Is it in your inherent nature to make people feel welcome? Or are you a good host, and seeing the happy faces of your guests gives you contentment? If you possess these qualities, then definitely you have the potential to be a good restaurant owner and ready to launch food startup.
Wannabe entrepreneurs have vivid aspirations when it comes to their food business. While some aspire to branch out their existing successful restaurant, others may dream of opening a cosy café or just a cost-effective cloud kitchen. Whatever food business you intend to start, there is a significant difference between creating a business blueprint on paper and launching it successfully.
We have already discussed the process of constituting a blueprint of the restaurant business. We will in this article discuss the process of executing this blueprint: –
Tying up with channel partners for launching food start-up: –
A restaurant needs robust channel partners to make the food business a success. Depending on the cuisine and the theme, every restaurant will need a supplier based on their ground realities and challenges.
Below are some of the points you should consider before choosing the supplier: –
Diligent service: –
The channel partner you choose should be prompt in the service. It is advisable to communicate with your vendors the lean and the peak period to help them stock the inventory accordingly.
Procedural know-how: –
Food business logistics deals with a lot of perishable goods. Your supplier needs to know and follow all the mandatory regulations and the safety standards set by the local and government authority.
Alternative vendors: –
Many ingredients of the food business are perishable. Prices of perishable goods vary weekly; hence it’s advisable to have an alternate list of vendors to procure fresh products at the best cost.
Inventory management Solutions: –
Effective food inventory management has become imperative for the modern food business. Inventory management solutions track what stock comes into your restaurant, what inventory leaves your restaurant and what’s leftover. You can manage your suppliers through an effective food management system by reducing wastage and collaborative purchase.
Licences required for a new restaurant business: –
When you start a food business taking all the mandatory permits and government approval are imperative. A failure to follow due process can land you in legal hurdles.
Below are some of the documents required in India for the F&B industry: –
Food licence: –
The food and safety and standard authority of India (FSSAI) issues licences for all the food businesses in India. One can apply for an FSSAI licence either online or offline. On registration, an FSSAI number is given to the food store.
Eating house licence: –
State police commissioner issues the eating house licence. An eating house licence is given to any business establishment which serves food and drinks to the general public.
Liquor licence: –
An establishment intending to serve liquor on their premises need to procure a liquor licence by filing the relevant forms. The local excise commission is the appropriate authority to issue the liquor licence.
Fire department NOC: –
Chief fire officer from the fire department issues the no-objection certificate. The documents required for the same is the building plan, certification from the architect and model of the building.
Shop and establishment registration: –
If the business has more than ten employees, it needs to register under the shop and registration act of the state labour department. This registration is generally valid for five years. Since labour being state subject, the rule varies from state to state
Environment clearance licence is issued by state or city pollution body. The licence is granted on two parameters the type and size of business operation and the impact of the business on the surrounding environment.
Licence for playing music or videos: –
A food business playing pre-recorded music need a public performance licence. This licence is issued by Phonographic performance limited to safeguard the rights of artists who have created the content.
Signage licence: –
A signage licence is issued by the local municipality body. A food business gets this licence to advertise itself by putting any sign, display picture or word.
Procuring finance for food business: –
SME (small-medium enterprise) Loans:-
Banks issues three types of SME loans, i.e., term loan, working capital loan and Asset-based loan. This type of loan requires a guarantor and collateral security.
Government SME loans: –
Along with private banks, government banks also issue SME loans at attractive interest rates. Government banks like SBI, Bank of Baroda etc., issue long term and short-term loans with lower interest rates. Procuring such kinds of loans is difficult as the loan clause is pretty stringent.
Annapurna Scheme: –
Banks can offer women entrepreneurs a loan of around 50,000 rupees to start a catering business. These loans are provided to a business run by individuals or in partnership. A guarantor and collateral security are required to procure such a loan.
Fintech is financial start-ups that provide working capital loans and company loans to small and medium firms. The goals of this company are to make available capital to budding entrepreneurs. Usually, they require minimum documentation and no collaterals. Lendingkart, Capital float and Loan frame are some of the fintech companies.
Launching marketing blueprint for your restaurant business: –
You may open a unique restaurant with a great ambience and food; however, it is useless if you cannot market it effectively. When starting a new food business, you need to delegate a big part of your financial expenditure to marketing. The marketing tactics you implement must reach the targeted audience.
Below are some of the prices highly effective marketing strategies: –
Social media promotions: –
Social media is the in thing of marketing today. Many platforms like Facebook, Instagram, Pinterest and Linkedin have audience attention to make your product a success. As per the nature of your business, select the correct medium and posting engaging content which attracts the maximum attention.
Google listing: –
Google my profile listing is a great way to advertise your business. This platform is free and highly effective for people searching for local businesses. It is vital that your listing is correct and accurate; try to engage the customer to provide ratings and review as this gives you visibility among your potential clients.
Website and food blog:-
Having a food website is like owning digital real estate. Once you have a website, you can start a blog section on your website. A blog is the voice of your brand; you can be in touch with your clients and potentials about new promotions and developments in your restaurant. Blog posts can be shared on social media can help your brand gain traction.
Pamphlet distribution: –
Distribution of pamphlets is a time tested and effective form of offline marketing for the food business. While designing the brochure, you need to decide the components very carefully. The most important part is the menu, highlighting the best selling and the chef recommended dishes. Other vital elements to be highlighted are the contact number, any minimum order restriction for home delivery, the restaurant’s time of operation, etc.
Appointing staff for your food business: –
The restaurant business is a service industry. While we cannot undermine the importance of food, we must not forget that service standards also play an equally important part in your success. Your staff are ambassadors of your brand and the value of your business.
Below are the few essential steps of hiring people: –
Estimated number of personnel required: –
Depending on the floor space and the number of tables, you need to evaluate the exact number of staff needed. Over staffing will cause a financial burden to your business, and understaffing will send a wrong signal to the clients.
Job ads: –
Once you decide on the number of staff required, the next step will be to publish job advertisements. Create an accurate description for each opening, mentioning the duties and the responsibilities; this will help the candidate understand the detailed profile of the job and avoid any unwanted applicants.
Selecting application: –
s you shortlist the application, prepare the questioner you would like to ask the candidates to analyse their candidate skills. Give the prospects a clear idea of the job profile, the perks and the challenges the job may present. This step is significant to limit staff attrition.
A restaurants staff should be a mix of experienced and new team members. Experienced staff is essential to provide leadership and direction to the newcomers. The newcomers can have great potential, and that will grow as your business grow.
Above are some of the steps vital for executing your restaurant business blueprint. We will be posting many more valuable and informative articles for entrepreneurs interested in launching their food business.