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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]

    More by this author

    Craig Childs

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

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    Last Updated on January 2, 2020

    How to Break Out of Your Comfort Zone

    How to Break Out of Your Comfort Zone

    Over time, we all gather a set of constricting habits around us—ones that trap us in a zone of supposed comfort, well below what our potential would allow us to attain. Pretty soon, such habits slip below the level of our consciousness, but they still determine what we think that we can and cannot do—and what we cannot even bring ourselves to try. As long as you let these habits rule you, you’ll be stuck in a rut.

    Like the tiny, soft bodied creatures that build coral reefs, habits start off small and flexible, and end up by building massive barriers of rock all around your mind. Inside the reefs, the water feels quiet and friendly. Outside, you think it’s going to be rough and stormy. There may be sharks. But if you’re to develop in any direction from where you are today, you must go outside that reef of habits that marks the boundaries of your comfort zone. There’s no other way. There’s even nothing specially wrong with those habits as such. They probably worked for you in the past.

    But now, it’s time to step over them and go into the wider world of your unused potential. Your fears don’t know what’s going to be out there, so they invent monsters and scary beasts to keep you inside.

    Nobody’s born with an instruction manual for life. Despite all the helpful advice from parents, teachers and elders, each of us must make our own way in the world, doing the best we can and quite often getting things wrong.

    Messing up a few times isn’t that big a deal. But if you get scared and try to avoid all mistakes by sticking with just a few “tried and true” behaviors, you’ll miss out on most opportunities as well.

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    Lots of people who suffer from boredom at work are doing it to themselves. They’re bored and frustrated because that’s what their choices have caused them to be. They’re stuck in ruts they’ve dug for themselves while trying to avoid making mistakes and taking risks. People who never make mistakes never make anything else either.

    It’s time to pin down the habits that have become unconscious and are running your life for you, and get rid of them. Here’s how to do it:

    1. Understand the Truth about Your Habits

    They always represent past successes. You have formed habitual, automatic behaviors because you once dealt with something successfully, tried the same response next time, and found it worked again. That’s how habits grow and why they feel so useful.

    To get away from what’s causing your unhappiness and workplace blues, you must give up on many of your most fondly held (and formerly successful) habits. and try new ways of thinking and acting. There truly isn’t any alternative. Those habits are going to block you from finding new and creative ideas. No new ideas, no learning. No learning, no access to successful change.

    2. Do Something—Almost Anything—Differently and See What Happens

    Even the most successful habits eventually lose their usefulness as events change the world and fresh responses are called for. Yet we cling on to them long after their benefit has gone.

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    Past strategies are bound to fail sometime. Letting them become automatic habits that take the controls is a sure road to self-inflicted harm.

    3. Take Some Time out and Have a Detailed Look at Yourself—With No Holds Barred

    Discovering your unconscious habits can be tough. For a start, they’re unconscious, right? Then they fight back.

    Ask anyone who has ever given up smoking if habits are tough to break. You’ve got used to them—and they’re at least as addictive as nicotine or crack cocaine.

    4. Be Who You Are

    It’s easy to assume that you always have to fit in to get on in the world; that you must conform to be liked and respected by others or face exclusion. Because most people want to please, they try to become what they believe others expect, even if it means forcing themselves to be the kind of person they aren’t, deep down.

    You need to start by putting yourself first. You’re unique. We’re all unique, so saying this doesn’t suggest that you’re better than others or deserve more than they do.

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    You need to put yourself first because no one else has as much interest in your life as you do; and because if you don’t, no one else will. Putting others second means giving them their due respect, not ignoring them totally.

    Keeping up a self-image can be a burden. Hanging on to an inflated, unrealistic one is a curse. Give yourself a break.

    5. Slow Down and Let Go

    Most of us want to think of ourselves as good, kind, intelligent and caring people. Sometimes that’s true. Sometimes it isn’t.

    Reality is complex. We can’t function at all without constant input and support from other people.

    Everything we have, everything we’ve learned, came to us through someone else’s hands. At our best, we pass on this borrowed existence to others, enhanced by our contribution. At our worst, we waste and squander it.

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    So recognize that you’re a rich mixture of thoughts and feelings that come and go, some useful, some not. There’s no need to keep up a façade; no need to pretend; no need to fear of what you know to be true.

    When you face your own truth, you’ll find it’s an enormous relief. If you’re maybe not as wonderful as you’d like to be, you aren’t nearly as bad as you fear either.

    The truth really does set you free; free to work on being better and to forgive yourself for being human; free to express your gratitude to others and recognize what you owe them; free to acknowledge your feelings without letting them dominate your life. Above all, you’ll be free to understand the truth of living: that much of what happens to you is no more than chance. It can’t be avoided and is not your fault. There’s no point in beating yourself up about it.

    Final Thoughts

    What is holding you in situations and actions that no longer work for you often isn’t inertia or procrastination. It’s the power of habitual ways of seeing the world and thinking about events. Until you can let go of those old, worn-out habits, they’ll continue to hold you prisoner.

    To stay in your comfort zone through mere habit, or—worse still—to stay there because of irrational fears of what may lie outside, will condemn you to a life of frustration and regret.

    If you can accept the truth about the world and yourself, change whatever is holding you back, and get on with a fresh view on life, you’ll find that single action lets you open the door of your self-imposed prison and walk free. There’s a marvelous world out there. You’ll see, if you try it!

    More About Stepping Out of Comfort Zone

    Featured photo credit: teigan rodger via unsplash.com

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