Additional titles in Entrepreneur’s Startup Series Start Your Own Arts and Crafts Business Automobile Detailing Business Bar and Club Bed and Breakfast Blogging Business Business on eBay Car Wash Child-Care Service Cleaning Service Clothing Store and More Coaching Business Coin-Operated Laundry Construction and Contracting Business Consulting Business Day Spa and More e-Business Event Planning Business Executive Recruiting Business Fashion Accessories Business Florist Shop and Other Floral Businesses Food Truck Business Freelance Writing Business and More Freight Brokerage Business Gift Basket Service Grant-Writing Business Graphic Design Business Green Business Hair Salon and Day Spa Home Inspection Service Import/Export Business Information Marketing Business Kid-Focused Business Lawn Care or Landscaping Business Mail Order Business Medical Claims Billing Service Net Services Business Online Education Business Personal Concierge Service Personal Training Business Pet Business and More Pet-Sitting Business and More Photography Business Public Relations Business Restaurant and More Retail Business and More Self-Publishing Business Seminar Production Business Senior Services Business Travel Business and More Tutoring and Test Prep Business Vending Business Wedding Consultant Business Wholesale Distribution Business Entrepreneur Press, Publisher Cover Design: Beth Hansen-Winter Production and Composition: Eliot House Productions © 2012 by Entrepreneur Media Corporation All rights reserved Reproduction or translation of any part of this work beyond that permitted by Section 107 or 108 of the 1976 United States Copyright Act without permission of the copyright owner is unlawful Requests for permission or further information should be addressed to the Business Products Division, Entrepreneur Media Inc This publication is designed to provide accurate and authoritative information in regard to the subject matter covered It is sold with the understanding that the publisher is not engaged in rendering legal, accounting or other professional services If legal advice or other expert assistance is required, the services of a competent professional person should be sought Library of Congress Cataloging-in-Publication Data Lynn, Jacquelyn Start your own restaurant and more: pizzeria-coffeehouse-deli-bakery-catering business/by Entrepreneur Press and Jacquelyn Lynn.—4th ed p cm Includes index ISBN-13: 978-1-59918-443-2 (alk paper) ISBN–10: 1-59918-443-5 (alk paper) Restaurant management Food service management New business enterprises I Entrepreneur Media, Inc II Title TX911.3.M27L9776 2012 647.95068—dc23 2012006075 Printed in the United States of America 16 15 14 13 12 10 Contents Preface xiii Chapter Introduction to the Food-Service Business Who Are the Diners? Generation Y Generation X Baby Boomers Empty Nesters Seniors Industry Trends Menu Trends Understanding Takeout Customers Where’s the Competition? Chains 10 Supermarkets and Convenience Stores 10 Eating at Home 11 Chapter Restaurant Operations 13 Setting Hours of Operation 16 Start Your Own Restaurant and More į Scheduling Employees Service Procedures When They Don’t Come In Cleaning Your Facility 17 19 20 21 Chapter Developing Your Business Plan 23 Carving Your Niche 24 Researching Your Market 25 Are You on a Mission? 26 Chapter Kitchen and Dining Room Basics 29 The Dining Room and Waiting Area High-Tech Needs High-Touch Production Area Ventilation Merchandising Pricing Menu Items Menu Nutrition Labeling Keep It Clean 30 31 31 33 34 35 36 36 Chapter Restaurant 37 Choosing Your Concept Seafood Restaurants Steakhouses Family-Style Restaurants Casual-Dining Restaurants Ethnic Restaurants Setting Up Your Facility Customer Service Area The Dining Area The Production Area Customer Areas Equipment Production Equipment Dishwashing Equipment Receiving and Storage Equipment Bar Equipment vi 39 40 40 41 42 42 42 43 45 45 46 46 46 47 47 48 į 48 49 49 51 51 53 53 53 54 55 55 55 Contents Tableware and Miscellaneous Supplies Uniforms Inventory Staffing Manager Chefs Cooks Dishwashers Serving Staff Hosting Staff Buspersons Bartenders Chapter Pizzeria 57 The Pizza Setting Up Your Facility Customer Service Area Dining Area Production Area Equipment Food Production Equipment Utensils and Miscellaneous Equipment Beverage Center Inventory Staffing 59 60 60 62 63 64 64 67 68 69 70 Chapter Sandwich Shop/Delicatessen 73 Competition Setting Up Your Facility Customer Service Area Dining Area Production Area Receiving and Storage, Office, and Restrooms Image Equipment Production Equipment Retail/Service Area Equipment Dining Area Equipment 75 76 77 77 78 78 79 79 80 81 83 vii Start Your Own Restaurant and More į Dishwashing Equipment Receiving and Storage Area Equipment Inventory Staffing 83 84 84 86 Chapter Coffeehouse 91 Competition 94 Industry Trends 95 Setting Up Your Facility 97 Customer Service and Seating Area 97 Production Area 99 Equipment 100 Coffee and Espresso Machines 100 Inventory 104 Staffing 106 The Coffeehouse Market 107 About Beans 108 Starting Each Day 109 Chapter Bakery 113 Competition Not by Bread Alone Setting up Your Facility Kitchen/Production Area Front Retail/Display Area Restrooms Office/Shipping/Receiving Area Other Areas Equipment Inventory Staffing 116 116 118 118 119 119 119 119 119 122 123 Chapter 10 Food and Party Catering 125 Setting Up Your Facility Kitchen Equipment Cooking and Serving Equipment Company Vehicle viii 129 130 132 134 į 134 135 135 136 137 138 140 142 142 Contents Inventory Wholesale or Retail? Staffing Managers and Other Employees Event Staffing Guidelines Developing Menus and Setting Prices When the Customer Calls Make a Packing List At the Party Chapter 11 Inventory: Buying, Storing, and Tracking Supplies 153 Beverage Systems Where to Buy Dealing with Suppliers Receiving Procedures Hidden Inventory Costs Tracking Inventory Controlling Bar Losses 155 156 156 158 158 159 159 Chapter 12 Structuring Your Business 163 Legal Structure Naming Your Company Business Insurance Professional Services Create Your Own Advisory Board 164 165 167 168 171 Chapter 13 Locating and Setting Up Your Business 173 Retail Locations Additional Retail Options Signage Mail Order The All-Important Mailing List Selling on the Internet Packing and Shipping Tips Be Creative Should You Buy an Existing Operation? Franchise 174 178 181 181 181 182 182 182 183 184 ix Glossary Arabica beans: a kind of coffee bean that produces superior-quality coffees that possess the greatest flavor and aromatic characteristics BAC: blood alcohol content Barista: a master espresso maker; a barista is an expert in both coffees and brewing Breakdown table: a utility table in the receiving area of a food-service facility used to open, inspect, and sort incoming shipments of food and supplies Bump-out: a term describing the addition of a food-service area to a gas station or convenience store in a configuration that resembles a sunroom or porch on a house Comp sheet: a form on which bartenders record drinks that are given away Comps: free food or drinks authorized by management Corrosion-resistant materials: materials that maintain their original surface characteristics under prolonged influence of the food with which they are in contact, the normal use of cleaning compounds and bactericidal solutions, and other conditions Start Your Own Restaurant and More į Cross contamination: occurs when bacteria, chemicals, etc., from one product are allowed to come into contact with another product Cupping: a process professional coffee-bean tasters use to determine the quality, acidity, and aroma of beans for selection in their blends; the process involves steeping the coffee beans, as with tea leaves, then smelling and tasting the brew at different temperatures as it cools Curb sign: a sign placed outside a business for the posting of specials, menus, or artwork Dayparts: a restaurant-industry term that refers to various meal cycles that occur throughout the day; typically breakfast, lunch, dinner, and early evening Dramshop laws: statutes that impose a special liability on those in the business of producing, distributing, and selling or serving alcoholic beverages to the public Dual-branding: when two or more brand-name operations are located in the same retail space, working cooperatively; also called dual-concepting Food-contact surfaces: surfaces of equipment and utensils with which food normally comes into contact and surfaces from which food may drain, drip, or splash back onto surfaces normally in contact with food Free pour: pouring alcohol without a measuring device Front of the house: the parts of a restaurant the customer visits, including the customer service area, bar, and dining room HVAC: an acronym for heating, ventilation, and air conditioning Kitchenware: all multiuse utensils other than tableware Meat jobber: a distributor that specializes in portion-controlled meat supplies for restaurants Mystery shopper: someone who visits a restaurant as a customer in order to evaluate its performance Online reputation management (ORM): the practice of monitoring the internet reputation of a person, brand, or business and taking appropriate action to deal with negative mentions Pass station: the area of a restaurant where food is passed from the kitchen to the wait staff Peel: a long-handled, shovel-like implement used by bakers to move bread, pizza, and other items around in (or out of) an oven 270 į Glossary Robusta beans: supermarket-grade coffee beans that can be grown in any tropical or subtropical climate and are cultivated for their ease of production as opposed to their taste Safe materials: articles (including metal, plastic, and ceramic utensils; dishes; food storage containers; pots and pans) manufactured from or composed of materials that aren’t expected to affect, directly or indirectly, the characteristics of any food Search engine optimization (SEO): the process of improving the visibility of a website or web page in search engines via unpaid or organic results Shrinkage: a term for inventory losses Single-service articles: any tableware, carryout utensils, or other items designed for one-time use Smallware: includes small kitchen and bar appliances, glassware, tableware, and flatware Table turns: how many times a table is used to serve a new customer Tableware: eating, drinking, and serving utensils for table use such as flatware (forks, knives, and spoons), bowls, cups, serving dishes, and plates Utensil: any item used in the storage, preparation, conveyance, or serving of food 271 Index A accessibility, 174 accountants, 169 accounting See financial management advisory boards, 171–172 alcohol liability, 205–208 alcohol licenses, 203 answering machines, 218 anti-fatigue mats, 32 appearance See image asset protection, 164–165 at-home dining, 11 attorneys, 168–169 B baby boomers, 3–4, bakeries, 113–124 See also operation basics baker/managers, 123–124 baking schedules, 115 billing procedures for, 241 bread production and sales, 115–116 bread-only, 114 coffeehouses and, 102 competition, 114, 116 equipment, 119–122, 215, 220 extending credit, 117 hot cases, 119 hours of operation, 17 image, 118 inventory, 122–123, 124 kitchen/production areas, 118 laying out, 118–119 locating, 115 markets for, 114, 117 office areas, 119 product lines, 114, 116–118 restrooms, 119 retail/display areas, 119 sales records, 117 sandwich shops and, 84 self-service racks, 119 shipping/receiving areas, 119 space requirements, 118 staffing, 123–124 wholesaling, 115, 117, 120 baker/managers, 123–124 balance sheets, 238 Start Your Own Restaurant and More į banking relationships, 169–170 banners, 181 bar managers, 18 baristas, 106 bars attracting guests to, equipment, 48 hours of operation, 17 inventory management for, 159–161 laying out, 207 liability with, 205–208 managers, 18 revenue from, 44 staffing, 18, 56 bartenders, 18, 55–56, 136, 137, 160–161 beans, coffee, 108–109 beer-and-wine licenses, 203 beverage centers, 47, 62, 68, 80 beverage-dispensing systems, 48, 155–156 Bevinco’s Liquor Inventory Control System, 159–160 billing, 241 bread See also bakeries history of, 113–114 ingredients for, 124 production and sales of, 115–116 in sandwich shops, 84 types of, 114, 118 bread-only bakeries, 114 bump-outs, 186 business interruption insurance, 168 business licenses, 202 business names, 165–167 business plans, 23–27, 253 business structures See structuring your business buspersons, 19, 20, 21, 52, 54, 55 C carryout service, 2, See also pizzerias; sandwich shops carts, 5, 178–179 cash registers, 170, 219–220 cash-flow statements, 238 cashier’s stations coffeehouse, 97 274 pizzeria, 61 restaurant, 43 sandwich shop, 78 casual-dining restaurants, 17, 42 catering businesses, 125–151 See also operation basics appeal of, 126 billing procedures for, 241 characteristics for success in, 126 client meetings, 140–141, 144 competition, 128, 130, 139 contracts, 141, 255 cooking/serving equipment, 132–134 dress code for, 135 employee rooms, 129 equipment, 130–134, 215, 220 estimates/quotes, 140–141, 150 etiquette and, 132 event production, 142–144 food prep staff, 136–137 food presentation in, 136 hours of operation, 17 inventory, 134–135 kitchen design, 129, 151 kitchen equipment, 130–131 locating, 127, 130 markets for, 127–128 menus, 138–139 niche markets for, 128 notice periods, 141 office areas, 129 off-premises catering, 126–127 packing lists, 142, 145–149 planning events, 141 pricing, 139–140 production areas, 129–132 project managers, 136 reasons for growth in, 125–126 receiving areas, 129 sandwich shops and, 74, 75 serving staff, 136–137 space requirements for, 129 staffing, 135–138 starting out in, 126 vehicles, 134 cell phones, 218 į catering business competitors, 128, 130, 139 coffeehouse competitors, 94–95, 107 differentiating from, 25–26, 107, 128 in food-service industry, 9–11 in menu pricing, 38 sandwich shop competitors, 75–76 computer consultants, 170 computers, 215 consultants, 30, 42–43, 64, 170 contests, 229 convenience stores, 10–11, 186 conventions, 232–235 cooking area design basics, 31–32 cooks, 17–18, 21, 53, 54 copy machines, 215 corporations, 164–165 cost reduction, 245–247 county permits, 204 coupons, 228, 230 credit policies, 117 credit/debit card payments, 243–244 credit/debit card processing equipment, 220 creditors, 245 criminal backgrounds, employees with, 191 customer areas, 46 customer databases, 44 customer feedback, 255–256 customer service, 20, 253–254, 256, 257 Index chains, 8, 10, 75–76, 94, 116, 185 chairs, 30–31 See also seating check payments, 244–245 chefs, 17–18, 53, 54 chicago-style pizza, 60 chief bartenders, 18 chief hosts, 18 child labor laws, 196–197 child-friendly establishments, 6, cleaning services, 21 closures, 15 co-branding, 4, 5, 185–186 cocktail parties, 137 coffee, 92–93, 96, 98, 105, 108–110, 155 coffee bars, 98 coffee cafes, 96 coffee industry, 91–93, 95–96 coffeehouses, 91–112 See also operation basics bean storage/display, 99 coffee aroma in, 95 coffee knowledge and, 108–110 competition, 94–95, 107 customer service areas, 97–98 daily work plans, 109–111 equipment, 100–104 history of, 92 hours of operation, 17 inventory, 104–106 laying out, 97–99, 111–112 markets for, 107–108 ordering coffee beans, 105 production areas, 99–100 profit margins of, 93–94 reasons for frequenting, 93 space requirements, 97 staffing, 106–107 waiting and seating areas, 97–98 coffeemakers, 100–104 comfort foods, commercial attorneys, 169 community relations, 229–230, 255 company names, 165–167 competition bakery competitors, 114, 116 D decaffeinated coffee, 105 delicatessens, 75 See also sandwich shops delivery services, 59 design consultants, 30, 42–43, 64, 170 differentiating from competition, 25–26, 107, 128 dining area design basics, 29–31 dining etiquette, 132 dining in, 11 dining room managers, 18 dishwashers (people), 21, 53 dishwashing area design basics, 32 dishwashing equipment, 47, 83 distributors, 126 275 Start Your Own Restaurant and More į doing business as (dba), 166 domain names, 253 dramshops, 206 dual-branding, 4, 5, 185–186 E employee benefits, 195–196 employee hygiene, 208–209 employee recognition, 256–257 employee rooms, 33 employment eligibility, 191 empty nesters, equipment bakery, 119–122, 215, 220 bar, 48 cash registers, 170, 219–220 catering, 130–134, 215, 220 coffeehouse, 100–104 credit/debit card processing, 220 dishwashing, 47, 83 leasing, 213 office, 211–212, 214–217 pizzeria, 64–68 purchasing, 212–214 receiving/storage, 212–213 restaurant, 46–48 sandwich shop, 79–84 security, 220–221 tableware, 46, 48–49, 63, 67, 80, 83, 132–133 telecommunications, 217–218 used, 213–214 vehicles, 220 espresso machines, 100–104 ethnic restaurants, 42 exhibition cooking, 31 exit plans, 257 F Fair Labor Standards Act (FLSA), 196 families as business partners, 254 as employees, 254 family-style restaurants, 41, 46 fast-food restaurants See quick-service restaurants 276 fax machines, 216 financial management billing, 241 business plans and, 26 check payments, 244–245 credit policies, 241–243 credit/debit card payments, 243–244 creditors, 245 equipment costs See equipment funding sources, 238–241 payroll costs, 51 record keeping, 238 reducing costs, 245–247 taxes, 243 fine-dining, 38, 46 fire department permits, 203 food and party catering See catering businesses food courts, 186 food preparation design basics, 31–32 food presentation, 33, 34–35, 136 food trucks, 5, 179–180 food-borne illnesses, 209 food-service businesses bakeries.See bakeries buying existing, 183–184 catering businesses See catering businesses coffeehouses See coffeehouses failure of, franchising, 184–185 market categories, 2–4 operations See operation basics pizzerias See pizzerias restaurants See restaurants sandwich shops/delicatessens See sandwich shops starting out in, 5, 13–16, 252 food-service consultants, 30, 42–43, 64, 170 food-service industry competition in, 9–11 employment statistics, 187–188 growth in, 1–2 outlook for, trends in, 5–9 į G gas stations, 186 general business consultants, 170 Generation X, 3, Generation Y, gift basket services, 182 gift certificates, 227 grand openings, 225–226 grocery stores, 10–11, 76, 114–115, 116, 175 H hand-washing, 208 headsets, wireless, 46 health department permits, 202 hosting staff, 18, 19, 55 hosting stations, 43, 61 hot cases, 119 hot chocolate, 105 human resources See also staffing child labor laws, 196–197 employee benefits, 195–196 employee recognition, 256–257 employees with criminal backgrounds, 191 employment eligibility, 191 evaluating applicants, 192 feedback to employees, 256–257 food-service employment statistics, 187–188 job applications, 189 job descriptions, 188, 192 minimum wage, 197–198 pay scales, 188 record keeping, 192, 197–199 recruiting, 189–191 seniors as employees, 190 taxes, 198–199 theft, employee, 199–200 tipped employees, 54, 198–199 training, 193–194, 198 workers’ compensation insurance, 195 young people as employees, 190 human resources consultants, 170 Index franchising, 184–185 freeze-dried-coffee, 155 frequent dining clubs, 228 friends as business partners, 254 as employees, 189–190, 254 full-service restaurants, 17 funding sources, 238–241 fusion dishes, I iced coffee, 96 image attracting customers and, 79 consistency in, 118 food presentation and, 33, 34–35, 136 legal structure and, 164 marketing and, 233 sanitation and, 79, 208 training employees and, 194 uniforms and, 19, 49 informal buffet dinners, 137 insurance, 167–168, 195 insurance agents, 168, 169, 170 internet access, 215 internet sales, 182 interviewing applicants, 192 inventory See also under specific foodservice business type by name beverage systems and, 155–156 buying, 83, 153–158 controlling bar losses, 159–161 hidden costs in, 158–159 lead time in, 154 managing, 153–155, 157, 158 receiving procedures, 158 safety margins in, 154 storing, 158 tracking, 159 inventory audit systems, 159–160 inventory control, 157 invoice inserts, 247 invoices, 117, 241 IT consultants, 170 J janitorial services, 21 277 Start Your Own Restaurant and More į job applications, 189 job descriptions, 188, 192 K kiosks, 5, 178–179 kitchen design basics, 29–30, 31–32, 43 L labor regulations, 196–198 lawyers, 168–169 lead time, 154 leasing equipment, 213 leasing issues, 175, 177–178 legal structures, 164–165 liability, 204, 205–209 liability insurance, 167–168 liquor control systems, 160–161 liquor liability, 205–208 liquor licenses, 203 locations carts/kiosks, 5, 178–179 choosing, 173–174 existing structures, 174 food courts, 180 food trucks, 5, 179–180 pop-up restaurants, 180 retail stores/facilities, 174–178 side-of-the-street issues in, 179 logo items, 183, 225 losses, bar, 159–161 M mail order operations, 181–182 mailing lists, 181–182 maitre d’s, 18 managers, 18, 51–53, 188 market research, 24–25, 252 market trends, 225 marketing business names and, 165 community relations in, 229–230, 255 coupons, 230 defined, 224 domain names and, 253 grand openings, 225–226 image and, 233 invoice inserts, 247 278 market trends, 225 marketing plans, 223–224 media in, 230–232 message in, 233 promotional logo items, 183, 225 promotions, 226, 227–-229, 231 samples from menu as, 234 with social media, 226–227 to tourists, 228 trade shows, 232–235 word of mouth, 223–224 marketing consultants, 170 marketing plans, 223–224 matting, 32 meat jobbers, 126 media, 230–232 menus for catering businesses, 138–139 importance of, 41 menu promotions, 228 nutrition labeling in, 36 popular items in, pricing, 35–36, 38 specials and, 229 trends in, 6–8 merchandising, 33, 34–35, 136 message, 233 microroasteries, 96 midscale restaurants defined, 38 hours of operation, 17 menus, 41 milk, 155 minimum wage, 197–198 mission statements, 26–27 mobile food industry, 179–180 money management See financial management multibranding, 185, 186 music licenses, 204 N naming your business, 165–167 niche markets, 24–25, 96, 128, 252 nutrition labeling, 36 nutrition-conscious customers, į P paper shredders, 217 parking, 176–177 partnerships, 164–165 party catering See catering businesses pay scales, 188 See also staffing payroll taxes, 243 phones, 217–218 photocopiers, 215 pizza crusts for, 58, 70 making, 58 popularity of, 57–58 styles of, 59–60 toppings for, 61 pizza ovens, 64–65, 68 pizzerias, 57–72 See also operation basics beverage centers, 62, 68 cashier’s stations, 60–61 dining areas, 62–63 equipment, 64–68 full-service, 58, 60, 61, 63, 67, 72 hours of operation, 17 inventory, 69–70 laying out, 60–64, 71–72 locating, 62 options, 58–59 order/pickup counters, 61 pizza making, 58–60, 61, 66 popularity of pizza and, 57–58 production areas, 63 restrooms, 62 setup costs, 60 space requirements, 60 staffing, 70 storage areas, 63 to-go, 58–59, 60–61, 63, 70, 71 waiting areas, 60–61 portion sizes, 35 postage scales/meters, 216 presentation, food, 33, 34–35, 136 pricing, 35–36, 38, 156 printers, 215 processed-food distributors, 126 production areas in bakeries, 118 in catering businesses, 129–132 in coffeehouses, 99–100 cooking areas, 31–32 design basics, 29–30, 31–33 dishwashing areas, 32 employee rooms, 33 food preparation areas, 31–32 office areas, 33 in pizzerias, 63 Index O office areas, 33 office equipment, 211–212, 214–217 off-premises dining, 2, See also pizzerias; sandwich shops online communications, 219 operating structures, 164 operation basics See also specific foodservice business type by name business plans and, 23–27, 253 cooking areas, 31–32 dining area design, 30–31 dishwashing areas, 32 drive-thru service, 20 employee rooms, 33 food preparation areas, 31–32 furniture and fixtures checklist, 35 hours of operation, 16–17 lighting, 34 menu nutrition labeling, 36 menu pricing, 35–36, 38 merchandising, 33, 34–35, 136 office areas, 33 production area design, 31–33 receiving areas, 32 sanitation, 21, 36 scheduling employees, 17–18, 51, 54, 136 seating, 30–31 service procedures, 19–20 setting up your facility, 29–30 storage areas, 32 ventilation systems, 33–34 waiting area design, 30 overstocking, 157, 159 ownership structures, 164–165 279 Start Your Own Restaurant and More į receiving and storage areas, 32–-33 in restaurants, 45 in sandwich shops, 77, 79 professional services, 168–170 profit and loss (P&L) statements, 238 profit margin, 156 project managers, 136 promotional logo items, 183, 225 promotions, 227–-229, 231 Q quick-service restaurants as competition for sandwich shops, 75 defined, 9, 38 hours of operation, 16 value meals in, 43 R receiving area design basics, 32 receiving procedures, 158 recipes, consistency in, 254 record keeping, 192, 197–199, 238 recruiting, 189–191 refrigerators/freezers, 47, 212 regulatory requirements complying with, 201–202 food storage, 208 licenses and permits, 202–205 liquor vending, 205–208 restrictive ordinances, 175 sanitation, 208–210 relatives, as employees, 189–190 rent-advertising relationship, 177–178 restaurant consultants, 30, 42–43, 64, 170 restaurant designers, 30, 42–43 restaurant operation basics See operation basics restaurants, 37–56 bar equipment, 48 bars, 44 basic operations See operation basics cashier’s stations, 43 categories of, 38 concepts for, 39–42, 257 décor, 46 dining areas, 45 280 dishwashing equipment, 47 hosting stations, 43 hours of operation, 16–17 inventory, 49–50 laying out, 42–46, 56 locations, 39, 40 managers, 18, 51–53 markets for, 37–39 menus, 41 paper products, 48 production areas, 45 production equipment, 46–47 receiving/storage equipment, 47 retail centers, 43 setup costs, 46–50 space requirements, 42 staffing, 51–56 tableware, 46, 48 uniforms, 49 waiting areas, 43, 44 restrooms, 19, 31, 78, 119, 233 retail roasters, 96 roasting coffee, 96, 108 rubber mats, 32 runners, 52, 54 S safety margins, 154 salaries, 188 See also staffing sales volume, 174 sandwich shops, 73–89 See also operation basics attention-getting devices, 79 catering service, 74, 75 competition, 75–76 customer service areas, 77–78 décor, 79 delivery services, 74 dining area equipment, 83 dining areas, 78 dishwashing equipment, 83 equipment, 79–84 hours of operation, 17 image, 79 inventory, 84–86 laying out, 76–79, 88–89 į scheduling employees, 17–18, 51, 54, 136 starting out, 5, 13–16, 252 startup funds, 238–241 state licenses, 204 steakhouses, 40 stock See inventory storage area design basics, 32 storing inventory, 158 structuring your business advisory boards, 171–172 business names, 165–167 insurance, 167–168 legal structures, 164–165 operating structures, 164 professional services, 168–170 supermarkets, 10–11, 76, 114–115, 116, 175 suppliers, 156–158, 255 supplies See inventory Index office space, 79 production areas, 77, 79 production equipment, 80–81 reasons for success of, 74–75 receiving and storage areas, 78 receiving/storage equipment, 84 restrooms, 78 retail/service area equipment, 81 space requirements, 76–77 staffing, 86–87 tableware, 80 uniforms, 81 sandwiches, 73–74 sanitation, 36, 79, 208 seafood restaurants, 40 seating chairs, 30–31 for children, 41, 46 in waiting areas, 44, 61 security equipment, 220–221 seniors as customers, as employees, 190 serving staff, 19–20, 21, 51, 52, 54, 55 shortages in inventory, 157, 159 shredders, 217 Sicilian pizza, 60 sign permits, 203 signage, 181 signature dishes, social media marketing, 226–227 soft drinks, 155 software, 215 sole proprietorships, 164–165 sponsorships, 228 staffing See also human resources bakeries, 123–124 bars, 18, 56 catering businesses, 135–138 coffeehouses, 106–107 for formal dinners, 137 pay ranges, 188 payroll costs, 51 pizzerias, 70 restaurants, 51–56 sandwich shops, 86–87 T table-top technology, 31 tableware, 46, 48–49, 63, 67, 80, 83, 132–133 takeout service, 2, See also pizzerias; sandwich shops target markets for bakeries, 114, 117 for catering businesses, 127–128 for coffeehouses, 107–108 legal structures and, 164 for restaurants, 37–39 taxes, 198–199, 243 tea, 105, 155 telecommunications equipment, 217–218 telephones, 217–218 theft, employee, 199–200 themed restaurants, 39 tip withholdings, 199 tipping baristas, 106 buspersons, 54, 55 catering businesses, 143 in sandwich shops, 87 serving staff, 54, 55 281 Start Your Own Restaurant and More į taxes and, 198–199 to-go operations, 2, See also pizzerias; sandwich shops toll-free numbers, 218 tracking inventory, 159 trade shows, 232–235 trademarks, 166–167 traffic density, 175–176 training employees, 193–194, 198 U uniforms, 19, 49, 68, 81 upscale restaurants defined, 38 hours of operation, 17 menus, 41 used equipment, 213–214 V vehicles, 220 vendors contracts with, 249–250 282 negotiating with, 248–249 selecting, 248 ventilation systems, 33–34 voice mail, 218 W wages See pay scales waiting area design basics, 30–31 waitstaff, 19–20, 21, 51, 52, 54, 55 web designers, 170 websites, 218, 253 wholesale grocers, 126 word of mouth, 223–224 workers’ compensation insurance, 195 Y young people as employees, 190 Z zoning laws, 204 ... before you can differentiate 25 Start Your Own Restaurant and More į Bright Idea Your business plan should include worstcase scenarios, both for your own benefit and for your funding sources You’ll... answer questions and take meal orders reliable results The server should be thoroughly familiar 19 Start Your Own Restaurant and More į Stat Fact Eighty percent of restaurant owners started their... widespread, varied, and significant When you open a restaurant, you’ll be competing not only with other similarly Start Your Own Restaurant and More į themed restaurants but also with every restaurant