TLDR:
- Have a unique concept and vision that convinces people to spend their hard-earned money on you over the restaurant across the street they already have a connection with
- Conduct thorough market research to know where its best to set up camp
- Know what your business plan is; it better be solid
- Have an effective marketing and branding strategy so its easier to create a vast presence in the market
- Irrespective of whether you want to be upscale or not, pricing is still relevant.
The parameters for standing out in one of the most saturated industries
In spite of how saturated the food service industry is, you’ll find many people eager to start their own thing, whether it's a bakery, cafe, or restaurant.
Obviously, being able to provide food that is worth the price complemented by good customer service is essential to finding success, but that’s just scratching the surface.
Here are 5 parameters pertinent to a successful food service startup.
1. A Unique Concept and Vision
Depending on the market where you want to set up camp, chances are there’s already a plethora of cuisines available. But even if there isn’t, you still have to convince people why they should spend their hard-earned money on you rather than the popular place across the street that they may already have a connection with.
And one of the best ways to do that relies on your concept, vision, and how unique each is.
Creating a concept and vision relies on aspects such as:
- The type of cuisine you want to offer and how the menu will cater to that. If it’s on your roots, how would you want customers coming in to perceive your culture and what would you want them to take away when they walk out the door?
- Identify your target demographic and tailor your concept based on their preferences and needs.
- Once you’ve defined the two aforementioned variables, how would you create an atmosphere and ambiance that aligns with your concept?
- How can you develop and communicate a strong brand identity through the logo?
A well-defined unique concept and vision lays the foundation for any food service startup.
2. Thorough Market Research
Before you want to announce your name, conduct market research to decide where it's best to announce it.
Conduct market research that answers questions like:
- What competitors aren’t doing that creates gaps in the market you can capitalize on to differentiate yourself
- Analyzing the tastes and preferences of your target demographic in that market
- Areas where it’s best to open your restaurant given what you want to offer
- Staying up to date on food industry trends and dietary preferences of the customer
Conducting market research through the proper channels will help you with determining what the best business approach is.
3. What’s Your Plan?
So you’ve identified what your concept and vision is and have done the proper market research to determine where it's best to set up. So what’s your plan to set it all in motion?
Your business plan should take into account things like:
- Financial projections such as revenue forecasts, budget estimates, and a break-even analysis
- The marketing strategy to appeal to your target demographic
- Operational Plans on information such as the kitchen setup, staffing, supply chain, and distribution channels
- How you will adhere to all local, state, and federal regulations pertaining to food service
A solid business plan serves as the beacon of your food service startup.
4. The Marketing and Branding
As we said at the beginning of the article, food well worth its price alone won’t cut it. You also need to know how to market and create your brand.
To do so:
- Create an online presence by building your own website, creating accounts on all major social media platforms, and leveraging online food delivery services to reach a wider audience if applicable
- Engage with your local community through events, sponsorships, and collaborations
- Leverage high-quality food photography with engaging visuals on your menu to post on your socials
- Encourage satisfied customers to share their experiences online on platforms like Google and Yelp
A strong brand identity with solid marketing to boot will help you establish a solid customer base as well as a recognizable presence in your market in all capacities.
5. Pricing
Even if you intend to be an upscale food service startup, pricing is still relevant. You need to ensure you’re able to:
- Offer prices that are competitive within your market segment
- The perception of value is created without you explicitly saying it; the food should speak for itself
- Engineer menus that can offer higher-margin items and control costs effectively
A well-balanced pricing strategy helps you cover costs, maximize profits and still remain attractive to customers.
The food industry is one that’ll always be one of the most saturated industries in the world. However, as you’ll hear many chefs say, food is another language in itself. People are always craving something 24/7, with many open to trying something new to satiate their taste buds. And that’s where you come in, with all the aforementioned parameters nailed to the best of your ability.