Opening a new business is exciting, challenging, demanding and there is so much to consider. Opening multiple locations adds another level of intensity that should be taken with just as much, if not even more caution. When you think you have checked your lists and are ready to launch your business into expansion, be sure to check them twice and ensure everything is in place to set you up for success. We heard from some of our customers who shared a few things they would have done differently, so we wanted to impart some of their wisdom and help out others who are setting out to run a restaurant. Here are some best practices to take into account when you are ready to open your business or launch multiple locations.
Take it Slow
There is something to be said for having momentum and keeping that energy flowing to grow your business, however, when not done carefully, it can lead to loss of profits, store shut downs and more. Consider the following when expanding your store number:
–Quality Control: When you open too many stores too quickly, you run into the problem of maintaining good quality. Your restaurant may have taken off due to its great reputation and service, but if you expand too quickly, that good quality might not last. It is tempting when you hear of other restaurants taking off and opening new stores because you want to grow and see success too, but if not done with caution and attention to detail, you might see your stores closing just as quickly as they opened.
Hiring and Onboarding Processes: Be sure that you have a hiring and onboarding process that is easy for managers and makes new employees feel at ease and confident in their new roles. This will help as you transition to multiple locations. When you have high turnover, but are trying to open new stores, it can end up costing you a lot of money. When the process is smooth, your employees are comfortable in their positions, and everyone is on the same page, you are more likely to have less turnover.
Basically, make sure you have a well running machine at your original establishment before you begin opening other stores. Try out new concepts at your current store, create a staff training guide that sets your employees and managers up for success, and learn what item your customers love. This will have a positive impact when you begin to open new locations.
Do Your Research
When opening new locations, be sure you are conducting a thorough location analysis. You want to look into demographics, accessibility, visibility, competition, budget, and space turn over. If an offer sounds great because you are able to open multiple locations inside of a business, look to see what their rental costs are compared to others. In this case, you can try to negotiate a different price, or choose to open in a different location that is more cost effective. Writing a new business plan is important. Take what you learned from your first location and make the necessary improvements.
Consider Your Technology
Are you using technology that will grow with your business? You want to be sure that when you begin to add multiple locations, your technology is set up to make that transition smooth and give you reports across all stores so you can easily manage each location and compare how they are doing.
Opening new locations is great! It can be a sign of success and help your business flourish in new ways. Take the necessary steps to ensure that when you do take that leap, you can have confidence in your outcome and less mishaps along the way.
