Feedback > Want to start a small Restaurant: maybe coastal

[mdvaden]

For the past year, I've talked to my wife about starting a small restaurant. I'd like short hours to start, so I considered a place that specializes in sandwiches, pastries and snacks.

Currently, I'm an arborist and landscape designer, and the work is a bit hard. I enjoy people and customers a lot, and that's why the restaurant industry seems like a good idea.

My father had two restaurants and one motel when I was younger. I helped him with serving, dishes and light food preparation. I also traveled 70 miles to buy the food for the restaurant. When I was about 26, I spent time almost every other day, hanging around a chef in Beaverton, Oregon, and helped him arrange his kitchen. That enabled me to see how he handled his serving, food storage, etc..

My wife is very good with food preparation, and cake decorating (although we won't sell cake).

Several people have told me that their friends had problems with cash and food theft, but I think I've got that one figured out. I plan to have security cameras placed viewing the tables, cash register, employee lockers, refrigerators and back door, etc.. The cameras will feed back over the internet to our home / office, so we can have 24 hour surviellance.

A few question I had were:

1. If it were you, would you rather purchase an older home or building in a commercial zoned area, or would you rather lease?

2. If space and funds were limited at first, what small appliances would you absolutely buy of commercial grade?

3. Since this operation would not dwell on dinner meals, what hours of operation do you think would be essential?

4. If you tried this, what style of advertising would you try?

5. Do you think that it would be good to start with an employee or two from day one, and absorb the expense until business made up for the cost?

Thanks, if you have the time to reply.

I put this in this category since it's not a "chef" style question.

[oldschool1982]

Too bad you're on the wrong coast. We are possibly relocating to SC. Not sure nyet but it's a distinct possiblity.

[Mezzaluna]

Maybe you should post this in one of the Professional Chefs' forums. This one isn't the best for getting the notice you're looking for.

[mdvaden]

Sure.

I'll give it a day or two, and copy it over there.

Thanks.

[eds77k5]

there are a lot of pros and cons to owning your own business, find a good location, check out what businesses are in the area, people wont travel far for lunch, get all your permits, licenses, get incorporated, you wont have any trouble getting used equipment in portland, get what you need according to your menu, plan ahead, and then plan ahead, think about your overhead, electricity, gas, water, sewer, and then the government will be your partner, taxes and more taxes, the fewer employees you have, the less in fees and taxes you pay, get a good accountant if you dont know that side of it, keep good books, pay yourself a salary, pay yourself first, then your taxes and then whatever is left over is gravy, how dedicated will you be to this business, it is hard work and long hours, it can be very rewarding, maybe not money wise at first, but, you are the boss, you have the key, you will get out of it what you put into it, check out the competition, you dont have to have lower prices, just be better than them, i am sure i have left some things unsaid, good luck, it can be exciting times.

[foodpump]

Best thing to do is write a VERY comprehensive business plan. If you're not rich you'll have to borrow money, and the lending institution will want to see one anyway.

Alot of numbercrunching: Fixed costs; rent, insurance, utilities. Expected labour costs, food costs, equipment and smallware costs. Then the biggie: Expected sales. Most plans will want to see some form of advertising and it's costs included. A very conservative estimate is to assume that you won't be able to pay any bills--let alone make any profit--for the first three months.

Sounds like I'm reading you the riot act, but you should be aware of all this stuff before you make any commitments.

[panini]

Always buy the property and buildng if you can.

[foodpump]

Did that Pan,

I can clean out a rain gutter better than the best, replace a flapper valve in the john faster than a speeding bullet, burned out switches? Yup, replace an expansion tank in the furnace room? Check. Get rid of mice that are fornicating behind the walk-in wall, just because some fool left the back door open for a half an hour while he had a smoke an a long chat on his cellphone? Yup. got rid of 'em in one week, --the mice, not the fool, THAT took me longer... Graffitti removal? Got my whole little kit, a shopping trolley full of paint cans in the back hall, and matching brushes wrapped in cling film in the freezer. Reaction time to the phrase: "Uh, Chef? It's raining in the dry-store room.." 2 mins, 45 secs, thats how long it took me to wrap a compression collar around a burst pipe with with hose clamps, balancing on a mayo bucket with water squirting in my face.

I remember as a kid watching TV ads for the CDN armed forces, the tag line was "There's no life like it"....

[Nentony]

M.D. Vaden, I had to chuckle when I read your post. Ive spent the last year or two thinking about a breakfast/lunch place, no late hours. You see, I operate a landscape business and as I age, it gets tougher. I have a son eager to take it over. On September 1st I bought a coffee shop and I put in a kitchen to serve light breakfasts and lunch, pastries, sandwiches, soups, salads, etc. Its on the coast, Satellite Beach, Fl. My kitchen got licensed yesterday. Not sure I'm a good source of advice, I'm feeling my way along myself. But I can relate! Good luck!

Tony

[mdvaden]

Thanks for all the advice.

I think that I'll spend a couple of years planning the business plan, and where to go. No rush. But I'd like to be prepared at the bank and at city hall.

For now, I did rule-out Brookings, Oregon - It's one size too small of a town for us. It was a culture change going from Portland to Medford. At least in the north coast, I'd be within 75 minutes of Portland.

I checked out a place in Brookings two days ago called the Wharfside. Apparently, the bank possessed it, and the previous owner sold off some equipment to support a "habit".

It's about $130,000 and needs plenty of work. But it is there. There is supposed to be a faithful group of customers. And, it's apparently one of just two or three properties that the port doesn't own. The little restaurant comes with building and the spot of land down by the wharf.

But since we won't move to Brookings, I'm not going to find out more about it. If that city was of interest, I think it would be an okay place.

[kuan]

Originally Posted by mdvaden

A few question I had were:

1. If it were you, would you rather purchase an older home or building in a commercial zoned area, or would you rather lease?

2. If space and funds were limited at first, what small appliances would you absolutely buy of commercial grade?

3. Since this operation would not dwell on dinner meals, what hours of operation do you think would be essential?

4. If you tried this, what style of advertising would you try?

5. Do you think that it would be good to start with an employee or two from day one, and absorb the expense until business made up for the cost?

1) It depends on property values and terms of the lease of course. It would definitely make sense to purchase your own building if property values are going through the moon. Ask a commercial real estate analyst.

2) A triple sink and a fridge.

3) Hours depends on the business. Most places, for lunch, make their money between 11:30am and 1pm. Maybe widen that window a bit on Friday.

4) ???

5) Look at the rate of turnover. This is the most important factor in determining where you need help. Technically, if you're not turning the tables at lunch and there's no line forming, you don't need more help. If you can't turn them fast enough then it's either service or line. Bear in mind you're a sandwich only lunch place. Your revenues aren't gonna be that high.

6) Ever consider a Jimmy John's franchise? Even slow ones do 5-600k a year.