I have personally had the pleasure of opening a number of restaurants from a small cafe/bistro in Las Vegas to the first private Nobu in the world (at Sensei Porcupine Creek). I also have had many restaurant clients in the Pacific Northwest. In order to best help these clients, I have created the attached Restaurant Startup Guide. I hope it’s helpful!
The guide walks you through the timeline from first idea to opening day. Here is an overview of each phase.
1. Discovery: concept development
- Clearly articulate your vision in a one-page document.
- Identify neighborhoods you feel would appreciate the concept.
- Share your vision with people you know and trust to get their feedback.
- Determine which mealtimes you want to serve. Most successful restaurants only serve two.
- Identify restaurants you feel are similar, eat at them, and decide what you would do similarly and what you would do differently.
- Identify your service model: full service, fast casual or a hybrid.
- Create a mock weekly schedule to determine how many of each type of employee you will need.
- Revise your vision, then share it with me so I can give you immediate, relevant market information.
2. Feasibility and financial analysis
- Space: determine how much space you need for the kitchen, bar, stewarding, seating, host stand and waiting area.
- Rent: consult with me on location, amount of space and rental rates to calculate your rent expense.
- Revenue: identify and quantify every potential revenue channel. How many people can you serve, and how much will they pay on average?
- Expenses: use your mock weekly schedule and rent calculation, along with estimated utilities, food cost and other costs, to determine your total expenses.
- Capital: determine how much you will need for kitchen equipment, furniture, and interior and exterior decorating.
- Pro forma: use all of your revenue and expense detail to build a monthly pro forma financial model.
- Stress test: adjust your assumptions up and down to see how low revenue or how high expenses would have to go before the restaurant is no longer viable.
Once you feel comfortable with your numbers, it is time to start the search.
3. Space search
- We will discuss exactly what your space needs to make your restaurant a success.
- We begin the hunt for the perfect space, looking at a few spaces first to get a feel for pricing.
- Just like buying a home, we make an offer and negotiate the terms. Landlords will look at your credit-worthiness and, if you already operate a restaurant, your financials. If you don’t, they will want to see your past experience and performance operating businesses.
4. Opening day
Take possession of the space, install equipment and furniture, fixtures and equipment (FF&E), set up vendor contracts, and hire and train your team.
I’ll be with you the whole way
This checklist is meant to prepare you for what is ahead, but I will be here guiding you throughout the entire process. Don’t hesitate to ask me any questions about your timeline or financial feasibility. Get in touch, download the guide or call 503.454.6822.