5+1 things to keep in mind
The conditions we are experiencing are making life particularly difficult for restaurateurs. How experienced you are is of huge importance, especially if you are thinking of opening a restaurant in this difficult period. Michelin-starred chef and restaurateur Philip Foss has highlighted some of the crucial factors to consider before embarking on this fine profession.
Phillip Foss
The chef and owner of EL Ideas is turning food on its head with a restaurant tucked away in Chicago's Douglas Park neighbourhood. His dishes are characterised by precision and attention to detail, where his classic cooking techniques with innovative ideas combines. EL Ideas was awarded its first Michelin star in 2013 and went on to receive three more stars from the Chicago Tribune. Foss pioneered the Chicago food truck scene with his Meatballs Mobile. He's a chef who's been around the food scene, so it's worth taking his advice.
The chef's insights on the restaurant
Foss has pointed out from the outset that 75% of restaurants close in the first 18 to 24 months, even those with renowned and experienced chefs in the kitchen. Factors such as economic environment, social changes, trends, but the success of a restaurant also depends to a large extent on luck. We have emerged from the pandemic, which has created a completely new situation, where innovation, new methods, even if difficult, have enabled us to survive. Now, however, we are entering a period where even these solutions may not work. The general inflation, the supply chain damage is a serious problem. The fall in solvent demand, the tourism and hospitality sectors are extremely affected.
Phillip Foss: „Time is working against us, the costs are too high and the whole ordeal can eat away at our financial and mental reserves”
1. What can we do to make a restaurant profitable?
A lax budget is a failure. Whatever we do to open a restaurant, it will clearly cost money. There are a lot of unexpected costs and expenses that have to be anticipated and provisions have to be made. Even the mere maintenance of a kitchen and a restaurant is expensive. There should be enough financial backing to sustain the business for at least six years, but ideally for a year without any income.
P.F: „The quickest way to fail is not to have enough start-up capital”
Don't expect the bank to support your business. They are not as comfortable as they were a decade ago, and they are dealing with the difficulties of their own industry. This means that lending rules are much tighter and interest rates are rising. Private investment is likely to be needed, but caution is also needed.
2. Whether you are an excellent cook or just 15% of successful operation
There is much more to running a restaurant than serving perfect food. It requires skills that many people don't even know exist. From managing the supply chain, to human resources, to finance, to paying the bills, to marketing activities, to solving everyday problems (like cleaning), these are all tasks that need to be done. When you imagine yourself in your own restaurant, you probably have illusions of beautiful food and lots of customers. But the reality is that most of your time will be taken up with the mundane.
P.F.: „You'll be an accountant, a marketer, a therapist, a mediator, a banker, a customer service manager... and probably a dozen more roles missing. The recipe for the best meal in the world is not enough to make it.”
3. Finding and keeping staff is a constant problem
Anyone who starts opening a restaurant will be shocked at how many employees come and go. Restaurant staff are in crisis, both in the kitchen and on the floor. This means there are always other opportunities for employees, and they can easily switch.
P.F.: „Even if you're running the biggest restaurant in the world, staff attrition will be like a revolving door. It will cause unimaginable stress.”
4. You won't have as many guests as you thought
Everyone is probably overestimating how many guests will arrive. It's better to underestimate the ideal and build your operation on that than to be left behind. There is simply no right recipe for this, as it depends on many factors. It is difficult to calculate the number of customers for an established restaurant, let alone a start-up. Never base it on serious interest and turnover after opening, but on 40 - 60 % over.
P.F.: “Work on a realistic revenue projection based on as much information as possible and don't forget the tax!”
5. Guests require a lot and even more patience
It's important to arm yourself as a restaurant manager against meeting more than just smiling, satisfied customers. There will be a large number of teasers and malcontents, even when they are wrong. Working in the service industry offers a unique insight into the depths of insolence that people can sink into at any time. If one is constantly trying to please everyone, there is a high chance of being psychologically and emotionally damaged.
+1. Opening and owning a restaurant is not just a profession, it's your life
If someone wants to do this, be prepared to be the outsider in the family. The reality of restaurant life is that you will miss birthdays, holidays and trips. He will be tired and fatigued on his days off and never get to switch off.
It's easy to get consumed by business. Even if it is not there, it will be there in spirit. It is important to find a balance between your personal life and work. So you'll need a reliable replacement.
P.F.: „Figure out how to quit, and don't let the guilt consume you when you take a night off, or a whole day off.”
Opening a restaurant, especially nowadays, is a very challenging business. What Michelin-starred chef and restaurateur Philip Foss says is really just the basics. You have to adapt to ever-changing circumstances, every restaurant is different, every concept is different. It is almost impossible to find a one-size-fits-all solution that can work for everyone, everywhere, in all circumstances.
Source : https://www.finedininglovers.com/article/eight-things-to-know-before-opening-restaurant
