If your dream is to open a restaurant, the biggest mistake you can make is to rush into it without a reasonable, sustainable plan. According to RestaurantOwner.com, an astounding nine out of 10 (90%) of restaurant startups fail in the first year. To succeed, you’ll need several key things. One of those things, an Indiana Restaurant Insurance policy, will help protect you if you’re sued, experience property damage, etc. Unfortunately, insurance will not protect you from competition or an underwhelming menu. There is no 100% foolproof plan for how to open a new restaurant. There are, however, some tips that can boost your likelihood of success.
Don’t Break the Bank on New Equipment
For aspiring restaurateurs, there’s a silver lining to the fact that so many restaurants fail. The owners of the equipment in those shuttered restaurants will need to sell it. You can save a significant amount of money buying gently used rather than new equipment.
Don’t Underestimate the Importance of a Great Bartender
Alcohol sales account for a huge percentage of a restaurant’s profit margin. Not only will a great bartender make great drinks that will inspire patrons to order another round. A great bartender will have a winning personality and develop a following. People will become regulars at your restaurant not only for the food but to socialize with their favorite bartender.
Don’t Procrastinate About Applying for a Liquor License
Again, alcohol sales make up a huge percentage of a restaurant’s profit. Sometimes, it takes weeks or months for an application to be approved. If you open before you have your liquor license, your grand opening won’t be so grand and you’ll be starting out with the deck stacked against you.
Less is More When it Comes to the Menu
Not only will your food costs soar when you have to stock all the ingredients for an exhaustive menu, you’re also more likely to turn out mediocre food. It’s always best to offer a limited menu and execute it to perfection than to over a huge array of options that are underwhelming.
If you’re contemplating opening a restaurant, do your homework and try to hold off until you have a decent financial cushion to help you survive until you build up a great reputation and loyal following. Contact us at Walker & Associates Insurance, (888) 760-7292, for your insurance needs. We can explain your coverage options, and how much coverage will cost.