Anyone in the restaurant business?
Discussion
Hope you can help. I've been asked to do a business plan for a friend who has grand designs for a themed restaurant chain franchise model. Starting with one test venue then hopefully building on that.
I know abslutely nothing about the restaurant business (only about finance and service), and my immediate concerns are these:
1. Is there an optimum number of seats per area (in terms of maximising the revenue but not being cramped)?
2. Is there an optimum number of serving staff per area?
3. Is there an optimum or minimum kitchen staff number per area?
What other things do I need to know?
Many thanks
I know abslutely nothing about the restaurant business (only about finance and service), and my immediate concerns are these:
1. Is there an optimum number of seats per area (in terms of maximising the revenue but not being cramped)?
2. Is there an optimum number of serving staff per area?
3. Is there an optimum or minimum kitchen staff number per area?
What other things do I need to know?
Many thanks
Erm, in the nicest possible way, are you the right person for your friend to choose to write his business plan?
I have some experience of the catering industry but not of running a restaurant per se, but I do know it's an easy way to lose quite a lot of money. You really need to know what you are doing before diving on in.
Oli.
I have some experience of the catering industry but not of running a restaurant per se, but I do know it's an easy way to lose quite a lot of money. You really need to know what you are doing before diving on in.
Oli.
OK, from one person with no experience to another person with no experience (, backatcha!) I doubt there is a hard-and-fast answer to your questions. The restaurant business is huge and varied. People per Sq.Ft of space? Depends upon whether you are running McDonalds or The Ivy (although McD's is not the tightest-packed place around here!) Serving staff? Much the same, as McD's doesn't serve tables (they have staff to clear them) and somewhere high-end will have one member of staff for every two tables or so. Same again goes for the kitchen staff, and what you are trying to achieve. Pizza hut? One person knocking out as many pizzas as possible in as short a time as possible, and one other person making salads/wedges/desserts (if they do desserts.) Somewhere like Ducasse at the Dorchester? A chef, several sous-chefs, a couple of pastry chefs, a dessert chef or two and several kitchen hands. They are trying to achieve something totally different to each other, and will staff up accordingly. And that's without consideration for the menu planning, ordering and catering side of things.
I think the questions you are asking will not have clear-cut answers without more detail being added.
Oli.
, backatcha!) I doubt there is a hard-and-fast answer to your questions. The restaurant business is huge and varied. People per Sq.Ft of space? Depends upon whether you are running McDonalds or The Ivy (although McD's is not the tightest-packed place around here!) Serving staff? Much the same, as McD's doesn't serve tables (they have staff to clear them) and somewhere high-end will have one member of staff for every two tables or so. Same again goes for the kitchen staff, and what you are trying to achieve. Pizza hut? One person knocking out as many pizzas as possible in as short a time as possible, and one other person making salads/wedges/desserts (if they do desserts.) Somewhere like Ducasse at the Dorchester? A chef, several sous-chefs, a couple of pastry chefs, a dessert chef or two and several kitchen hands. They are trying to achieve something totally different to each other, and will staff up accordingly. And that's without consideration for the menu planning, ordering and catering side of things. I think the questions you are asking will not have clear-cut answers without more detail being added.
Oli.
TDIPLC said:
Hope you can help. I've been asked to do a business plan for a friend who has grand designs for a themed restaurant chain franchise model. Starting with one test venue then hopefully building on that.
I know abslutely nothing about the restaurant business (only about finance and service), and my immediate concerns are these:
1. Is there an optimum number of seats per area (in terms of maximising the revenue but not being cramped)?
2. Is there an optimum number of serving staff per area?
3. Is there an optimum or minimum kitchen staff number per area?
What other things do I need to know?
Many thanks
Many years ago I helped set up restaurants for one of the fastest growing chains the UK has ever seen.I know abslutely nothing about the restaurant business (only about finance and service), and my immediate concerns are these:
1. Is there an optimum number of seats per area (in terms of maximising the revenue but not being cramped)?
2. Is there an optimum number of serving staff per area?
3. Is there an optimum or minimum kitchen staff number per area?
What other things do I need to know?
Many thanks
I've been asked to do a business plan for a friend who has grand designs for a themed restaurant chain franchise model. Starting with one test venue then hopefully building on that. Franchises work at the Mc D's and Chicoland level, any further up the food chain so to speak will give you serious "brand management" issues. I also do not see what value a franchise has fro ma new offering?
1. Is there an optimum number of seats per area (in terms of maximising the revenue but not being cramped)? This varies from outlet to outlet, and is dependent on your concept. Density of seating is not always that relevant, we used to have outlets that operated "wait lists" on a Fri/ Sat night with lower cover density, as that is what worked at that location. Others had much higher seating density but never really operated at 100%.
[i]2. Is there an optimum number of serving staff per area?
3. Is there an optimum or minimum kitchen staff number per area?[/i]
That is a completely wrong headed way of looking at labour in a retail catering environment. I would measure staffing costs against turnover, not against floor area.
What other things do I need to know? Don't take this the wrong way, but should the person who's concept this is not have a basic understanding of the business, ie what staffing levels are needed to operate it?
You're asking the wrong questions...
1. How many bums am I likely to get onto seats?
2. Given the cost of the items on the menu and drinks, what is my predicted turnover from those guests?
3. What are my fixed overheads?
4. What is the profit margin on the food/beverages being sold?
5. What is my net profit?
6. How many staff can I afford to employ?
Edit to add, more importantly:
7. Based on the above, is the venture viable?
1. How many bums am I likely to get onto seats?
2. Given the cost of the items on the menu and drinks, what is my predicted turnover from those guests?
3. What are my fixed overheads?
4. What is the profit margin on the food/beverages being sold?
5. What is my net profit?
6. How many staff can I afford to employ?
Edit to add, more importantly:
7. Based on the above, is the venture viable?
Aside from the simple costs and knowledge of running the business itself, the property will likely also be an issue. Good premesis in the right location with the correct zoning - A3? - are often hard to come by and can have fairly big - easily six figure - premiums attached to getting the lease.
jonnydm said:
Aside from the simple costs and knowledge of running the business itself, the property will likely also be an issue. Good premesis in the right location with the correct zoning - A3? - are often hard to come by and can have fairly big - easily six figure - premiums attached to getting the lease.
Yes and the council can easily change the footfall and direction of the shoppers at a whim with new developments. Not to mention areas seem to go out of fashion in towns quite easily now. Everything, literally everything can be perfect in a new restaurant and it can still fail. Definately a game of high stakes Gassing Station | Business | Top of Page | What's New | My Stuff