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My advice on how to open a restaurant...
first consider the facts:
1. 30-40% of all restaurants fail within the first year.
2. It is a year around job, you are never truly "off"
3. food cost approx. 30%
Labor cost approx. 25%
Overhead approx. 20%
maintenance approx. 5%
Etc........
Lets do the math...if your restaurant brings in $30,000 a month(which is really good for a small privately owned spot) once you take out the previously stated amounts above, you are left with about $6,000. Well did you pay the loan payment this month? how's your oven working? Did you pay for your hoods to be cleaned? when all is said and done, you are there seven days a week, stressing out, making about $196 a day, if nothing breaks and business is good...on a good night, your servers might be willing to give you a loan.
so the best way to start a restaurant: Don't!
Learn more about this author, Pouria Amiri.
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