Making the decision to set up a restaurant /food business involves careful consideration. As the standards and expectations of customers are rising all the time, the setting up of any food business could involve considerable financial outlay and time. Food business are required to be compliant with a range of legislation and non-compliance can result in serious consequences so food business owners need to be well prepared before they commence in business. The purpose of this guide is to take you through the steps to get started and provide you with relevant information that will help you plan your business start-up.
Step 1 – Market Research
Your first requirement is to conduct detailed market research. This will reassure you that you are doing the right thing and that there is a market for your new business. A successful restaurant always has a carefully planned mix of elements that combine to make it work and getting one of these wrong could have a detrimental effect on your business. Think of your favourite restaurant – why do you go there ? It is probable that you like the general ambiance, the food is consistently of good quality, the restaurant is clean and staff are friendly. It is estimated that 30% of restaurants in Ireland fail in their first year in business and furthermore, 50% wind up their business within five years of opening. Therefore, it is crucial that you conduct proper planning prior to investing any money in a new venture.
For research purposes, start by clearly identifying what type of restaurant / coffee shop you would like to open, you will need to choose a broad concept (e.g. pizzeria, ethnic cooking, modern coffee house, fish restaurant etc) in order to establish if there is a market for this type of food business. See what is working in other areas or towns of similar size. Remember you can always change your concept if, following initial