Tips For Reducing Start-up Costs When Open a Pho Restaurant

In previous articles, we have outlined some costs to open your pho restaurant. In the following article, we will share with everyone more specifically tips to reduce costs to the lowest level.

The cost of opening a pho restaurant is one of the things that many investors are concerned about when starting a business. The savings tips below not only help you control costs but also effectively save on problems that may arise.

The cost of opening a pho restaurant is a concern for many people when starting a business

Opening a pho restaurant and things you don’t know

There will be a lot of experiences, and notes you have learned, seen, and shared before opening a pho shop or restaurant. However, some seemingly normal and unimportant things may be the deciding factors for Pho restaurant success.

Therefore, try to cultivate and learn more experiences and information from many different places. Especially for customers doing business for the first time in the culinary field, continuous learning and improvement is extremely necessary to stay abreast of reality at present.

Therefore, for first-time owners of a pho restaurant, being aware of your limitations is extremely important. You want to know as soon as possible what needs to be done, when and how, so you can plan for it, budget for it, then do it at the right time and do it right the first time.

How does this help you reduce costs? This will be expressed in the following few words:  Knowledge = Planning = Reduced Mistakes = Efficiency = Time = Money. In other words, you will have to spend more money if you make some of the following mistakes:

• Unable to determine the work that needs to be done
• Not planning or setting a budget for restaurant operating expenses
• When you encounter a mistake and it can be overcome
• When not doing things in the best possible way under certain circumstances
• You didn’t do it correctly the first time.

The business plan needs to be highly realistic so as not to cost too much

Prepare a solid and highly realistic business plan

This cannot be said often, but many potential pho restaurant owners do not have a business plan. Many people think that they don’t need a specific plan and just need to follow their predecessors and follow their feelings. However, this will significantly affect your business results later.

Additionally, in addition to being practical, your business plan needs to demonstrate your planning and budgeting. This is really the time to find out what you don’t know and start asking the right questions and looking for answers. For tips on pho restaurant business plans, you can read our Getting Started with Pho Restaurant Business Plan series.

Understand the pho business market and services for customers at the restaurant

Even though you are open to all customers, not everyone comes to eat your pho. Only a small portion of the population will come to your door, and an even smaller number will decide to return. Within a 1-mile, 3-mile or even 5-mile radius of your business, who decides to come and when?

In turn, the question becomes: what kind of customers do you really want to attract and frequent your restaurant? This seems too abstract to quantify and design. But it can be done, and done regularly, by those who know they need to define their market and design their services to appeal to those exact audiences.

Understanding the market where you open a restaurant is also the most effective way to save costs

Negotiate to get the best rental contract

When you first opened, what was one of the biggest costs in your pho business that you couldn’t control? This is not a trick question and the answer, of course, will be the lease agreement.

The problem is that not many people realize this until they start selling pho restaurants to the market. And many people never realize it even when they close early. In fact, they choose to pay this cost long before the first customer walks through the door.

In fact, to get the best rental contract costs you need to know what will be on your menu, who the customers are, what style they will serve, and how much revenue and profit they will earn. How much is it? From there, you will have options for choosing premises and negotiating for the best price.

Simply put, pho restaurants have controllable costs and uncontrollable costs. The lease contract that you pay monthly to the landlord, once signed, will not change for many years. It will remain the same for as long as your restaurant operates at this location, regardless of the terms of your lease.

A pho restaurant lease can be good or bad depending on many things and for this reason alone, you want to get the best deal for your idea at a particular location and make sure it’s the right deal. 

The bottom line is why sign a lease before anything else? Why not negotiate and sign the “best” lease possible once you have your business plan in place and a clear idea of what you want to achieve?

The cost of renting space is not small and is equally important in the cost of opening a pho restaurant

Keep the design and construction costs of your pho restaurant low

This sounds like a highly accurate statement. However, in reality, the total cost of opening a pho restaurant is made up of many factors. Design and construction (or construction) costs are just two of the largest cost components before you open. Since this is the case, keeping a close eye on the design and construction costs of your pho restaurant is a must.

It’s important to realize what stage you’re in in the process of opening a restaurant. Viewed at many different levels, common and main stages include concept definition, design, construction, pre-opening, opening, post-opening and operation.

Each phase has its own timetable. The design phase begins with your concept and menu, and determines nearly all operational aspects of the restaurant before the construction phase. The trick is to minimize design changes after construction begins and/or apply project management to control any negative impacts one has on the other.

Design and decoration need to follow the estimates in the plan so as not to exceed allowable costs

Be prepared, disciplined and always flexible when opening a pho restaurant

Last but not least, you need to possess excellent preparation skills, a strict discipline and complete flexibility to be able to deal with the challenges and obstacles that often arise when building a restaurant. 

It all depends on the knowledge and attitude of the shop owner. The success of a new pho restaurant depends first of all on the owner and the owner’s leadership must be clear from day one. So, be prepared, be disciplined, be flexible, and never forget the goal of your original idea.

Obviously opening a new pho restaurant requires more than just doing the things mentioned above. However, if you do exactly what we have shared above, you will have accomplished 20% and benefited 80% of your new business. By doing so, you will have a very high chance of success.

If you have any questions related to opening a pho restaurant in the US. Please leave comments or questions below or contact Skipli immediately for the best support and advice.