Important! Pay Attention to These 5 Things When Opening a Restaurant Business

Food business—including restaurants—is one that will never cease to be explored. This is largely due to the open opportunity to reap profits as the F&B industry in Indonesia is predicted to continue growing by 5-7% by the end of 2023 (Director General of Agro Industry at the Ministry of Trade).

However, to start a restaurant business, thorough research and calculations from various aspects are needed. Your entrepreneurial spirit will be tested here. Perseverance and resilience are required so that the restaurant business you start does not languish and stop halfway when facing many challenges and failures.

So, what should be prepared and paid attention to when deciding to open a restaurant business? Let's find out through this article!

Conduct Comprehensive Market Research to Ensure Your Restaurant Business Thrives

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Comprehensive market research is crucial to gain an understanding of the restaurant business market you are targeting. In addition, research is also important as a basis for creating focused and measurable business plans and strategies. Good market research will help you understand the local market, competitors, and business opportunities that you can leverage.

By conducting market research tailored to the needs of your restaurant business, you can more easily and systematically identify the challenges that will be faced as the business progresses, including devising strategies to stand out among competitors.

Develop a Focused Strategy & Manage Budgeting

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Business strategy will help you identify goals, create focused plans and measurable targets, and keep you focused on achieving predetermined goals. Identifying SWOT (Strengths, Weaknesses, Opportunities, and Threats) is the core of building any business strategy—restaurant business included.

By identifying these points, you can ensure how your business can win the competition among many competitors and which aspects need to be evaluated and improved.

The next step to execute the strategy, of course, requires funds. Your ability to develop efficient budgeting is needed to prevent over-budgeting.

With proper budget planning, you can determine how much funding is needed to start the business, the time needed to recoup initial investment, and when the business will start making profits.

As a business owner, you want to maximize profits, right? Don't forget to always monitor and track the income and expenditure of your restaurant business in detail. When planning the restaurant budget, also consider daily operational expenses.

Choose a Strategic Location That Fits Your Business Target

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Before determining the location of your restaurant, make sure you have conducted demographic research in the potential location, including researching competitors around the potential location and the details of the required building.

An ideal restaurant location includes easy customer access, making customers feel comfortable and safe in the restaurant's surroundings, and having adequate parking facilities. Choosing the right restaurant location that matches the target market will help increase profits and make your restaurant successful.

Another thing to consider when choosing a location is the distance from the restaurant to suppliers. If your restaurant is easily accessible and reachable by suppliers, shipping costs will be more affordable and can streamline the distribution process of restaurant raw materials.

Moreover, when your restaurant location is more accessible to suppliers, you can choose suppliers that match your restaurant's criteria and standards. It's different if your restaurant is located in a remote area that is difficult for suppliers to reach; the choice of suppliers for your restaurant's raw materials becomes limited.

Select the Right Raw Material Suppliers

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Choosing the right supplier is important to ensure that your restaurant runs smoothly and maintains business profits. Good and reliable suppliers will give you peace of mind by providing assurance of raw material stocks according to your restaurant's criteria and offering more affordable raw material prices.

If you can obtain raw materials at a lower price without sacrificing quality, your restaurant's profits will increase because you can sell menus at more affordable prices.

Ultimately, your restaurant business will become more profitable.

Often, culinary business owners are confused in choosing suppliers, not to mention ensuring the credibility and quality of the raw materials sold by these suppliers. ESB understands the need to find the best suppliers to support your restaurant, so we have the solution of ESB Goods.

What are the benefits you will get when looking for suppliers and raw materials at ESB Goods? All suppliers on ESB Goods are verified. In addition, the raw material procurement process will follow the procedures available in the system.

You can compare several suppliers directly at the same time and negotiate directly within the ESB Goods system to get the best raw materials. This allows you to be efficient in terms of time and costs.

Paying for raw material stocks is also easy because it is automatically done within the system. Need a loan to buy raw materials? Don't worry, there's ESB Capital ready to provide collateral-free loans with rational interest rates so that your business can grow.

Recruit Competent Restaurant Staff

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Recruiting employees for your restaurant is not always easy. Especially if your restaurant has high standards and requires human resources with specific skills. Finding employees requires precision and patience to ensure that quality is maintained both in terms of the menu and service.

Competent and service-oriented employees will play a crucial role in providing the best dining experience for customers. Make sure you also choose candidates with good work ethics who can work with other employees to make your restaurant business successful.

In managing employees, you also need to pay attention to their welfare.

Make sure you provide employees with rights according to applicable regulations and show appreciation when they achieve success.

These five tips should be considered when deciding to start a new restaurant business. Although there are many challenges ahead, by applying these tips, hopefully, you can anticipate and be ready to adapt to changes in the future. Good luck starting your restaurant business and stay motivated to provide the best service so that profits can soar!