Opening a Breakfast Restaurant: What’s Needed?

Breakfast is famously known as one of the most important meals of the day. It’s also a profitable business to break into, but you need to know how to properly start a breakfast restaurant. According to the Nation’s Restaurant News, increasingly flexible work arrangements allow employees more freedom to eat when they want, and many work meetings happen over brunch. They also said that nearly 40 percent of the 1,670 consumers they surveyed viewed brunch as a time to socialize. If you’re interested in opening a breakfast restaurant, here are a few things you’ll need.

7 Steps to Starting a Breakfast Restaurant

1. Find Your Niche

Restaurants that try to appeal to too broad of a customer base often bite off more than they can chew. You should identify what your niche and target market is as soon as possible. There are some customers who may belong to a diverse population ethnically that are interested in trying new foods while others will favor self-service and affordable foods.

2. Create a Business Plan

Before going any further, you’ll need to have an effective business plan before you start. Every business plan is unique, but most will have a share of essential traits. Your plan should include an executive summary, marketing, promotion strategies and a timeline. If your plan lacks these crucial elements, it could jeopardize its potential to deliver real benefits to your startup. Make sure to include your goals and a vision statement while planning.

3. Research the Market

Prior to opening, you should research the market to check out your competitors. Find out the number of breakfast and non-breakfast competitors you have and the level of competition. If the competition is too tough, you may need to think about starting your restaurant in a different area or a completely different concept.

4. Find a Location

After conducting research on your business idea, it’s time to find a location for your restaurant. In addition to deciding whether you want to purchase or lease a space, you should also consider things like foot traffic and parking availability. Even if the location is more expensive, an area with a lot of passersby or ample parking will greatly improve the odds of your business’ success.

5. Purchase Equipment & Supplies

Once you’ve found a location, you’ll need to purchase restaurant equipment and supplies. From appliances like ranges and ovens for the kitchen to apparel like uniforms and hairnets for your staff, it takes a lot to make a restaurant run smoothly, so budget accordingly. If money’s tight, leasing or purchasing used units is always an option.

6. Apply for Permits

You’ll need a business license, tax identification number and liability insurance. Before starting your business, check with local agencies to learn about permits for handling and serving food. If you intend to serve mimosas, bloody marys, or alcoholic lattes alongside eggs and bacon, you will also need a liquor license.

7. Decide Your Menu

Design your menu according to your niche and the customer base you want to target. Breakfast menu items can include omelets, breakfast burritos, crepes and huevos rancheros. To keep the menu fresh and attract returning customers, consider adding seasonal items. Choose ones that are not only familiar and popular but put a twist to differentiate you from the franchised chains and competition.

8. Work Out Pricing

Consider how much the ingredients will cost, preparation, delivery time and profit margin. Compare your prices to those of a fast-food restaurant and a mid-priced restaurant. You can make the best food items for breakfast but if you price them too high, then they won’t sell. On the contrary, if you keep prices too low then it cuts into your profit margin. Make sure you do your research and find that happy medium.

9. Get the Word Out

To get the word out on your business, invest in creating a website that will display your menu and the photos of delicious items you serve. Websites allow you to interact with your customers easily, as well as receive orders for delivery. Use word-of-mouth technique to spread good reviews about your business, offering incentives for customers to leave reviews online and share on social media. Send flyers to local businesses and promote your breakfast restaurant on popular social media platforms.