Owning a Restaurant

[mickeysgal]

Does anyone here on the DIS own and operate a restaurant? What do you like about it/dislike about it? Would your choose owning a restaurant again if you had a chance to do it over? I've been asked to help with the general overseeing/operating of a new restaurant being opened and I'm on the fence whether this would be the right move for me. I understand the mega hours involved, but other than that, this is an occupation that I know little about, yet some of my skills that I currently have (managing people, customer service, financial background, some marketing) may be applicable.

 

[HelenePA]

two words for you.. "Kitchen Nightmares"

 

[mickeysgal]

two words for you.. "kitchen nightmares"

!!!! Lol

 

[The Mystery Machine]

Does anyone here on the DIS own and operate a restaurant? What do you like about it/dislike about it? Would your choose owning a restaurant again if you had a chance to do it over? I've been asked to help with the general overseeing/operating of a new restaurant being opened and I'm on the fence whether this would be the right move for me. I understand the mega hours involved, but other than that, this is an occupation that I know little about, yet some of my skills that I currently have (managing people, customer service, financial background, some marketing) may be applicable.

Never owned a restaurant, but worked at some.

Do you think it can work? We are having restaurants open and close constantly in the area where I live. It is nuts.

For example, 2 weeks ago a "fried pie" restaurant opened up in our town. I was pretty excited watching it under construction.

I went there the minute I saw it opened of course. I am always up for something new.

Went in, asked the gal want was a "fried pie"? She says, I don't know. (OK, not off to a good start.)

Then I proceed to watch them make the "pies". They had all the fillings sitting out, not refrigerated, so strike 2.

I threw caution to the wind and order a "chocolate pie" and 2 "breakfast pies" consisting of bacon, egg, and cheese. It was morning.

Basically it is a "hot pocket". Now I do not like "hot pockets", however again, perhaps the filling was delicious, right? WRONG.

Got home and the chocolate was OK. The breakfast filling was salty cheesy goo. No egg recognition at all.

That is all they have. Everything is in a "pie", again read "hot pocket".

Even if I LOVED it, I could only eat there once every few months due to the how they are preparing the food.

So, I give it 6 months at best. They will never make a dime.

So who is cooking and have you eaten their food? Would you be quitting a job in order to take this one? I wouldn't do that since most new restaurants fail, esp. in today's market.

We are having a new market with FOOD TRUCKS here in St. Louis and they have been successful.

 

[manning]

Does anyone here on the DIS own and operate a restaurant? What do you like about it/dislike about it? Would your choose owning a restaurant again if you had a chance to do it over? I've been asked to help with the general overseeing/operating of a new restaurant being opened and I'm on the fence whether this would be the right move for me. I understand the mega hours involved, but other than that, this is an occupation that I know little about, yet some of my skills that I currently have (managing people, customer service, financial background, some marketing) may be applicable.

Take a pass. The key is you know littlle about it. Also the failure rate is way up there. I've heard in the 90% range.

People wonder why the Greeks are good at it. I knew one and he said we start out at the bottom and work our way up, If we have a relative who wants to work in that field or take over we send them off to another restaurant to learn. They are not pampered. At least that is what he said.

 

[golfgal]

Some friends of ours own a restaurant (did, they sold it a couple years ago). Biggest complaint-the hours. He was there pretty much 12+ hours/day, 6 days/week. He pretty much missed his kids growing up. After that it is the help, people not showing up for shifts and having to scramble last minute to fill them, no longevity of staff, etc. (wait staff mostly).

 

[mickeysgal]

It's a franchise with a very strong history that is decades long. Interviews with other franchise (new and old owners alike) throughout the nation have been surprisingly positive and consistent in regards to on-going support that they receive, accuracy as to financial projections, the training provided to get you up and running, the things to ask about, the downsides. So far there have been only a few franchises that have closed - one due to a personal matter and the others, I can't remember to tell you the truth. Overall a very surprisinly small percentage overall. This too was confirmed with other franchise owners. To answer a prior poster, yes, I've eaten the products and it's a winner in my eyes - I wouldn't touch it with a 10ft pole otherwise. Just not sure I want to take something like this on in this weak economy. Leaving behind what I know to go to a new unknown is a bit rattling, yet I'm trying not to be so jaded that I fail to see a solid growth opportunity for myself. I tend to be naturally cautious so I'm still sitting firmly on the fence.

 

[M5ward]

BIG risk, successful franchise or not. In this economy, one of the first things to take a hit is eating out. I was born and raised in the bar/ restaurant business; with my brothers I am a partner in the business my dad started 48 years ago. In the past couple of years we have seen our bar receipts and food receipts alternate dropping off. People either eat or have drinks but not usually both and certainly not as much as in the past.
This is a time -consuming, complicated business. If you have no experience (and I mean extensive operational and managerial experience) don't do it.
My advice to anyone who ever says they want to go into this type of business:
DON'T DO IT!!

 

[mickeysgal]

Thank you to all. You are confirming what my gut was telling me.

 

[furb & dez]

Most restaurants fail.

 

[pittsburghmarc]

Done it my whole life. PM me if you have questions.

 

[disneyofcourse]

Around here they are lasting about two months until they shut down. It's downright crazy. I have been to three(new and locally owned) in the last two months and they have closed down already.

 

[minkydog]

Take a pass. The key is you know littlle about it. Also the failure rate is way up there. I've heard in the 90% range.

People wonder why the Greeks are good at it. I knew one and he said we start out at the bottom and work our way up, If we have a relative who wants to work in that field or take over we send them off to another restaurant to learn. They are not pampered. At least that is what he said.

Exactly. My DH is second generation Greek-American. His Grandfather came here at age 17 with nothing. He found a job working in a restaurant. Couldn't afford an apt so he slept on the floor in the kitchen. Eventually he saved enough money he bought the restaurant. Got married & had kids. Kids all worked in the restaurant. Granpa helped FIL get his first restaurant. DH grew up working in the restaurant with his mom, sister, dad, and an uncle. DH has NO DESIRE to work in a restaurant again. Here's his take on it:

*There are no days off for management & the hours suck
*As an owner/manager you can easily spend 20 hours a day at the restuarant
*High risk of business failure
*Very high cost of healthcare insurance
*Negative impact on family life--business always comes first

DHs Grandpa worked every day except Sunday for 50 years. Never took a sick day or a vacation. At 67, he decided to retire. Five months later he was dead of kidney disease. In all those years of working, he had neglected his health and his family and left them with nothing to show for it. Very sad. And the very reason that my DH went into the credit industry, instead of food services.

I think you have to really be married to the idea if you're going to do this.

 

[prncess674]

It sounds like you won't be the owner, but will be working for the owner. Forgive me if I am wrong. If you will be working for the owner make sure you have vetted the owner thoroughly to understand if they have adequate capital and have a solid business plan. It sounds like your owner may be naive to the restaurant biz. If they haven't specifically worked in the restaurant biz, they need to have a solid biz advisor doing the hiring for all management positions. Are they opening a new branch of a franchise? Do you believe in the product they sell? Do you relate to the typical target customer?

 

[eliza61]

Does anyone here on the DIS own and operate a restaurant? What do you like about it/dislike about it? Would your choose owning a restaurant again if you had a chance to do it over? I've been asked to help with the general overseeing/operating of a new restaurant being opened and I'm on the fence whether this would be the right move for me. I understand the mega hours involved, but other than that, this is an occupation that I know little about, yet some of my skills that I currently have (managing people, customer service, financial background, some marketing) may be applicable.

So my grandfather, and my 2 uncles (my dad wanted no part of it. LOL) ran a successful soul food restaurant in NYC for about 30 years of my life.

1) first you must really want to be a small business owner. This is not a job for the faint hearted. Let's just start with getting proper permits to open a food joint. Do you want to serve alcohol? look up the regulations about liquor licenses.

2) Can you cook? employees. are you going to bring in a chef? are you going to buy into a chain or your own independant operation. are you going to partner with someone? You say you have customer service background. Let me tell you as a person who is bakes and caters. There are days when I wonder if my walk in freezer is big enough to house a body or two. Nothing questions your dedication like a bridezilla screaming over a 7 tiered wedding cake she wants you to bake for $9.99. John q. pubic is no joke. Do you have patience when some creep tries to hit on you, you reject you and he calls the health inspector on you? (this happen to me when I was a server in my grandpops restaurant)

3) most eateries go under within 5 years. do you have enough capital to wait out the tough times.

 

[kirstenb1]

I managed restaurants when I was in college twenty some years ago. Are you willing to be the hostess, server, dishwasher, cook, take out the trash, meet the health inspector, meet the ABC inspector? Continually inventory supplies? Not just food and liquor, but things like dishpowder, trash bags, food tickets, etc? Yes, I know you have employees to do all these things, but they call in sick, find other jobs, etc.

Also, vacations are SO hard to plan. You need an amazingly good focused person to leave in charge.

Sometimes I think I want to go back to managing my own business. But I'm older, and dependent on vacationing when the kids are out of school...

 

[pkondz]

I'm thinking that due to the commitment involved, if you're sitting on the fence now, maybe this is not for you. My kids keep asking me to open a restaurant. No, thanks. I know how hard you work in that industry. Been there, done that.

 

[Kimberly]

My father owned a restaurant for years in northern NJ. It's true that the failure rates are way up there. That's mostly in part due to most people being unprepared on the amount of work that it takes to put into owning a bar/restaurant. Expect to micromanage a lot, since variable costs will kill you if even the slightest bit goes wrong.

There is a huge initial investment too, and you may not make money for months. If you are capable of handling this financially, then why not go for it?

 

[mickeysgal]

All very good points - none of which I hadn't already considered. I'm on the fence because it would be foolish to jump into anything or conversely dismiss it automatically without vetting both sides - the pros and cons - then taking the pros/cons and applying them to this unique situation. I'm cautious and neutral at this point and will never make a knee jerk decision until I've thoroughly analyzed both sides. I have to apply those pros/cons to this particular situation and the persons involved at this point to see how well/bad it would function. With the right mix of management in command, the proper skill sets, it could work. In fact, it has proven to work with a surprisingly low turnover rate/closing rate of other franchises. The wrong mix of talent, the wrong location, etc. and it is doomed. Keep the comments coming I really do appreciate them!

 

[manning]

All very good points - none of which I hadn't already considered. I'm on the fence because it would be foolish to jump into anything or conversely dismiss it automatically without vetting both sides - the pros and cons - then taking the pros/cons and applying them to this unique situation. I'm cautious and neutral at this point and will never make a knee jerk decision until I've thoroughly analyzed both sides. I have to apply those pros/cons to this particular situation and the persons involved at this point to see how well/bad it would function. With the right mix of management in command, the proper skill sets, it could work. In fact, it has proven to work with a surprisingly low turnover rate/closing rate of other franchises. The wrong mix of talent, the wrong location, etc. and it is doomed. Keep the comments coming I really do appreciate them!

Reading this I am betting right now you are going to do it. Right or wrong think hard on it before you do. I hope there isn't any money being borrowed. Cash flow is very important.