The BizFilings blog covering business tips and trends.
Tips for Launching a Restaurant in a Down Economy
Published on Dec 31, 2010
Read 'Tips for Launching a Restaurant in a Down Economy' at 'Time to Start Up,' the small business blog by BizFilings.
In a down economy, there are a number of challenges to starting a business. For one, banks tend to tighten their lending policies when times are tough, as do most investors. There is also weakened consumer spending and confidence to consider - a problem that will likely limit any startup's revenue potential.
For the restaurant industry, there are even more obstacles, as the budget-heavy and transportation-dependent nature of restaurants leads to unpredictable fluctuations in spending and overhead costs.
But Cecelia Washington managed to grow her franchise, Cecelia's Bakeshop, right through the recession. Launched in mid-2006, the company specializes in vegan, gluten-free and other intolerance-based baked goods and sweets.
"I think that people with gluten intolerance, food allergies or other health issues need treats, too," she told the Atlanta Journal Constitution.
As living proof of her values, Washington argues that with devotion and the right mindset, a down economy can be an opportunity to grow, especially for restaurant entrepreneurs.
"If you start a business when the economy is down, you have time to build your brand. You could do the farmers market circuit," she added. "Then you'll benefit when the economy takes an upswing."
But ultimately, Washington points out, it is about the service itself. "Having a unique product distinguishes you … If it tastes good, people will follow."