A family restaurant exudes the ambiance of a home. The menus served might be time-honored family recipes that have become a hit with the family and extended family members: relatives, neighbors, classmates, office-mates and friends. It might have started as a way to pass the time and increase the income of members of the family. Most family restaurants that have managed to become successful grew popular mainly by word of mouth.
As with any business, opening, buying or selling a family restaurant is done with profit as the objective. Whatever the objective, a simple business plan is required to make a restaurant financially viable. The following are some tips you have to keep in mind on how to buy or sell a family restaurant.
Small is Still a Big Deal
A single proprietorship family restaurant is labor-intensive. The hours put into the business might adversely affect the goods and services being offered so there is a need to professionalize the business approach no matter how small it may be.
The Location is your Lifeline
Market analysis greatly influences the location of the business. Family restaurant does not mean the location should be at home but anywhere where there is a demand since business is a matter of supply and demand. Thorough market analysis should take into consideration the clientele’s age brackets, employment, lifestyles, habits and financial capabilities. The food and beverages to be served are usually influenced by this.
Know Your Hook
When breaking into the food service business, there needs to be a careful emphasis on what aspect of the product to promote. It might be the price, the quality of food, great service or the charm of the individuals involved.
Get in Sync
The daily business activities are the backbone of the food service industry. These are the activities of employees, the business hours offered and the source of foods for cooking. It is always advisable to offer dishes which are in season and are readily available in the locality.
Health and environmental considerations should be weighed heavily for the good of the owner and the general public. You wouldn’t encourage hypertensive clients to partake of rich foods. This kind of business practice might be unpopular but will prove to be an intangible asset in these times when obesity is a world health problem. A successful family restaurant is able to cope with the changes in the demands of the clients as well as have the ability to diversify to other products and recipes as well as serve healthy food without sacrificing quality.
Successful businesses are maintained and nurtured. As an owner, you need to choose the best location, professionalize your workflow, know what your strengths are, and know your customers. If you are successful, you can establish another branch or let others franchise your restaurant. Those who failed can always sell the business at a profit if possible; or carefully examine what aspect of the business failed and find new sources of capital.