assignment on set up a restaurant

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Table of Content 7 Consideration Opening a Restaurant Planning Blue Print Develop a Business Plan Location Target Market Organizing Create Menu Get Funding Leading Communicating Motivating Inspiring Encouraging Controlling Regulative Controls Financial Controls Quality Control Work in a Restaurant Know Your Select a Service Style and Food Concept Develop a Business Plan Create a Menu Choose a Location and Layout

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Page 1: Assignment on Set up A Restaurant

Table of Content

7 Consideration Opening a RestaurantPlanning

Blue Print Develop a Business Plan Location Target Market

Organizing Create Menu Get Funding

Leading Communicating Motivating Inspiring Encouraging

Controlling Regulative Controls Financial Controls Quality Control

Work in a RestaurantKnow Your Select a Service Style and Food ConceptDevelop a Business PlanCreate a MenuChoose a Location and LayoutGet FundingBe Familiar With Safety RegulationsHire Employees

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7 Consideration Opening a Restaurant

1.Decide on a Concept

Design a hypothetical menu and make sure its something you have knowledge and passion for. What are your price points going to be? What is socio-economic demographic who can afford these price points? Then find a neighborhood where the earning demographic can support the price points of your concept.

2.Do Some Market Research

Find out how many households per restaurant are in your eligible price point range neighborhoods. Find out how many restaurants sell the same

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thing within 5 miles of that neighborhood. Find out the ratio of residential housetops within 5 miles and how many businesses (large and small) within 3 miles (5 minute drive). These numbers are critical to determining whether you have a better shot at breakfast, lunch, dinner, catering, etc.

3.Go on the Fantasy Location Search

This is where you get to have fun and taste the dream a little bit. This is also where reality has a chance to rear its ugly head. Go visit commercial real estate offices in your selected neighborhoods and get tours of available properties. Don’t get too romantic about any location: You’re still weeks, if not months away from being ready to even consider signing a lease. This is purely a fact-finding mission.

4.Telemarketing for Local Service Providers

Call pest control, equipment and refrigeration service contractors, linen services, dishwasher/chemical service companies, and, most importantly, business insurance providers and city and county governmental fees &

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licensing departments to get monthly, quarterly, and annual costs. Then call your local bar and ask them to double your monthly tab; you’ll be needing a lot more to drink.

5.Build Your Model Restaurant

Get out the old Excel spreadsheet or your favorite college ruled legal sized writing pads — restaurants are never successful when drawn out on standard writing pads. List all your gathered information in a monthly and quarterly format and extend for one full year, then multiply the monthly number by 1.5. This will anticipate forgotten or omitted data and predict price increases in utilities and expenses throughout the year. These figures represent your fixed costs for the year.

6.Add Staff and Food to Determine Sales

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Let’s figure, in your first year you will run high food costs (40%) and high labor costs (30%), while you figure out customer flow, proper ordering, and scheduling. So multiply your fixed costs by 2.4 and this should give you your total monthly operating expense. Yes it’s very high, but, let’s face it, you might be too for wanting to open this place! Now, divide your total monthly expenses by your average dish price point, distill that figure down to weekly and daily expenses, and this will tell you basically how many customers you will need to be a success.

7.Panic!

If this figure scares the bejesus out of you, then go back and repeat steps 1 through 6 until you find a concept and expense profile you can live with.

This is the best way to get real about the possibility of opening a place of your own. This virtual model is then whittled down to create your profits by controlling those costs and adding sales volume. The next things to think about are the role of a consultants in this process, location and design, start-up and marketing costs, and, probably the most difficult issue, funding and finance.  Please feel free to drop me a message in the comment section below and ask me any questions you may have.

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PlanningOur Planning of Restaurant consist based on some factors such as:

1. Blue Print of Our Restaurant

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2. Develop A Business PlanWe have emphasis upon our target sell. And motivate our employee enough to get fulfill their targeted sale. Especially in the occasion we have to extra concern on sale and be careful about guest service. Planning is an ongoing step and can be highly specialized based on organizational goals, division goals,

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departmental goals, and team goals. It is up to the manager to recognize which goals need to be planned within his or her individual area.

3. Our Target Market

Teens, students and young adults

Maintain a Website Focus on Value Implement Viral Market Choose Music Carefully

Families and children

Make the adults comfortable Train servers to be polite and patient with children. Make sure changing stations, high chairs, sippy cups and bibs

are readily available. Provide children with toys, crayons and paper at the table, but

only after asking permission from the parents. Give families an oversized table to allow them enough room to

spread out. For example, if a family of four comes in, seat them at the table for six.

Seniors  Retirees Have Money Senior Citizens like Having Fun The Population is Growing

Empty nesters

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Tourist Distribute Paper Momey Offer good parking Take away service

VegetariansEco-conscious people Business peopleSports fans  Gay communityAfter-bar crowdHappy hour crowd

To increase sales during slow hours. To attract customers who might not otherwise try your

restaurant. To showcase your appetizers and/or drinks at a good value. To encourage customers to associate your restaurant with “fun.” To attract a specific market during a specific time. For example,

you may use a Happy Hour to target Sunday football fans, businesspeople getting off work, the weekend brunch crowd, etc.

Lunch break crowd  Discount for large parties Social Media Offer delivery to local Business

Music lovers

Restaurant Marketing

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Promotional Flexibility:

Dairy Queen began implementing digital menu messaging because it offered the flexibility and capacity to promote over 47 different menu types. The result showed that in most cases, items featured on digital signage boards increased in sales from year to year.

Improved Sales:

Digital menus can play an especially important role in improving sales in this, the digital age of communication. Wendy’s restaurants have also seen sales improve by 12 to 13 percent in restaurants with digital signage in comparison to those with traditional signage.

Tablet Menus For The Table:

While digital menu boards and signage have been helpful in quick serve restaurants, digital tablet menus work especially well for sit-down restaurants. These items are useful for many of the same reasons mentioned above, but the concept of handheld or tableside technology can make more sense in a fine dining or sit-down restaurant. Many customers are already accustomed to using iPads and other handheld devices in their everyday lives.

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Exciting Interactivity:

When restaurateurs can come up with creative, attractive graphic design and then place it in the customers’ hands to explore, the dining experience becomes more interactive. Customers may even be able to offer comments or input marketing data on the spot, yet without feeling pressured. Interactivity can make the customer feel more involved during the dining process, and may even improve loyalty.

Improved Communication:

Wired magazine suggests that placing iPads in the hands of customers is the best new way to promote restaurant marketing and menu communication. The trend is most often seen in forward-thinking fine dining restaurants. These types of menus are designed to improve internal menu communication in ways like these:

Better visibility. Tablets are bright, with clean design and manual zooming abilities, excellent for dimly lit dining rooms or anyone with poor eyesight.

Searchable. The menu is scrollable and searchable, making it easy to look for particular items. This is especially useful for a menu with a lengthy wine list.

Easy alterations. When the restaurant runs out of a daily special or wants to update a certain item, the digital process can make this look nicer, cut down on printing costs, and eliminate disappointment when something is sold out.

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Restaurant Management & Operations

Actual UsageThe amount of food product and supplies that are physically used in a given time period.

Back of the House (BOH)The area of the restaurant or food service operation that customers typically do not access, such as the manager’s office, the kitchen area, the storage areas and the employee break room.

Build-to-AmountThe amount of a certain product the restaurant should always have on hand. When ordering, managers essentially need to build their up inventory to the appropriate build-to amount. This is another term for par level.

Cash FlowThe movement of moneys within a restaurant business, specifically income and expenses.

Casual Dining Restaurant

Full-service restaurants are geared more toward the every-day dining experience. The décor, food and service tends to be more informal and often more family oriented than fine-dining restaurants.

FIFO

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The first-in, first-out method of rotation used in restaurants to avoid expiration by using up older products before newer ones.

Full-Service RestaurantOperations that offer guests complete table service including seating guests, taking beverage and food orders, delivering food and clearing the table. These restaurants often employ hosts or hostesses, servers and bartenders to deliver full table service.

InventoryThe physical food, beverages and supplies the restaurant has on the line or in its storage areas.

Menu PriceThe selling price for a restaurant’s goods, often obtained by taking the food cost of the menu item and dividing by the desired food cost percentage.

Shelf-lifeThe length of time until a food or beverage product expires on the shelves.

TipsThe money guests customarily pay servers and other restaurant workers for good service during the dining experience. Tips usually supplement restaurant workers’ overall income.

Waste

The food or supplies that are spilled, burned, incorrectly prepared or otherwise misused or expired and thrown away. High waste will negatively affect food cost.

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Restaurant MenuWhen starting a new restaurant, creating the menu is one of the most-important responsibilities that you will undertake as the restaurant owner. The items you put on your menu will be responsible for bringing in the revenue that it takes to run the business. We considers some steps to create our restaurant menu:Step 1Promote your most-profitable items. These are the items that have a low cost for the ingredients and can be sold at a high market. These items may require a very small amount of time from your staff to prepare. Focus on promoting these items over the other offerings. If you can steer people into items you want them to order, it can significantly improve your profit margins.

Step 2Emphasize the items that you want ordered with menu design tricks. A talented graphic designer can help emphasize something on the page. For example, drawing a colorful box around a featured item can naturally draw the eye of the customer to that offering. The layout of the menu can have a drastic impact on what the customer’s order. If you are featuring your most-profitable items, it will lead to more profit for you in the long run.

Step 3Use relative pricing to make some of your most-profitable items look more attractive. For example, if you have one dish that is priced significantly higher than the others, it may make the rest of the dishes look more attractive. If one dish is priced at $35, the $20 plate does not seem as expensive. While this will not always work, it can influence many customers.

Step 4Put your best offerings at the top of the category. Most restaurants place their most-profitable items at the top of a particular food category. The majority of orders come from that section, so it only makes sense to put your best dish in that slot.

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Step 5Include photos of the dishes in your menu. With a large photo of a featured dish on the menu, customers will be more likely to order it. If the customer has no idea what the food looks like, he may be hesitant to give it a try.

Specimen of MenuThis is a sample menu of our Restaurant. This is not final at all. It could be develop later as per company policy. And menu will include some foreign menu like: Chinese, Thai

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and Indian Food as well.

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LeadingCommunication:Many common problems in restaurants result from poor communication and could be avoided by implementing simple workplace procedures. Creating proper two-way contact policies can help you avoid staffing, scheduling, reservations, and order and inventory problems. Some feature of communication:

Features of the day, including additional notes regarding the features.

Any promotions you have running Any contests or incentives you are running Policy changes or planned enforcement What the daily side work or sanitation duties are and who

they will be assigned to Tips of the day, from up-selling and menu knowledge,

service tips to cooking skills.

There are many benefits to having regular pre-shift meetings:

Creating a positive work environment Happy customers Make more money

The following are the top five personal qualities or skills potential employers seek:1. Communication skills (verbal and written)2. Strong work ethic3. Teamwork skills (works well with others, group

communication)4. Initiative

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5. Analytical skills

MotivationCompetitive salariesIt is very useful to enquire as to what the salaries are in other establishments so you can compare them to the ones you offer. You can easily see what a big problem you would have is one of your experienced and reliable staff members leaves to work for your competition.

Recognize and reward good resultsThere are various situations in which you can praise the good results of your staff: compliments from satisfied customers, helping a colleague in his/her station, an innovative idea to improve business are some of many.You must recognize those moments and let your staff know you are aware of their effort. A couple of words of praise can be the first step.

Working hoursHow to motivate team in your restaurant if your staff working overtime? Overtime not discussed and agreed with employees can cause discontent. Stick to agreed shifts and working hours and reduce the risk of causing dissatisfaction. Introduce the possibility of employees seeing their schedule in advance so they can plan their free time and be relaxed.

Socialize with your staff off the clockIn addition to annual vacations of your staff, think about socializing with them outside of working hours, for example throwing an informal barbecue or a Sunday lunch party, where everyone can feel they are a part of the team and have fun. Result of these gatherings, popularly called team building, are trust and togetherness.

IncentivesA loss of an employee means you will have to spend money on replacement and training of a new one. In the meantime your schedule will be incomplete and the service below your desired level. However, if an existing employee knows they will get a bonus for the extra effort he/she puts in, it is very likely the service will not suffer and dedication from your staff will remain unaffected.

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Controlling Cost of Food & LaborPerform Food Cost CalculationsThe first step in controlling foods costs is to determine what they are, per diner. You can do this by calculating the expense of each ingredient that goes into each dish, or divide the total number of diners you serve per month by your monthly food costs. Food costs include the cost of the food, delivery, interest on those purchases, spoilage, theft and make-good meals returned for lack of quality.

Evaluate Menu PlanningKnowing the food costs of individual dishes lets you determine whether they belong on your menu. For example, if your overhead cost per customer is $7 and your food cost for a specific lunch dish is $4, your cost to serve that customer is $12. Customers must pay $11, as well as for a drink, tip and tax, and your desired profit margin, which brings the bill to more than $15.

Reduce Waste and TheftUse ordering, inventory and security techniques that reduce food from going bad or being stolen. Keep track of monthly and annual traffic to better project demand and prepare for sales peaks and valleys. Record how many dishes are returned each service and why, and how many meals you comp

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or replace to determine if the problem is a particular cook or one or two dishes you need to eliminate

Schedule Staff EfficientlyReview your expected tables for each service during the week and mix your staff to ensure you don’t end up with all rookies during one lunch rush and all veterans during a slow dinner. Have fewer staff members for set-up and takedown than during a service to minimize your costs.

Cross-Train StaffThe more each staff member can do, the more productivity you’ll receive from each. Slow service can doom a restaurant as customers leave or make the decision not to return. Train your prep cooks to prepare menu items and managers and bus staff to serve diners to help out during rush periods.

Improve Staff QualityRestaurants rely on repeat customers and sales of non-entrée items to maximize revenues. Paying the least amount for dining room staff can lead to frequent turnover and poor customer service. Consider paying high-quality, trained staff more and teach them to know how to sell specials, upsell appetizers, desserts and drinks, remember regular customers and their preferences and work with your kitchen staff to get orders in and out quickly.

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Our LocationSelecting Location is an important task to open a restaurant. After research of market we select our location In Zigatola Dhanmondi Dhaka depends on our target customers. This is such road where school collage University Corporate Office and residential are nearby this location.

The old saying of "location, location, and location" is vital in the restaurant world. It is important to find a location that has a continuous stream of traffic, convenient parking, and is in proximity to other businesses (especially if you're catering to the lunch crowd). And don't forget to revisit your business plan to make sure you are close to your target market. If you are opening a restaurant/night club, it may not be the best idea to open it in the vicinity of retirement homes. In addition, make

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sure your monthly rent is in-line with your business plan's projected profit so that you do not become building-poor.