How to Setup a Restaurant/Takeaway Properly | MSF Associates

Set yourself up for success!

Starting up a restaurant/takeaway business in Leeds can be an exciting and rewarding venture. It requires a hell of a lot of careful planning, attention to detail and a solid understanding of the industry you're going in to. In this comprehensive blog, we'll delve into the essential steps you need to set up your business successfully by focusing on the crucial aspects that will make your business in Leeds thrive. So, carry on reading to unlock the secrets to creating a thriving restaurant or takeaway business in Leeds.

Step 1: Legal Structure, Sole Trader or LTD Company?

This first step is where many can go wrong, a change in structure further down the line can be costly and a massive headache. If you're one who prefers little stress, like us - then setting up a limited company is the best route. Why you ask?

Firstly, it differentiates you as an individual from the company. Your company goes into debt, you'll not be required to fork out your own pocket to pay this debt. It's a thing called Limited Liability - it's one of the major reasons why people choose this route.

Secondly, a limited company requires it's own bank account in its own right. You cannot use your personal account for LTD co payments/receipts. This gives financial transparency as a dedicated bank account for business transactions keeps personal and business separate.

It also increases your professionalism and credibility. Your customers paying into your business bank account demonstrates that the business is well organised, adheres to good financial practices and is committed to maintaining proper financial controls. This can be very important when dealing with your suppliers, customers or even investors/lenders. Leeds is a thriving hub for investment and innovation, don't get caught being unprofessional!

You could always choose to go down the Sole Trader route which has very minimal set up costs in comparison to a LTD company. It is the least complex of the two and you'll be able to start business in a jiffy! This structure is more suited towards those whose primary income will be their business. If you've got a main job and trading on the side, then it's a no-go! You'll be paying too much taxes when it may be unnecessary.

Step 2: Concept Development, are you simply offering the same thing as your neighbour?

In business it's crucial to understand what sets you apart from your competitors. A unique concept will be something that sets your restaurant or takeaway in Leeds apart from the competition. Consider looking into your target audience, the location they'll be in and the type of cuisine you're offering. Do they mix well? (It's not only your masala that has to mix well!)

Let's say you operated your business just outside of Leeds Train Station. The majority of your potential customers will be in a rush heading to work or meetings around town, they'll usually be after a quick, cost-effective bite. Now, if you're selling a buffet instead, I'm sure your traffic won't be anywhere near as good as the Greggs next door.

Market research is essential, by identifying market opportunities and assessing competitors it helps your restaurant / takeaway in Leeds make the informed decisions, increase your competitiveness and thus improve the chances of your success within Leeds!

Step 3: Staffing and Training, one bad hiring can ruin the entire team...

Hiring skilled and competent staff that share the same passions as you will always raise your rankings as a restaurant. It's quite easy to be dragged into hiring low quality staff, but in the end who's at a loss - it'll be you. You'll be hiring new staff every other month, spending time training them for them to just leave. Investing in staff who love what they do, are loyal and professional allows you to increase your restaurants food quality, service standards and overall professionalism. Always regularly evaluate and reward staff to maintain their motivation and to build a positive work environment. Noticed your waiter has been serving customers exceptionally? Pull him/her aside and offer them a free meal - it's a simple yet kind gesture that'll make them want to carry on with their service.

Step 4: Knowing Your Ins and Outs, this is where we come into play!

Okay, so now you know how to structure your company, develop your concepts and which staff to hire.

Hiring an accountant who works within your industry is the next step. By hiring a specialised accountant for your industry it can bring numerous advantages to your restaurant/takeaway. What sort of benefits you ask?

Industry knowledge and expertise. An accountant that's familiar with the food industry in Leeds knows and understands the unique challenges, regulations and specific accounting practices that are relevant to your business. They'll be able to provide tailored advice, better tax advice and guidance on more things that you can think of!

Choosing the right accountant will save you money. By being familiar in your industry they can identify areas where you can save reduce costs, streamline your financial processes and even improving your efficiency and profitability.

Accountants who specialise in your industry will often have a strong network of professionals in related fields. Your accountant should be your go-to if you're looking for a professional. Lawyers, consultants or financial advisors are people who we work with almost on a daily basis. Network your way into new opportunities, partnerships and collaborations. All this can be done by simply hiring the right accountant!

Ready?

Setting up a successful restaurant or takeaway business in Leeds requires careful planning and attention to detail. This comprehensive blog has highlighted the key steps for success, such as choosing the right legal structure (a limited company or a sole trader), the importance of having a unique concept, market research and hiring skilled competent staff. We also emphasise that hiring an accountant who specialises in the food industry in Leeds is of importance, as they'll bring in industry specific knowledge, expertise and vast networking opportunities. Make sure you've got your separate business bank account, so that you look professional and credible to your customers and suppliers.

By following these steps and seeking specialised support, you - the aspiring restaurant or takeaway owner can set yourself up for success in the ever growing vibrant Leeds market.

Restaurants and takeaways can benefit greatly from working with a specialist accountant to ensure they set up their business correctly. If you hadn’t noticed already, we are a specialist accountant for food service businesses: restaurants, cafes, and takeaways. Unlike other accountants, at MSF Associates, we have years of experience serving the hospitality industry and delivering excellent service to our clients. This is why we understand you and your business perfectly and know just how to help you.

If you're interested in finding out more about how MSF can help your restaurant become more profitable, please click here to get started or call us on 0113 240 4100.