Экономические науки/6.Маркетинг и менеджмент.

Kuchina M.U.

Vlasova I.A.

Donetsk state university of economics and trade

after Michael Tugan-Baranovsky, Ukraine

RESTAURANT BUSINESSES

If you have been hunting for businesses for sale, you have probably noticed that there are more restaurants for sale than any other business. Why are restaurants one of the most popular businesses on sale? It may be because there is a big market for restaurants. Or it may that these restaurants are being sold by their owners because they are not bringing in enough money to stay afloat. Actually, both reasons are right.

There is indeed a big demand for restaurants, especially good ones. However, there is also a high failure rate in the restaurant business, and many restaurateurs want to sell their business before it fails. If you are planning to become a restaurant owner, you must consider a number of issues such as these.

There are many options when starting a restaurant business. You can purchase an existing restaurant, buy a franchise or open your own new restaurant. If you decide to buy an existing restaurant business, there are a number of sources where you can look for the right investment opportunity. You can find ads in your local newspaper, magazines and even on the Internet. You can also opt to use the services of a business broker to help you arrange the purchase of a restaurant.

Franchising is an effective way of accumulating wealth. It allows a businessman with enough capital the benefits that come along with acquiring a franchise such as its proven system of success and its brand name that has gained recognition from millions of people. It doesn?t mean that since one franchise in another area works well, yours will too. It takes more than that. Your franchise plan should be well financed, carefully thought out, and properly managed to be successful.

Generally, there are many available restaurant franchises, and all you need to do is select the best, one that would meet your standards and fit your wants for a business. Nonetheless, they all have similar features. First, food isn't prepared until it is ordered. The ingredients are already stored in advance for faster preparation. Moreover, food isn't cooked all together and takes about thirty to forty-five minutes before it can finally be served. Another significant feature is its consistency. The menu items still possess their own distinctive tastes and flavors even if the same procedures are employed. In terms of investment, you might need a very high startup capital, which includes the restaurant layout and system that is almost always similar to the rest of the restaurant franchises.

One of the biggest sources of franchising revenues come from fast food franchising. This is because fast food patrons have grown. In fact, studies show that they allocate a bigger chunk of their money on such kinds of food rather than on cars, personal computers, electronic devices, movies, or even education. One of the biggest sources of franchising revenues come from fast food franchising. This is because fast food patrons have grown. In fact, studies show that they allocate a bigger chunk of their money on such kinds of food rather than on cars, personal computers, electronic devices, movies, or even education. This might be because the eating habits of Americans have changed. Their dietary needs have revolutionized as many go for hamburgers, French fries, hot dogs, and sandwiches sold at fast food restaurants.

Among the many features of fast food franchising, the most prominent is its quick service. That is why it is also called a quick-service restaurant. Foods on the menu are specially formulated so they can be cooked at the least possible time, usually five to fifteen minutes. They are usually cooked in advance and in bulk but kept hot or otherwise reheated whenever ordered. Most fast food restaurants are part of fast food chains. There is a uniform way of doing things that constitute its overall management and operation. Aside from the usual diner where you can sit awhile, most of the restaurants have drive-throughs or take-out counters, which also speed up food service. Starting a restaurant business and more relevantly starting your own restaurant is a massive undertaking. In fact, size is little guide to how much hassle you are going to have, except in the largest restaurants (100+ covers) where things can become very tricky indeed.

Before starting your own restaurant business it is worth considering a small list of points. These are things we've seen every new restaurant owner struggle with.

Never under budget. In our own experience most people starting a restaurant business spend the most money on refurbishment, then they overstaff during the opening period but they don't spend enough on marketing, management or on a quality menu. This keeps turnover low and customer loyalty low which means business for the restaurant is tough from the start. You need to allocate at least 3% of your projected turnover for marketing.

Forget its your own restaurant business and play the hard nosed customer. Ask your self constantly; Why should anyone come to my restaurant? Why would anyone pay these prices? How can I show my restaurant is different? Do enough people know we are open for business? Do I really understand generating good profits in the restaurant business? From starting a restaurant until the day it generates good cash profits you can never be too harsh on every aspect of the business.

Restaurant businesses need a great location. Before starting a restaurant, or more likely taking over an existing restaurant business, you need to take a guided tour of the location or choice of locations. Your guide should be anyone that knows the area intimately and eats out regularly in restaurants. Analysing this, BEFORE you open and looking at the local competition is essential. The restaurant business varies enourmously from site to site.

More than any other factor, your location will affect your cash flow. Remember also that the worse the location the more you must spend on marketing and the better your food, ambience and service have to be. Starting a restaurant by saving money and getting a poor location, starting with a cheap offering and spending very little on marketing is a recipe for disaster.

A restaurant business can be very lucrative. But, at the same time, it can be a huge risk. There may be many restaurants for sale. However, a lot of them have problems. It will definitely take experience and good business acumen to succeed and make a profit in the restaurant business. So before you check out any restaurant businesses for sale, you first need to learn the basics of how to start a restaurant.