How hard is it to open your own restaurant?

Chic-Fil-A is the least expensive franchise to open. Even you or I could bust one out. The drawback is hearty. 50% of the profit goes back to the company.

I don't understand. How do you need a lot of capital to keep a smaller restaurant open compared to a larger one??

Less people are inclined to go to a smaller restaurant. They're usually hole-in-the-wall places that get passed up for a bigger place that may or may not be right next door.

A bigger restaurant usually has its own building, and is easier to park in or see from a main street. A small restaurant may be hidden in a long row of other small businesses, so you might only know it's there on the off chance you need to visit one of those other smaller businesses.

A lot of thought needs to go in to a restaurant and it's location. It's not just a matter of "good food" and "atmosphere".
The difference between success and failure may be something as small as what information is available about your restaurant on the internet.

If I'm googling places to eat near me, and your restaurant doesn't have a menu online, or god forbid a website at all, I may be inclined to go somewhere else.

And there you have the first obstacle of opening a restaurant - complete ignorance.

As the others have said...

"It's pretty hard. I've seen things that are pretty hard and this was one of them."

Do you enjoy owning a giant money sink? If you do, own a restaurant my friend.

Okay. I understand and accept I'm completely ignorant about it. I just want to ask questions so I can know more about it.

That's why I asked a specific question related to
>It's pretty hard. I've seen things that are pretty hard and this was one of them.
and what an user said about income.

Thanks. It put the smaller restaurant in perspective, I didn't think about that.

So far I learned the difficulties of specifically a small location and how they fly under the radar, in addition to how people may feel compelled to go to a bigger place with more services. A strong online presence, an easy and clean website with an accesible menu is key.

Could you go into detail about the more services?

I'm not sure what you mean, but let me give you a brief stint of what it took for me to open a restaurant. Give me a sec to type it out.

Good looking out user.

>raised 8 thousand dollars
>found a place in rural San Diego that closed down
>luckily all cooking appliances and decor were still there, so I saved money
>rented it from owner for 600 a month, even though he wanted 1000
>month to month, instead of a lease
>this proved to be a problem down the road
>my 8000 dollar nest egg quickly depleted when it came to buying the food, permits, repairs, advertisement (which consisted of bulletin board postings at the only store in miles and a website, as well as a woman to run the website and ads)
> next, I hired a mixture of family, friends, and friends of family
>the hardest thing I ever had to do was fire all of them except 2
>my aunt, who is an excellent cook, and my wife, who let's me touch her boobies despite being a lousy cook and a slow, shitty waitress
>she was delegated to cleanup
>never mix friendship and business
>tried a lot of gimmicks to get people in the door
>people came for the gimmicks, but didn't buy much food
>working part time in construction and landscaping
>my paycheck has to go to paying rent on restaurant as well as my own rent, food for both places, and skyrocketing utilities
>contemplate suicide every hour on the hour
>didn't see a real profit for 6 months
>I got real fucking lucky
>slowly turn the place around and become a nice spot for both the elderly and young folks
>owner notices and starts raising the rent ever couple of months
>refuse to pay eventually, telling him that either I walk and he loses out on an income altogether, or we set up a lease
>finally get a lease
>slowly quit my construction job
>life gets a little easier
>2 years later
>someone starting construction on a restaurant half a mile away
>in a rural town
>That's practically next door
>contemplate murder/ suicide

That wasn't a very promising read.

Do you think opening up in a too rural town was a mistake?

What kind of food do you serve? What's the pricing like?

Opening up in a rural town was probably the only way I was able to afford it at all.

I started off by wanting to make a seafood place, until I realized I'd be the only restaurant nearby for some people, and that it'd be more profitable to make normal, country food

Steaks, burgers, onion rings, basic breakfast items, soups, fried chicken, etc etc.

I made a point to have a lot of cheap items and appetizers for folks who were on a budget. Sometimes, I would lose a little bit of money to appease a potential customer.

You need to pay rent. You need to pay the electric bill. You need to pay for supplies. You need to pay for a ton of shit including mortgage and insurance. Where does that money come from? Your sales..And when you're trying to gain a customer base, you want to offer good food for cheap. But how do you do that and keep the doors open?

That's the back door fucking you take.

The #1 mistake inexperienced people make after putting down the initial investment to open the place is immediately trying to be frugal and get into the black. To get restaurant set for long term success, you need to be prepared to keep sinking money into it for at least a year, usually. The required investment is way higher than the already prohibitive upfront cost.

Did you ever consider a more "on the go" approach? Like a deli with food that you could take out or eat in?

Kind of like a food truck but seating. Like how chipotle does it's thing.

Yes but profit margins are so thin and you need to work yourself so hard that it is literally never worth it, ever.

There is no situation in modern america where opening a small business is a good idea.

Let me also add that when I say location is key, that doesn't mean it has to be a GOOD location. You just have to know what your chosen location would benefit from.

Being in a bigger town allows for more options, whereas I was in a rural town, I had to focus on appealing just about everyone one way or another. You can't open up a sushi place, as a population of 1500 people might not have enough sushi - lovers to sustain your restaurant, and even if every one of those people like sushi, not enough would eat it every day.

Yeah, but I couldnt find a food truck in my price range. Most were being sold cash only, and I don't even know if you can finance a food truck. I was looking for a space to rent, and possibly buy the appliances as needed. I got real lucky that the rural restaurant had everything in it.

If given the chsnce, I would love to have a food truck. But then again, I'd have to find a place to park it, possible competition, or succumbing to driving to different construction sites.

Okay. Maybe I'm asking the wrong questions.

How do I open a successful food related business that is not a food truck? A cafe that serves hot food? A cafeteria type deal that serves hot food? A small fast food type of deal with easy to make but great recipes?

It would have to be unique enough but simple and probably ethnic?

Depends on your definition of successful
If it's not falling apart, be intelligent about your location and type of food. Something where there's high demand and nothing to fill that gap.

If it's making enough money that your life isn't a living hell, you don't.

Franchise. Save your pennies. Be willing to lose a ton of cash if you fail.

It'll be hard to do once you've succeeded in your franchise while enjoying the fruit. A nice house. A good looking wife. Kids in a private school. Who wants to risk that?

How do people run successful restaurants? How do you make a restaurant profitable? There are restaurants that manage to do this and I assume not every restaurant is broke or in debt.

>a simple menu
>a small menu
>easy to expedite items
>food prep everyday for complicated items, like pre making sauces
>fresh ingredients
>unique taste, not stuff people can make any given night at home

Spoiler: they're just barely scraping by.
Food service is not a profitable industry. There are too many people for whom it's their "dream" to open something like that and it drives the profit margins razor thin. The only places that actually make any significant money are chains/franchises which can drive their costs down through various methods and pay for advertising to drive traffic into their store.

Welcome to capitalism.

wasnt there a webm

>someone starting construction on a restaurant half a mile away
>in a rural town
>That's practically next door
>contemplate murder/ suicide

As you've just pointed out; they're more likely to go out of business before you do. It's a war of attrition and you have the advantage.

I don't believe that. I live in Ny and while I understand there are many restaurants in debt/scraping by, there are way to restaurants that appear to be doing very well. Maybe because I only eat at good restaurants?

>appear to be
Is the key part there.
Just because they're not rundown and are putting effort into making themselves look acceptable doesn't mean they're suddenly rolling in money.

You are so naïve.

I'm no longer interested in educating you. Go be a douche somewhere else.

So economically what is a successful restaurant? What kind of profit do they have to turn and at what point does it become profitable? If all this is true then why are there even reataurants still open?

I am naive but I'm not being a douche. Learn the definition of the word, then realize you're being a douche.

Okay, calling you a douche was uncalled for but you have to face the fact that you are so ill informed that it becomes frustrating to those who know better. We are trying to advise you and you are being rejective.

help me findthe answer

Not hard but not easy, the doors are starting to ice up a bit

Yeah, but I admit to not thinking rationally in a lot of cases. Every little thing feels like a threat. I remember my old boss at a restaurant I worked at. He asked if I knew what was happening to the tops for the plastic ketchup bottles. (We would save the ketchup bottles and wash the tops and containers, and then refill them from larger tubs)
When I told him no, I hadn't seen them, he said "maybe someone's been throwing them out. I swear to christ I'll fucking shoot them."

It just amazed me how angry someone can get over something so trivial, but later on, I kind of understood it.

After being stressed out for a long period, I was worried that things started going so well. You know how when things are going a little too good, you just know something bad is bound to happen to knock you down?

That construction felt like that. Of course, it ended up flopping and is sitting empty right now, but at the same time, there's a tinge of guilt there. Someone else possibly had the same dream and goals that I had, and they failed.

I had put everything I had into my place. If I had failed, I know I would have hit rock bottom.

For 8k you could have had a race car, gj

Different poster, but you do come off as a naive, idiot douche. Came off really pretentious when you said "only eat at good restaurants"

A lot of these questions can be answered with your own research using Google.

TRU

A place is successful when they consistently turn a profit. But once they turn a profit, most restaurants will find a way to maximize or increase that profit.

That being said, it takes a long time in most cases. You need to have a safety net to pay the bills while you get your restaurant situated. This is where most places fail. They can't get the customer base they need in time, and they run out of money to continue operstions.

I ca the give you the super secret success menu to opening a successful restaurant. If that secret was available, everyone would have a restaurant. It's all about trial and error, location, and money.

And knowledge.
And luck.
And hard work.

Really though, it's not worth it. Unless you really love the business, it's not worth it. Like other anons said, you're better off going into a franchise.

>The fact that restaurants fail at an alarmingly high rate, as 90 to 95 percent in the first year, is actually wrong. According to recent studies done by Professor Dr. HG Parsa 59% of hospitality facilities fail in the period of 3 years.

Why would someone open a restaurant if they are not profitable/a money sink/difficult to run/and a poor way to generate any sort of income or stability?

Lifestyle business.

You get to eat free food.

Everyone thinks 'but I'll make it work'

Past head chefs who can cook and think they have the place locked down think they can run a business - most can't. They'd make good GM but not owners.

Don't do it op if you have never work in the industry a few years first and know all the "tricks"

Why would they make good GMs but not owners? Wouldn't they just need to be GMs and happen to own it to be successful.

>I had put everything I had into my place. If I had failed, I know I would have hit rock bottom.
So, does that mean you're still soldiering on?

Somebody post it

roast it

Arby's thread?

See below
Everyone thinks 'but I'll make it work'

Yes sir.

good luck paying off the loans for the kitchen equipment with such a small place.

Very.

How much is kitchen equipment anyway? Stove, fryer, fridge- what else do you need?

you can't compare your home equipment to industrial stuff. proper kitchen equipment costs thousands of dollars per item

an actual owner of a business will see the cost in EVERYTHING, very stingey, jew anyone out of stuff. In a way, not realise restaurants have to spend to make.
A chef would make good GM as the big overheads are above him, he has a menu budget and in tight times during service can pull through with the food. But most can't deal with banks/lenders, utilities and advertising.

They're always seperate.

From what I've seen as an Eurofag, location counts a lot. Usually the places that stay in business are kebabs, sandwich places, anything on the go as long as you offer greasy cheap stuff. The initial investment is low since you don't need as much appliances.
There's also this place selling expensive burgers, but they're top tier and they drown their fries in cheddar, which is uncommon but greatly appreciated here.
As someone who orders takeout more than they should, I'd advise you to find what sells best in your area, make it better than the others, and be a bro to your customers.

Can't you buy it cheap off other restaurants that failed?

Anxiety sucks user. I'm glad you're doing well with your dream.

Is that Hope "Roastie" Solo?

Why can't you use home equipment instead of "industrial stuff"?

Start a succesful McDonalds franchise first.

You can think me with a few hundred thousand dollars, the income of 1 year of a successful good franchise.

Turn the handle

Yeah man, .....god, her vagina is so disgusting!

you can probably get used equipment, but that's still not gonna be exactly cheap since even used, that stuff is still high quality and has its worth
your home equipment is not made to handle 10+ hours of work per day nor the quantities you'll be handling in a restaurant, so it will break faster than you could replace it

Restaurants are close to being the biggest money pits imaginable.

It's ridiculous.

Close to being Veeky Forums then?

Not when it's managed by somebody who has the slightest idea of what he's doing

Nice job, faggot.

Moot always said it was a money pit. Idk how he found money.

moot is a jew, he can find money anywhere

...

i'm sure any sandwich franchise like subway is cheaper

My dad has a restaurant that's profitable and above board (they don't cook the books like literally every other place in town, and they pay a living wage), but it took him about 200k before it started returning, him and his wife work from 10am to 1am six days a week with half of their "day off" spent cleaning, I do all the marketing and print work, and they only actually hire extra waitstaff on Fridays and Saturdays. They love it and it's going well but fuck it's hard work.

It's not opening that's the issue, it's keeping it running that's the problem.

The restaurant industry is heavily impacted by shit outside the control of the restaurant itself, but they've still got to pay the bills regardless.

Economy goes to shit and people stop eating out as often? Tough shit, the bills are due.

Demographics change in your area reducing your client base? Tough shit, the bills are due.

Price of fuel increases driving the cost of everything else up? Tough shit, the bills are due.

The local county / city council increase your taxes? Tough shit, the bills are due.

Hurricane / blizzard / tornado / flood / fire shut your place down for a week or two? Tough shit, the bills are due.

When you're trying to run a business based on a small profit margin, as is done in the restaurant indudstry, even the most minor increase of expenses can have pretty detrimental consequences. This is why the failure rate is so high in the restaurant industry.

It's really easy. The hard part is keeping it open.

Very hard. It's best to find some chump who wants to do the business shit and thinks it's a good way to make money, and chef for him. Don't put too much of your own money up.

Here are the only ways I've come across to become an owner

>Make lot's of money in some other business and invest it

>Be a successful restaurant manager or chef and get a line of credit

>Inherit the business

Banks will not invest in some passionate foodie.

Someone post it

>>Demographics change in your area reducing your client base? Tough shit, the bills are due.

This is basically one of the things that brought my family's business down. They struggled for 2 years with a place in a good location but stubborn elderly people, finally a bunch of workers noticed our place and started to flood in on a daily base and we could manage the place without a loss.

When the workers finished what they were working on, they all left and my family had to shut the place down.

We use a fairly typical 40L deep fat fryer
The oil is changed and the machine is cleaned once a week
If you were to take your 2L Frydaddy into a working kitchen it would need changed and cleaned 20 times a week, while not being able to sustain a constant temperature nor fry the same amount of stuff

This example holds for almost all products, "industrial grade" is more expensive, but its not a scam

I own/operate a restaurant right now. Opening one is fairly easy, keeping it open is the difficult part. It's long stressful hours. If you want to be successful you need to be hands on all the time. In this industry it's very difficult to find help you can trust and rely on.
We keep it simple and only buy fresh ingredients of the absolute highest quality we can get our hands on. It can be very costly to do this but it insures our return business. That's where the hands on part comes in to make sure your staff isn't fucking up your ingredients. Whether you sell cheap bottom barrel shit or the absolute best, you have to make sure every step of the way they aren't fucking up your shit. Don't be disappointed when people don't care as much about the business as you do since you are the owner. People can and will be proud of where they work but they will never love it like you will. This was honestly a hard hurdle for myself to get over. I have great employees and they make us a lot of money so we treat them well and compensate them accordingly. For a family owned non corporate restaurant we do well and when we have a good month or months we always bonus out our star employees. Happy employees will equal return customers. Don't cheap out and serve shit you can get anywhere. Set yourself apart. Keep it simple and delicious. It will be hard but as living proof you can be profitable. We're going on four years open and we have never cut corners or taken the easy way. As business has increased we have expanded in staff and the necessary tools to make it good. Good luck user

By living in his Mom's basement for many years. Seriously.

Good for you user, keep at it

Sounds great

it

It works if you're dedicated to being married to your business

How big is your restaurant? How many people does it seat? What are your overhead costs all together?

it's real easy to open one

read kitchen confidential if you want to be not retarded. it wont explain everything, but any chucklefuck who thinks "I want to start a restaurant" out of the blue should read and understand that book before doing so.

Reading kitchen confidential is not even a fraction of enough preparation to understand what goes into owning and operating a restaurant.

It IS a good book but you might as well be telling him to watch every episode of Chopped to understand how to work as a line cook.

I've been watching a lot of Kitchen Nightmares so I think I know what are the basics.

Small, simple menu.
Fresh Ingredients.
Prepared to order, nothing precooked to serve.
Food that is flavorful and seasoned.
Serve something people can't easily make at home without knowledge. 3