Looking to open a restaurant but unsure of where to begin? As it happens, the moment right now is ideal for making that leap. According to research, the food service sector is set to grow at a CAGR of 3.6 percent per year to $4.2 trillion by 2024.
But launching your food establishment might be intimidating, especially given the challenges surrounding startups. Given their relatively limited start-up costs and amiable features for those with minimal experience in the industry, many individuals are exploring food delivery and cloud kitchen options.
E-commerce has made it possible to interact and conduct business with clients all over the world. However, the practice of selling food online can be unfamiliar to many aspiring business owners. In this article, we share the most important tips to help you start your home-based online restaurant.
Starting a food business from your home is beneficial as it helps you save on rent, storage, utility bills, and food bills. You can manage your restaurant while performing even the mundane activities of a regular day. The expenses that you save can be channeled into marketing your restaurant or purchasing ingredients and equipment for your commercial kitchen. Residential areas can attract the best and most consistent flow of customers, generating revenue with ease. Also, with the advent of online ordering for restaurants, the selling part has become much easier.
Go ahead and open that restaurant you have always wanted from the comforts of your home. We’ll tell you how.
Thanks to advanced technology and uninhibited public demand for takeout, it has become possible to manage your business from home with ease while expanding your reach. If you are committed to starting your restaurant, here are some steps you can take to do so successfully from home:
Finding Your Niche
It is essential to understand what you want and expect from your establishment. You can research ongoing trends in the hospitality industry to understand the type of environment, food, and service you want to offer to your customers. Using applications like Google Trends helps you explore dishes and styles popular in the industry today.
Creating a Business Plan
Creating a business plan should be the first step in launching any kind of enterprise. Business plans act as a roadmap for entrepreneurs when establishing their organizations. Business plans are created from a wide range of information, including your understanding of the market, your ownership arrangement, and your financial capabilities.
Registering Your Business
You must register as a food business with your local authority now that you are aware of what you are selling and where it is being produced. The process of procuring the licenses and permits for your food delivery service can seem like a daunting task. Since you become eligible for inspection as soon as you’ve established your restaurant, it is crucial to perform the necessary due diligence beforehand. The government agencies responsible for food safety urge registering your company as soon as possible so that they can offer you direction and advice on how to get ready for inspections. It is a good idea to think about training both yourself and your employees in food safety and hygiene regulations.
There are several licenses and permits that you will need to register for before opening your commercial kitchen.
Some of the permits you will need are:
Make sure to look into the licenses and permits specific to your establishment’s cuisine and location to ensure you remain compliant.
Observing Health and Safety Regulations
A restaurant poses numerous safety dangers due to its use of sharp objects, open flames, and confined spaces. It’s crucial to be aware of these risks and take all the reasonable steps to reduce them if you want to keep your business safe for both staff and consumers.
Guidelines you can follow to comply with health and safety rules include:
- Educating your staff about restaurant safety procedures
- Using and training the staff to handle equipment with care
- Practicing fire safety procedures
- Updating and implementing fire safety equipment
- Requiring your staff to wear safety equipment in commercial kitchens
- Choosing the Right Kitchen Setup
Although you won’t need a large initial investment to launch an online restaurant, you will definitely require the following supplies and equipment:
You will need proper commercial kitchen equipment like refrigeration units, ovens, mixers, freezers, and utensils. Along with this equipment, you will also need a kitchen space that is large enough to create meals without interruption or mishaps. So that you can keep the food for longer periods, you might want to think about getting a commercial-grade refrigerator.
Let’s say that both meal preparation and delivery are part of your business concept. In such a situation, a vehicle to transport food is the second-most important investment. The vehicle can be a critical asset to your business.
A website and mobile app are necessary if you want to create an ordering platform and remain relevant in the market. By doing this, your customers will be able to place orders through a website or an app, increasing your reach in your area.
As you can see, there is a lot to consider when you are starting an online restaurant from scratch. Thanks to the growth of delivery services and cloud kitchens, however, managing foodservice enterprises from your home has gotten simpler and much more effective. Now is the perfect time to follow your long-time passion to own a restaurant!
Damon Shrauner, Senior Sales Consultant and VP on B2B Sales at CKitchen, working in the food service equipment sector since 1994. With his expertise in market analysis, product placement, sales and project management, he will always tell you what to do for the best of your business.