If you’re looking to open a restaurant or bar business in Hong Kong, you’re in for an exciting journey. Hong Kong is a culinary destination with a diverse food culture, making it an ideal place for food and beverage entrepreneurs. However, before diving headfirst into the venture, there are several essential factors to consider. In this article, we’ll guide you through the crucial steps to get your restaurant or bar up and running successfully.
Drafting the Business Plan
The first step to starting any business is creating a detailed business plan. Your business plan should include the concept, target market, menu, price points, and anticipated expenses. For restaurants, the floor service area and dining duration play a significant role in determining the price per customer. Your business plan should also include an estimated foot traffic and how the street presence of a business can impact it.
| Expense Type | Monthly Cost |
| Rent | HKD 300,000 |
| Utilities | HKD 30,000 |
| Cost of Goods Sold | HKD 350,000 |
| Labour Costs | HKD 200,000 |
| Marketing Expenses | HKD 40,000 |
| Other Expenses | HKD 10,000 |
| Total Expenses | HKD 930,000 |
| Revenue Type | |
| Average Customer Spend | HKD 300 |
| Number of Customers | 4,500 |
| Dining Duration | 90 minutes |
| Rounds of Service per day | 3 |
| Number of Seats | 50 |
| Required Dining Area | 1,500 |
| Total Revenue | HKD 1,350,000 |
In this example, we can estimate the size of the venue we need from the dining duration, number of service rounds we expect to do per day, and so on.
Calculating the net profit by subtracting the total expenses from the total revenue, you can determine whether the business is profitable. If the net profit is positive, you may consider the business viable and profitable. If the net profit is negative, you may need to adjust your expenses or revenue projections, or consider a different business concept or location.
It’s important to note that this is just an example, and your actual expenses and revenue will depend on your specific business concept, location, and other factors. Conducting a thorough analysis of the market, competition, and customer preferences can help you refine your business plan and financial feasibility.
Finding Restaurant Spaces for Rent in Hong Kong
When choosing a restaurant property, you’ll also need to consider the number of seats you require for your business. This will depend on your expected customer volume, dining frequency, and dining duration, as well as the space required for each customer to sit comfortably. A general rule of thumb is to allocate at least 18-20 square feet per customer, but this can vary based on the type of restaurant and seating arrangements.
In addition to the dining area, you’ll need to consider the kitchen and storage areas. Your kitchen should be equipped with suitable fittings and appliances to meet your menu requirements, and there should be enough storage space for food, equipment, and supplies. You’ll also need to ensure that the electricity supply is adequate for your needs, and that the property meets fire safety regulations. There are licensing agencies that will be able to help with these, but set yourself up for success with a commercial restaurant property that has a history of licensing and regulations testing to eliminate chances of your license applications getting rejected.
Licensing feasibilities are also a crucial consideration. Different types of restaurants require different types of licenses, such as food and drink licenses, entertainment licenses, and liquor licenses. It’s important to research the specific licenses required for your business and ensure that the property you choose has a history of being licensed for those requirements.
Finally, the location of the property is a critical factor. In addition to footfall and discretion, you’ll need to consider the accessibility of the property for both customers and suppliers, as well as the surrounding area and competition. It’s worth taking the time to visit potential locations and speak to other business owners in the area to get a sense of the local market and community.
Overall, finding the right venue for your restaurant or bar business is crucial for its success. It’s important to take into account all the key considerations, from the dining area and kitchen to licensing and location, to ensure that the property fits your business plan and is financially viable in the long term.
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Recruitment & Marketing
Hiring the right team is crucial to the success of your restaurant or bar. When recruiting staff, consider their experience and personality to ensure they fit the culture of your business. In addition to chefs and servers, you may also need bartenders, baristas, and hosts/hostesses. Your budget should allow for fair salaries, benefits, and the occasional bonus to maintain employee morale and retain top talent.
Marketing is another important aspect of running a successful restaurant or bar. While you can handle marketing in-house, it may be beneficial to hire a marketing agency to automate much of the work. Hong Kong has several specialised restaurant marketing agencies, like Monogic, that can handle your entire department in a single self-managed solution. These agencies have the expertise and experience to create effective marketing strategies tailored to your business.
Using a marketing agency can also save you time and resources, as it is rare to find just one or two people who can handle the entire spectrum of marketing. A specialised agency can take care of everything from social media and website design to email campaigns and customer loyalty programs. This allows you to focus on other aspects of your business while the experts handle your marketing needs.
Conclusion
Opening a restaurant or bar in Hong Kong can be a thrilling venture, but it requires careful planning and execution. Drafting a detailed business plan, finding a suitable venue, and recruiting a competent team are crucial factors to consider. At Epicure Realty, we’re restaurant and bar specialist realtors with the experienced eye you may need to help find a suitable space and ensure your success at the earliest stage. Reach out to us today for the perfect listing!