Abraham Zaiderman is a respected restaurant and franchise owners in the United States and the world. He is the founder of Abraham Zaiderman Consulting. His experience spans over 30 years and includes restaurant franchising, restaurant setup and financing, and other topics.
Abraham Zaiderman offers some sound advice for start-up restaurants and anyone else wanting to get into the food services business. Here are four of his most important tips that he shared with start-ups in the restaurant business. According to a study conducted by Ohio State University, the restaurant failure rate is closer to one out of four, or 26 percent, in the first year, with lower failure rates in subsequent years); and among franchised chains, the cumulative failure rate was 57 percent during the first three years and 61 percent for independent restaurants.
1. Set your financial plan.
Zaiderman stresses the need for planning regarding expenditures. You cannot afford to overextend, and he advises startups to purchase the equipment that they can afford, or consider leasing equipment with an option to purchase or at least consider leasing until your business has reached profitability. Once you get established, and your business becomes profitable, you can afford to spend more on expansions and new equipment.
2. Consider your current status and create a plan for growth.
It is important for new restaurants always to take account of their current financial situation. Knowing what you can afford will help to keep a close check on expenses. At the same time, you should always be looking forward as to how best to expand to increase your profit and ROI.
3. Create a cost-benefit analysis.
Creating a cost-benefit analysis will enable a restaurant franchise owner to look at things from a profit-loss perspective. You should never invest more than you can afford and still keep the normal operations of your restaurant going. Consider the bottom line and consider only those additions that will make you profitable.
4. Stay in compliance with local, state, and federal regulations.
It is important that you comply with all regulations on the local, state, and federal levels. Failure to do so can result in hefty fees, or you could lose your food services license as a result. This can be too costly to risk, so make sure that you are familiar with the regulations of running a restaurant business and follow all regulations intently.
Aside from the financial considerations, Zaiderman recommends that you choose a good location for your restaurant, choose food items that are popular with your target audience and that you plan everything in detail so that you will know that you are on target to reach your goals.
Abraham Zaiderman has a lot of experience with franchising too and offers some consulting and franchise advice through his main site.
The restaurant business is a tricky one. The key to success is in careful planning, allocation of funds, and having a solid growth plan that you can stick to over time. You have to start small and grow as you work on increasing your return on investment through smart business decisions and frugal business practices.
Having enough food storage with waste is also a concern for restaurant business owners. You need to learn to predict how much food you will need to keep on a weekly basis that you will be able to sell without it going bad. Waste in the food business is one of the biggest killers of a restaurant business.
It’s a good idea to learn from the masters when it comes to starting a business in the food industry. It’s not easy, but by using the tips and tricks of a maestro like Abraham Zaiderman, you may be on your way to success.
Using your resources that are available to you, you can create a successful restaurant or fast food business that continues to pay off over time. Nothing comes easy, and success does not happen overnight. But plan well and follow these helpful tips from Zaiderman to start your journey.