With the current challenges the world faces and with those who mouth-open prevaricate over everything they don’t understand, it’s sad to see so many restaurants going into administration.
I just wrote this and it may be of interest.
Jon.
RESTAURANTS AS A WAY OF LIFE
I find it amazing that the doomsayers out there are actually believed when they pontificate at length about not being able to make money in a restaurant. Glib statements like, ‘Make a small fortune by opening a restaurant with a big fortune’, don’t help. That is re-said by those echoing others lack of knowledge.
Indeed they blame the economy, war, sunspots and/or anything except their own inability to run a business. Yes, run a business, not just buying a few tables and hope, but run a business.
Personally we do just that, unlike a past life in finance, hospitals, downsizing and litigation, we have fun. We run a business which happens to be a restaurant and we have been doing it in just this restaurant for some 23 years and we only seat 16 inside. I am the cook whilst my wife runs front of house. Just the two of us and no staff.
Luckily people like what we do and we are full most of the time and it’s not life threatening as we only trade some 25 hours a week spending quality time travelling around the world about 8 weeks a year whilst attempting golf, archery and pickle ball. [‘Hopeless’ at all three but still fun’].
Our boutique business has won many national and international awards reaching ‘institution’ status by and through longevity if nothing else. It’s the business itself which funds all our excursions and we are very very careful with all costs including rent, cost of sales and margin pricing which reflects our chosen business focus, defines us and anchors our reputation. We have no debt, no leases and controllable costs. This is not cook and hope but planned with zero waste of any kind. If we have quiet night or two it doesn’t affect or worry us
If we can do this whilst I am approaching 80 then imagine what a mere lad of say 50 could achieve?
Is it cheap? No. Can risks be controlled? Yes. Is it a business challenge? Yes. Is it lucrative? Yes. Are results guaranteed? No. Is it fun and life affirming? Absobloodylutely!
Ambition is a wonderful thing but ‘planned’ ambition is indeed life affirming.
Apart from all of the above, be careful buying a cheapish dud with discernible ‘bad-will’ as the risks are significant. Any business is only worth it’s fair value assets plus nett profit for a prospective owners ‘hands off’ returns. Do your homework and understand capitalised future earnings as a valuation tool as well as scrutinise claimed revenues [BAS is good] and overheads [independent landlord provided] and complete a margin analysis to get a good idea of what’s actually happening. This is simple good business purchasing as is scanning past booking records for any anomalies before purchase.
Then cook your heart out and love the experience because you are financially in control with low risk. It won’t always work. Some years ago we also had a dud. Bugger! Life doesn’t come with guarantees but life without controlled challenges would be as boring as that well known bat excreta.
Restaurants are fun and you are dealing with happy people rewarding them with an ‘experience’ and they even pay you for the privilege! Wahoo.
Go after the brain dead keyboard dropkick negative reviewers if they are not warranted, live with an attitude of gratitude for the good reviews and ‘fill every hour with sixty minutes worth of distance run’ albeit not too many at work. [With apologies to Kipling for his masterpiece of a poem, ‘If’].
Life is good.