Some questions for experienced chefs..

[Omi]

While reading many of the posts here I have noticed that even many experienced chefs will boldly admit that they are "still not ready" to venture out on their own. I would love to get more information of why this is. Is is because of the start-up is so difficult? The money just not available? The failure rate of new restaurants? The difficulties of management? I am curious as to why those that have had experience, some for quite some time are so hesitant to have their "own place." I would greatly appreciate anyone that would take the time to answer. Thank you!!!

[Jim]

Being so bold as to venture an answer... here goes.

Some years ago, I asked a friend of mine with 3 small children "how do you do it? How do you manage 3 kids? How can you afford it?"
He responded, "Well, if we all waited until we were ready, there wouldn't be anybody left!"
You see, often we go headlong into the deep-end wary (or not) of what lies below the surface. We can have a measure of success or failure without necessarily drowning.

I think when somebody says they are ready, they either do not know what task is before them or they, in fact, have a mastery of the information necessary to run a successful operation.

Hope this what you were looking for.

[foodpump]

Running a profitable food related business is like that Circus act where the guy is spinning 12 plates on broomsticks and is constantly moving to keep them all spinning and from falling down.

So I can cook, big deal. Can I make a buck with it? Financing your venture is the start, underfunded and you won't make it, overfunded and the interest will break you. Then there's the clients. Where do they come from? How often do they come, how much do they spend? Overhead. A restaurant is like a big baby, it needs the regular stuff, like heat water and insurance, but also gas, garbage disposal, laundry service, vent cleaning services... Then there's the employees, the rest. biz is not known for long services from employees, the average length is around 6 mths, and this is one of the biggest head-aches the owner faces.

Then there's the knowledge you need: Cook says the fridge isn't working. If you call a repairman he will charge a fee to get down there before he even looks at the fridge, and the odds are that he won't have that part in his truck. So has the breaker tripped? Is the compressor hot or cold? The coil all iced up? What brand is it? What type of freon is it running on? All this has to be conveyed over the phone before the repairguy is dispatched. Labour disputes: Can you fire a d/washer and subtract the charges from his pay as he broke a stack of plates because he wasn't looking where he was going and walked into a wall the third time that month? Waitress bringing in her b/friend 20 mins before closing, and the guy always manages to have a free meal before leaving? Cook shows up with red eyes, a stupid grin, and moving like he's underwater?

It's a lot of work, and most people think that you just cook up a steak whenever you want to, schmooze witht he guests, and laugh all the way to the bank. It's not a job, it's a lifestyle.

[panini]

All very insightful posts.
I'm going to venture to say that cooking or baking is only a small percentage of running an operation. Actually your goal is to train yourself out of the kitchen.
It is imperitive that any student in school that may dream of ownership needs to back up your culinary education with a business degree or vice versa.
I personally think the lack of business knowlege contributes big time to the failure rate in this business. I'm just not sure that the culinary education teaches you the value of a dollar. Heck, most people in the hotel business have no idea where the food comes from in the storeroom, all they know is that it's there when they need some.
A great talented chef gets approached by some backers. They tell him just do your thing and we'll be sucessful. Trust me, without basic business practices, Gone in a Year! I'm approached monthly with local people ready to throw money at me to franchise or expand out. You will never see educated food people throw money like that, trust me.
Anyway, usually a good business person with little food experience can keep a place alive where as a good chef with little business experience will dive.
Justr my 2 cents, learned the hard way

[emhahn]

While we often hear so much about how people would love to have their own place "someday," we also hear from experienced veterans the exact opposite, "put me out of my misery."

This is what separates the dreamers from the realists.

The restaurant business is ANYTHING but easy. I see stories almost daily about how people have given up their normal lives to jump into the restaurant business. Should we really feel sorry for them?

I think if people have a plan. Have some great experience. Are willing to listen to others, and most importantly have good ideas, I think their chances of survival are much better. It's those who woke up one morning with a dream and decided to pursue that dream without getting their feet wet first.

I think you hit it on the head of the nail, Panini. It's really a combination of the above...

Eric
http://www.restaurantedge.com

[panini]

Eric,
You're right, it is a combination.
Omni, a few more thoughts. You could interpret 'not ready to venture out' as a very talented and creative chef not wanting to give or trade the time doing the thing he loves. You have to force yourself to stay sharp. I actively seek out upscale restaurants for wholesale so I can get in the kitchen to RD and play.
I here lots of 'buy me' and put me out of my misery. That seems to be a front we all have. The fact of the matter is, the control is priceless. Your in total control of your own destiny.
One of he problems I see with the failure is to realize that you are basically running 2 different businesses under one roof. Manufacturing the product and then retailing it. Melding the two is very difficult from employees to the descision making.
I feel the most important ingredient to ownership is to continuously build your business for acquision. Unfortunately your only payday is when you sell. Sure you increase your life style while growing, but if you can't sell your business without having to stay on, it's a job.
Just a few more thought.
ps I always incourage anyone yearning ownership, go for it! with the proper research.
The risk and commitment are great. You can check out but you can never leave. Just the thought of having to support multiple families and things of that nature will gray the hair a little.. BUT! if bus. slow, you can get out and hussle business. That's controll.

[Omi]

Thanks to those of you that have given your input. They are exactly the answers I wanted to hear. Yes, I am doing the investigative work on opening a much needed place in our area. The first person to do it and do it right should succeed, that is if they know what they are doing. I am not about to go into something without thorough investigation. Now that my children are grown and I have had a chance to travel a bit and live out side of the country I am going to do something that will "take my life over" because the option here is get it going strong or grow old quickly. I do not have any preconcieved ideas of "getting rich" or sitting back watching the money roll in. There is a need, if I can put it together, make it happen (only and only if the costs and projections show there is a strong chance of success) and if all else fails, I did enjoy living in that little hut in Costa Rica

[panini]

Omi,
I make myself available to you. I have probably made all the mistakes.
Surprizing my wife and Son with a trip to Costa Rica. My son wants to, I'm not sure of the name, zip line? through the rain forest. Me, I want to look for property.

[Omi]

Panini, Thank you so much, I may be picking your brain! You must be talking about the canopy tours. They are all over the place there. We spent alot of time in Mal Pais/Santa Teresa, my boys were there for the surfing and I was escaping the aftermath madness of hurricane Ivan. Let me know if you are going anywhere near there, there is a little restaurant (if is still there) you must check out. I could rattle on and on about Costa! We (I) thought about purchasing something there but my husband wasn't to thrilled about the idea, after 28 years of him letting me have my way, I decided to give it up!

As far as my restaurant venture, I am diligently pressing forward. I meet next week with an owner that has been sucessful (he will straight up tell you how hard it is and in the same breath tell you that he loves it and thinks the business is great). He has offered to talk to me. I am pressing forward but will not hesitate to bail if the projections don't look good. The things I am learning now will be helpful no matter what I end up doing.
omi

[chefmikesworld]

Since the start of RestaurantEdge, some years ago, regardless of how much I thought I knew as a chef, I realized how much I do not know...

Eric and I have had this conversation many times and I even started to write an article about it that I never completed but the jist of the artilce was that just because I own a wrench set, does not make me a mechanic and unfortrunately there are a lot of people that walk into our industry and think that they have the information to be successful are often the ones that wind up crying "SHOOT ME!!!!!!!!!!"

For any form of business that I undertake, I use an acronymn that I learned while in the Marine Corps and it helps me in the business aspect of my life....

SMEAC

Situation, Mission, Execution, Administration/Logisitcs, and Command

These categories can be broken down into a hundred others and is a great start in order to outline and analyze a situation in business that you may find yourself in or desiring to get involved in...

Although I believe that sometimes too much thought is detrimental (or has the possiblity of being) I believe that if you feel that you have the desired amount of resources ( information, financial and professional resources etc.) then go for it, just don't expect to make money and then one day you might be pleasantly surprised....

Organization is the key to success, if you dot your I's and cross your T's, and analyze every event as an event, then you are better off than most... A blind dream, no matter how thoughtful, is still blind...

Cheffy Babbles 101...

Chef Mike

[Omi]

You are certainly correct. It is when people think they "know it all" when the details get neglected. I always make a point to never "rest" in the things I do know well, there is always more to learn. Regardless of what I choose to do, I will make the effort to progress, expand, learn. It is what keeps things interesting! I will certainly remember SMEAC, it will be a great tool. In fact, I will need to put it into action in the morning when I wake up to face the hundred or so tasks for the week! omi