Why does every retard think they can successfully run a restaurant?
Shittiest industry there is, 80 hour work weeks for 6% avg net profit margin. Atleast ull get redpilled on how the average consumer is goy cattle that will glop down anything if its presented nice
>>61631658>hmm where do i want to buy my reheated sysco meal tonight..
>>61631543According to statistics, 80% of businesses fail within five years.
>>61631773Source: your ass
>2017Ha. It's worse now
>>61631543People are only aware of businesses they buy fromEveryone buys from restaurants so they're one of the first businesses the average retard thinks ofEveryone thinks if they can cook that's all they need to know to run a restaurantNobody realizes most restaurants are just tax losses on a real estate investmentPeople are stupid
>>61631658Oh and I forgot you have to put with karen costumers most of the time and the employees are by default dumb as niggers cuz the pay is shit
>>61631543Because it most closely resembles something most people do anyway (cooking) and there will always be a demand for it. You don't need a creative idea either. Plus, you don't have to be afraid of competing with the internet or AI.
>>61631864>Nobody realizes most restaurants are just tax losses on a real estate investmentLOLNOMost small restaurants rent their space from a strip mall or whatever. Nobody wakes up one day and says "I'm gonna quit my IT job and open a Fogo De Chao!"
>>61631543Because most think running a restaurant is "hoho me make-a da food, me sell-a da food hoho" >>61631943>Plus, you don't have to be afraid of competing with the internet or AI.Japan's already halfway there with their self automated ramen stores. Actually the idea of an automat seems cozy to me.
>>61631864>Nobody realizes most restaurants are just tax losses on a real estate investmentmax IQ to think it makes any sense to lose $200k on a restaurant business to offset ~20% taxes on $30-50k of annual rental income?
>>61631543Because we assume the state will not put concrete boots on us and throw us in the river.
>>61632110That's like saying frozen pizzas will end the restaurant sector
>>61631943> and there will always be a demand for it.this is not a given. eating out is actually a big luxury and are heading into tough times.
>>61631776The number that usually gets thrown around is 75%, but the core of what he's saying is correct. It's one of the first things you'll learn in business school.
>>61633173Yup. Most businesses are loss-making hobbies because the owners want to larp as good business knowing people. It's like the pressure then pulse model of species extinction events; they get squeezed because they compete on price and are terrified of putting prices up. Then a pulse event (unexpected high cost) lands and they fold, either because they took all the liquidity out of the business and spent it, or they couldn't make enough in the first place to do this>PE fag asset stripped a few distressed businesses in my time
>>61633164Fair, though that's not how restaurant starters think. And at least it's not a total guessing game whether people will want to eat nice food in the future. Restaurants haven't been closing at the same rate as physical stores.
>>61633228More money will probably move in the market, than exit the market entirely. People aren't going to go full hermit, they will either reduce how often they eat out, OR more likely migrate to more budget options. The same way cobblers boom in a recession; people don't stop using shoes they just spend less to repair shoes than buy a new pair. Budget restaurants could actually see an uptick as they gobble market share from the overpriced options
>>61631864>>61631543Retards think they can run it because they can fundamentally understand the mechanics. You buy the ingredients, you cook them, you put the slop on people's plates and people pay you for it. A retard does nearly all of this shit as part of basic self-sufficiency. That's a lot different than deciding you're going to make airplanes or hair dryers or something
>>61631543>retard learns that the system is set up to be so expensive with such low margins, ridiculous overhead, tons of bureaucratic paperwork, licenses, insurances, etc. that only large corporate entities can really afford to run a businessBut it's okay I'm sure the average person reading this story will conclude that there needs to be more government oversight.
>>61632126>$30-50k of annual rental incomelol. Lmao even.My restaurant pays me 15k a month + triple net in rent while my mortgage on that property is under 6k. It also bought me a car, pays for my phone and internet. Pays for a portion of my house and most of my utilities due to my home office. My grocery bill is non existent and I "pay" my two boys (7 and 10) 12k a year each completely tax free.
It's weird how so many people with zero restaurant experience want to open a restaurant. I've worked in restaurants for around 15 years, most of it in management, and I would never open a restaurant. Leave that shit to chefs who want to be in the kitchen every day that can charge $200/plate and institutional grade corporations with billions in backing that negotiate contracts at a national or at least regional scale so they can get their cost low enough to actually make money.
>>61631543my restaurant idea would make it big>gourmet nuggets for the upper class
>>61633493>triple net in rentWhat's this even supposed to mean?
>>61631543>>61633726I once worked in a restaurant that was financed by a wealthy engineer who had a full-time job and run by his wife.Neither understood the business at all but tried to hack it.They burned through executive chefs who bled them dry for pay but couldn't control their crew or keep a clean kitchen. The kitchen was disgusting.One of the most important attributes of a competent executive chef is that he keeps his kitchen spotless. If he doesn't know how to, he needs to directed by someone who knows what they're doing. If he just half-assedly sweeps at the end of the shift and there's a bunch of grease on every surface and old food left on the ground, the place is going to be CRAWLING with vermin in no time. I warned the owners about the kitchen. They didn't listen. I made a few efforts to clean it myself as someone who worked on the line. I saw some hideous sights, but my boss who ran the kitchen didn't give a fuck.Not all too much later, the Health Department came in on a Friday morning, right before the 2 busiest nights of the week where they make most of their money. It didn't end well.They had to close for at least 2 weeks and call to cancel tons of reservations. "It was a gas leak", if I remember right. Not many believed it.They spent a lot of money doing the bare minimum to reopen their doors, but they didn't fix the root issue. Months out, they'd have customers complaining that they saw mice running around in the dining area.This was all in an uber wealthy high-end market where rents are exorbitantly high, there are multiple restaurants competing for prime Friday and Saturday evening reservations, and every new food fad gets test piloted so you have to adapt quick with from scratch ingredients. You really need to have it together or it's an absolute trainwreck.
>>61634061Engineers are probably the wrong type of manager anyways, I bet a supply chain expert could make it work.
>>61631864>People are only aware of businesses they buy fromYeah I see this a lot with normies, they think only businesses they buy from are the ones that exist. They tell you to get a job at McDonalds or Wal Mart when you're job hunting because they shop there and saw a now hiring sign..... Must be the only place that exists for jobs!
>>61634075I'd never want to open a restaurant.Making a micro investment in a promising executive chef who knows exactly the who what where when and how of what he wants to do? Sure.Anything else? Way too much risk exposure.
>>61631663fucking thismight as well eat fast food
>>61633744Not a bad ideahttps://m.youtube.com/watch?v=RhF3k0_MFp8
>>61633858a good way to maximize the profitability of a small business like a restaurant is if you own the actual building and rent it out to your businessrequires some upfront capital thoif you have to run the business and pay rent to a stranger you are getting fucked hard
>>61634061Restaurants require a ton of moving parts to all sync up in real time and it takes real effort to do that. In addition there has to be a very meticulous approach to cost, labor, inventory, health codes, quipment maintenance etc. As FOH managers we walk the line with a chef or sous chef every shift and inspect both quality and temperatures as well as if stations are stocked. Most people only ever experience a very polished end product as a customer. Btw I skimmed the article the OP is from and this nigga says that since they only issued liquor licenses to people with relevant experience he did a handful of shifts doing half-ass prep work at some kitchen he didn't even bother trying to learn anything. The whole impetus for this was that he liked to cook dinner for his family of like 3 people including him.
>>61634152>>61631663It doesn't seem apparent either of you know this but Sysco, US Foods, etc. are just distributors and not producers. They are a middle-man operation in essence just scaled massively. Most the decisions that affect the quality of your food are made by the ones ordering it and what kind of quality they want and how much prep work they want to do. The rib eye you get at Chilli's and the rib eye you get at Ruth's Chris are not the same steak let alone in the same ballpark just because they use Sysco as a distributor.
>>61631912Don't forget niggers and/or pikeys who will steal
On one hand, people need to eat 2-3 times a day.On the other, it's one of the hardest industry to be in.
>>61631543Boomers worked their whole lives for 1 - 3 different employers, didn't socialize that much after college age, and were the "the customer is always right" generation.The point is they're out of touch. Not just on how to run a business, but how to interact with people who don't work for them and aren't their kids. Even if someone does work for you in a restaurant scenario, the service industry is so casual nothing stops them from quitting on the spot if you treat them too poorly.So a lot of them work whatever industry as a cog in a bigger machine for 30+ years, then blow it all on their first business. Their first business being the most notoriously risky venture with huge overhead, loads of drama, gigantic up front cost, and razor thin margins.To top it off, boomers don't really know food / restaurant experiences like other generations do. Millennials might have been stupid with their money, but they were very much the foodie generation. To most boomers, stuff like Tex-Mex is considered exotic.
>>61635993>it's one of the hardest industry to be in.*laughs in foodtruck making $200k a year*
>>61634061They don't realize a restaurant isn't a machine.If you can get it running like a machine, then you're golden. But a restaurant is a performance.Every aspect of it depends on how people are performing that day. Your chef needs to be on their game. FOH needs to be in a good mood. Stress levels need to be kept low. Drama needs to be avoided. Customers need to be made happy.Also, all of the actual work involved needs to be repeated every single day. The cleaning, the cooking, the set up, it's all daily routines done by hand. It's not like manufacturing a product that sits on a shelf and occasionally you sell one. Nor is it like a website or subscription service where you're selling online/over the phone.It's like putting on a play.A good director is going to run a better restaurant than an engineer.If you want to get into food as an engineer, then manufacture your own line of hot sauce or micro brews.If you desperately want people eating your cooking, then rent out a kitchen for prep work and run a food truck or cart.
>>61636074Food trucks are much easier to maintain, and the customer expectation is much lower, compared to a seated restaurant.But that's good for you, mang. Get it.
>>61632142it's not like that at allit's understandable you midwits still can't grasp what a neural network is yet
>>61636074Food truck is definitely the smarter route if you're about it for the food and not the experience.But do it around a heavy population center. The kind of place where you can just get a permit to park up on some street in a trendy neighborhood.Rural/suburban areas where you only see food trucks at explicit food truck festivals, or sad corpo lunch events, aren't the same. In these areas, it's pure novelty of ordering from a truck. In cities, food trucks have an obvious utility.
>>61632110The automat would only work in high trust areas though.Most of the US is not a high trust area, and the parts that are only are because they're too rural for nice restaurants.
>>61632087>Nobody wakes up one day and says "I'm gonna quit my IT job and open a Fogo De Chao!"My dad did... Family hasn't been the same since. I never thought or cared about inheritance until I watched them set it on fire.
>>61636139>>61635574>Nigger detected. Do not interfere with security operations.>ooga less fuggin go nigga>A lawful use of deadly force is authorized.>vrrrrrrrr-BRRRRRRRRRRRRRRRRRRR >shieeeeet-ACK>Have a nice day.
>>61631543most brick and mortar restaurants are bullshit slop drop serviced from restaurant depot THAT ISNT A FUCKING BUSINESS its fucking retarded as shit and even if your concept or idea is worth a damn mcdonalds and chipotle will steal it once you do the Rnd for them assuming you come up with something with market tam potential that converts heavily in your facebooks ads lmao
I forgot how is it called but there is like this thing very common in many touristy big cities where they don't even cook the food. They are not exactly franchises, I mean like totally different restaurants all of them buying the exact same prepared food from certain factories. They just heat it up and add some decoraiton or whatever and there you go. That way you don't even need to hire cooks.
>>61636160Happens quite often. I know a guy whose father decided to start a sports media and did all the wrong moves.
>>61637783Ghost kitchen, probably. I work for a company who sells restaurant equipment, and one of their biggest customers is a chain of ghost kitchens.
>>61639996"Ghost kitchens" are places that only sell via UberEats/DoorDash. Often it's a single kitchen that markets itself as half a dozen different "virtual restaurants" on these apps, so they might sell "Mr. Beast Burgers" as well as "Aoki's Sushi" and "Los Hermanos Pollos". Just reheat whatever someone orders and tell the wagie Dasher to drop it off on their front stairs.
>>61636094>>61634061goddamm how did artie bucco do it
>started as a foodie with a boring day job, married, and a house LOL, babys first challenge?
>photography>opening restaurants>probably also expensive bikes and suvs >...what else do these kinds of schmucks do generally lets see if we can find a pattern
Civies don't know how tough it isSemper fry
>>61631543they get overconfident in their food truck...its easy when you can just run over the people that complain and go to a different part of town
>>61631543It usually shows itself in celebrities, because they're usually the only ones with enough disposable cash to afford it.I spent ~27 years in the restaurant industry. On the plus side, it's the purest form of capitalism, you either make money or your go broke; but it's also a highly complex business which requires a very strict and very active form of management if you're going to make it a real success
own a bar in a major city, shit basically runs itself and prints money but the cost of the liquor license and rent is absurd. Food is basically an afterthought though, I don't know how real restaurants survive out here without the 10x markup on liquor
Owning a business is hard. You have to control costs and margins, and all sorts of risks. Is it worth working 40-60h a week?Otherwise you take zero risk as an employee, can make 4% on bonds, or 11% on passive S&P. Any extra effort or risk needs to exceed this
from the mde book
>>61643389>bar runs itself and prints moneyt. guy who definitely has never owned a bar
>>61643389>own a bar in a major cityYes I like the margins with bars. What is the toughest part of bar management?
>>61631543my dad always talked about having a restauranthe never even worked in one, but i did.
>>61631663I just buy from Mexican restaurants or taco trucks. Everything is made fresh
>>61636074I've owned a food truck for six years. Make roughly the same annually around 200k. I used to love working the 80+ hour weeks. Now I've stepped back and have a crew do a lot of the work and I'm only on weekends. Stressful but rewarding work as long as you care about what you're doing. I have one foot our the door at this point though and am ready to move to the next thing
>>61644298do not let the old man open a restaurant. not knowing the special kind of hell that are restaurants is a sure fire way of failing. except if he just wants to be the hands off owner and he has a lot of money (millions) to waste and several trustworthy experienced friends and chefs as friends then maybe maybe yes (no).
>>61631543Im thinking of starting a pizzeria because the area I moved to has horrible pizza. However, I've managed more than one pizza joint and have been in the biz for 20 plus years.
>>61631543>I was a foodieImagine being such a boring person that your most interesting hobbie is *eating.* Holy shit man. Like learn recorder or *anything.*
>goldstein
>>61631663>>61635105I work at US Foods (corporate, not a truck driver)Our stuff is better than Bitchco
>>61633493anon literally no one over the age of 12 believes a 100% markup on a commercial property. fix your life rather than telling lies on the internet. it's not too late.
>>61633493>>61646248also here's a bit of tax law to further disprove your mentally ill LARP.https://www.irs.gov/businesses/small-businesses-self-employed/family-employees
t. was thinkin about a food truck or restaurant before reading this thread
What a faggot cry baby! Just figure out economics and how the federal reserve works first faggot! I hate faggots like this! The fact faggots like this get laid and make God angry with their whiny faggotry!
>>61631543holy shit and in 2017. what a dweeb
>>61641885>literally need the mafia to help you if you open a restaurant.
>>61644376what about a bread and breakfast type place to just rent rooms run by retirees
>>61644359why not a fleet
>>61646260food trucks are kinda charming
>>61646254You are a jealous nitwit. The 12 is not wage but gift. Triple net likely means 3x mortgage. Nothing he says is out of bounds at all.
>>61646841>You are a jealous nitwit.i'm a CPA.>The 12 is not wage but giftit needs to be in exchange for actual work performed.>Triple net likely means 3x mortgageNNN refers to the tenant covering taxes, CAM, and insurance. these are nowhere close to 3x mortgage. a complete retard who isn't familiar with an incredibly basic leasing terminology is trying to lecture me?
>>61631658There's a few mexican places that sell food that is like, Goldan Coral pig slop, but decorated nicely. Covered in cheese, sour cream, and you get a massive amount of food. And it has loud annoying mexican music playing, it's all designed to make you think it's almost classy. It's extremely low quality shit and you can tell it's not fresh from the after taste of the meat. It's extremely popular. There's another Mexican place that has fresh food daily, actually real specials that are delicious. Everything is prepared exceptional. But because it's not pig slop covered in cheese it's not as popular. Which is fine by me. They make enough to stay open and it doesn't have long wait times. But it opened my eyes to how retarded people are.
>>61646248Nigger I own the building and the business I can charge whatever rent I want, besides its not even an exorbitant amount the area has grown rapidly since I bought the building over a decade ago, what I charge is barely on the high end of fair market.>>61646254Nothing in that document in any way contradicts what I said Mr. CPA. The children are employed in the business doing legitimate tasks and the amount I pay them means they don't owe any income tax. Since they are under 18 they don't have to pay unemployment or welfare taxes so the money is 100% tax free.
>>61633212>>PE fag asset stripped a few distressed businesses in my timewhats this
>>61636111What does that have to do with automated ramen stores?
Anyone have experience private cheffing? I've been a kitchen wagie at a sushi restaurant for over two years but I quit because they wouldn't give me a raise to above a fast food employee salary. I have capital to start a business I'm just unsure if it's worth a try.
>>61650165>Nigger I own the buildingwhoopsie, not much longer with this language. reported to the american FBI :)
>>61653470I have no idea about this business but I guess this could be a good idea. I also guess you need a reputation to start, though.maybe start with an ad in craigslist or whatever (ideally something more specialized but targetted to clients rather than industry) and mention having worked in that sushi restaurant for certain period of time (so that people will be able to do research about your work). maybe try finding high profile clients so that you will be able to get recommendations from the start.dunno what else to add. good luck anon.
>>61654992I'm heading to Japan in a week, I'll start using the social media account i created for my business to show what food I've eaten in Japan. I also found a ghost kitchen to do prep. Idk how else to get clients besides social media.
>>61653470just be a server bro
