Path 7: Chef Boyardee..... You hope.

Resources on the Topic:

Guerilla Marketing: 100 Affordable Marketing Methods for Maximizing Profits From Your Small Business By Jay Conrad Levinson
The Restaurant Dream By Lee Simon
The Restaurant Business Start Up Guide By Paul Daniels
The Entrepreneur Magazine Online Guide to Starting a Restaurant

If you are one of those people that has that "recipe to die for", maybe your best path to prosperity is sharing that recipe with others. Starting a restaurant can be a time consuming, stressful, and expensive endeavor, but for those who love spending time in the kitchen, it can be a wonderful way to make a living.

Before you even consider quitting your job and heading down this path, you need to do some SERIOUS planning. First, consider the type of restaurant that fits you. You really want to focus on that ONE specific recipe that can put you on the map and lead to repeat customers. For McDonald's, it's the Big Mac, for Chipotle, it's the burrito, for KFC, it's original recipe chicken, and for Cheesecake Factory, well, it's the cheesecake!. Too many restaurants fail because they try to offer a huge variety of foods. Not only does this overwhelm the customer, but it also means that they may order one of your not-so-stellar recipes, which will pretty much guarantee no repeat customer. Pick your home run, whether it's an appetizer(aka Buffalo Wild Wings), entree(aka Red Robin Burgers), or desert(aka Cheesecake Factory), and build your theme around it. To judge the quality of your recipes, host a party and invite all of your family and friends. Serve your specialties, and give them a secret survey to judge your food. Beg them for their honesty, and listen to their feedback. If they approve, then move on to the next step.

After you have a rough concept in mind, the next step is finding an appropriate location. Remember, this is absolutely KEY for a new, no-name restaurant. People will seek out an Applebee's, but they won't seek out your restaurant. Be willing to pay more for access to a busy street or shopping center. Customers won't seek you, so you need to THROW yourself at them. Also consider other competition in the area. If you are opening a sandwich shop and you'll be right next to a Subway, Blimpie, and Steak Escape, you are probably going to fail. Try to avoid new builds, look for a vacant store. If this is your first business, you need to be focusing on your recipes, not the building you will serve them in.

Finally, a thorough cost analysis is needed. Consider the rent, food, staff, cleaning supplies, utilities, maintenance, advertising, and store remodeling. Make sure to put a hefty cushion in your calculations. You should have enough money to survive at least six months with ZERO customers, because it is a possibility!

If the numbers add up, you have faith in your recipes, and have found a good location, the next steps will quickly determine the fate of your business. First, develop a name, logo, and theme for your shop. If you know any artists, ask them to develop a top notch logo for you. The name should be catchy, and still communicate your food type. While you are in the process of getting your restaurant up and running, start the advertising. Create flyers, business cards, and a website for your new place. Be relentless, print ou a TON of flyers and distribute them in mailboxes, hand them out in crowded places, and give them to friends and family to distribute. Guerrilla marketing, as discussed in the book I recommend below is key to getting word out about your restaurant.

Once the restaurant is up and running, the key to success is HARD WORK and great treatment of your customers. Remember that if any customer has a bad experience, they are likely to influence the future decisions of around 6 customers, so do WHATEVER it takes to make them happy. Most of all, don't get frustrated. Starting a restaurant is hard work, but if your passion is food and you are willing to work hard, you can bring your dream to life!

Good Luck and Happy Cooking!

Keys to Success:

Stay involved. No matter how good your employees are, you must personally stay involved to ensure that everything meets your standards.
Advertise EVERYWHERE. This is key. Be relentless with friends, neighbors, fellow parents, family, etc.
Do Whatever it Takes To Please Your Customers. Remember that no advertising can ever take the place of positive word of mouth.
Have an Emergency Fund. Restaurants are extremely slow to start, and most fail within the first 6 months because of insufficient funds. Hope for a great start, but plan for worse.