Chicken Lover Restaurant’s Keys to a Successful Expansion

5 Growth Challenges Your Restaurant might Face and How to Overcome Them

Since that first location opened in 2017, Chicken Lover had the idea of expansion in their minds. The restaurant was the first in the market with a new concept of professionally made chicken. Within less than 4 years, Chicken Lover was able to expand to four locations in Kuwait; second branch in 2019, third in 2020 and despite the fact that more than 70,000 restaurants closed their doors for good due to covid-19, Chicken Lover managed to expand to their fourth location in 2021. With each new branch, they’ve continued to provide their customers with Kuwait’s best selection of superior-grade chicken.

‘ Frankly, the first two to three months after the soft opening of the first location were challenging. However, later on, our sales have grown exponentially. This, of course, does not mean that we, currently, are not still facing challenges. In fact, as we reach each new milestone, we experience both opportunities and obstacles. A restaurant owner must always be aware of revenue amount, retention rate, income and expenses which is difficult to do without a point of sale system that provides you with all the data that you need to not only expand but also to increase sales and take smart data-driven decisions. Keep in mind that launching your first branch is not similar to that of your second one. To grow our business sustainably, we increased the number of employees, upgraded our cashier system and optimized our manufacturing processes. While choosing the location of our second branch, population density was the main criterion that proved beyond a shadow of a doubt. This has helped us to adequately uphold meeting customer demand and maintain our standards.’

With the following discussion, the owner of Chicken Lover gives us insights about what challenges to expect when planning to grow and when to know you’re ready for business expansion:

  1. Cash Flow:
    According to research from CB Insights. Restaurant owners have to spend money to make money during a growth period, but this concept can quickly get out of control and leave you in an uncertain position.
    Manage your cash carefully, turn to your channels that produce consistent sales and work to maximize their contributions to your bottom line. Negotiate favorable payment terms with partners and vendors too.

  2. Consistency & Competition:
    Many small business owners are unprepared for the realities of fierce competition, and they quickly lose their way in an attempt to respond.
    Keep your focus on what you do best and continue to communicate your unique value proposition to prospects and customers. Try to benefit from this competition while making your business the main focus of your work.

  3. Market demands:
    One trap many small-business owners fall into when attempting an expansion is the failure to adequately research the new market and make realistic revenue projections.
    Make sure to conduct thorough research on whether there is sufficient demand for your product, and tailor your approach to fit the unique characteristics of the new market.

  4. Staff, Roles and Responsibilities:
    As business grows, the workload increases and employee responsibilities can overlap, leading to common business expansion problems.
    Assigning duties to people with matching skills and expertise is critical for business success. Hiring new employees might be money consuming yet investing in your staff might greatly assist your business growth.

  5. Lack of Proper Systems:
    For business processes to run smoothly, it’s crucial to have systems in place. Inventory tracking via POS systems, for instance, is crucial to monitor how the restaurant is doing. Without these systems, expansion can be very messy and uncoordinated. Old techniques that once worked efficiently may no longer be appropriate as your business grows.
    Reliable point of sale systems such as POSRocket provides restaurant owners with an advanced complete system that facilitates smooth processes and helps you grow into more locations.

We can conclude that launching a new business isn’t easy let alone expanding to multiple locations. However, following the right track in order to get to where you aspire to be is well-worth it. Utilizing the right tools and human power are crucial to obtain people’s loyalty and acquire more customers.

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