The restaurant industry generates $1.4 trillion in revenue each year. And, on average, 50,000 new restaurants open each year in the U.S., all trying to get a piece of that pie. Because of all the competition, a new restaurant has to stand out from the crowd to become profitable and sustainable. They must develop a unique brand identity, flavoring it with an original blend of herbs and spices, if you will.

Know Your Location Matters

Real estate agents stress location, location, location for homeowners, but the same concept is relevant for those looking to open a restaurant, too. While you want to choose a city close to your home for convenience's sake, the decision-making process is much more complex than that.

You want an area with room for another restaurant and the potential for success. For instance, maybe the location is an underserved suburb, or perhaps it's a spot where many restaurants are, but none of them offer much diversity.

Now, take that location consideration one step further. Once you choose the city and the specific region, select a building that's easily accessible and has room for parking to ensure smooth visits for your customers.

Get an Idea of the Types of Eateries Already in the Area

Before you decide to open up shop in an area, make sure you know what establishments are already there. Research what type of cuisine each offers. If there's a high concentration of one variety of food, and you can't bring something unique to the table, you may need to select a different kind of cuisine or take another angle.

Let's say you want to open an Italian restaurant, and there are already five locally, including one chain. Though your dishes may be the hit of every function, that doesn't translate to a solid restaurant idea unless you bring something that none of the others can offer.

Maybe the distinction is a delivery service or completely homemade dishes in a family-style setting. Or, if your city doesn't already have a high-end Italian restaurant, you can be it, complete with a modern atmosphere, fine wines, and refined takes on classics.

Once You Establish Your Offerings, Know the Audience

After you know for sure what type of restaurant you plan to open, take a moment to get to understand your prospective diners. Think about the traits the group has as a whole, such as:

  • Their income and spending habits
  • Their age range
  • Their typical dining occasions (e.g., business dinners, family outings, celebrations)
  • Their usual dining frequency
  • Their average lifestyle and eating preferences

Use all this information to help you carefully make decisions about every aspect of your business, including the ambiance of the building and menu offerings.

Use Research Tools to Your Advantage

The Internet has given restaurateurs of today an unfair advantage over ones of the past. Today, someone planning to open a restaurant has a range of information at their fingertips, especially with online research tools that do the time-consuming, heavy lifting and relay the information they need quickly and efficiently.

Use all the information you gather to your advantage to determine trends and make data-driven decisions. You can also create strategies that will more than likely drive sales as you're developing your menu, decorating your establishment, and devising your marketing strategies.

Offer a Balance of Specialization and Variety on the Menu

Of all the dishes you make, think about which ones would stand out as crowd favorites. Which ones do you feel showcase your unique talents and skills? These are the ones to showcase on the menu in a special section.

However, they won't be appealing to every customer who walks through the door. That's when variety comes into play. You need enough options so a large portion of your target audience will want to visit more than once, whether they want the same dish or are intrigued to try other selections on the menu.

Also, consider whether you'll establish a kid-friendly atmosphere. If you're welcoming children, think about all the menu items you have. Are there dishes a picky child would like? Moreover, a parent isn't going to enjoy purchasing an entire plate for their child to take only a few bites, making a children's menu necessary if your restaurant is family-friendly.

Besides a mix of signature dishes with a variety sprinkled in, consider whether a high percentage of your visitors may have diet restrictions, like gluten-free requirements. Maybe you're in an area with a high concentration of vegans or vegetarians. In this case, include offerings specifically for these patrons. Fortunately, you can often alter current dishes on your menu to minimize expenses and the difficulty of incorporating them.

Invest in What Matters

Starting a restaurant is costly, with the average start-up spending $95,000 or more on initial expenses. While you want to cut costs where possible, for some of your initial purchases, paying the extra money is sometimes worth it for high quality, though you can still shop around.

Your cookware, for one, will see a great deal of use. For instance, pans that scratch easily aren't going to last long, meaning you'll find yourself needing to replace them sooner than you would if you opted for a better-quality one.

Moreover, the higher-quality options distribute heat better and are less likely to stick. With presentation and consistency being key in the restaurant world and to your brand image, your decision for cookware should incorporate quality.

Understand That a Restaurant Is More Than Food

You may feel the food sets your restaurant apart from others in the industry, whether it's your unique flavor combinations or the type of cuisine served. Even your extensive training might be a selling point. That, however, doesn't mean these highlights of your establishment are the only aspects that matter.

Patron experience plays an integral role in your business's success. Even if you have the best cuisine this side of your city has ever tasted, customers won't return if they didn't enjoy their entire experience. For this reason, choose the staff you hire carefully. You want a team ready to serve and go above and beyond for patrons.

Technology is another factor to consider. You want customers to get in, enjoy their meal, and exit without hassle. While you want them to stick around to enjoy themselves, getting them through the door and seated and checked out and on their way should be quick and seamless for them, so choose your technology carefully.

Opening up an eatery can be a rewarding experience, particularly if you're a chef with a passion for cooking. However, no matter your skills behind the stove, you need an unmistakable identity to attract business and maintain it.

Author: Ashley Nielsen

Ashley Nielsen earned a B.S. degree in Business Administration Marketing at Point Loma Nazarene University. She is a freelance writer who loves to share knowledge about general business, marketing, lifestyle, wellness, and financial tips. During her free time, she enjoys being outside, staying active, reading a book, or diving deep into her favorite music.