Buying a restaurant. Scared and excited. Your thoughts

[Disabledveteran1]

Originally Posted by cupper3

One of my most successful clients in the restaurant business had his business model nailed.

He provided the space and equipment, and leased it out to operators, along with a large mark-up. He had the head lease, which required certain things to occur by the operator. Although not a franchise operation, he operated much like one, including that for the first five years of operation, supplies needed to be bought through him, at a large markup, of course.

He required a large deposit, and financed the rest. Invariably, the operator failed (I don't actually remember one who made the 5 years), and he started all over again with the next dreamer. My client did very well, the operators did not.

that's what I call thinking outside the box . People like your client are the ones who succeed, the ones who follow what millions of other people are doing hardly ever make it.

[oregonwoodsmoke]

Originally Posted by RonBurgandyHtown

........$130,000. ....... The owner is selling because he is not making money, ...........,
1. The head chef is getting $60,000/year + Assistant chef who gets $24,000/year. .........

I don't know that you will fail. Far too little information given here.

I do know that $130,000 is a lot for a business that just breaks even. You should only be paying the value of the used kitchen equipment. Again, that equipment is used and not worth anywhere near new prices. Some of what you see belongs to the landlord.

Some of that kitchen equipment can be outrageously expense, even when used, so go and price it out to get the value of the used equipment and the used tables and chairs and used bar equipment, some of which belongs to the liquor distributor.

Is the decorating good, or do you need to redo it and freshen it up? You don't want to pay for his old used tables and chairs if you are going to have to donate them to the thrift store.

I can't think of any reason why Indians won't buy Indian food catered. Maybe hook up with a wedding planner in the area. Don't neglect the community outside of the Indian neighborhoods. Indians aren't teh only people who like Indian food.

You aren't going to get a decent chef for under $60,000 a year. I don't know if that one is any good or not, but don't plan on replacing him for cheaper. Maybe a better chef will produce better food and help to bring in the customers; I have no idea without tasting what the current chef produces.

I occasionally cook a curry, and believe me, it is a lot more work than just stirring pots of curry. Also, in a restaurant, the chef has to make sure that the food is ready to get out to the customer on time and to oversee ordering so there is enough food and as little waste as possible. It's not an easy job.