people. If you try, you’ll be very little to very few.Do:
Have an exit strategy. Knowing how you’re getting out of this venture if things don’t go right is more important than knowing how to get into it. What happens with your lease if your concept fails? Do you have provisions that protect you in case of road construction, building construction, or other cicumstances beyond your control?

Don’t:
Think if you “build it they will come”. Every new restaurateur thinks their food and product is so interesting and unique that people will flock to their restaurant just because they opened it.

Do:
Have a marketing plan. Word of mouth marketing only works if a lot of people already know about your business. You can’t depend on word of mouth for a startup. Marketing a startup takes money and a plan on how best to utilize that money to get people in your door, so you can build relationships and earn their referrals to their friends.

Don’t:
Sign a contract without having it reviewed by legal counsel, whether it’s for a lease, a partnership, or a vendor.

Do:
Create a unique selling point. Form an emotional bond with your customers by promising to make them FEEL something, then delivering on that promise. The memory of how you made someone feel with your restaurant will last long after they forget who served them and what they ate. “Good/great food and service” are NOT unique selling points. Every restaurant claims to have these. The emotion that you promise and deliver to your customers IS a unique selling point. Other restaurants will not have this.

2 thoughts on “Do’s and don’ts for startup restaurants – vol. 1

  1. Pingback: McDonalds McWrap trying to compete with Subway | blog.bodellconsulting.com | O'Dell Restaurant Consulting's Blog

What do you think?

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s