What is Restaurant Consulting?

It has been noted that almost 60%* of the restaurants that open, are shut within their first year of operation, another 20%* within five years of operation only because of lack of professional knowledge and poor market study. Restaurant Consulting firms are external organizations hired by business owners to help them achieve a goal, for example to set up a restaurant or achieving a specific profit margin. They sell their time, credibility and their ability to gather and analyze information. These firms do market research on regular basis and up to date with the trends in the industry and have all the technical and analytical knowledge of the restaurant industry. They offer various services to achieve the goal.

A typical restaurant consulting firm performs various task depending on what the business owner wants to achieve. A few include:

• Will the concept stand out in this market?
• Will the concept appeal to the target audience?
• Will the projected revenue exceed my costs?
• Will the project hit its financial goals?

If all signs point to profitability and practicality, the project likely reached to a Go Decision and the project could feasibly work. If not, you’ve reached a No-Go Decision, and will have to go back to the drawing board and rethink your location, concept, pricing, and expenses.

Few Metrics to Measure Success of a Restaurant

While the restaurant business is a very dynamic business and requires a lot more attention than other business, there are a few factors that one must keep in mind while measuring the success of any restaurant. This includes:

While we are all aware of the pandemic affecting almost every business across the globe, it is inevitable that it also has affected the restaurant industry. However, just as every factor always playing a positive role in the industry, this pandemic has also emerged as winners while the others now notice a road to recovery. A few takeaways that we can take from this pandemic are:

Written by, Arpit Mahajan

Originally published at https://www.promiller.in on December 16, 2020.