Restaurant Marketing

How to Open a Restaurant or a Bar: 5 Steps

Two restaurant owners standing in front of an Open sign

By Hannah Butler, Contributor

When opening a bar or restaurant, one of the first questions folks ask is “Where do get money for the business?” And it’s an important question that needs answering, however, I can assure you that, for all its importance, it is secondary.

First of all, you need to determine the format and concept of your new restaurant, draw up a business plan, and budget startup costs and continuing costs. Based on these figures, you can choose a suitable investment option. In the United States, each state and city has its own laws and traditions that you need to follow. So my recommendations in this article are generalized for the restaurant industry as a whole.

Choosing a Location for Your New Restaurant

new restaurant location

Experienced restaurateurs say that choosing the right place is half the battle. You are lucky if you find a premise in a good location that is already been fitted out for a restaurant. The general layout has been made successfully, including the kitchen, and permissions have already been obtained. So you only need to make cosmetic repairs for a new brand and buy furniture and equipment.

General things to keep in mind when looking for the right location:

  • Local foot traffic
  • Parking availability
  • Public transportation availability
  • What the location’s revenue/rent relationship is
  • What other attractions or businesses are around that will help your business
  • What your local competition would look like

If you conclude a franchise agreement, then this network most likely has a coach who will bring you up to date and can help you through the entire process. They will tell you about all the nuances. So it will be easier for you to understand which location is most suitable.

Choose the Style of Your Restaurant

Restaurant guests personas
Photo by Kevin Curtis on Unsplash

When choosing the style of your restaurant, it is imperative to rely on market data. I recommend collecting statistics on popular and little-demanded formats, menu options, and ingredients. Then study why exactly this format and menu is in demand (for example, is it a cultural feature or a seasonal trend). When opening any business, you need to clearly understand who your target audience is.

In the United States, 58% of the population eats outside the home. Asian, Italian, Latin American, and American fast food are the most popular. For newcomers to the industry, it is safer to start with classic options rather than experimenting with exotic cuisine. Unusual menus can be successful in tourist areas. In non-touristy locations, it is better to offer unusual ingredients and seasonal dishes as an additional menu. Make the main menu based on dishes that are understandable for your audience.

When making a menu, it would be nice to already know your chef or at least have a sous chef. They will help you to optimize the menu. Also, the chef will help you to draw up a list of equipment, calculate the food cost, choose the right suppliers and draw up a delivery schedule.

Rights, Permissions, Requirements

Restaurant Tablet Management

In the United States, federal, state, and local permits from the county must be obtained to open a food service business. Therefore, you should make inquiries in advance and find out about all the nuances of a specific location. It is essential to clarify all questions regarding drafting contracts and regulation with local specialists.

The success of your restaurant depends on the experience and talents of the key employees: restaurant director, chef, barista, and bartender. It is important to understand local labor law and relations with trade unions in your business segment.

When choosing a place to rent, be sure to find out what documents, licenses and permits it already has. In addition to the general rules, the USA has special rules protecting the rights of persons with disabilities (ADAcode). Therefore, when designing premises and the surrounding area, they must also be strictly observed. There are many details, and in order to keep all of them in mind, it is important to find a competent designer and architect, engineers and builders.

All project participants must have local licenses, permits and the necessary contacts. In the United States, when designing, we rely on the International Building Code. Requirements vary from state to state and even from city to city.

Smart Design Increases Sales

Restaurant lighting decor
Photo by Malcolm Lightbody on Unsplash

The main task of commercial design is to package your concept correctly in order to increase sales.

To conduct commercial projects, designers study market research, history, traditions and culture of the inhabitants of a given place. They pay attention to the features of visual identity, symbolism of shapes, colors and numbers. With a competent layout, every centimeter of the room is busy with something, works and makes a profit.

Interior design serves as the main background for your business concept. It creates the right atmosphere, coziness, and brand carriers. This not only includes the look and design of your booths, tables, and seats, but also your restaurant’s lighting, ambient noise/music, spaciousness, and artwork.

Your restaurant’s culture, experience and atmosphere should be kept in mind in every aspect of your design process — from the brand logo to the decor of the premises, marketing material, and delivery packaging. In this case, the concept turns out to be integral, and the basic idea is visible in all design elements.

Let’s Talk About Advertising

Restaurant website design

You can start a new restaurant without advertising, but it is unlikely to stay in the market. With a large budget, you can hire a PR agency. Or you can use a freelancer’s services with experience in blogging and social networks. Also, there are copywriting agencies which provide proofread and editing services to create valuable content for your business – such as marketing materials or website text. It can help for better advertisement and SEO ranking. Hence, your restaurant will become more recognizable.

If the money is end-to-end, then you can do the promotion yourself. Social media is the best channel for informing your target audience. Service aggregators such as Yelp, Google, OpenTable, Foursquare, TripAdvisor, and local food delivery services will also be helpful. With a sufficient budget, you can buy advertising on Google AdWords and order promo videos on popular stations and TV channels.

If you consider non-digital options, then it would be quite effective to print a mini-menu with a food delivery option and event flyers. Send them with a courier to all the nearest offices, hotels, salons, and other businesses. Well-designed discount systems, loyalty programs, special promotions, and contests help your visitors remember you. Different price segments have their own rules of advertising and promotion. What works for cafes does not always work for restaurants on the Michelin list.


About the Author:
Hannah Butler works as a content writer in writemypapers4me.net, company that provides expert paper help for students. She likes sharing her experience in the form of articles in such spheres as Business, Self-Development, and Marketing. In her free, time Hannah enjoys rock climbing and bike riding. 

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NextRestaurants Staff