Does anyone here own/manage a restaurant of food vendor of any type?

[sgreger1]

I am looking for some insight into the world of owning a restaurant from anyone who may be knowledgeable. I don't think i've seen it mentioned here before, but if anyone runs a restaurant, fast food place etc, PM me as I have a few questions if you are willing to answer. Thank You!

[Premium Parrots]

I recently read somewhere that about 50% of start up resturants fail. Does that help?

your 20K won't go far in starting a resturant unless you buy a hotdog cart. Try and find something you can do on the side...at home.

[EricHill78]

Hit up Chad... He's a domino's pimp.

[sgreger1]

I recently read somewhere that about 50% of start up resturants fail. Does that help?

your 20K won't go far in starting a resturant unless you buy a hotdog cart. Try and find something you can do on the side...at home.

Actually 95% fail within 5 years


My mother in-law owns a successfull restaurant and is hinting at opening up a second branch and letting us run it. While I would likely put my $20k in, she would be the one to shoulder all of the initial startup costs. Her sister also runs a successfull food truck route in San Francisco and they are selling their business so was also curious about how the food truck business works. I am just trying to learn as much as possible before approaching her about it.

I am mainly concerned with finding out the true cost of hiring an employee after things like workers comp are factored in, how much it would cost to build out an existing retail space that was previously owned by a restaurant, and some of the ins-n-outs of leasing commercial retail space as I hear some places are even offering the few months free in order to attract leasee's.

[Mykislt]

Hit up Chad... He's a domino's pimp.

Really? didn't know that..

[Premium Parrots]

Lots of BS to deal with when you have a resturant or even a food truck. Do you really want to work for someone else...or family. I have a friend that has a small hotdog trailer parked at a gas station. He makes a killing running the whole thing by himself maybe 12 hours a day. But hes only open about 6 months out of the year. The remainder of the year hes off fishing and fooling around. You can figure that if it was open all year his profit would double. That computes to being enough for you to hire someone to work all year for you and you could make as much as you employee. Thats without all the regular resturant headaches. Just think about the rent for a resturant, maybe 3 to 5k a month. Rent a small space in a big gas station for 3 or 4 hundred a month. Maybe less if the station owner like hotdogs. Just a thought.

It seems like the very low end and the very high end resturants do well. So I would imagine that its mostly the mid resturants that go out of business in 5 years. Check into it. Find a resturant similar to what you would want and talk to them to learn more. I would never ever have a partner in business......especially family. If its just the wife then that would be fine, but inlaws...hell no.

[WickedKitchen]

I'm sure that you could consult the SBA in your area. Most of them have groups of people that focus on assistance that you might be looking for. Usually it's free but due to that timing might not be instant.

I'm sure in CA there's a requirement of sorts to carry insurance too...consult a lawyer for sure.

You certainly have the brains to do it so if you're committed it'll work out fine. I worked 15 years in the business but I've been out of it for too long to help in that way...just wait until you get into the intricacies of the people...the vendors, the customers, and the employees...ahh the employees. I think the restaurant business, and possibly all of the hospitality industry, is more of a lifestyle than a job. I loved my time in the business and had loads of fun, made lots of money, friends...debauchery...heh. Yeah, it's a lifestyle...but I digress...

[Monkey]

Actually 95% fail within 5 years


My mother in-law owns a successfull restaurant and is hinting at opening up a second branch and letting us run it. While I would likely put my $20k in, she would be the one to shoulder all of the initial startup costs. Her sister also runs a successfull food truck route in San Francisco and they are selling their business so was also curious about how the food truck business works. I am just trying to learn as much as possible before approaching her about it.

I am mainly concerned with finding out the true cost of hiring an employee after things like workers comp are factored in, how much it would cost to build out an existing retail space that was previously owned by a restaurant, and some of the ins-n-outs of leasing commercial retail space as I hear some places are even offering the few months free in order to attract leasee's.

Pm sent but I will add here that food trucks are about two things. Location and a place to make the food. Unless your home kitchen is up to code you will need a place to do batch prep and storage for food orders.

[texastorm]

I was in the restaurant business for 15 years, I know it inside and out.

Here is my advice...

Do not open a restaurant unless you want to sweat blood for 90 hours a week while eating top ramen and wondering how you are going to keep the lights on.

Of course if you have the financial backing then go for it. The mistake most people who have no idea make is they start with too little capital You would likely need a years worth of headstart on employees salaries, food, and other expenses like utilities and rent. I have had several friends ignore that advice and they were out within 6 months. Your not going to open the doors to 5000 dollar nights unless you are an advertising wizard.

As for your employee payout wonderings, you can just about assume that whatever you pay your employees per hour, they will cost you almost that again in backend expenses, fica, workers comp insurance, unemployment, etc.

If you have any specific questions feel free to pm me. I have been involved in nearly every kind of food service except a food truck type.

[wa3zrm]

I was in the restaurant business for 15 years, I know it inside and out.

Here is my advice...

Do not open a restaurant unless you want to sweat blood for 90 hours a week while eating top ramen and wondering how you are going to keep the lights on.

Of course if you have the financial backing then go for it. The mistake most people who have no idea make is they start with too little capital You would likely need a years worth of headstart on employees salaries, food, and other expenses like utilities and rent. I have had several friends ignore that advice and they were out within 6 months. Your not going to open the doors to 5000 dollar nights unless you are an advertising wizard.

As for your employee payout wonderings, you can just about assume that whatever you pay your employees per hour, they will cost you almost that again in backend expenses, fica, workers comp insurance, unemployment, etc.

If you have any specific questions feel free to pm me. I have been involved in nearly every kind of food service except a food truck type.

I agree with Texastorm. I am a former owner of three Subway's; and, he paints a very realistic picture of what you can expect. Owning a franchise helps; however, don't think you can kick back and just manage... if you want to make $$$ you have to be working in your stores every day. Unless you can afford to finance 20+ stores, you are going to have to be a hands on manager.

Biggest obstetrical IMO, having to rely on 17-18 year old kids to keep your business going. When a kid does not show up to work a close shift from 7:00 PM 2:00 AM... guess who will be working that shift?

If you have any specific questions feel free to pm me too.

[chadizzy1]

I've been with Domino's for over a decade, been in command of every restaurant in this state at some point in time - some high volume, some low volume. I've done it all - so I know the ins and outs. If you wanna talk feel free to hit me up.

My best advice, don't do it to be a get rich quick thing. The best route is to be an owner/operator, you'll keep your costs down and profits high.

[Roo]

I just have to say... didn't want to start a thread about it... Wa3zrm... nice to see you both posting again and contributing more than copy-and-paste new articles. lol that was supposed to be a compliment... hope you take it that way. Anyway, I've noticed it, I know I gave you hard time for it quite a while back, good to hear your voice on the forum.

[Ainkor]

Another restaurant victim (err worker :P) here. I've done it all from pizza places, fast food and opened my own. I currently oversee a region for a smaller franchisee and am our director of training. Feel free to shoot me any questions too!

[RobsanX]

Best idea I've heard? Move to Vegas and open a hotdog cart where the line forms to get wedding licenses...

[sgreger1]

Lots of BS to deal with when you have a resturant or even a food truck. Do you really want to work for someone else...or family. I have a friend that has a small hotdog trailer parked at a gas station. He makes a killing running the whole thing by himself maybe 12 hours a day. But hes only open about 6 months out of the year. The remainder of the year hes off fishing and fooling around. You can figure that if it was open all year his profit would double. That computes to being enough for you to hire someone to work all year for you and you could make as much as you employee. Thats without all the regular resturant headaches. Just think about the rent for a resturant, maybe 3 to 5k a month. Rent a small space in a big gas station for 3 or 4 hundred a month. Maybe less if the station owner like hotdogs. Just a thought.

It seems like the very low end and the very high end resturants do well. So I would imagine that its mostly the mid resturants that go out of business in 5 years. Check into it. Find a resturant similar to what you would want and talk to them to learn more. I would never ever have a partner in business......especially family. If its just the wife then that would be fine, but inlaws...hell no.

Well the in-law will be retiring soon so we will likely be taking over her restaurant when that happens, this is sort of just on-the-job experience building up to the day when she eventually retires.

Gettingetting a hot dog stand in CA is harder than getting a permit to drill for oil, no joke.

Essentially we would just be opening a second branch of her existing restaurant which I would run, and that at least makes the license/permit issue less complicated. We are going to have to do it at some point because when she retires we will have to manage her SF location because the business is just too successfull to let it fall by the wayside.