Does any Freeper own a resturant?

3/8/2009 | Battle Axe

[PGR88]

I have good friends who own restaurants. It’s an extension of their personalities, so they like the work and wouldn’t think of doing anything else. I have heard every crazy story possible, from barmaids and bartenders hooking up, stealing the weekend sales and running off to Mexico, to city inspectors wanting kick-backs for every imagined infraction. Be prepared to spend a lot of time there, esp. at the beginning to really know how it works.

Also if you have a good chef and maitre’d, pay them much more then they are worth to keep them, because a well-run place will give you more free time, and customers don’t want to be surprised by changes, or they won’t return.

May not apply to the corner pizza place, but my two cents regardless.

Good luck! Entrepreneurs are the pillar of our economy — If only the Gov’t would realize it.

[FastCoyote]

[It seems to have a good cash flow, or at least it did in 2007 and 2008.]

More Tips:

All small business books are cooked. (All!)
You want current bank statements, not year old.
You want a certified audit, or at least ask for one and see if their sphinter puckers.

[acoulterfan]

We have food stands here in San Diego that are fabulous. They are illegal but the BEST Churros!

This guy is a few blocks from me and works in front of a beat up tire store.

http://www.yelp.com/biz/churros-el-tigre-san-diego

[FastCoyote]

[This guy is a few blocks from me and works in front of a beat up tire store.]

As long as he doesn’t work in front of a pet store.

[mad_as_he$$]

do you know how to make a small fortune?

Start with a large one and open a restaurant.

[beebuster2000]

watch gordon ramsay kitchen nightmares on cable. that will cure you

[Who is John Galt?]

My grandmother owned a restaurant, as did her sister & brother (across town, competing facilities ;>). We have friends who own a restaurant in West Texas, and other friends who own a bagel shop in Denver. A few observations:

1) It's hard work. Our friends at the bagel shop are up every day at 3:00 AM, and going to bed by 8:00. Opposite end of the spectrum for our friends in Texas (up past midnight). Very few days off.

2) It's hard to get good help (which is one reason you will be there, every day). When my family was involved two generations back, it was a lot different - we had folks who worked for us for decades, and were treated like members of the family. Doubt that happens much anymore. The help is often almost completely unavailable (in some areas), or lazy, or incompetent, or completely unpredictable. Welcome to the 'Obamao Generation.'

3) Consider the potential problems/costs associated with liability issues, government regs, etc. Enough said.

4) Remember that the person selling the restaurant has a reason to do so. It may not be the reason they are telling you (that's what happened to our friends in Denver).

My family was successful in the restaurant business, but that was two decades back. Our friends who are currently involved look exhausted most of the time, have a hard time finding/keeping good help, and have costs that are higher than anticipated, among other problems. A friend in California recently mentioned that he was thinking about buying a restaurant. We advised him not to.

Bottom line, this advice is worth everything you paid for it. Good luck, whatever you do!

[FReepaholic]

My brother once owned a bar/restaurant. I asked him one time what was his biggest problem.

He told me that his employees were his biggest headache. He said he spent more time finding good ones, trying to get them to show up for work, trying to keep them from stealing him blind, refereeing their disputes etc.

[nufsed]

And the area is?

[Lib-Lickers 2]

as an owner of 4 restaurants for 17 years you hit it on the head.. oh and the 24/7 mentioned a few posts back

everybody gets paid BEFORE the owner including the brain dead employees

[Harmless Teddy Bear]

He told me that his employees were his biggest headache. He said he spent more time finding good ones, trying to get them to show up for work, trying to keep them from stealing him blind, refereeing their disputes etc.

That is the biggest headache of any employer. When it is not federal state and local regulations. Sometimes all of them at the same time.

[scottteng]

My mom has been the local pizza places landlady for 20 years. They don’t make much on food what this one makes money on is beer as they are open later than the c stores. Make sure you can get the applicable license.

[yazoo]

Unless you’ve owned one before I recommend reading Anthony Bourdain’s Kitchen Confidential in which he spends a lot of time talking about how many restaurants fail due to a lack of understanding of the business, and not a lack of good cooking.

[JRandomFreeper]

The negative side..... 14-18 hour days. Controlling food costs. Thieving employees. Slim margins. Pizza is energy intensive. Look at the utility bills for the last two years. From the utility company, not the numbers the seller is showing you.

If you have never spent time in a commercial kitchen, forget buying a restaurant. Earn your stripes on OPM first.

There are more little things that will kill you than I can detail here.

If I had $350K sitting around, given my experience in commercial kitchens, I would look at investing in a chicken farm or brothel, or plumbing company. Anything but a restaurant. And I love the business.

/johnny