Café/restaurant
Introduction
So you've decided you want to run a café or restaurant. Perhaps you've been working in someone else's establishment for a while and feel the time is right to go it alone or maybe it's a lifelong ambition to cash in on your culinary skills. Whatever the reason, this guide will take you through the issues you need to consider and give you practical pointers on getting started.
Sector trends
In recent years the popularity of eating out has grown enormously. As a result there are now thousands of eating places in Britain offering a wide range of different types of cuisine at prices to suit all pockets. People have become much more adventurous and cuisine from many different countries is widely available. A new development - fusion cuisine - combines ingredients from different countries into new dishes. A trend toward healthy eating has led many restaurants to add healthy options, such as low fat and low salt dishes, to their menus. Concerns about the origin of foods and the impact of carbon emissions caused by 'food miles' have led more and more people to consider how their food purchases affect the environment. This has increased demand for locally sourced and organic foods, and led to a rise in the popularity of traditional British dishes. Demand has also increased for Fairtrade products and many restaurants have added Fairtrade foods and drinks to their menus.
The industry is very competitive as barriers to entry are relatively low and, when demand is strong, many new cafés and restaurants open up. Recent years have seen the expansion of multiple restaurant chains (such as pizza and pasta outlets) and these have intensified competition for the independent restaurant. Competition has also increased as a result of the enormous range of 'ready meals' now offered by the major supermarkets.
Although the popularity of eating out is forecast to continue to increase in the long term, diners increasingly want high quality food that is good value for money. This is likely to put prices under pressure. During the late 2000s food prices started going up sharply, but the economy weakened. Many cafes and restaurants found it very hard to increase their menu prices, but needed to do something to safeguard their profit margins. Some were forced to cut their portion sizes, while others sought out less expensive ingredients. The economy remained very weak during 2010, making it difficult for businesses like restaurants that rely on people having enough money to spend on non-essentials.
In 2009 the government introduced new laws making it illegal to use tips and service charges to make up staff wages to the level of the National Minimum Wage. The Department for Business, Innovation & Skills (BIS) has produced a code of best practice on tips for the catering industry. You can download this from the BIS website.
During the 2000s the Food Standards Agency introduced the 'scores on the doors' scheme for food businesses like restaurants. Under the scheme, businesses are encouraged to display the results of their latest food hygiene inspection outside their premises.
You will have to decide whether:
- demand will be high enough in your area to support your café or restaurant. If you plan to locate in a rural area, there simply may not be enough customers unless you are confident you can attract them from further afield
- your local economy is healthy - if your area has been unlucky enough to suffer from many business failures and factory closures recently your customer base is not likely to have much disposable income
- you will be able to compete against other eating-places in your area
- you will be able to keep customers loyal to you
The catering industry is well represented by different associations, including the British Hospitality Association and the Institute of Hospitality.
The weekly journal Caterer and Hotelkeeper and its sister website CatererSearch contain a wealth of articles and features of interest to those working in the food industry.
