How I build a profitable restaurant?

One of my friend started a restaurant, as you know restaurants are places which provided food, snacks etc. to customers. After more than six months his restaurant was not able to generate profit, so he decided to approach me for strategic help. His restaurant was serving the economic class regular food and target customers were young couple, executives and middle class families.

I started from beginning to analyze his business and find out that his business was not doing good due to confused segmentation. Success of any business largely depends upon the targeting the right market with right product mix.

I prepared a list of most important things in any restaurant and I come up with most important things in any restaurant success as below

1. Location
2. Brand
3. Hygiene
4. Food quality
5. Service quality
6. Competitive pricing

To become successful restaurant owner, I suggested him to develop following qualities 1. Honesty 2. Truthfulness 3.Only need no greed 4. Helping others 5. Environment friendliness 6. Interest in food

To become profitable in restaurant I suggested him to follow six steps strategy

• Get a shop in market place on rent
• Purchase basic furniture and build ventilated kitchen
• Develop menu with price and inaugurate restaurant
• Design leaflets and distribute in local areas
• Online register on ZOMATO,SWIGGY,google local pages etc.
• Start contest on social media, blogs and customer reviews

Normally in three months period, good restaurants become cash positive but his restaurant didn’t stared making desired profit. I suggested him to change the strategy as below

a. Add high value items on menu

b. Brand as specialized in one or two dishes like Gujarati,Italian etc.

c. Start tiffin services, home delivery for regular customers

By above strategy, normally in two moths restaurant’s sales will increase but his sales was not coming upto desired level so I suggested 3rd stage of strategy

A. Improve the interiors

B. Add fast food items in menu

C. Take help of food bloggers, influencers, celebrity cooks etc.

Luckily his restaurant become positive cash flow business in sixth month of our testing.

Now I realized that in three stages, any restaurant will definitely become one of highly successful business.

I am sharing this story with intent to helping restaurant owners.

P.s. Keep in mind customers are king and they drive the business and every customer want value for money.