"How to run a restaurant effectively?

" is always a question that many business owners in

the field of cuisine concern. Contract is one of the crucial parts that restaurant owner needs to

even start their business and run it successfully. A business contract is basically an agreement

between two or more parties that must contain several key elements to be legally valid. It could

be verbal or in writing. However, a written contract is preferred because it is more reliable and

lest risky. Having everything clear in contracts can be legal protection under every deals and

relationships with suppliers, contractors and employees.

Depend on purposes of contracts, it can be just simple or complicated. Everything should

be included in the contracts in case you need it. In common, every contract should include the

basics such as the parties, description of services, payment method and a dispute resolution

procedure. In restaurant industry, the first things need in a contract is the parties, including set of

names, signatures and other business information. the second element in contract is description

of services or results. It is details about how the work to be done or the expected result. For

example, in an employment contracts, responsibilities and benefits of employees will be clarified

so they will have a clear understanding about how they going to perform at work.

Another important element of a contract is payment. The one who is paying expenses and

the method, manner and timing of payment are always listed clearly in the contract to legally

protect parties’ benefits. Restriction is another element that both parties in the contracts want to

include. It can be exclusivity agreement, restraint of trade or other things that is not allowed to

do during the valid time of the contract. Depends on certain situation, parties can agree to put

different information in contract to make sure their benefits are protected.

One of the contracts that restaurateurs usually have to deal with is lease contract no

matter they have a take away kiosk, a fine dining or a franchise. Restaurant leases are typically

complex and need hard-work to negotiate. No one want to be locked into a lease that will
negatively affect their business. For restaurants, liquor licenses and permit contingences are the

things that owner definitely want to write down on the contract with lender. They should have

details about ability to obtain the Government permits, approvals, and licenses need to

implement business operation. The negotiate should include the length of the contingency period,

identity of the health permits, conditional use permit, liquor license, and other permits need from

the particular authority. In addition, restaurateur also concern about protection for their property.

It can be the protection from activities of other business surrounding them. For example, the

owner may want their restaurant not to be permitted within 15 feet of the lease line to make sure

their customers’ access to restaurant is affected by other business.

Another contract that is important for restaurant is supplier agreement. In those contracts,

the terms of when and how ingredients, paper product suppliers, or beverages will be delivered

to the restaurant. It is important to have every requirements and condition clearly in the contract

because if the supplier fails to provide good quality goods or not in the timely manner, restaurant

will find it hard to perform well. Some common things should be considered in a supplier

contract are prices changing around the year, delivery routine, compensate for both parties. Just

like other types of contracts, prices and payment method is also crucial between restaurant and

its suppliers and those detail should be defined in the contract.

Contract with cleaning agent is also important. For some restaurants, they may use other

organizations to do their cleaning. It is important for both customer perception and compliance

with health issues. Cleaning services usually is responsible for the front of house cleanliness. it

could be swept, vacuumed, and sanitized. It also could be use for cleaning linens, such as

uniform for employees, table clothes and linen napkin. In this type of contract, it should define

which services cleaners or laundry service will provide for restaurant and how much do they get

for those services. Besides, in this contract, the party that is responsible for accidents, injuries, or
property damages must be clarified. You always want to make sure all the responsibilities and

benefits for both parties are listed in the contract.