Planning on opening a restaurant in the UK? This is the life goal of many people and one of the most exciting business ventures you can embark on, but it is also notoriously a challenging industry to succeed in. Therefore, it is helpful to be aware of the five tips that will help you hit the ground running.
1.Define a Clear Concept & Target Market
First, you need to define a clear concept and establish your target market. In the restaurant sector, you do not want to be too broad (particularly in bustling UK cities), so you need to establish your niche, whether this is recent trends like plant-based menus, ghost kitchens, or experience-led dining. Be sure to conduct a detailed competitor analysis so that you can determine how you will stand out from the crowd and engage your target audience.
2.Choose the Right Location & Premises
Location is everything when it comes to restaurant success. You could be serving the best food in the country, but if you are in the middle of nowhere and get no footfall, you will never succeed. Therefore, you want to find somewhere with high footfall that is easy to access, but just make sure that the demographics in the area suit your concept. Additionally, choose your premises carefully – you need a layout that will suit your service style and offer plenty of space to move around. Be sure to review lease terms and consider contingency planning, such as alcohol service in Cumulative Impact Zones (CIZs).
3.Navigate Legal Structures & Compliance
Choosing a legal structure is key, as this affects your liability and tax obligations. You can register as a sole trader, limited liability partnership (LLP), or limited company, so these need to be fully researched. Additionally, you need to register with the local authority and make sure that your restaurant meets strict hygiene and food safety regulations. Employment law, VAT registration, and insurance are other key areas to focus on. Consulting with lawyers for restaurants is smart to ensure everything is above board from day one.
4.Manage Costs Through Energy Efficiency & Recent Support
Rising UK business energy costs are a concern, particularly in the restaurant sector, where utility bills can be high. Therefore, you need to find ways to keep your bills down, such as energy efficiency equipment and LED lighting. Government support is also available in the form of free energy audits and subsidies as part of their mission to reduce sector-wide energy consumption by £3 million.
5.Plan for Sustainability & Navigating Net Zero
Following this, you need to balance environmental goals with practical operations. For instance, many curry houses have found switching from gas to electric to be expensive and disruptive. Therefore, you need to be practical when it comes to sustainability plans and assess long-term savings from upgrades.
These five tips will hopefully help you avoid a few common mistakes and hit the ground running with your new restaurant.
