Worldwide, the market for food delivery stands at €83 billion, or 1 percent of the total food market and 4 percent of food sold through restaurants and fast-food chains. It has already matured in most countries, with an overall annual growth rate estimated at just 3.5 percent for the next five years.
The competition among restaurants is fierce, and you’ll need to give your all to be successful. Your success on your restaurant venture takes more than your love for cooking and food, there are many factors that you need to look at, from registering your business, getting the right education and employees, bookkeeping and taxes to all kinds of challenges. This article will help you prepare from the inevitable problems.
Do you need to go cheftopia to find the right partner for your business?
It’ll take some research and some investigative skills to get the real scoop if a potential chef is a culinary wizard or a culinary wannabe.Look for a chef that has Red Seal Endorsement! The term Red Seal refers to the Interprovincial Standards Red Seal Program. It was designed to create a national standard to help ensure that journeypersons are achieving the same level of training and certification from province to province.A Red Seal chef has met a standard for creativity, quality, and professionalism; An RSE is a symbol of excellence and many years of studying and practicing culinary arts.
How much does it cost to open a restaurant in Canada?
Average restaurant start-up costs vary from a few thousand to a few million. According to a survey, the average cost to open a restaurant is $275,000 or $3,046 per seat. If owning the building is figured into the amount, the average cost is $425,000 or $3,734 per seat. You must have at least $750,000 in liquid assets to open a McDonald's or Taco Bell restaurant. Your net worth must be at least $1.5 million if you want to open a KFC.
Many restaurants, particularly independent establishments, fail during their first year because they are undercapitalized.Restaurants should have enough money in the bank to cover their immediate costs plus an additional food and beverage reorder, two payroll cycles and six months of rent. Prepare for the unexpected operating expenses.
Researchers at Cornell University have identified that thecompetitive environment can have a huge impact on a restaurant’s success or failure, particularly if the owner is unable to differentiate his establishment from the competition.Restaurateurs that are able to identify trends and change rapidly to meet consumers’ needs tend to succeed.
Restaurants often operate on thin profit margins because intensive labor and food costs generally run from 60–70 percent of gross sales. Start-ups should be careful not to overspend when purchasing equipment. Look at second-hand options, shop online and buy only what you need now. Another restaurant’s failure may be fortunate for you, find equipment at greatly reduced prices. – Shorter
Federal or Provincial: Take the quiz and identify what best fits your business.
You can register your business federally or provincially, one advantage of registering federally Is business name protection. You will be able to do business all across Canada under the same business name
Incorporating your business is recommended. Corporation is a separate legal entity, which provides you limited liability; it creates a wall that secures your personal assets.
Want to Start a Business without living in Canada?
If you’re a Canadian Citizen
Yes, starting a non-resident business in Canada is possible. All you need is a Canadian address (not a Post Office box, but a real Canadian address). If you personally have or establish a Canadian address and are a Canadian citizen or a landed immigrant, you can register your business as a sole proprietorship (or as any of the other permitted forms of business in Canada).
If you’re Not a Canadian Citizen
If you're not a Canadian citizen or landed immigrant, One of your options is to form a partnership with a Canadian living in Canada; then you can use his/her address for starting your business in Canada. Another approach is to start an incorporated business. You would still need a Canadian address to enjoy the tax benefits of having a Canadian Controlled Private Corporation.
The federal statute requires that 25 per cent of the directors be resident in Canada. In case there are fewer than four directors, then the CBCA (Canada Business Corporations Act) requires that one director be resident in Canada. Each province has different residency requirements and an investor wishing to incorporate in Canada should consider this issue.
Existing foreign corporations can register to operate in Canada by either
Opening a branch office - To do this the foreign corporation must make an application for registration as an Extra-Provincial or Foreign Corporation in each province where the business intends to operate.
Incorporating a Subsidiary - a subsidiary is a Canadian corporation whose shares are held by the foreign parent company. A subsidiary can be incorporated federally or provincially. Compared with a branch office, incorporating a subsidiary gives the parent company limited liability from the actions of the subsidiary.