The Money Part II

Let’s look at option 2

Why buy an existing restaurant? v.s. to start one from scratch.

The answer my friend is in the wind. The stats talk, 92% of new restaurants opening fail. If you buy an existing one opened for at least 5 years or more, you already are in the 8% of those who survived.

If you buy an existing restaurant you will need to do the following:

  1. The amount of cash, will be determined by the price of the business. The best plan is to give a down payment and have the owner carry the balance. You still will need cash for the rent and the basic expenses, a bond for the State Board of Equalization, food, utilities, payroll, a  bond or deposits for utilities and telephone, let’s not forget about the Workman Compensation. You also need a safety to allow extra cash for the unexpected. You bought an existing restaurant who knows about the plumbing, one of the stove giving up on a Saturday night, a toilet plugged in the middle of a rush hour. You also might loose business due to the fact regular customers not returning because the old owners are gone. This might drain your cashflow and not being able allow to reach a positive balance sheet for 3 to 6 months. During the first 6 months you will have to pitch $$ to keep the beast alive. Do not forget about the accountant and maybe your shark. You might want to keep the shark out of nibbling at your hard earned $.

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The Money Part I

 

How much money do I need to start my dream restaurant?

There are two possibilities:

  1. Start from scratch
  2. Buy an existing restaurant

Depending on option 1 or 2, the initial capital are slightly different. I f this is so, why do I need to buy some one else joint, when I can create my own concept and be the top dude in my kingdom?

Let’s look at option 1

If you start from scratch you will need the following: Continue reading

Marketing your restaurant is not an easy chore, but the results will make all the difference between striving tomato ends meet or enjoying your life. Whatever your life might be, a family life single life or just l plainly a business life dedicated to a chief success in your endeavor. First thing first, you need tone organized and structured. In our competitive world there is no place for  dibble cable type of person half way involved and the other half playing golf instead of taking car of business.  After all, there’s a lot at stake when you’re trying to market your business. at the Bicycle Shop Cafe our gang of three has more than 120 years of restaurant experience. This is this conglomerate of experience that we are interested to share with the independent restaurateurs. Independent have an up hill battle against the chains. Continue reading

WOM (The word of Mouth is back, to sting you)

Most restaurants,  still depends on the WOM (Word Of Mouth) expecting the customers to spread the news about their dining experiences to family and friends. In our electronic age things fly faster and might hurt quicker and are more painful than ever.  The WOM is more  powerful than any press review through social media. An unhappy guest can leave a nasty review about your restaurant, wich will stay for years. A damaging review might cost the restaurant thousand of dollars income.

Reviews affect customers dining decisions, especially among the Millennials.

Home Delivery Mind You

 

If you need help you can always call this guy. He specializes in quick deliveries

A good business plan is essential to your business success.

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Too often overlooked by independent restaurateurs a good business plan will make the difference between obstacles, pitfalls, while anticipating and creating opportunities.

A Strategic Plan, which will encompass process, format and asking the right questions.

A comprehensive Business Plan has Ten Sections Continue reading