Advice for restaurants?

A CPA in Vermont told me to make sure you have enough tables so that you can really run the volume on Friday and Saturday nights. I like that. In any business, be ready to run the volume, emotionally, financially, that the fundamental idea is sound, that systems are in place, with coaching and leading a team, etc, etc.

I have also heard that it takes about a year to build up enough of a customer base to start making money. That I question. People are curious about a new restaurant, so much so that you may want a soft opening and then a publicized grand opening perhaps two weeks later.

I do agree that it might take longer than you think it does, and that under-capitalization is one of the biggest reasons for small business failure. And currently, I do not have enough money to open (or buy) a restaurant, so it's something for perhaps down the road.

I have worked in different Italian restaurants as a delivery driver, a cook, a waiter, but never as a manager. So, my idea is to delegate and hire a manager for the middle tasks. I will work some shifts as waiter, other shifts as cooks, both to stay connected and also to lead by example. Heck, I'll even clean the restrooms once a week (approximately my fair share), and that will really be leading by example. At the same time, I'll do the ownership tasks of promoting the business, scouting the competition, keeping up with industry trends, the very important tasks that are often neglected because so much time is eaten up by day-to-day management. And I'll spot check. Yeah, you need systems in place to keep honest people honest, and to make it difficult for dishonest people. But any static system can be beaten. It helps to have a curious owner who's poking his nose here and there.

Still, with all this, I understand it's an enormously difficult venture to actually make a profit at. And I'm not sure I understand why. It's a value-added business, price is always a consideration for customers, but it's not the primary consideration in picking a restaurant, so you do not find yourself directly competing with large corporations. You do, but it's in areas where corporations behave more awkwardly. You can almost compete advantageously. A corporation is like a large lumbering animal whose joints don't quite work right, and it occasionally falls over. I've seen some pretty poor management in restaurants, so I'm thinking, of course I can do better. Now, I'll probably make other mistakes. But as long as I start with enough money, I can get past the mistakes. (The only fatal mistake is running out of money.)

So, please talk to me. Tell me how to do it!

-Doug

Reply to
Doug
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  1. If you want to delegate and hire a manager for the middle tasks, why do you want to spend your time cleaning the bathroom? Delegate more of that and spend that time on middle or upper tasks.
  2. In my experience, leading by example doesn't work. I don't know why. But people have always been happy for me to do their jobs as I lead by example, and not learn from the example.
  3. The new restaurant I recently worked at was a four star restaurant in an affluent area, dynamite food, and is still struggling. As far as I can tell:

The chef-owner has a lot of experience and ability with food,

He started the restaurant will little capital (I don't know how much, but certainly not the way a few others have started recently. But, I do not think those other restaurants will EVER recoup their investment. Not EVER).

He hired a manager with a lot of experience in the high end restaurant business, in this area. But, perhaps he was past his prime. In any event, at some point the manager was let go and the chef owner spent a lot of time "learning" the middle management role, and getting things squared away. They were a mess. Lesson: don't count on just being able to hire this set of tasks away - be involved and know as much as the manager does. I always felt that you should be able to step into anyone's shoes, so you will know if they are doing their job, and will not be bamboozled by them.

He hired a bartender with a lot of experience. I don't know what his deal was, but I have a feeling it was too lucrative (for the bartender), again with the assumption that the chef owner could just let this happen and not have to worry about the bar. That bartender is gone, and new ones in place, who are experienced, but younger and most likely with a different deal.

He hired a sous chef who is not a sous chef. Maybe some day. But the sous chef is sure impressed with himself. He knows little about portion control, nothing about finance, and does not have a broad experience with food. He does what he does well, but that is by rote. I am sure he costs the chef owner less than a real sous chef would, but you get what you pay for.

I know nothing about restaurant finances, all I know is that I don't want to own or run a restaurant. The biggest problems at this restaurant are:

  1. not enough business. I don't know why.

  1. not enough income, so lots of scrimping going on. Paychecks are late. We have run out of garlic. We have run out of parchment. etc.

  2. not enough business, so not enough cooking going on. As an underling, I want to cook, not only prep. I don't mind prep, I got better at it, but cooking ZERO percent of what I prepped is no way to keep me around. Ditto for some others. I am sure turnover is to be expected, but it costs money. (on the other hand, turnover of bad, lazy, or self-impressed employees is a good thing . . .).

  1. everyone has different ideas, and a different set of instructions. We wasted a lot of expensive beef because our sous chef didn't understand meat. The Chef owner was relying on this guy, so for six months there was terrible waste.

I suggest you work more in restaurants, as you save up your money. Work in more and more capacities, and make lots of notes, talk to lots of foodies about all aspects of the business.

and, I like your idea of "spot checking". I call that "management by walking around".

Reply to
Gil Faver

"Gil Faver" >

sorry, not really tax related. Based on the subject matter, I thought I was in one of my food groups.

Doug, if you move this discussion elsewhere, please post so I can move along with you and watch the discussion. thanks.

========================================= MODERATOR'S COMMENT: Agree - this topic is closed

Reply to
Gil Faver

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