How to Become a Restaurateur
If you consider yourself a blend of artistic talents, a lover of cuisine, and an individual in possession of the ability to become an astute businessperson, you are made to become a restaurateur. Make no mistake, being an artist, a connoisseur, and a businessperson simultaneously is no small task. Here are some of the major topics and decisions you will have to consider on your journey to becoming a successful restaurateur.
Advance Warning
Owning a restaurant involves dedication beyond that required in most professions. The hours are long, hard and never ending. The restaurant business is also highly misunderstood. So, before you begin to discuss your dream with others, prepare yourself for the following conversation.
You (speaking to a respected friend), “I have decided to dedicate myself to becoming a successful restaurateur!”
Your friend, “What?? Are you kidding? The failure rates of restaurants in the first year are anywhere from 30-40% and some reports say 90%! You will be throwing away your time and money!”
This conversation might not happen right away, but there will come a day when that is the response you will receive, from someone. Here’s the truth. The topic has been heatedly debated by the general public with such intensity and for so long, numerous reputable economists have addressed the issue. According to Forbes, “A piece of conventional wisdom about restaurants is that most of them close in the first year. An American Express commercial even warned that 90% failed in the first year. This is, to put it simply, false. For a long time, this question has been handled with anecdotes or small spotty datasets. But two economists decided to settle this decisively in 2014 using BLS (Bureau of Labor Statistics) data that covers 98% of U.S. businesses, the QCEW dataset. They tracked single-establishment restaurants from 1992 to 2011, and the study overall is very careful and well-done.
What they find is that only 17% of restaurants close in the first year, not 90%. This is in fact a lower failure rate than other service providing businesses, where 19% fail in the first year. For comparison, they find that 21% of offices of real estate agents and brokers fail in the first year, and the number is 19% for both landscapers and automotive repair.”
It is easy to become discouraged when laboring under faulty perceptions and negativity. You must be able to determine for yourself that you do in fact have the ability to succeed, in spite of the rampant misconceptions of the public
Work in the Field
If you haven’t already, get a job at a restaurant. Any job. In fact, a good restaurateur will at some point in time done every single job involved in the business. Start now, become a dishwasher if it’s the only way to break into the field. You will learn valuable information, even in that position. Consider yourself on a fact-finding mission. Set a certain time limit that you will work doing each job, and then make it known you intend to learn every single one of the other skills that go into owning a successful restaurant. Be available to the owner(s), especially when others are not, so that they will notice your drive and determination. They will see themselves in you and become a mentor and potential ally on your quest.
Take Business Courses
Unless you have achieved a highly developed business acumen, you will need to understand the practical side of business accounting, record keeping, basic economic forecasting and the like. There are many options to learn these skills via online internet classes, free seminars and even attending your local junior college. Just keep in mind, your goal is a nuts and bolts one, you must learn how to run the business end of your restaurant.
Become Proficient in the Art of Food Preparation and Presentation
Obviously, you will want to know how to prepare and present a savory and delicious meal, one that will keep your patrons coming back again and again. Learn what the great chefs know. Study, experiment, and talk with chefs in successful establishments.
Consider Partnering
Because a successful restaurant must have a hearty balance of art, food, and business proficiency, you may want to consider having a partner. As you get closer and closer to opening your own restaurant, you will need to have secured substantial start-up costs, developed a rock-solid business plan, the ability to promote and market the business, as well as developed the knowledge necessary to manage the startup capital. Those are challenging prospects, to say the least. Begin now to tackle each reality separately by devising a logical plan in all categories. Sharing the responsibilities and development burden with a trustworthy partner, might very well turn out to be a winning strategy.
Job Outlook for Restauranteurs
According to the U.S. Bureau of Labor Statistics (https://www.bls.gov/), Restaurateurs have every opportunity to succeed for the time period spanning 2022-2032. The field is growing by 1% per year, which is slightly below the 6% average growth rate. Government experts predict that each year over 39,600 openings will become available (between 2022-2032), due to replacing those who leave the profession, leave the work force and/or retire. Over the ten-year time span (2022-2032) it is projected that a total of 1,600 new positions will be created. In 2022 there were 357,500 individuals working as restaurateurs. The median pay per year was $96,220, while the median hourly wage was $30.32. (As a reminder, the “median” amount is not an average, it is the middle value of a dataset. For the U.S. BLS definition go to: https://www.bls.gov/cps/definitions.htm#medianearnings) .
By learning each of the facets of successful restaurant ownership, having a sure and well-delineated plan for your journey, you are on your way to becoming a successful restaurateur.
Bon Appétit !
