When you consider expanding your restaurant business, it shows that you’re doing a good job. You won’t think about doing it if the restaurant is not in good shape. If you want to start the process the right way, consider the tips we listed below.
Find the right location
You must have your business in an area far from where you currently operate. You don’t want to divide the customers. You also want to serve more people interested in what you offer. So, make sure that you study the market and decide where you can open another restaurant. If you find the perfect place, you can pursue the business.
Conduct a feasibility study
If you did a feasibility study with your current restaurant before opening it, you must do the same with your plans for another one. It will help you determine which aspects of your business to improve or follow. You will also see if there’s enough appetite for what you have to offer. If the study reveals positive results, you must pursue the business. Otherwise, rethink your plans.
Check your finances
You need to have sufficient finances to fund your new restaurant. It’s like starting everything from scratch. The good thing is you have an existing profitable business that makes it easier to fund another one. This new endeavour shouldn’t put your business in a deep hole. If you have to find investors, prepare to pitch the idea and explain why this expansion plan would work.
Look for suppliers
If you intend to open a similar business that offers the same items on the menu, you may work with the same suppliers. However, if you intend to add something else, you should look for new suppliers. For instance, you must find quality apple juice concentrate suppliers if you want to offer this beverage in your new restaurant.
Determine if you’re physically capable of doing it
While you’re in a supervisory role, you will still go through a lot to open another business. Check if you’re physically capable of doing it. You can’t stress yourself out because you bit more than you could chew. Apart from the physical stress, it can also take a toll emotionally. You won’t know what to expect, and things might not be moving in the expected direction. Unless you’re ready, reconsider your plans.
Find the right employees
You should have strong hiring plans in place. Reach out to potential employees to get the job done, or start with an excellent management team. Again, you can’t deal with two restaurants at once. You should have quality managers with experience in the food industry.
Take your time to plan the details of a restaurant business. You should only expand if it’s in your best interest. If you can’t afford to do it yet, postpone your plans. You can only reconsider it if you’re ready. There’s no need to hurry if your existing restaurant is in good shape. You don’t want to jeopardise it because you want to rush the process.