Whether you are running a billion dollar restaurant enterprise or embarking upon a first entrepreneurial venture, the fundamentals that define restaurant business success are strikingly similar.
Concept positioning, funding, economics, real estate, people, marketing and execution are all
key components
that play pivotal roles in determining the ultimate outcome. Evaluating the pertinent
attributes of each component is the first step in composing an effective and comprehensive strategy during any point in the business cycle from start-up to growth and through mature stability.
Consumer appeal is largely a function of cuisine, value proposition, location and the ability to execute with guest counts being the ultimate benchmark of success. The capacity to create consumer
frequency and capture check average relative to fixed financial obligations and operating costs is central to a concept's viability and portability. It also governs the affordability of real estate
which, in turn, defines the footprint and demographics, particularly day-part population densities and incomes. In addition, as trade areas mature, competitive “food destination” areas emerge and the
cost of driving new trial escalates, the inherent ability to remain relevant is crucial. A compelling business model will address all of these factors.
Creating, re-positioning or reorganizing a concept necessitates an effective evaluation comprised of investment, operations, menu, real estate and facility assessments.
The right debt, location,
lease
, decor, equipment, management, staffing, training, products, pricing, margins, service flow, experience pace and marketing all need to be taken into account.
