What to Consider BEFORE Going From One to Two Restaurants

An old adage in this business is that every restaurant owner with one unit wants a second, and every owner with two operations wants a third, and so on and so on. Particularly if you are in your third or fourth year of operation as a startup owner, and think that you have a good handle on your present enterprise, you may be considering launching another. You're not unique in this desire.

The good news is that you've survived a crucial phase in the startup process and that your successful track record can open financing opportunities not available when you were starting out. Institutional investors will take you more seriously. Friends, family members, and business associates will want to jump on your bandwagon. Additionally, you have developed systems and procedures that can be carried over to another restaurant and you may have developed competent trusted management staff to assist you with the process.

The not-so-good news is that the restaurant business can become geometrically more complex with each unit you add, particularly if you decide to operate multiple concepts with different menus. Running both a fine dining steakhouse and a family pizzeria could require the agility of a juggler.

But even if the thought of a new challenge gets your adrenaline pumping and -- torpedoes be damned -- you decide that you want to expand to a new location, just respect that you are now playing a new game. You will want to know the do's and don'ts of the game, as well as proven strategies for success, and how to win before you even start to play. You will need additional information and knowledge to avoid any serious missteps so that you succeed and excel.