Congratulations! You have decided to join the ranks of small business owners by opening your own fast food restaurant. If you like dealing with customers and are ready to put in long hours and a lot of hard work, you could be headed in a very profitable direction! While the take-out and fast-food industry in the United States is continually growing, jumping into fast-food restaurant ownership with insufficient knowledge can hurt your chances of success. To help ensure your new restaurant is a profitable success, we offer the following list of ten things to know before opening a fast food restaurant:
- Will you open a franchise or independent restaurant?
While the majority of fast food restaurants are franchises, you can still open an independent fast food restaurant if you choose. If you decide to open a franchise, carefully read your agreement before signing, paying special attention to supplier terms and additional fees.
- Do you have sufficient reserves?
The main reason new restaurants fail is underfunding! Make sure you have at least six months’ worth of operating capital to give your restaurant time to grow.
- How well do you know the fast-food business?
There is a lot to know before you can successfully manage a fast food restaurant. Spend several months working as a manager to learn how to handle all your various duties, including payroll, inventory, ingredient tracking, marketing, and more.
- Is your business plan in place?
Before you set foot in your new restaurant, you should have a detailed business plan in place. Assembling your plan will help you acquire an in-depth knowledge of the local market, will demonstrate the financial viability of your proposed business to the bank or investors, and will help you plot the course of your restaurant for the next year.
- Have you found the right location?
Look for a location with a reasonable amount of foot or drive-by traffic, with a large parking lot that is easy for drive-thru customers to get in and out of,
- What permits are required?
The specific permits and licenses you need will vary depending on your location. Contact the Small Business Administration; they will know what permits are needed in your area.
- Do you have sufficient insurance?
In addition to insuring your premises, you will also need to carry liability insurance and Workers’ Compensation insurance.
- Is your marketing campaign ready?
You want to have customers lining up the first day you open, so you should start an aggressive marketing campaign about a month before you open your doors. Even if you are opening a franchise backed by a national advertising campaign, you need to advertise to bring customers to your new location.
- What competition is in the area?
Before settling on a specific restaurant to open, analyze the local area to see if there is a large enough market for your restaurant. Examine the competition, demographics of neighborhood residents, and projected area growth.
- What is the best fast food POS system for your restaurant?
Calypso’s turnkey POS system was specifically designed to keep up with the hectic pace of fast food restaurants. Simple Department driven menu screens are easy to learn and use, making them perfect for fast food restaurant employees. Speed of service reporting for Drive Thru lines is included in Calypso’s POS for fast food restaurants, along with a kitchen video display to keep your drive-thru lines moving swiftly. Time and attendance features, inventory management, seamless QuickBooks integration, and a host of other features make Calypso the best choice for fast food restaurants!
Contact Calypso today at 800-771-7100 to discover more ways Calypso’s fast food POS can help your new business become a profitable success!