So You Want to Open Your Own Restaurant? Do Your Research First!
Have you always dreamed of opening up your own restaurant but don't really
know where to start? You are definitely not alone. Expect to never have a dull moment if this is your dream – there are new and exciting challenges you'll face. The future does look bright for this industry, however a tough reality is that many (not all though!) restaurants fail within the first year – mostly due to lack of business planning. One of the most important steps of your planning is creating a business plan. There are many online resources which can help you with business plans. A restaurant entrepreneur needs to do a great deal of business research whether its a cafe, deli or Indian buffet.
The Canadian restaurant and food service industry makes a tremendous contribution to our economy. According to research from the Canadian Restaurant and Foodservices Association (CFRA) the Canadian restaurant industry employs more than one million people and generates $60 billion in annual sales – accounting for 4% of the Canadian economy and apparen'tly dining out is one of the top three tourist activities in Canada. To my surprise 64% of restaurants in Canada are independent, and 36% are chains (CFRA) – which is reassuring if you'd like to open up your own small restaurant.
I was reading an article about how to start a restaurant from entrepreneur.com which gave an interesting marketing perspective. Many entrepreneurs may strive to please 100% customers which is an unrealistic expectation – it is more feasible to focus on smaller target markets who all have different needs. Age is an easy example – you could focus on groups such as: Baby boomers, Generation X/Y, Traditionalists, etc.
For some inspiration join us next Tuesday, February 21, 2012, at North York Central Library, the Business department is hosting a program called Harlem Underground: Secrets of A Successful Urban Eatery. Join speaker Carl Cassell, owner of the Harlem Underground, which has 2 locations in Toronto as he discusses his experiences starting and running a restaurant chain.
Also, come visit the library for some books on starting up your own restaurant :
Thanks for reading, please feel free to share any comments!
2 thoughts on “So You Want to Open Your Own Restaurant? Do Your Research First!”
Every aspiring restaurant owner should have a feasibility study. This would allow for a clearer view on how the business should be run. It is especially important with restaurants, as customers can be choosy at times.
Thanks for sharing @Clint, a feasibility study is important to have, a good part of your market research, do you have your own restaurant?