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Successful Restaurants
Alameda County SBDC
Berkeley Public Library
April 1, 2015
Thank you to Our Sponsors
Who is the SBDC?
Partnership
SBDCs stimulate sustainable economic
prosperity throughout coastal
Northern California and the greater
San Francisco Bay area.
Through world class, transformative
business counseling and training, we
assist entrepreneurs with solutions for
more profitable business management
to thrive in today’s global market
The purpose of the Oakland
Metropolitan Chamber of Commerce is
to promote commerce and industry, to
advance economic growth
Our Services
Free One-on-One
Consulting
Free & Low cost
Seminars
Seminar Examples
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Successful Business Plans
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Meet the Lenders
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Law for Entrepreneurs
Retailing
Buying a Business
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Starting a Food Business
How to Pitch Your Company
Finding Your Core Customer
eMarketing
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Home Based Businesses
ACSBDC Consultants
Ron Barrett
Loan Specialist
Ed Duarte
Construction
David Bokash
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David Gray
Food and Restaurants
FJ Cava
Generalist
Tara Lynn Gray
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Deb Doyle
Branding
Carolyn Johnson
Business Plans
ACSBDC Consultants
Vaneese Johnson
Marketing
David Mitroff
Social Media
Bob Komoto
Export/Import
Mari Lovalvo
Human Resources
Paula Mattisonsierrra
Retail
Dorian Webb
Operations
Deagon Williams
Food & Restaurants
Tom Yeh
Strategy
How to register for
services
www.acsbdc.org
Technology Initiative
o Focuses on qualified technology
companies.
o Assists with the
commercialization of
technology and preparing for
fund raising
o No fees for its services and
takes no ownership interest.
o Goal is to help technology
companies start, grow and thrive
Are we effective?
• SBDCs are required to track and
measure results
o
o
o
o
o
o
New Business Starts
Jobs Created
Jobs Retained
Increases in Sales
New Loans Secured
New Equity Capital Secured
ACSBDC 2012 – 2014 Economic Impact
1,490
Companies
Counseled
5,118
Seminar
Attendees
95 Business
Starts
502
Jobs
$20.1 MM
Revenue
Generated
$27.6 MM
Loans
Secured
$39.4 MM
Equity
Invested
Please complete the
Evaluation form at the end
Presentation Download
www.acsbdc.org/handouts
Deagon B Williams
o
o
o
o
Classically trained chef with 20+ years industry
experience.
Culinary Business Strategy- principal
SBDC since 2009
Specializes in the bringing the business side to
culinary ventures and organizations.
15
Successful
Restaurants
What do you want out of this
seminar?
Successful Restaurants: Concept
The most valuable component of a successful
restaurant is creating, defining and refining your
concept to ensure it works.
• RP5
• Market Opportunity or
• Creating Market Opportunity
• The answer to this will determine how you get
from A-Z
• 5 years backwards is a good start
Concept Specifics
• Design
• Décor
•
•
•
•
•
•
Menu/Food
Price
Location
Personnel etc.
Financials
Marketing
How do all the ideal pieces fit?
Can you afford to pay people to help you grow this
business?
Ultimately this becomes your brand.
Concept Components
– If someone were to lend you $100,000 tomorrow
towards your business, would you be confident
in knowing how to spend it and how to pay it
back?
Concept: Price
– Price – Research every element until you’re
sure this is worth devoting your life to:
•
•
•
•
•
Recipes/Menu,
Market and customer profiles,
Operations (Front and Back of House systems),
Sales goals,
Competition, etc.
Concept: Product
– Product
• Based on research, based on passion?
• Infrastructure of building. TI, Façade, kitchen
upgrades
• Do you have a designer and GC? Can you afford them
now?
• Understanding and making use of financial statement
in the food business
Concept: Place
– Place - Know the Target Market
• Demographics - Who are your customer types?
• What do they do, eat, drink, shop, wear and live?
• How do you reach them, sell to them, engage them and
keep them coming back for more?
Concept: Promotion
– Promotion
• Is there a way to begin to create promotional
campaigns before you get into a brick and mortar
location?
• Pop-ups, catering, and food trucks and carts are a
great way to get started with limited.
• Here is a great resource
(http://www.sfcartproject.com/) if you’re interested
in starting a mobile food business.
Positioning
Statement
A positioning statement has 3 components:
1. Defines the target audience
2. States the category in which brand competes
3. Points out the benefit over other brands
Ex.: For upscale American families, Volvo is the
family automobile that offers maximum safety.
Positioning Statement Formula
If you are stuck building your statement, try this
formula:
“ For (target customer) who (statement of the need
or opportunity), the (product name) is a (product
category) that (statement of key benefit – that is,
compelling reason to buy).”
Business Plan
• You don’t build a house without
architectural plans, why would you
invest your life and savings into
something without having the
foundational piece.
B Plan Formula: Success
Mission
Customer
Competition
Costs
Product
Pricing
Promotion
Physical Distribution
People Money
Business Plan
•
•
•
Constantly tinker with your business plan.
It is never completed.
Rather, it’s an evolving document which grows with your
business.
– All Food Business
http://www.allfoodbusiness.com/starting_your_own_busine
ss.php
– BPlans
http://www.bplans.com/fast_food_restaurant_business_pla
n/executive_summary_fc.php#.UGndv0TGI7t
Success on the ground
A plan that becomes a system
Systems, Systems and Systems! Yes, really.
Consistency and kindness- hand in hand
Execute with a vision
Financial Success
If you don’t know your numbers, you don’t
know your business!
If you aren’t getting paid it’s not a
business it’s a hobby.
It is all about relationships to get the big
picture.
What are common problems?
Inventory
Hourly Labor
Purchasing practices
Prime Cost
Includes cost of sales (food, beverage and paper
goods in quick-serve restaurants)
Payroll costs (gross wages of management and hourly
staff plus payroll taxes and employee benefits such
as workers' compensation and employee insurance)
www.restaurantowner.com/primecostworksheet
primecostworksheet3.xls
primecostworksheet
Breakeven Point
To calculate your Break Even Point you must know
your total fixed expenses, your total planned
variable expenses and your planned net sales.
Let’s talk about it…
Formula:
Fixed Costs / (1-(Variable Costs/Sales))
http://www.docstoc.com/docs/82061341/Break-EvenPoint-Calculation-Template-for-Restaurants
Monthly Profit and Loss
Sales
Cost of Sales
Payroll
Controllable Expenses (Variable Costs)
Direct Operating Expenses (Fixed costs)
End of month cash on hand does not equal profit.
Food Cost
Also known as cost of goods sold (COGS)
What does it cost to make each product you
sell?
PB&J
Front load costs
Yileds
http://www.wikihow.com/Cost-a-Recipe
And, it’s ALL about the food
Know your product better than anything:
–Consistency,
–Price,
–Taste,
–Quality, etc.
Recipe book
Secondary uses of product
Portion Control
Food Safety
TASTE everything! Make it a standard.
Employees and People
Let’s talk about this…
Job descriptions
HR manual
Marketing starts here
Branded Marketing
It’s the air we breathe!
It is not sales and marketing- sales AND marketing
Marketing is also not a tactic- please know this.
Please.
Let’s go back to the concept for a moment-
You….
Pay yourself. Period.
Schedule your time.
Know every job in your business.
Get help where you need it.
Have a plan for your time and your business.
Revisit your business plan and adjust it.
Measure- what gets measured gets done.
Questions
What do you want more of?
What didn’t get answered?
What do you need?
How are you going to get there?
THANKS EVERYONE