Owning A Restaurant

Owning a Restaurant

The restaurant industry is an exciting, fast paced, profitable industry; so owning a restaurant business can be extremely fulfilling. First of all, owners have the potential to make good money while being their own boss. Secondly, owners get to meet many different people in the community and have the opportunity to gain respect and develop leadership skills that few jobs can offer. Plus, boredom is a rarity. Everyday brings new challenges and opportunities to grow and improve.

When contemplating owning a restaurant, there are many factors to consider. Making sure that family members are on board is very important. Owning a restaurant will take significant capital and time, so you are better off having your family’s blessing from the start. Other factors to consider is who will manage the day-to-day operations ranging from employees, accounting, food vendors, payroll, cooking, and cleaning. Also, any education you can find on improving management, operating systems, and marketing will pay off for your business in the long run, so don’t forget to invest in yourself as much as you can afford before even owning a restaurant. If you already own a restaurant, it’s never time to stop learning so wherever you are in your journey keep reading books, attending conferences such as National Restaurant Association events, as well as taking courses online or in a local school.

3 Ways to Go About Owning a Restaurant:

Pros:

The concept has been established and proven, so a new restaurant owner can have a good idea of what to expect in regards to future performance. The new owner also has the opportunity to improve on these numbers even further. Also, the previous owner typically offers training for the new owner to learn the proven operating systems. There may also be a chance to negotiate some owner financing.

Cons:

A profitable business will have a higher price tag, because of the established customer base, gross sales, and cash flow.

Other Considerations:

The new owner will have to take over the existing lease that is in place, which could be either good or bad depending on the conditions.

Pros:

This is a cost effective option to get up and running quickly at sometimes more than half the cost. The furniture, fixtures, and equipment included in the sale will be a fraction of the cost of buying new and a build-out has already been done. The new owner can make some tweaks to the current set-up for a lower cost and less time. There may also be a chance to negotiate some owner financing.

Cons:

Obviously something was not working out for the previous owner. It was either a problem with the product/concept, the operations, and/or the current employees, so there will have to be a fresh start with changes.

Other Considerations:

The new owner will have to take over the existing lease that is in place, which could be either good or bad depending on the conditions.

Pros:

The new owner can start fresh and negotiate a new lease. Also, the space can be designed and built-out exactly how the new owner wants.

Cons:

There may or may not be restaurant equipment in place such as a grease trap, ansul system, or 3 phase power. There may be more work to be done on building out the space as well. These things will take significant money and time to get up and running and everything up to code.

To begin your journey to owning a restaurant,click HERE to start your search for restaurant businesses for sale, restaurant property for sale and restaurant space for lease.