Any restaurant / bar owners with advice???

6BangBronk

6BangBronk

Well-Known Member
Joined
Jul 15, 2005
Location
Durham
So the wife is an EXCELLENT cook and has hounded me for anything for years to get her started in some sort of restaurant. Well the opportunity is knocking in favor of both of us but on much a larger scale than I ever anticipated.
My aunt and uncle built a bar and grill in my home town and it boomed back in the day when I was a kid. They made a KILLIN and bought a mansion on a hill, sent 2 kids to college and much much more before selling it off to the second owners. Now the second owners have it for sale. It's been 20+ years since my aunt and uncle sold it so I'm thinking their opinion wouldn't amount to the same? But definitely worth asking them although I know their story well. They basically got tired of it since it grew way out of hand and they lived at the house next door (included and currently rented). 10+ acres included with creek, barns, shop, no neighbors and located 1/2 mile from the Interstate. Only down side is that it does not have sewer. So the bathrooms are a tad lacking. But most the food business goes out the drive thru anyways.

From what I have read from searching is that you work your ass off, you have to really structure for you don't have a pay day - but a constant money coming in and out daily and you don't get many days off unless you have really good help. And you become the most popular person in town (I know this all too well for my family). But good AND bad for I was unable to attend church without being pointed out for my family's beer sales. But I have a tremendous amount of family here that would love to see me take it over.

I currently own 6 acres (extremely secluded) on top of a large hill less than 1/8 mile up the road from this location that I have dreamed of putting a house on. It's entirely up hill one way and down the other so at least what little gas would be cut in half. :flipoff2:

I currently work like a dog as it is down here in RDU area so I'm used to that. 40+ at my day job and usually 3-4 hours nightly afterwards and usually one if not both days during the weekend. It's common for me to take time off to do another job. But 20 years in the same seat in a 10x12 office is starting to get smaller and smaller. Plus I don't think I can hang til my current ass of a boss at my day job retires if he ever does?

I actually never gave it much thought more than possibly a food trailer down here in RDU for the wife, but it's looking like a possibility here? And I can come up with the funds. We plan on ease dropping / visiting in the next couple of weeks just for her to see what's going on there. I was raised there / mowed the yard / jammed a many times there / and even my mom worked there from time to time so I kinda know it well although it has changed quite a bit since I moved away 22 years ago.

I've always dreamed of changing professions mid way through my work-life but never thought it would go this direction. I do have restaurant experience from my childhood days. And the wife has her bartender license here in NC and plenty of restaurant management experience. And my main reason of moving up there onto my land was to get away from all the hassles and bustles down here in RDU with a 45 minute to 1.5 hour commute one way depending on traffic as it is. But never thought I'd have the opportunity before I retired? I'm 43 now and looking at exactly 20 years (so far before it goes up).

I just know there's a lot of good personal info here and worth asking for some input. And I like how ya'll like to nit pick everything and usually see the unseen obvious in between the lines. :flipoff2:

One thing will change is that it will become a hot spot with discounts for anyone trailering or driving in a 4x4 buggy for it's centrally located in between several wheelin locations. There's a tremendous amount of parking and camping area. And the shop on the property is bigger than the one I have now. There's a very large yard to mow but I already have a L/S business with most everything needed besides probably trading in my mower for one a tad bigger.

So watcha got? I want to hear the good AND the bad!!!

:beer:
 
Sounds like a great opportunity. I've only been riding a desk for the past 5-6 years, but I'm already tired of it. I can't imagine doing this for 20/30/40 more years. I feel like I could live on a lot less if I spent more time at home.
 
Good luck is all I can say.

I have zero restaurant experience but everyone I know that owns one works their ass off all the time with limited margins.

I looked into owning several through the years (even put together several business plans and got the bank loans, etc) but it just didn't work out and I backed out last minute mostly due to lots of hours with little return.
 
My advice (as a small business owner, not related to food service) would be: If you don't know the business genre extremely well that you are looking to get into , hire someone that does that can manage and run the business end of things, even if it is just during the transitional period. My business mentor always told me " Doing the job is easy, running the business sucks"


Edit: And Good Luck!! If it is something you/her have wanted for a long period of time and you think you can swing it, go for it. YOLO
 
NC-V said:
My advice (as a small business owner, not related to food service) would be: If you don't know the business genre extremely well that you are looking to get into , hire someone that does that can manage and run the business end of things, even if it is just during the transitional period. My business mentor always told me " Doing the job is easy, running the business sucks"


Edit: And Good Luck!! If it is something you/her have wanted for a long period of time and you think you can swing it, go for it. YOLO
Click to expand...

I'd imagine the current owners would have to work an additional couple of months thrown in on the deal somehow???
 
I've got buddies that own restaurants and bars in the Greensboro area. The ones who worked hard and damn near live at the place do well. They've grown their businesses and have good management. I also have friends who bought a great place, didn't have enough experience, didn't hire people who did, and proceeded to lose their ass. The bar and restaurant game is as high risk as it gets in small business. Several of them went broke once before starting something that worked. Be prepared to be broke, know it's a real possibility, but you only live once. I bought my business in 2000, took a 40% pay cut, and signed on for $60k in debt. I was scared to death, but I'm glad I pulled the sack out and tried it. You'll never go past where you are now without risk.
 
Owning a restaurant is a ton of work. I managed a sub shop in college and it was a ton of work. It is a pretty low margin business. You will always be working also while the restaurant is open and when it is closed in one way or another unless you pay somebody a lot to manage the problems which takes money from your pocket.

Also 50% of restaurants fail in there first year (or something crazy high like that)
 
Only advice I have is to watch every season of Bar Rescue (it's on Spike). It will show you everything possible to do wrong in the food service industry.
 
I have 2 friends who own bar/restaurants in the Triad...
One is newer, been open two years... says he lost 90k last year... He runs a catering business out of the restaurant though that covers the losses.
The other just celebrated 4 years being open... He told me if I ever wanted to open a restaurant, call him and he will talk me out of it. There is money to be made, but finding good help is impossible.
 
Get the P an L report for the current restaurant. If the restaurant can pay the asking price in 5 years or less, then it's a ok deal. Find out why the new owners want to sell. Figure out a way to use the property to add more income, this will off set the lose the restaurant WILL take at times. Go with your gut! Does it feel like the right thing to do?? Lastly, and most importantly, do what the wife says!!!:beer:
 
I see alot of restaurant equipment auctions advertized.....read into that what you will
 
Talked with my uncle last night. Current owner has health issues and don't think he can keep going at it much more being the reason he wants to sell.

Uncle had a lot of interesting take on it though. Evidentially Unc sold it to the owner for prime amount 15 years ago when it was hopping. Even owner financed at a ridiculous rate. So that's how Unc came out smelling like a rose. But current owner let it run down. He let a lot of events go where as Unc and Aunt had something going on all the time. Current owner is asking a tad more than it's really currently worth. But understandable considering what he paid for it.

Discussing with wife, this is something we're going to have to really consider. There's a lot to hash out between us to see if this is us. We're even considering looking local again but with the cost of living here has driven up commercial prices like crazy.

Funny thing though, talked to my mom last night and she is selling her house and heading back to our hometown. She's retired and have been wanting to do that for a while. She said she'd definitely want to be part of it if we did it. So there's more reason for me to consider.

But the word now will get to the current owner that I'm interested so he won't be jumping to the first offer without talking to me first. Small town. I know the owner well. I have not talked to him yet. Kinda getting my ducks in a row first and soaking in all the info I can.

The area is mainly a retirement area now. Very slow growth but it is growing.
 
As someone who worked in the restaurant business for over 10 yrs and still know several owners in the Raleigh area, be prepared to have no life for the first 2-5yrs, then you will have very little life after. You will work every day the restaurant is open, work more hours than it is open, and stress every minute you own it. Finding good help with be tough and you will have to watch even the good ones closely or your profits will go out the window.

If this sounds like it is doable for you, then go for it. It is hard work, with 100+ hr work weeks the norm, but can be rewarding and profitable IF you are willing and able to put the necessary time in (just not in the first 2-5 yrs, typically).
 
Back
Top