Rules for running a successful restaurant business

Running a successful restaurant business is becoming a great challenge for the owners. But hard-work, dedication and unique work strategy can make you successful
  • BY Sanjana Surbhi

    Feature Writer, BusinessEx

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  • Jun 07,2018
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  • 15 Mins Read

Restaurants, the word says it all. The first thing that comes to mind is food and lots of food. But have you ever given a thought about how people manage to run a restaurant. Trust me, it’s not as simple as it sounds. According to a study by Professor Dr. HG Parsa, an MS in food science and Associate editor of the journal of Hospitality and Tourism says, 59% of restaurants fail in the first three years of their operations. In the first year, 26 percent of them fail, in second year 19 percent and 14 percent in the third year. However, when compared to other businesses restaurants business is quite beneficial and prosperous. That’s why most people prefer this business.

Reasons for failure

Not everyone is a born entrepreneur. Everyone learns from their mistake. Same is the case with this business. There are plenty of restaurants out there, why will people come to your startup if you don’t have anything new to offer. In the world of cut-throat competition, you have to be different from other with a proper business plan. Restaurants business is more than just opening and running it. It involves a lot of market research and studies. Due to lack of research 26. percent of the restaurants fail in the first year. Other reasons are, low investment start-up capital, wrong location, lack of original ideas and etc.

To run a successful restaurant business is becoming a great challenge for the owners. But with hard-work, dedication and unique work strategy can make you successful. Keep yourself in the place of your customer and then think what kind of food and ambience they expect, accordingly plan your strategy.

The founder of Jus’Trufs Bangalore, Chenddyna Schae told all about running a successful restaurant/café business. She began her venture as a home business many years ago. Gradually, the word about her delicious chocolates got around and she started getting a huge number of orders. She said that, “In those days, it was mostly word of mouth.” From a small business to establishing a café and now running it successfully is not easy. She told some of the ground- rules that should be kept in mind, while running a successful restaurant business,

Simple yet different and delicious

You may not realize but restaurant’s menu works as a marketing tool. You need to keep your menu as simple as possible with not more than seven to eight pages. Some people don’t even need all this choices. Concentrate more on food of that you are offering. Go for quality over quantity. This will make the difference between you and the remaining restaurants. “My idea of a restaurant was to have something simple yet elegant.” Says Chenddyna.

Finding the perfect location

“Location plays a very crucial role in almost all the businesses. We tried our luck with an interior location and that worked for us but it is not necessary that will work for everyone.” Said Chenddyna. You have to be very selective when it comes to the location. The kind of food you are offering and the location has direct relation. Look for a place near offices, colleges or in the heart of the city. Also keep in mind, t hat it is visible and have enough some parking space. This should be done before establishing your restaurant business.


Know your customers

For whom you are running this business? Customers, right? They are your bread and butter. So, always remember customers come first. The better service you will provide, more customers will likely to come.  Try to put your best foot forward, be nice to your customers and try always to provide some discounts or offers.

Avoid mistakes while billing

Make you bill clearer and readable. Try to print the receipts rather than writing it. Sometimes, you might add more items than they have actually ordered. This might leave a bad impression of  you are your restaurants. So be careful, while billing.

Be consistent

Running a business in itself is the biggest challenge but staying consistent can be little more challenging. You have to keep your customers happy no matter what it takes. Sometimes, you  might want to change the interior, décor and menu but some customers don’t like changes. This might be a wrong step.

Be active on social Media

Marketing is like the fuel of any business. You have to be active on twitter, facebook, Instagram to make a social presence. Post the pictures of food and customers and do tag them. Definitely people who are tagged in will share their pictures and you will get publicity as well. To run your business successfully you have to do all these.


Be attentive to your customers

There are many restaurants which are running successfully and one of the reasons for that is, the managers use to go and personally talk to the customers, take their feedback and suggestions. I know it is not possible to attend all the customers but you can talk to some of them. This will be an add on to your restaurant. “I make sure that I go and talk to every customer and make them comfortable. We have a very friendly staff and we help our customers in choosing there food as well, if needed.” Added Chenddyna Schae.

At the end of the day, your customer matters the most. If you have happy customers then yes you are doing it in the right way. Give attention to small details and keep working hard. Till then Happy serving!

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