Cost of Starting a Restaurant in Nigeria (November, 2023)
One of the businesses in Nigeria that is constantly birthing millionaires is food restaurant business. This is because, there is always a need for people to eat food. Single men and women, especially working class, find a restaurant as the best option for eating in a schedule tight day. If you have passion for a culinary life, you can make a lot of fortune floating a restaurant business in Nigeria.
In the course of this article, we would be looking at the cost of starting a restaurant in Nigeria. We would also be looking at a stepwise guide on how to start one that is successful. Without much mouthing , let us delve in.
How Much Does It Cost To Start A Restaurant In Nigeria?
Having an Idea or an ambition to start a restaurant is not enough. You need money to bring your restaurant idea to life. On an average scale, the cost of starting a standard restaurant in Nigeria is ₦800,000. A Nigerian restaurant business can be a stressful venture, but it is really worth trying.
How To Start A Successful Restaurant In Nigeria (2023)
#1. Choose The Type Of Restaurant You Want To Start
This is the very first step that you would take in your Restaurant genesis. At the Idea level, choose the niche of restaurant business you want ot float in Nigeria. Here are different types of restaurants that can accrue a lot of profit for you in Nigeria;
- Fast food Restaurants
- Fine Dining restaurants
- Ethnic restaurants
- Casual dining restaurant
- Quick service restaurant
#2. Write A Business Plan And Raise Some Capital
A business plan is a formally written document that outlines your business goals, how you intend to achieve them and the time frame for that. With the aid of business plan, you would organize a plan for your restaurant business in a very simple way. You can test the feasibility of your business idea, and make the running of your Nigerian restaurant smooth.
Also, with the help of your well crafted business plan, you can be able to raise funds from sponsors. In the plan, you should outline how you intend to run the restaurant, an estimate of your monthly or yearly profit expansion, which your target audience would be and other relevant information. In your restaurant business plan, you should include an executive summary, competitive analysis. Development plan, marketing strategy and financial factors that would come into play in the business.
#3. Get A Good Location
If you find out the type of restaurant you want to start, then you assume who your target customers would be. If your restaurant is located in an academic environment, then your target customers would be students. If it would be located in a metropolis, then you would be on the lookout for working class people. The location of your restaurant largely affects your customers base. So in this light, choose a location that would supply your target customers. The cost of renting a place in Nigeria varies due to a lot of factors. Its is difficult to estimate how much it would cost to get a good spot in a preferred city of your choice in Nigeria.
#4. Get The Equipments That You Would Need
You would need to put in place all the necessary equipment and kitchen appliance that you would need. Depending on the type of restaurant you want to start, there are different equipments that you would need. Also set up a menu that fits into your restaurant type. Some important equipments include steamers, ovens, cooking equipment, grills, deep fryers, broilers, restaurant ranges etc. If you do not have some of this important equipment, then go ahead with necessary small materials that you would need.
#5. Employ Good And Experienced Staff
Even if you are directly involved in operations, you still need good to employers workers. Your employee size depends on the type of restaurant you want to start. For a small Nigerian restaurant, you may need 2- 5 workers. But in a large scale restaurant business, you would be needing at least between 12- 50 workers.
Difficulties You Might Face When Running Your Restaurant Business
#1. The Venture Is A Stressful One
Working in a Nigerian restaurant can be stressful and hard. The working hours can be long and very strenuous. You have to wake up as early as possible make preparations for the service you would render that day.
#2. Dealing With Customers That Are Rude
One of the biggest challenges you would face in your restaurant business is dealing with rude people. There are many ways to deal with Nigerian customers that are rude. Let us highlight them below:
- Kill them with Kindness
If your Nigerian customer is getting too loud and unruly with you, you can be tempted to get back at them with the same type of attitude. That is always the wrong thing to do. The truth is the customer is not there to insult you, he is originally there to pay for your culinary services. Therefore ignore the stern behavior of your customers and be professional.
- Recognize the feelings of your customer
If you have no intent to agree with your customer, endeavour to acknowledge what they are saying. When people have a problem, they want to be heard. For a start, use a positive tone like, “I understand” and “I will fix that right away”. Nigerian customers always want to hear that you want to solve their right away. If a customer has a bad time in your restaurant, he is likely going to talk about it to his/her friends and family. This bad ripple effect can affect your business and drastically reduce your customer base.
- Don’t forget to Apologize
Whether you are right or not, always try to apologize to your restaurant customers. This would show them that you understand and are dealing with the problem. You customers would like it if you go extra mile.