Restaurants are something that many people dream of having. You watch the Food Network and think, “Damn, I’m a great cook…and I can entertain..I bet I could open a restaurant” . Catering to families and friends, watching the happy smiles of customers, seeing all profits coming into your business, that’s the stuff that dreams are made of, right?
Unfortunately, reality hurts. And that’s pretty much true in the restaurant business. If anything, opening a restaurant isn’t a bed of roses. There are some things that you need to take into consideration, and many of these can discourage even the most persistent hardheaded of “restaurateurs”.
If you still think that you have what it takes to set-up a restaurant joint, then perhaps this list might give you second thoughts. There are at least ten reasons why you shouldn’t open up a restaurant business.
1. No time for yourself ” unless you always see yourself as a man (or woman) of the kitchen, then better think of another business. Mind you, once you run a restaurant, it will consume most of your time. In addition, the holidays will never be for you, that’s because it’s precisely the time when you should open up for business…Valentines? You’ll be working. Christmas? Ditto. Thanksgiving…you get the drift.
2. This is no “get rich quick”plan ” a restaurant may seem profitable at a glance, but if you let others handle the operations, then all the money that you get to earn will just end up spent on others. And it pretty much takes years before you can see any profits coming in. What is all your money being spent on? First, food and beverages, to prepare meals, serve coffee, tea, milk, fruit juices and alcoholic drinks. Then you need to think about salaries and wages (regular pay, overtime, vacation, commission, bonuses…and you’re probably barely paying yourself). And then there are occupational costs such as rent, taxes, accountants, HR, and insurance.
3. There are no guarantees ” that’s the rule that you should always keep in mind. Despite what you might see or hear, a myriad of variables can affect the operations of a restaurant. For example, there are missed deliveries; the supplies aren’t up to quality, the cook calls in sick, you get slammed on Yelp, you don’t have enough money to bribe the Department of Health…etc. All these things can affect you.
4. Trust (or the lack of) ” restaurant staff is often the butt of suspicion when something goes wrong. Absences, in-fighting, grudges, stealing, etc. Bartenders (not all…but some) are known to give away free drinks to raise their tips. It is really hard to keep an eye on things unless you have a staff you know and trust.
5. Customers are a choosy lot ” take note: fads will never get you any lead. What may seem like the winning strategy may not hold water in the long run. Salad bars, gluten-free bread, vegetarian burgers, while there may be hardcore customers for these, a surprisingly large number of people are regular eaters who just want a nice hamburger and chocolate shake.
6. Beware the restaurant reviews ” good or bad, a restaurant review can ruin you. If it’s bad, then people will stop coming to your shop. If it’s good, then a huge number of people will start flocking to your joint. More often than not, you’d be unable to meet the demand. If you do open your restaurant, check out services like Socialdraft.
7. The Law is the law ” despite your best efforts, you might still end up with a loss, what with the many government and local legislation that you need to obey. From fire escapes to dust in the windowsill, failing the occasional inspector can set your restaurant back, way back to the start.
8. It’s in the experience, dummy! ” if it’s your first time starting a restaurant, then be ready for the heartaches and drama that rivals TV shows. No kidding. Experience counts since this will determine whether you have what it takes to keep your business going in the long run.
9. The concept doesn’t count ” you may have that snazzy idea and it’s making your business flourish for now, but unless you think up of something better, then someone else will beat to in the race. It’s the usual day in the office for other businesses to steal your customers. Their idea might just turn out better than yours.
10. Getting the books in order ” you may think lightly of it, but keeping accounting records plays a big role in helping your business work. If you don’t know the basics of accounting, then hire someone who knows how. It may seem like an unnecessary expense, but it can help your business stay on track.