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CoqaVin
02-23-2014, 09:35 AM
Honestly how much do you need to open your own restaurant? contemplating this seriously

chefcomesback
02-23-2014, 11:29 AM
Lot more than you planned usually. But still depends on your location , type of cuisine since you need to equip the kitchen accordingly.


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CoqaVin
02-23-2014, 11:56 AM
I understand that its more than I am going to plan for hoping to get a spot where a restaurant was so I can save on equipment costs but as I found out recently that does not always work to your advantage

DeepCSweede
02-23-2014, 12:11 PM
I have already selected a property in foreclosure that comes with all the equipment, all I would need to add is a fresh coat of paint and a new grill. I have been contemplating this place for about a year. I make really good money doing what I do though, so it makes it tough to justify especially when you have to put your life savings on the line to do it. It was originally a german/european restaurant that the owners just wanted to retire and they sold out to a mexican restaurant that couldn't make it work. My plan would play on some of strengths of the original restaurant in an updated way and potentially add a brewery element to it. I have some thoughts for what I need/want to happen in the next six months and if they fall through, I am seriously considering upping my business plan to see if it is feasible and pulling the trigger.

CoqaVin
02-23-2014, 12:15 PM
DeepCSweede if its what you want to do and own your own restaurant go for it I say...If you don't mind me asking now what do you do now?

DeepCSweede
02-23-2014, 12:21 PM
I am a partner in a CPA firm, but last year started to discuss a CFO position with a former client that has a strong need for someone to help him grow his business. I am ready to get out of the public accounting business, so if that falls through I am seriously contemplating what I want to do next. I have done consulting work for the hospitality business so I know just enough to be dangerous unfortunately, but also am a bit risk averse with a 6 yr old and 16 month old baby to provide for.

CoqaVin
02-23-2014, 12:23 PM
yea quite a risk with kids to support

CoqaVin
02-23-2014, 12:24 PM
do you have any cooking experience sweede

NO ChoP!
02-23-2014, 12:30 PM
We planned 80 grand to open. Another 80 first year.

Turned into 150 grand to open, 150 first year, and 30 the second...

That's over 100% more than the business plan.

Good luck....

CoqaVin
02-23-2014, 12:31 PM
I hear ya NO Chop its not cheap that I know and there are always things that go wrong or break that are unexpected

how was the equipment when you openened

eshua
02-23-2014, 12:33 PM
Location/size? What's the rent going to be? Will vendors give you 60 day credit? How many years have you worked in the industry, and how recently- that's going to be more important in getting a good staff. I think our first location did it with only 200,000 but that was small, in the Midwest and we got into trouble not paying vendors the first year.

CoqaVin
02-23-2014, 12:37 PM
Location not sure or size not sure hoping to take over a former restaurant to save on equipment costs...what is the common rent for a restaurant NO Chop how much do you pay? worked in the industry for like 5 years graduated from culinary school pretty recently I have 2 people in mind one guy from culinary school that was on the same page as me and a GM for the front of the house we already runs a restaurant and is quite the culinaire if thats a word I think I can make a good relationship with vendors for Meats and Seafoods and Produce but paper products not sure how those bigger companies operate

DeepCSweede
02-23-2014, 12:37 PM
I am well aware of the risk and also how Murphy's law rears his ugly head and doubles everything, that is the underlying factor in why I haven't pulled the trigger on it. I definitely would want some side capital in place, if nothing else have that capital invested in the building so at least the investor capital is secured. The good thing with that too is that the price on the building really can't go any lower, I can pick it up for about $300,000 under fmv.

CoqaVin
02-23-2014, 12:38 PM
not bad especially if you buy it

NO ChoP!
02-23-2014, 12:38 PM
Lets say we have 600k sales per year. A perfect world would allow for 10% profit, so 60k a year profit, hypothetically...

That's six years, not including interest just to pay off the initial investments.

And the restaurant world is not a perfect world, let me tell you....

Now, how many restaurants are around for 8 years or more.

Do it for the love, never for the money....

DeepCSweede
02-23-2014, 12:38 PM
The land alone could be redeveloped, so it has good value.

CoqaVin
02-23-2014, 12:40 PM
I am not doing it for the money whatsoever I could really care less about that as long as I can provide for me and my own I am alright with that

NO ChoP!
02-23-2014, 01:35 PM
To answer the question on rent.

It really depends on location. If you can find an up and coming spot, you might get a bargain. A hot area can cost double or triple. In the area we are in, rent for a typical 2000 to 3000 square foot space, which is small for a restaurant, can run $2500 to $5000 a month.

Also, no vendor will give credit upon opening. Your initial inventory will be COD.

Being handy can save you a fortune, as well.

We had a fair amount of equipment that we leased to own. We also spent a penny on new stuff....

turbochef422
02-23-2014, 02:32 PM
Lets say we have 600k sales per year. A perfect world would allow for 10% profit, so 60k a year profit, hypothetically...

That's six years, not including interest just to pay off the initial investments.

And the restaurant world is not a perfect world, let me tell you....

Now, how many restaurants are around for 8 years or more.

Do it for the love, never for the money....


those are the numbers that talk me out of it every year... I can just take my 100grand and be happy working for someone or...

WildBoar
02-23-2014, 05:30 PM
I have an aquaintence who designs and builds brewery equipment. If you are interested in speaking with him about ballpark costs for adding a brewery operation to the restaurant shoot me a PM and I will give you his contact info.

Salty dog
02-24-2014, 06:34 AM
Updated German brew pub sounds like a pretty good idea. Especially near the airport. (If my assumptions are correct)

jamaster14
02-25-2014, 04:22 PM
Honestly how much do you need to open your own restaurant? contemplating this seriously

the answer to this can range in the hundreds of thousands of dollars. you really need to get specific for an answer.

Where would you open it? would you rent the building or buy? how much square footage would you need? how many seats? is it prefab or are you buying/renting all the equipment from scratch? what cuisine will you be serving? how much of it can you be involved in (cooking/managing/accounting/advertising)

There is really no set amount... i'll agree with chegcomesback in that whatever you estimate is probably alot more as problems arise and there is a ton of unpredicability that comes along with it.

CoqaVin
02-25-2014, 04:35 PM
I hear ya jamster trying to save money wherever possible so it would be rented and hopefully the equipment/kitchen is in working condition already and just needs a few improvements

jamaster14
02-25-2014, 04:39 PM
I hear ya jamster trying to save money wherever possible so it would be rented and hopefully the equipment/kitchen is in working condition already and just needs a few improvements

there are arguments for many approaches, cutting corners early can really come back to bite you in the rear later on and once your operational its not very easy to just up and make changes or fixes. not that there is anything wrong with renting and using used equipment, just be smart about where you look for savings and explore all avenues before moving forward.... for instance in some areas renting might be significantly more expensive then what you'd get on a mortagage and that money is going in the owners pockets not towards a place you will eventually own

CoqaVin
02-25-2014, 04:41 PM
Believe me I am not trying to cut corners because I know that will bite you in the azz later on

Where do you get your experience from if you dont mind me asking?

jamaster14
02-25-2014, 04:45 PM
Believe me I am not trying to cut corners because I know that will bite you in the azz later on

Where do you get your experience from if you dont mind me asking?

My stepfather and his 11 siblings ran an italian family restaraunt when i was growing up... was working back there since i could reach the counter tops. worked all through high school before moving away to college. learned a ton just by being around the business for 20 years. Opened a bar and grill with 2 friends after school, worked as the chef/owner for 8 years... got to be too much for me, we were profitable but it was starting to wear on me and if i stayed longer i would have eventually started to hate cooking, so i switched careers and do IT work now and just cook at home and do some private instruction

CoqaVin
02-25-2014, 04:47 PM
wow good stuff

CoqaVin
02-25-2014, 05:32 PM
To tell you the truth though I am just getting tired of working for other people and them thinking I am a dumb ass or something really gets me frustrated more than anything

Nothing against Mexicans or anything like that but they are taking over the restaurant scene here and they think they know better than you and that's what really infuriates me they think they know all

Salty dog
02-26-2014, 06:07 AM
Several young chefs have opened restos in town lately. Basic formula: Find a hip location with low rent, scrape your cash and credit together and put the bare minimum in materials and design, invest a ton of sweat equity, get help from friends and family, get great reviews, get nominated for a James Beard award.

The fact that restaurants are getting rave reviews despite having plywood bar tops and tables kinda blows my mind. But that's the trend these days.

Chuckles
02-26-2014, 10:06 AM
A restaurant in my neck of the woods opened the way Salty describes. Then, after a couple years they did a kick starter campaign and made 300k in a week. Now they are about to re-open.

Salty dog
02-26-2014, 10:21 AM
Yep, one of the one's here is doing something similar. I think they want air conditioning. I'm not kidding.

CoqaVin
02-26-2014, 05:31 PM
if the foods good why not right?

Chuckles
02-26-2014, 06:49 PM
I think a lot of it has to do with how much risk you are willing to assume. What kind if position you would be leaving, how many people outside the business are depending on your income, how little you are able to live on etc...

Everybody has different thresholds and commitments. If you are comfortable taking the risk and putting in the hours, yeah, why not?

rogue108
02-27-2014, 12:10 AM
if the foods good why not right?

I hate to say it but I think there are restaurants that do well with crappy food (i.e. - Insert Chain Restaurant here) and restaurants with great food that never make it. Unfortunately it's more than just food these days. Seems like social media seems to keep some restaurants afloat longer than they should have and kill off others.

This is just an observation from a person who doesn't work in the industry.

JDA_NC
02-27-2014, 10:17 AM
I hate to say it but I think there are restaurants that do well with crappy food (i.e. - Insert Chain Restaurant here) and restaurants with great food that never make it. Unfortunately it's more than just food these days. Seems like social media seems to keep some restaurants afloat longer than they should have and kill off others.

This is just an observation from a person who doesn't work in the industry.

It's always been more than just food. That's something you HAVE to understand in this business. You can put out great, 'innovative' food consistently and it by no means guarantees you success. Then again really nothing does. Atmosphere, service, location, luck/buzz etc all play a much bigger role than what's going on the plate.

Any restaurant that squeezes in as many tables as it can & turns them quickly while putting out average/decent/mediocre (depending on your perspective) food is going to be much more successful as a business than a place that does one or two turns putting out high end, fine dining, multi-course meals. It's why you see so many established chefs moving towards more casual, tapas, small plates etc concepts.

Helping a chef open a restaurant and then seeing it fail is a good experience for every cook IMO. I know I'm grateful for it because it opened my eyes to many, many things.

CoqaVin
02-27-2014, 10:58 AM
good perspective JDA

ncedge
02-27-2014, 10:32 PM
Any restaurant that squeezes in as many tables as it can & turns them quickly while putting out average/decent/mediocre (depending on your perspective) food is going to be much more successful as a business than a place that does one or two turns putting out high end, fine dining, multi-course meals.

I certainly see your point. However, it also depends on your definition of "successful".

JDA_NC
02-27-2014, 11:23 PM
I certainly see your point. However, it also depends on your definition of "successful".

Of course. When I say successful as a business I mean they make a lot more $$$. And while awards, respect, pride etc are all nice, at the end of the day, a restaurant IS a business.

I'm not saying I'm a huge proponent of that style of restaurants either. I've worked at all different levels and I much prefer working in a chef owned restaurant that really puts pride and care into the food and experience. I'm currently working at a corporate type bistro where we cram people in and pump out mediocre food constantly - and it is soul crushing and a horrible work environment. But it makes a sh&tload of money (that I don't see, of course :biggrin:) and would be the definition of a successful restaurant to many, many people.

JDA_NC
02-27-2014, 11:46 PM
Here's the other thing - we have been nominated for national awards and constantly win 'Best in 'Cuisine'' locally plus generally get rave reviews across the board.

What you have to consider is that as cooks, we spend most of our waking hours working with & thinking about food. What makes or breaks dishes/service for us really does not matter to 90% of the folks who eat out. They want their food to arrive promptly & hot. That their fish dish sat in the pass a few extra minutes, dried out, and their veg started to wilt does not matter as much to them as bringing the whole dining room to a halt just to refire the entire table. Not to say we shouldn't care as cooks, but that's the harsh reality of it. The average Joe wants a good time, quality booze, and what they view as a decent deal above all else. That you're cooking the most technically perfect, passionate food does not really matter to them. Just how it is...

NO ChoP!
02-28-2014, 08:24 AM
The mistake of most is trying to be everything for everyone. This leads to mediocrity across the board. Do a few things that you're passionate about, people will recognize it, and you will become a destination for this product. Otherwise, you will have people requesting you make them steamed chicken with broccoli, and a side of ranch.

Wait...all they have is meatballs? Yah, but it's the best friggin meatball you'll ever eat!

That's what you want.

jamaster14
02-28-2014, 10:49 AM
The mistake of most is trying to be everything for everyone. This leads to mediocrity across the board. Do a few things that you're passionate about, people will recognize it, and you will become a destination for this product. Otherwise, you will have people requesting you make them steamed chicken with broccoli, and a side of ranch.

Wait...all they have is meatballs? Yah, but it's the best friggin meatball you'll ever eat!

That's what you want.

+10000

Erilyn75
03-04-2014, 12:39 AM
I'm just throwing this out there.....have you thought about a food truck? It's not a sit down restaurant of course but,

A) it's a way to get your name and cuisine out there
B) create a following
C) less investment
D) very trendy in cities, corporate towns, military bases and college scenes

When we travel to the coast, they are all over with huge lines. The taco truck here on base is only open 5 hours a day but busy the entire time. The BBQ truck is constantly busy as well. Some of the best food I've had has come off a truck. It may be something to think about.

CoqaVin
03-04-2014, 08:43 AM
I'm just throwing this out there.....have you thought about a food truck? It's not a sit down restaurant of course but,

A) it's a way to get your name and cuisine out there
B) create a following
C) less investment
D) very trendy in cities, corporate towns, military bases and college scenes

When we travel to the coast, they are all over with huge lines. The taco truck here on base is only open 5 hours a day but busy the entire time. The BBQ truck is constantly busy as well. Some of the best food I've had has come off a truck. It may be something to think about.

I would love to do a food truck but I live by the beach aka the "Shore" to you outsiders lol and even though they would make a killing during the summertime around the beaches they are not permitted and NYC is a lock already there are already so many food trucks out and about there it would be hard to get a following