posted
I'm thinking about starting a restaurant. I'm not sure how to figure out funding, profit, location, and whether or not it's worth it. Of course, the first serious step in any venture is asking the gurus here at hatrack for advice.
Now shower it upon me! ^^ Posts: 3060 | Registered: Nov 2003
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posted
Are you really serious? I've heard that two out of three new restaurants fail, it's a great way to lose money...
Posts: 2911 | Registered: Aug 2001
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posted
be personable and friendly to customers. Give advice on what foods are best. Know their names, stuff like that. For a small resturant, that's important.
Posts: 3493 | Registered: Jul 2001
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posted
As a culinary management student, I'd suggest it's a stupid adventure
However, if you're one of the few who are feeling reckless, can deal with the money loss if it comes, and love it... go for it.
The first thing you should do is have an idea. What kind of restaurant do you want to open? What kind of food and atmosphere... (generic answers... so fast food, fine dining- italian), etc.
After you have that figured out, you should figure out how you're going to finance this... borrow money from the bank? Do you have the money saved away? Have fellow investers? Then start thinking location and that sort of stuff.
The two options for location: A place you can fix up to resturant needs- you will need more electricity, etc. This option costs much more money, but this means you ahve more say. If you plan on doing this, you should find your chef and have him/her help decide the layout for the kitchen area- they will be there from dawn to dusk, they have worked and know what works and what doesn't. Also, the chef dictates the menu in many ways- what is done by scratch, the expertese, the experience.
The other option is buying out someone who is going under. There are bonuses and for sure negatives to doing this. The bonuses are the you can usually buy all the equipment when doing this... the negatives are people will associate that area with the resturant that went down. There is a saying that basically says a dead resturant smells bad for years after it's been cleaned up.
You need to know the people who will be going to resturant and their dislikes and likes. Age, financial status, education, race, sex, marriage status, children status, etc. In this industry, you are allowed to be sexist, racist, etc . I promise you, chinese people are really unlikely to go to a chinese resturant- espeically if you're not chinese! Education for the most part means bigger salary. Education usually states a degree of higher sophistication. Age, maritual, and children status dictates eating habits. People in university eat out more, but spend less and go to different places. Single middle aged people have different eating habits then married middle aged people... etc. To get that information (demographics) you have three major information pools- Feasibility studies, demographic studies, and perosnal knowleedge. Remember about market saturation too- anything that sells food is considered competition. (so grocery stores are in there for -sure-).
Okay, so if you know your people, have your building, remember these things when planning everything.
-Everything- affects everything.
Theme, decor, equipment, building, staffing, menu, etc.
For example, for the menu, the theme dictates what kind of food, the decor dictates what style you use (paper? laminated? leather folders? etc.), the equipment dictates what can be made and how quickly, building has it's capabitilities and downfalls too, staffing and menu dicate staff skilllevel, how many people, etc.
So-ooo... once you have a menu, a business plan, a building you're considering, a chef, etc. You can present your busines plan and everything trying to get a loan.
Keeping in mind 2 out of 3 resturants fail within a year, good luck
Oh... and this is just the few thoughts I have at the moment. I haven't mentioned purchasing, bullying the suppliers, knowing which suppies you need, frou frou, etc
posted
I hate to be a naysayer, but I agree with Jaiden. If you do go through with it, get first-hand experience in someone else's restaurant before even thinking about opening your own. Your position should be in doing their books. I think you will see that even the most successful-seeming restaurants are money pits, except for a very few. There is an unbelievable amount of overhead. My husband and his father have worked in the restaurant business for years, and would never think of trying to own one. Sorry for the downer.
Posts: 10890 | Registered: May 2003
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posted
It's financial suicide to open a resturant, as far as I'm concerned. I'm never ever ever going to open one.
*doesn't like being a naysayer either, but would rather be a naysayer then watch someone try and fail at such and adventure *
Posts: 944 | Registered: Jun 2001
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A majority of all small businesses fail within five years.
Most human endevours fail.
But some succeed, and the effort is worthwhile. Protect yourself financially, but if you want to do it, do it. There is only one life.
Posts: 26077 | Registered: Mar 2000
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posted
OK, here is a positive approach. is there anything you are really really good at making? English muffin pizza, Caesar's salad, pesto? Start making your best of whatever your specialty is and selling it at fairs and festivals, soccer games, things like that. Get a catchy name and logo, and just start to be everywhere. Eventually, you can get a small store that sells your stuff, and then add fries or whatever. Then, if it goes well, make it into a regular restaurant.
I think of all the people who had the best cinnamon bun, or taco, or gyro, who now have their own little chains. It would not have to be a chain, just a hook for your restaurant, and a starting point.
Posts: 10890 | Registered: May 2003
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posted
I've done the small business thing, and it worked. But we were a service business (IT consulting) with MUCH lower capital costs than a restaurant. All we risked at first was defaulting on a lease for a townhouse.
It's one thing to try and fail. It's another to try, fail, and saddle yourself with a half-million dollars in debt. And that's for a small restaurant.
I'm totally in favor of people trying to establish small businesses. BUT, they have to know what the risks are, and have a reason to think they can succeed in the business. At minimum, you need to figure out how much money is needed to set it up and operate it (including cost of capital and living costs for yourself) for a good long while. You need that amount of money just to get started.
Nothing will teach you about the cost of money over time better, though.
quote: quote: -------------------------------------------------------------------------------- *doesn't like being a naysayer either, but would rather be a naysayer then watch someone try and fail at such and adventure * --------------------------------------------------------------------------------
*would rather see someone try and fail than never try at all*
The only thing you stand to lose is time, money, and effort...
Lots of money and time and effort though... As a chef i've worked many 14 hour days or more. I can't imagine how many hours a good owner should put in. The amount of money is anywhere from tens of thousands to hundreds... it isn't petty cash. I'd rather not see someone I know loose $80,000.
So, although I'd prefer someone to live, etc. I'd much rather not see someone risk this stuff on such a risky adventure... It's like seeing someone walk around with a loaded gun, sure it's their choice, and yes they are "living", etc. I'd just rather not see it
posted
If you do decide to open a restaurant, have it somewhere interesting or in something with rooms and different levels and stairs and things. There's nothing worse than the cardboard box, not matter how nice it is inside.
If people are in a nice environment, that's half the battle right there.
(Don't listen to me. My experience in Restaurant Management, or any sort of management is so far below zero you have no idea. Just my two cents.)
Posts: 8473 | Registered: Apr 2003
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posted
Also, a restaurant is always going to require you to spend about 15 times longer working than you think.
But if you're really up for it - go for it. I adore little local restaurants and support them out of the sheer fear that we will soon be living in a world dominated entirely by Old Chicago.
Posts: 8504 | Registered: Aug 1999
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posted
My husband worked in a German gourmet restaurant in Boston that was three levels. It was very cool, and the food came on a dumbwaiter, which I had never seen, but had read about in grade 3. (Harriet the Spy)
It was dark and cozy and just a little bit creepy, like you were in some old gangster movie.
A boxy place can be sweet and homey. too. You can always get booths with high backs, so each is its own little cubicle.
Posts: 10890 | Registered: May 2003
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quote:Lots of money and time and effort though... As a chef i've worked many 14 hour days or more. I can't imagine how many hours a good owner should put in. The amount of money is anywhere from tens of thousands to hundreds... it isn't petty cash. I'd rather not see someone I know loose $80,000.
So, although I'd prefer someone to live, etc. I'd much rather not see someone risk this stuff on such a risky adventure... It's like seeing someone walk around with a loaded gun, sure it's their choice, and yes they are "living", etc. I'd just rather not see it
You say that... yet you ARE a chef, are you not?
Posts: 2432 | Registered: Feb 2001
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posted
Tres, there's a pretty huge difference between being a chef who works in someone else's restaurant and being the owner who takes all the financial risk.
Posts: 9866 | Registered: Apr 2002
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posted
Yes I am, but as dkw said, the only financial risk I run is a bounced pay cheque. Not thousands of dollars
And Tres, if this is where someones heart is, they should go for it. They just shouildn't go into it with false expectations. It is crazy. But as long as you know it is -crazy-, then go for it. It's like any other risk. Buying a lottery ticket is stupid when looking at the chances, but I still do it. this is just higher stakes, and I don't want anybody going into it with false ideas.
I'm happy someone told me I was crazy at the idea of becoming a chef before I did. I am still doing it, but I realized more what I was getting into.
(And yes, I know the irony of a chef telling someone not to start a resturant. I realize it's me telling possible future employers to get lost But, then again I'm planning to go to university next year to become a dietican, so that I can work at resorts/retirement homes which have regular hours, benefits and unions (!) because of the problems in the resturant business).
posted
If you're starting a restaurant, you're supposed to have enough saved to survive in the red for at least 3 years, or you'll go under in less than one. At least, that's what I've heard. Posts: 21182 | Registered: Sep 2004
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posted
If you think that's bad, think of what it would take to make a publishing company...
Anywho, onto resturants, yes it is one tough one to do. You have to remember to pay for everything. The lease, The utilities, the salaries, and most importantly, the food!
However, if you truly wish to do this, I don't believe someone should try to stop you... unless of course you probably can't handle a bad slump of debt... Then perhaps someone should.
Posts: 1831 | Registered: Jan 2003
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posted
I don't know anything about owning a restaurant, but I have to say that the coolest building I've ever eaten in is Zen Palate's on Union Square in NYC. The food is exquisite, sure, but being led through the cafe, up the stairs, through the pillows-on-the-floor Japanese eating area, up more stairs, and over a bridge to our dining area overlooking the floor below is just awesome.
Mmmmm, Zen Palate. I could go for some of that right now. Posts: 1681 | Registered: Jun 2004
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posted
See, a publishing company can outsource most of it's operations such as printing, marketing, etc., so the capital costs CAN be much lower than a restaurant's. Of course, you give away a lot of the potential gain doing that, but your exposure is much lower.
I could see some kind of specialized publishing house getting started this way - maybe textbooks, or professional manuals - by someone with very good contacts.
posted
I haven't really seen anyone mention this yet:
So you've got a great idea for a quirky new restaurant: great decor, neato-funky atmosphere, cool/hip/friendly waitstaff, whatever. Just remember the number one thing that will win (and keep) the customers is the food. Unless you are opening a restaurant in NYC, there is NOTHING that will save a restaurant if the food isn't good.
My former neighborhood in Baltimore (Mt Vernon) has a ton of restaurants. Some come and go, some stick around for decades. A new mexi-cali style restaurant opened down the street and I thought it would be a perfect fit into the restaurant scene in our neighborhood - after all, you could get Thai, Afghan, Italian, upscale, downscale, etc, but no mexi-cali restaurant (or even good Mexican) in Mt. Vernon. Chris and I decided to give it a try. The location was good. The atmosphere was SUPERB. Whoever did the decoration was brilliant. It was warm, yet cheery, slightly trendy and very comfortable. The waitstaff was very efficient and friendly. It was a little pricy, but not at all out of the normal range for the area. But the food was HORRIBLE. It was gorgeously presented - could have been photographed for a haut cuisine magazine - but it was nearly flavorless (unless HOT is a flavor). Everything was bad. Chris and I ordered different entrees and appetizers and everything was . . . I hesitate to write "overspiced" because "spice" implies flavor and this stuff was just HOT. It was the most un-enjoyable meal I've had in recent memory. We never went back. I'm pretty lenient with new places and if the food had been so good as to simply call "unremarkable" I'd have gone back in a few weeks to see if it had improved, expecially since they got everything else right. But this stuff was so thoroughly unenjoyable that eating there again wouldn't even be a risk. Unpleasant food, in my mind, was a sure thing. The place closed a short while later.
It boggles my mind that someone would obviously put so much thought into a restaurant in every way except the one aspect that makes it by definition a restaurant - the food.
One other place in my neighborhood was a long standing restaurant with excellent food. The manager had a falling out with the chef. Hired a new one and changed the menu. The food was edible, but far inferior to what it was. The restaurant closed a few months later and the regulars (I was one) all lamented its passing. But for us the passing was back when the original chef left, not when the place actually closed its doors.
So I don't have any advice from a business aspect, but I'm an avid restaurant goer and if your food is what will make you or break you. To be successful, in my opinion, you either have to have better food than the competition, or have at least "good" food in a genre that is lacking in the area you plan to open. (My $.02)
posted
Yeah, I've lost two fantastic, non-pricey chinese restaurants due to a huge change in the quality of the food that I can only attribute to the chef leaving or a change in management.
It's always sad when a great restaurant goes bad.
Great. Now I'm jonezing for the hot and sour soup and asparagus and shrimp in spicy garlic sauce that is no more.
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. I promise you, chinese people are really unlikely to go to a chinese resturant- espeically if you're not chinese! Education for the most part means bigger salary. Education usually states a degree of higher sophistication. Age, maritual, and children status dictates eating habits. People in university eat out more, but spend less and go to different places. Single middle aged people have different eating habits then married middle aged people... etc. To get that information (demographics) you have three major information pools- Feasibility studies, demographic studies, and perosnal knowleedge. Remember about market saturation too- anything that sells food is considered competition. (so grocery stores are in there for -sure-).![[Eek!]](eek.gif)
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