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Restaurants are one of the most profitable yet risky businesses to establish. The cost of starting your own restaurant is not cheap, as there are numerous expenses you need to consider before you even open your restaurant to your customers. You may also see business agreement examples.
Similar to other businesses, investment is needed in a restaurant to to purchase initial inventory and other restaurant equipment, maintain the daily operations, or even fund for expansion activities.
If you own a restaurant or plan to start one in the near future, you should start looking at investments to maximize the earning potential of your restaurant. Unlike before, investments should now be agreed upon in a written agreement or contract. To help you compose and formulate an investment agreement for your restaurant, here are some examples (in PDF format) as well as some tips on how to write one.
Starting your own restaurant is very much different than starting a restaurant in 2008, or let alone in the 1990s. Times have changed and restaurants are now more than just selling food and satisfying empty stomachs of customers. One factor that heavily contributed to the restaurant’s shift from “just food” to “total dining and gastronomic experience” is technology. You may also see sales agreement samples.
Technology, as it has shaped most industries in today’s fast-paced business environment, has also penetrated the food industry. The effects of technology are mostly positive, but don’t expect your favorite dishes to be created out of dust to likes the ones you see in television or in the movies. That type of technology does not exist, yet. You may also like letter of agreement examples.
The effects of technology and how it has affected the food industry, specifically restaurants, mostly center on customer service and marketing.
The traditional kitchen equipment and tools are still there (ovens, grills, ranges, deep-fryers, coolers, freezers, saute pans, baking sheets, soup pots, plates and bowls, etc.), and it has been proven that not even technology can change the way food is cooked and served, albeit the functionality of these equipment are more technologically advanced to make cooking easier (i.e., using an electric stove instead of wood and fire, storing tasty food in a cooler instead of a container filled with ice or cold water, etc.).
Thanks to technology, customer service in restaurants today is certainly different from customer service in the past decades. In some restaurants in the United States and Europe, you don’t have to request a simple menu from the waiter or server as you can just download an app and use that app to order dishes in that restaurant.
Additionally, you may have also noticed that food delivery has been optimized, making it easier for individuals to order from their favorite restaurants or food places. Forget landline, as you can now just visit the restaurant’s website, order your food, and wait for the food to be delivered at your doorstep (more or less 15–20 minutes). You may also check out purchase agreement examples.
Technology has also made it easier for restaurants to reach their loyal customers, as well as potential ones. Websites and social media are the result of technology which are heavily used by most, if not all, restaurants today. Traditional flyers and posters are replaced with digital flyers and perfect posters, and restaurants won’t have to spend a single penny on advertising.
There is a huge contrast in how restaurants spend for advertising twenty to thirty years ago compared to today. Before, the bulk of restaurant marketing and advertising costs would center on the purchase of raw materials, printing, and dissemination of marketing materials.
These days, advertising costs would just mostly revolve around research to identify which online platforms and marketing systems can result to maximum marketing visibility, and eventually profitability for the restaurant.
The great thing about online platforms and marketing systems is that most of them are free, and you won’t have to shell out large amounts just to use the full features of these platforms (i.e., Facebook, Instagram, Snapchat, Google Analytics, etc.). Do you have a new item in your menu? You can easily take a picture of the dish (make sure the angle and lighting is just right) then post the picture in Instagram. You may also see what is a business agreement?
Do you want to know the number and the age group of the people who visited your restaurant in the past three months so that you can create an ad based on those visitors? Use Google Analytics.
It is not only in technology that restaurants have changed for the better (or worst). The past few decades has also seen the rise of themed or concept restaurants. These types of restaurants follow a single theme or concept, which is the main selling point of these restaurants to customers (both regular and potential customers).
Themed restaurants sounded ridiculous at first with the return on investment being so low that it can be compared to selling analogue television sets in 2018. It is true that themed restaurants are ridiculous, and most of them close down in a span of one or two years, but if done right, they have the potential to earn more compared to five-star restaurants. You may also like commercial agreement examples.
Here are some of the craziest (and most unique) themed restaurants in the world. You may or may not use the idea of the restaurants as inspiration when you will be establishing your own themed food place in the future.
Maid cafes swarm the streets of Tokyo and Osaka. These are basically cafes and restaurants where waitresses and female serves are dressed in maid costumes, then act like slaves while treating customers like their masters and mistresses. Maidreamin is the one of the most popular maid cafes in Japan, and a visit to the country is never truly complete without taking a side trip at a maid cafe, specifically Maidreamin. You may also check out professional services agreement examples.
If you thought that eating in a restaurant shaped like a large coffin can only happen in your wildest dreams, then think again. The Eternity does not only represent death on the outside but also in the restaurant’s interior. The restaurant is filled with human-size coffins, funeral wreaths, and black walls—truly a great venue for your last meal before moving on to the afterlife (pun intended). You might be interested in consulting agreement examples.
The Barbie Cafe in Taiwan is equivalent to the maid cafes in Japan. The only difference is that the cafe is filled with hundreds of Barbie dolls and the cafe’s interior is painted pink all over. The Barbie Cafe also serves a very pink cocktail called the Barbie 128.
Probably the weirdest themed restaurant in the world, Cabbages and Condoms uses a birth control theme and has also become a go-to tourist destination among local and foreign tourists. The restaurant’s decor mostly comprises of condoms being formed into flower and statue-like designs. To increase the promotion of responsible family planning and safe sex, the restaurant is also giving out free condoms to customers. You may also see credit agreement examples.
The most popular (and definitely the funniest) television show of the 1990’s has produced over a thousand merchandise and memorabilia in over three decades. But nothing compares to starting a business using Ross, Rachel, Monica, Chandler, Joey, and Phoebe’s favorite hangout spot—Central Perk Cafe. You may also like partnership agreement examples.
The coffee shop that has been a venue of the group’s most humorous, heartbreaking, and exciting moments is recreated in real life thanks to the Friends Cafe in Beijing. Also, if you plan to have a wedding similar to Mike and Phoebe outside Central Perk minus the snow, then you can always tie the knot in Friends Cafe.
Here are the essential components of an investment agreement. This does not apply for a restaurant investment agreement, but all types of investment agreements as well.
Any investment agreement should always begin with basic information of the parties involved in the general agreement. In this case, the parties involved will be your restaurant and an individual or company investor. Basic information should include the names of your restaurant and the investor, the dishes you serve, the services that the investor provides (if applicable), and the complete office addresses of your restaurant and the investor.
The investment as well as the payment terms will provide the weight of your investment agreement. Since you are the one looking for investment, clearly indicate the other party the investment terms and list it down in the investment agreement. You may also see transfer agreement examples.
Investment terms can either be funds given to your restaurant in return for the full investment fund with interest, or a percentage of the restaurant revenues, or it can either be part ownership of the restaurant.
The liabilities of the parties involved should be also be clearly indicated in the investment agreement. This is to provide clarity on the actions limited to each parties and the consequences if one or both parties fail to meet the conditions listed in the simple agreement (i.e., restaurant failing to repay the investor).
The signature line completes the investment agreement. The signatures affixed by both parties binds the parties to each other in the agreement. One party can legally sue the other if it fails to comply with the conditions of the agreement.
We hope you found this article to be informative and helpful as you will formulating your own restaurant investment agreement. Creating a investment agreement is not difficult, you just need to incorporate the correct details and you are all set. You may also see maintenance agreement examples.