The 5 do’s for a great food concept?

In Australia alone, IBIS World reported in 2016 a combined market size of over 64,984 food outlets comprising of cafes, coffee shops, fast food outlet and restaurants. So what does it take to have a great food concept?

In our experience in this industry for over 25 years, there are 5 main secret ingredients for a great concept.

1- Location … location … location …

Cannot stress this ingredient more. As a matter of fact, the selection of the appropriate location for the food concept is one of the main success stories of any concept. To select the appropriate location, it must serve the purpose of your concept. The location must also meet the customer profile your concept is targeting. A fast food concept, for example, targets different food audience than a fine dining concept. The rent cost of the location must not be a burden on your sales forecast. A well-balanced rent cost percentage over sales must be carefully forecasted in your financial feasibility study along with other expenses.

2- Uniqueness

From the minute you step into the food outlet, you will feel this uniqueness in the atmosphere of the place. A well thought through concept will unfold a unique theme, menu and service. Even if it is another Burger place, it can be distinguished from its rivals with well-selected naming for the burger menu, choice of ingredients, presentation and service.

3- Consistency

Your concept must constantly exceed your customers’ expectations. A good concept must have consistent quality of its menu. Consistency can only be achieved with rigorous and continuous staff training either in the kitchen or in the service area.

4- Feasibility

Net Profit in the food outlets industry is becoming very scarce. This is mainly due to the fierce competition. Another reason is due to the high cost of goods compared to the price the customer is willing to pay for a dish or a sandwich. With low-profit margins compared to fifteen years ago, a good concept must have well-selected ingredients,  lean overheads and reasonable revenue to absorb the investment made and the running cost of the business. Therefore, the need of a well thought of financial feasibility analysis, a thorough review of food cost, overheads and tight control on inventories and waste.

5- Documentation

It is all about smart documentation and manuals. Whether it is in a form of an operational manual, training manual, franchising manual, every successful concept must be documented for it to grow and prosper into several outlets and then into a franchise.

References:

1-IBIS World, Cafes and Coffee Shops Market Research Report | ANZSIC H4511b | Aug 2016

2-IBIS World, Fast Food Services Market Research Report | ANZSIC H4512 |Jul 2016

3-IBIS World, Restaurants Market Research Report | ANZSIC H4511a | May 2016

 

By Amr ELHUSSEINI |September 30, 2016