Advertising

How To Run A Restaurant

How To Run A Restaurant
Advertising
knife and fork

    The restaurant business is a huge industry in the USA, growing each year because anyone with any idea about food or wine thinks they can do it. But why do 9 out of 10 restaurants fail?

    It’s a sexy idea–until you realize how hard starting a restaurant really is. Soon enough, questions will be flying like grains of sea salt. What permits do you need? What are your start-up costs? Where should you buy your produce? What corporate structure should you choose?

    Forbes.com have outlined 8 areas in the fundamentals of the restaurant biz:

    Legal Structure

    Advertising

    You have five basic choices: a sole proprietorship, a partnership, a limited liability company or a corporation–either an S corporation or a C corporation. Restaurants–and most small businesses, for that matter–should choose an LLC structure.

    External Threats

    Most restaurants don’t offer much in the way of health benefits. Only 61% of employees in service industries such as restaurants are covered and most hourly paid restaurant workers don’t have access to employer-provided coverage–not exactly a draw for talented workers.

    Best Role Model

    Advertising

    While there are some 660,000 independent restaurants in the U.S., each with its own menu, strategy and clientele, all have something to learn from Starbucks.

    Must-Have Technology

    Tasty fare will only get you so far without timely, accurate service. The latest generation of software-based, point-of-sale systems from Micros Systems and Radiant Systems can help you cater to even the fussiest of customers.

    Important Performance Metrics

    Advertising

    Accounting profits are nice, but for budding restaurateurs, cash flow–which tracks the actual dollars moving in and out the door–is more critical. “If you don’t keep an eye on [cash flow], you realize later you’re in a hole and you can’t recover,” says Chris Yeo, owner of Straits Restaurants in San Francisco.

    Start-Up Costs

    After you snare the right permits, decide whether to start from scratch or fix up an existing eatery. Depending on how fancy your new place is, a blank-slate approach will set you back $100,000 to $300,000 for stuff like industrial cooking and ventilation equipment, refrigerators, freezers, tables, bar stools, shelving and counters with stations for cutting, heating and cooling.

    Permits

    Advertising

    Depending on the location of the business, you will have to file articles of incorporation or organization. (Approval is quick.) Once established, you’ll be able to secure a Federal Tax Identification Number, which registers your business with the federal government so Uncle Sam can take his cut.

    Sourcing Supply

    Finding food and liquor suppliers is easy; sizing them up is trickier. Price is important, of course, but so are quality and safety.

    If you’re still interested, read on.

    Advertising

    The Fundamentals Of Running A Restaurant – [Forbes]

    More by this author

    Craig Childs

    Craig is an editor and web developer who writes about happiness and motivation at Lifehack

    8 Steps to Continuous Self Motivation Even During the Difficult Times How To Start a Conversation with Anyone How Not To Suck At Socializing – Do’s & Don’ts Storage Ideas For Small Spaces New Gmail Filter Hacks

    Trending in Lifehack

    1 Lifehack Reviews: 50 Best Life Hacks for Your Life 2 Best Life Hack Sites – 100 Most Useful Websites on The Internet 3 80 How-To Sites Worth Bookmarking 4 20 Unusual Uses for Coca-Cola That You’ve Never Considered 5 A Review of the Book “The Art of Learning”

    Read Next

    Advertising
    Advertising

    Last Updated on July 12, 2021

    Lifehack Reviews: 50 Best Life Hacks for Your Life

    Lifehack Reviews: 50 Best Life Hacks for Your Life
    Advertising

    Do you want to be as productive as many of us, but missed a lot of actions at lifehack.org during the year? We’ve selected the best 50 life hacks, based on their popularity and contents in different categories. Invest your time – read them. Bookmark this page and mark reading them as one of your new year resolutions.

    Communication, Writing, Studying

    1. My Best Presentation Tricks
    2. The Business Card Game
    3. Persuasive Writing for Students, Webmasters, Bloggers, and Everyone Else
    4. 7 tips of handling your Emails without feeling overwhelmed
    5. Writing as a Form of Self Healing
    6. Advice for students: Writing by hand
    7. Yes, But Do People Like You?
    8. Writing – Just do it!
    9. A good place to study
    10. Blog your way through Writer’s Block
    11. 14 Tips for Communicating Ideas

    Productivity, Creativity, Motivation

    1. 9 Top Secrets of Naturally Born Organizers
    2. Fight The Flab!
    3. More Fight The Flab!
    4. Limit Creativity, Get Innovation
    5. Precious Moments
    6. 5 Ways to Improve Your Productivity in the Office
    7. A Geek’s Best Lifehack
    8. What Kind of Paranoid Are You?
    9. Being A Creative
    10. There’s No Time!
    11. The Mysteries Behind Motivation and How To Manipulate Them
    12. Time Management: Handling Disruptions in Daily Schedules
    13. Productivity Hack: Write Mini Process Flows
    14. Design an Online Workflow

    Management, Self-Management, Entrepreneurship

    1. Bare Bones Project Hacks
    2. The 10 Beliefs of Great Managers
    3. The Simplest Path to Success
    4. Letting Things Go
    5. Closet Entrepreneur
    6. Time To Discard The Portmanteau
    7. 5 Important Keys to Bootstrap Your Entrepreneurship
    8. The Most Underutilized Tool for Effective Communication
    9. Everyday Performance Reviews
    10. Meetings, @&!!$*@ Meetings!
    11. What Are You Worried About?
    12. How to Ruin Your Career In Five Easy Steps

    Procrastination, Goal Settings, Life

    1. 9 Steps to Define your Goal Destination and Devise a Plan to Get There
    2. Pro-Active Steps to Prevent Procrastination
    3. Improve Your Life By Following A Schedule
    4. The Causes of Procrastination And How To Conquer Them
    5. How To Make Resolutions You’ll Keep
    6. Literal Life Hack: Cut your window of time in half
    7. New Year’s Resolutions and Deficit Thinking
    8. 6 Sleep Tips
    9. Risks versus Rewards Worksheet
    10. 5 Tips for Getting Out of Debt (and Why)
    11. Deep Breathing: A Great Health Trick
    12. 8 Expenses to Cut and How
    13. Desk-side Fitness

    Are there any lifehacks that you’ve learned over the past year?

    Advertising

    Featured photo credit: Rainier Ridao via unsplash.com

    Advertising

    Advertising

    Read Next