There are risks inherent in any kind of business. What difficulties can be encountered when opening your own bar?
Unsuccessful choice of location and location of the bar. You can easily overestimate the traffic or underestimate the competitive environment. In choosing the location may be missed some of the nuances that will manifest themselves in the work. Therefore, it is necessary to carefully analyze the outlet and take into account various factors;
Increase of prices for raw materials, unscrupulous suppliers, low-quality raw materials. In the first case, there is a risk of increased costs and, consequently, the selling price, which can have a negative impact on demand. In the second case, the risk is associated with disruptions in production. It is possible to reduce the probability of these threats by competent selection of suppliers and inclusion of all the necessary conditions in the contract, which provide for material responsibility of the supplier in case of their violation;
The reaction of competitors. Since the catering market is quite saturated and competition is high, the behavior of competitors can have a strong influence. To minimize it, you need to build your customer base, constantly monitor the market, introduce customer loyalty programs, create competitive advantages and unique offers;
Refusal to grant a lease of premises or increase in the cost of rent. To reduce this risk, you need to enter into a long-term lease agreement and choose your landlord carefully;
Decline in effective demand. This risk can be leveled out by developing effective loyalty programs, including discounts, happy hour services, etc;
Problems with personnel, which means low qualifications, staff turnover, lack of motivation of employees. This can lead to a decrease in sales efficiency, reduced revenue, the formation of a negative image of the institution. Reduce this risk is easiest at the stage of personnel selection, hiring employees who meet all the requirements. A system of bonuses for employees should also be envisaged;
Equipment failure and production downtime. Regular maintenance of equipment in order to maintain its operability will help to level out the risk;
Product spoilage due to low demand, breakdown of storage equipment, improper storage, planning errors. For the restaurant business, this risk has a high degree of probability. Product surplus can occur for two reasons: first, due to low sales and unpopularity of some dishes; and second, due to errors in forecasting sales volume. It is possible to reduce this risk by competent planning and forecasting, reviewing the assortment, excluding unprofitable dishes from the menu. Mistakes in food storage, breakdowns in refrigeration equipment can lead to food spoilage. Avoiding this threat is possible with the training of staff and supervision of their work, as well as regular maintenance of equipment;
Reducing the reputation of the institution in the circle of the target audience with errors in management or reducing the quality of services. This can be avoided by constant monitoring of product quality, feedback from customers of the institution and corrective measures.
Drawing up a detailed business plan, competently organizing work at each stage of the project and providing for the main risks, it is possible to build a profitable and promising business in catering.