12 Action Points For Starting a Food StartUP : Entrepreneur

The interest for food startups and restaurants is on rise and it should be as it is one of the businesses that people can’t deny not to visit to. But, although being an undeniable choice, we witness that a majority of food startups and restaurant are stalling or laying off.

The reasons behind their stall can be any and many, but there are some elements to ensure that you stay on the right track and continue operating your business flawlessly. They are listed below, so let’s jump on to them.

Top 12 Tips Every Food Startup Should Know about

Naming The Business

Perhaps the most daunting choice to make, isn’t it? Whenever starting any business the major question that arises is “What should be the name?”. Understand that this is not just about naming your business, but creating value and making it memorable. Name your business in such a manner that it immediately conveys a message about your business and also is easy to relate to. Then you can hop on to designing the logo. Which again compels you to follow the same set of rules.

When you are into hospitality business this becomes even more daunting but immensely crucial for you as compared to any other business in any other business vertical.

Read: 8 Proven Steps to Create an Unforgettable Domain Name

Defining Your Target Audience

It’s much appreciated if you consider this, well in advance. Because you will serve what your audience needs. And it is recommended that you figure out that prior to opening up a food business. Chop off the masses that you don’t intend to target for your business. Once you have your target audience in sight, try conducting a small research on them to understand their needs, tastes, behavior, etc. This will help you a lot right since the inception.

Selecting The Right Location

Today, people don’t really bank on having the right location. They operate from wherever they can. True! That nowadays location is actually not that important as some may say, but a good location always serves well for a hospitality business. Analyse where your target audience groups, examine the cost of operating there, see how the surrounding and the locality is. This will help you a lot for operating a successful food or restaurant business.

Moreover, it’s always advisable to operate your business at a place where you stand a chance to make profitable business undertaking calculated risks, rather than chasing savings at all times. Savings is not the way of business.

Examining How Much Area Does Your Business Require

Now that you are through with the above-mentioned points, let’s analyse how much space do you really need to operate. If you operate within the city and target youth & family dine outs, then there is no point in constructing lodging, isn’t it? Forecast how much would you want to cater initially and over a period of time. Accordingly elect and distribute your space.

Remember this rule, 15%, 30% & 55% i.e. 15% space for lavatory, 30% for kitchen and the rest as diner. This rule is applicable and very efficient for restaurants.

Gathering Resources

The primary element here is “cash”. You need that, don’t you to buy resources to operate. Well, understand that you already have invested a lot and now is the time to save. Don’t unnecessarily make purchases of the goods that you may not require. Purchase only those that are essential for operating the business.

Hiring The Staff

Yet another crucial element for a food startup or a restaurant. Your staff determines the quality of your service. If you are planning to serve Italian or Mexican food, then hire a person who has through knowledge about it and also carries good experience. As when experience comes in, thus come productivity and quality.

This also where you can save some cost. Hire effective, productive and experienced people. As such individuals will do a lot more work as compared to a team of inexperienced employees.

Read: How To Be An Excellent Manager Without Being Bossy

Creating And Maintaining Quality

Determine the quality that you wish to practice. Share your vision with your team and set some quality parameters for your employees. Ensure that all your employees abide by those parameters and maintain it over a long period of time.

Not saying that once your business gets going, forget about quality but everything does require up-gradations and so does quality standards. Maintain your quality standards and you’ll see how easy it is to maintain customers.

Creating A Specialty

This can turn out to be the most important aspect of your food startup/ restaurant business. When in food business, it’s mandatory that you have some uniqueness in unlike others. Your quality of your specialty is what you will be remembered for.

Understand not everything that your serve can be your specialty. You can specialize in few of the many cuisines that you serve at your place. Talk to your chef, understand what are his/ her capabilities, what they are best at? Now, add some pleasant elements to it like no other and that there is your specialty. Understanding your chef’s capabilities is the key here. Never ask them to do something that they can’t. They will end up experimenting which will make your customers fall and ultimately your business will  suffer.

Leveraging Technology

Along with all the above, it is important that your fuse your business with technology. You will be amazed to see how well technology gets up with food business. Nowadays, web presence is the must, but having a pale plain thing is just too old. Instead, showcase your menu, encourage online ordering, encourage online table reservation, etc.

Along with the web do think about leveraging mobile technology. As the majority is now inclined towards mobile and along with that, it makes it effortless for customers to interact with your business if you are on mobile. A lot of amazing things can be done with the help of technology, only is you give it a serious thought.

Persistent Marketing

The word “Persistent” itself narrates all the story. You need to persistent and relentless when it comes to marketing. Leverage as many marketing platforms as your can. Go digital, go print, go old school they all work for any food business.

Provide offers, discounts, make smart use of promo codes. They all are very effective and yourself will identify the positive curve in the business chart. Also, you can go for organizing food events or competitions that showcase your brand.

Retaining Customers

This is as easy as difficult it can turn out to be. Your quality, service, specialty, ambiance, etc do play a major role in retaining customers but there are aspects apart from that, which encourages them to keep visiting.

To do this leverage technology. Take their feedbacks and work on them, take their contact information and keep them sending deals from time to time. If you can manage to list down their birthdays, anniversaries, etc. Then nothing works better. People love it when they are made feel special. Make them feel special on their special days. Offer them some astounding offers, discounts, group discounts on that particular special day and you will see them returning more than just often.


You have done all of the above and now that your food startup/ restaurant is operating smoothly, this is the time you should think about expansion. It may be branching out or may be franchising, either of them works.

Food business/ restaurant do have geographical limitations, but that is just restricted to a single entity of the business, will be a limitation if you have it across numerous cities? Definitely not.


Many consider food/ restaurant business as the game of investing and harvesting. That is so not true. If you have invested, then you need to protect and grow it, only then will see progress.

Many food businesses that I see nowadays are stalling and the reason to it may be that they are falling short on any of the mentioned points. So, if you have established or are planning to establish a food/ restaurant business, ensure that you incorporate the above in your business.

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