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* Rest. Biz 101:
Opening Up Your Own Restaurant
* {By Rick Kouns, the "Restaurant Profit Planner"}

So, you’re a chef, and a mighty good one, perhaps. If you’re thinking about taking the plunge and opening up your own establishment, you should know what you’re getting into. Solid technique in the kitchen does not necessarily translate into success as a restaurateur. Whether you want to open a fine restaurant, family-style establishment, quick-service restaurant (QSR), or even a catering company, you need to be able to make your way through a labyrinth of options and decisions.

Opening your own restaurant is a risky business and certainly not for the faint-hearted. Consider the daunting statistics. Seven out of 10 new establishments will fail before their first anniversary. One out of two will fail before their second year. And 33% of the remaining will shut their doors before their third. With stats like these, why would anyone want to open a restaurant? Well, those restaurateurs who do make it are in a very lucrative position.

So how do you position yourself to succeed as a new restaurateur? There are six major factors that contribute to success. Over the next few months, I’ll address each of these topics individually.

  1. Complete Business Plan
  2. Capital
  3. Type of establishment
  4. Location
  5. Labor
  6. Management