How to Finding The Perfect Location and Start Your Restaurant or Bar Business

Embarking on the journey of opening your own restaurant or bar is not just a business venture, but a thrilling and enriching experience. Bringing your unique vision to life and sharing it with others through food, drinks, and hospitality is a dream for many. However, it also requires hard work, perseverance, and the proper knowledge to be successful. This comprehensive guide will walk you through the critical steps of finding and starting your own restaurant or bar business, inspiring you to turn your dream into a reality.

Developing Your Business Concept

At the outset, it’s crucial to crystallize your vision for the type of restaurant or bar you aim to establish. This involves considering key aspects such as the cuisine type, theme or design, target market, price point, alcohol focus, and entertainment. This initial step lays the groundwork for your entire business concept.

• Cuisine type—What kind of food do you want to serve? Popular options include Italian, Mexican, seafood, brunch, and burger joints.
• Theme or design—What will your restaurant’s look and feel be? Rustic, modern, artsy, etc. This includes décor, furniture, and colour schemes.
• Target market – Who is your ideal customer? Families, college students, professionals, tourists, etc. This will impact many decisions.
• Price point – Do you want fine dining with higher check averages or more budget-friendly casual dining?
• Alcohol focus: What types of drinks and atmosphere do bars offer? Craft cocktails, beer bars, wines, lively nightclubs, etc.
• Entertainment – Will you have live music, trivia nights, sports viewing? This adds to the experience.

Envision your concept so you can convey it when looking for a location and start planning the menu, branding and marketing.

Finding the Right Location

Location is critical to success in hospitality. Here are effective ways to find the perfect spot:

• Check commercial real estate listings for restaurant/bar spaces for lease. Look at foot traffic, parking, and nearby attractions.
• Hire a broker specialising in the restaurant/bar industry to help identify options.
• Search for restaurants that have recently closed. You can take over their spot and existing equipment. Look for why they closed – was it the concept or the location?
• Consider anchor locations within shopping centers, entertainment districts, sports arenas, etc. There’s a built-in customer base.
• For bars, look for dense residential areas with younger demographics. This provides a steady local crowd.
• Drive around town and look for “For Lease” signs, especially in up-and-coming areas.
• Look for vacant spaces with the proper zoning and utilities, like restaurant ventilation.

When evaluating locations, look at the competition nearby. Make sure your concept is differentiated enough to stand out. Also, noise regulations and licensing requirements for serving alcohol should be considered.

Understanding the Costs Involved

Opening a restaurant or bar requires significant upfront capital. Be aware of all the costs involved:

• Rent deposit and first few month’s rent for the location
• Renovations and furniture/fixtures for the space
• Kitchen equipment – ranges, ovens, refrigeration, cookware, etc.
• Bar equipment – draft systems, glasses, bottles, etc.
• POS systems – cash registers, credit card readers, computers
• Licensing and permits – food, alcohol, business, building
• Initial inventory – food, liquor, beer, wine, etc.
• Staffing – first few months of wages, training
• Branding – logo design, menus, uniforms, signage
• Insurance – property, liability, workers’ comp
• Professional fees – lawyers, accountants, consultants
• Marketing – advertising, website, grand opening events
• Working capital cushion – at least three months of operating expenses

Thorough research and planning are essential to ensure your budget covers all the necessary startup costs. This comprehensive budget plan will be instrumental in securing the required funds through various means such as loans, investors, crowdfunding, and personal savings.

Building Your Team

Hire the right team, and everything else will fall into place more smoothly. Key roles to fill:

• General Manager – Someone with experience running a day-to-day restaurant or bar operations. They oversee the staff and finances.
• Head Chef – For restaurants, an experienced chef who can run the kitchen and craft menus.
• Bar Manager – A mixologist can create drink menus and train bartenders for bars.
• Servers, Bartenders, Hosts – Friendly and professional front-of-house staff who give excellent service.
• Line Cooks, Dishwashers – Reliable kitchen staff to help prep, cook, and clean.
• Marketing Manager – Handles advertising, social media, and events to promote your business.

Provide thorough training on your concepts, systems, products, and service standards. Hire slowly as needed. Get legal advice on employment contracts and policies to protect your business.

Handling Licensing and Permits

Navigating the legal and regulatory requirements can get complex, but operating legally is necessary. Here are essential items:

• Business License – Register your business name and tax accounts.
• Food Service Permit – Obtain this from your health department to serve food/drinks.
• Liquor License – Mandatory for serving alcohol. Get the correct class based on revenue.
• Music Licensing – Get public performance licenses if you have live or recorded music.
• Insurance – Obtain property, liability, worker’s comp as required.
• Zoning Approval – Get approval for restaurant/bar use in that zone.
• Fire and Building Permits – For any renovations or new construction.
• Federal EIN – Get an Employer Identification Number for hiring employees.

Hire lawyers and contractors familiar with hospitality businesses to ensure you are fully compliant and permitted.

Designing the Space

The layout and decor of your restaurant or bar make a lasting first impression. Consider these design elements:

• Create an inviting entryway. Invest in signage, lighting, and decor.
• Use seating layouts that are comfortable and flexible. Booths, bars, high tops, patio.
• Incorporate your theme through furniture, wall art, music, and lighting fixtures. Stay consistent.
• Allow room for high-traffic areas, such as waiting areas, bars, restrooms, and takeout counters.
• Kitchens should be efficient, well-ventilated, and meet safety codes. Easy access for deliveries.
• Bars should be visible and have space for patrons and bottle/glass storage.
• Build customer flow for servers to navigate smoothly between the kitchen and tables.

Hire commercial designers and architects with experience in restaurants and bars. A thoughtful layout and decor enhance the guest experience.

Crafting Menus

Your food and drink menus will be a crucial part of first impressions. Keep these factors in mind:

• Concept – Menus should align with your cuisine type, price points, and target market. Stay consistent.
• Offerings – Balance crowd-pleasing staples with seasonal specials and innovative dishes/drinks.
• Costs – Price menu items appropriately based on product costs and profit goals. Track sales.
• Sourcing – Use high-quality suppliers and leverage relationships to find the best deals.
• Equipment – Ensure you have the kitchen gear to prepare each menu item.
• Layout – Well-organized menus are more accessible for the kitchen and servers. Descriptions should entice.
• Printing – Invest in professional, durable menu design and printing. These represent your brand.

Adapt and upgrade your menus seasonally based on customer feedback and costs, and keep things fresh.

Managing Inventory

Careful management of your food and drink inventory is vital for restaurants and bars. Follow these best practices:

• Maintain consistent volumes of high-turnover ingredients and popular liquor brands. Stock just what you need.
• Order from vendors strategically based on usage, shelf life, and delivery days.
• First in, first out (FIFO) rotation of all inventory and expiration tracking. Don’t run out of critical items!
• Use pars or designated order quantities based on sales data, not just guessing.
• Receive deliveries promptly and confirm order accuracy.
• Organise refrigeration, shelves, and store rooms cleanly and logically.
• Take regular inventory counts and compare them to sales data. Address discrepancies quickly.
• Utilise inventory management software if possible – this automates ordering and tracking.

Keep inventory lean but sufficient. Use your sales data to make ordering efficient. This optimises cash flow.

Creating Your Brand

Branding is more than just a logo. It’s the look, feel, personality, perceptions, and emotions people associate with your business. Bring this to life with the following:

• Create a logo that reflects your concepts—classic, playful, elegant, retro, artsy. Use this across all branding.
• Names for your business and menu items that align with your brand identity. Be creative and memorable.
• Taglines or positioning lines that convey your unique value, experience, or speciality.
• Uniforms for staff that look cohesive and reinforce the brand – t-shirts, aprons, hats.
• Homogenous design for menus, coasters, napkins, bags, decor, and signage.
• Custom playlists that match the vibe you want patrons to feel—upbeat and lively or chill and relaxed.
• Unique touches like signature cocktails, branded beer taps, and featured local artists.

Consistency is key. Every sensory detail should bring your brand personality to life.

Marketing Your Business

Start marketing initiatives 1-2 months before opening. Focus on:

• Social media – Create accounts on Facebook, Instagram, and TikTok. Share photos, videos, and events.
• Website – At minimum, have hours, location, menus, and contact info. Update with events.
• Advertising: Use local publications, radio, social media, and Google/Facebook ads. Focus on your niche.
• PR – Pitch stories to local lifestyle reporters. Offer to host media events.
• Influencers – Invite bloggers and local personalities to dine. They drive word of mouth.
• Signage – Install clear exterior signage that drivers can easily see.
• Deals – To attract customers, run specials like happy hours, ladies’ night, and brunch discounts.
• Networking – Introduce yourself to nearby businesses, chambers of commerce, and visitor bureaus.
• Grand opening – Host a VIP/media party 1-2 weeks before fully opening to generate buzz.

Consistency across your brand image, messaging, and promotions brings everything together. Track effectiveness and adapt.

Providing Amazing Service

Success comes down to consistently providing excellent hospitality and service:

• Hire for attitude – Warm, friendly personalities that naturally connect with patrons.
• Train thoroughly – Set clear service standards and shadow experienced staff.
• Empower decision-making – Give staff authority to fix issues immediately without manager approval.
• Communicate – Hold pre-shift meetings to update on specials, events, and restocks.
• Teamwork – Foster collaboration between front and back of house staff. A sense that “we’re all in this together”.
• Wow factor – Think outside the box for unique touches and ways to exceed expectations regularly.
• Get feedback – Seek customer feedback through surveys, reviews, and suggestion boxes.
• Reward excellence – Praise top performers publicly. Incentivise with gift cards or prizes.

Excellent service builds loyalty. It should be the foundation of your culture.

Managing the Finances

Savvy financial management is critical to profitability and longevity. Operators should:

• Maintain orderly bookkeeping with income statements, payroll, and tax filings.
• Use POS software and inventory management to accurately track sales data, costs, and margins.
• Analyse sales and costs weekly/monthly. Take corrective action promptly when needed.
• Maintain proper cash flow to cover monthly expenses. Beware of slow winters.
• Use labour efficiently with accurate scheduling. Add/cut hours based on sales.
• Ensure pricing covers costs and meets profit goals. Adjust menus seasonally.
• Keep budgets for marketing, maintenance, repairs, and capex investments. Plan.
• Watch for theft! Inventory management and security procedures deter losses.

With solid systems, data is power. Financial discipline is the compass guiding your business.

In Summary

Opening a winning restaurant or bar takes vision, passion, skill, and hard work. But the rewards? Bringing people together through unforgettable food, drinks, and hospitality. Build a vibrant business that becomes a community treasure for years to come. It all starts with the fundamentals we’ve outlined above. Here’s to your success! Cheers!