Also from living there i have seen plenty of

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Also from living there, I have seen plenty of restaurants go under. I have seen what it takes to keep bringing in a profit. People also know my family and me, which I am also hoping this will bring in family and friends. Living in a smaller town, everyone knows everyone. This helps because if someone wants to go out and eat where they know they can trust the food and the owner, they will more likely go there instead of a cruddy restaurant down the street. All these factors will help me with my restaurant in Oskaloosa, Iowa. Menu Development The menu is one of the most important tools of the restaurant business. There are three different types of menus, fixed, cyclical, and breakfast, lunch and dinner. A fixed menu doesn’t change menu items for more than six months. A cyclical menu is the type of menu rotated almost every day. A breakfast, lunch, or dinner menus, which offer items served during the appropriate meal time periods. My restaurant is going to have a fixed menu. This is because when going out to eat, people know what they want and have expectations. I want guests to know my menu so when they are craving something, they know I will have it and will come and either carry out, or eat in the restaurant. I have to keep in mind there are direct and indirect costs when pricing the food. This is why I will use the ideal food cost pricing method. This method calls for an owner to consider the actual cost of a menu item, and then consider his or her ideal food cost percentage. Ideal food cost percentage varies, but typically lies somewhere between 25 and 30 percent. The
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two are divided and voila, you have a menu item price (Parpal). I will take this into consideration and then decide a price. Each year after I see the profit, I can either raise prices or lower to bring in more people. I know since my restaurant is in a small town, the competition is small so I can use their prices and make mine off of it. As long as it is in the general area of the competition, I will be fine. All these factors will help me decide my prices. Financial Analysis The financial part of the restaurant is one of the biggest aspects of owning or even managing a restaurant. I am opening my restaurant into a building that has already been a restaurant once upon a time. This is going to help me out because it will have some of the tools that are needed in a restaurant, which will help save me money. My building for the restaurant will cost $365,000. This is because the restaurant before had to leave everything in there, which I won’t use, but made the cost go up. The average cost to open a restaurant without buying land is $494,888 (Restaurant Owner). This being said, it is still very expensive to open a pre existing restaurant. I am going to have to remodel my restaurant to make it how I want it to look. I will need to have two grills, which together will cost $25,000. One is for the main cooking, and the other is for the guests who are allergic to something and need something to be cooked separately. This will be a small grill because it doesn’t have to be big.
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  • Winter '13
  • Stewart
  • Restaurant management, Restaurant Owner, Oskaloosa

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