Wilson: Hey Guys, today we're going to be sharing three simple steps in opening a successful
restaurant or if you already have a restaurant and you want to get to the next level then
this video is for you.
Wilson: My name is Wilson and today we're sharing three key simple steps, which you
can follow to build and open a successful operating restaurant.
Now the keyword here is successful restaurant.
We're not going to go over how you get your permits, how do you get your designer or the
contracts, none of those detail stuff, we're not going to go over that.
We're going to go operating on the big framework that when you get it you can actually take
actions right away and implement, and have results, and that's the stuff that I'm going
to be going over with you today.
But if you are interested in these detailed stuff, action-oriented strategies, tactics,
make sure you hit the bell of the notification button so you get future updates on how do
you build more successful restaurants with different tactics and whatnot.
Anything food and beverage related we are here along with you on this journey, so make
sure you turn on the bell of notification so you guys are updated.
Wilson: Today we're going to be talking about the steps in order for you to take, so you
can ensure that when you come out of the gate you have the best chances of success in operating
At the end of this video I'm going to be sharing with you some templates and resources that
I've personally used to build my ice cream shop into an international chain.
Make sure you guys stay 'til the end of the video to receive the special gift.
Wilson: I know you have an amazing recipe that you can't wait to share with the world.
Your friends and family is raving about it, and I also know that the restaurant around
the block sucks, yet they are filled and packed with customers every single night and you're
like, "If I only I had my recipe in there.
If I only I was doing things my way I would have a restaurant that's filled with customers
I know that you can generate and open up a successful restaurant, a cash cow that you
can take care of your family without working a nine to five, but before we can get there,
there's a few things that we need to align with.
Wilson: First, did you know that businesses, specifically restaurants, 80% of them fail
within the first year.
The number one reason why they fail is because they fail to plan.
Now I'm not telling you the stat to rain on your parade, heck, I made this video so then
I can encourage you, and support you along this journey for your success.
I'm just pointing this out so you know exactly what you are coming against, and there's resources
and support, and a framework that you need in order for you to be successful in your
Before you even cook your first meal there are so many details that you need to pay attention
to, anywhere from kitchen appliances, location, menu design, permits, operation, hiring, marketing.
Now I know this may seem overwhelming, and that's the reason why I want to keep everything
super simple, so then now we can plan for success together.
Wilson: Step number one, location, location, location.
As cliché as location sounds, it is the number one reason why restaurants are going bankrupt,
because of the fact that they did not spend the time in figuring out the location, and
they did not spend the time analyzing whether the traffic flow is in line with what they're
trying to serve.
This is the determining factor for whether you are going to be able to bring your family
to Bora Bora to chill on the beach, to be sipping on pina coladas or whether you're
going to be struggling your business, working nine to nine trying to make ends meet.
Location, location, location, this is what is the determining factor.
Wilson: You don't need the whole country to come visit your restaurant in order for you
to be successful.
You don't need to be running TV ads and spending tens of thousands of dollars on ads in order
for you to be successful, all you need is a group of loyal customers that come back
again and again to have your products, to enjoy your products, and to enjoy your meal.
The secret is to develop this group of loyal base of customers within your community, that
means you need to choose a community that you really enjoy serving.
Spend time in the community and see if the people that are walking around there, spending
there, eating there, is on line with the people that you would like to serve, because this
is the type of loyal customers where you're going to be developing your restaurants, your
menu, and your community around.
Wilson: Spend time at your competitor's restaurant and see who is it that they're serving, how
are they serving, how are people responding to that, what is the engagement like, see
if you can do a better job.
Is there a sense of belonging?
Is there a lot of repeat customers?
These are all facts that you need to figure out before you settle down on a location.
After you've chosen your community, the community where you're going to be building your restaurant,
your legacy, then the next step is to choose a location within the community that has good
visibility, good foot traffic.
Wilson: Now to determine whether this location has good enough traffic all you have to do
is to go to the location where you want to set up shop or the location where you want
to lease, sit there by a café next door or any shop next door and start counting on a
Every time someone comes in start logging in your clicker, and every hour you're going
to tally up the number of people that is walking through the doors on your worksheet down below.
You can download that template right below in the link.
Wilson: Now that you have tallied every single hour you can have a really, really good sense
of how the performance is like every single day, when is there peak hours, when is there
slow times, when is it that they have the rush hours for within the day.
This will give you a sense of how much revenue they're making, and whether this location
is your ideal choice, and with this information you can actually bring it back to the landlord
to negotiate a much better, well-informed contract.
For example if they're giving you a price of $4,000 for every month, and you did the
clicking, you're like, "Wow, this place has no walk-in traffic, really, really poor traffic,"
then you can use this information to go and negotiate a better lease, and a better contract.
Wilson: Now I know there are restaurants in the middle of nowhere yet they're still killing
it, making a lot of different businesses and sales, but those are called destination locations.
We're going to be covering in this video the highest chance for you to succeed is to have
a lot of walk-in traffic.
This is the easiest to perform, and will give you the best chances of success.
This step alone will take you weeks, if not months to determine a good community where
you want to establish your foothold, In terms of choosing the right location within this
community to the people that you want to serve, do not be impulsive because so many people
make this mistake of seeing a location that they absolutely love, and they commit into
a five, 10 year lease because they just love the location so much, but at the end of the
day the stars are not aligned.
It doesn't give them the best chance of success and now they fail, all because of the impulsiveness.
Wilson: Choose a community, choose a location with high visibility, and this will increase
your chance of success much, much higher.
When you're doing this exercise I've actually provided a template that I've personally used
when I was doing location scouting in the link below.
Download that template and use it to your advantage.
Make sure you use it.
Do not just go with whatever your real estate agent is suggesting, and really neglecting
the really basic, really, really do your homework because you're going to be spending years
in this location, and I want you to really enjoy every single bit of the process.
Wilson: Step number two, know your numbers.
So many businesses fail because they don't know their numbers.
The numbers, the profit and loss statement is basically the lifeline of their business,
it shows them exactly where are the improvements that they can make.
If you don't pay attention to this on a regular basis your business will definitely fail,
it's like not keeping check with your own blood pressure, not keeping check, and not
doing your regular body check, but with a business it's much more volatile.
It's so important for you to understand your numbers.
Wilson: I, myself had to pay a really hefty price.
A few years ago I was audited by the CRA, which is the revenue agency's department,
and they actually gave me a fine of over $200,000 because I wasn't keeping track of my numbers
properly, and that was a very, very expensive lesson that I had to pay.
Now that's definitely a very hefty price, which I do not want you to pay.
After that incident I went back to school.
I took a weekend course to understand accounting, and from them on I had the best practice that
I can possibly, to implement into my business, which took it from having just one location
to more than six locations now internationally, all because of the fact that I pay so much
more attention to the books now.
Wilson: Now for the sake of simplicity I have generalized three big numbers, which you would
want to be accountable and be aware of.
Now understand these are just generalized terms and generalized numbers that I'm throwing
Every single type of business and segment has different types of ratios and numbers
they should be hitting for, but I'm just giving you something super generalized so you have
a reference point, a benchmark to go off of, and the three numbers to be aware of is your
rental costs, your food costs, and your labor costs.
Wilson: The number one cost, rental costs.
It's very difficult to project how much you should be paying for rent if you don't know
your revenue, therefore, when you have chosen a location then go to the competitor that
you think matches the concept that you have to offer the best.
Go to their restaurant and start clicking, start observing how much are people spending
on average, seeing how many people walk through the doors and by there you can project how
much revenue you can potentially make.
Wilson: Now for example, you go into your competitor's restaurant and study their menu.
You see that an average meal on entrée is $15, plus a drink, around $20 is an average
ticket price, in every given day you're projecting around a 100 customers going through the doors,
now that means that they have a revenue of around $2,000 on a given day.
Now that's on average, if you times that by 25 operating days in a month now that gives
Now for rental costs you should be aiming, and a golden rule for not paying more than
15% of your projected revenue.
Now what that means is that given the fact that you're making $50,000 in revenue, 15%
of that is $7,500, you should be aiming at a rental cost of no more than $7,500 at that
Wilson: Food costs is the second cost you should be really well aware of.
Food costs should include not just the ingredient, but the laborer involved in creating the ingredients,
the delivery charges, the takeout boxes, anything that has direct relationship of how the food
is produced should be included in the food costs.
Now for food costs you should be aiming at no more than 30%, 30% is what you should be
30% of revenue should be accounted for food costs.
Now with the same example of $50,000 in revenue you should be aiming at $15,000 for food costs
only, that should be your cap.
If for any reason your food costs goes above the 30% then you've got to learn how to manage
your food costs properly.
There's spoilage you can manage.
There's loss to theft prevention you can manage.
There's delivery schedules you can manage.
There is a lot of things you can manage, and to control the costs of food to be below,
if not 30%.
Wilson: Now the third cost is the labor costs.
This should include anywhere from your servers, to your cashier, to your janitors, to also
the manager's pay, and the operator's pay as well.
A lot of mistake that I see is that the owner/operator do not put their own salary in this calculation,
which in turns overinflate the profit that they make, and that's not a clear illustration
of how healthy the business is, and that doesn't allow them to make the proper decisions for
For this labor cost you should be aiming at no more than 30% of your revenue.
Given the fact that you still make the 50K in revenue you should be aiming for no more
than $7,500 in your labor cost.
Now there's a lot of different ways that you can pull this lever to control how much labor
cost you're giving, such as staggering shifting, different types of employee incentives that
allows them to gain a higher percentage as they bring in more revenue but a lower base
Wilson: If you can run your business to attain these golden numbers, 15% in rent, 30% in
food costs, and 30% in labor, then this is golden for you, you can bring your family
to Bora Bora, enjoy with them on the beach, and enjoy quality time with them, instead
of spending time stuck in the business working nine to nine and being burnt out.
If you are hiring a manager or an operator to help you out to manage this business then
these are very good key performance indicators to give your manager, so then they can help
you manage the labor costs, and also the food costs, which in turn would give you much more
profit at the end of the day.
Wilson: Now there's a lot of ways to increase your revenue and to decrease your costs, things
such as menu design, loss to theft prevention, staggering shifting, now all these things
we're not going to be covering in today's video, because today we're going to be talking
about the simple steps to build and operate a successful restaurant.
Those are saved for another video, if you want to know more make sure you subscribe
to the channel so then that way I can show you guys more, and share a lot more knowledge
with you guys, but to keep things simple the three costs to aim for, 15%, 30%, 30%.
Wilson: Now the third step to building and running a successful restaurant is your ability
to connect with your customer and your team.
No, customers are not always right, but without them you are nothing.
Now on the same note, you've got to always, and I cannot emphasize how important this
is, always back your team up, given the fact that they're doing the right thing.
You've got to take a stand in what you believe in and your vision, and if your team is acting
in accordance to these values and your mission then you've got to back them up because without
your team you're nothing as well.
It's very, very, almost impossible for you to handle everything by yourself without a
team, you're going to be burnt out.
You're not going to be able to have the freedom and the flexibility to go travel, and to take
care of your loved ones if you do not start believing in your team, and communicating
with your team.
Wilson: The number one thing that a lot of people fail to do, as I said, is to connect
with your team, and also your customer.
This is something that is often overlooked because restaurant owners and owners in general
always overemphasize the customers, and they undervalue the importance of having an amazing
If you want to build a truly amazing business, a cash cow that you can walk away from and
still have it running at full capacity then you've got to trust your team, you've got
to back up your team, you've got to develop your team.
The reason why restaurant owners, and a lot of different business owners struggle with
finding great help, struggle with finding people who has common sense, and who are competent,
who cares about their business, is because, first, they fail to care about their team.
They fail to prioritize their team because it doesn't seem as important as their customers.
Wilson: Connect with your team, show them your values, show them the vision, show them
your gift, show them what you want to deliver to your customers, show them and communicate
that with your team, and develop your team.
Trust me, they will reciprocate, they will be putting their heart, and they will have
much more passion in your business if you're able to show them the vision of where they
want to go, and where you want to lead them.
Explicitly tell them your values whether it be integrity, customer service or empowerment,
these are things that act as the parameter of how they can execute on your behalf.
They become your biggest ambassador, and they become an extension of you.
Connect with your customers, know what they value, understand why they're coming to your
Understand what experiences are they seeking when they're at your restaurant and provide
them that specific experience.
Wilson: Are you trying to create an environment where people can come in with their friends
and hang out, and fee like it's a lively environment or are you trying to create an environment
where a romantic couple can come and impress their other half?
Or is this a family joint, where you want to create everything that is friendly, bubbly,
and welcoming for their family?
You've got to be so specific in who you're catering your restaurant to, in order to attract
the right crowd, the right loyal customers, so then they can come back again, and again.
Wilson: Now as a recap it is so important in order for you to connect with your customers
and your team.
Do not neglect one side or over favor the other side.
It is super important for you to connect with both sides.
I've generalized a lot information here, as a recap of the whole three step process to
bring your business, and your restaurant to the next level we are recapping the three
Find the location where your community and loyal friends are hanging out.
Number two, know your winning numbers.
Control the different levers so then you can control your destiny.
Number three, connect.
Connect with your team and your customers.
By following these three simple frameworks you will greatly increase your chance of opening
up and operating a successful restaurant, and I know this firsthand because these are
the steps that I personally follow in order for us to grow our ice cream chain into an
These are things that I'm basically compiling and ripping apart, my own business, and to
see what are the foundational elements that allowed our exponential growth.
Wilson: I know it seems like a lot to do.
It seems like things are everywhere, and that's the reason why I've compiled all the resources
in the links below.
These are templates that I personally used.
These are resources that I personally used, and I really want you to be able to have success
in your business, and I really want to support with you on your journey into opening up this
restaurant, so then that way you can bring your family and loved ones on vacation and
spend quality time with them.
Wilson: Download the documents below, these are templates which you can use right away
in your own business.
You are going to be embarking in this amazing journey, times are going to be tough.
You're going to want to call quits so many times.
Nights are going to be long, but I'm committed in this journey with you because it is so
worth it when you see the candid moments of people enjoying your perfect recipe.
When you see the moments and the smiles of the people that you can take care of finally,
and when your team comes to you and say, "Thank you," these are the moments that make this
whole journey worthwhile, and like it or not, I'm along this journey with you.
I'm here to support you, so make sure you guys take good notes.
Use these different principles to help you find success in your restaurant.
Wilson: Like this video and show me some love.
If you have any questions, if you have any comments, leave it in the comment section
below, and if you want me to be alongside with you this whole crazy journey, make sure
I'll see you guys next week.