There are so many if's ands and buts, but let me give you some pointers based on what I've read and experienced.
First off, I am by no means an experienced restaurateur. I am a line cook in a fairly busy hotel with a #1 steak restaurant.
For taking over an existing:
#Negatives#
- More often than not by a large margin...if a previous restaurant has failed in a certain location then all changes of ownership will fail as well.
- Business will be slow at first because people will still think it's either the slummy or just slow restaurant that exists there...or if it was unoccupied for a while then they think it still is. Because of this...you will have to spend a lot more on advertising.
- If it's an area that used to be somewhat slummy but is now developing...you will be the decrepit old building compared to what's being built.
-From what I've seen...even if a facility was disgusting but it still received an A rating from the health department...the inspector will probably be a lot more harsh on the new owner and you will have to incur all of those costs to bring everything up to par.
#Positives#
-If it used to be a successful business...it can be a successful business again.
-Purveyors might be more willing to extend you credit than if you started a new business.
-If it's an area that used to be somewhat slummy but is now developing...you will attract a clientele of hopefully wealthier guests.
Building a new building:
#Negatives#
-Dealing with everyone related to the construction from scheduling, time, contractors, building inspectors, health inspectors, costs, health inspectors, building inspectors, contractors, COSTS
-Hiring an all new staff that you know nothing about, and having to weed out the bad ones and hire half of an all new staff
-Purveyors will most likely charge you COD.
#Positives#
-You can design the building/kitchen/dining room exactly how you want
-I don't want it to seem like I'm favoring buying an existing facility...I just can't think of anymore positives.
By no means have I told a significant amount nor I do I know anything about owning a restaurant as I've only been in the business two years as a cook...but I'd like to think I've learned a thing or two about business from my parents and doing construction related jobs for small companies where I was involved in a lot of the decision making. I just hope this helps you.  |