Starting, Owning and Marketing A Restaurant Blog|Starting and Owning a Restaurant - Construction, Planning, Marketing, Opening and Managing a New Restaurant

Whenever you are waiting on a municipality to issue your building permits, time is like a money pit that you know is filling up. If you have a good relationship with your contractor, ask him about ways to short cut the building process by taking a few calculated risks now.

Calculated risks are those that you know the penalty under a worst case scenario. We decided to take a couple of these risks this week. Since we had a demolition permit, we decided to make the cuts in the concrete floor for drains, water lines and a grease trap. Technically this falls under plumbing and should not be done until the drawings are approved.

The risks? First, the county could “red tag” the job and fine us $25-$100 for work done without the proper permit. Second, our architect’s drawings may not be approved as submitted for the plumbing permit and we may have to change some aspects of the work already done.

Since every day you cannot move forward, the delay is costing you a day towards your projected opening date. In this case we are attempting a November 15th opening. Delays could cost us significantly if we miss the holiday season. The risk-reward ratio is worth the gamble. Only you and your contractor can make the decision.

In light of our decision to get a few things done while waiting on all the permits, we:

• made the floor cuts, removed the cement and ran the major plumbing for drains.
• placed our grease trap in the ground and connected it to the dish drain, floor drain(s) and three compartment sink area. Keep in mind, none of the equipment is installed. However, our plans are used to locate the general area.
• completed all the major circuits to boxes in the general area. These are called “homeruns”. From these homeruns, individual circuits will feed various equipment through out the building.
• started bringing various building components into the space such as metal framing, conduit, wiring and various small parts for construction.

This week we also sent out our projected equipment list to four equipment suppliers for quotes, both new and used. We received two of the quotes back by the end of the week. Suppliers were told we would pay for any equipment purchased now, but they must hold it for up to thirty days before delivery. This allows us to take advantage of any bargains that may come along. More on this process in another post.

Even though permits have not been issued, we continue to do minor work that is allowed ostensibly under our demolition permit. In the last few days we have:

• Run conduit (without wiring) to major circuit boxes in the ceiling. From these boxes, we will eventually run wire to the various circuits.
• Made floor cuts with cement saw to run floor drainage and from the drains according to plans.
• Met with building management company to go over issues like removing an undesirable trash receptacle at the front of building, repair and painting of front area, obtained their complete sign-off on formal plans and discussed their communication with another tenant to get access to their space for some duct work.

One close mistake is the ordering of the awning lighted sign that is on the front of the building. The building management informed us that they are changing the color scheme of the building. If our sign had been in production, we would have the wrong colors ordered. Management companies don’t think about things like this when going through their process.

Menu Dilemmas and Design

While this restaurant will be the second location for a particular concept, our facility is larger and the kitchen will be able to have more equipment to expand a few menu items. In addition, our location is more conducive to a larger amount of carry out business. There are many more offices, businesses and traffic within a two mile radius of this location.

Our marketing plans will include a strong effort to get breakfast and lunch phone and fax orders. We hope to upgrade our coffee based products, pastry offerings and quick sandwiches. We also will place a few more healthy items on the menu, since there are a high ratio of women to men in most of the office environments. Salads and soups will be important.

Recipe creation, testing and alternative items from suppliers are being explored. Next week there is a major food show that we will attend for ideas, pricing and availability.

A few of our thoughts can be viewed by clicking here.

The waiting for approval to begin construction allows time for more planning and trying to cut down on other delays that can occur during the building process. In the last few days we have:

• Begun working on the prototype menu design and a couple of new menu items.
• Pressure cleaned outside areas and walk-in refrigerator/freezer that is outside the rear door.
• Got in the quote on a high volume ice machine.
• Listened to a proposal for the installation and contract for a dish washing machine, chemical system and cleaning system.

Restaurants have a number of options when it comes to dish washing. The machines cost anywhere from $4000 to $10,000 depending on the volume and style. However, there are programs that reduce the upfront costs and provide service. Both US Foodservice and Sysco can offer leases for $50 to $70 per month. You get the machine, installation and full service at no charge with the lease. You must buy their chemicals. The program is an excellent option for most restaurants - although you are committing to do business with that particular food wholesaler.

Ice machines also present options for restaurants. For large volume operations, my recommendation is to have two medium size machines rather than relying on just one large ice source. Smaller ice needs can be handled by one machine that can produce 50 pounds per day for a small undercounter unit or 500 pounds per day in a large capacity ice maker.

Ice machines can be leased or purchased with costs running from $500 to $5000. I have chosen to lease my ice machines for two reasons. First, immediate service is a necessity. When an ice machine goes down, you need someone there within an hour or two - not a day or two. Second, the companies who lease the machines generally will supply you ice while repairs are made.

For our new restaurant, we will be leasing at $185 per month for a medium volume machine. We could buy the same machine for about $3000, but service in this area is questionable at best.

For those of you following the adventure to open a new restaurant, there are many roadblocks, frustrations and wasted time. However, one of the fun things is developing food items, ideas and testing for menu items. While this new restaurant will be a second location of an existing concept, there will be differences. Our demographic is slightly different and we want to have signature items at each location.

To develop your menu, it starts with ideas and, of course, your theme. The new restaurant is a slightly upscale breakfast and lunch operation (as a side note, we call lunch “Blunch”, since we serve breakfast entrees all day).

The steps are:

1. Start wilth ideas that you accumulate. Some may be stored in your head for years. Others you will come across as you move forward. Write them down. We have chosen to share the thoughts with a page dedicated to menu ideas. Click here to see some of the beginning thoughts.
2. Each menu item has to be tested and re-tested to create a recipe that will work in the volume of a restaurant kitchen. Just because you can produce a dish at home doesn’t mean it can be efficiently produced in a large volume.
3. Make sure suppliers can furnish the ingredients and your inventory and equipment can support the item.
4. Ask for opinions from someone who will share the honest thoughts with you. Family and friends don’t always give the best test results.
5. Don’t wait until two weeks before your opening to begin the process. You will have even more pressures just prior to opening. In this case we have at least 6 to 8 weeks.

Remember, your job is to meet or exceed the guest’s expectations. Don’t let your ego build recipes that only you may like. You can visit this link on a regular basis to view the ideas as we add to the list.

Here is a list of accomplishments in the last few days:

• In a meeting with the electrical contractor, general contractor and architect, we have finalized all the plans for submission to the county to issue permits
• On Friday, September 5th, we passed our first inspection for the demolition of the space.
• We have had workers prepping walls by filling holes and sanding rough spots.
• We committed to a company for booths to be delivered in about 6 weeks.
• Quotes for table tops were received.
• A privacy fence was built Friday around the rear of the space to encompass items like the walk-in, ice machine, grease recepter and an area where we can store seasonal items. Bottom line is it covers a lot of our mess. We want to be neighborhood friendly.
• Committed to the hood contractor for a four week delivery and installation of the hood and fire suppression system.
• Signed for permit to bring natural gas into location.

The goals for the coming week include:

• Getting preliminary work done and materials purchsed for the electrical contractor.
• Push for permits with the county (normaly a four week process).
• Develop a six week marketing plan covering the period two weeks prior to opening and the 30 days after.
• Determine decorating and finishing look and fixtures.
• Getting equipment bought and held for delivery.
• Getting quotes on tile and carpet needs.

Currently we are waiting on a permit to be issued for fire separation between the units. That will be the first major construction project that will be followed by ceiling replacement and framing.

Now that plans are done and permit applications can be filed. it’s time to tie the contractor down for completion dates. Timing is important to eliminate delays due to poor scheduling. Many items have lead times such as the hood system. The hood is built to specifications. This week we need to:

• Settle on a hood contractor and get order placed for production.
• Get gas contractor into site.
• Start planning on floor covering and contractor.
• Get second bid on plumbing.
• Design privacy fence that will go around back entrance and see what type of permit is necessary.
• Make final minor changes to general layout like ceiling anchors for hanging shelves, size of server pick-up window, server area behind counter and server area in dining area.
• Goal is to be open in 60 days. Lofty goal!

This week the general contractor should be getting his demolition inspection, get permit for fire separation and start work. Get permits for framing and HVAC.