What Type of Business is a Restaurant
Some restaurant owners think that this type of business is related to manufacturing and merchandising.
Did you know that it's neither of the two? What type of business is a restaurant, anyway?
Take a look at manufacturing first. This pertains to the conversion of raw materials into certain products. Unless you farmed your raw materials like corn, chicken, and vegetables, the restaurant business does not fall under this category. The other option is merchandising. With this business, you will be purchasing pre-fabricated items or products from suppliers and you will sell them as is to targeted customers at a higher price to earn profits. In a restaurant, you don't serve raw meat, right? So this means that your business is not under this category.
In a restaurant, you're selling products as well as intangible services like cooking, table service, nice table, marketing, etc. The income is derived from the food items you're serving to customers. With the ability to cook and serving delicious foods, you're making some money. With this in mind, you can now classify the restaurant to be in the service business.
Basically, the restaurant is in the foodservice industry. You will be purchasing raw materials and with the skills of competent cooks and service crew, you can deliver/serve tasty foods. Just think of it this way? your skills will be worthless if you don't have the raw materials for cooking; on the other hand, the raw materials can't be eaten unless someone cooks them. Each aspect is vital and will contribute to the success of the business.
If you want your restaurant to thrive, you must look for reputed suppliers to have a regular source of inventory. You should also have competent staffs like cooks and waiters to help you in delivering only the best food items to customers.
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