The restaurant business is a booming industry in the private sector and makes over $500 billion a year in the U.S. Entering this industry includes working long hours and dedication. Audited statements show the true picture of your restaurant. That’s reassuring to potential franchisees. You might be tempted to exaggerate the sales. Restaurants are more cash-oriented than other types of businesses. The accountants will verify your sales through credit card sales and cash deposits to the bank. The expenses will be verified by asking vendors to verify their invoices. Food costs run about 30 percent of the menu price and beverages about 20 percent. It’s beneficial if your costs are close to those expected ratios.
The concept of evolution doesn’t only apply to Darwinian theory. The restaurant industry has continued to transform and adapt since the first known dining establishment opened its doors in 18th century France. We’re not going to delve that deep into the history of dining out, but we’ll explore 5 ways the U.S. restaurant industry has changed in the last ten years.
Just because you love to cook, that is not the only skills you need in order to get it started. If you do not have any background in cooking, then you will not likely be successful in your business. Along with being able to cook, you will need to have experience in party planning. Most guests that need help with their cooking will also need help planning the menu, dinner service, etc.
This guidance applies to all restaurants, private event spaces and wedding venues with food service, licensed clubs, and bars, regardless of whether the business operates within a larger facility such as a hotel, casino, convention center, conference center or similar large venue.
Operators will need to follow Panera Bread and Subway in developing solutions that create new revenue streams. Those chains with the most accessible real estate and established drive-thru, takeout and delivery operations will have the greatest opportunity. Those restaurants linked to malls, business and entertainment districts face a far more uncertain future.