Ely Sakhai’s How-To Guide for Starting an Italian Restaurant

According to the latest statistics, there are currently more than 28,500 Italian restaurants in the United States. This is evidence of a highly competitive industry, as only 6% of Americans claim Italian heritage, and the restaurant industry itself is notoriously competitive. Shockingly, as many as 84 percent of them are owned by sole proprietors who are independent. Meaning, they are not a part of large franchise chains and can be classified as family-owned operations in most cases. Given such mind-boggling numbers, what is it that makes the Italian restaurant business so appealing? Since a large number of entrepreneurs seem to pursue this market independently, how do they succeed?

Does avoiding franchising pay off?

The first question that every business owner must answer pertains to franchising. Currently, there are not too many mainstream companies that franchise Italian restaurants. The ones that do, however, offer entrepreneurs an easy way to begin their venture. Besides providing them with a solid business model, franchises can be great for those looking for centralized support. So, why do most entrepreneurs in this business decide to go solo and start projects from scratch?

The answer varies. Some people want the freedom to fully control their business. Others simply want to live by their own vision of an Italian restaurant that is not compromised by franchise rules. There are also some who view ownership as their path to success, believing the surest way to wealth is through ownership and not franchising.

The Right Chef

Looking for the right chef is a step that every restaurant must go through. With independent businesses, however, this part of the process is even more important. After all, franchisees do not have to worry about creating unique signature dishes. When it comes to independent restaurants, those types of recipes are the main reason for their long-term success.

This is why many classically trained Italian chefs make a name for themselves by creating Italian inspired signature dishes. Many of the most well-known chefs of our time are known primarily for their Italian cooking. This provides an opportunity for new restaurants to stand out early on and stand a good chance at success.

Learning the Culture

Although it seems obvious, people looking to open an Italian restaurant should be familiar with the culture. In most cases, people in this industry have many touching points with Italian cuisine already. If not, they should dedicate the necessary time to learn the basics. Failing to do so could compromise the authenticity and cause the revenues to diminish.

According to Ely Sakhai, a businessman who invested several successful Italian restaurants including the renowned "Pasta Presto", this step might be crucial. The reason why is that the audience interested in Italian restaurants expects originality. Meaning, they will not settle for mediocre food options at a semi-decorated venue. On the contrary, they want to eat at an Italian place that lives and breathes Italy in every way.

Marketing

One of the great things about an Italian restaurant is the wide range of people it attracts. In fact, young people will usually be just as interested as the older generations. That means that entrepreneurs can use various marketing campaigns to reach both demographics. For members of Generation X, they can create mailing campaigns that offer discounts.

To target Generation Y, on the other hand, they can take advantage of social media and digital ads. Ultimately, they can experiment with advertising until they uncover a strategy that works well for their audience. And given the diversity of their intended buyers, they certainly have a lot of room to try different methods.

Finding Suppliers

Even before the marketing strategy is in place, every restaurant must find reliable suppliers. This is crucial in areas that do not natively grow the plants and animals required for Italian cooking. In fact, this is the step that can guarantee long-term success for ventures in the hospitality business. As Ely Sakhai notes, those business owners that lack solid relationships with suppliers will suffer. Not only does it cause their cost of goods to go up, it perpetuates delivery and timing issues.

The easiest way to overcome supplier-related adversity is to look at what the competitors are doing. If the competing Italian restaurants in the area all rely on the same suppliers, they are likely well endowed. Meaning, the new venture will probably do themselves a favor to follow in the footsteps of those more experienced.

Celebrating the Culture

Another easy way to attract customers is to offer discounts. Naturally, the easiest way to do so is to focus on Italian-based holidays. Meaning, customers could get special offers and menu items every once in a while. For example, some of the best Italian cuisine can be found in small communities in the heart of California’s largest cities.

For inspiration, new businesses can look to Gilroy's Italian "twinned city" Monticelli d'Ongina.

Mindful About Good Business Practices

Lastly, as with all other businesses, the entrepreneur must keep an eye on the overall venture. That means taking proper care of accounting, employee relations, safety, customer satisfaction, inquires, and so on. The larger the business gets, the more difficult it will be to properly handle these matters. That is why a lot of business owners delegate duties to general managers. In the end, high-quality service is the bottom line of the entire market and will determine who succeeds and who does not.