Post: #1

Anyone ever consider this? I love cooking. Opening a restaurant in Eastern Europe would be a dream fulfilled. The only trouble is getting the startup funds. How do people get the funds to start a restaurant? This is why you have so many chefs who finish top schools and end up making near minimum wage...while only dreaming of opening a place.

Is there a way or plan to actually do this?

Post: #2

Cooking vs. Running and Owning a restaurant are two different things. Cooking is a grind and you have to pay your dues to eventually get to a comfy spot. A lot of cooks never get their and stay trapped in the kitchen for most of their careers.

Restos are more of a gamble. most people jump into it because its well nothing more than a business with food which is why I suspect that so many fail. I am sort of a foodie and just observe shit from afar but IMO what seems to make restaurants work its doing your due diligence like a mad man and seeking out a neiche to exploit. Simply saying you want to to open a neo-marghar-frnech resto in some trendy spot in EE is not enough. You have to zero in that niche and then see if you can find the right sources to maintain it.

This is why the food truck and cart trend here in North America does so well because you have kats whom have found a niche to exploit but have chopped thier overhead costs over half by not having to front a brick and mortar building while displaying the one thing they wanted to display/sell. The food.

So I guess the question is is it the food or after or the bussiniess?

You ussually tallk investors into pulling in funds but then you get into that trap where kats want you to run your shit like a business and not a food spot where you can go after top sources for food, talent, drink.

You can also go the debt route which is tough because so many people go into this bizz trying to run a resto like a shoe shop and thus banks are that open to slosh around funds for restos like that.

Once you answer that question you can look at unorthodox ways of starting things up. Maybe start a smaller stand, or if you are a boss in the kitchen persuading somebody to give you space to to your thing in a bar or small hotel or something.

Post: #3

Here's a question: what's the trajectory of most restaurants? I see restaurants opening and closing all the time. Do most just never catch on and are flops from the beginning? Or is it that they open fine, but then peter out as people move on to the next thing?

If it's the former, then a great business would be opening up a restaurant space and then renting it out to people who wanted to run a pop-up restaurant out of it. There has got to be all sorts of cooks/foodies/bored housewives who would love to take a shot at running their own kitchen for a week or a month. I have no idea about what the revenue stream would look like. I assume that like all restaurants, you'd have to make your money off of booze. You could probably charge enough of a flat fee to at least recoup your rent and fixed operating costs and then get a certain cut of the profits.

Post: #4

(07-02-2012 07:59 AM)Spartan Wrote:  Anyone ever consider this? I love cooking. Opening a restaurant in Eastern Europe would be a dream fulfilled. The only trouble is getting the startup funds.

Ever worked in a restaurant?

Post: #5

I would never open a restaurant. It's a brutal industry. I've been around it in some capacity for a long time.

First, what is today's trend. Burgers?

Right now it's tacos. Before it was nose to tip and raw meat.

Second, you need to be prepared to change direction in a heart beat. People want the next big thing and you have to be prepared to renovate, change location, change the menu, the atmosphere etc.

Third, the prep alone. You don't cook with a whole onion. You have to prepare it before. Hours before. And after. For a new restaurant with no capital and want to save money, you do it yourself. That's getting there say at 7am for a small lunch service offering. Then you have to prep for dinner. 6pm sittings? Until 11pm. Then you have to clean up and maybe do more Fucking prep for the morning.

Brutal brutal industry.

Cook for your friends at home.

Post: #6

Open a restaurant.

High stress, low success rate, low pay, low leverage. Takers? Pass.

Post: #7

redacted

Post: #8

Everyone beat me to it.

A restaurant, a successful one anyway, is dependent on the tripod of 3 individuals who know exactly what the fuck they are doing. They are:

The Chef
The front-of-house manager
The office person

Is it possible to do it otherwise? Yes, but your chances at success drop massively. Traditionally, there are mom and pop restaurants all over the world. One of them cooks, one handles the dining room, and the two of them handle bookkeeping at the end of their 12 hour day and exhausted. It's a bit of an outdated and romantic notion.

It's crucial that none of the three are related to each other or have personal ties. The triad, ideally, is formed from networking after years of working in the restaurant business and each member is aware of the competence of the other two. Being successfull in any of the three positions means a BARE MINIMUM of 5 years of doing what they do. I'd say 10 years is more like it (I've got 12 under my belt)

A chef has to know much more than how to cook (which in itself takes years upon years). He needs to know how to manage people, ensure consistency, monitor food cost, maintain a reasonable inventory, monitor labor cost, maintain health standards, know how to fix a commercial dishwasher with a soup spoon, formulate recipes. It's not uncommon for chefs to regularly work 80+ hours a week to handle all this shit and STILL have time to do all the fish and meat butchery, do some expediting, and fill in on stations if he's short staffed.

The same goes with the floor manager, except this poor fuck has the misfortune to have to deal with the dining public face-to-face. If you've never waited tables, you have no idea how awful humans can behave once they sit down in a restaurant. Their sense of decency evaporates and suddenly, because they have to PAY for a meal, they adopt a sense of entitlement that would have you think they deserve to have their feet kissed. Hopefully you have staff that can handle it, if you can manage to find staff that actually show up to work every day.

Finally the bookkeeper. You have no IDEA how much paperwork is involved in running a restaurant. From deal with city permits, licenses, insurance, taxes, fees, lawsuits, etc etc etc. Employee payroll, worker's comp, unemployment tax, with new shit bombs dropping every day from every direction. If you want to actually be successful, you need to very very closely monitor how money moves through your restaurant. From tips and cash drops, to calculating expenditures and sales, to drawer counts, there is money flowing in many different directions, to servers, bartenders, vendors, probably the owners (over 90% skim from their business, try taking account for that)

You need to know something about building code, about the equipment that you need, about POS systems.

You should know something about PR so you can get the word out and actually fill your dining room.

You should know how to handle special events when a young couple decides they want to get married in your restaurant, or some local business wants to do lunch for 100.

And at the end of the day, you STILL have to maintain a passion for what goes out on the plate, otherwise you have no customers. And then what's the point?

I've worked in everything from michelin starred restaurants, to 5 star 5 diamond hotels, to little mom and pop places. I've worked with owners that didn't know shit, and managers who were absolutely cutthroat and completely perfect well-oiled machines at doing what they do. If you have any further questions hit me up

To answer your question about funds, it's always done through investors. You need a business plan like any other in which you have a very serious and thorough outline about what your concept is. What's the product? And I'm not just talking about the food, though that's important too. What does the restaurant look like, smell like, sound like. Imagine the finished product in your head and work backwards, and then get it all on paper. Next you need to talk about numbers, because that's what investors really like. What's your projected check average, your projected net sales, your operating costs. Coming up with a solid business plan should take a month. Most restauranteurs find investors because they have a proven track record as either a chef or a manager. Other than that, hell if I know how it happens. There are a lot of fools parting with their money out there in the restaurant world.

Edited one more time: VERY few restauranteurs are as financially successful as they'd like with just one restaurant. You can get by on it. If you have a medium volume restaurant that does $2.5 million a year gross (not too shabby, that's a restaurant serving 140 guests a day with a 50 dollar check average that's open 365 days a year) and you are REALLY fucking good at what you do, you can earn a 6% profit margin by your second year (the odds aren't good, this is like a seasoned vet getting 6% by the second year, but it happens) that's $150,000 profit, and probably your paycheck. If you break even your first year you're doing very well, that means all of your vendors are up to date, you have no serious outstanding balances, and your invenstors are 1/3 to 1/2 of the way paid off. Fewer than 10% of restaurants are in this status, and the vast majority close by their 3rd year, if they make it even that long. But there are a lot of dreamy eyed goofballs in this industry.

That said, the money really starts flowing in once you're a multi outlet brand. You get 3-4 restaurants under your belt, all of them earning 4-6%, maybe even hiring a manager who manages to squeeze 8% out of your businesses, then you're earning serious cash. But the resources and knowledge it takes to run 4 successful outlets would make your head spin, unless you've been doing this for decades and this shit is just in your bones.

Post: #9

Besides all the other very good advice given above, if you want to start a restaurant, I suggest you keep it small and do just ONE THING, but do it VERY VERY well. It could be anything, let's take burgers as an example. Go and design a burger as close to perfect as possible. Offer nothing else on the menu. Just burgers and other easy stuff that you don't have to make. That's it. Use that as an example for anything. Keep overheads really really low, make it a take out place with a few chair and tables. That's it.

Post: #10

(07-02-2012 09:08 AM)thegmanifesto Wrote:  

(07-02-2012 07:59 AM)Spartan Wrote:  Anyone ever consider this? I love cooking. Opening a restaurant in Eastern Europe would be a dream fulfilled. The only trouble is getting the startup funds.

Ever worked in a restaurant?

I have, basic stuff at a chinese restaurant.
I also ran the kitchen at my fraternity for every initiation week: cooking 3 meals a day for 40 people. I planed the menu, went shopping, and directed subordinates as they did prep work.

It was brutally tough and at the end of each day I was exhausted and had blisters on my hands....but I loved doing it. It was challenging and I loved getting into the flow of that.

I have no illusions, its hard work....but its something I'm passionate about.

Also, keep in mind I'm in Eastern Europe. I get scared when I read the above posts talking about how on top of everything you have to be. If you guys have been here, you'd see how little competition there is here. Service, food, and decor are all of a different standard. A mom and pop place here could definitely work... 2 Turkish guys I know are opening up a cafe here. Thank god I left the USA... life is just so much more relaxed here and slow paced. Think small town America circa 1960s.

Post: #11

double post

Post: #12

Yep, I'm speaking from experience in L.A. Another 5 or 10 years you'll see me in Slovenia pushing a hot dog cart around.

Post: #13

(07-02-2012 01:56 PM)Spartan Wrote:  Also, keep in mind I'm in Eastern Europe. I get scared when I read the above posts talking about how on top of everything you have to be.

Yeah you have to be on top of it.

One thing no one has mentioned yet:

Employee's steal everything in restaurants that isn't nailed down.

Hell, they will even bring a pry bar when you aren't looking.

Post: #14

yeah, perhaps mom and pop here might work out...but most people don't go to restaurants here often. Maybe a dream for the future

Post: #15

Got 15 years experience in the trade, had my own award winning restaurant for 6 years, would never ever even dream of going back to that trade. Unless you want to spend 80 hours a week working don't even dream about it.

Post: #16

I am in kind of restaurant business. Although it's a lot easier than restaurants, I want to get out asap.

you will work 7 days a week. There is no guarantee for making money. (it's possible an employee can make more than a owner)

For restaurant business, it's not about covering your rent. it's about paying for your staff.
(2 chefs, several waiters, dish washer, cashier, probably a manager, let's say it's just $10g a month. how many plates of food would you have to sell just to make it even?)

If you don't have family money, don't even think about it. (Unless you are a very talented chef who can find investors)

It's very labor intensive to work even as a chef. Just work as a chef and look everything behind to see if you will like it.
I will guarantee it won't look as interesting as you see as a customer.

Post: #17

I'd recommend working in a restaurant first and also watch some episodes of Kitchen Nightmares. Some of it is brutal. I enjoy cooking for girls, friends, and family.

Post: #18

(07-02-2012 02:41 PM)thegmanifesto Wrote:  

(07-02-2012 01:56 PM)Spartan Wrote:  Also, keep in mind I'm in Eastern Europe. I get scared when I read the above posts talking about how on top of everything you have to be.

Yeah you have to be on top of it.

One thing no one has mentioned yet:

Employee's steal everything in restaurants that isn't nailed down.

Hell, they will even bring a pry bar when you aren't looking.

I was talking with a guy that owned a few restaurants and he said the same thing. He has cameras everywhere (hidden) and moves them around every week or so.

I also think Spartan should worry about trying to start a business in EE. I can only imagine the amount of bribes he will have to kick in to get those doors open.

Post: #19

(07-02-2012 02:41 PM)thegmanifesto Wrote:  Yeah you have to be on top of it.

One thing no one has mentioned yet:

Employee's steal everything in restaurants that isn't nailed down.

Hell, they will even bring a pry bar when you aren't looking.

Seconded. I've been in the restaurant biz..I know the thousands of ways everyone from the busboy up to the managers is trying to get something extra.

And that's with cameras already trained on them cuz they knew the boss had 0 time to look at that tape.

Post: #20

Given all the negatives it's amazing any restaurants exist at all.

Post: #21

I grew up in the restaurant business before making a clean break and doing something entirely different. It's important to distinguish between the different classes of restaurants out there. While the entire industry is risky, the greatest risk comes with restaurants that require a chef and complicated recipes. Those stores are much higher maintenance and you can't pull any tard off the street and train him/her to cook the menu.

The key in my experience is finding the right balance between producing a unique recipe and automating it. The pizza and sub shop hits the mark. You have the freedom to put together your own recipes -- sauce, dough, etc -- but can also find labor at a cheap rate to work in the kitchen. And, pizza and subs are everywhere...because everyone eats that type of food. When I was in the business, I thought my area was saturated but was always surprised when a new place would open up down the street and they would be busy as hell, but wouldn't impact my sales at all. People love pizza, they loves good subs. Good is the key. Anyone looking to get into that line of biz, I'll give you a free piece of advice that will make you better than all the rest -- use quality ingredients. There it is. Quality cheese, quality meat, fresh bread, you name it. Pizza and sub shops always seem to cut corners and buy the cheap ingredients. When you use quality, the customers notice the difference and they will come to you.
All that said, I'm not sure I could get back into that business. I've considered it, but it's hard work. That shit was ok when I was in my 20s. but I'm not trying to work my life away. In my 30's now and more concerned with traveling the world, breathing fresh air, and feasting from an international smorgasboard of pussy.

Post: #22

Every restaurant owner I've known works 100 or so hours a week.

You have to work those hours because otherwise you will be robbed by your managers and wait staff. They will steal your money, your inventory (steaks, wine, even garlic), and even your furnishings.

Ever notice that many restaurants are family owned? Your family may rob you, but not nearly as badly as anyone else.

Even family run businesses have drama:

http://www.lamag.com/features/Story.aspx?ID=1522973

Post: #23

(07-16-2012 06:28 PM)MikeCF Wrote:  You have to work those hours because otherwise you will be robbed by your managers and wait staff. They will steal your money, your inventory (steaks, wine, even garlic), and even your furnishings.

Hell, cups, wine glasses, silverware, toilet paper.

Cleaning supplies.

Towels. Paper towels.

Wine openers. Martini shakers.

Plates.

Napkins.

Like I said before:

Employee's steal everything in restaurants that isn't nailed down.

Hell, they will even bring a pry bar when you aren't looking.

Post: #24

If you hate someone , give him a restaurant .

Post: #25

Another big issue - you are in Eastern Europe, not sure what country are you thinking about, but in many countries mafia extortion is a very big issue for any brick-and-mortar business (restaurant, bar, shop,...). I grew up in Bratislava, Slovakia and it was a big issue, at least in the 90s, pretty much any business had to pay "protection" money to the local gang. I knew about a Greek guy who wanted to open a Greek restaurant in Bratislava and a few mafia thugs paid him a visit before he even opened it. He got scared and discouraged and got rid of it as soon as he could.

This was long time ago (late 90s), and I assume things in Slovakia got much much better, with the EU ascension and all. However, in Ukraine (or other non-EU countries) I can imagine that the gangs still reign with an iron hand. Definitely get a trustworthy local to talk about these issues.