Many people who are fond of cooking or who have good family recipes in their arsenal opt to open their own restaurants. But starting a restaurant business is not as easy as knowing how to cook. Just like any other business, it requires a lot of planning and preparation. After all, the food industry is a highly competitive market.

Several studies have found that 60% of new restaurants fail within the first year of business. Many factors can cause this, but a huge part owes to the lack of preparation and planning. If you’re thinking about opening your restaurant, here are some things you need to consider first.

Your qualifications

Becoming the owner of a restaurant is considered a profession. Like any other career, it requires some sort of qualifications or expertise. The first and foremost thing you have to ask yourself is whether you are qualified to start a food business. You can answer this by looking at your skill sets and background.

Do you have any knowledge on the basics of starting a business? Do you know enough about the culinary industry? A “yes” to both of these questions is necessary. If you don’t have the experience or knowledge yet, it’s important to invest in skill-building first. Study the steps in opening your own business or attend healthy cookery classes or culinary school to get exposure in the culinary field. Doing these will prepare you for the venture you’re about to undertake.

Your budget

Opening a restaurant is costly. You’re going to need a huge amount of money as capital to pay for your initial expenses. And honestly, no restaurant is profitable within the first few months of operations. So are you willing to take that risk? If you are, then ensure that you have the required budget first. This will reduce the risk of you shelling out more money from your own pockets as you run the business.

Your concept

There are so many restaurants nowadays, making the food industry highly competitive. But one thing that can set your restaurant apart is your concept. What will you offer to your target market, and how is it different from your competitors? Knowing this beforehand will guide you throughout the process of opening your restaurant.

Your menu

One amazing dish is not going to make a restaurant successful. The food industry is evolving, so you need to be very flexible and creative with your ideas. Study the current trends in the food industry and determine what dishes to serve and how they will fit your concept. Planning your menu will take a huge chunk of your preparation and planning stage.

Your commitment

Opening a restaurant is going to take a lot of hard work. Before deciding to venture out in this profession, ask yourself if you’re willing to commit your time, energy and resources to it. As a startup owner, you won’t have the luxury of taking days off or going on a holiday. You have to be hands-on, especially in the first year of operations. So you need to be a hundred per cent dedicated and committed to it to drive your business forward.

A lot of people are attracted to the idea of opening a restaurant, but it’s not an easy industry to venture out in. Before you rent a location and hire kitchen staff, make sure to do your due diligence to help you prepare well for this big feat.