| Many people have asked me over the years, | | | | next two years. If they say yes, find another |
| "what do you think Nick, I would like to open a | | | | location because your first two years in business |
| restaurant." I would reply, what do you know | | | | are crucial to your business surviving. You don't |
| about the restaurant business? Almost all of them | | | | want to start off broke. |
| said they knew nothing about the business but | | | | Consider what will be your menu. Will you be |
| they knew that they could make a lot of money | | | | serving full course meals in a casual dining |
| owning and running a restaurant. | | | | restaurant, or hot and cold sandwiches like in an |
| This is one of the biggest myths that have been | | | | art café restaurant? In other words, what type |
| circulating in the restaurant industry for years. | | | | of restaurant do you want to operate? A full |
| Okay, you don't have to know anything about | | | | service restaurant that serves steaks and |
| restaurant startup or buying a restaurant or | | | | seafood, is going to be a more difficult venture |
| restaurant food cost, but you can hire a | | | | because there's a lot of preparation to be done |
| restaurant guru who knows how, and he can hire | | | | like preparing salads, soups, entrees, etc. Whereas |
| employees, hire a bookkeeper and manage | | | | a restaurant that serves portion control meals like |
| everybody and everything. Voila! Now you're in | | | | hamburgers, hot dogs, hot and cold sandwiches, |
| business. This is great if you have a lot of money | | | | will have less preparation and its food cost will be |
| to spend like Donald Trump. But if you have the | | | | lower. |
| passion to get your hands dirty and operate it | | | | Just because you're a cook or a chef does not |
| yourself and maybe with a family member who is | | | | mean you're going to be a success in this |
| enthused about it as you are, then you must | | | | business. Make sure you have a good CPA and an |
| begin with "restaurant planning." | | | | attorney to take care of the business that you |
| You might think that opening a restaurant is an | | | | do not want to do yourself. After all, you are |
| easy task. Such thinking may account for the | | | | busy in the kitchen, bartending and greeting your |
| reason that so many people try to turn their | | | | guests. Bookkeeping and legal work should be |
| dreams into reality every year. But dreams can | | | | assigned to someone else you trust. I just said |
| become reality only for those who are willing to | | | | "trust". Keep that in mind. I had a successful |
| acknowledge that along with reality comes hard | | | | restaurant and bar business for 17 years that I |
| work! It takes hard work not only to run the new | | | | bought from my father. I was young and didn't |
| restaurant, but also to plan a successful new | | | | question my father's choice of a CPA because |
| venture. | | | | my father owned several restaurants, and that |
| The National Restaurant Association keeps no | | | | his CPA was his friend also. Lo and behold, after I |
| statistics but in some states like New York's | | | | took over the business, I was getting billed every |
| Restaurant Association reports that in their state | | | | month for a balance sheet fee that I didn't need. I |
| 75 percent of all restaurants fail or change | | | | was a small operation and didn't need this extra |
| ownership within five years of opening. Thus, | | | | expense. |
| many dreams are shattered, perhaps because | | | | Also, it's important to keep your operating |
| prospective restaurateurs are uninformed about | | | | expenses at a minimum. You're always going to |
| what they are getting themselves into. Many hear | | | | have your fixed operation expenses such as your |
| and believe only the myths about the restaurant | | | | electric and telephone bills, but other expenses like |
| industry. Somehow, the realities of the business | | | | advertising can be very costly. There are always |
| remain unexplained or ignored. | | | | salesmen that will be calling on you especially |
| First and foremost! Like they say in real estate. | | | | when they find out you're the new kid on the |
| Location, location, location. Do your homework. | | | | block. They will try to sell you snake oil, even |
| Research the demographics. Is your area a | | | | though it's not on the menu. Try advertising in |
| suitable location for your restaurant to be a | | | | your local newspaper if you are operating in a |
| success? | | | | suburb or village. Join your chamber of commerce |
| Planned construction and renovation. Call your local | | | | and get involved meeting other business people in |
| zoning commission, village, city or county and ask | | | | your town. Word of mouth is your best |
| them if there is going to be any planned | | | | advertising. Hope this helped. Good luck. |
| construction or renovation in your area for the | | | | |