If someone working in the culinary world takes their job seriously, whether they’re a bartender, server, barista, or chef, about 80% of them aim to steer their career toward owning their own establishment. In the best-case scenario, they lack the necessary financial resources, and in the worst, their business ends before it starts because they’ve painted everything too rosy. However, owning a concept holds a certain charm that perfectly blends honest work, adrenaline, and skill.
After many years in the business, there comes a time when you’re fed up with following someone else’s tune. Independence is what attracts many because they feel they could do it better. Who wouldn’t want complete freedom in the kitchen or behind the bar without unnecessary interference or clashes with the owner’s interests? Being your own boss is a beautiful thought, but this is where the negatives, unseen by many, come into play.
First and foremost, you must have an entrepreneurial spirit; otherwise, you’ll need someone experienced in real business dealings by your side.
You could have the best drinks in the bar that guests have ever had, but in the end, it’s about being profitable. Even if you have an investor backing you up, the business won’t always thrive on their funds alone without a prospect of returns. Business involves failure, which must be taken into account. However, in such situations, people tend to get scared and forsake the gastronomic industry, leading to a loss for our craft, with quality individuals leaving too soon or giving up too easily on their own concept. Risking your good name is also something to prepare for. Not everything always goes according to plans, but even in those times, maintaining professionalism and a positive mindset is crucial.
For most of us, the biggest stumbling block is indeed funding the business. If you can’t finance the venture yourself, there are several ways to achieve your dream. While an investor might have the means, it often leads back to square one, working for someone else, thus lacking complete freedom and independence. Therefore, people often turn to financial institutions that can provide the necessary injection. However, it’s a significant risk that requires careful consideration and plenty of calculations to see if it’s worthwhile, as it automatically makes the entrepreneur dependent on that institution.
Suppose, though, that everything goes according to plan, the concept opens, the business economics stabilize, and profits grow. At that moment, your work becomes your life. The lives of other people depend on your decisions, and you’re essentially at work non-stop, from the moment you wake up until you go to sleep. Nevertheless, I believe it’s all worth it.
Now, let’s peek behind the curtain and see the amount of work and preparation that goes into creating such a concept. The article’s introduction might not entirely clarify what such a concept actually is. It’s a general idea for a business aiming for profit and differentiation from the competition, targeting a specific audience precisely. It’s the soul of how a bar or restaurant should look, the music played, the attire of the staff, and even expresses the management’s attitude. Creating a concept is a long and demanding process, and in the following paragraphs, we’ll describe several steps that must be fulfilled to make it a reality. Different steps interconnect and overlap in many cases.
Business or Entrepreneurial Plan: Without this plan, starting a concept is difficult, if not impossible. This tool helps you proceed with further steps. Without it, you have no idea how much the entire venture will cost or when you might approximately recoup the initial investment. Therefore, it’s crucial for the business plan to be as detailed as possible, encompassing everything you can think of, from designers’ work to ashtrays. The initial investment might unexpectedly increase, and you might not be prepared for it. In such a case, you might have to resort to steps that weren’t planned, such as reducing employee wages or using lower-quality glassware. This could lead the business to lose its essence right at the start. Thanks to the financial plan, you can make better decisions about whether such a business is financially viable in the long term or postpone your plans for later.
Finances: Once the financial plan is ready, financing the project becomes necessary. There are several options. Probably the most common is financing from a bank, possibly combined with personal funds. In such a case, it’s essential to compare various bank offers and select the most advantageous one. Another popular method is to team up with someone who can provide the necessary investment. However, it’s crucial to carefully choose your partner because not all investors are alike. Additionally, everything needs to be contractually secured, even if you’ve known each other since childhood. Business doesn’t know friendships, and that holds especially true in gastronomy. Many times, an investor can’t balance the know-how of the concept creator and the resources invested, which is today’s biggest problem.
Numerous concepts have literally burned down due to disagreements between the creator and the investor. There’s also the involvement of partners from on-trade environments of brands with whom collaboration is established. If a mutually beneficial collaboration is established, they can supplement the resources the concept needs. However, this should be considered while drafting the financial plan and presenting it to partners involved in the project.
Space: If the finances are secured, it’s necessary to search for a location for the establishment. The location should reflect the target audience it’s aiming for. Opening a professional cocktail bar with levitating drinks would be challenging in a small village in Eastern Slovakia. The space should also meet basic gastronomic operation standards, with functional water, electricity, ventilation, and the like.
The Right Team: More heads, more intelligence, they say. In business, this holds especially true because it’s nearly impossible for one person to handle everything alone. Even if someone tries, they might burn out before the concept opens. Hence, it’s crucial to have the right people in the right positions. You’ll need an excellent accountant who can process all matters correctly and in accordance with the law. The team of architects will ensure that your concept looks exactly as you envisioned, but you must find those who thoroughly understand its essence. Personally, I’d choose architects with experience in the field. Hand in hand with architects are people who design and manufacture the technical and stainless steel components for the bar and kitchen. While they have plenty of experience, consulting actively with professionals working in these segments is ideal. The interior design of the bar should be communicated with a bartender or someone actively involved in consulting the opening of similar businesses. At this stage, the general manager of the establishment should already be clear, as they’ll manage all processes from point A to Z. Choosing the right general manager is crucial for any concept because their primary concern at the beginning is selecting the right suppliers, architects, and comparing price relationships to decide who to collaborate with.
Unique Branding and Marketing: Once the space is ready and operational, it’s essential to work on the brand you’re creating. How will it be communicated? How is it different from the bar next door? Whom are you targeting? You should have answers to these questions and, at least initially, involve a good marketing company. Of course, it’s possible to manage this without one, but you should at least have a feel for social media. Initially, the investment in marketing might seem high, but it’s important to understand that it generally returns quickly.
All the above mentioned constitute a kind of roadmap for starting a concept. However, don’t be fooled into thinking that it’s just a matter of ticking off points on a checklist. These steps are interconnected and overlap in many places, and throughout the whole process, you’ll find yourself returning to the previous points to make adjustments or rethink decisions. Flexibility and adaptability are key throughout this journey.
