Factors Affecting Success of Restaurant Business

UNIVERSITY OF INTERNATIONAL BUSINESSDiscipline: basics of organizing a restaurant business
ROS: What factors affect to success of restaurant business?
Alpysbek Z, Stepanenko D, Kim D
Hospitality Management 21.364
Almaty 2022
Abstract
Several variables influencing the success of the restaurant industry were discovered
through the examination of scholarly articles on a related topic. These elements had an
impact on areas such as the financial component, the physical indications, and consumer
satisfaction.
Then, using the insights of three specialists, a qualitative study was conducted.
The evaluation of both primary and secondary sources of data demonstrated that each
restaurant's success is purely subjective. However, it is still important to take into account

the fundamental guidelines for creating a company, financial, and marketing plan. The
restaurant's continued success already directly depends on the company's adaptability.
Key words
Entrepreneur, customer, indicator.
Introduction
Restaurant Success is not always clear-cut. A consistent income serves as a marker of
success for some. Others have more ambitious objectives, such as increasing market share or
obtaining the desired return on investment. No of the objective, every business owner is
concerned with how to make his restaurant profitable. As a result, the subject has been
covered in a number of scientific research. However, practically all of them approach this
issue from various angles. However, there are a number of them: monetary, and physical,
and it is also important to take into account the viewpoint of the customers since it has a
direct impact on the restaurant's success. The best way to respond to this query is to examine
both main and secondary data.
Research question and objectives .
Research question: What factors affect the success of a restaurant business?
Research objectives:
• Studying a financial indicators of restaurant business.
• Key factors to create a successful restaurant.
• Reveal the customer satisfaction effect on success of restaurant.
Literature review
Studying a financial indicators of restaurant business.

According to Nathan Buehler, Your main concern before committing is the upfront
expense of buying an existing restaurant or opening a new one. However, to ensure a good
cash flow and prevent going out of business, your restaurant must control operational costs
and increase sales (Nathan, 2020).
Key factors to create a successful restaurant.
The success of a restaurant depends on many factors that vary according to the situation.
The first stage is planning.
-Find out who makes up the audience of potential customers of the restaurant;
-Get "transparent" ideas about the future business;
-Determine the level of initial costs and current costs;
-Find out the level of profitability and profitability of the institution;
-To decide what the restaurant will be;
-Imagine how the restaurant should be positioned;
-Think over how many and what kind of personnel will be required;
-Get an idea of the quantitative and qualitative components of the menu;
You need to have other information to build an effective business (Mtvralashvili, 2010).
However, this is not all the rules of a «successful business», as it is still worth taking
into account the elements of internal management:
-Marketing;
-Engineering and development of a range of dishes;
-Operational activities;
-Staff;
-Management;
-Company resources and read.

And, elements of the external environment:
-Current legislation;
-Regulatory legislation;
-Political situation in the country and the region;
-Social structure and cultural traditions;
-Features of the economic development of the country and the region;
-Available technologies and know-how;
-Competition, the influence of competitors, and the power of suppliers:
-The purchasing power of consumers and so on (Mtvralashvili, 2010).
However, other people believe that passion alone is insufficient. You'll need both a solid
idea and expertise in managing restaurants (Miller, 2008, p.13). Successful restaurant
management requires at least some prior experience in the industry or extensive research.
Someone who has worked their entire career as an electrician or doctor is probably not
qualified to run a restaurant. A person with ten years of expertise in a field is more informed
than the majority of people in that field and would profit from starting a firm in that sector
(Howell, 1997). People shouldn't start a business in a field where they lack experience
(Howell, 1997).
Another factor that weighs the development of business is to take into account the
benefit of the client, the success of the restaurant depends on it. It is divided into five
subtypes:
-Functional;
-Non-functional;
-Sensorial;
-Self-Identifying;