 What is up guys today? We're going to be shooting a video on how do you build a successful restaurant in 2020? This is by far the most requested topic for us to shoot a video on mainly because of all you dreamers out there All of you guys want to be able to create something actually serve people your crazy Creations and something that you've been dreaming of for years to come. Hey guys, this Wilson here I just want to give a major shout out to these people who have commented in And and support us because of the end date. It's much more than just talking behind the camera I'm actually connecting with you guys So definitely shows a lot of support and I definitely feel it So thank you major shout out for you guys if you guys want to get featured make sure you guys leave comment section below Or just follow along the journey either Instagram or YouTube So a lot of you guys have been asking how do you build a successful restaurant out there Wilson? And that's the reason why we're shooting this video for you to give you just a quick sense of what it takes to build a Successful restaurant the step-by-step and on top of that I want you guys to be able to build something that has people coming through the doors And that's the reason why we're going to dive in to the five core principles That I personally follow in order for us to build an ice cream shop into an international chain Which recently got acquired now without further ado, let's dive right in the number one core principle to understand and building a Successful restaurant is to know your customer It is super crucial for us to understand the needs and the wants of our customer in order for us to create an item That they would enjoy we don't create items because of What we'd like and this is by far the number one Mistake that a lot of restaurantiers make is to create items that they they like and then they enjoy themselves But rather creating items that are fitting for their paying Customers and that's a little bit of a mindset shift that would set you apart from a struggling Restaurant here to a restaurant here that has lined up out the doors For example with 720 Suites our ice cream shop. We created this whole brand with Michelle in mind Now who is Michelle? Michelle is an 18 year old University student she loves spending time with her friends She loves being on Instagram and TikTok and she loves Sharing moments with the fans and family and that's the reason why everything that we created is specifically for Michelle from the item that we created to our Social media presence to the pictures that we take to the experience that they receive when they come into our shop Everything is tailored to Michelle and because Michelle feels and engage in this she feels like wow this place is amazing She in turn was able to get a lot more of her friends to come in and enjoy our products And that's we're able to get traction right out the gate By identifying everything and tailoring everything to Michelle's needs So for you you need to create something specifically to your customer go out there and start Identifying your own Michelle in order for you to create a successful restaurant in addition to that by Identifying your core customers. That's how you're gonna be able to build some loyal fans We don't want to go out there and create items that only people come in once and they never come back That's not a sustainable business And that's the reason why you need to understand Michelle in order For her to come back again and again to bring her friends and that's the power in knowing your customers Identifying who they are and identifying their shopping behaviors as well And in addition to that with this whole new change in spending behaviors We need to cater our offering to them as well Whether it is by curbside pickup whether it is online order We need to start implementing and adapting to the ever-changing landscape in order for us to serve Michelle better The second core principle to understand and building a successful restaurant is to keep it simple It is super crucial for us to do that because the major pitfall That a lot of new restaurant tiers make is that they have so many brilliant ideas of what Michelle would want And thus they create three four five pages of menu items in order to serve Michelle But unfortunately as human minds we can only receive so much Otherwise, we would suffer from something called a paralysis by analysis and thus we can't make a decision It is too complicated and we would not buy from you That's the reason why we need to keep things simple Have five to ten different items the core items that you want Michelle to purchase and just put it out there And in turn Michelle can pick her needs from their onwards with 720 sweets We have only four flavors for our ice cream curation The reason why we only have four flavors is because we want to make sure Michelle gets to try our Different rotation and every single week We have different rotation that comes out and in turn whenever she comes in She doesn't have to think for 10 20 minutes about what to purchase because if she likes chocolate There would be a chocolate version up there If she likes something plain and simple vanilla would be up there if she wants something tropical there would be a fruity option out there and it just helps her make the decision so much faster so much simpler and thus It becomes an effortless experience buying from us and that's the experience you want to serve to your customer In addition to that we need to make sure that we keep it simple by Understanding our costs. We need to keep items out there that are super profitable Make sure you work out your math and in this video We talk about how do you calculate the cost of good solds for your menu and thus if and only when you have Enough margins in your menu items would it work for your pocket at the end of the day? We want to work so hard To put some profit in our pockets and that's how you're able to build a successful restaurant It is by having profits left over after all the crazy expenses from rent from cost of good solds and labor That's why you need to keep everything super simple The perfect segue into point number three, which is to know and love your numbers This is by far the biggest mistake that restaurant tears make is to not know their numbers just imagine this you working five years in your restaurant and you're looking at tens of thousands of dollars coming in every single month You're happy but at the end of the month you're sad You're sad because you don't know why your bank is left with only a hundred bucks because all these expenses are Are costing you tens of thousands of dollars? And that's what a lot of restaurant tears face is because they don't understand their numbers without understanding the numbers they do not know whether they're truly profitable or Are they actually losing money? It's a very different story from what you make and as a revenue to how much you put it in your pocket That's the reason why we need to know our numbers and pay attention to them In addition to that it is crucial to know the numbers so then that way we know areas of Improvement for example, if we have 40% cost of goods sold So that we have identified then we need to understand Why is it costing us 40% because typically in the industry? We want to aim at only 25% cost of goods sold some areas That might occur that brought up that percentage might be for example spoilage That means we're ordering too much food and they go Expired and in turn we have to throw them away and that becomes a practice and an oversight that we have in Operating our business and if we don't understand the numbers if we don't pay attention to it We would not pay attention to this operational flaw, which we can easily fix Imagine just imagine that 10% of cost of goods sold that we're throwing away every single month that money Could be your profit that you put in your pocket and that's to provide for you and your family So that's the reason why understanding your numbers is crucial to your restaurant success If you guys find any value whatsoever from this video make sure you smash the like button because that just shows me This is the type of content you like and I'll create much more of it for you now Let's dive right back in The fourth key element in creating a successful restaurant is to diversify it is crucial for us to diversify as you can see from the last few months if you put all your eggs in one basket and In only focusing on dine in as a service only then the pandemic would completely wipe you up Then the political unrest in the world would completely wipe you out when the slow days There's no income coming in and that's the reason why you need to diversify Into different streams of revenue perhaps something like catering running different events or even doing a workshop or courses online would help you diversify and bring in different streams of Revenue when your dine-in service is being affected for an example check out this video right here where I interviewed Kyle and how he has made more than $50,000 just by selling courses on how to make cocktails and that in turn isn't an additional Income that he's able to add on top of his dine-in service So for your restaurant make sure that you guys create different streams of revenue and actually explore Where can you provide more? Value for your customers The fifth component in building a successful restaurant is the ace formula I'm sharing this formula with you based on my personal experience on building multiple different businesses And this is a foundation of what I personally follow that I've seen tons of Success what does the ace formula stand for it stands for a line connect and explode What does alignment mean a line means to identify your why identify your mission and identify your values So then that way you take a stand on What you stand for and in turn you are able to attract people who? Believe in the same thing whether it be customers or your team It is super crucial for you to identify that the second piece connect. What does connect mean? Connect means to connect with your audience connect with your regular customers So then that way you start nurturing them into loyal fans And when you have loyal fans guess what these people will buy from you again and again These are the people who would pay premium These are the people who would buy from you over the new guys on the block And that's how you're going to be able to have tons of loyal fans by connecting with them by connecting with your team You're going to be able to have some all-star people to help you out These are the people that can help you run your business like their own without You being there all the time and then last but not least explode How do we actually do? Advertisements and how do we actually do marketing it is by stacking by stacking by stacking We don't rely on just one promotion or one stream of marketing We rely on all these different types of Marketing tactics in order for us to actually have exponential results for us Explode in revenue and explode in traction a lot of people fail in their business Because they focus on marketing tactics before connecting with their customers before aligning with them And that's why this ace formula is super powerful And this is also the formula that I've used to build our ice cream shop into a seven-shop chain Which recently got acquired so this stuff works make sure you guys jot down notes and follow the ace formula So there you go the five key components that sets apart the struggling restaurants versus the ones that actually bring in Profit every single month. I understand this video might be a little bit short and a little bit on the surface And that's the reason why we created this master class for you over an hour long Completely free where we dive into how do you build a successful restaurant? Make sure you guys sign up in the link below because that's where I'm going to be presenting it to you an hour long of Action-packed Content just for you. I really hope you enjoyed this video. Make sure you guys subscribe along the journey I'll see you guys in the next video