Think if you want to own a restaurant that caters to the high end market or if you want to open a burger joint or pizzeria. Pizzeria's and burger joints must be affordable. You profit may be smaller per order but you can make up for it by having a large market base. Everyone eats pizza and burgers. This is not a bad choice because of the popularity of the food.
If you decide on a pizzeria you will have to produce good tasting pizza at an affordable price. Profit margin may be slim but you can make up for it by increasing the volume of customers. Well, if you have noticed, most pizzerias are always full during meal times and probably at least half full during off-peak hours. Turnover is quick but it is also necessary to provide a lot of tables to get that volume you need to make a bug profit.
If you wish to own a restaurant that caters to the upscale market, you will need to find a location in an upscale neighborhood too or one in a business district. Fine dining restaurant presents the opportunity to raise your prices and earn bigger profit. Although patrons expect quality food and ingredients, you can still find a way to produce good tasting food that looks great on a plate. A lot goes into presentation when we speak of fine dining restaurants.
Now let's talk about family restaurants. This type of restaurant is a popular choice for those serious business people who want to own a restaurant. There's a lot of money to be made in family restaurants but it also entails more work than let's say a small cafe or pizzeria. Your menu will have to be quite extensive. Most family restaurants are also bigger than a typical diner or cafe. A family restaurant might need more funds to start but can also be very lucrative.
Another choice for those who want to own a restaurant is a diner. An affordable and fast service diner in a working class community would do great. Place your diner in a neighborhood saturated with industrial companies and factories. The blue-collar market may not want to pay more than $15 per meal but they are a huge market. You can achieve volume sales if your staff work fast. Your customers will also expect speedy service as they only have limited time to dine out.
There are many options if you want to own a restaurant. There are cafes, coffee shops that serve full meals, fast food franchises, and ethnic restaurants that serve exotic cuisine. Find out what kind of restaurant you really want to run and if your market or niche matches your restaurant concept. You really can't make a lot of money putting up a fine dining Indian restaurant in an industrial neighborhood.
Study the demographics and average income in your chosen location. Know more about how to own a restaurant before you open one so you don't lose money just trying to find your way in the restaurant industry.
