Archive for March, 2016

Avoid These 5 Major Pitfalls that Can Destroy Your New Restaurant

The number of failed restaurants can be a little scary when you first look at them. Several years ago, Cornell University paired with Michigan State University to conduct a study of restaurants in three local markets over a 10 year period. Of the establishments studied 27% of restaurant startups failed in the first year. After 3 years 50% of those restaurants were no longer in business; after 5 years 60% had closed their doors. At the end of the 10 year study 70% of restaurants had failed for one reason or another. While these numbers are better than the commonly exaggerated 90% failure rate told by TV personalities, they are still daunting. Restaurants fail at an alarmingly high rate but it is by no means inevitable.  So here are a few tips so you can prevent your dream from becoming a nightmare.

1. Location

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Everyone knows the phrase “Location, Location, Location!” but it doesn’t just apply to home ownership. It is also true in the restaurant industry. Dwellings that offer visibility, sufficient parking, and an abundance of foot traffic are naturally going to attract more customers than places that are missing any or all of these factors. It is easy to become excited and take the first available space within your budget, but this is your dream come true so be sure to be diligent in your search for your dream space. It would be a shame to have a wonderful concept only to have to shut down due to poor location.

2. Inexperience

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Around 61% of American’s wish to own their own business. It is not unreasonable to assume a decent number of them would like to open their own restaurant. While many workers start their careers in the restaurant industry one way or another it doesn’t mean they understand all parts of owning their own establishment. A sure way to fail is not doing your research before opening a restaurant. You can have the best of intentions but without the knowledge to back it up your great idea can quickly take a turn for the worse. Combat this issue by knowing every job in your restaurant. Not only will you become well educated but your staff will respect you more if you are able to jump in and help during busy times. It is important to remember not to be too proud to ask for help. Vincent Petryk the owner of a Boston based ice-cream store J.P. Licks, which has 13 locations, started his career by spending a few years working his way up at a fast food restaurant.

3. Poor Customer Service

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In today’s modern era of Yelp and Urbanspoon restaurants don’t usually get a second chance if they don’t perform well the first time a customer visits. Disengaged staff, and unclean restaurant and poor food quality can all contribute to a poor customer service experience. Poor customer service leads to terrible reviews, which can snowball into fewer sales and before you know it you are closing your doors for the final time.

4. Lack of Accounting Knowledge

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With all the other aspects of running a business the back of house can often be forgotten. But it is important to know the proper accounting procedures to institute in your restaurant. Designing and maintaining a system of checks and balances will help to keep your business prosperous for many years to come.

5. Overspending

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Spending too much before even opening is another common problem that new business owners face. It is easy to get excited over the prospect of finally seeing your ideas come to fruition.  Being conscious of cash flow can help ensure your business makes it past the first year. Failing to watch cash flow can cause a restaurant to go under before it truly gets started. Payroll can also grow quickly, and until funds start coming in more regularly it is important to watch how many people you are hiring. Having a good understanding food costs is also very important for cash flow and keeping your business in the black.

 

By avoiding these major pitfalls you can help to ensure the longevity of your establishment. It is best to start your business with a game plan. Be aware of the ins and outs of restaurant ownership. Whether that is knowing the best locations in your area, understanding the ins and outs of the accounting world, or all the jobs it takes to keep the service running smoothly, knowledge is your best friend. With a few precautions and the right tools you can build a solid foundation for your dream business.

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How Restaurant Owners Can Get the Most Out of Attending a Trade Show

Its trade show season and our crew at East Coast Chair & Barstool is gearing up for traveling to shows around the country. We’ve already exhibited in Columbus, Ohio for the North America Pizza & Ice cream Show back in January and we still have three more shows to attend this year. We invite you to visit us at one of the following locations to meet up and check out our furniture: Las Vegas, Nevada for the Nightclub & Bar Convention & Trade Show from March 7th through 9th, Chicago, Illinois for the National Restaurant Association Show from May 21st through 24th, and Orlando, Florida for the Florida Restaurant & Lodging Show from September 27th through 29th. In addition to inviting you to visit our booth at one of these trade shows, we’d like to offer you some information about how to get the most out of your attendance.

Restaurant trade shows offer a place for owners and vendors in the industry to gather in one place. Vendors set up booth spaces to showcase their products, market their company, and network to restaurant owner attendees from across the country. Attendees are greeted with cooking demos, working product displays, new technologies, and food samples galore, in addition to special discounts that are only offered for trade show attendance. Owners have the opportunity to ask detailed questions about products, experience hands on opportunities to try new products and technologies, and gain knowledge through educational sessions that offer industry best practices, trends, and other relevant information. New ideas are often born at a trade show and owners return to work with a new motivation to improve business practices similar to when their doors first opened.

So how can you, as a restaurant owner, get the most out of attending a trade show? Take a look at this list of steps that we have compiled after years of attending and exhibiting at shows.

Before the show

  • Register for the trade show in advance to ensure your admittance as well as to take advantage of discount registration if it is available.
  • Book a hotel room close to the trade show location and do it well in advance. We recommend that you book a room at the hotel that is affiliated with the show to ensure the ultimate convenience for you. It may cost a little more but will allow you more time to take advantage of what the show has to offer.
  • Research the vendors that will be at the show by viewing and even printing out a map. Make a list of the vendors that you need to see in addition to others that spark your interest. This information can typically be found on the trade show website or through links in the e-mail you will receive once you register for the show.
  • Read materials regarding the educational sessions that will be offered at the trade show and plan to take advantage of them. Some shows include attendance at these sessions with your trade show admission, others do not.
  • Decide what products or services that you are looking for or would like to check out.
  • If you and your managers or employees are attending the show with you, plan to divide and conquer so that you can take full advantage of the time you have available.
  • Check to see if the trade show has an app that you can download on your phone that gives you first-hand information about the show.
  • Set appointments ahead of time with companies you know that you want to visit.
  • Pack extra clothes and shoes for the trip in case you decide to change up what you wear to the show and so you don’t have to worry about laundry. Branded shirts are often worn by attendees to showcase their restaurant while exploring the show.
  • Make sure to take a stack of business cards to hand out to everyone you meet.
  • Take an extra bag in case you pick up larger materials that don’t fit into your suitcase.

During the show

  • Dress comfortably with supportive shoes for all the walking up and down the isles you will be doing.
  • Arrive when the show begins to beat the larger crowds.
  • Don’t forget to wear that shirt you packed with your company logo to showcase your business!
  • If you make any purchases at the show, have a specified place to keep your receipts so they you don’t lose them.
  • Booth staff will often try to engage with you as you are walking by. It’s a great way to approach new customers! But, if you are not interested in the products or services they are offering, it’s okay to say “no thank you” and keep walking. Booth staff understand this will happen and they likely want to spend more time with interested attendees anyway.
  • If you visit a booth that you would like more information from, ask them to e-mail you more information.   Most of the time you will find that vendors have a device that can scan your name badge in order for your name to be added to the company’s e-mail list.
  • Take photos at the show that you can share on your company’s social media platforms. Let your customers know that you’re working to advance your business with new products and services.
  • Set up dinner meetings with fellow attendees or vendors after the show to network and compare notes.
  • Review the materials that you received from vendors each day so that you aren’t bombarded with doing that task upon your return home from the show.
  • Plan to leave the show about a half an hour early to avoid long lines for buses or cabs
  • Set aside some time to do something fun! Trade shows can be overwhelming and often taxing on your mind and body. While on a business trip, it’s important for you to unwind, relax, and have fun.

After the show

  • If you haven’t reviewed your materials nightly, pull out your bags of business cards, catalogs, and flyers. Categorize them by priority and make sure to check the trade show specials when you are doing this. You surely do not want to miss out on a trade show discount that is only offered for a limited time.
  • Follow up with vendors that you met with or are very interested in ordering from
  • Plan a meeting with your managers and staff to discuss your experience at the show and to communicate your future plans with these new resources and information

Trade shows have become a must for restaurant owners in today’s competitive restaurant industry. Keeping up to date on the trends and knowing what products and services are available are key to staying relevant among the hundreds of thousands of other restaurants trying to stand out. Following these steps before, during, and after a trade show will help you stay focused on the event to make sure you’re getting the most out of attending.