It’s encouraging to see a local restaurateur open a new restaurant after the terrible failure rate of new restaurants (some reports say as high as 90%). Soft Opening You can never be too successful when opening a restaurant.
Although it may seem like being “too successful” might be a good thing, there are many problems that can arise from having too much success. However, a hot new restaurant may underestimate its capabilities and end up causing its own demise.
A brewpub opened in the vicinity of a California friend’s home a few months back. It occupied a vacant, unprofitable restaurant space in a mall. It was viewed as a disaster area by the densely populated residents who saw it as a place that would never prosper because of the failures of multiple other restaurants. The local population was still hungry for good restaurants where everyone would know their names.
This Californian may finally have a restaurant that can survive. Why? Why? Because they carefully managed their new venture toward long-term success, and avoided some initial revenue.
The new location features several outdoor fire pits, outdoor areas that are family-friendly, and a dog-friendly patio. This is a great option for families in the area. The bar has metal and rustic wood seating. Roll-up doors allow the outdoors to flow into the covered area where food service can be concentrated. The experience includes multiple TVs, numerous craft beers on tap, a full bar and a menu with a variety of food choices.
Openers
The response has been overwhelming so far. It’s so popular that you can wait up to two hours before you can enjoy a simple meal with a beer and a glass of wine on a spring evening. Here’s the catch: There is still a soft-opening at this location. Although it is busy most nights, there are limited hours and a restricted menu. A portion of the patio has construction materials still on wooden pallets that are awaiting expansion.
The owners of this restaurant have attracted a lot of customers partly because they offer very few menu items. They realized that success at first would lead to insurmountable problems later. Imagine the impact on service and quality that long-awaited restaurants can have on their business. Instead of opening a disastrous restaurant without doing a practice run first, the owners carefully planned a business that is manageable and can grow as the excitement wears off.
Anthony Bourdain’s book chronicles the failures of many restaurant ventures that were started by owners who believe that they have the perfect recipe and a little success will prove it. Owners would open another restaurant, only to find that they were unable provide the same dining experience that customers want.
Keep diners coming back
If a new restaurant is too successful, it can lose control from the start. People don’t mind waiting for tables at a restaurant; however, they do find it frustrating to wait for their food. You will lose the trust of your customers if you don’t keep up with the pace from day one. You will lose your customers forever if you have a second chance but fail to regain control. Retail business depends on repeat customers so the first impression is crucial to long-term success.
California restaurateurs understand that the short-term strategy will result in lower initial revenues for the sake long-term sustainability. Owners and staff can learn a lot from the soft opening. They will get feedback from customers about their favorite menu items, and they will adjust and expand the menu accordingly. Servers and bartenders are discovering who their regulars are and what their preferences are so they can keep them coming back.
The menu will be expanding over the coming months, but it will already have been improved by customer feedback. The owners will be able to determine what works in a location that was once doomed and can adjust their scale accordingly to maximize profit. They might open the rest, extend the hours or make reservations to maintain exceptional service and quality.
The long wait can be tolerated for now while you sip local craft beer and meet neighbors you may not see very often. The neighborhood business will benefit from this soft opening and controlled operation. The owners were not as successful in the beginning, but they were planning for their long-term success. Customers will be remembered by their names when they return to the business over and over again.
