Restaurant Industry Business Model

Industry Restaurant

Restaurant Industry and companies are the retailers of various prepared foods and drinks. Restaurants are usually of various themes and diverse types. Typically, there are the following types:
1-Fine Dining
They are the costly restaurants that offer special cuisines and unique dishes with certain specialties of their own.

2-Mainstream Restaurants
They are usually the average priced restaurants that offer a theme or branded chain. They usually contain all types of food common in a locality.
3-Fast food Restaurants
These type of restaurants usually offer fast food only for instance pizza, burgers etc.

4- Cafes
Cafes usually offer hot/cold drinks such as coffee, tea, shakes etc. They also contain some snacks to get along with drinks on the menu.

Background of Industry Restaurant
Back in Roman Empire, the inns started serving food to the guests. They made dining halls for the travelers who came to stay in the inns. After the construction of roads, more travelers started coming, specially to the Holy Land. Due to more travelers, the inns and dining halls started increasing. In the 1500’s, various places were introduced in England where travelers could stop and eat.

Coffee was introduced in Europe in the 17th century by Turkey. First Coffee house was built in 1645 in Vienna. This coffee house became the meeting point for the public.

The modern day restaurants were first established in France. In 1765, Paris opened a place, “restaurateurs”, in which people could choose a dish from the menu. Restaurants started getting flourish and by the 1800’s, there were more than 500 restaurants in Paris.

Business Model of Restaurants

Restaurant businesses are typically run just as other retail stores but there are also certain factors different from other industries in the restaurant industry. Since, there are a limited number of foods to present, the restaurants have a large competition between each other. Also, they have to compete with other publicly traded and dominant chains. In this way, the restaurant industry is highly cyclical.

Sales in Restaurants

There are various factors that impact the sales of a restaurant. The restaurant owner can either open a new branch of a restaurant or enhance the sales of an existing one.

If the owner is opening restaurant at a new site, then it should be considered that new branch is not close to the previous one so they do not cut the market of each other. While opening, highly profitable location should be assess and targeted first for a restaurant.

The existing branch of the restaurant can also target to boost up sales. Managers should introduce some innovations in the products and increasing the price on the menu might help also. Remodeling of the restaurant can assist to attract more customers. Apart from that, restaurant managers should keep introducing special offers, discounts and vouchers, every now and then to keep the customers engaged.