How to Start a Fusion Restaurant

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

A fusion restaurant combines two distinct types of cuisines to create a new style. For example, a Korean-Mexican restaurant may serve barbeque tacos dressed up with kimchi and jalapenos. Fusion restaurants serve to expand the culinary tastes of those in a community and can inspire everyday cooks to take more creative license with their own culinary approach.

Our guide is in 3 parts:

• Part 1 - How to start a Fusion Restaurant 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 fusion restaurant?

Costs can be extremely high to start a restaurant. The median price is about $275,000, which includes equipment, supplies, and rental costs, as well as licensing fees you’ll need for the building. However, what you pay is highly dependent on where you open and how big the place is. A hole in the wall with only space for a few seats may only cost $100,000, though you will limit your profit potential by limiting the seating.

Considering fusion restaurants do best in large cities, you’ll likely need to budget for closer to $500,000 if you’re planning to set up in a highly trafficked area. You may wish to consider starting a food truck before opening a restaurant if you want to keep your costs down.

What are the ongoing expenses for a fusion restaurant?

Ongoing expenses can include the following:

• Employee salaries

• Cost of food

• Rent

• Advertising

• Equipment repair

Who is the target market?

You want customers who are interested in trying new things when it comes to how they eat. You may have a difficult time finding a major market in smaller cities and towns in the US, so you should concentrate on the major tourist areas or large cities. You also want your clientele to be those who understand different types of cuisines separately. If they’ve never had Korean or Mexican food before, then their first experience likely shouldn’t be at a fusion restaurant because it may turn them off from both cuisines entirely.

How does a fusion restaurant make money?

Dishes are generally priced at a significant margin over the cost of what’s on the plate. Ultimately, an owner can charge whatever the market will allow, but most restaurants will triple the price of the ingredients on the plate to cover the labor costs, rents, etc. of the restaurant.

How much can you charge customers?

Customers understand that they’re paying for innovation and expertise as much as they are what’s on the actual plate. Certain chefs can create flavors so complex that a home chef could never hope to compare. Once people are hooked, this type of one-of-a-kind taste can net up to 10 times the cost of ingredients. However, you should research other restaurants in the area before determining specific price points.

How much profit can a fusion restaurant make?

Fusion restaurants can become hugely profitable, especially if they choose to franchise. However, owners can expect relatively modest gains. Restaurants usually net a profit margin between 2 and 3% of each check. So if the restaurant does $400,000 of sales in a year, that’s between $8,000 and $12,000 in profits.

How can you make your business more profitable?

Owners can consider franchising their business, or opening up a smaller, less expensive sister restaurant (e.g., take-out only.) If a business has a signature dish with a special sauce, consider selling the sauce on the website or at the physical restaurant location.

Day-to-Day and Growth

What happens during a typical day at a fusion restaurant?

A fusion restaurant owner has a variety of tasks to complete throughout the day:

• Overseeing employees

• Ordering supplies

• Maintaining cooking equipment

• Ensuring health standards are met

• Reviewing and adjusting menus

• Advertising and marketing tasks

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

Restaurant owners need to be organized to keep up with the many details of running a business. Ideally, the owner will have management experience in a restaurant of similar size. They’ll also need to be excellent at hiring and managing employees. Everyone from the chef to the busboy needs to be invested in order for the restaurant to succeed.

What is the growth potential for a fusion restaurant?

Growth potential is defined by a variety of factors, though it is possible to experience major growth in fusion food. Fusion restaurants are often seen as trendy due to their uniqueness, which means you have the potential for major social media proliferation as well as general word of mouth. Roy’s is a California cuisine/Hawaiian chain restaurant that has managed to achieve a very steady clientele offering fresh foods that satisfy.

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

You’ll need to see what type of need there is in any given area, and then begin to develop your ideas from there. The good news is that people (especially in large cities) are always looking for something new and different to be their next favorite take-out or sit-down restaurant. The bad news is that you may be entering an already saturated market, which means you’ll have little room for error.

Owners also need to be careful with the nuts and bolts of food preparation. Local inspections from the health department need to be treated with the utmost respect. You may want to consider having employee salaries be dependent on how well they adhere to the rules. You’ll also need to know the guidelines of the FDA (Food and Drug Administration) backwards and forwards before getting started. Keep in mind that the FDA’s regulations may change as new information comes out about foods.

How and when to build a team

You should preferably be building a team as early as you possibly can — especially when it comes to management. The more people have a chance to learn about and prepare for their position in a fusion restaurant, the more likely they are to actively promote and sell both the food and experience to customers.

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

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