The restaurant business is much more complicated than it seems at first glance. And in order to analyze the market, you need to understand the business in principle, decide on your goals, and only then proceed to general analysis.
With the selection of material for this article, we were helped by Victoria Reinikova, a restaurant consulting expert from Bureau Business Ideas.
Where to Start
First of all, answer one question: What do you need it for? There are two types of answers, and the rest lead to one or the other:
To invest capital in a profitable business;
To realize your dream and make money while having fun in the process.
If you choose any of these options, events will unfold almost identically, but the approach to the tasks will be different.
In any case, to successfully and easily build a business, you must understand its product. At a minimum you should decide on the concept of the institution and make a business plan for the cafe.
Think about what kind of institution it will be
City cafe, patisserie, bakery, bar or pub, family restaurant, a Mexican restaurant, hookah bar?
While you look for your format, it is worthwhile to monitor all the successful and unsuccessful projects of different formats to try to figure out what made them so. Also, each format has certain location requirements, and for some you’ll even have to choose a chef or create a menu.
Reflect on the main product.
All you have to do now is create yourself a folder on Pinterest and collect pictures that can convey your idea. The first thing to do is to fill your folder with your main, “anchor” product – the one that guests will come to you for.
For example, if you have a bakery, you might emphasize a large assortment of homemade bread or puff pastries. Perhaps you will opt for pastries or pies. It is this anchor product and will dictate the basic conditions for the realization of your project.
The same will apply to the rest of the household issues that will help you understand your place in the market and get to know your competitors.
For example, if you determine that you have a bakery, you can easily navigate issues with exhaust, ventilation and necessary electrical capacity. Once you’ve identified your main product, you can also make an equipment list, go over the entire cooking process with a technologist, and then ask for estimates of products and equipment from suppliers. (For a more detailed plan for opening a bakery, see a separate article, “How to Open a Bakery.”)
Decide on your target audience
Once you’ve decided on your UTP (unique selling proposition), you can begin analyzing your target audience. To understand who your establishment would be right for, try imagining your café, seating groups of people at all the tables and bringing them orders. And then try to answer simple questions for guests from different groups:
- Who are you?
- Where did you hear about us?
- Why did you come to us?
- When will you visit us again?
- What else could we offer you?
- How much are you willing to pay for it?
The last question is a favorite, because business can’t be about anything but money. You have to be clear about what kind of guests you want to work with and who your project is created for. Think about what other services your potential guests use, what kind of lifestyle they lead.
When you can answer these questions about each of your imaginary guests, it will be much easier for you to analyze and make plans to develop your project.
Choose a design
Next, your job is to choose a design concept. Any stylistic decision will dictate its requirements for the space, and it’s your search for the space that determines your analysis of your closest competitors and your success in the marketplace.
For example, your concept does not accept low ceilings or you do not see your project in a basement room, etc. When you have a brief description of your concept for the main product and design, you can begin to analyze the market for the space for the implementation of your concept.