What Makes a Restaurant & Bar Business Successful?

That is a very common question, and to be honest, there isn't a straightforward answer. This is because the restaurant business is affected by many different factors, which are all equally important.

You may be wondering if it really is that difficult to open a restaurant. I've had many people approach me and ask me the same thing. Personally, opening a restaurant itself is not difficult, BUT opening a successful restaurant is really difficult.

Recently, there was a new restaurant that opened on the same street as mine. They opened in September 2021, and then completely shut down several months later in January 2022. While they were still open (November), my friend and I actually visited them. As soon as we walked in, we both looked at each other and immediately knew they weren't going to last long. We were sure that they wouldn't survive beyond the 18-month mark - it took them only 5 months.

I'm not trying to say that after you read my blog you will 100% be able to have a successful restaurant business. However, I am sure that it will help reduce your chances of making lethal mistakes.

Before going any further, I would like you to understand just how important "alignment" is. Most people look at businesses in 2D - they see tables, chairs, food and service. What they can't see is that all these aspects must be aligned with each other behind the scenes. For instance, it's not just about the width and the height. It's about using alignment to create DEPTH as well.

So how do I make sure my business is aligned?

I believe it revolves around these 3 important elements:

1. Business Strategy (Business Plan)

2. Operation/Strategy Management (Execution)

3. Entrepreneur Mindset (Leadership)

Business Strategy includes:

USP (unique selling point), Trend, Marketing/Branding Plan, Product selection, Skill assessment, Operational style, Target audience, company structure planning, supplier planning, Financial/forecast and budget planning, short terms and long terms goals, GP benchmark, Technology involvement, Team selection, Location research, Product line design, Value chain design from top to bottom, Vision and mission statement, SWOT Analysis, legal advice.

Operation/Strategy Management includes:

HRM (employees and company), Restaurant trading system, Product standardisation, Customers services procedure, Financial report, Money handling, Stock/SKU report, New product development, Marketing reviews/content creation, maintenance/facility update, Admin update, Employee communication platform control, Department structure and communication, Management Optimisation/meeting, 3rd party platform review, Alignment control.

Entrepreneur Mindset includes:

Leadership skills, Persuasive communication ability, Delegation skills, Team Motivation skills, Conflict Management, Accurate decision making, Goal setting and planning, Continuous building and development, Learning ability, Pressure handling ability, Self-confidence, Public speaking ability.

All the points above are what I believe makes a restaurant & bar business successful. I know what you're thinking... some of the words above make no sense, and you may have never even heard of them. I get it, I understand... I was the same.

I dropped out of school when I was 16 - I hadn't even completed high school. When I was that young, I had no idea that running or opening a business was that complicated.

I went on to start my first business in 2008. I worked 7 days a week, from morning to night. I never took a day off, besides 2 days, that whole year. Even though I didn't have my business knowledge, I just did everything I could to make my customers happy. I guess you could say I was very lucky compared to a lot of people as I managed to keep my business afloat - however, it took a lot of hard work and determination (plus, some silly mistakes along the way).

Some of the areas above might take you a months to get good at, some may take a minimum of 5 years, and others even 10-15 years!

You may not become a master in all areas because everyone has their strengths and weaknesses, but having a certain amount of knowledge about each area is essential. That way, you will be able to spot what is missing and what changes are to be made to fix any problems.

That said, I have 2 words for you - "keep going".

As long as you continue to learn new skills and educate yourself, you will be closer and closer to achieving and maintaining a successful restaurant and bar business.

Especially in the 21st century... If we do not keep up, we will easily fall behind.

Wing