• Business1 Comment

    It is not an exaggeration that restaurant business is one of the most lucrative in Nigeria today.  Even when other commodities experience poor sales, restaurant business thrives. The success that restaurant business has met with can be attributed to the fact that eating is a necessity. As a matter of fact, it is the number one need of man. Another factor that has contributed to the success of restaurant business is the busy life style that an average Nigerian leads. Most people are so busy that home cooking is considered a waste of time. The opportunities that abound in this industry might pique your interest in investing in restaurant business. This article is intended to teach you how to start and make money from this business. 
    Running a restaurant is quite a tedious task. In fact, it is one of the most stressful businesses to run. Starting a restaurant business is one thing, running and making it successful is entirely a different ball game. Despite the challenges associated with owning a restaurant, many individuals have found successes in this sector of the economy. How did they do it?  How do you serve the best meals; provide excellent services and keep your customers loyal? Below are the tips that will guide you in starting and running your own restaurant.

    Raising Capital

    If you are unsure about how much money you will need upfront, discussing with other restaurateurs can be of help to you. There are numerous ways you can raise capital for your business, they do it through taking advantage of government programs or liquidating assets  using them as collateral for a loan; or encouraging a family or friend to become a partner.

    Do a Feasibility Study

    In business, knowledge is power and the application of knowledge is an advantage. To  succeed in your restaurant business, you need to know everything about it. Study the environment, know what their favourite or most consumed dish is. Your locality goes a long way in determining the kind of dishes you prepare more. So mingle with people and visit existing restaurants.

    Write a Business Plan

    When starting this business, you need to do a survey. This will help you to acquaint yourself with the challenges that may lie ahead and get the real opinion of people from a scientific point of view. You need to write a proposal on the things you will need to start the business. When starting a restaurant you will need equipment and tools like furniture, power generator, air-conditioners, and kitchen utensils like spoons, plates, pots, gas cooker, etc.
    Cost of Starting a Restaurant
    Rent – 24 months = N150,000
    Cost of Wares =  N10,000
    Costs of Equipment= N50,000
    Costs of Food Stuff/ Ingredients = N30,000
    Total  =N390,000

    Look For A Good Location

    The importance of location to your business cannot be over emphasized.  It is vital in the restaurant world. It is important to find a location that has a continuous stream of traffic, convenient parking, and is in close proximity to other businesses (especially if you’re catering to the lunch crowd). Don’t forget to revisit your business plan to make sure you are close to your target customers and market.  It may not be the best idea to open it in the vicinity of garbage dump. A restaurant should be in a very neat environment. In addition, make sure your monthly rent is in-line with your business plan’s projected profit so that you do not run at a loss eventually.

    Employ Experienced Hands

    The next challenge most businesses face is retaining skilled and experienced staff. There is nothing wrong in consulting a chef who has gathered the experience needed to run your business for you. Don’t be miserly about paying the best hand.
    If you are successful in getting such an experienced person, endeavour to keep him or her loyal to you. As a restaurant owner, you are expected to offer certain benefits to your staffs to keep them loyal to your organization. Periodically offer benefits like vacation pay, clinic allowance, health insurance, etc. Employees in the quick service restaurant business are often young and mostly inexperienced. When you hire a new employee, not only does the employee need to learn all about the restaurant skills, but also needs to adapt to a restaurant work environment in general. Therefore, it is your duty to give sufficient time, energy and orientation to the employee. This costs money, time, effort, but you will definitely reap the benefits eventually.

    Maintaining Good Customer Service

    A need for food brings customers into your restaurant but good food and excellent customer service keeps them coming back at all times. How you handle customers complaints and how you appreciate your customers matters a lot. If you want to build a good communication with you and your customers in your restaurant, you must create a very good customer service and be prepared to handle bad or rude customers effectively. Customers are known to be the king of any business, keeping our customers can be very tasking, but it is a rewarding idea.  
    There is no doubt that restaurant business  is a lucrative and profitable in Nigeria. You need to get it right by making a complete business plan. You need to apply good management skills and follow the acceptable standard. Soon you will be smiling to the bank as you count your profit.

    Related Posts

    1 Comment

    • Victor Ikani April 11, 2018

      Thanks for sharing these great points. But I also think that the cost of the shop rent also depends on the location.

    Add a comment