Open a restaurant or no? THAT is the question

make sure you have a lot of expendable $$$ & a fallback plan... the restaurant business is tough and demanding once you get past idea of it being all fun.

US Small Business Administration is a good place to start for planning

http://www.sba.gov/

Are these friends who are attempting to talk you into this venture willing to put up some money?

Restaurants are almost a sure fire fail. Yes, some succeed, but 23% fail within the first year. In some areas of the country it's as high as 60%.

I'd say go work at one for a while to see if you like it. It's really not like most people think.

I would suggest the "Starting a business" course at KSU. Here is the link http://www.sbdc.uga.edu/newsite/ind...b1c2c101&page_name=view_classes&city=Kennesaw

While the course does not address opening a restaurant...it was very informative. I took the whole series last fall.

MariettaSmoker said:

Not willing to invest, but I had been thinking about it before this anyway. I just dont know what I need or how much it would cost me up front.

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I never owned my own business but I often speak and work with many small to large businesses and it's amazing to me to see the variances between poorly run and well run businesses and why some are barely hanging on and others flourish.

You need patience,the ability& desire to put in long hours (nights/weekends) a bona-fide plan, a great location, a solid customer base, good marketing skills, great food at fair prices, the ability to manage a team etc. and $$$$ and with a little luck.

as far as up front costs - that all depends on what you want the initial product to look like...

I strongly suggest talking to other business owners, not necessarily even in the restaurant business to get a better idea of what owning a business entails.

Uncle Bud's suggested class looks worthwhile to pursue..

This is all good advice. The reason restaurants fail so often isn't because the owner doesn't know how to cook. It's because he can't run a restaurant and often he can't run a business.

What do you know about POS systems? Serve-Safe? FOH? Holding equipment and procedures? Hiring and maintaining employees? Fixing toilets? Long term leases? Workman's Comp? Fixing the roof? Fixing the refrigerator?

In most cases the first thing you should do is hire a chef so you can be available to run the business and that's a surprise to most.

I was thinking the same thing a year or so ago, then I talked to an owner and did some observation, it is a lot of work (nights,mornings,weekends), I mean a lot of work. I think the good Doctor hits the nail on the head above...

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We've resisted the urge. We've run the numbers a bunch. Our catering business thrives, while I keep my real job with all the benefits. Biggest reason we don't? Im not willing to work 80 hours a week at it, risk several hundred thousand dollars, or try and make a $12000 a MONTH nut before direct food costs.

We just bought our 3rd pit / trailer and 2nd tow / catering vehicle. We paid cash for it, and choose to grow slowly and commensutrately with our efforts.

owning a business is like having a second wife that you spend 20-24 hours a day with. when people used to ask me how many kids I had i would respond 52 (2 who were actually mine)

Check out BBQ central radio podcast archives. There are two I would suggest listening to:

Oct 27, 2009 - Moe's Original BBQ
Mike Fernandez from Moe's Original BBQ came on to talk about the benefits of franchising a bbq restaurant vs. buying your own facility and doing it from scratch. Mike talked about how he got in to bbq, how Moe's came to be and how you can find out how to get your own Moe's franchise. Visit http://www.moesoriginalbbq.com for all the information.

March 2, 2010 - Steve Forman
During the 2nd segment I will be joined by owner of Cow N Sow 2 WOW BBQ restaurant and catering company Steve Forman. If you recall, all the way back in October of last year, we talked to Mike Fernandez of Moe's BBQ about bbq franchises. Tonight we look at the other side of the coin...going it alone! Steve has competed in bbq competitions in the past, and when his career told him to go pound salt, he turned his passion in to his day job! This should be a very insightful interview.

There are a number of the same comments below but I would reiterate a few:

• Most start-up businesses fail within the first 18 months. The restaurant business is one of the toughest business and almost sure to fail - its like getting married;
• If you have never run a business before, then don’t do it;
• Go work for a BBQ business for at least a year before you do this venture;
• Don’t get into business with your friends or family;
• Be prepared to spend 3x what you budgeted for;
• Be prepared to spend 80+ hours a week working.

Save yourself the aggravation and start off with some catering on the side. This way you can control your over-head, get a feel for profitability, and you are not locked into a single business immediately. Wait until you have to start to manage employees. You go from Chef to Psychiatrist.

I have some friends who come from a restaurant background and have opened 3 "wing joints" in the past 3 years. All are booming but they are looking to sell because of the hours and they knew what they were getting into. Looks like they have found a buyer. All of the above posts offer great advice. Would the area you live in support a carry-out only type business?

The only advise I can offer is this. Start small and grow from there. A large set down place is more than likely going to be big overhead. Under capitalization is the biggest reason for failure. I have been self employed for 20 years, have run crews from 2 or 3 to 25 or 30, it is like running a daycare.

My plan over the next year or two is to gather the equipment I need and find a location for a lunch time only grab and go. If that works out then maybe I will go for a place with chairs. The hours dont bother me but I am going in realizing I am looking at probable 12 hr days,(remember, lunch only) that is fine with me as I am used to that
anyway. I will say I have zero restaurant experience but I do have a contact that is willing to help out and help me succeed.

Like many have said. Failure is a very real possibility but with that in mind, show me a successful person that has never failed and I will show you a lucky SOB.

Do your homework, have a plan, have an "ideal" budget and a back up budget and have an escape plan in place. I have eaten at enough lousy BBQ joints to know if you turn out a good product and offer real customer service you are ahead of the game.

My advice to you is to give it up. If you're not willing or able to pile, and yes, I said pile your own money into it, they how the heck can you ask others to put in their money? I'm not trying to be mean here, just realistic. As a former business owner, when it's your own dime on the line, you are much more motivated to go the extra mile.

And one more thing, restaurant work is some of the longest hours, most stressful and hardest work you can find. Nothing like cooking in your backyard for friends.

Hope this helps.

You're getting good advice from folks above.

My cooking partner owns a BBQ restaurant. And yes, as mentioned it consumes 98% of his life. If he is not there, he is on the phone with the staff. Cooking competitions is the only real rest he gets, if you can believe that. Oh, and did I mention he had a heart attack? Cardiac Doc says: "Do you have a high stress job?" YA THINK???

You're just down the road, so if you think you want a restaurant, come talk to us. Or to Jeff at Smokin J's. If you still want to go ahead with it, pay someone experienced like Johnny to help you set it up. It will cost you, but less than the mistakes you'll make learning by trial and error.

I have been doing catering and working Farmers markets for almost 3 years now. I have a customer base and experience (ok my wife has experience) running the business and only now are we even considering getting a spot. I love what I do but it is a lot more work and money than you could imagine. Start slow. Sell some dinners to the people at your job. Everyone like your food when it's free. Get out there and sell some food first. And remember business isn't cooking, business is selling.

Some good advice in the thread. Here is some RESTAURANT specific information.
I worked for 5 years in a restaurant, and sold restaurant equipment for a mega vendor for another 2.

1) 50% of restaurants close their doors and fail for good within the first year
2) 90% of all restaurants close and fail by the 5th year
3) It is a cash business, some employees will scam and steal because of such
4) There are many many many expenses that people do not see up front
5) Your number one job for your financial success is NOT your cooking or food.
It will be your ability to promote, do public relations, and brand your business in the local eye.
Yes food is important, but you must be a marketer/entrepreneur first and a cook second.
6) Do not make any decision by emotion. A balance sheet and facts should guide you 100% of the time.
7) Most restaurants are open 7 days a week and have employees in them for a minimal of 12 hours.
That is a minimal of 84 hours of operation that either you or someone you EXPLICITLY trust has to be there.
This schedule is hellish on personal life and family.
Most of your sales comes from weekends and nights, which the owner MUST be there for most of the time to have successes.
Can your personal life handle this schedule?
8 ) If you are not open for business 7 days a week with looong opened hours, people will not remember when you are open or closed.
They will choose to go elsewhere even when you are open as opposed to taking a chance "IF" you are open.
9) Start small and remain small for a good while. Add changes to your business slowly.
Sales WILL cycle and may be seasonal. It will take you at least a few years to be able to predict how this works for your restaurant specifically.
10) If you never worked extensively in a restaurant, I advise strongly to work in one that has had success.

NOW A BAR-B-Q specific thought. Your fires have to be started hours before you are ready to serve food.
This would not be a chain operation where most food is cooked in 10 minutes from order.
To have fresh brisket and pulled pork ready for lunch, what time would you have to start the fire and get meat on by?
Then if you are serving dinner, and close by 9 pm... how long from the first lit match in the morning, to the last mop of the floor be? I see 18 hour plus days there.

For more financial advice, speak to a CPA that has handled restaurant accounts. He will set you up with proper expectations.

Not trying to scare or discourage you, but as I mentioned above... FACTS and a BALANCE SHEET need to be what guides your decisions, not feelings and emotions,
"pat on the backs" or "atta boys" from friends and families.

With all the above stated, I am a firm believer in the sole proprietor ownership model. I would gladly support and pray for your business, if this is the road you decide to go.