For some reason, many people think that owning a restaurant is a quick way to make money. After all, everybody eats, right? But what they don’t know is that restaurant owners juggle multiple tasks and assume different roles to keep their business running. This usually involves devoting many hours to ensure their operation goes smoothly; applying for restaurant business loans; and even cooking delectable meals.
Running a restaurant is a huge responsibility. If you’re planning to open one anytime soon, here are six myths you should know about.
Myth 1: You need extensive industry knowledge before you open a restaurant
While you don’t need extensive knowledge to run a restaurant, you do need to research and learn more about operating one as you go along. The good news is that you don’t have to do it alone. Restaurateurs can find a mentor or an adviser who can guide them in running a successful restaurant. Fast-food chains and quick-service restaurants are more prone to sudden revenue fluctuations because of seasonality, unexpected expenses, and inventory with a short shelf-life. With the guidance of a mentor, you can navigate through issues much more easily.
Myth 2: You’ll make a lot of money
Let’s face it; entrepreneurs go into business to make money. However, if your goal is to get rich fast, you might want to reconsider opening a restaurant. While it’s true that restaurants can earn a lot of money, most of it is going to be reinvested to keep your business going. You’ll need it for expenses such as payroll, inventory, supplies, utilities, rent, and more. Restaurant owners can make a good living but only if they’re willing to put in work and time. At various times, restaurateurs have waited tables, managed staff, and cooked meals themselves.
Myth 3: You must do everything yourself
New business owners often want to do everything themselves because they want to protect their investment. They don’t trust other people to handle operations. However, this will only do more harm than good. Studies show that most entrepreneurs had a hard time dealing with financing/bookkeeping, marketing, and legal/compliance when they began their business. It’s better to outsource these tasks rather than risk committing mistakes that can negatively affect your business.
Aside from outsourcing, you can also automate certain aspects of operations. There are applications for managing different tasks such as scheduling, digital marketing, social media marketing, inventory management, and more. With the right tools, you can greatly improve operational processes, boost productivity, and increase efficiency.
Myth 4: Your family recipes are the foundation of a successful restaurant
Obviously, delicious, and hearty recipes are a huge factor in determining the success of your restaurant. But even if your customers love your family recipes, this doesn’t mean your restaurant will be a success. If you’re too focused on cooking, you may find yourself neglecting the key aspects of your business such as customer service, marketing, and great staff. It’s important you invest quality time to hire, train, document, and supervise your staff.
Most restaurant owners will agree that staffing is one of the biggest challenges you will face as a restaurant owner. A more proactive approach and setting realistic expectations work best if you’re planning to open a restaurant.
Like the best restaurants in Atlantic City, they do not depend on recipes that come from family or tradition. Impressive menus are the result of their exploration of different kinds of dishes.
Myth 5: You need to hire a lot of people
Unfortunately, you’ll never know what to expect when you open your doors to the public. Will there be too many people or too few? Hiring additional staff not only adds to your overhead costs, but it creates confusion as well. It’s best to start small and work your way up regarding your labor needs. The last thing you want to do is to over-staff during slow hours or under-staff during peak hours.
Myth 6: You’ll know how to run a successful restaurant if you’ve worked in one
Sadly, this isn’t always the case. Even if you’ve worked as a waiter or a chef for many years, it doesn’t mean that you know the ins and outs of running a business. Operating a restaurant goes beyond food and service. Being a restaurant owner means dealing with multiple tasks at once, such as:
- Marketing/Advertising
- Financing
- Payroll
- HR
- Legal
- Management
- Maintenance
- And more
These various areas of business administration require different sets of skills. To be a successful business owner, you can learn to master each of these areas or outsource it to other professionals. It’s important to maintain a perfect balance, otherwise, your business won’t be as profitable, and it could fail entirely.
Restaurant Business Loans for Your Restaurant
Whether you just opened your first branch or your fifth one, working capital will always be an important factor in the success of your business. Without it, you won’t be able to run your restaurant effectively. If you’re short on capital, you can always apply for restaurant business loans. In this way, you’ll have access to additional working capital whenever you need it.
