Open a kebab shop
Open A Kebap Shop: Things To Consider
No doubt kebab is a very popular taste these days. Naturally, it’s really alluring for aspiring entrepreneurs to open up their own kebab shop. But what are the things you need to consider before you open a kebab shop? What sort of expenditures and arrangements you will have to make to start a profitable kebab business? Before you open up your own kebab shop, these are the things you will need to consider.
Requirements Needed To Open A Kebab Shop
Before opening up your kebab shop, firstly considering the legal necessities might be a good idea.
For instance, a business license which you can get for a small fee from the responsible trade or regulatory office will be one of the first things you need.
If you want your customers to be able to directly eat kebab in your shop, you will also need a restaurant permit.
In order to check your reliability, the restaurant permit will be granted to you following your presentation of good conduct and additionally an excerpt from the central trade register.
Authorities will also want you to confirm that you’ve taken a food hygiene course. Which is offered frequently by the Chambers of Industry and Commerce, and only lasts half a day.
Your restaurant permit is linked to you personally and naturally, you will only be able to apply for it when you’re further down in your plans. Having a rental agreement with you for instance, is one of the requirements of getting a restaurant permit.
Though these requirements may differ slightly from state to state, here are the documents you will have to present to acquire a restaurant permit:
1. Identity card or passport with current registration confirmation
2. Excerpt from the commercial registry
3. Criminal record certificate
4. Tax clearance certificate
5. Copy of the rental or lease agreement
6. Certificate of instruction from the Chamber of Commerce
7. If applicable, excerpt from the list of debtors
Handling processes online whenever possible is advised, as it will save you a lot of time. As is making a schedule of when to apply for which document, which will help keep you organized.
Because you will need a sociable and dependable staff to open a kebab shop, you should give great importance to health and safety laws.
Additionally, as a part of the hospitality industry, you will be subject to multiple bookkeeping requirements, such as keeping records of incoming goods, wage account breakdowns, compliance with minimum wage laws, price lists etc.
Choosing The Right Location For Your Kebab Shop
Choosing the correct location for your kebab business will be vital for your economic success.
You will have to assess the local potential of your business, as the vast majority of your clientele will be walk-in customers.
The purchasing power of the customer and the potential number of customers will be two of the biggest factors in estimating your turnover.
On the other side, the competition should also be considered when assessing the potential profitability of the kebab shop you’re planning of opening.
Nowadays, you can find a kebab shop around every other corner, especially in cities.
This necessitates you to offer something special to your customers so they choose to eat at your shop instead of the competition.
What You Offer To Your Customers
For the sake of being able to contend with the competition, you need to decide what you offer in value to your customers.
As an aspiring entrepreneur who’s about to open a kebab shop, first thing you should consider about what you offer should be your menu.
Though classic doner kebabs will be your main item to provide you with the mass of your turnover, diversifying your food lineup will be in your best interest.
But, that doesn’t mean overloading your menu with countless dishes is the way to go. Because the preparation of each new dish would require you to invest in different ingredients, equipment and more man hours etc. Just making sure that the new dishes should be able to prepared by your staff properly with high quality ingredients and at low cost will be enough.
Besides that, you should take into consideration what your potential customers would be willing to pay for these dishes. Aiming to balance the profit margin you strive for and your customers wants and purchasing power will be vital for your kebab business to be economically viable.
After considering these factors in your business plan, you can make a calculation on when you can put your business on a stable monetary position. You should be able to guess how many items you would need to sell at which price points to have enough money in the register after all costs have been calculated.
After all, you and your staff should be able to make a living out of this business.
Choosing The Legal Form Of Your Company
If you want to open a kebab shop, the choice of legal form for the company is a topic that needs to be given some thought.
The legal form of your company should be decided with questions of personal liability and taxes in mind. The correct form will be completely dependent on what your needs are personal preferences.
For instance, in order to secure your assets in case of an emergency, a limited liability company might be a good decision. But , founding a limited liability company often requires a share capital of certain sum of money, at least half of which must be paid at the time of founding the company. Yet, if you cannot afford the particular amount, there are always alternatives which costs much less.
In most cases, it is possible to change the legal form of your company again further down the line.
Calculating The Costs Before You Open A Kebab Shop
Factors such as the location, the furnishings, the equipment needed, the size of the building and the amount of people on the staff will influence your opening costs.
For the business plan you need to open a kebab shop, the start-up, equipment and acquisition costs should be taken into consideration initially. These apply, but are not limited to:
— Trade license, restaurant permit, training, other documents and associated events depending on the federal state
— Furnishing of the premises, renovation of the premises upon takeover
— Purchase of menus, plates, glasses etc.
— Equipment needed for the kitchen, fridges, cabinets, exhaust hood ventilation system / air filtration
Moreover, operating costs that need to be compensated through the sale of food and other items shouldn’t be forgotten. Beginning with the purchase of goods, consulting fees and vehicles to personnel costs etc.
Especially in the hospitality industry, insurance costs, the lease of the premises and the running costs for electricity, gas and telephone should be taken into consideration, along with taxes.
It is advised to overestimate the costs by a small amount in order to have the extra margin of safety needed.
Taking Care Of Financing
After you calculate the amount needed to open a kebab shop, how you will finance this business should be the main topic of consideration.
Financing mainly will depend on how much capital you can arrange for the foundation of your business.
A fitting decision which may depend on your accountability to the company will have to be made here. The required start-up amount can be covered by borrowed money, if you will. There are a lot of offers from both local as well as online banks that are specifically aimed for creating businesses.
As an alternative, government grants could also be a good option to get funding for your business.
Utilize Marketing Well
Before you establish a stable monetary state. You will need to utilize different marketing tools and strategies to make sure establish a connection with your potential customers.
Naturally, satisfied customers’ recommendations will be one of the most effective ways of gaining new customers.
However, this effect will take some time to properly and you will need to utilize other types of marketing.
These tools could be some of these listed below:
— Advertising in Newspapers and Radio
— Flyers and Posters
— Digital Advertising / Online Marketing
— Social Media Marketing
On the other hand, while gaining new customers may be good, keeping your regular customers loyal should also be a priority for you.
Making use of loyalty tools such as special offers for your regular customers after you acquire a reasonable base could be a wise decision, especially after a few months.
The Acquisition Of Goods
Another aspect of running a hospitality business you need to give great importance to is work with dependable distribution companies. This will be critical for ensuring you’re able to consistently provide your customers with high-quality food. Items that are needed everyday by kebab shops such as drinks, meat, skewers, flatbreads and such need to be punctually delivered to your business.
Producing your own supplies could be one of the things that could set your shop apart from the others with superior quality or creative ideas. But still, you have to keep in mind that your time and resources are limited.
Assuming that the concept in your mind entails creations of your own, it would be wise to plan in accordance with production times and costs.
Your Staff As A Helping Force
No doubt you’ll need a solid team to open a kebab shop and run it profitably. As it will be impossible to do it all by yourself, from shopping and purchasing goods to preparing food, cleaning, making sales, accounting, marketing and contacting with your customers. A solid team may entail labor costs but it will increase your capacity for more work and will drive your sales.
Additionally, having loyal employees will help with the flexibility of your workforce. Especially during peak times
Loyal employees are always available when the rush is particularly high and many guests want to be satisfied.
Is A Franchise Worth It To Open A Kebab Shop?
Deciding on whether to enter a franchise system will depend on your individual goals and resources. However, there may be some potential advantages of joining a franchise system, such as:
— Benefit from an Already Establish Business Concept
— Brand Awareness
— Proven Marketing
— Competitively Calculated Prices
— Established Contacts for Acquirement of Goods
— Support with Organizational Inquiries
Yet, there are sometimes high requirements to enter a franchise system. Experience relevant to the industry is often required to enter. Moreover, there’ll be a sum of minimum equity capital required, along with entry fees and monthly license fees.
Sure, these advantages my help you get started easier, but the additional costs associated with joining a franchise and staying as one will no doubt affect your expected profit margin negatively.
Securing Your Business
After you open a kebab shop, the insurance cover for your business should not be neglected despite the higher fixed costs.
It is very important to have a Public Liability Insurance, which thoroughly covers personal injury and property damage from third parties. This type of insurance will also help with possible accidents which can pose a threat to the company from a financial point of view.
There’s also Contents Insurance, which will help you securing your business’ inventory and goods. This type of insurance encompasses the costs of damage that may result from natural disasters and hazards such as from fire, water or storms. In addition to this, a supplementary section will make it possible for your kebab shop to be protected in case of a burglary.
Lastly, Business Interruption Insurance can help you replace the losses that can be proven to have resulted from the closure of your kebab shop. This sort of interruption to the continuousness to your business may result from the need to renovate because of unforeseen damage, for instance.
Taking Over A Kebab Shop Instead
Now you’re familiar with what you have to do to start a profitable business. However, there’s an alternative where you don’t open a kebab shop but takeover one instead.
The advantages of taking over a kebab shop instead would be starting at an already proven location, have regular customers and have access to reliable suppliers.
You might even be able to elevate this already established business you’re about to takeover. And use all the effort that would’ve went to opening and stabilizing a shop on implementing your ideas instead.