Opening a restaurant: 13 mistakes not to make

You want to open your own restaurant? You are about to embark on a wonderful adventure! However, you must be aware that the restaurant business is particularly challenging and demanding. 

And for good reason, many beginning restaurateurs have difficulty and some don't make it past the first year. 

However... That doesn't mean you should be defeatist. The good news is that everything on this list can be avoided by thinking about it before you open your restaurant. So don't wait any longer, follow our top tips and open your restaurant with confidence! 

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1. No or little communication about the opening

We can't say it enough: communication is essential! This is especially true in the highly competitive restaurant industry. After all, you can serve the best food in the world, but if you don't promote it, then no one will know you. 

There are many effective ways to achieve this:

• The use of social networks: Instagram, Facebook, and even TikTok, Pinterest, Twitter or Snapchat
• Distribution of flyers
• Online advertising
• The creation of a website
• The organization of an opening event

Don't hesitate to invest in communication from the beginning to promote the opening of your restaurant! 

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2. Hygiene procedure

The hygiene of your establishment should never be neglected. You must make it a priority. It is essential to understand that contaminated food can lead to serious illness and even death, especially for vulnerable clients such as children, the elderly or individuals with chronic diseases. 

Respecting hygiene standards is also essential to preserve the reputation of your restaurant. Customers who get sick after eating food are likely to share their experience with their friends and on social networks. This can result in a considerable loss of your clientele.

Always keep your premises clean and tidy, store your food properly to avoid cross-contamination, maintain proper storage and cooking temperatures of ingredients, and always practice good hand hygiene.

You must also complete a comprehensive food hygiene training course (HACCP approach), to understand the risks associated with food handling and how to prevent them.

👉 To go further: find out all about the HACCP approach, a must know and adopt in your restaurant!

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3. General security of the premises

For a restaurant to function well, it must be safe and comply with all current industry standards. So to make sure your establishment is safe, make sure you have the right kitchen equipment that is quality, modern and compliant with standards. Not only will this ensure the safety of your team and your customers, but it will also make you more productive.

But on the security side, there are many other essential elements.

Here are some of them:

• The different signs to put in your restaurant, such as the one for smoking areas
• The declaration of the use of "animal foodstuffs or of animal origin" if you intend to use them (remember to make the declaration to the Direction Départementale pour la Protection des Populations at the latest one month after the opening date of your establishment)
• Check that your restaurant complies with the safety standards applicable to establishments that receive the public (standards concerning lighting, electrical installations, emergency exits, heating, kitchen equipment and the isolation of rooms)
• Your staff must be trained in hygiene standards
• Respect the rules for the employment of minors

There are many other safety regulations to follow for your restaurant. However, by regularly educating yourself on the laws, surrounding yourself with knowledgeable people and creating a solid business plan, you will have no trouble being in compliance!

👉 Going further: regulatory standards to know in the restaurant industry

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4. Poor inventory management

Another mistake to avoid when opening your restaurant is not managing your inventory properly. It is essential that you know when your products have been ordered, delivered and their quantity, in order to avoid stock-outs and financial losses.

Inventory management helps ensure the quality of the food served in your restaurant. Food must be stored in optimal temperature and humidity conditions to prevent spoilage and protect the health of guests. Always use perishable products before their use-by date to avoid financial loss and health risks.

Also, effective inventory management is the key to reducing a restaurant's operating costs. By knowing inventory levels accurately as well as backorders, it is possible to limit waste and optimize purchasing costs. 

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5. Poor customer service

A restaurant is nothing without its staff! It is therefore essential to recruit your employees and especially to train them well. The customer service must be perfect. Indeed, a guest will more easily forget a dish served a little late than a waiter who was not smiling or friendly. Stress management, quality of service, friendliness, knowledge of the dishes... Make sure you train your staff well and always communicate with your teams.

👉 Going further: 9 tips for finding restaurant staff!

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6. Too wide a range of dishes

Many restaurant owners make the mistake of offering too much. And yet, the offer of menus and dishes is a key element to satisfy your guests and increase your profitability. But be careful, too much choice can be detrimental to your establishment!

Indeed, offering too much can cause problems. Not only can it cause you to lose control of your costs and raw materials, but it can also affect the quality of your dishes. Ultimately, this can lead to significant financial losses and dissatisfied customers.

So how can you avoid these pitfalls? The answer is simple: offer a limited, but well thought-out range of dishes! By focusing on a limited number of dishes, you can control your costs by purchasing more raw materials and perfecting your culinary techniques. Plus, it can help you differentiate yourself from the competition by offering a unique culinary experience to your customers!

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7. The location of the restaurant

Don't be one of those restaurants that, through haste or lack of analysis, have established their establishment in a non-strategic area. The location of your restaurant is essential!

Consider the following: 

• Am I near a business district/student campus/mall or in a downtown area?
• Is there a parking lot nearby? 
• Am I in a transit zone?
• Also think about the competition: avoid being close to too many direct competitors, but sometimes a few are better than none, because they can indirectly help you to make yourself known! It's all about studying the market
• Work: are there any worksites planned?
• Regulations: check until what time you are allowed to make noise in the neighborhood.

👉 To go further: How to find the perfect space for your restaurant?

8. Staff turnover

The issue of staff turnover is crucial in the restaurant industry. Unfortunately, many restaurant owners do not pay enough attention to this important aspect of their business. Constant staff changes can negatively impact service quality, customer satisfaction and ultimately the bottom line.

How to avoid this mistake?

• Consider your employees: this requires recognition of their work, not only financially but especially with thanks and encouragement when it is deserved. Your teams will remember it!
• Offer training to your employees
• Involve them in the life of the institution
• Make communication a priority
• Do not hesitate to offer attractive salaries and benefits when possible
• Finally, efficiency and seriousness can also rhyme with good humor! Make your restaurant a place where it is good to work and where your employees feel good and are happy to come every morning. This will make all the difference!

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9. Lack of experience in the restaurant industry

If you lack experience in the restaurant business, it is best to open your restaurant with partners. However, collaboration is often smooth at the beginning of a project, but tensions or conflicts can arise when visions for the restaurant diverge. Therefore, it is essential to get along with your co-founders from the beginning. Choose partners you can trust, both professionally and personally.

Remember that mutual trust is one of the cornerstones of any strong professional relationship, and it is essential to ensure that your associates share your values and vision for the future of your facility.

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10. Poor account management

Opening your own restaurant is a dream for many people who are passionate about food and hospitality. However, as with any business, it is crucial to have a solid capital base to avoid unpleasant surprises and ensure financial stability.

A good safety net allows you to deal with the unexpected, such as costly repairs, loss of merchandise, a drop in clientele, or even a global pandemic like the one we recently experienced. Without sufficient capital to cover these unexpected expenses, your establishment can find itself in financial difficulty, which can lead to debt, foreclosure, or even closure of the restaurant. 

It's important to note that the amount of money needed for safety capital varies depending on many factors, such as the size of your restaurant, the type of cuisine you offer, the cost of ingredients and rent, and many others. Therefore, it is crucial to thoroughly research your costs before opening your restaurant and to plan for enough capital to cover all contingencies.

👉 To go further: How to make your business plan in 7 steps.

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11. Not having the proper licenses

Another mistake not to make is to open a restaurant without having the proper licenses to serve alcoholic beverages. These licenses not only allow you to comply with the regulations in force, but also to avoid possible sanctions and fines. And for good reason, in France, the rules concerning licenses, especially for the sale of alcoholic beverages, are very strict.

In addition to complying with applicable laws, obtaining the proper licenses also ensures the safety of your customers. It shows that the beverages sold in your restaurant are of high quality and that they are stored and served in optimal conditions.

👉 To go further: license for your restaurant: which one to choose, how to get it and at what price?

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12. Business : family & professional

Before opening your restaurant, you should keep in mind that balancing family and work is not always easy. Sometimes, some managers realize too late that this lifestyle is not for them. Think carefully about this aspect, as well as the organization that you will adopt when you open your restaurant. 

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13. No supplier for your products

Finally, a common mistake is the suppliers. Not only do you have to find them, but more importantly, you have to choose the right ones! Select suppliers that match your values and find out more about them before you sign a contract. To do this, don't hesitate to ask your colleagues and also look at what they pay. Finally, negotiate with several suppliers to make sure you get what you need, at the best price!

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Bonus tip

Finally, here's one last bonus tip: use the power of digital for your restaurant!

Consumer habits have changed a lot in the last few years, especially with the rise of delivery platforms like Uber Eats or Deliveroo, and click & collect. Being present online means more visibility for your restaurant, more customers and more turnover.

In the dining room, why not offer a modern and fluid experience by offering more autonomy to your customers? You will quickly realize that an order terminal or a QR code installed on your tables are great allies during rush periods (saving time on order taking and payment).

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Are you opening or taking over a restaurant? Contact an Innovorder expert to get personalized advice for your restaurant!