Restaurant Ownership Is Not for Everyone
By Joseph Amato
My direct involvement in developing hundreds of restaurants in the last twenty-five years and the background and history of each of those projects have left an amazing legacy of culinary excellence throughout the U.S. that leaves me breathless at times.
Initially, I became involved in the restaurant industry in the late 1980s in the New York City area. Soon after, I fell in love with the varied mechanisms surrounding the restaurant industry—especially food preparation. Enough so that I was trained at a well-regarded culinary school to learn all I could about commercial food preparation. I have used these skills to develop several food offerings in the casual dining industry and a full-service Italian restaurant.
When I decided to become a full-time business consultant in the Washington, D.C. area in the 1990s, I realized that my years of experience in the restaurant industry allowed me the opportunity to become a valuable asset to potential restaurant clients with the ability to support their dreams in establishing their own restaurant concept.
One of the first restaurant projects I worked on as a consultant involved a small business owner in Loudon County, Virginia, who sought to start a unique restaurant concept in his neighborhood. I was able to assist him in successfully launching the restaurant. We recently ran into each other at the World Pizza Convention in Las Vegas this past week. In our discussions, he informed me that his initial restaurant concept had been modified substantially into a new food concept and had now grown to six locations throughout the Washington, D.C. area.
Twenty-five years later, my latest restaurant project included expanding an extremely well-known restaurant operation in the Arts District of Las Vegas. We assisted the restaurant owner with moving to a new adjacent location, purchasing their building, and tripling the seating capacity while expanding its already successful and highly regarded Italian-fusion-based menu. Coincidentally, we are currently working on expanding another successful restaurant operation on Spring Mountain Road, Las Vegas, into a new restaurant concept at The Bend, and another restaurant group is looking to launch a new Mexican-fusion restaurant project in the Centennial area of Las Vegas.
With my previous restaurant experience, I understood that the complex process involved in seeking to start or expand any restaurant business could be highly intense and demanding. Successful restaurant ownership requires a unique blend of personal characteristics, culinary skills, and entrepreneurial qualities due to the dynamic and demanding nature of the hospitality industry. Some of the essential characteristics for a restaurant owner include many of the following aspects to ensure potential business success.
To be a successful restaurant, the owner must have an absolute passion for food and hospitality, including a genuine love for food, cooking, and exceptional guest experiences. This passion drives innovation, quality, and the perseverance needed to overcome the everyday challenges of restaurant ownership.
Additionally, having business management experience, including understanding financial oversight and budgeting, marketing, and operational control, is crucial for a successful restaurant owner. An owner needs to make informed decisions that balance culinary creativity with the profitability and efficiency of the business operation. Effective leadership that inspires and motivates staff fosters a positive work environment and ensures the highest levels of service. Managing a culinary team also involves conflict resolution, training, and personnel management, requiring strong interpersonal and communication skills.
A sincere focus on customer satisfaction is essential to nurture repeat business and positive word-of-mouth effectively. This means not only meeting but exceeding customer expectations, handling complaints gracefully, and creating a welcoming atmosphere. The restaurant business is known for its high-pressure situations and unpredictability. The ability to remain calm under pressure, bounce back from setbacks, and manage stress is critical for personal well-being and business success.
That was especially evident during the COVID pandemic, that took a massive toll on restaurant operations nationally. The pandemic’s impact on the restaurant industry was significant, with many establishments facing challenges such as lockdowns, reduced capacity, and changes in consumer behavior. According to the National Restaurant Association in the United States, it was estimated that more than 110,000 eating and drinking places were closed temporarily or did not reopen at all. This number reflects the severity of the pandemic’s impact during its early and middle stages. It’s important to note that the situation has evolved, and many regions have seen a recovery phase with restaurants reopening or new ones starting. Globally, the situation varied significantly from one country to another, depending on government response, the severity of COVID-19 outbreaks, and the financial support available to businesses. In some areas, robust government aid helped keep many restaurants afloat, while in others, the lack of support led to higher closure rates.
It’s also worth mentioning that the pandemic spurred innovation within the industry, leading to an increase in delivery and takeout services, outdoor dining expansions, and other adjustments to business models to cater to new consumer preferences and safety guidelines.
Other necessary elements, including quality control in food presentation, cleanliness, service, and all other aspects of the restaurant experience, are vital. Attention to detail can make the difference between a good and an unforgettable dining experience.
Therefore, understanding market trends, customer preferences, and external factors like economic shifts or government-influenced health crises can change rapidly. Being able to pivot, adapt to new realities, and innovate is key to staying relevant and successful. Having a clear vision for the restaurant and the creativity to bring it to life in unique ways can set a restaurant apart in a competitive market. That includes menu innovation, marketing strategies, and creating a distinctive dining environment. Balancing these characteristics can be challenging, but those who do it well find restaurant ownership rewarding. Beyond individual traits, success also depends on building a solid team that shares your vision and dedication to excellence.
In the United States, the restaurant industry includes over 749,000 active operations, and they are as diverse as you can imagine, encompassing a wide range of types, each catering to different customer preferences, dining experiences, and price points. So, a prospective restaurant owner can select one of the many existing restaurant types that have prospered in the U.S. economy.
Fast Food Restaurants are the most prevalent throughout the U.S. and are known for their intense marketing campaigns, quick service, and convenience, mainly offering items like burgers and fries. Fast Casual includes a blend of fast food and casual dining, offering higher quality food in a more upscale environment. Fine Dining will always be identified as a restaurant with exceptional food, service, and ambiance. Casual Dining Restaurants offer a relaxed atmosphere with moderately priced food and table service. Ghost Restaurants are a newer trend that exploded during COVID-19 and exclusively provide food offerings through online orders and deliveries without a physical dining space. Cafes and Coffee Shops usually focus on coffee and light meals, often acting as social hubs. Buffet-style Restaurants are a mainstay of the elderly population and resorts and offer a wide selection of food at a fixed price with self-service.
As prevalent as Fast Food Restaurants may be, the U.S. also has its fair share of Bars and Pubs in every community throughout the U.S. that primarily serve alcoholic beverages but often offer comfort foods. Bistro Restaurants are usually small, casual restaurants serving simple meals in a modest setting. Pizzerias are very close to my heart and not only specialize in pizza but may also offer pasta, salads, and sandwiches. Diners are usually a small community staple and provide all levels of American comfort food and their distinctive, retro aesthetics. Food Trucks usually serve metropolitan/urban/business areas and late-night revelers, serving food from customized trucks with complete service kitchens. Pop-up Restaurants became a phenomenon in the 2000s as temporary restaurant concepts operating for a limited time to test new food ideas or offer unique dining experiences.
Each type of restaurant caters to different dining preferences, from quick and casual meals to luxurious dining experiences. The choice of restaurant type depends on various factors, including target market, budget, and culinary concept. The restaurant industry’s diversity allows entrepreneurs to find a niche that aligns with their vision and goals: a casual cafe, a food truck offering gourmet street food, or an upscale dining establishment.
To bring it all into greater context, owning and operating a restaurant has its appeal for various reasons: personal passion, the opportunity to be your own boss, and the absolute desire to provide a prepared food product into the marketplace. Many restaurant owners are purely passionate about the culinary arts or see an opportunity to introduce a unique dining experience they believe is missing in their community. Passion cannot only fuel the initial opening, but it must sustain the business through the obstacles and challenges it will face. Opening a restaurant is often more about building a legacy for the family, seeking a dependable income to support the family, and contributing something meaningful to the community.
Despite its challenges, the restaurant industry will always have a customer base looking for dining experiences. Restaurants survive and thrive because of a consistent demand for eating out or taking out food in this faster-paced society. With careful planning and management, restaurants can achieve a positive profit margin, making it a potentially lucrative business. Being a restaurant owner means being your own boss and having the freedom to make strategic decisions about the business. It also offers the opportunity to build and work with a team that shares your vision and commitment to quality and service. For those who love socializing, a restaurant provides countless opportunities to interact with a diverse clientele. There is a saying in the restaurant industry that no two days are the same. That can make for an exciting and fulfilling career for those who thrive in fast-paced, dynamic environments. Some restaurant models, like breakfast and lunch spots, can offer more lifestyle flexibility with shorter operating hours, allowing owners to enjoy more personal or family time.
Starting or purchasing an existing restaurant is undoubtedly a challenging effort, involving hard work, planning, and dedication. However, for many, the rewards of creating a beloved dining spot, bringing joy to customers through food, and building a successful business outweigh the risks and challenges.
So, do you really want to own a restaurant?