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How To Run A Restaurant

How To Run A Restaurant
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

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    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

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    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

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    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

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    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.

    The Fundamentals Of Running A Restaurant – [Forbes]

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    Craig Childs

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

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    Last Updated on October 15, 2019

    How to Plan Your Life Goals and Actually Achieve Them in 7 Simple Steps

    How to Plan Your Life Goals and Actually Achieve Them in 7 Simple Steps

    Where do you want to be 5 years from now, 10 years from now, or even this time next year? These places are your goal destinations and although you might know that you don’t want to be standing still in the same place as you are now, it’s not always easy to identify what your real goals are.

    Many people think that setting a goal destination is having a dream that is there in the far distant future but will never be attained. This proves to be a self-fulfilling prophesy because of two things:

    Firstly, that the goal isn’t specifically defined enough in the first place; and secondly, it remains a remote dream waiting for action which is never taken.

    Defining your goal destination is something that you need to take some time to think carefully about. The following steps on how to plan your life goals should get you started on a journey to your destination:

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    1. Make a list of your goal destinations

    Goal destinations are the things that are important to you. Another word for them would be ambitions, but ambitions sound like something which outside of your grasp, whereas goal destinations are certainly achievable if you are willing to put in the effort working towards them.

    So what do you really want to do with your life? What are the main things that you would like to accomplish with your life? What is it that you would really regret not doing if you suddenly found you had a limited amount of time left on the earth?

    Each of these things is a goal. Define each goal destination in one sentence.

    If any of these goals is a stepping stone to another one of the goals, take it off this list as it isn’t a goal destination.

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    2. Think about the time frame to have the goal accomplished

    This is where the 5 year, 10 year, next year plan comes into it.

    Some goals will have a “shelf life” because of age, health, finance, etc, whereas others will be up to you as to when you would like to achieve them by.

    3. Write down your goals clearly

    Write each goal destination at the top of a new piece of paper.

    For each goal, write down what is it that you need and don’t have now that will allow you achieve that goal. This could be some kind of education, career change, finance, a new skill, etc. Any “stepping stone” goals you removed will fit into this exercise. If any of these smaller “goals” have sub-goals, go through the same process with these so that you have precise action points to work with.

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    4. Write down what you need to do for each goal

    Under each item listed, write down the things that you will need to do in order to complete each of the steps required to complete the goal. 

    These items will become a check-list. They are a tangible way of checking how you are progressing towards reaching your goal destinations. A record of your success!

    5. Write down your timeframe with specific and realistic dates

    Using the time frames you created, on each goal destination sheet write down the year in which you will complete the goal by.

    For any goal which has no fixed completion date, think about when you would like to have accomplished it by and use that as your destination date.

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    Work within the time frames for each goal destination, make a note of realistic dates by which you will complete each of the small steps.

    6. Schedule your to-dos

    Now take an overview of all your goal destinations and make a schedule of what you need to do this week, this month, this year – in order to progress along the road towards your goal destinations.

    Write these action points on a schedule so that you have definite dates on which to do things.

    7. Review your progress

    At the end of the year, review what you have done this year, mark things off the check-lists for each goal destination and write up the schedule with the action points you need for the next year.

    Although it may take you several years to, for example, get the promotion you desire because you first need to get the MBA which means getting a job with more money to allow you to finance a part-time degree course, you will ultimately be successful in achieving your goal destination because you have planned out not only what you want, but how to get it, and have been pro-active towards achieving it.

    Featured photo credit: Debby Hudson via unsplash.com

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