There are countless things to consider before launching a restaurant and opening the doors to customers, from being financially prepared and having enough working capital, to having operational procedures in place and a solid marketing plan. Even having the right mindset – as the owner or operator – is key.
Mark Moeller, founder and president of The Recipe of Success, a national restaurant consulting firm, believes that every restaurant or bar operator must have a mindset that “…every day is a great day to learn,” especially when launching a new business. “New restaurants have a way of proving that all the forethought and planning is not the final answer,” he said. “Location, design, menu, training, recruiting, weather, traffic patterns, and so much more create reality. Being fluid and flexible with one’s approach is critical at the very beginning. Never rock your foundation, but always be willing to look at things from a different perspective.”
Among the numerous considerations and challenges that owners and operators tackle before launch day, the most important may be selecting, training, and managing staff.
Select the Right Employees, Provide a Solid Training Program Before the Big Launch
Ron Santibanez, the founder and president of Profit Line Consulting, a boutique restaurant consulting firm that specializes in new concept development, helping existing restaurants increase their sales, and bottom-line profits, said selecting the right employees and not providing adequate training is oftentimes a mistake that operators make before launching the business.
Santibanez said he always recommends two weeks of staff training and at least one dry run or soft opening. “Initially, you will be working out some of the bugs in your operation,” he said. “Give your staff enough time to get up to full speed.”
Moeller agrees and said that not properly training a new team is a common mistake before a restaurant’s launch. “Just because a server or cook has years and years of experience, they do not know your menu or your systems,” he explained. “They need to be trained in what your deliverables are and what you expect. Owners/operators can lean on those years of experience for the intangible attributes but not the tangible ones.”
To properly staff a team before launching, Moeller said restaurateurs must go through a careful and rigorous recruitment process, to ensure they’re hiring the best people for their concept and location. They also need a written training program that can be administered before the launch date.
“Every employee needs at least 40 hours of training,” suggested Moeller. “Repetition is critical, as it breeds consistency. If an employee has not fully grasped the material and processes, they should not be left alone in their position. Owners/operators cannot be afraid to tell someone that they are not ready and/or not be afraid to terminate said employee. First impressions are lasting impressions. This is your livelihood, your restaurant, and reputation – not theirs. You must do what is best for the restaurant – always!”
Hospitality Works’ Izzy Kharasch, a restaurant industry consultant in Chicago, revealed that many operators fail at training their staff enough – or even at all. “I have been to many openings where the staff does not know the food or cocktail menu,” he said. “They don’t know the table numbers and have not been trained on the computer.”
To help, Kharasch said there are two key things that owners and operators must give their staff, if the operation is to be successful: 1. Give them confidence through training. 2. Assure staff that that the restaurant owners and managers are going to back them up when mistakes are made.
“First, the owner/managers must understand mistakes will be made,” shared Kharasch. “This is where the staff knows that ownership/management will back them up. If something goes wrong, the owner/manager must handle it personally. If they don’t handle the mistakes that affect the guest, then the guest is mad and most probably won’t come back. The server that was not backed up will learn very quickly that they are on their own, and that is the worst outcome of a simple mistake.”
Kharasch also suggested that when an owner/operator is about to launch (within two weeks), they need to not only have 100 percent of the staff in place, but also 120 percent of the staff ready to go. “It may seem like a lot,” he said, “but the restaurant will lose that additional 20 percent within two to three weeks. Some staff won’t like the operation and the operation may cull some of the weaker and more unpleasant staff.”
How Important Is a Restaurant’s Soft Opening Before Launch Day?
A restaurant soft opening – which many owners/operators schedule before launching – is a trial run. It helps staff, as part of their training, to get more acquainted with the operations, menu, and the many ins and outs of the restaurant.
According to Moeller, a soft opening is extremely critical. “This is where you find out if the restaurant as a whole is truly ready for the general public,” he said. “A soft opening is where you work out the kinks and hiccups. It’s where an owner is able to save their reputation before it gets damaged.”
Kharasch pointed out that a soft opening before a restaurant opening is a myth, and many owners get lulled into believing the first few days of the business will be a “soft” opening. “What they don’t take into consideration is that people have been watching them build and can’t wait to try them out,” he said. “They will be unbelievably busy from the minute they open the door.”
Instead, Kharasch suggests that owners and operators consider the idea of “controlled meals” through training. “That means if they are going to have five days of training, the last two should be with invited guests, so that staff has practice with real guests and corrections can be made. This is why I like to open our restaurants on a Friday. The staff now knows it will be busy and that is what they are geared up for.”
Kharasch added that owners/operators should not be “greedy” when officially opening their doors. “By that I mean don’t try to make all of the investment back on the first day,” he said. “If your restaurant seats 100 guests, then take out some of the tables and only seat 75 guests and give them the very best food and service. The worst thing a guest can say about a new restaurant is, ‘I’ll come back in a few months when they are ready.’”
Biggest Mistakes and Things That Are Overlooked When Launching a New Restaurant
Beyond staffing issues, one of the biggest mistakes when launching a restaurant is not being financially prepared. “Under capitalization creates a negative domino effect that leads to poor choices and financial distress,” said Moeller.
Santibanez agrees and said that having enough working capital is imperative and a restaurant or bar needs to have at least four to six months of working capital. “Have a strong operational structure in place,” he explained. “This includes a financial model of the concept with realistic assumptions. Basically, the core of any good business plan.”
Besides being properly financed and not training staff, marketing is often overlooked, per Moeller. “The old adage, ‘Build it and they will come,’ no longer is true,” he said. “Owners must put a comprehensive marketing plan with strategy that includes milestones and benchmarks.”
Kharasch added that lighting and sound is often overlooked by owners/operators when launching a new restaurant. “These seem like unimportant details, but they are not,” he said. “Many restaurants want to be ‘romantic’ but forget to turn the lights down in the evening, so when the guest walks in, the restaurant is bright and does not have that romantic feel. You either lose the customer immediately or they leave within 45 minutes. The same thing with the sound. If the sound is too loud, guests will not stay for long and may very well not come back because they could not hear each other.”
Another pre-launch mistake is food calculations. “[Operators] don’t do the correct calculations on how much food they will need to get through the first few days,” said Kharasch. “Now, they get to Saturday night and find themselves running out of food. By Sunday, there will be very little reason to open because they may have already sold 20 percent or more of the product.”
The Best Way to Handle Mistakes When Launching
In the end, when launching a new bar or restaurant, mistakes will happen. So, what’s the ideal way to handle this? Moeller said restaurateurs make mistakes every day, and it’s best to accept responsibility, never pass blame, and always be truthful.
“Know what you do not know and surround yourself with people that are a strength to your weakness,” shared Moeller. “Manage with empathy, be transparent, and above all, focus on your finances – from capitalization to operations, understand that everything you do impacts your ability to make money. Use common sense and lose the ego.”
Santibanez added: “Don’t point fingers. Learn from mistakes and correct.”
Aaron Kiel is an editor, writer and public relations professional in Raleigh, N.C. He’s worked in the beverage, tea and coffee industries for two decades, as well as hospitality and technology. He’s a journalist at heart, but he also wears a PR and communications hat through his consultancy, ak PR Group. He’s a contributing writer/reporter for Questex’s Bar & Restaurant News, and he recently worked as the editor of World Tea News with Questex’s Bar & Restaurant Group. In 2023, he was a finalist and honorable mention in the “Folio: Eddie & Ozzie Awards” for Range of Work by a Single Author – B2B.” In 2024, he was named a Northeast Regional Gold Award Winner in the Editorial Excellence category for Diversity Equity & Inclusion, for his article on Pride Month and the hospitality industry at Bar & Restaurant News. Connect with him on Instagram: @adventurer_explorer.
Are you registered for our Crave and Crave on the Menu newsletters? Sign up today!
Plan to Attend or Participate in Our Events:
- 2024 Bar & Restaurant Expo Texas, October 28-30, 2024 in San Antonio, TX
- 2025 Bar & Restaurant Expo, March 24-26, 2025, Las Vegas, Nevada
To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend Bar & Restaurant Expo 2025 in Las Vegas. Visit BarandRestaurantExpo.com.
To book your sponsorship or exhibit space at our events, contact:
Veronica Gonnello (for companies A to G) e: [email protected] p: 212-895-8244
Tim Schultz (for companies H to Q) e: [email protected] p: 917-258-8589
Fadi Alsayegh (for companies R to Z) e: [email protected] p: 917-258-5174
Also, be sure to follow Bar & Restaurant on Facebook and Instagram for all the latest industry news and trends.