Location Is Just One of Many Factors to Consider In Opening a New Restaurant by Michael Stadneck
Opening a restaurant is not rocket science but a few simple mistakes especially in the early stages can mean success or failure. Deciding to become a restaurant owner is always risky business. Opening up is the easy part. Keeping the doors open the seats filled is where it gets tricky. There is whole smorgasbord of things to consider before blindly rushing forward.
The most important factor in establishing any new business is the location. A typical restaurant owner is generally required to commit to a long term lease he had better hope pray he makes the right decision because if he doesnt he will be stuck in that location for a long time. Or pay a hefty penalty to get out of the lease early. On the other hand the operator of a mobile food concession has the ability to change locations without penalty at any time as conditions warrant. If business slackens off in one location he can readily fold up his tent so to speak tow his trailer to another location.
The initial capital expenditures for building lease leasehold improvements outfitting the kitchen seating lighting flooring all other pre opening costs can easily reach $200,000 or more. & if you pour all your money into the wrong location that money is as good as gone. You cant take the leasehold improvements with you. On the other hand the owner of a mobile food business has a substantially lower initial investment with a much smaller risk factor. If things do not work out at one location he can hook up his concession trailer bring his business to customers at a different location. & take his entire investment along with him.
If your idea of fun is constantly worrying about money hiring consultants training managing employees complying with government regulations setting up systems balancing the books taking inventory preparing menus controlling theft working 18 hour days then you are a natural born restaurant owner. If this doesnt appeal to you you might consider the simplicity of owning a mobile food business. Did you know that many hot dog vendors working downtown areas make more money than the majority of struggling to survive restaurant owners & most of them work only 4 5 hours a day. Talk about a low stress job with a fraction of the risk.
Hiring training managing restaurant employees are probably the most difficult tasks that the new restaurant owner must face. If you are an easy going individual your employees will take advantage walk all over you. If you are overly strict they will leave go somewhere else. The restaurant business is one where your employees from your cooks to your busboys can either make or break your business. In many cities even smaller towns newspaper columnists write articles about the local eating establishments. A great review will usually bring in new business for a week or so at the most whereas a bad review could ruin your business entirely. An unfavorable report from your local health department could also be devastating.
Whatever the current wage for restaurant employees happens to be be willing to pay it. In fact when you hire someone who turns out to be an above average employee pay him or her more than the going rate. This will show your appreciation for that person in many cases will instill strong work ethics a sense of loyalty towards you your business. Training your employees in all aspects of the restaurant business is an important never ending chore.
Keeping your doors open your seats filled with patrons can be an ongoing source of anxiety. There is lot of truth in the statement Opening a restaurant is the easy part the real challenge is making money at it. Dealing with day to day problems is another aggravating exercise. Equipment always breaks down usually in the middle of rush hour. Customers do complain even in the finer restaurants. There is always something that will crop up to put a glitch in your day. Thats all part of the business. If you survive the initial years in time you will learn how to run the business cope with all the problems that arise. & in the end if you are one of the fortunate survivors you will recoup your investment begin to reap the rewards.
As you might have gathered by now opening a restaurant is ton of hard work. It can be a long road full of potholes. Opening a restaurant is challenge in any economic climate. Even in a booming economy it can be a bold risky business venture. You would be well advised to do your homework investigate every aspect very thoroughly before signing the lease.
Amazingly Michael Stadneck lost his financial planning job due to corporate downsizing out of necessity became a hot dog cart dogandtwist. com Opportunity. html vendor in New York City. He later purchased a mobile food concession trailer now travels the northeast setting up business at local fairs at special events. He currently enjoys his life makes a decent living all without the stress. Location Is Just One of Many Factors to Consider In Opening a New Restaurant
