The people of Singapore loves to eat. Their appetite for good food has increased the number of food businesses. According to research, the total operating expenses of a food business in Singapore is $8,747 million (2016). If you happen to be an owner of a restaurant in Singapore whose business is going great, then it is about time you expand your business. I am sure the idea has already occurred to you before. But just the thought of expanding your business makes you nervous. Being a business owner is in itself a very arduous task.
Expanding your already running business is even tougher. A report by Spring, 40% of the food and beverage establishment do not survive more than 5 years in the fierce market of Singapore. It takes time to stabilize your business. Once it has started running successfully, the next important step is expansion. Here are the key factors you will need to know before taking this big step.
Is it the right time?
The first and foremost important thing is time. If you are in the position to expand your business then go ahead and do so. It is not just about how you feel, it also depends on the external factors. You need strong and trustworthy staff. You can’t be present in two places at the same time. Therefore, it is important to have staff that will manage your restaurant in the best way possible.
Another thing you need is a favorable season. If your business is in full blooms during the summer than having your expansion in spring will be a good start. It will be a good time to spread the news so that you can have plenty of customers during the summer.
Do you have enough labour?
Good staff is hard to find and you can realize its importance from the first point. If we specifically look at the Singapore market, labor is scarce. And this shortage is specifically more in the food and beverage industry.
Singapore has been facing this condition for the past decade. If you are planning to expand your restaurant then take into account the fact that it’s hard to find kitchen and catering staff. The demands of local candidates are very high. The demand for the head chef is $5000 to $6000 per month. And whereas a dishwasher normally demands $1200 to $1500 per month. Most are not willing to work long hours. And some even don’t show up for the interview.
Build a proper business plan
It does not matter if you are expanding an already established restaurant business or making one from scratch. No plan will be properly executed without a business plan. A restaurant expansion business plan will paint a clear picture. It will give you the best idea in terms of resources, finance, operation, and marketplace competition.
You will also have to acquire a license. Many food companies in Singapore are running without the proper license. But this doesn’t go too far and those companies eventually face heavy charges. You can check online on the government official websites and get the information about the relevant license you will need to expand your restaurant.
Always choose the best location
Location always matter. When searching for the location of your new restaurant, do thorough research. You have to attract new clients along with the old ones. Make sure to select a site that gets a lot of customers. Many restaurant owners commit this mistake.
They compromise on the new location due to cheap prices. But this does not improve their business. It ruins the already established restaurant as well. Whether the new location is a big city or a small town, you have to give the best dining experience to its residents. Make sure to hire efficient and trustworthy staff to cater to the needs of the locals.
Marketing strategy and standard maintenance
Last most important factor is the marketing strategy. It does not matter if you have an already established restaurant. If you don’t have a proper marketing strategy, your new expanded restaurant will not go further. You have to make a proper marketing strategy and practice it before spending the cash on expansion.
Also, maintain your standards. No matter where you are opening the new branch or how many new restaurants you are opening, you need to maintain your standard. Never forget your core values because this is how you became successful in the first place. Customers hold the most importance and keep that in mind while expanding your restaurant business.