Startup Boot Camp
Kick Starting Success for
California’s Retail, Restaurant
and Service Entrepreneurs!
Day 3 — Restaurant
RESTAURANT BASICS
Goals/Expectations

Concept development

Marketing and vetting the concept

Business planning

Operations

Financials – ANALYZE YOUR COSTS

Legalities

Triple bottom line

Customers and social media

Tools and resources
3
Know Your Concept

It’s all about the market

Visit the competition

Find resources

Choose a practice

Know who your team is

Be realistic
4
Know Your Market

Price, Product, Promotion, Placement

Research everything under the sun

Arm yourself with knowledge

What are you selling?

What are industry trends?

Do you need to adapt your concept to fit the market?

Engage and Educate. Be outgoing

Do you want to start with a catering business or food cart? Here’s an
example of resources for a mobile food businesses:
http://www.sfcartproject.com/
5
Connect To Your Market

Focus on: research, branding, positioning, culture, public relations,
training, design, local store marketing, new store openings, concept
development and restaurant growth strategy.

Build relationships with employees and guests….They are two of
your company’s best assets. “Market between Your Four Walls.”

Once you start to sell in any capacity remember to increase check
averages, increase party size and implement local store marketing.

Form and build partnerships through: Visitor councils, Chambers of
Commerce, networking groups, non-profits, vendors, sports teams,
local festivals and events, community and professional
organizations, officials, schools and churches.
6
Business Planning

You don’t build a house without architectural plans.

Who, what, where, why and how…or:
− Market, operations and financials.

Adapt your concept for your operation?

Financial spreadsheets - forecasting, tracking, saving

Analyze costs before you price your menu

Know your competitors prices but don’t base yours on theirs
Here are two great resources:

− http://www.allfoodbusiness.com/starting_your_own_business.php
− http://www.bplans.com/fast_food_restaurant_business_plan/executive_summary_f
c.php#.UGndv0TGI7t
7
Benefits Of A Business Plan:








Support a loan application
Raise equity funding
Define and fix objectives and programs to achieve those
objectives
Create regular business review and course correction
Define a new business
Define agreements between partners
Set a value on a business for sale or legal purposes
Evaluate a new product line, promotion, or expansion
8
Personnel

Relationships

Job Descriptions

Protocol of Hiring/Separation

Follow-through, incentives

Training

Retention

Open and Honest Communication

Team Development
9
Sample Job Description: Exec. Chef
SUMMARY
This is administrative and supervisory work involving the development
of recipes and menus in a major food establishment. This position
requires a higher skill level and longer work hours than the Chef in the
meal plan area.
Work involves the supervision of special events preparation in
accordance with recipes and menus. Work requires training employees
on the retail side and preparation and inventory control. Activities and
decisions are varied in nature, requiring the solving of both common
and unusual problems. Direction is received from an administrative
superior on matters pertaining to special menus and operating policies.
10
Sample Job Description (cont’d)
DUTIES AND RESPONSIBILITIES








Develops recipes and menus for all retail food operations
Supervises food production
Maintains food cost standards and cost
Promotes safety and proper sanitation
Assists in taking inventory and purchasing supplies
Introduces new products
Acts as replacement worker when short staffed
Handles customers' concerns and suggestions
11
Sample Job Description (cont’d)
DUTIES AND RESPONSIBILITIES (cont’d)









Handles employees' concerns and issues.
Controls food waste by using in proper areas to be distributed daily.
May have full or final responsibility for job actions (e.g., new hires,
promotions, demotions, transfers, discipline, terminations).
Schedules/assigns work.
Sets production goals or job expectations.
Trains, coaches or counsels, directs/coordinates.
Asses performance and completes a formal performance evaluation.
Participates in determination of salary and salary changes.
Other duties as necessary.
12
Sample Job Description (cont’d)
KNOWLEDGE, SKILLS AND ABILITIES







Have a thorough knowledge of the materials, methods, and
equipment used in preparing food on a large scale.
Have considerable knowledge of food preparation and food service
management, methods, and techniques.
Able to work long hours.
Considerable knowledge of food values, nutrition, and menu
planning costs, and uses for leftover food.
Able to plan and modify menus to meet various requirements.
Able to control and manage retail food service operations.
Able to take inventory and keep records of foods used.
13
Sample Job Description Cont.
KNOWLEDGE, SKILLS AND ABILITIES (cont’d)




Must have considerable knowledge of health hazards in food
preparation and service, and of necessary precautionary measures.
Able to supervise the work of others.
Able to prepare working schedules for employees and to instruct
subordinates in food service procedures.
Must be able to maintain a variety of records and to prepare reports.
EDUCATION AND EXPERIENCE

Bachelor's Degree and a minimum of 4 years experience or an
Associate Culinary Degree; Sanitation Certification; Driver's License
14
Work/Life Balance

Continue to define your values

What are the reasons you are a restaurant owner?

Do you know your expenses, your family, your
employees? Your WORTH?

Can you adjust your attitude, coaching, or systems to
grow yourself? How adaptable are you?

Do you have a goal?

Do you take vacations? Do you breathe…A LOT?
15
Financial Acumen

This is THE piece that will make your business die or thrive so know it
inside and out

Draft financial spreadsheet and amend as much as you can:
−
−
−
−
−
−
−
Start-up capital
Weekly Labor Projections
Weekly Food Costs
Weekly Overhead Costs
Daily/weekly Sales Target
Profit and Loss (Years 1-3)
Cash Flow Statements (Years 1-3)

Save your receipts

Reconcile your books as often as you need to stay organized

Hire a bookkeeper or tax accountant if those aren’t within your skill set
16
Financials

Cost analysis

Detailed statements
–
–
–
–
–
–
List of equipment and expenses – COGS
Income Statement – snapshot of time
Profit and Loss
Pro-forma – remember they’re just projections
Generate sales goals
POS
17
Food Cost Spreadsheet
Plate Costing Calculator
#1 General Information
Item
Date
#2 Enter Recipe Data
Yield
16
Recipe
Quantity
Ingredients
Unit/LB/OZ
Procedure
Unit Cost Purchase Unit
% Yield
Conversion
Actual Unit
Cost
Extension
Oz.
$
-
LB
$
-
$
-
$
-
$
-
Oz.
$
-
Oz.
$
-
Oz.
$
-
Oz.
$
-
Oz.
$
-
LB
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
$
-
-
$
-
$
-
-
$
-
$
-
$
-
$
-
Total Cost of Item
$
-
Cost per Serving
$
-
Total Cost of Recipe
Waste (10%)
10%
#3 Plate Costing & Menu Pricing
Cost Per Serving
$
-
$
-
Plate Cost Calculation
Portion Cost of This Recipe
Target Food Cost
23.0%
Menu Price at Target
$
-
Current Menu Price
$
3.25
0.0%
Current Food Cost
Condiment: Portion Cost
$
-
Side Dish: Portion Cost
$
-
$
-
Cover Cost
Total Plate Cost
Mark Up Per Plate
$
-
Cost Plus Plate Cost
$
-
Gross Margin
Markup
100.0%
#DIV/0!
18
Cash Flow Analysis
19
Access To Capital

Typical loans are difficult to attain for food businesses.

Most investors want to see a significant growth rate.

Ask friends and family with money. Set terms and PAY
THEM BACK. Boot strap.

Remember that there’s always a way.

Plan properly, take risks, be brave, sell with confidence.
20
Taxes

Know how much money to save and SAVE IT…if you
don’t it can be detrimental

Taxes – better to pay consistently

Hire or at least speak to an accountant and/or
bookkeeper

Visit www.irs.gov, www.sba.gov for more information
21
Opening Your Restaurant

Set Realistic Goals.

Timelines, costs, course of action, etc.

Know what is needed in your kitchen to succeed.

Understand the working hours.

Always know your costs.

Enjoy it!

Go here for downloadable version:
http://www.foodserviceresource.com/PreOpeningChecklist.html
22
Customers And Social Media

Always keep the focus on your people, they are your company.

Use social media to create a following.

Regular updates allow you to control information, reinforce brand
recognition and encourage conversation.

Encourage your employees to take an interest in the whole
business, not just their individual part…create a real team effort.

Marketing and sales should emphasize your employees too, not just
your product. When morale is high and employees care about the
business, sales will increase. They are your best sales asset!
23
All About The Food

It’s all about the food - consistency, price, taste, quality..

Use portion control to maintain consistency and costs.

Tend to safety and sanitation principals and guidelines. Check out Food
Safety sites for your county and state: http://www.foodsafety.gov/.

Create a recipe book to help analyze costs, train staff and produce a
consistent product.

ALWAYS make sure it tastes good. Make sure your chefs taste the food.

Don’t raise your prices unless you absolutely have to.

Let the customers tell you what the best thing ever is.
24
Trends and Innovative Ideas

Explore a triple-bottom-line concept - an important set of values and criteria
for measuring organizational and societal success: economic, ecological
and social

Environmental impact especially as it relates to $.

Buy local and seasonal – better quality, price and supports local economy.

Waste management practices – compost, recycling.

Product utilization.

Community involvement - as it pertains to cross-marketing, great PR and
lasting partnerships.

Consider future generations.
25
It’s All What You Make It

Understand your ingredients, who you source from. Be picky!

Finish your business plan. Revisit semi-annually.

Have a financial cushion. PAY YOURSELF.

Recommend a minimum of 12-24 months of savings.

Adapt to your market. Always be willing to adjust your vision. It’s
never what you think.

Self-evaluate to ensure you are maintaining your core vision.

Stay Positive!
26
Internal $ Saving Strategies

Recipe and Menu Pricing – Have you done this and do
you have recipes and costs for each dish that you
adhere to?

Recipe books - Consistency with Product

All products are tracked with portion control and waste
logs

Use local and seasonal food and vendors

Retaining staff
27
Staying Current

Have your pulse on trends and innovative ideas

Subscribe to industry magazines and read blogs, books
and tweets

Get out in the field at least one day a week and talk to
customers and potential customers; network.

Don’t be afraid to make change while keeping brand
integrity

Volunteer, good things can come from it
28
Systems – Create/Use Them

Financial spreadsheets, bookkeeping

Personnel procedures/protocol - prep and clean-up lists

Customer and marketing tracking

POS - food costing, inventory management, profit & loss,
cash flow, payroll
29
Resources

Add in web site or www.asbdc.org

Taxes: www.irsvideos.gov/virtualworkshop/

Governor's Office of Business and Economic Development http://business.ca.gov/StartaBusiness.aspx

Permits and licenses - www.calgold.ca.gov

One listing of useful resources -http://www.lacocinasf.org/resources/
30