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by Elizabeth Keyser, Jody Pennette
Starting and Running a Restaurant
Cover
Title Page
Copyright Page
Introduction
Part 1: An Introduction to the Restaurant Business
1 Why Open a Restaurant?
Why Should You Start a Restaurant?
Right Brain vs. Left Brain
Personal Qualities
Time Commitment
Doing It for the Money
Achieving Success
You Can Do It!
2 Defining Your Market Relevancy
Market Relevancy
Competition
Relevancy Is Local
Learning from Mistakes
Matching Genre to Market
More Lessons
Takeout
Adapting to the Market
Market Research
Official Story
Market Bandwidth
Good Enough to Steal
3 Distilling Your Concept
The Concept
Creating Your Mission Statement
Food
Service Style
Your Special Approach
Your Customers
Product Value
Tonight, Let’s Have …
Guest Experience
Making Money
Common Good
Your Mission Statement, Draft 1
Creating a Storyboard
Your Name
Great Names
Signage
Name Rights
Concept Statement
4 Licenses and Legalities
Know Your Local Liquor License Laws
Fee-based and Commodity Licensing Model
Classifications
Streamlining the Permit Process
Health Codes
Historic Properties
ADA Requirements
Local Zoning, Building, Fire, and Health Departments
Permit Expeditors
Structuring Your Business Enterprise
Federal Tax ID
The Taxman Cometh
Withholding
Insurance
Be Honest
Part 2: Building Your Restaurant’s Foundation
5 Creating a Solid Business Plan
Setting Your Capital Budget
The Operating Budget: Your Moneymaking Plan
Food and Liquor Profit Formula
Testing Food Cost Profits
Managing Labor Costs
Overhead: The Unknown Enemy
Putting Your Business Plan Together
Cover Page
Table of Contents (TOC)
Executive Summary
Business Concept
Market Analysis
Management Plan and Organizational Plan
Marketing Plan
Financials
Start-Up Cost Projections
Pro-forma Income Statement
Timeline/Growth Plan
Contact Page
6 Choosing a Location
Find a Site Relevant to Your Market and Concept First
Concept
The Relationship between Concept, Location, and Rent
Genre and Location
How Important Is Parking?
Valet Parking
Can Your Concept Make Money in This Space?
Breakeven
The Waterfall Effect
7 Negotiating Your Lease
Should You Lease or Buy?
Working with Real Estate Brokers
The Ins and Outs of Commercial Leases
Terms to Know
Negotiating Points
Other Incentive
Condition of the Space
New Construction
Existing Space
Rent Abatement
8 Finding Your Cash
Where Do You Find Your Cash?
Private Equity Funding Formula
Managing Investor Freebies
Family Funds
Responsible Selling
Crowdfunding
Leasing Equipment
Financing Traps to Avoid
Cash for Credit Card Receipts
Personal Lines of Credit
Built-in Credit
Sales and Payroll Tax Trap
Setting Up a Bank Account
Part 3: Setting Up Your Restaurant
9 Composing Your Menu
Your Menu’s Story
Setting Your Working Menu
Balance
One, Two, Three
Food Choices
Beverages
Refining Your Menu
Yield Tests
Refining Dishes for Plating
Real-Time Testing
Tasting with Stakeholders
The Physical Menu
Words
Accuracy
Ethnic and Foreign Words
Language Style
Menu Design
Readability
Nutrition Claims and Calorie Counts
10 Designing the Front of the House
Bringing Your Restaurant Concept to Life
Paint
Private Dining Rooms
Host/Hostess Stand
Seating and Tables
Communal Tables
Sound Dampening
Curtains
Tabletop
Flowers and Candles
Plants
Sculpture and Art
Restrooms
Outdoor Seating
Lighting
Server Stations
Takeout
11 Setting Up Your Bar and Beverage Systems
The Bar as Marketing Tool
Bottle Placement
Eat-In Bars
Couture Cocktails
Bar Seating
Bar Tools
Ice Cubes
Your Coffee, Tea, and Soft Drinks Setup
Coffee and Specialty Drinks
Cold Beverages
12 Laying Out the Back of the House
Working Space
The Kitchen
Cold Prep
Pastry
Prep
Economies of Scale
Storage Space
Dishwashing
Staff Area
The Office
Advisors
13 Restaurant Maintenance
Cleaning
Training Staff in Cleaning 101
Using Your Waiters
Votives and Vases
Working Neat
Checklists
BOH Cleaning
Exterminators
Maintenance
Heating, Ventilating, and Air Conditioning
Plumbers
Handyman
Knives
Appliance Repair
Do Not Attempt!
Finding Good Tradespeople
Grease Traps
Fire Prevention
Sidewalks/Entrances/Parking Lots
Décor and Furnishings
Part 4: An Owner’s Role in Management
14 Hiring Your Staff
Looking for the Right Qualities
Restaurant People
The Chef
Sous Chef and Line Cooks
Expediting
How to Find Your Staff
Job Advertising
Chef Tests
Manager Tests
Job Descriptions
15 Purchasing Supplies
Finding Your Suppliers
Specialty Products
Beware the Salesman
Liquor Discounts
Budget
Delivery
Delivery Schedules
Contracts and Negotiations
Hidden Inventory Costs
Stealing
16 Running Your Office
Cash Control Systems
How to Make the POS System Your Best Friend
Adapting Your POS to Your Business
Handling Voids
Self Banking
Keeping Your Bartender Honest
Cameras Can Be a Theft Deterrent
Financial Statements
Calculating Percentage Change
The Income Statement
Balance Sheet
Cash Flow Statement
Paying Taxes
17 Understanding Costs
Food and Beverage Costs
Inventory Template
Waste Not
Food Costs to Sales Percentage
Inventory
Liquor Inventory
Perpetual Bottle-for-Bottle Inventory
Incoming: Watching Your Purchases
Food and Beverage Sales Mix
Operating Costs
Paying Your Employees
18 Beginning Your Marketing Blitz
The Opening Party
Invitations
Picking the Grand Opening Date
What Time?
Guest List
Party Rules
Preparing for the Opening
Parting Gifts
The “Dusty Shoe”
The Soft Opening
Service and Marketing
Getting the Word Out
Handling Reviews
Understanding Online Reviews
Managing Online Reviews
Online Presence
Part 5: Running Your Restaurant
19 Fostering a Culture of Hospitality
Making New Friends
The Basics of Hospitality
Read Your Guests
Contemporary Culture of Hospitality
Hospitality Begins with the Host
Teamwork and Hospitality
Tailoring the Steps of Service
Dealing with Difficulties
Tracking Comps
Points of Service
Always Meet and Exceed Expectations
20 Running a Safe Restaurant
Health and Safety Codes
Training Staff in Health and Safety
Personal Hygiene
Hair
Hand-Washing 101
Employee Health
Cross Contamination
Preventing Foodborne Illness
Vermin
Safety Precautions
Preventing Burns
Worker Violence
Heat Exhaustion
Keeping It Clean
Bar Safety
Open Kitchens
21 Managing and Training Your Employees
Training Staff
Certification
Trailing
Wine Training
Dining Room Demeanor
Dress Rehearsal: The Friends & Family Meal
Motivating Your Employees
Drug Testing
Terminating Employees
Dealing with Turnover
Creating a Family
22 Growing Your Business
Growing Your Business
Marketing Milestones
Traditional Marketing
Websites
Facebook
Blogger/Press Dinners
Charity Events
Wear Success Graciously
Reservations
Managing Waiting Guests
Pre-Service Meeting
Online Coupons
Stay True
Appendixes
A Glossary
B Resources
C Preopening Checklists: The Critical Path
D Operational Checklists and Forms
About the Author
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