Inside the restaurant industry

Category: Restaurant
Last Updated: 10 Jul 2021
Pages: 3 Views: 136
Table of contents

Full Service Restaurants provide food service to customers, who order and are served while seated, and to their services, there are waiter/waitress, unlike Quick Service Restaurants, they pay after eating.

They not just provide the Food services but also sells alcoholic beverages, provide carry out services, or present live non-theatrical entertainment. Full Service Restaurants, cafes and snack bars generate annual sales volume of over US$660 billion globally.

Why Do Restaurants Fail

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Economic, marketing and managerial problems are the reasons behind the failure of Restaurants. Economically, restaurants fail due to Diminished revenues; poor controls; voluntary and involuntary bankruptcies involving foreclosures, takeover by creditors, receiverships, or frozen assets for nonpayment of receipts.

The Restaurants may also face problems due to Improper Marketing strategies like”. Knowing the nature of the Market is of paramount Important, and when they are incapable to understand, adapt or anticipate market trends, they are likely to incur heavy losses. Many time Restaurants fail due to managerial problems like loss of motivation by owners; Operational problems; legal, technological, and environmental changes that demand operational modifications and other miscellaneous problems.

Three Steps To Launch A Successful Restaurant

The three big and most Important things to consider before starting any Restaurant are:

  • Your Target Audience: You have to open a Restaurant taking the tastes and preferences of your Target Audience in view point and Location where you want to open a Restaurant. For eg. Depending on your experience, finances, location and customers, decision has to be made on the type of restaurant like Traditional which cater to a variety of customers,
  • Secondly is Ethnic, which highlight food from a particular country or region and offer personal service with excellent cuisine.
  • Thirdly is Specialty that offers one food type or a variety of a certain dish.
  • Fourthly is Coffee Shop that offers wide variety of quick, pre-prepared dishes, Fast Food that normally franchise operations offering limited menu, Cafeteria that offers simple, pre-cooked hot dishes and cold plates which requires large transient population and controlling labor costs.

Layout and Design

The layout and design of Restaurant should be practical, setting the mood of your target audience. One must consider according to the budget, seating/waiting areas, serving room, cashier area, rest rooms, bar (optional); areas from where you can view the entire restaurant; lighting, signs and obstacle-free traffic flow; a variety in seating arrangements etc 50% of customers come in pairs; 30% come alone or in groups of three; and 20% in groups of four or more; adequate room must have the suggested square footage requirements per chair as 10-20 sq.

Ft in traditional restaurants, 10-12 in cafeterias, 7-17 in coffee shops; a kitchen which allows effective food preparation and interaction between staff, safety in movement, dry and cold storage, dish washing, an area for staff's personal items, convenient delivery zone, proper cleaning and maintenance area, proper ventilation and lighting system. Along-with this there is also a need for Calculating Seating Capacity to determine the potentiality of your restaurant and break-even point. In it is also included preparing Menus and Setting the Right price

While planning your menu, consider the customers preference and add variety in dishes while maintaining stable cost averages. Generally the prices of Menu are considered by the combination of food costs and requirements to meet expenses and realize a profit. The price of a dish is three times the food costs, depending on the type of restaurant, miscellaneous expenses and competitors' prices.

Registration, Licenses, Permits And Regulations

All businesses including restaurants must comply with licenses, permits and regulations as per laws and regulations of the Municipality

Charachteristics Of Best Restaurant

Only those Restaurants are successful which has :

  1. Quick and Best services
  2. Variety in Dishes
  3. Reasonable rates.
  4. A Restaurant having soothing ambiance, air is resonating with cozy romance and affectionate atmosphere.
  5. Appropriate Parking space and other facilities to give customers a delightful evening.


  1. Cannon Howard Cannon, Tarcy Brian, (2002), “The Complete Idiot's Guide to Starting Your Own Restaurant, Alpha Books. ISBN: 002864168X.

Cite this Page

Inside the restaurant industry. (2018, Aug 18). Retrieved from

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