Financiers consider the restaurant industry as novel investment interest. Assuming that you have weighed your restaurant startup options, we suggest you approach investors with your idea of a new business. The ideal investor should be passionate about the restaurant industry, meaning that they know what questions to ask regarding your business. Always keep in mind that investors have high expectations and if you are not prepared for the possible queries, getting the funding for your venture may be quite a task. Defining Investor Benefits Before you start crafting your pitch deck, you have to define how investors can benefit from investing in your venture. With strong benefits, you can achieve the ultimate objective: persuade investors that your business is worth their investment. Read on to know how you can attract a potential investor. Preparing a pitch for investors involves a lot of time and thinking. Your actual pitch deck may be written from certain parts of your business plan, you need to check your financials very carefully for preparing the answers you will face. Take a note of the things you wish to offer investors. The percentage of ownership you want to give investors. The worth of your business in the current period. The perks and discounts you are ready to offer the investors. Your long-term goals What will you do to heighten your business? This is how you can frame these advantages for investors. Rate of return When the gain or loss on an investment made over a particular time-period is shown as a percentage of the cost of investment, it is called the rate of return. Equity investors can be specifically interested in their “return on equity”. This is the income they will earn as a percentage of their equity provided to your business. An investor finally wants to know the amount of money they will make from investing in your business. At first, think about the worth of your ownership. You can calculate this number by dividing the amount of investment by the value of your restaurant. For instance, a $25,000 investment purchases 50% of a restaurant worth $50,000. You need to have an approximate idea about what these figures are for your restaurant. This assists you to know how much of your business you can offer in exchange for your capital. Scalability The next step is to create a list of all the ways in which you want to scale your business after launching it. If your restaurant is a quick service, include food trucks that focus on serving specialty items. Any investor would want to know all your growth plans for the long-term as it exhibits bigger potential returns on their investment. Persuade You may be looking for active investors whose industry expertise you can put to use. Sell them the fact that they too can work with you. Here again, you have to create a list of the positive things your business can enjoy if the investor becomes a part of your company. This clarifies to them that you are also open to a partnership. When a deal is signed and all agreements are made, investors want your business to succeed as that means more returns for them. Near-term benefits are preferred compared to long terms from their side and should be on the safer side as well. Hence, they are eager to know if they can jump in and lend a helping hand to fetch more profits. Perks and Discounts Most owners of restaurants offer promotional perks and discounts on meals to their investors as incentives. Make a list of all the facilities you would like to provide investors for mixing some sweetness to the deal. Keep this idea hidden when your pitch meeting is going on and reveal it when you see the investors agreeing to your earlier ideas. Seek a Meeting with Restaurant Investors Making a good first impression is important to take the thing forward. 1. BCC the person who introduced the correspondence In case someone started the interaction, blind copy him when you send an email to the investor. You might find it unnecessary, but it is a courtesy to the individual who told you about the investor. Hurting someone’s ego is not the ideal thing in any venture. 2. Keep it brief Since you are not writing an informal letter, write a brief email to the investor, introducing yourself, the type of business and why you wish to meet with them. Remember, share only those points that arouse their interest as they hardly have time to read a long email. 3. Suggest a meeting time If you simply ask the investor to meet you, he will not take you seriously. Let him know a suitable time when you would want to meet. You can come up with two or three time slabs and tell the investor that you are free to meet him at a time appropriate to them. 4. Include a PDF copy of your pitch deck Attach your pitch deck’s copy to the mail as a pdf file and avoid using a Dropbox download as this is going to develop an unwanted hurdle that the investor would better avoid in his busy schedule. Tips for a restaurant investors pitch Now that you have scored an investor meeting, ponder over how to present the best pitch in life. Consider it to be a matter of life and death and do the following. 1. Practice Practice by yourself and change any place you think can make your appeal stronger. Then, share the pitch with friends having business experience. Seek their feedback on how you can make the pitch more convincing and influencing. 2. Support your claim with facts You cannot get anybody’s attention by throwing information or making claims that are not supported by a reliable source. So just make sure you have matched each claim with the available facts and practice expressing a link between those claims and facts. Try to give them an image which clicks in the person's head. 3. Spot a problem, give your solution and unique selling proposition Give the investor clear details about what you want. This involves the opportunities present in the market, how you are going to leverage the market and why your business differs from your competitors. Can you put this in words within 15 seconds? 4. Show your market knowledge How much do you know about the market where you are selling? Whether the investor will fall for your pitch or not depends on how thoroughly you have gone through the market. Invest enough time to steer clear of gaps and guarantee a ready answer as an investor will identify breaches right away. 5. How about building an emotional connection? Your investors are putting in the capital not just in your venture, but also in you. There is truth in the analytic and practical eyes of the investors. At the same time, show them how passionate you are about the venture. This makes an emotional connection with them and they will remember you when zeroing in on a business to invest. Can you get a connection to relate their past? 6. Let them know about the plus points of being an investor Convince them how investing in our restaurant can be a smart choice for them. While making the presentation, keep your words as compact as possible. But, arm yourself with enough information about your finances. This is going to ultimately decide if the investors finally decide on helping you out or not.Good luck with approaching investors for your new restaurant business. Let us know if you need help with any restaurant problem.
Colors in a restaurant shape the psychology of customers, bringing out their subconscious reactions in a number of ways. Such reactions can vary between the amount they spend to the food choices they make. In the hospitality industry, color affects emotion, visual perception and human behavior. This indicates that you simply cannot select colors for your decorations, menu cards, logos and walls arbitrarily. You need to think carefully when choosing the color scheme of your restaurant. You might resort to color combinations or variations of primary colors for your eatery. Take a look at how some common colors influence your customers. Check our colors in detail here: Red color in the restaurant Want an increased table turnover rate for your restaurant? Opt for red. The color enhances the heart rates and hunger of guests, making them eat quickly. The most common color in the restaurant industry, red, is known to excite and stimulate, and is closely associated with high energy. Fast food restaurants would do great by using the color in their walls, logo and menu cards. Human instinct associates red with a juicy strawberry, tender meat or a sweet candy. Is your mouth watering right now? Example: Mac D and KFC Blue color in the restaurant Blue is usually utilized for conservative and corporate brands and is actually the most famous color in America. The hue symbolizes trust and security. But, it is not usually the most preferred choice for a diner. It is known to suppress and decrease hunger. Blue is a turn off when it comes to human psychology and guests avoid restaurants with blue walls, table cloths and surroundings. For instance, bright blue walls can reflect the color in the food and guests can lose their appetite. However, exceptions prove the rule. Therefore, some seafood restaurants resort to using the blue color to remind people of the water’s color and freshness. Example: Seafood restaurant Yellow color in the restaurant Yellow, an uplifting color, portrays happiness, cheerfulness, positivity, youthfulness and enthusiasm. But, you have to be careful when using the color as it may sometimes display naive or unsophistication. Fast food restaurants often use this color for fast customer turnaround as some people think that it causes unease. If you do not believe me, just color the walls yellow or make it a dominant color in the logo, and then watch the difference. However, if you love yellow and simply cannot do without it, use it as a secondary color. It will not drive away many customers. Example: Mac D Orange color in the restaurant What is the first thing that strikes your mind when you hear the term ‘orange’? A glass of refreshing bright orange juice, right? Orange promotes impulses and some consider it a comfort color. The hue typically invigorates all senses and a restaurant exhibiting this color can experience humongous sales and an energized conversation among its guests. Adding to this is the fact that it stimulates hunger. Guests will talk more, stay longer and spend more in an orange ambience. Example: Fanta Pink color in the restaurant Though pink reflects serenity, sweetness and has a calming effect, it is not a favorite of restaurant owners. Hence, unless you are selling confectionery, avoid this color. But adding it in a dormant way is a good technique to have that calming effect. Example: Ice cream places Green color in the restaurant Now, this color portrays an array of meanings. Whether it is about representing harmony, wealth, balance, relaxation, nature or creativity, green is the benchmark. The restaurant industry loves green because of its association with health, freshness and nature. If you are a vegetarian restaurant owner, this color can do a lot to attract customers. If you have never checked a menu card before, do that and you will find vegetarian food being indicated by green circles. Example: Carlsberg Black color in the restaurant Looks cold at times, but this sophisticated color has a classic appeal. With its ability to sketch a picture of authority, power, sophistication and strength, black defines regality at a different level. Menu engineers vouch by this color as customers deem the black ink on white paper as most legible. Several fine dining restaurants follow this simple, yet credible combination. Also, not always do colorful logos have the desired effect. Color your logo in black and white to watch how simplicity overshadows gaudy and how chic your restaurant appears to be. Here comes the twist. No matter how impressive black is, not many people ogle at food of the same color with desire. Nonetheless, squid ink pasta, black liquorice, burnt ends, kalamata olives and black rum have won many a heart. Besides, black chalk boards have brought the rustic back to the restaurant industry. White color in the restaurant Add white to your restaurant to neutralize food colors. With its aura of clarity, cleanliness, innocence, hope and purity, it is perfect as an accent or secondary color. Who can forget the white space on a menu card and the royal combination with black to increase legibility? White space works wonders during plating, attracting the customers’ gaze to the delicious fare in front. If you do not trust my words, simply type the words ‘food presentation’ and you will know what I am talking about. Here, you will have to keep in mind the concept of marginal utility. If you use something beyond its limit, it loses its charm. In the same manner, overuse white and the result is utter dullness and overtly plain. Brown color in the restaurant Feels chocolatey? There you go! Brown often finds reference in chocolates, pastries and in coffee shops. If you are wondering whether it increases the urge to eat or not, ask your kids. Distributing an energy of sincerity, comfort, wholesomeness, dependable and being grounded, the color is liked by both young and old. Purple color in the restaurant How many times did you walk into a restaurant to see walls, menu cards and the logo bathed in purple? Not very often I am sure. Though it pops up in food items like wine, berries, legumes and fruits, it is not a fan favorite. Example: Taco Bell The variation of a color is important in this regard. Whether it is bright, intense, saturated or dark, needs to be kept in mind. These varieties of a pure state color can hugely impact its perceived intention. For instance, muted yellow or beige is a common sight at breakfast restaurants as it mirrors the spirit of morning - the glow of the sun or a relaxed atmosphere. On the contrary, bold primary colors are frequently seen at fast food restaurants to encourage a fast turnover. It goes without saying that you will not use a single color in your restaurant and make use of at least two colors in walls, menu cards, logos, furniture and curtains. When you are using several color combinations, consider that individually, a color might resonate its actual meaning, but when placed with another color, its initial profile may be put off or may get shinier. Always consider your complimentary/secondary or primary color as they should compliment or contrast each other. Whether you are a restauranteur or an interior designer, a particular palette is going to extract a positive reaction from your audience. Since your objective is to gain return customers, brand recognition and brand loyalty, what can be a better way to do so if not through colors? Colors determine the dining experience and its influence can range from extreme to subtle. It is true that these are just guidelines. Hence, conduct your research before choosing which color you want for your dream restaurant. Because, as we know, color is very subjective.
Food and sex are the two things which will never go out of fashion. Everyone is scared at the moment to start something new, but always remember that big things happen when the chips are down. ‘’To get the biscuit, you have to risk it’’. In this article, I will explain that the next big thing in the restaurant industry will be the Ghost Kitchen with a Twist. Why should I open Ghost Kitchen now? In the 2008 recession, Mac D was one of the rare restaurant businesses which was in profit. They even made more profit than in 2006 and 2007 combined. But why? Affordability, Consistency and Fast delivery were the answers. The restaurant business didn’t change its concept, and most of them went to doom. You need to make adjustments before it’s too late. The food truck business also became famous in that period. Ghost Kitchen would be the perfect business to open at this time. It’s a professional food preparation and cooking area structure for the preparation of food delivery meals only. It relies on home delivery orders placed by phone or website or third-party companies running in your country. They don’t have any area for people to sit and eat. In simple words, the Ghost Kitchen structure is as follows: 1. Order comes from the customer. 2. Staff gets the order on the system. 3. The chef cooks the meal. 4. Chef packs the food. 5. Food package is delivered to the guest. Market Situation During Coronavirus The market situation during this coronavirus crisis period is hammered. It has also shown some rays of light for new segments in this industry. People will try to improve their lifestyle after this crisis. We are going into Charles Darwin theory and ‘’Survival of the fittest’’. Health Cautious People will take care of health more seriously compared to the past. A diet of fresh food, Vitamin C and necessary minerals, with increased intake. Hand sanitizer, gloves and masks will be used by people as an essential part of life. Scared to go out People won’t come out easily to eat for some period. This concept will be fruitful in this period. They will try not to touch anything. Touching the menu card would be a big ‘’NO’’. If some restaurants are open soon, maybe you will see a few people in it and a little space between customers. Budget Most of the countries are going towards depression and recession. The spending power of the people might take a tool here. You need to make sure that the food is affordable by most of the people. That’s similar to the example I gave you of Mac D from the 2008 recession period. Food delivery A big fight is expected between the food delivering companies of every country. A lot of offers are given by delivering companies to restaurants. Use this offer to make a customer base for your company. The Restaurant Academy Tips: Surviving the coronavirus storm will be crucial for your Ghost Kitchen. Here are the points which you can consider to sustain your initiative in the world of coronavirus: Hygienic Trust is the hardest thing to cultivate in any business or relationship. How can you prove to the people it’s hygienic and you have taken all the precautions? Can you install the camera in the food preparation area and make it live on some channel? People should be able to see your staff when they are working. They must be seen to be using gloves and taking all the necessary safety steps at the moment. For an extra mile, put the body temperature of the chef and delivery boy before they started the shift on the food boxes to show that they are in perfect health. Show the chef washing their hands before putting on the gloves and changing them also after a specific period of time. 2. Small Menu Card Don’t have more than five items in this crisis. Your food cost would be in check all the time. It even makes ordering and customization (the guest wants to swap any item to a particular dish) easier. You can easily provide consistency of service and quality to every guest. This should help to achieve higher profit. You can do special weekend items. Maybe d ao poll option one week prior to interact with your followers. It would help you to create a buzz for your company. 3. Push MembershipThe ultimate goal of every business should be to convert a one-time customer to permanent. You should always start with the 3rd party app business but put your company pamphlet in the food bag and offer them an offer they can’t refuse. Example: If you call them directly, you get a 10% discount to begin. When you have reached 10K members, you can even think of creating your own app. Always have certain targets before you want to go to the next level. This is one of the major downfalls for a lot of businesses. A good business starts small and expands instead of the other way round, unless you have a big company. 4. Food OrderFor the first few months, you can even take food orders on social media; it can be something out of the box. Ask people to put their phone number as well. Most of the food orders will be done through 3 party apps also. Register your company with every food delivery company portal and try to convert them into your regular system, just as I explained above. You can even do something extra by providing biodegradable cutleries. What do you need to open Ghost Kitchen? Low-cost business investment is required compared to owning a restaurant. Most of the time, one-time investment is enough. Also, if you want to try something new, it has a low cost of experimentation. For example, an owner who owns a delivery kitchen and delivers South Indian food, decides that he should start delivering North Indian food as well. You wouldn’t need to change everything upside down like in the restaurant business. * Take the food orderYou need a POS system for the kitchen. It’s a way to complete orders for your place. You can even take orders through phone, social media etc., as explained above. The system also provides an analytic report to you. You can see what people are ordering, which menu item is not popular, what time and day people order the most, etc.Check system here: * Order processDifferent orders will be coming in. You need to check if an order has any particular demand or is customized. You can have one person here when your company becomes busy just to make sure the orders are taken accurately, and people know at what time they can expect them back. * Staffing You need two good chefs here. Please don’t try to cut corners by hiring average staff. Taste is the king here. You don’t require any waiter, reception, bartender, etc. You save here a lot of money on staff compared to the restaurant. Hire your own delivery boys only when you are well established in the market. My advice is for any owner to be with them for the first three months. You will also be learning a lot about the new business. * Managing supply and inventoryIt depends on the menu how much supply you need for your kitchen. Your chef should be good at managing food cost. Try to make a standard food recipe for all the dishes as soon as possible. Menu engineering will help figure out what items to remove from your menu. You can learn all of them free of cost on my website. Inventory is managed by the POS system and the chef should be able to take care of it. * PromotionCloud kitchen requires different forms of promotion compared to the restaurant business. You can learn from my marketing book. Check the link here:https://therestaurant.academy/the-restaurant-book
Menu Card is the heart of a restaurant. Designing a new menu card is anything but child's play as it is the first factor attracting your guests to your food offerings. Prior to zeroing in on a precise design, take into account the restaurant's concept, whether you are offering breakfast, lunch or dinner, days and time you are open, the average income of the target customers, value for money, whether you will offer A la carte (Guest order from menu card) or Table d' hote (Fixed menu card items). Create a rough draft of the menu card and show it to your employees and regular guests before finalising it. When planning a menu card, decide upon a couple of colors so that you have the option to finalize any one of them. In this context, I recommend sticking to the restaurant's theme colors to impart that sense of uniformity. We have covered the following point: 1. Menu Card should be readable The first and foremost thing to make a menu card worth picking up and going through is its readability. From my experience, the correct fonts are the most crucial on the menu card. Guests should never ask the staff if they can read the menu card for the guest due to the poor font used by the restaurant. A good font for a menu card should be easily recognisable and easily readable. Try to avoid Segoe script or any cursive font on the menu card. Our Favorite: Helvetica, Baskerville and Proxima Nova. Next comes numericals.The perfect font size for the menu is 12px(10pt). Keep the font smaller than that of the texts (2 points or so), and avoid showing the prices in bold. You should never let the guests know that you are focussed on income. 2. Menu Card Pages Keep the menu card small and manageable so as not to overwhelm customers with its size and choice of offerings. A 2-paged menu card is perfect for the food items. You can have a separate menu card for the drinks if you wish. When I say manageable, I also want you to check if your kitchen can produce the items you have so proudly mentioned on the menu card. Guests have often complained that some restaurants should revamp their existing card to offer only those food items that they can prepare. 3. How many items again on the menu card? As your aim is not to confuse customers, having 5 items under each category is a safe bet for a fine dining restaurant. You can also offer 3 special items every week to entice customers. In case you are a specialized restaurant, not less than or not more than 10 to 12 items should be there. Human psychology says that if you display more items than this, the customers will stop trusting your chef's ability. There is no shame in offering what you know best. According to the 'paradox of choice' theory, the more options you give someone, the more anxiety they suffer from over the perfect choice. Not just that, they will come out with the feeling that they probably did not order the right item as it did not taste well. An industry having 70%of its sales from repeat customers simply cannot afford to do this. This case stands tall if you own a fine dining restaurant as then your target customers are fewer in number. 4. Magical paper for menu card The infinite amount of possibilities in the menu's material is enough to frustrate you. You can opt for paper, leather, UV coated cards or lamination. Keeping in mind that the card does not appear cheap or sub-standard, avoid plastic and its shiny glow. Laminated cards are often not a favorite of fine dining eateries that prefer leather or paper because of the same reason. However, such cards are more durable than paper cards as they do not allow water, oil, gravy or dust to settle inside. When durability and longevity come into discussion, decide the type of traffic you encounter everyday and how messy your meals can get. Tougher materials can be managed over time and are easy to clean. 5. Where does the guest look on the menu card? Various studies have shown that customers look at the top left side, top right side and bottom in the starting. An average customer spends 109 seconds looking at the menu card. Hence, I suggest you put your most profitable dishes in these places called 'sweet spots' in the industry. Menu engineering is one of the most vital aspects of restaurant management. Since people look for less costly items, put the relatively cheaper, yet high-profit item below an expensive one to highlight the latter. That way, guests will know about them and order more. Click here to learn menu engineering. 6. Zero effect on the menu card It means number psychology. Numbers do play a major role in the restaurant industry. These are our number hacks for the restaurant industry: #) 00 or 99- Suggest value(but not necessarily quality) #) 95- Suggest friendliness. #) 01-Emphasis on quality. 7. Don't overuse photos on the menu card The excess use of photos is a big NO. Your high-end fine dining restaurant is better off without proclaiming how its dishes taste and let the guests decide that. If you use photos, do so sparingly and even then, use professional-looking high-quality images. As an afterthought, I would suggest you use illustrations as they are attractive to people of all ages and from all walks of life. Put the picture of your food instead of random images from the internet. Hire a professional photographer for them. 8. Describing Dish on the menu card As a business owner, you might feel that just naming an item and mentioning its price is all that you need to do. However, you cannot ignore the dish's description in any way whatsoever because modern-day guests like to be enlightened about what they are consuming. Some people have a fetish for a particular ingredient, while others might be allergic to that component. We love to see customers smile on checking the ingredients, but at the same time, we want them to be safe and save ourselves from unnecessary ethical issues. Servers should never ignore the allergy concerns of guests as they have led to deaths. Incorporating data about potential allergies to known foods like nuts, shells, prawns and milk products, mentioning the spice content of foods is important to ensure repeat visits by the same customer. Encourage the guests to read the descriptions before checking the prices of the items. Prices often depend on the ingredients and the cooking style. 9. Right Sequence for the menu card Starter, Main Course and Dessert. This is a fundamental step which should be followed by every menu card, but some restaurants don't follow it to stand out of the box. It can make the menu card look embarrassing if the items are not in proper order. A rectangle can be used if you would like to highlight certain menu items on the card. It is best to have one or maximum of two rectangular boxes for the menu items. 10. The Restaurant Academy special tips: Left or Right - Don't try to sail two ships at the same time. Be a master of one trade before jumping onto the other one. It means don't try to have two-three cuisines on the menu card. Side hero - Small menu card on the table which remains 24 X 7 on the table for fast food restaurants. Best advice is to have a dessert item here. Small tips - A. Please don't use the Grilled to Perfection and Sweet Ice Cream. B. Print your special menu items on food delivery boxes with pictures. C. Always have one vegetarian and non- vegetarian item which can be cooked in less than 5 minutes for guests who don't have time. Designing a menu can be as fun as challenging. Put these ideas together to draw eaters and encourage them to order from in-house menus. Please support us by sharing our articles on your social media.
Restaurant chains and industry experts across the world are reducing their growth factors for the present quarter as they are witnessing a dip in footfall and revenues since the first diagnosis and spread of Coronavirus in November 2019 in Wuhan, China. To know how the Covid-19 has impacted the restaurant business, we first need to get an idea about it. What is Coronavirus? 2019-nCoV (Coronavirus) is a strain of virus causing the COVID-19 respiratory ailment. Since it is a new type of coronavirus, it is called Novel Coronavirus or nCov. Like all coronaviruses, this too has come from animals. It transfers from one person to another when two or more people are talking, handshaking, eating, standing, walking or doing anything in a shared space. Many of the first victims either shopped frequently or worked at the Huanan seafood wholesale market. The virus can lead to pneumonia. Those affected suffer from fever, coughs and breathing problems. In some cases, patients may have organ failure. Since it is a case of viral pneumonia, antibiotics and antiviral drugs are useless. Since recovery depends on the immune system’s ability to cope, most of those killed had poor health conditions. The spread of the virus has been noticed to spread more in colder regions such as China than in hotter regions like India where the average temperature till now has been 10 to 35 C. Coronavirus’ Effect on Restaurants in China Since restaurants are a great place to meet and socialize with people, chances of guests or employees at the restaurants contracting the disease are very high. With the illness spreading like wildfire, a number of people are avoiding gatherings to keep themselves safe. For almost the entire month of February, the busiest streets of the most populous country of the world have stayed empty. As China has tried its best to contain the novel coronavirus causing Covid-19, the economy has almost come to a standstill with over 80652 confirmed cases. The condition has devastated the restaurant and wine industries. Restaurants in important cities like Macau, Shanghai, Hong Kong, and Guangzhou had to stay shut for 3 weeks. The lucky ones were allowed to operate for limited hours and offer only takeout services. In Hubei, some cities are under total lockdown. To prevent cross-infection, no one is being let to leave their homes without permission. As per one of the top wine importers of the country, in cities like Beijing, Shanghai, Shenzhen and Guangzhou, the condition is not as serious. However, even here, people are being asked to not leave their homes and bars, restaurants, as well as, cafes are closed until any more notices from the authorities. The restaurants that are still doing business can only resort to take-away business, which is also quite difficult given the lack of human resources available at such times. Additionally, the increase in takeaway culture has enhanced the risk of food poisoning and delivery agents could be unknowingly transferring the virus. Hence, the chances of selling wine are quite bleak. Macau’s casinos, some of the most popular destinations of wine, were closed for over 2 weeks. The situation was similar in Shanghai where customers were not visiting eateries and bars and employees were too few. Most employees have not returned from their native towns even after the Chinese New Year was over or are quarantined in Shanghai because all those who enter Shanghai from outside have to undergo a 14-day quarantine period. In such a state, most eateries and bars are suffering a considerable amount of loss. Since the Chinese still believe in consuming alcohol when they are out with friends or family or on business meets, the sale of alcohol too is down. The wine that was imported from other countries is at docks as customs officials and dockworkers are either trapped at home or are unwell. The wine association of Chile reported that exports to China for February have reduced 50%. Also, owing to the trade wars with the USA and the sudden attack of this virus, many companies and families are left with minimum money to spend on leisurely activities like fine dining and alcohol consumption. Now that the virus is spreading to many nations, fears that restaurant businesses around the world are going to suffer are rife. Coronavirus and the World Restaurant Industry Till 7th March 2020, Worldometer reported over 105,529 confirmed cases of Covid-19 and around 3562 confirmed deaths due to the illness worldwide. South Korea (7041 confirmed cases and 48 deaths), Japan (461 confirmed cases and 6 deaths), Italy (5883 confirmed cases and 233 deaths) and Iran (5823 confirmed cases and 145 deaths) are among the most affected countries after China. At present, China has stabilized its fight with Coronavirus with humongous public-health measures. The authorities are planning to lift restrictions in the Hubei province. But, new cases are coming up in other places like the USA (Washington, California and Oregon), Latin America (Brazil) and Africa (Algeria and Nigeria). As per McKinsey & Company, The US Centers for Disease Control Prevention has made it clear that community transmission will happen, in fact, there is proof that it may have begun already with 335 known confirmed cases and 17 deaths as of 7th March 2020. In such a situation, it is quite natural that people will avoid social gatherings at restaurants and bars. One of the worst-hit sectors is thus the hospitality industry. If guests do not visit a diner one day, all the preparations made for that day are wasted. Eatery owners all over the world are experiencing a check-in footfall and an increase in cancellations, especially by local companies. To avoid this lowering of guest count, restaurants are investing in employee training on refraining from face-touching and promoting hand-washing, cleaning and disinfecting items. They are stocking up on hand sanitizers and disinfection wipes for staff protection. While waiters used to fold napkins when diners got up from tables, the former is replacing those napkins to make contact minimum. Even though this is heightening expenses, the safety net is being spread. All across the world, more and more people are avoiding Chinese restaurants. Though it is not impacting big, popular and safety certified restaurants, the small family-run ones are getting quite a blow. If you come to think about it, whether it is a Chinese or an Indian restaurant people are giving a miss, the domino effect is ruining the local food industry - 1) Lower number of reservations and visits mean fewer tips for front-of-the-house staff. 2) The quiet request of tech companies to their employees to work from home and not attend business meetings physically as well as restrictions on travel is leading to fewer guests frequenting restaurants. This attitude affects the farmers market and so each segment in the hospitality industry takes a hit indirectly. Amid the growing instances of Coronavirus, widespread fear that the lowering tourist flow could throw the already dwindling economy into recession is a burning issue in the country. Throughout the world, bars and restaurants are reporting a huge drop as residents are staying home. The Restaurant Academy Tips: Surviving the coronavirus storm would be crucial for the restaurant industry. To recapitulate, your aim as a restaurant owner is to reduce the number of contacts with the guests if possible. Here are the points which the restaurants can apply to sustain this wrath of coronavirus: 1. Increase Food Delivery Service: Measure body temperature of employees before work and put it on food boxes before delivery and put employees medical reports online if it’s allowed in your country. Call the chef in the morning and waiters can do food delivery in the evening. 2. Scan Menu Card Option: Only have 2 to 3 items on the menu card per category to start. Our special tip is to put the menu card on social media for the guests to order. You can even put the scan card option, people can download the menu card with a click on it. Try to get rid of the paper menu card now. 3. Naked Table: Don't put anything on the table now. Bring the cutleries in the napkin(cotton cloth) wrapped after the guest ordered. Remove salt and pepper mill instead have them in paper packets. Your aim is to reduce to the most common touch items for the guest. 4. StopWatch: This is a bold move. Time has a lot of value now especially for the restaurant business. You can request the people that for 3 courses not more than 1.5- 2 hours after they order. Our special trick would be to do new sitting after the gap of every 2 hours. 5. Mask and Gloves: Waiters should wear a mask during the shift. Try to have cotton gloves instead of plastic gloves to save the environment. A proper mask should be worn by the employees as well. 6. 2 M distance: You need to have the proper distance between the tables. You can put any tape to have enough distance between people. Make sure the restaurant gates are OPEN. You are trying to avoid the guest touching common objects. Touchless Sanitizers should be kept at the entry gates. Use the empty tables for upselling. Example: Put a large empty champagne bottle to promote champagne offers. Champagne makes the most profit compared to other drinks. 7. Reduce the temporary staff: Tell the truth to the employees and they will understand the current situation. 8. Social media Food Order: Zomato started taking food delivery order on ''Twitter''. It will help you to reduce third party cost. 9. Bounce Back: Take this time to work on creating better videos, new menu, social media content during this storm. We can help you with it also. Please send email to us:abhishekrajchauhan19[email protected] 10. Spread the Coronavirus awareness: People don’t forget when you provide good information. This technique is not widely used in the restaurant industry. Special Tip: 1. Gift Cards can help you to survive this coronavirus storm. 2. Promote card payment instead of cash. 3. Time to say goodbye to buffet services for some time. Restaurant and bar owners are looking forward to the change and expecting to bounce back to their greener days.
The term ‘business environment’ is used to refer to the institutions, individuals and other external forces that may affect the performance of a restaurant but are outside its control. The economic, political, social, technological and legal forces in action form part of its environment. Also, the competing enterprises, governments, courts, media and other institutions operating outside your business are its environments. How Economic Environment Impact in Restaurant Industry? Rate of inflation, rate of interest, stock market indices, changes in disposable income of people and the value of currency are some of the economic factors affecting your restaurant. Long and short term rates of interest can considerably influence the demand of services and products. An increase in the gross domestic product leads to the rise in disposable income and enhances the demand for restaurants. Again, high rates of inflation result in creating limitations on business enterprises as they heighten the purchase of machinery & raw materials and employees’ salaries. Personal budgets affect party plans and eating out at restaurants. During a poor economy, people are less likely to visit restaurants. Travelling too is checked, which indirectly affects diners. Families prefer to stay home and prepare their own food even when they have vacations. The labor market is growing stronger and with it consumer spending. Besides, average hourly incomes have also increased. These are positive signs for the restaurant industry. This economic situation is a sign that an industry is going to succeed. How Social Environment Impact in the Restaurant Industry? Social forces such as traditions, customs, social trends, values, expectations of the society from the business are social environments. Traditions define that social practices have lasted for decades or even centuries. For instance, Christmas, Id, Diwali, New Year, Thanks Giving and Halloween provide great financial opportunities for restaurants. Values refer to concepts that a society holds in great esteem. Social justice, individual freedom, national integration and equality of opportunity are major values cherished by most people. These values convert into the responsibility of business towards a society, freedom of choice in the market and non-discriminatory employment practices. Social trends create different threats and opportunities for business enterprises. For instance, a huge segment of urban dwellers has become health conscious. This has created a demand for products such as bottled mineral water, organic food and less oily food. While this came as a blow to the industry initially, restaurants have now adapted to it and are accordingly preparing their food. What Affects the Social Environment? The anxiety of quality of life The approach towards lifestyles, preferences of consumers and lifestyles Expectancy of life The number of women in the workforce Population shifts Composition of family Habit of consumption How Technological Environment Impact in Restaurant Industry? Technological environments are those forces that relate to scientific innovations and improvements, providing new ways of producing services and goods and new techniques as well as methods operating a business. Technological factors have emerged to be demand facilitators for the restaurant industry in the 21st century. In this industry, technology is the biggest influencer. Technology has made communication easier between restaurants, stakeholders and consumers in various parts of the world. An increasing number of guests research and try to come across the best deals before finalizing the final booking. Hence, there is no doubt that technology facilitates the hospitality industry to a great extent. The restaurant industry has increased the use of technology all over the world. Digital entries, messages and bookings have become common due to mobile technology and social media. So it can be easily concluded that both buyers and sellers have benefited from technology. As of 2020, mobile technology and IoT can affect several new changes. But that does not in any manner undermine human touch without which the entire industry might encounter severe losses. Highlighting this, we can bring into reference the spread of Coronavirus in China where people have stopped getting out of their homes, working or eating out in fear of the contagious disease. This has brought about dark days for the restaurant industry in that country. How Political Environment Impact in Restaurant Industry? Globally, political factors have a deep and direct impact on the restaurant industry. Whether it is terrorism or the altering government regimes, the effect on the industry is always direct. The importance of political conditions in business success depends on the predictability of business activities in a stable political situation. A country with political stability and general peace is lucrative for both domestic and international tourism, which is a major contributor in the restaurant industry. Political stability creates confidence among investors and their business owners in long-term projects. Threats to law and order and political unrest lead to business uncertainty. Egypt and Kashmir in India are examples of the poor tourism industry and hospitality industries. A place with a lot of criminal activities is a threat to law and order, and leave alone guests, restaurant owners are scared to open their business every day. Check the attributes of the political environment below. A country’s constitution Existing political system The extent to which economic and business issues are politicized Ideologies and political practices of ruling political parties The level to which governments intervene in businesses The relationship of the country with foreign countries The perspective and inclination of government officials towards business may either have a negative or positive impact on the hotel industry. For instance, even after the Indian economy opened in 1991, the bureaucratic red-tapism checked the entry of foreign firms to the Indian business market. Sometimes, it took months to just process the applications made by these firms. This slow procedure discouraged these firms from investing in India during that time. But with the changing times, foreign companies have made it big in the country. How Legal Environment Impact in Restaurant Industry? The legal environment comprises different legislation passed by the Government, court judgements, administrative orders by government authorities as well as decisions by various agencies and commissions at each level of the government, whether it is local, state or central. Every business must know and abide by the rules and regulations of the land where it operates. Not complying with the laws can put the business in legal issues, emerging from which might get difficult. If you wish to have a hotel in India, having knowledge of Companies Act 1956; Industries (Development and Regulations) Act 1951 and such other legal enactments that the Parliament modifies from at intervals is important for doing business. The legal environment in the restaurant industry is quite a complicated one as both public and employee interests are catered to. Other laws too influence the sector, but public safety and labor laws are of prime importance. Restaurant owners cannot compromise on market share by losing focus on risk management. The legal challenges and pressures in the tourism industry are huge. The effect of the legal environment can be shown with the help of government regulations to preserve consumers’ interests. For example, the caution on a menu card that a particular item may have nuts, milk products, soy, shells and such other allergic ingredients. For brands operating in multiple nations, it is crucial to comply with the local laws. Train your staff properly and hire only certified degree holders to avert legal hassles since only certified professionals are equipped with the level of knowledge and expertise to handle the trends and pressure at restaurants. Also, hiring trained and skilled employees is the interest of the employees who would stay unemployed if all restaurants had hired untrained and unskilled workforce to save costs. These parameters help you decide if the restaurant industry is moving in the right direction or not, what the threats and weaknesses are, what opportunities are there and what are the strengths of your business and the industry. You can then make an informed decision about the right steps to take your restaurant business further.
SAMPLE MENU CARD DESCRIPTION The restaurant menu in detail to explain to the staff. It's just an example of one of the restaurants in Iceland which you can provide this for your staff to learn. Starters Pork belly and langoustine dates, rye- bread and kale Pork belly is slow-cooked for 16 hours, which makes the meat really tender. just before serving, the belly is pan-fried. it is sad with grilled langoustines. Langoustines are small, slim, orange-pink coloured lobsters. Date chutney: dates + boiled water. Rye bread crumbles: dry rye bread is processed in a food processor. It is also served with sauteed kale. kale is a type of cabbage with green leaves. Seafood salad Shrimps, mussels, scallops are slow-cooked, then toast with avocado mayonnaise. Served with tempura tiger shrimps. Lobster soup Langostino shells are used to make a strong Lobster stock, which forms the base of the soup, to which cream is added. Langoustine tartar is choked row langoustines mixed with capers and parsley. The champagne gel consists of champagne and agar-agar. Seared Minke whale The whale is seared in a pan( rapidly cooked at a high temperature until crust forms). it is served Japanese style with Pickled ginger, wasabi( Japanese horseradish), dill and onion. Main course Rack of lamb and pulled pork Rack of lamb is a cut from the Rib section of the lamb. It is served roasted. The kitchen recommends it medium-rare or medium. Pulled pork is made from pork shoulder, it's slow-cooked at low temperature, allowing the meat to become tender enough to be ‘pulled’ or shredded into individual pieces. Then it's mixed with barbecue sauce. Served with pearl onions, butternut squash and mushrooms and finished with cognac sauce. Atlantic halibut, potato cake, chorizo Halibut is a flatfish living on or near the bottom of the sea. The fish is pan-fried and it's served with a potato cake. Potato cake: Layers of potatoes, baked in the oven. Blackened leeks, burned in the oven. The dish is finished with a cognac flavoured sauce. Langoustines and duck confit Langoustines are grilled. To prepare the confit, the duck leg is seasoned and cooked in its own fat. It is served with blood oranges( slightly in blood orange juice), sauteed beetroots, puff pastry, and burned parsnip puree. Most of the ingredients apart from the puff pastry and parsnip puree are cooked together in the same pan. Tenderloin of beef and crispy thigh Tenderloin is a cut just below the rib cage. it is one of the most popular cut because it is tender and is low in fat. It is served with Crispy thigh. The thigh is a cut from the round/ lick section of the cow. it is slow-cooked after which it is wrapped in pastry, rolled, and deep-fried( spring roll Style). It is served with roasted baby potatoes, and cauliflower prepared different ways( always changing). finished with red wine sauce. Desserts Dill parfait, salted caramel biscuit and raspberries. Parfait is a frozen dessert made from egg, cream, and sugar, flavoured with dill. Dill is a herb commonly used in Scandinavian cooking. Chocolate bomb, sea buckthorn berries, meringue Chocolate bomb consists of layers of Kit-Kat, white chocolate ganache, dark chocolate ganache. Ganache is usually a mixture of chocolate, cream. Sea Buckthorn is a small fruit( size of a berry). Eaten raw, it is very sour. We marinate it in sugar syrup. Skyr moose Skyr mixed with beaten egg white. It served with white chocolate mousse, mixed berries and oats.
Running a restaurant can be an expensive and complex procedure. To make sure you are on top of the business, figuring out food cost is one of the most important things. Food Cost is the ratio between how much it costs the restaurant in raw materials to make a dish and how much revenue the restaurant generates from it. Always remember that food cost changes every day. Best restaurants try to put food cost under 30 %. The four methods used in the restaurant industry: SIMPLE MARK-UP MULTIPLIER METHOD PRIME INGREDIENTS MARK-UP METHOD NOTE: The prime ingredients here are Ham, Bread and Cheese. I used the food cost method Ham(1.26) + Bread(0.60) + Cheese(0.75)=2.61 RATIO PRICING METHOD CONTRIBUTION MARGIN PRICING METHOD
MENU ENGINEERING: Understanding food items in terms of returning a profit to the restaurant. PLEASE DOWNLOAD IMAGE FOR BETTER UNDERSTANDING. PLEASE DOWNLOAD IMAGE FOR BETTER UNDERSTANDING. Please Like and Share US on our social media platform.
90% of restaurants shut down in the very first year when they are launched. And you were thinking of investing in this business! Unless you have a solid reason to enter this industry, you better stay away from it. Just because it’s all glamorous and shiny, it does not have to be serene. Not everyone stands a chance in this tough game. The Restaurant Academy is here to help in your endeavor to make it big. 1.MONEY MONEY The Restaurant Academy means ''Profit''. Somebody must have told you that the business is lucrative and so you thought of giving it a try. Is it that easy? The truth is, most restaurants do not see any profit before the 3rd year of business, which may also get extended to the 5th year in a lot of cases. So, instead of building castles in the air, gather a massive sum for investment because success is still very far away my dear friend. 2. I CAN COOK The Restaurant Academy means ''Passion''. You love to cook because your best friend and your family keep praising you. Appreciation brings an interest in work, no denying it. However, cooking for friends is quite different from cooking at the restaurant professionally for discerning guests, who are paying for the food. Will the guests shower equal amounts of admiration on your preparation? You better start doubting yourself. And I hope my sarcasm helps you improve for your next venture. You have come to love working at the restaurant and now you are ready to have one of your own. Do a reality check beyond hefty salaries, uniforms, guests adorned in sparkling clothes and style. These just form the facade, the dullness lies beneath. Since you have started reading this article, let me tell you that the business will not let you rest, physically or mentally. Are you up for it? 3.LEARNING MODE ON The Restaurant Academy means ''Ability to learn''. You will learn more about the industry as you work. This may be true for all types of businesses, except this one. Hospitality can be ruthless. If you press the pause button for a second, your success rolls down the hill. An employee might join a rival restaurant, a rival restaurant can send their own employee to spy on you, somebody might spread nasty rumours about you. Therefore, hoping that very soon you will turn into a connoisseur is the worst idea that came to your mind. You have to be ruthless to learn in an environment of cut-throat competition. Can you do it? 4.PARTY ALL NIGHT The Restaurant Academy means ''Time to enjoy''. Do you really think you will have all the time in the world to enjoy your favorite beer and whiskey brand whenever you want? You are wrong. Let me clarify this, your business is like your child, and you will spend over 16 hours every day, including weekends, to see it stand out and shine. So say bye to your good old happy days, and brace yourself for a hectic journey ahead. 5.MY BRO ROCKS The Restaurant Academy means ''Partnership with brother/friend''. A friend or a sibling is the brain behind your costly dream? In that case, do not make it your dream. Some people, while looking for an investor or a dedicated resource cum owner try to influence others. This other person is unfortunately you. An unsuspecting you might consider the venture interesting at first, but then lose all enthusiasm over time. Why? The answer is simple, you were never into it. 6. I AM SPECIAL The Restaurant Academy means ''Niche''. We all think that our ideas are truly original. Surprisingly, many of us are probably thinking the same thing at the same time. Blame it on the population or easy communication in the 21st century, whatever! If you want to glitter above par, create a niche for yourself in the market first. Let people get to know you. Becoming unique is not a child's play and it takes a lot of experience, knowhow and intelligence to stand up straight in this path. 7.MY RULES MY GAME The Restaurant Academy means ''Controlling''. Many of us start our own ventures with the misconception that once we have our own business, we will have full control over it and not be answerable to anyone. But, we all forget that God is the ultimate controller and he always finds a way to tell us that whenever we start a game, the rules change with time. Your business, but you cannot be a dictator. A good leader is flexible, who understands the needs of the team members and values teamwork. So peek into your soul and ask yourself if you want to become a tyrant or a genuine leader. In the first case, your establishment will be a cage of depression, which will eventually close down. The second case might see you flourish. But again, this world is full of good leaders. You have to be better than the best. 8. I KNOW EVERYONE The Restaurant Academy means ''The Role of Investors''. In new restaurant businesses, the investor ratio is 1:13. Unless you get all the money from charity and donations, investors are practically owners. They will want a profit percentage of your business. The higher the invested amount, the bigger the profit they enjoy! But if the return is nominal, how much will you have left for yourself after you pay them? 9.HELPING HAND The Restaurant Academy means ''Help from friends and family''. Just like I argued that your brother or friend’s passion should not be yours, I do the same for their help. But, who am I to say anything? So this time, it’s your turn to dive into the moral science lessons from your school days. Remember what you learned about helping yourself and not depending on others. This is your dream and your journey. 10. PLAN B ON The Restaurant Academy means ''Moving to other business if it fails''.Having a Plan B is the sign of a genius only if you have thought Plan A through and through with all its pros and cons. Plan A should be almost full-proof in order to take your business through thick and thin. Plan B is a contingency to be implemented when Plan A does not work. So, do not ignore the first plan if you want to succeed. It seems I have snubbed your every excuse to start a restaurant industry. But my intentions are good, trust me! I am just helping you to be ready for the rough ride ahead. Check our second article for solutions to the problems I have identified in this article. The Restaurant Academy offers deep insights into the nitty gritty of the hospitality industry. With years of experience, the writers of this blog have earned the knowledge and talent to help you in every step of the way. Whether you want to commence a restaurant business or become a part of the industry as an employee, we can assist you with our input. Please Share our article on your social media.