# Setting up a restaurant



## Jambo (Mar 23, 2006)

Anyone here run/manage a restaurant?

I'm looking to start one up myself and would like some realistic startup and ongoing figures, plus what is the best way to go about it.

I reckon about Ã‚Â£100,000 to get it up and running which includes first years rent on the property, lease, licenses, kitchen equipment, furniture, fixtures & fittings, inventory, advertising.

Budgeting for salaries is tough as I'm not sure if the staff could be paid with the 'profits' every month and I also have people who could work some days/night for basically nowt.

Is it realistic to continue ones day job as well or am I living on a different planet to all you folk? How did you get on with business loans? I hear some banks to special rates and repayment schemes to startup businesses as well?

Thanks in advance!


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## ag (Sep 12, 2002)

The questions you are asking imply that you don't have a great deal of experience in running a restaurant. If this is the case I suggest that you forget it. Running a restaurant is without any doubt an extremely skilled business. Very few ever make money. Running a restaurant is not a part time affair. The reality is that most restauranteurs work upwards of 70 hours per week. If you think you can rely on a few volunteer staff in a restaurant where the skill level is actually very high, do you think that hospitals could do the same. The first thing you need to be able to do is take on a good chef, and be able to replace him or her on their day off or when they are sick at 30 minutes notice, could you do that? And then replace them every 4 months? And have someone working for you that knows more about the business than you do? Even people that know what they are doing screw up frequently.

Any business is the employees, the suppliers and the customers. Not fixtures and fittings. This is especially true of a restaurant.

Good luck if you still want to do it, but don't expect to pay a chef every month out of the "profits" or you will spend every waking hour looking for a new one!


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## Jambo (Mar 23, 2006)

I don't have the foggiest how to run a restaurant, hence why I'm asking for some advice!

What I do have (all IMHO of course) is a good idea, willingness to take some risks, a hard working business ethic and perhaps most importantly a good location.

Plus, it's not a restaurant in your classical sense so the whole chef thing is not a major issue. The food being perpared and cooked I can all do myself, I just don't want to. Also, I have a USP in the area I want the restaurant and the food is just 50% of the experience.

I'm not sure what you mean by 'skill level' as well. This being the ability to listen while someone makes an order, writing it down, passing it to the kitchen then taking it out once it's done.

Yes, I agree about the business being the employees, supplies and customers but it's also about the atmosphere in the place, which is usually created _initially_ by the basics, i.e lighting, seating arrangements etc.


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## saint (Dec 6, 2002)

you ain't W33 JAM are you?


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## ag (Sep 12, 2002)

If the food isn't the main thing then by all means "have a go".



Jambo said:


> I'm not sure what you mean by 'skill level' as well. This being the ability to listen while someone makes an order, writing it down, passing it to the kitchen then taking it out once it's done.


Don't underestimate the need to do things correctly. I have lost count of the number of times that I haven't revisited an establishment because the waitress was poorly attired, or dirty or, worst of all, scratching her pubes! Don't forget that your employees are in a very real sense your shop window, good people don't work for peanuts.


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## dj c225 (Nov 3, 2004)

*Ag* has said it all, you cannot start this type of business with no experience, it cannot be a part time thing! otherwise for sure it will not succeed.

Is this a pipe dream? think carefully before you "waste" a lot of time and money


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## Jambo (Mar 23, 2006)

saint said:


> you ain't W33 JAM are you?


Nope.



ag said:


> Don't underestimate the need to do things correctly. I have lost count of the number of times that I haven't revisited an establishment because the waitress was poorly attired, or dirty or, worst of all, scratching her pubes! Don't forget that your employees are in a very real sense your shop window, good people don't work for peanuts.


I agree 100%. I wouldn't employ these sort of people for the simple reason that I would want people to come back and not have their experience ruined by a twat of a waiter/waitress.



dj c225 said:


> Ag has said it all, you cannot start this type of business with no experience, it cannot be a part time thing! otherwise for sure it will not succeed.
> 
> Is this a pipe dream? think carefully before you "waste" a lot of time and money


Isn't any business before it exists a pipedream? This is something that would no means be a part-time operation as I would be putting my all into it. The possibility of 70 hour weeks doesn't faze me at all. As long as it's needed for the restaurant to succeed, it will be done.

I just wanted to know if anyone here has done something similar so I can get an idea of the costs involved, timescales, where to get research from. This will enable me to potentially move it from "pipedream" to "reality" and if not, bin the idea and move on!


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## mighTy Tee (Jul 10, 2002)

I dont want to put you off, but I read sometime back that a major of new "food" businesses fail in the first 24 months.

If you believe you can be the 20% which suceed then put together a sound realistic business plan and go for it.

I wish you all the best in this venture


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## Guest (May 16, 2006)

There is the Small Business Loan Guarantee scheme run by your local Business Link (google it) where - off the top of my head you can be guaranteed the first Â£60,000 you need to get your business off the ground at about 2% interest, then after 2 years, you can get a further Â£190,000 (if needed). A family friend of mine went this route when he opened about 5 shops (all same but in different area) - worked really well for him so as long as you plan it well, you shouldnt have a problem with the costs. Also the busisness link provide free financial/start up help and arrange meetings with you etc....

choosing a bank to go with can save you Â£1000's aswell, from everyday transactions (usually 50p each card transaction etc) to your business cheques etc...

Id love to start my own business, but im only 21. Maybe in a few years, ill have the balls to go sort a business plan out......

dj c225 - i remember reading that you started your first business at 16, or am i thinking of someone else?

anyways, hope this helps you a bit  good luck!!!!!!

and when it opens - id like to visit :wink:


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## Jambo (Mar 23, 2006)

mighTy Tee said:


> I dont want to put you off, but I read sometime back that a major of new "food" businesses fail in the first 24 months.


I heard a similar statistic but you have to be willing to take a risk somewhere and I think I've spotted a need for this type of venture in this area so that's the first step. It's not just another Italian/Chinese/Indian type restaurant.



AndyRoo_TT said:


> There is the Small Business Loan Guarantee scheme run by your local Business Link (google it) where - off the top of my head you can be guaranteed the first Â£60,000 you need to get your business off the ground at about 2% interest, then after 2 years, you can get a further Â£190,000 (if needed). A family friend of mine went this route when he opened about 5 shops (all same but in different area) - worked really well for him so as long as you plan it well, you shouldnt have a problem with the costs. Also the busisness link provide free financial/start up help and arrange meetings with you etc....
> 
> choosing a bank to go with can save you Â£1000's aswell, from everyday transactions (usually 50p each card transaction etc) to your business cheques etc...
> 
> Id love to start my own business, but im only 21. Maybe in a few years, ill have the balls to go sort a business plan out......


Thanks for all the info, will look into this way of funding.

As for being too young, I'm also 21 but currently have two other businesses I want to launch this year/early next year. I don't honestly believe age comes into it. I think if you've got the right people around you to keep you grounded, a sound idea and 'The Hunger' you should be alright.

Just remember, a little cockney geezer who started selling fruit and veg out the back of a van he bought for a ton at just 16 is now the 71st richest guy in Britain, worth Â£800 million. You're fired...


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## mighTy Tee (Jul 10, 2002)

Jambo said:


> As for being too young, I'm also 21 but currently have two other businesses I want to launch this year/early next year. I don't honestly believe age comes into it. I think if you've got the right people around you to keep you grounded, a sound idea and 'The Hunger' you should be alright.
> 
> Just remember, a little cockney geezer who started selling fruit and veg out the back of a van he bought for a ton at just 16 is now the 71st richest guy in Britain, worth Â£800 million. You're fired...


I wish I had the knowledge and balls to do it when I was in my early 20s. I know several people who did and have made a success of it.


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## Jambo (Mar 23, 2006)

Well it's never too late, you can come in on one of my projects if you want... [smiley=deal2.gif] :wink:

I'm not of the ilk to go through life grinding away at my 9-5. Been doing it for 5 years and it bores the hell out of me, so I'm always looking for a way out and retire tomorrow on a beach and watch the zero's at the end of my swiss account grow longer   :roll:


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## NIIK_TT (May 7, 2002)

Some of the replies to this thread are typical to the the cynicism people have in the UK.

There are always 100 reasons not to do something !

If u feel strongly about it then do it !

You only have 1 life to live. As long as you work hard and are blessed with good decisions you could do very well.


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## Guest (May 17, 2006)

NIIK_TT said:


> You only have 1 life to live. As long as you work hard and are blessed with good decisions you could do very well.


but its these decisions that can decide whether you can make a good profit (and buy a Ferarri 360 F1 :wink: ) or whether you wasted Â£100k and declared bankrupt - I think this is what scares people...but not me: hopefully I will start my own business, as thats all ive been thinking about since i was 16. Even if it only pays my current wage, its the fact that you are your own boss.... 

do you have any tips NIIK_TT?


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## Jambo (Mar 23, 2006)

NIIK_TT, I agree with you but the more advice I get the better. Even if it's perceived as negative/cynical, it can do no harm as it can be used as a reality check as well.

Judging by your attitude (and motor :wink it's obvious you've got the right idea.


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## dj c225 (Nov 3, 2004)

AndyRoo_TT said:


> Id love to start my own business, but im only 21. Maybe in a few years, ill have the balls to go sort a business plan out......
> 
> dj c225 - i remember reading that you started your first business at 16, or am i thinking of someone else?


Yes you are correct, started my first business at the age of 16 when I was still at school, cashed in a year later, started something else, left school and went on from there. Passion and drive. btw now nearly 22.

Never regretted it, worked very hard at the start, but I can tell you it pays off and I have no boss to answer to, infact I have never had a boss. :lol:

I started with nothing, working from my bedroom in my parents house - struggled, a lot of 'business' people had no time for me or respect, this is no longer the case. Now I have a 'worth', cars, 2xflats and I'm happy.

In my short time I have made some f*ck ups, but this is part of life and you quickly learn from the mistakes made.

I never planned any of my businesses, I just got the idea into my head and gone into it, detailed planning in my opinion is a waste of time, I have known of people spending 6 months planning businesses and then screwing up...

If you do decide to start a business, do it correctly, don't cut corners.

Don't forget our good friends at the VAT office, etc... 

All the best,
Must sleep.


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## r1 (Oct 31, 2002)

Typical restaurants take 3 years to make a return on initial investment. I'd hazard a guess that Â£100k isn't enough capital to start with - any way you can raise more?

BTW DJ225 - what business are you in?


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## Jambo (Mar 23, 2006)

r1 said:


> Typical restaurants take 3 years to make a return on initial investment. I'd hazard a guess that Â£100k isn't enough capital to start with - any way you can raise more?


Thanks for that, I would have thought 12-18 months to make ROI. Need to revise the plan a wee bit then :roll:

I 'could' raise more but I'm not sure if it would be worth it. I've got two other projects which the initial investment in considerably less with ROI occuring within 6-12 months which in turn could give me the money needed for the restaurant.



dj c225 said:


> I never planned any of my businesses, I just got the idea into my head and gone into it, detailed planning in my opinion is a waste of time, I have known of people spending 6 months planning businesses and then screwing up...


I agree and disagree with you about just doing it and not getting bogged down with the planning. I think you NEED to plan at least the basics of your project otherwise you have no direction and going into anything blind is just reckless/crazy/stupid. On the flipside, you could spend months and months planning and the demand for your product/service/whatever wanes or someone else does it and you've missed the boat. Like a lot of things in life it's about finding a balance between the two.


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## itsallaboutmark (Mar 15, 2005)

Well this is turning into a interesting topic. Keep it up guys. Just watched a documentary about two guys starting up a "Creperie" business - very inspiring!


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## tj (May 7, 2002)

NIIK_TT
Your're right that some of the comments are negative and cautionary but he did ask for some advise and health warnings should also be welcome. It is high risk and even more so when you don't know really how the business works. If it is based on thinking you have a good location and little competition then this position invariably won't last and others will enter.


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## Jambo (Mar 23, 2006)

tj said:


> If it is based on thinking you have a good location and little competition then this position invariably won't last and others will enter.


Well yes I _think_ I have a good location and I _know_ I have no competition in the area.

It's a very unique thing I would be offering and tbh the food is not the main focus of the venture.

Like I said previously I welcome all kinds of comments even if they are perceived as negative so if anyone else has any advice come forward!

Out of interest tj (this is not a dig so don't read this in the wrong way), what experience have you got starting/running a restaurant?


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## Guest (May 19, 2006)

Jambo said:


> It's a very unique thing I would be offering and tbh the food is not the main focus of the venture.


is it the naked waitresses 

:wink:


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## Jambo (Mar 23, 2006)

Well I wanted it to be a surprise... :wink: :roll:


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## jampott (Sep 6, 2003)

Jambo said:


> Well I wanted it to be a surprise... :wink: :roll:


Careful of the H&S element. You need nubile young waitresses. Older ones may burn their nipples in the soup.


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## silkman (Jul 29, 2004)

Jambo said:
 

> It's a very unique thing I would be offering and tbh the food is not the main focus of the venture.


I've been involved in the past in (considering the) opening of a restaurant :roll:

I think that your comment above is a recipe for failure - food is 99% of the time always the main focus of the venture, IMO.

Unless you're going for the sex food idea that is (food with sexy names, shapes, etc) but then you need standup comedians for waiters/waitresses. They don't come cheap.

Even then, the food should taste good :wink:


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## Jambo (Mar 23, 2006)

Silkman, don't get me wrong, the food is important but it's not what's going to be bringing in the customers. That's the other 'unique' thing. The food is not going to be any worse or any better than other restaurants in the area serving the same food.

Like I said before, I could easily make the food myself in the kitchen I just don't want to and would prefer to manage the front-end and leave the chefs work to a chef. The food is quite simple and 80% could be prepared during the day to cut waiting time in the evening.


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