Friday, April 26, 2019

Best ways to Start a Profitable Restaurant Business

Bakery business is one the lucrative businesses all around the world today. With a nation’s population increasing by millions, it shows that people will continually eat and it will be your business to provide the needed meal. Bread is one of the choice fast foods of people across the globe and in Nigeria, its demand is never in short supply. In Nigeria, for example, the amount of people who consume bread on a daily basis proves that the bakery industry is a profitable industry. In this article, you will have the knowledge needed to start up and maintain a profitable bakery business.
High Demand For Bakery Product

Bread as an example of bakery products is a good source of carbohydrates, proteins, and vitamins. Because it has such high nutritional value, it is widely consumed by almost everyone on this planet. For a very long time consumption of bread has been a necessity for human diets and as continuously yielded an increase in consumption over the years. This proves that the market is wide open for anyone to venture into as one can invest in opening a modern bakery to provide the highest in demand bread for consumers.

Nigeria with a large population consumes a lot of bread with locally made meals such as bean cakes, pap, beans etc. Another fraction of the population may require catering services for parties and wedding to provide snacks and pastries etc. However before you launch into the business, there are some few things you must note
Find Mentors Before You Commence Bakery Business

Search for mentors before you start your bakery business as mentors will easily provide you with solutions to difficulties in the business, provide ideas, tips and information necessary to having a successful bakery business. These mentors will serve as a guide to instruct you on among other things the necessary equipment needed, how to get your license, strategies and branding ideas to selling your bread, etc.


The bakery as a highly lucrative business

Nigerian loves baked foods such as the regular “puff puff”, Agege bread, small chops and so on. With all these, there’s is still a huge market to attract as baking has no limitations in terms of age, religion etc. If you can create a creative branding strategy you will definitely find it profitable by the end of the month.

With the huge population in Nigeria, it’s very easy to say every baker is a millionaire if they get to sell to about one million people in the open market in a day. But baking doesn’t grow in such large fashion in a day but requires adequate time in branding and improving on providing crocrowd-pleasing delicious meals at an affordable price and quick accessibility in order to increase sales.

See: How to Start A Successful Farming Business in Nigeria

If you have an intention of baking or you have started your baking business, here are the ways to make it profitable:
Market Survey

Do a proper survey or research to inquire about the demand presently in the market regarding baking products which other bakeries do not offer. In this survey, you can also find out if there is a customer relationship between the producer and the consumer. In this survey y,ou can state what the customer’s demands are and position your business in such a way that meet such demands.
Source for Start-up Capital

Whatever you discover from the demands in the market will affect the budget of your start-up capital and this could be more than your initial budget.
Source for Start-up Capital

The high demand which you have discovered in the market for a particular product will affect the amount of start-up capital you need to start the business.

Furthermore, your start-up capital will determine the materials you would need, the equipment you should buy, your business size, etc. All these would be drawn up into the estimated amount of what to you need to get your business up and running.
Have a Business Plan

The business plan enables you to draw out strategies to be used in the business such analyzing your start-up capital which has been estimated from your feasibility reports, where you want to get your capital from – this could be a loan, from your savings or assistance from family and friends.

This business plan will show marketing and branding strategies to be used to promote your brand, number of staff you need, equipment etc. It is important to start a business with a proper business plan.
Buy Necessary Bakery Equipment

Purchasing the right and necessary equipment is very important. Buying the right equipment depends on the level at which you want to startup the business such as the size of the bakery, capital and so on. Here is the list of equipment needed for a bakery business: mixers, dough molder, large tables, bread pans, display shelves, water proof wrapping sheets, oven, bread slicer, van for delivery and so on.

Proper installation and maintenance should be given to the skilled technicians to monitor and control.
Baking Materials

The major materials needed for baking are baking flour, baking soda, butter flavors, water and so on.
Get Approval from Government and Regulatory Bodies

If the law requires any form of payment to a regulatory body, kindly comply and pay every necessary dues and get your government approval and license, in order to carry out your business smoothly.
Get a Good Location

Find a good location that will promote sales. Location close to the buyers will improve sales on a regular basis which will mean constant production that will keep you in business. Without demand, there would be no business therefore get a place with enough traffic to keep yourself ib business.
Safety of Lives and Property

Nigerians have no regards about this matter, they rely more on spiritual matters when asked to get insurance. It is important to note that safety of lives and property is as important as the sales you want to make. Therefore, fix every necessary gadget or appliance for preventing major disaster to your establishment.
Recruit the Best Staff

After your business plan, your staff are also important, therefore, make sure you recruit the best hands with relevant experiences on the job. The recruited staff should not be bakers only but also individuals who understand marketing and distribution in order to promote sales.

See also: Establishing a Profit-Making Fish Farming Business
How is Bakery Business Profitable?

Bakery business is profitable if you start up with the right capital, inculcate and promote good customer relations, have the right team working with you; that is a team that understands the level of business and so on and so forth.

To venture into the profit side of the business, take note of the following:
Bakery Products Sales and Distribution:

If your product has the right branding and it’s properly packaged with a delicious taste, people will buy it.

Make sure that your products are fresh and attractive fonts or images pleasing to the consumer eyes.

Your distributors can include wholesalers, retailers as they bring your products closer to the consumers
Offer Trainings

You can offer training to a number of persons and charge from as low as 20,000 Naira and if you have 10 students, that’s 200,000 Naira. This student can also help in production of more products after completing the training.
Offer Event Catering Services

This is the most popular avenue used to make money in Nigeria. A lot of event are usually held on weekly basis and most of them require services of bakers to provide them some tasty meals.

For example a wedding cake costs about 50,000 to 500,000 Naira depending on the number of tiers and decoration. This is also similar to small chops which can be priced at 500 Naira per guests. If your production and packaging is top notch you will get referrals and lots of events will be needing more of your services.
Go on TV Shows

You could have the opportunity to host your personal baking show on TV which could bring more sponsorship deals and brand endorsement, creating a total uniqueness to your brand.

To get to this platform, you must be ready to invest all, that is your time, money and so on but at the end it’s definitely profitable.

Be very open to criticism so you can correct mistakes and do not allow anyone tell you it can’t be done, constantly press on to be better on every side. Turn your business into a money making venture. Everyone eats because it is a necessity for survival and without food, a person can starve and die. In most cities in Nigeria, the majority of the people are more concerned about making money, with no time to cook thereby relying on food vendors like restaurants and roadside canteens to meet their food needs. These have opened a lot of opportunities for individuals who want to invest in the restaurant business to make huge profits off the business.

In this article, you will get to learn what starting a profitable restaurant in Nigeria entails, as well as the tips to becoming a successful restaurant owner.
Steps to Starting a Profitable Restaurant Business

If a restaurant will make any profit from this business, the following factors or steps must be considered. They are:

A Business Plan

Businesses that want to overcome the challenging stages of this business must have a blueprint. This blueprint is the business plan. A business plan describes the business, what it does, how much money is needed to start and run it, what the money will be used for, how the company hopes to repay borrowed funds, the plan for investment, and marketing. Everything about the operations of the business is discovered through and documented in the business plan.

Raising Capital

Where will you get your funding from, savings alone, family and friends or a bank? Having the source of your money from the bank may lead to unwanted problems which may not be visible at the beginning of the business

Good Location

Location is one of the next important things in this business after you must have acquired the required startup capital. A restaurant without a good location will lead to outright failure. Regardless of the market, you should consider setting up your restaurant in an area with offices, business area, markets, places open to people and so on.

Related Post: How Bakery Business is profitable

Startup Expenses

Startup expenses are the necessary items or equipment needed to start up a business and for a restaurant business, you will need items such as cookers, pieces of furniture, electric power set/generator and most especially foodstuff, drinks, and so on.

Recruitment of Staff

Recruit capable and experienced staff to assist in the monitoring the activities in the restaurant. They should be able to attend to customers and take care of customer needs in an ideal, respectable, and satisfactory manner without compromise to quality, standard and business integrity.

Identify Your Target Market

This is usually stated in the business plan. Each restaurant has a different target market, depending on the size and class you prefer. Moreover, you can start with the low class (i.e., the low-income earners) and expand the business as it becomes more profitable thereby serving the bigger class or high-income earners in the long-run.

Supply both Foodstuff and Drinks

Get wholesalers to constantly supply foodstuffs at the least market price. To make more gains, consider adding drinks to your restaurant menu. To reduce cost, you can decide to buy your foodstuff and drinks directly from the manufacturer and major dealers at the right price. This will help reduce your cost price and increase your profits.

Cooking

This is one of the important parts of the business. In order to retain customers, you must cook the right type of food demanded by your customers and most importantly your food must be tasty and affordable. In all you do, make sure you master the method of cooking at least one continental meal as this will make your business more classy and when your customers know that you can also cook and serve continental dishes, they may want a personal order of your continental meals which of course don’t always come cheap.

Environment

The environment where you position your restaurant should be cool with the chairs and tables neatly arranged and clean with no form of stain(s) from leftover food around. The interior design of the restaurant should be appealing to customers with adequate lightning and ventilation in place. Use bright red colors where necessary to paint the walls of the restaurant, to stimulate the appetite.

Serving

Ensure that your food attendants are neatly dressed and that they have good customer service relations. While working in the kitchen, they should endeavor to cover their heads to avoid contamination of the cooked meal with germs possibly from their hairs. It is your duty to orient them on how to relate well with customers and how to respond to different types of clients so that they will not send them away with bad attitude.

Price of Food and Drinks

Keep customers happy by selling at fair rates with no reduction in quality of food and they’ll keep coming back.

Marketing Skills

You need to be known regardless of how best you cook and that is where marketing comes in. If people don’t know what you are selling, the business will fail. You can deploy an open marketing advertisement approach by placing a large sign post in strategic positions/areas in good-quality graphics prints displaying what you do.

Profit and Loss Analysis

You need to have basic accounting knowledge so that you can read and understand your restaurants’ yearly financial statements.

Just know that you have profit when sales less cost of goods sold. Your major task to continually make a profit is to make sure your sales increase daily. Apart from that, make sure as sales increases, the operating costs as well is monitored.
Difference Between a Profitable Restaurant And an Unprofitable One

A profitable restaurant must have the required characteristics in order to remain and be regarded as an elite restaurant and be profitable in its dealings.

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