Opening a bar or restaurant concept isn’t as simple as it seems.
With all the incredible restaurants and bars Nashville has to offer, it’s easy to forget just how difficult it is to get a concept up and running. Given the risks involved with a new restaurant venture, it’s important to understand the process.
It’s not just about finding the right location, either - you’ve got to nail down your brand, marketing, and vendors.
Step 1: Know Your Budget
Being granted a business loan is no easy feat, and opening a restaurant will almost certainly require a fair amount of personal capital. Saving for a restaurant project and understanding your budget and costs is a necessity. New restaurant operators must be prepared for the high costs of kitchen equipment and a potential build-out.
Our clients’ restaurant build-outs tend to run in the $150,000 to $250,000 range, depending on size and genre of food. Most landlords will want to see at least six months’ operating expenses liquid for a restaurant startup. More established concepts or restaurateurs will certainly see some flexibility with these terms in Nashville, but owning and operating restaurants is a risky business and commercial property owners don’t like to lose money.
Operating expenses for a startup restaurant can include rent, utilities, common area maintenance, taxes, insurance, equipment / general maintenance, salaries / benefits, and so on. It’s important to budget for as many line items as possible - after all, it could take up to six months before customers start rolling through your doors.
Step 2: Site Selection
Even with your budget and capital in place, finding a home for your new restaurant presents a challenge in itself.
As anyone who has sought to open a restaurant in the past knows, 2nd generation kitchens are a hot commodity in Nashville and are claimed quickly. Given Nashville’s popularity, the search for restaurant space is highly competitive, with multiple local, regional, and nation groups competing for the same location. It’s rare to come across a restaurant space that isn’t being eyed by a number of other eager entrepreneurs, as well. This lack of availability has motivated many new restaurant owners to take on full kitchen build-outs within general retail space, which is much more common than restaurant / kitchen space, in order to secure a spot in their ideal market.
Ultimately, finding an accommodating location for your restaurant often requires patience and creativity. With a strong track record helping restaurant clients get up and running, we’re always happy to help with this process at The Cauble Group. Nashville Native, Sam Turner, who has likely dined at every restaurant in Nashville, was brought into the firm specifically to help business owners expand their restaurant empire.
You could, of course, take the more difficult route of finding restaurant space through Craigslist, Loopnet, or simply driving the market you wish to be in.
Step 3: Let the World Know
Once you’ve found a home to welcome and serve eager Nashvillians and tourists alike, it’s time to ensure your concept is well known long before your doors open. With so many new restaurants, bars, and other entertainment options fighting for the valuable attention of your new client base, generating buzz and excitement is a must.
Social media is an obvious yet effective way to promote your business and its story. It also allows you to directly engage with the community and foster personal relationships.
It’s important to take advantage of more traditional mediums, as well. Outlets such as The Nashville Post provide great opportunities to market yourself and reach a broad audience. The Cauble Group regularly writes press releases on behalf of its clients, which have helped get their clients to the front page on Google and drive a significant amount of traffic to their grand openings. Check out our stories on Safe House Tattoo and Cycle Haus.
