Starting a new restaurant business is a big job, but it can be rewarding and profitable if you have the proper knowledge and skills. Learning how to run a restaurant may seem overwhelming initially, but it's much more manageable if you break it down and look at the individual tasks required.
Many of us have heard a statistic that up to 90% of new restaurants fail in the first year — however, research suggests that this figure is much lower, at 17%. Of course, that’s still a significant number of restaurant businesses, and you’ll want to ensure that your restaurant isn’t contributing to it.
To help you learn how to run a restaurant, we’ve compiled a guide to running your food business smoothly.
If you haven’t opened your restaurant yet and are in the research and planning phase, you’ll want to start with a restaurant business plan. This will lay out the steps to begin your operations and detail what type of business you want to run.
Think about what restaurant concept you wish to follow. Will you run a full-service restaurant or a fast-food eatery? Do you want to open a laid-back steakhouse, or are you more interested in fine dining?
Your business plan should also include a complete financial plan for your restaurant, including both ongoing and startup costs, such as real estate, food costs, and operating costs. Don’t forget to think about your business licenses and liquor license, too.
Even if your business is already underway, you can use your business plan to help keep you on track and stay connected to your purpose and your “why.” It can keep you accountable to how you want to run your restaurant business. Maybe you can even revisit it once a year and make updates as your business grows and evolves.
Your business plan is a good place to start, but learning how to run a restaurant effectively takes practice. There may be aspects you didn’t think about when writing your business proposal. Follow these six tips to prime your business for success.
Before you opened, you likely focused a lot on your restaurant equipment. You knew you’d need ovens, stoves, dishwashers, and refrigerators. But are there other equipment and tools that can help your staff and further optimize your processes?
For example, is there kitchen equipment that has been unreliable or difficult to use? You might want to consider an upgrade that would keep things running more smoothly for your kitchen staff.
You should also think about how restaurant automation might be able to help your business. Restaurant management software can help you run your business more efficiently in various ways, from staffing to table management. Useful tools for restaurant automation include:
A point-of-sale system: The right POS system lets you manage payments and keep track of your sales without the need for large spreadsheets or data collection tasks. The software will automatically collect and present data in an easy-to-read way.
Self-service kiosks: Casual food businesses like quick-service restaurants and food trucks can benefit from self-service capabilities. With self-service kiosk apps like KioskBuddy, customers can place and pay for their own orders with a few simple taps, leaving your staff free to focus on preparing delicious food.
Inventory management software: Keeping track of your inventory can be vital for minimizing food waste and ensuring uninterrupted food service. Several POS systems come with built-in inventory management tools, so you may not need to pay for additional software.
Kitchen display screens (KDS): A KDS provides your kitchen with real-time updates about incoming orders so that your chefs know exactly what they need to cook. Installing a KDS can simplify your ordering system and reduce the number of steps necessary to go from order to service.
You probably devised a marketing plan to spread the word about your grand opening as part of your business plan, but continuing to market your restaurant is key if you want a successful restaurant business.
Consider whether your target market has changed from what it was before you opened. Have you had more success with a different demographic than you expected? If so, you should adjust your marketing strategies accordingly.
Social media marketing can help you drum up new business effectively and for free — but this may not be the best option if your typical customers aren’t using Instagram and TikTok. Paid marketing efforts like digital ads can also help you spread the word about your restaurant.
You could consider running a pop-up event in your local area to give potential customers a look at your menu for the first time if they haven’t visited before. Putting on events can be a fantastic way of getting people chatting about and engaging with your restaurant brand.
A customer loyalty program can be an effective way to keep customers coming back to your restaurant time and again. They’ll also provide business owners with more data on what customers are ordering and when.
Loyalty programs are easy to set up with the right tools. With a compatible POS system, you can set up a points-based system that uses customer email addresses or phone numbers, so you won’t need to pay extra for physical loyalty cards.
Alternatively, you could operate on a stamp-card system. Every qualifying purchase earns your customers a stamp, and they can exchange a full stamp card for a reward like a free drink or dessert.
Hiring the right staff is a key part of opening a new restaurant, but ensuring your staffers are happy at work is essential when you’re up and running. This will encourage them to work for you for longer, which can help you save money, as you won’t have to retrain new wait staff or kitchen hands.
Try to create a positive work environment where people are happy and looked after. One of the best ways to do this is to ensure your staff is paid well and has good benefits, such as paid time off and health insurance.
Ensuring clear communications between your restaurant management team and employees is also crucial. Set up office hours so your team can bring up any issues they have — and work hard to fix them.
Provide ongoing training for staffers so they can move up the ranks if they choose to. Dishwashers and kitchen porters often want to learn how to cook from their chefs, so make sure you provide them with time to learn the skills they’ll need.
Many restaurant operators find that there can be a divide between front-of-house (FOH) and back-of-house (BOH) staff, as FOH-BOH communication is often tricky. Ensure your kitchen team and dining room team get along by running social events and encouraging people to become friends. Employee appreciation outings can help foster a sense of camaraderie between your teams, which is critical when working in the busy restaurant industry.
Choosing the right menu items for your restaurant should be an ongoing job for restaurateurs. Don’t just assume that your favorite dishes will be popular with customers; look at data points to see what’s selling well and what isn’t.
A good POS system will make it easy for you to see what your customers order the most and what isn’t going so well. Replace any items that aren’t selling and keep reassessing to ensure your customers are happy.
You should also consider tweaking your restaurant menu to avoid food waste. If food is returning to the kitchen uneaten, consider reducing your portion sizes to prevent food from being thrown away. It’s good for the planet and can help you save money, too.
Your passion for food likely brought you to the restaurant industry, but you'll also need a solid foundation in business practices. Taking a business class to learn the basics of running a business can be beneficial and help you develop the skills you need to run a successful restaurant.
If you don’t have time to take a class, see if your local chamber of commerce has any resources available to help you improve your accounting or business management skills.
From keeping staff happy to marketing the restaurant, restaurant owners have much to consider to keep their small business operating smoothly. Learning how to run a restaurant is no small task — but the right tools can help.
Choose KioskBuddy to set up easy-to-use kiosks. Simply download the app and sync it with your POS system to turn your tablet into a self-ordering machine. It’s quick and easy to get started, and KioskBuddy does all the hard work for you.
Sign up for KioskBuddy and enjoy a 30-day free trial.