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re: Why would anyone in their right mind go into the Restaurant Biz?

Posted on 11/12/14 at 6:10 pm to
Posted by deltaland
Member since Mar 2011
90580 posts
Posted on 11/12/14 at 6:10 pm to
Why go into business at all? Statistically 71% of businesses fail within 10 years.

Can't make it big if you don't take risks. A piece of advice from my Great Grandfather...who was CEO of Riceland Foods, the largest rice co-op and grain processor in the world, and he also held stock in over 50 major corporations, was in the agricultural hall of fame, and owned a few small businesses along with serving under Pres. Eisenhower in the Dept. of Agriculture and was chairman of the board of directors of Bancorp South...he once said "never start a business with your own money...use somebody else's money".
Posted by KyleOrtonsMustache
Krystal Baller
Member since Jan 2008
4950 posts
Posted on 11/12/14 at 6:39 pm to
I've been owning a restaurant for 13 years now. I work a lot, but only because I enjoy it and the more I work the less I have to pay someone.

There have been scary moments financially but overall I'm doing alright considering. I make my own decisions and don't have to worry about some middle management SOB telling me what to do all day.

It's a helluva lot of work, from day to day operation, to bookwork payroll ect....and I don't recommend it to many people. It takes a different breed to be successful in this business. I happen to be of that breed.

In my experience most who do try aren't willing to make the sacrifice to be successful.

I'm married with 3 kids and they all spend a lot of time with me at work. So while I may work 50 hours a week I'll still see my family around 10-20 of those work hours.
This post was edited on 11/12/14 at 6:41 pm
Posted by tigersownall
Thibodaux
Member since Sep 2011
15316 posts
Posted on 11/12/14 at 6:42 pm to
Some can be successful. If you have something people want. They will buy it.
Posted by SwaggerCopter
H TINE HOL IT DINE
Member since Dec 2012
27230 posts
Posted on 11/12/14 at 6:43 pm to
The restaurant business is really fun. If you are really good at it, it doesn't even seem like work half the time. That said, I'm sure it gets REALLY old. Not to mention, that the average emotional maturity of your typical restaurant employee is extremely low for whatever reason, in my experience at least.
Posted by yurintroubl
Dallas, Tx.
Member since Apr 2008
30164 posts
Posted on 11/12/14 at 6:46 pm to
quote:

there is a reason most of them fail…the vast majority don't have any clue as to what it takes to be successful


I'm in the business at a GM level and agree completely. It sucks when an owner has the right people in place to make it work... then the owner sabotages things with some stupid personal whim he/she thinks will be great...and isn't.

REcent experience with one location on a serious uptick over the previous year since I took over... only to have him try to open not one, but TWO new places in the same year.

TITANIC
Posted by glassman
Next to the beer taps at Finn's
Member since Oct 2008
116108 posts
Posted on 11/12/14 at 6:49 pm to
quote:

REcent experience with one location on a serious uptick over the previous year since I took over... only to have him try to open not one, but TWO new places in the same year.


Hogs get slaughtered and pigs live on.
Posted by Reames239
Hammond
Member since Sep 2014
676 posts
Posted on 11/12/14 at 6:55 pm to
We know about your S corp brah
Posted by BT
North La
Member since Aug 2008
9766 posts
Posted on 11/12/14 at 7:00 pm to
I don't understand why it's so tough.

Seems to me of you have 3 things it's a no lose venture.
1)location
2)quality product
3)service

No particular order, just be spot on with all 3.
Posted by LSUsuperfresh
Member since Oct 2010
8331 posts
Posted on 11/12/14 at 7:00 pm to
My dad works at Riceland and I got a good buddy going into management at one of their facilities.
Posted by TheIndulger
Member since Sep 2011
19239 posts
Posted on 11/12/14 at 7:06 pm to
quote:

i'm just a very conservative financially person


And you have poor very grammar
Posted by Mariner
Mandeville, LA
Member since Jul 2009
1936 posts
Posted on 11/12/14 at 7:29 pm to
I worked in a new restaurant which was family owned. It takes dedication and is your life. You are there every day and you work when everyone else is having fun. You need several dedicated and reliable team members with certain specialties to be successful. A chef who can cook like a SOB will see the restaurant fail without a professional and experienced manager. You need a quality bartender who can be trusted.

I am sure all of us have been to a restaurant in one form or another which had great food but terrible service and presentation. Those places don't last or barely pay the bills.


Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
33925 posts
Posted on 11/12/14 at 7:41 pm to
quote:

with franchises you really have to own several to make decent money


They usually require you to open up multiple units. Royalties can be a bitch for sure.

quote:

Margins keep getting lower, thanks to pricing pressure from all the competition. Can only make money on volume.


All of the insurance that we have to carry is a big part of it as well. Now that it is cheaper to pay out than fight it is a free for all. It is a bad situation that needs to be taken care of. I believe if you sue wrongfully you should have to pay back the defendant's expenses. I can go on a long rant about how the patrons are their own worst enemies. They really are raising prices and ruining the quality of service.

quote:

REcent experience with one location on a serious uptick over the previous year since I took over... only to have him try to open not one, but TWO new places in the same year.


He's pulling a Twin Peaks/Boston Market with the army outpacing the supply lines. It takes a lot to find the right management team and get the store running smoothly let alone do it with two at the same time! Fellow GM here to btw.



Posted by damnedoldtigah
Middle of Louisiana
Member since Jan 2014
4275 posts
Posted on 11/12/14 at 7:42 pm to
No idea. Worked a restaurant between semesters during Summer of 1974. It was some of the hardest fricking work I ever did, because you did some of everything from waiting tables, to cooking, to sweeping the parking lot. All it paid in 1974 was $1.40 and tips.

My dad hired me in his construction business the following summer. Paid a hell of a lot better, and in a way actually wasn't as bad as restaurant work. Before anyone gets on my arse about the perks of being the owner's kid on the summer job, no - if anything he rode my arse harder than anyone else's. However, I will hand it to him, he whipped me into the best physical shape of my life that summer.
Posted by yurintroubl
Dallas, Tx.
Member since Apr 2008
30164 posts
Posted on 11/12/14 at 7:52 pm to
quote:

jmarto1



You the guy who had restaurant ties on the Northshore back when?

I get you and jroyce mixed up...
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
33925 posts
Posted on 11/12/14 at 8:18 pm to
Yea, my family had Ray's Bull Pen and my mother had Touch of Italy in Slidell.
Posted by yurintroubl
Dallas, Tx.
Member since Apr 2008
30164 posts
Posted on 11/12/14 at 8:19 pm to
quote:

Yea, my family had Ray's Bull Pen and my mother had Touch of Italy in Slidell.



OK. Didn't have y'all mixed up afterall.
Posted by jmarto1
Houma, LA/ Las Vegas, NV
Member since Mar 2008
33925 posts
Posted on 11/12/14 at 8:21 pm to
Now I'm at Hooters in Houma. The family business days are long behind me.
Posted by yurintroubl
Dallas, Tx.
Member since Apr 2008
30164 posts
Posted on 11/12/14 at 8:24 pm to
You were AWOL here for awhile...

There was a thread about a month ago where a guys was thinking about "treating himself" while he was in Vegas... Figured y'all should compare notes (unless that was jroyce's adventures).
Posted by CroakaBait
Gulf Coast of the Land Mass
Member since Nov 2013
3974 posts
Posted on 11/12/14 at 8:24 pm to
quote:

It definitely depends on the kind of restaurant as well. 

This. Overhead factors in big.
Posted by lsu480
Downtown Scottsdale
Member since Oct 2007
92876 posts
Posted on 11/12/14 at 8:26 pm to
quote:

The failure rate for any business is very low.



Right!
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