Should I open a restaurant?

Question

I would really like to open up my own restaurant business but I’m afraid that it might not do well. I’m stuck and I’m trying to make the best decision. I don’t know if I should take the risk or not. If you were in my shoes, would you rather try and open a restaurant business and have it failed, than not trying at all? And please explain why.

Answer 1

Do Not Do It.

I don't like to crush dreams, but I would love to save you nightmares! The way you asked the question answers it for you. 1. "but I'm afraid that I might not do well"
2. "I don't know if I should take the risk"
3. "would you rather try to open a restaurant business"

If there is any doubt about doing it or not in your mind you're not there. The restaurant business in one of the toughest business out there. Some 70% fail their first year (mostly from under capitalization- which means they lost more than all of their money). 85% fail within the first three years.

If you have say $150,000 that you have ready to open your restaurant you had better plan on taking the chance of losing every dime plus another 30% or so. Restaurants are never as easy to get open as you think.

You had better be able to give the business most of your life. You had better plan on being the chef, waiter, bartender, dishwasher, accountant, lawyer, plumber, electrician, marketing director, manager, inventory controller, menu designer, best friend, babysitter, and parent. Oh ya and it all starts again the very next day.

I have had 5 restaurants, 2 of which failed, the others I still have today so I'm not speaking from the hip. If you need more information or if you are determined not to listen to the best advice you can get check out my web site http://www.foodandbeverageunderground.com and I will help all I can (contact me via the contact page.)

In any case I wish you all the luck in the world

Cheers!

Scott Hopper

Answer 2

Most restaurants fail. With that being said, I think location is they key. I work for the government and the restaurants around government buildings are always patronized. I suggest finding a location like this, where there is a constant customer pool you can draw from. I would say if you're financially secure try it. you might want to look into becoming a mobile food vendor first (hot dog stand type deal) or selling stuff at the flea market to make sure people like what you sell and you are up to the challenge. You don't have to start out big and risk a lot of money to figure out whether it will work.

Answer 3

Check with your local Chamber of Commerce & see if there are any laws on the books (County, state) that might prevent someone from invading your space. If they can't answer your questions, they might be able to refer you to someone who does know. In the meantime, sometimes competition is a good thing. It certainly can keep someone on their toes. In a business such as yours, repeat customers is everything. If you've been there 20 yrs, you must be doing something right! Hey, did you know that most businesses that never get off the ground, close up within the first 6 - 12 months? Hang in there, make a few phone calls. Maybe even tallk to your own lawyer. And just keep doing what you've been doing for the last 20 years. You're a shoe in.

Answer 4

Yes if you have the financial means. I would rather try something I really love & fail then question my decision years later. If this is going to put you in the hole then I would say no.

Just want to let you know that it can be a tough business. My sister & brother in law opened a small one in Navasota Texas & they did okay but never realized the work and trouble involved. They sometimes had customers that complained there was hair in the food or that it was cold and just to make the cust happy they would give them the meal free even though they knew the cust was lying.

Hope I helped somewhat & good luck & God bless

Answer 5

Risk? No.

Do not take any risks when it comes to your business. Educate yourself, learn your demographic, learn the area you're looking at. If you want to open a home-brew coffee shop, make sure it isn't a block from Starbucks. If you want to open up a sandwich shop, make sure there isn't a quizno's across the street! If there's a nearby college, go there and talk to the students...see what they wish they had. Mongolian BBQ? Pizza? Greasy hamburgers? Figure it out and give it to them!

Hard work, an in-demand product, and little to no local competition isn't a risk at all!
If any of these factors are not present, then it will be a risk, and you will probably lose your investment.

Answer 6

If you haven't been in the restaurant business I suggest you try getting a job in 1 st for at least a year. If you have been in the business for at least that long and have done the long hours it takes to operate one then think of the risk and as you say possibly failure and risks you'll have to face to pay back if you owe after you had the business.

You have to be pretty commited to be in the business thru all the ups and downs, good and bad times.

Answer 7

A large number of my friends are restaurant owners. Here is the thing: If you are ready to completely dedicate your life to this business for 3-5 years, you can probably make it provided your fare is conducive to your demographic. However, restaurant owners must be present in the restaurant alot, especially as it is getting off the ground. The hours and the work are hard. But, if you're passionate about it and are willing to forego vacations for awhile, go for it. It is a very satisfying business when people are happy with the service, but not so great when people complain. If you are not good with conflict (among staff, with the general public, etc.) then this is not a good idea for you because restaurants constantly have face time and it is inevitable that some people will complain because some people are not happy unless they complain. If you do it, set cleanliness and impeccable customer service as your top priorities. Offer someone a free meal sometimes, just to be nice. One of my best friends, who recently passed away, was a restaurant owner his whole life. He said that the secret was not in advertising but in giving freebies to people once in awhile. It made people happy and they said good things about the restaurant to other people who then decided to try it. It certainly worked to produce good will for him. If you go for it, good luck! It's a wonderful thing, and very hard work.

Answer 8

A restaurant is NOT a good investment these days...you have all the big chains in contention with you...open, maybe, a little pub where most of your income is derived from beer and alcohol, keeping it a clean, comfortable place that lacks trouble...on the side serve a few of your favorite dishes that can be prepared, frozen, microwaved and maybe put through some sort of toaster oven (commercial) or small pizza oven....there will be more money for you then and get good staff.

Answer 9

If I were you I wouldn't.

Reason being that you haven't through it out. You want a restaurant because it seems like the thing to do, not because you love a certain type of cuisine, or see huge market potential for a specific food.

Until you think it through more, don't even try to go through with it.

Answer 10

If you plan to open a restaurant that is, new different and currently not available within a few miles, yes, open one. If you're going to copy what is already open, don't bother.