3 Things to Know BEFORE Opening a Restaurant (Avoid These Mistakes!) 2019 | Restaurant Management


hey guys today I’m gonna be sharing with
you three tips that you need to know before opening up a restaurant or if you
already have a restaurant these three tips will bring your restaurant to the
next level my name is Wilson and today we’re gonna be going over three steps
and three tips that you would need to know before opening up a restaurant
these are the tips that you would want to avoid and these are things that you
would want to know beforehand or let’s say if you’re opening and operating on a
restaurant already it is nice to review these steps ensure that you have act
actually optimize and capitalize on every chance for you to bring your
restaurant to the next level make sure you guys stay till the end to receive
your special gift these are the documents that I’ve personally used to
grow my icecream chain into an international brand yeah so make sure
you gotta stay till the end that’s a special gift for you if you guys have
any questions comments make sure you guys drop them below and I’ll make sure
that I reply to them the three things you need to know before opening up your
restaurant number one know your numbers now I know math is not your forte nor is
it my forte but did you know that more than 80 percent of the restaurant owners
fail to succeed because they do not know their numbers the way to tell whether
your business is healthy is by the numbers a simple tweak here and there
would determine whether you have the opportunity to bring your family to Bora
Bora on the beach or will you need to be working through the holidays because you
can’t find anyone to help you out it is all in the numbers personal story of
mine is not four years ago I was audited by this CRA the tax revenue agency and
they were accusing me of owing them more than two hundred thousand dollars we
fought back and forth because I didn’t have the proper bookkeeping I didn’t
have the proper receipts and every single moment that they had a chance to
ding me they’d hang me on so at the end of the day I
hundreds of thousands of dollars back to the Revenue Agency’s for something that
I’ve not committed of and it’s just it sucks hey you make all these money and
you want to keep in your pocket but because of these poor practices of mine
I have to pay a really hefty fee so please please please do not make this
mistake don’t make them any richer than they already are now on a positive note
because of me spending a lot more time understanding my numbers now I was able
to go from $200,000 in debt with with the tax agencies to now we’ve grown our
brand internationally all because of me spending a little bit more time on the
dry stuff knowing my numbers now for the sake of simplicity I’m gonna go over
three main categories of expenses that you need to keep an eye out for and
their average percentage that it should be taking from your business I know
there’s gonna be a lot of subcategories I know there’s gonna be a lot of
different expenses for you accounting nerds out there please don’t call me out
and ambush me in the comments I’m just going over there’s really really big
picture so for the people like us that that we don’t really know about these
things this is like the best and perfect place to start the three numbers to aim
for okay one the rental costs make sure that you keep your rental costs as low
as possible okay so many people fail to do this because they enter into a lease
agreement that is not in their favor they are overly optimistic about what
they can perform and as a result of that the rental cost is much higher than they
can afford so it doesn’t matter how much money they bring in they’re still gonna
be at a loss so make sure you pay attention to your rental cost as an
example one exercise that you can do is go to your competitor’s restaurant look
at what people are ordering on average okay if people are ordering a $15.00
meal and they order a drink average ticket price around $20
now you’re gonna click and you’re gonna calculate how many people are actually
consuming on a daily basis go there for three days
sit there trying to try to adjust in forecast how many people are actually
ordering by the end of the day and end of the three days you would have a rough
estimate of how many people are walking through the doors
an average ticket price of let’s say $20 some people be ordering wine other would
be watering pop others would be authoring ordering appetizer but at the
end of the day we’re looking for the average ticket price and with that
average ticket price of let’s say $20 a hundred people go through the doors that
is gonna be $2,000 that you’re looking at in terms of revenue now times that by
let’s say twenty five operating days then that comes out to be 550 thousand
dollars what that means and that translates into is you should account
for no more than 15% of rent which is $7,500 as rent for this specific
location once again aim for 15% for rental cost now this is only a
forecaster they have Fridays Saturdays Sundays doesn’t matter
average it out there are good months bad months average it out use your best
discretion okay so this is something just to aim for it’s not something
that’s gonna it’s not a Todai thing but at the end of the day and I want to give
you a reference number so you know whether you are on the right track or
not 15 percent is what you should be aiming for the second cost that you
should be looking into is the food cost this cost is basically everything that
goes into producing the meal that you’re making whether it be the ingredient cost
whether it be the person that is the cooks that are preparing the food to the
utensils to let’s say if it’s a takeout box then the takeout boxes well anything
that it goes into producing the food is supposingly and calculated as a food
cost and as a rule of thumb we do not want to go and exceed 35% okay so you
should be aiming for 30% for your food cost
the third costs look into is labor costs this should include anywhere from
your servers to your managers to the operators so many businesses that are
I’ve mentored they make the mistake of not including their own labor costs into
the math and at the end of the day they’re looking at them there are P&L
they’re like wow I’m making like so much money because at the end of the day
they’re not putting in the time that they have been spent operating the
restaurant so make sure that you as an operator you put your costs into the
calculations as well so with labor costs you try your very best to aim for 30% as
well so all in all if you put all these three big costs together you should be
aiming for no more than 75% which leaves you around 25% that goes into utilities
that goes into management that goes into your own profit margins okay so the
better you can control your food costs and the better that you can control your
labor cost the better margins you have and the more money you can take home
from that if you can run these numbers and to hit these goals then you are
golden you can afford to bring your family to bora-bora be on the beach
drinking pina coladas with them because these numbers would allow you to have a
very healthy margins if you were to hire a manager or an operator to be in place
of you then give these as your own kpi’s for them these are the key metrics where
you’re managing their performance okay the food cost and the labor cost is
something that you can use as a parameter for them to manage their
performance there’s so many ways where they can aim and they can utilize
strategies to lower these different percentages whether it be stop spoilage
whether it be theft staggering schedules bonuses there’s a lot of different ways
in Santa Fe there their staff to bring up the sales
while decreasing the labor and the food costs as well okay so if
you guys have any more questions make sure you guys drop in the comments below
whether it be lowering your spoilage –is or different ways to schedule your
staff you can leave them in the comments below number two know yourself imagine
this close your eyes you’re lying on the beach of Bora Bora you’re embracing all
the sun rays embracing the quality time spent with your loved ones and you’re
filled with gratitude and love and the best part is not you knowing on the
other side of the country you there’s someone that is confident that is good
that has common sense that really cares about your business taking care of your
business for you and delivering the results and the great customer service
and quality products that you you set out that you’ve envisioned and empowered
them to do so the best thing is that this whole trip is paid for by this
automated cash cow that you have built yourself how amazing does that sound
this is all possible when you know yourself now let me explain you see the
experience that you want to deliver to your customers you see the vision and
you see the kind of smiles of them enjoying your meal you see how this
whole restaurant or cafe should look like and the feeling when someone walks
in to your joint you’ll be like oh this is freaking amazing you see this and you
have a vision to deliver for your customers and this is your gift if you
want people who are great that have common sense that are competent that is
passionate to care about your business to be able to handle this and execute on
your behalf then you’ve got to communicate this vision of yours in to
them give them the parameters and the tools to execute on your behalf this is
what sets people who are working in their business 9:00 to 9:00 every single
day with no holidays apart from the people who actually can travel and to
spend quality time with their loved ones and their family this is the biggest
differentiator by knowing yourself and being able to
translate that to your team so many people I know and clients on I
have are complaining about the fact that they cannot hire great help and that is
something that I feel totally against because I feel like it’s your
responsibility to be able to translate your vision with a purpose to the people
that are out there to help you this is what creates good culture it is the
ability to translate this vision to them let them see what you see and when you
can do that that’s when they can deliver on your vision that’s when they’re
rolling all in sync that’s when you can go travel and have someone else take
care of your business and that’s when what real business is about you know the
perks of having a business is the fact that you can control your time not
having your business control you so many business owners out there especially
people in restaurant business have are falling into the curse of this is that
they need to be in their business 24/7 because whether it be people stealing
from them whether it be quality control whether it be customer service whether
it be machine malfunctioning so many things happening all at once and it’s so
difficult to find great help great talent great chef great managers all
these types of things is because of the fact that they’re not well informed the
number one thing that you can do is to know yourself know your visions know
your values and communicate that with your team when you’re able to
successfully do that that’s what becomes super super powerful if you want to know
more about this or if this is of any interest to you make sure you drop a
comment below and I can explain further about how do you create this culture how
do you create this movement and to communicate this with your team number
three know your customers so many restaurant owners and cafe owners are
falling into the top of this the biggest blind spot is the inability to connect
with their customer as restaurant owners and cafe owners we
all have a specific vision in mind that we want to deliver yet we fail to hear
what our customers are wanting we fail to connect with them we fail to show
them hey this is my world this is the picture that I want to draw and we fail
to connect with a customer on a personal level your customers are coming through
the doors for a very very specific reason whether your restaurant being in
a high-end restaurant which is a place to wine and dine your other loved ones
or is it a fast-food joint which people are coming in to grabbing go for their
lunch rushes you need to very very much understand what and who you’re catering
your services to it doesn’t make sense to have a two-goal product and a to-go
menu something that’s grabbing a quick and go if you are trying to cater to
people who are wanting to have a dining experience
a dining experience where they can come and celebrate their mouth stones or to
bring their loved ones to impress them to wine and dine them if your product
and what you’re serving does not align with the people that you attract then
there’s a misalignment and it is this misalignment that causes people not to
come back and to be a repeat customer so your number one thing that you need to
do when connecting with your customers is to know your customers to know your
customer demographic why are they coming in through the doors what is it that
they value what is it that they don’t value what is it doctor hate when is it
that they come in the most often when are the peak hours know your customers
so well that when you’re talking to them they feel like that there’s a connection
with them that’s when you know that you have a successful business is the
ability to connect with your customers give them what they need and give them
what they value and they’ll always come back for more it’s the experience that
they’re looking for and if you can do that then you don’t need no
you don’t need no marketing tactics that’s gonna pull in people just one
time you’re gonna have a loyal customer for life okay it’s as simple as this
just give them what they want okay guys we’ve identified three simple things to
know to increase your chances of running a successful restaurant or to tweak your
restaurant so then it’s even more successful and those three steps are to
know your numbers know yourself and to know your customers please please please
do not make the mistakes of ignoring these three basic principles I mean as
simple as it sounds these are the things that’s gonna
determine whether you are on the beach in Bora Bora or you’re gonna be hustling
9:00 to 9:00 every single day being a slave of the restaurant okay I’ve been
sharing these things with you because I do not want you to be like so many 90%
of the cuts or the restaurant owners out there who are suffering and being in the
rat race okay I really want you to be on that beach in Bora Bora with your loved
ones okay and as promised my gift for you is that
I’ve prepared for you in the link below all the documents on I personally use to
grow my ice cream business and that allows me to travel the world when some
amazing talent to take care of my business for for me so these are the
templates that I’ve used make sure you guys click on the link below to download
it there’s no gimmicks no nothing it’s my
gift for you okay make sure that these tools are for you and it’s only powerful
if you utilize it if you use it to your advantage so make sure you guys spend
the time to execute and to actually go through the training and the modules
because it has definitely given me a lot of results once again if you do not put
in the work it would never work for you this is going to be a crazy journey
there’s gonna be ups there’s gonna be downs I know it’s gonna be very very
difficult but I’m committed being in this journey with you I’m gonna
be shooting a lot more videos to show you basically what I’ve done in order
for me to be able to see the success I’m seeing right now and hopefully it would
help one or two of you guys to achieve your own results so you can bring your
family to Bora Bora it’s something that I’m committed in doing all we have to do
is take action make sure you download the documents the templates and use it
to your own advantage okay if you appreciate this video please show me
some love hit the like button make sure you guys subscribe for more videos on
how we can actually make your restaurant much more profitable much more
successful follow along the journey leave me a comment of anything or any
questions that you have in the future

Comments

  1. Hello Wilson, Thank you for your great help , how about the café business? It’s possible to run a café business by one person?

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