Convert a Restaurant to a Bar?

Technorati ProfileThe Caterer posed the question what should the restaurant operator do in the following circumstance: A new restaurateur has found that his restaurant is attracting more drinkers than diners in the early evening – causing the operator to wonder whether he should extend this element of his business.

Chris's response:

A certain Prime Minister used to say ‘The market will decide’ and that appears to be what has happened here. Clearly there is something about your establishment that appeals to drinkers rather than diners.

I note your concern about making a sudden change due to overheads but I don’t see how a gradual change can be made. Either it is a drinkers pub, a pub serving food or a restaurant. The market needs a clear image of the business and clearly it is not one of a restaurant at present.

It sounds as though your personal desire is for a restaurant and you first need to determine whether there is a market to support your desire. Examine your local area – who lives there, who works there, who passes by? What attractions are there in the area – entertainment and leisure facilities for example or even supermarkets that may draw people to the area. If possible establish the demographic profile of local residents and match that with likely food preferences. In areas with limited population you may need a wider ranging menu.

Whilst engaged in the above remember that the higher the quality you offer, the further people are likely to drive. Few travel far for an average burger for example.

Now for the difficult bit – determine what resources are needed to re-launch your restaurant. It sounds as though these may need to cover a refurbishment or at least redecoration, new signage and some re-styling to create a fresh image. Fresh marketing will also be required. Prepare a budget for the above, be realistic on estimating sales and see if the whole thing stacks up.

If not, the solution is to develop the business further as a pub, with or without food sales. If this idea does not appeal, build revenue and look for an early exit.