When opening a retail store or fast casual restaurant, we always hear from clients that right away they are going to wholesale, deliver and offer catering services out of their store. We love ambitious enterprises and want to see it happen, yet opening a retail store on its own is a very large undertaking and one that needs a lot of care and attention. Starting with a retail store, catering, wholesale and delivery are 4 different revenue streams with 4 with different associated costs. We recommend the following for getting your revenue streams in order and maximizing your future potential.

1) Open your retail store first. Understand your clients needs, get comfortable with the ordering, receiving, production and presentation of your products. Streamline your menu, stay true to who you are, you cannot be everything to everyone.

2) Dig deeper into the analysis of your current pricing model and your food costs. If you are in line and comfortable, you can then prepare for the additional revenue streams.

3) Start with catering or delivery next depending on your enterprise. Catering is a great way to produce a lot of the same product and charge in bulk. In addition, you can time your orders and prepare for the catered event in advance. Delivery is a way to add incremental revenue from individual guests that happens in real time.

4) Add Wholesale only if you feel that each account justifies the gross profit for the products sold. Remember, typically you are selling the same products for 50% off of retail prices.

5) For all of the above, prepare a simple budget accounting for the extra staff needed, packaging required and increase in food costs.

Lastly, if you plan to add these revenue streams to your business, please plan with your architect to allot for the extra space needed to produce, store (refrigeration, freezer, dry storage) and package. Starting with a retail store is a great way to get known and give a face to your business. Once you have received great press and reviews, you will get busy and approached by many for wholesale, delivery or catering. It is your business, your home and best to take some time to really prepare for the operations and processes before you say yes. Once your business has a good rhythm, let the floodgates open.

Happy Revenue… TaraPaige Group