One of my long-term dreams is to eventually open a restaurant. Or two. Or twelve. I have lots of different ideas for restaurants, some of them grand and bold, some of them simple and modest. I won’t have a chance to open one any time soon, but I would like to start building a base of knowledge for the day I am actually able to seriously consider taking the leap.
So tell me all about opening and running a restaurant, especially if you yourself have done it (or are doing it right now).
Did you have any experience beforehand?
How did you finance your restaurant?
Do you recommend any books or resources?
Did you make decent money, or was the whole thing a financial nightmare?
Do you have any neat stories from your experience? Any horror stories?
How long did you plan before opening your place?
And so on…
Thanks, I’ll need the luck if I ever decide to go through with it.
As for the X% of restaurants fail statistic, I’ve seen all sorts of numbers. It isn’t really easy to tell which are correct and which are just scare tactics. Sometimes I think McDonald’s (et al.) puts out those numbers to keep away the competition And as for the money, well, I’m not interested in starting a restaurant for the money. I figure if I’m going to work my butt off for little money, I may as well be doing something I enjoy. Right now I’m neither rich nor loving my job.
I used to want my own restaurant. I spent 20 years as a chef and figured I’d always have my own place someday. Eventually I got burned out on restaurant life. Have you ever worked in a restaurant? If you have and you love it, great. If you haven’t I STRONGLY suggest you try working in one first. Culinary schools are full of people who love to cook but have never worked in a restaurant. They spend $30 K and when they finally get into a restaurant they can’t handle it.
Fox Paws - I repeat what Brufordesque said. Try working in one first, if you haven’t already.
I have found that many people have a mistaken idea about what it’s like to work in/run a restaurant. It’s long, long hours and hard, hard work. Not saying you can’t do it, but I’d really recommend working in one first. It might give you a new perspective.
A good friend of mine was a manager of a restaurant chain after getting an MBA from Yale. His summed up his opinion on this subject as follows:
Most restaurants fail because people think they are qualified to run a restaurant just because they 1. cook very well or 2. have gone to a lot of restaurants.
That may be blunt, but there is some real truth in that statement.
The things that I typically saw from a successful resteraunt when I worked in that industry are as follows:
an owner or GM with a solid background in business
an exec chef who has an a solid understanding of business, not just the art.
A distinct identity
great location
a helluva a lotta luck.
I think many of the “mom and pop” restaurants fail because people don’t seem to want to treat a restaurant (or a corner bar for the same reasons) as a business.
I totally agree with Brufordesque. I worked in the industry for only 6 years and I can tell you that I had enough of rude customers, late late hours, swollen feet, working weekends, grime and unreliable employees to last a long time. I was only a waiter and bartender so take my experience for what it is worth, but, man, that is a tough, tough business.
However, if you know that this is your dream, do it. Learn everything you can before hand and jump in. Passion can take you places one could only dream of as long as you mix it with persistence, patience, and preparation.
Read Kitchen Confidential. It’s an entertaining read and has a section on nice folks who want to start restaurants. He’s not exactly warning people off, but points out a lot of the pitfalls that are likely to lead to some very real consequences like personal bankrupcy. Going in unprepared is a great way to lose everything.
It’s an amazing book; I second the recommendation. Everyone who EATS at restaurants should read it, to say nothing of those with an interest in the industry. The author is Anthony Bourdain, by the way.
I was going to also recommend this book. If nothing else it’s pretty funny (or disturbing) in some places. Other than that I don’t know jack about running a restuarant.
Good timing on this thread, Fox Paws - because I am working with a friend right now on a business plan to open a restaurant. I’d reiterate what you’ve already been told here - it’s not enough to be a good cook. My partner is an outstanding cook, but he’s only worked in food service before in terms of catering. I have 15 years experience working in the business - started as a waitress/hostess, worked as a bartender, shift manager (head waitress in practice - the title was useless), trainer and eventually assistant manager - but I have no experience with finances. We’re having our first official planning meeting on this TONIGHT, but going through the notes I’ve got written up already, we’re going to need to look into a business loan, a location, licensing, suppliers, staff, equipment and furnishings, menu planning, insurance, AND we’re going to have to find a partner whose expertise is strictly in BUSINESS.
We’re going to have to spell out our business plan for both the short-term and the long-term before we even walk into the bank, and if we don’t have all our ducks in a row, we’re doomed from the get-go.
And while it is true that about 60% of restaurants fail in the first year, that stat doesn’t tell you how many scrape through only to fail in the second year.
A bunch of our friends have cheerfully said, “Oh, I’d love to be a waiter in your restaurant” or “I can bus tables” or “Can I be the hostess? I’ll work for free!” Doesn’t work that way, I’m afraid.
Sorry, it was a poor attempt at levity. The best advice you’ve been given is to work in a restaurant and see if you like it or not. I would also suggest that you worK as many different positions as possible. I started as a dishwasher and eventually worked as a cook, sous chef, waiter, bartender, manager, etc. The restaurant business can be stressful and it helps to see the other guy’s point of view.
A few words of advice…and I speak as one who has had intimate experience (my grandfather owned and operated his restaurant for 40+ years). First: KNOW what market you intend to serve…and do not deviate from what that market wants. You can be very successful running a restaurant, but only if you know what your market wants (and will pay for). Second: choose your hours of operation carefully-it makes no sense to open for lunch if you lose money doing t. Third: watch EVERY penny, and make sure you fire ANYONE who is stealing from you. I f you do your homewrk and watch your expenses, you can have a great business. If you don’t, there is no faster way to lose your shirt.
Finally: don’t make the mistake of letting the business kill you…many times, opening for extended hours makesno sense.
PS: If you are attempting to serve a lower end market, don’t even think you can compete with a chain. A place like OUTBAK of CHILIS can eat you alive-here is no way you can compete with these guys.
I went to work at 7 this morning. I just got home at 10:53pm. I do this 6 days a week. The other day I only work 8 hours. You sure you want to own a restaurant?
My brother was the manager of a new restaurant, and it was a success but he had a backer with big pocketbooks.
Restaurants are capital intensive.
Suppliers, know that restaurants are a risk, will insist on cash on delivery.
In the summer you may be able to hire college kids, but otherwise you may be forced to hire less than optimal people. (not that college kids are always optimal)
And as for the money, well, I’m not interested in starting a restaurant for the money. I figure if I’m going to work my butt off for little money, I may as well be doing something I enjoy. Right now I’m neither rich nor loving my job.