What does it take to start a restaurant? Anyone ever tried or had friends who did? I realize the risk and the number of factors involved--though probably not all the factors. If one does not have money in the bank already, is a loan sufficient, or does one need to have wealthy partners/relatives? Is the risk just too great unless you have the money to lose in the first place?
ive worked in a few restaurants (one of which closed after a few months)
restaurants are very risky. id say that unless youve got considerable experience running one (or have associates that do) id recommend you stay out of it.
the last restaurant i worked at, the owner worked more than 12 hours (probably closer to 16-18) a day every day for 3 years when he opened his restaurant...
restaurants would probably be really fun to design though!
you'd have a better shot at success if it was a chain restuarant, a franchise you know. i have considered looking into this even tho it's counterintuitive to my sense of places.
but I say - hey i want some money too! give me some bread and butter!
Yup...here's the skinny. Stainless steel kitchen equipment (buy it at an auction), coffee maker and tea maker (also should be bought at auction) , you need at least 6000 square feet for a 30 table restaurant and kitchen - add another 1200 square feet for a 10 seat bar. Keep in mind you will need permits from the city for cooking and food storage, if you have a bar, set aside at least 3000-5000 for an annual liquor license. In order to get off the ground, you'll need at least 15 waiters on staff to be open 6 days a week, 18 if you're open 7, add in 2-3 bartenders and 2-3 managers, plus a really good accountant to outsource bookkeeping. Also, the computer system should be purchased at auction, but will still run you 6000-8000 dollars. The biggest expense of all however is the building finish out, set aside a good 250,000 for this - and hire a very good contractor - do not skimp on this. All told, to open the doors expect to pay 500-600 thousand.
Here's the upside. A packed restaurant night in and night out with 30 tables and a full bar can generate 8000-10,000 -- a day. Keep them coming and you will prosper.
If you can use the bank's money, do it. If you take a partner, make certain you can trust them implicitly. Any restaurant is a roll of the dice, my advice is to offer what people want and find a really good kitchen manager that packs people in on a regular basis and knows what they are doing. Nothing is more damaging than an ill prepared kitchen staff. Further, make certain your waitstaff is thoroughly trained and knows your expectations. If you do all of this, you are ahead of the game and will probably succeed.
start small: no one is going to invest 500,000 roubels let alone dollars if you are asking for advice on setting up a restaurant here!
i dont know anyone (unless they are a break away top line chef) who could pack a 30 table resturant night after night.
thats 120 covers which a large majority are probably going to sit empty. with your 15 waiters sitting around smoking ciggarettes whilst you pay them!
I have a few good friends who are chefs, one opened a joint venture a few years back but is now back as an exec chef at a well established london resturant. the other is head chef at the top of fosters swiss re: 40th floor kitchen with great views.
but if you are about to attempt it i would say small but tasty
a single shopfront can be just as popular and profitable (AND LESS HEADACHES) as a 8000 sq foot monster than you are going to need to be conran to open anywhere in a decent location.
I would read Anthony Bourdains "kitchen confidential" for some good advice on what not to do when opening a joint. And fo an insight into what acutally goes on in kitchens and liscenced establishments.
The less knowledge you have about the business, the simpler it should be. A good start is always a hot dog stand, keep the menu simple, the more sandwiches and sides you serve will translate to more inventory. If you keep your inventory low it will be easier to manage your ordering, and compare to your sales receipts for security (to se if people are stealing when your not there). You could start one for as little as 15k (you can probably do it cheaper, but this is an average), try buying used equipment from a restaurant supplier and look for a small store front with low rent, to keep your expenses low. Always with any service industry customer service is key. Treat your customers right and you could have yourself a nice little cash cow. Talk to your accountant and lawyer because yes, restaurants do fail and there are ways to protect yourself financially through incorporation, the laws vary state to state but if you already own your own business than you know this. This is probably the best way to learn the business and believe it or not hot dog stands with simple menus make good money, they make more when open 24hrs but lets learn to chew before we can eat. If your deadset on a sit down restaurant then keep with food you know and please keep your menu small, trust me, the more ingredients…
Oh ya, pizza places do extremely well too, but for more overhead!
Key to the restaurant business is like any other, keep your overhead low, and kiss the customers ass!
So what ever you do, Good Luck.
Working for the man has its advantages too!
get schooling and/or long experience in food biz and management. one of the most, always up and up businesses. high rate of coke consumption. don't sell or cook anything you don't like. fresh food and menus. no breakfast. close between lunch and dinner. a sign of quality. advice from my uncle who had a succesfull lokanta.
i have some friends who are opening a restaurant/bar next week. the name is brouwer's >> flemish for brewer. they will focus on belgian food, with 40 biers on tap and over 200 in bottles. they bought an existing warehouse in seattle and renovated it. watching them start this place up has been amazing. you better have some serious cash flow to get it up and running though.
their web presence is near completion. all text is still FPO. the food menu is pretty set with exception of the prices of course >> brouwer's
I do restaurants, but I don't know much about starting one from scratch. However, one of our clients has an excellent leasing attorney. They never go into a pad site or tenant space unless the developer/landlord fronts at least a third of the construction costs. I don't know whether this is because they are an established brand, they have a good attorney, or this is the norm. But you should be able to get a similar deal. Most shopping centers cover the construction costs of certain tenants because they need that particular kind of tenant for diversity. A good mall tries to balance their stores out to target a certain demographic. If you can come up with a type of restaurant that is in demand, you might be able to sell yourself and get financial help from your landlord.
You might try to start with a mall and see if they are looking for a particular kind of restaurant or food court tenant. Otherwise, try to find a stand alone location as close to other restaurants as possible.
The only other advise I have is to have a passion for the kind of restaurant you are, and be sure to ruthlessly squeeze every penny out of everyone you have business dealings with and berate them at the same time for not being available to you 24 hours a day because you are the only client they have. Oh! Did I say that?
guiggster- sorry about the late response-didn't see your question until today...actually the response came from my husband who helped to start a restaurant in the Houston area over 12 years ago and it is still going strong and he worked in restaurants for about 6 years...feel free to pm me and I can get you in touch with him for more information-he is very knowledgeable on restaurants!
restaurants are a popular choice of side ventures that architects and interior architects typically go into later in there careers. Most however fail - but not the way you think
They are extremely expensive asside from start up - running costs do sumount
the big ones liquor license, food storage and food handling and of course insurance. You will need this on everything - waiters, chefs, location, etc. Don't avoid it either its the one security you will have against letigation.
I like the post on the hot dog stand - good one
I plan to open a restaurant (said i would do it before i hit 40) - simple yet elegant. A few friends own a 20 seat restaurant that typ is 40%, expensive restaurant to eat at but they run it themselves. Cut, clean, wait is all done by the owners...a waiter is brought in for special occassions or when the occupancy exceeds the 40%. The big clincher and how they manage and measure their success is that they don't allow walk ins - everything is done by reservations
The decor is great though very Bali chic - a few trips to Indonesia and a shipping container back filled the place
Funny you should say that, Javier. I was doing a punch list at a restaurant once and they were doing staff training at the same time. I went into the ladies room and there were three female servers in the HC stall doing drugs. I kept on with my list and after about 10 minutes they decided I wasn't leaving, so they gave up and left. Half an hour later, they walked in on me in the men's room, turned around and walked out and glared at me the rest of the time I was there.
I spent plenty of time on the opposite side of the restaurant business. Tending bar, waiting tables, cooking, washing dishes; I like to say I did everything in food service except make money. I was either going to go to arch school or culinary school. Obviously I chose the former. There are plenty of times I question that decision, and I still dream of operating my own restaurant some day, but mostly so I can eat "free" and hang at the bar.
Mar 16, 05 9:24 pm ·
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Ever started a restaurant?
What does it take to start a restaurant? Anyone ever tried or had friends who did? I realize the risk and the number of factors involved--though probably not all the factors. If one does not have money in the bank already, is a loan sufficient, or does one need to have wealthy partners/relatives? Is the risk just too great unless you have the money to lose in the first place?
ive worked in a few restaurants (one of which closed after a few months)
restaurants are very risky. id say that unless youve got considerable experience running one (or have associates that do) id recommend you stay out of it.
the last restaurant i worked at, the owner worked more than 12 hours (probably closer to 16-18) a day every day for 3 years when he opened his restaurant...
restaurants would probably be really fun to design though!
you'd have a better shot at success if it was a chain restuarant, a franchise you know. i have considered looking into this even tho it's counterintuitive to my sense of places.
but I say - hey i want some money too! give me some bread and butter!
Yup...here's the skinny. Stainless steel kitchen equipment (buy it at an auction), coffee maker and tea maker (also should be bought at auction) , you need at least 6000 square feet for a 30 table restaurant and kitchen - add another 1200 square feet for a 10 seat bar. Keep in mind you will need permits from the city for cooking and food storage, if you have a bar, set aside at least 3000-5000 for an annual liquor license. In order to get off the ground, you'll need at least 15 waiters on staff to be open 6 days a week, 18 if you're open 7, add in 2-3 bartenders and 2-3 managers, plus a really good accountant to outsource bookkeeping. Also, the computer system should be purchased at auction, but will still run you 6000-8000 dollars. The biggest expense of all however is the building finish out, set aside a good 250,000 for this - and hire a very good contractor - do not skimp on this. All told, to open the doors expect to pay 500-600 thousand.
Here's the upside. A packed restaurant night in and night out with 30 tables and a full bar can generate 8000-10,000 -- a day. Keep them coming and you will prosper.
If you can use the bank's money, do it. If you take a partner, make certain you can trust them implicitly. Any restaurant is a roll of the dice, my advice is to offer what people want and find a really good kitchen manager that packs people in on a regular basis and knows what they are doing. Nothing is more damaging than an ill prepared kitchen staff. Further, make certain your waitstaff is thoroughly trained and knows your expectations. If you do all of this, you are ahead of the game and will probably succeed.
That's a good breakdown tinydancer. Where is your experience coming from?
i am starting a bring your own food restaraunt its going to be huuuuuuuge!!!!
hey vado i already started it at my office...boo hoo
guiggster:
start small: no one is going to invest 500,000 roubels let alone dollars if you are asking for advice on setting up a restaurant here!
i dont know anyone (unless they are a break away top line chef) who could pack a 30 table resturant night after night.
thats 120 covers which a large majority are probably going to sit empty. with your 15 waiters sitting around smoking ciggarettes whilst you pay them!
I have a few good friends who are chefs, one opened a joint venture a few years back but is now back as an exec chef at a well established london resturant. the other is head chef at the top of fosters swiss re: 40th floor kitchen with great views.
but if you are about to attempt it i would say small but tasty
a single shopfront can be just as popular and profitable (AND LESS HEADACHES) as a 8000 sq foot monster than you are going to need to be conran to open anywhere in a decent location.
I would read Anthony Bourdains "kitchen confidential" for some good advice on what not to do when opening a joint. And fo an insight into what acutally goes on in kitchens and liscenced establishments.
ITs a lot of work
I own a restaurant, 2 in fact.
The less knowledge you have about the business, the simpler it should be. A good start is always a hot dog stand, keep the menu simple, the more sandwiches and sides you serve will translate to more inventory. If you keep your inventory low it will be easier to manage your ordering, and compare to your sales receipts for security (to se if people are stealing when your not there). You could start one for as little as 15k (you can probably do it cheaper, but this is an average), try buying used equipment from a restaurant supplier and look for a small store front with low rent, to keep your expenses low. Always with any service industry customer service is key. Treat your customers right and you could have yourself a nice little cash cow. Talk to your accountant and lawyer because yes, restaurants do fail and there are ways to protect yourself financially through incorporation, the laws vary state to state but if you already own your own business than you know this. This is probably the best way to learn the business and believe it or not hot dog stands with simple menus make good money, they make more when open 24hrs but lets learn to chew before we can eat. If your deadset on a sit down restaurant then keep with food you know and please keep your menu small, trust me, the more ingredients…
Oh ya, pizza places do extremely well too, but for more overhead!
Key to the restaurant business is like any other, keep your overhead low, and kiss the customers ass!
So what ever you do, Good Luck.
Working for the man has its advantages too!
check out "Opening Soon" on the Fine Living channel --
CORRECTION ON PREVIOUS POST:
Pizza places cost more to open, but your margins are far better than hotdogs and burgers.
get schooling and/or long experience in food biz and management. one of the most, always up and up businesses. high rate of coke consumption. don't sell or cook anything you don't like. fresh food and menus. no breakfast. close between lunch and dinner. a sign of quality. advice from my uncle who had a succesfull lokanta.
sorry, i don't consider hot dog and pizza stands, restaurants.
i have some friends who are opening a restaurant/bar next week. the name is brouwer's >> flemish for brewer. they will focus on belgian food, with 40 biers on tap and over 200 in bottles. they bought an existing warehouse in seattle and renovated it. watching them start this place up has been amazing. you better have some serious cash flow to get it up and running though.
their web presence is near completion. all text is still FPO. the food menu is pretty set with exception of the prices of course >> brouwer's
and dont forget hot dog stands are a very different kettle of fish in korea
I do restaurants, but I don't know much about starting one from scratch. However, one of our clients has an excellent leasing attorney. They never go into a pad site or tenant space unless the developer/landlord fronts at least a third of the construction costs. I don't know whether this is because they are an established brand, they have a good attorney, or this is the norm. But you should be able to get a similar deal. Most shopping centers cover the construction costs of certain tenants because they need that particular kind of tenant for diversity. A good mall tries to balance their stores out to target a certain demographic. If you can come up with a type of restaurant that is in demand, you might be able to sell yourself and get financial help from your landlord.
You might try to start with a mall and see if they are looking for a particular kind of restaurant or food court tenant. Otherwise, try to find a stand alone location as close to other restaurants as possible.
The only other advise I have is to have a passion for the kind of restaurant you are, and be sure to ruthlessly squeeze every penny out of everyone you have business dealings with and berate them at the same time for not being available to you 24 hours a day because you are the only client they have. Oh! Did I say that?
guiggster- sorry about the late response-didn't see your question until today...actually the response came from my husband who helped to start a restaurant in the Houston area over 12 years ago and it is still going strong and he worked in restaurants for about 6 years...feel free to pm me and I can get you in touch with him for more information-he is very knowledgeable on restaurants!
restaurants are a popular choice of side ventures that architects and interior architects typically go into later in there careers. Most however fail - but not the way you think
They are extremely expensive asside from start up - running costs do sumount
the big ones liquor license, food storage and food handling and of course insurance. You will need this on everything - waiters, chefs, location, etc. Don't avoid it either its the one security you will have against letigation.
I like the post on the hot dog stand - good one
I plan to open a restaurant (said i would do it before i hit 40) - simple yet elegant. A few friends own a 20 seat restaurant that typ is 40%, expensive restaurant to eat at but they run it themselves. Cut, clean, wait is all done by the owners...a waiter is brought in for special occassions or when the occupancy exceeds the 40%. The big clincher and how they manage and measure their success is that they don't allow walk ins - everything is done by reservations
The decor is great though very Bali chic - a few trips to Indonesia and a shipping container back filled the place
read Anthony Bourdoin's Kitchen Confidential and you will lose all desire to open a restaurant.
although abracadabra is right about all the coke. the wait staff and bar staff will rob you blind, especially to keep their drug habits going.
yeah javier, i saw that guy on nightline once. total downer.
Funny you should say that, Javier. I was doing a punch list at a restaurant once and they were doing staff training at the same time. I went into the ladies room and there were three female servers in the HC stall doing drugs. I kept on with my list and after about 10 minutes they decided I wasn't leaving, so they gave up and left. Half an hour later, they walked in on me in the men's room, turned around and walked out and glared at me the rest of the time I was there.
I spent plenty of time on the opposite side of the restaurant business. Tending bar, waiting tables, cooking, washing dishes; I like to say I did everything in food service except make money. I was either going to go to arch school or culinary school. Obviously I chose the former. There are plenty of times I question that decision, and I still dream of operating my own restaurant some day, but mostly so I can eat "free" and hang at the bar.
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