How to Start a Buffet Restaurant

Part 1 - How to start a Buffet Restaurant business - Background

A buffet restaurant is one where customers can fill their plates with a variety of food for a set price. Normally buffet restaurants pick a particular theme, such as Mexican or Chinese, and then choose different variations of standard dishes to offer. Buffets help communities by exposing them to different types of food without making them buy a full plate of something they may not like.

Our guide is in 3 parts:

• Part 1 - How to start a Buffet business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a buffet restaurant?

The median cost to open a restaurant (without buying the land) is about $225,000, but there are ways to cut your costs. Because buffets can be successful regardless of the neighborhood you’re located in, you may be able to find an affordable location and furnish it with used equipment and supplies (e.g., tables, chairs, decor, etc.) to save money.

What are the ongoing expenses for a buffet restaurant?

Owners should factor in the following costs for a buffet restaurant:

• Restaurant equipment costs

• Cost of food

• Rent/land maintenance

• Marketing costs

• Employee salary

Who is the target market?

Owners profit from families and individuals who see the benefits of buffets. Those who are big eaters can choose an All You Can Eat (AYCE) option. Those who have a difficult time deciding on a meal can instead try whatever they want, whenever they want it. Finally, many people use buffets as a way to try new foods. Most people won’t cook their own lobster or order an expensive meal in a restaurant, but they may choose a tail to try when they’re at a buffet to see if they like it.

How does a buffet restaurant make money?

Profits at a buffet restaurant (or any restaurant) can be slim. In fact, the high-end Vegas buffets typically lose money with their expensive menu options like Alaskan King Crabs and Wagyu beef to encourage gambling. Owners who don’t work at a casino should price their buffet margins at about 70% or so to cover the cost of what’s on the plate, meaning if the cost of the food on a plate is about $3, then the customer should be paying about $10 for their meal. The additional 70% goes toward maintaining the restaurant’s daily operations.

How much can you charge customers?

A standard homestyle buffet costs about $12 for dinner, while a Chinese or Indian buffet may keep the price closer to $10. Calculate the price of the menu items you offer, and then do research on what other buffets are charging in the area before setting the final price.

How much profit can a buffet restaurant make?

Like all restaurants, owners need to be extremely conscientious about waste. Streamlining the ordering and pricing process can greatly impact your bottom line. Many people will not end up eating nearly as much as they think they will, and even if they do overdo it, the potential for profits is still available. Still, margins can be as slim as 1 or 2%, even considering these facts. Assuming a 2% profit margin, a buffet restaurant would need to sell about 90 meals every day at $12 a piece in order to make about $8,000 worth of profit a year.

How can you make your business more profitable?

Buffets are all about choices for the customers, so consider offering more ways for your customers to get what they want. For example, you may want to do student nights on a slower day of the week, or a themed buffet such as Taco Tuesday. In addition, try offering people meals prepared fresh, either at a cooking station, or as a separate part of the menu. For example, BD’s Mongolian BBQ (a chain buffet restaurant) would offer customers the chance to do one trip to the buffet as a lunchtime offering rather than the standard AYCE.

Day-to-Day and Growth

What happens during a typical day at a buffet restaurant?

A buffet restaurant owner may complete any of the following tasks in a given day:

• Selecting buffet options

• Maintaining buffet/cooking equipment

• Hiring and managing employees

• Completing safety inspections

• Advertising the business

What are some skills and experiences that will help you build a successful buffet restaurant?

Prior experience in buffets will be a huge help. There is a psychology behind buffets, and it helps to understand how people eat and what they want exactly. Buffet owners should also be extremely organized, as the organization and flow of people will need to be carefully considered before a final layout is decided upon.

What is the growth potential for a buffet restaurant?

Growth potential is possible with a steady clientele. Many of the most successful buffets are gathering places in communities, somewhere to go after church or on Fridays after a long work week. Loyal customers encourage newcomers to try your buffet offerings, and provids valuable word of mouth too.

What are some insider tips for jump starting a buffet restaurant?

The first thing you’ll need to do is obtain the proper permits to both move into your chosen building, and to handle food. This will require going to your local authorities and health department to find out more about what’s required in your area.

Many people are afraid of opening AYCE buffets simply due to the amount of food a person is likely to consume. However, there are plenty of tricks to getting people to eat less, both to save you money and to keep people from feeling uncomfortably full (or even ill).

Restaurant owners should keep their plates small, and their water glasses large. The more people fill up on drinks, the less they’ll fill up on food. Many of the buffet offerings should be extremely cheap foods that can be purchased in bulk. For example, carrots and potatoes only cost a few dollars for a 50 pound bag. These cheaper side dishes should be placed prominently around high priced offerings to encourage people to vary their diet. Consider using cheaper cuts of beef or fish, and focusing on the quality of the cooking.

You may also want to consider franchising opportunities, such as Golden Corral. When you franchise, you sacrifice some power over menu options in return for a trusted name and free nationwide advertising to help propel your success.

How and when to build a team

Building a strong team should be done as soon as possible. Management staff will need time to learn the various tricks and strategies you plan to employ for your restaurant so they can impart the plans to employees.

Part 2 - Is a Buffet Restaurant business the right fit for you?

Part 3 - Action plan to launch your Buffet Restaurant business in 90 days