Expanding a business is as complex as starting one in the first place. An expansion comes with challenges and turmoil. You must have faced several difficulties while setting up your first few restaurant ventures. So you are already familiar with the industry and the problems generally faced on the ground level. But, when you commence the journey of adding more restaurants to your chain, you could find it somewhat overwhelming. What generated returns for you the first time might not essentially work the second – and that is why expansion is such a grind. But if you get it right, you would have dug yourself a gold mine.
Here are some tips and tricks to expand your restaurant business, generate consistent profits, and build your market presence.
- Rethink your business strategy
Firstly, you need to evaluate whether your current business model is unique and profitable. You need to identify your moat, i.e., an idiosyncratic talent that you possess to set you apart from the competition.
Rethink whether an expansion in the current scenario is the right thing to do. Remember, the initial investment required for expanding your restaurant business could be a lot. You could consider a business loan to make your expansion plans a reality. Work on the story that you will like to tell your customers through your brand.
- Define your expansion goals
Good business planning is crucial because it will clarify objectives and set the path you need to follow to achieve those objectives. Both short-term and long-term goals need to be defined. You will have to be clear about how many restaurants you want to open. You should have the budget to support the plan. When you plan for your financial needs beforehand, it becomes cheaper to arrange them. Decide where you want to obtain an SME loan and how you can avail of the lowest business loan interest rates. You can use the Business Loan EMI Calculator any time to make a sound financing decision.
If you choose to continue with your existing cuisine in the new restaurants, you should keep the restaurant name and menu the same to establish brand identity. The taste of dishes served at different outlets must remain the same to enable word-of-mouth publicity. Minute variances to keep up with the culture of another venue could be a possibility.
- Market Research
Before venturing out, ensure that you ‘Know Your Customer.’ Market research will help you identify your customer base. Make a customer identity outline to target the right audience. Define the age range and demographics of customers that are likely to be interested in your cuisine. This list should work as a customer target. Accordingly, it would help narrow down the geographical areas where you want your next restaurant to be.
The level of competition you face in your business venture could either make or break you. Again, your business strategy has to define the kind of competition you are competent to take on. The competition in your segment will impact the quality of your food and the price you can charge. Offering premium food in an area where people prefer having cheap ready-to-eat food items is not a good idea. Hence, understand your audience and match their requirements with what you have to offer.
Consistent efforts are required to generate brand value. There will be many hurdles coming your way. To fight them all, make sure you have enough financial backing to consistently keep you in the game. If you happen to face financial shortages at any time of your journey, you can consider a business loan after checking your business loan eligibility. Getting a loan nowadays has become extremely easy. A loan can help you hire great talent that can set you apart from the crowd. For more information, please visit Tata Capital’s website.