Is it better to open a restaurant at the end of the year or at some other time? —Nan W., Wrightsville Beach, NC
A starry-eyed newbie opening a restaurant will rationalize that the month they’re opening is the obvious and best choice, which, depending on the location and concept, could be true.
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Impartial folks like us could make a strong case for the fall season for the following reasons:
- Patio season is in full force, and heaters and patio structures stretch the limits of outside dining (which is rent-free space) into December and beyond.
- The holiday season (November and December) is the most predictably busy time of the year, and holiday parties are both plentiful and profitable. Thanksgiving, Christmas Eve and Day, and New Year’s Eve represent a huge boost in food and alcohol sales.
- Holiday season is also when retailers sell the majority of gift cards. Also known as the restaurateur’s best friend, they represent instant cash and about a 75 percent redemption rate.
- Depending on the structure of the corporation, there may also be tax advantages opening late in the season, as pre-opening and organizational expenses accrued during the year can often be deducted from that year’s taxes.
Spring is, logically, the second most popular time to open a restaurant. Dining patrons are itching to get outside and shake the winter doldrums. Ever since the pandemic, restaurant goers have been more willing to dine outside in sweaters and coats, so the minute the sun comes out and temperatures hit 50 degrees, patios can open again, providing the restaurant with an additional revenue stream.
In the past, the dead of winter (January and February) was considered the worst time to open the doors, because most people are contentedly hunkered down at home during that time. More moderate temperatures are changing that. Some operators actually prefer to open during that time, knowing that they won’t be subjected to a jam-packed house, and kinks will be given ample time to work themselves out—and, just as important, before a disgruntled guest is afforded a chance to negatively opine about an issue on social media, comments that, for better or worse, are written in indelible ink.
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