U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Economics > Business
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-06-2013, 06:22 AM
 
Location: San Francisco
48 posts, read 95,729 times
Reputation: 27

Advertisements

Restaurant business is a risky business to start with, It really depends on your marketing skills and the amounts of sales you generate. Before starting a new business you should do its cost & benefit analysis and its pro cons.
Reply With Quote Quick reply to this message

 
Old 11-06-2013, 07:41 AM
 
11,849 posts, read 13,743,441 times
Reputation: 17308
Quote:
Originally Posted by Ryaan View Post
Restaurant business is a risky business to start with, It really depends on your marketing skills and the amounts of sales you generate. Before starting a new business you should do its cost & benefit analysis and its pro cons.

I love restaurants........that being said it would scare me to death to actually own one!

1. Rent never goes away, 6K a month (rent, cam fee) is $200 a day....so selling $10 pizzas means I have to sell my first 20 pizzas to just cover the rent.....everyday, 365 days a year!
2. Cash is disappearing.....Pizzeria in years past may have been a gold mine but today everyone wants to use a debit card/credit card and the "cash" is disappearing from the register.
3. Food is as expensive as ever and then you have to throw out your inventory when it spoils!
4. Fast food/chains kill your margin. I talked to a buddy that owns a couple pizzerias. One store rocks, the other is marginal. A Little Caesars just opened within view of his marginal store. They sell large pepperoni pizzas for $5.55, ready to go in the hot oven rack. Tough to compete when the competition is giving the product away! He expects to close the marginal store when the lease is up. The rent is too high and there are several pizza stores in the area.


That being said, I heard that a local Dunkin Donuts does $7000 a day in sales in one store before noon! It is surrounded by businesses, on a very busy street and 7K a day must leave plenty of profit since most of the sales is coffee related!
Reply With Quote Quick reply to this message
 
Old 11-07-2013, 02:09 AM
 
Location: San Francisco
48 posts, read 95,729 times
Reputation: 27
Quote:
Originally Posted by City Guy997S View Post
I love restaurants........that being said it would scare me to death to actually own one!

1. Rent never goes away, 6K a month (rent, cam fee) is $200 a day....so selling $10 pizzas means I have to sell my first 20 pizzas to just cover the rent.....everyday, 365 days a year!
2. Cash is disappearing.....Pizzeria in years past may have been a gold mine but today everyone wants to use a debit card/credit card and the "cash" is disappearing from the register.
3. Food is as expensive as ever and then you have to throw out your inventory when it spoils!
4. Fast food/chains kill your margin. I talked to a buddy that owns a couple pizzerias. One store rocks, the other is marginal. A Little Caesars just opened within view of his marginal store. They sell large pepperoni pizzas for $5.55, ready to go in the hot oven rack. Tough to compete when the competition is giving the product away! He expects to close the marginal store when the lease is up. The rent is too high and there are several pizza stores in the area.


That being said, I heard that a local Dunkin Donuts does $7000 a day in sales in one store before noon! It is surrounded by businesses, on a very busy street and 7K a day must leave plenty of profit since most of the sales is coffee related!
These are exactly the things you need to consider before opening a restaurant. The risk is too high with very little profit going in your pocket. As you mentioned above the start up cost is also too high.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Business
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top