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I currently work as a graphic designer and have been with my current company for 8 years...I am satisfied with my work, but feel that something is missing and might be looking for a change.
One of my hobbies is cooking and baking - I've taken many classes at a culinary institute and know many people in the business.
I know the restaurant business is murder - I have no desire to get into that. However, I've always been intrigued by the bakery/coffee shop idea - it's been in the back of my head for a couple of years now.
This spring, I was planning on taking a restaurant business class so I can learn some of the ins and outs, and I was going to look for a P/T job in a bakery so I could see how it all really works and if it's something I'd be interested in. I have absolutely no food or retail experience - all of my jobs, going back to high school, were all office-based.
In all seriousness, I don't think I'm ready for this type of situation just yet - but would I be missing out?? Could this be a great opportunity that I might be passing up? What would I be in for if we decided to go for it? I know there are long hours, hard work, etc...I'm not the kind of person who jumps on things and always plays it safe, but at the same time, I wouldn't want to regret the one chance I had at just going for something that could be great.
Also, if I did decide to do this, I would try to work out something with my company so that I could at least continue to work PT for a while to keep some sort of steady income going...
The way Starbucks is building, beware how you would operate if they opened in the same town. Here in Indy, they opened up two blocks away from a local coffee shop and that shop is struggling. They actually led to the closing of a busy bagel shop on a main street.
I would prefer a local store with good coffee, baked products and reading material.
I would check out the small business website, it is a .gov website I know. they may have some tips for you. You also will need a business plan, esp. if you plan on purchasing with a small business loan.
I would work at a bakery first to see if you like it. I used to through high school. I loved it and am a good pastry fanatic (eating) . To me going to a grocery store chain for your bakery is just a last resort. People that think that chain bakery is good (and that means starbucks), have never gone to a REALLY good bakery. I don't bake. Although I can, very well so people tell me, I just don't dig it. I like to cook better.
As a baker, I think it is very heavy work, and you get to work at like 2 in the morning to make everything. As most bakeries open at 6:00 or 7:00 am. Sounds like a cool business opportunity to me, I would position myself as something starbucks is not, like sell cupcakes or something that they don't. You will be taking on a juggernaut.
But it is a different business than graphic design, which I do, that's for sure.
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I would be cautious and work for someone else in that industry for awhile before owning. It is very tough.
I have disliked the pain and expense that I have seen in my one commercial tenant space with a deli. I have had 4 different operators in 6 yrs, and all but one went broke. The space is 4 doors from a 24x7 factory of over 1000 people without a cafeteria, (which used to provide $7 meal tickets to employees) and in a town that has grown 20% per yr. Over 50% of the revenue has come from catering, which is really the business to be in, as you have a fixed menu, qty, and schedule. (neighboring food service tenants have seen ~ 10 operators in 15 yrs). To watch these folks fail has been tragic. I would not put myself (or family) through that battle zone, tho we have done catering and helped friends who needed a hand. I have much respect for the folks trying to make a go in this business, whether they make it or not. Usually they are quirky and tough to deal with as tenants. (combination of stress, pride and artsy). There is probably a reason this place is for sale, ask a lot of questions of neighboring businesses, the land owner, and the competition. I doubt if you would be passing up a 'once in a lifetime' experience. There are lots of these places for sale, most are not signed or visibly marketed. Food service places are discounted ~ 50-75% from typical business prices, as food service is very dependent on the operator's social and culinary skills. (most businesses sell for as much as 100% of annual gross, tho there are many ways to value a business). NEW Equipment that has been installed brings 50% of new value, used equip ~ 10% of new value, don't let them 'oversell' this. It would be worth investigating just for the education, and to help solidify your future choices.
the food service business has the highest historical failure rate of any business.
So many people try and fail, try again, and keep at it until they succeed, only to maybe fail again. The attraction is that there's good money to be made ... but it's not easy money, by any stretch of the imagination. It's a lot of work, a lot of hours, a lot of management skills, sales and promo skills.
Culinary skills help, too ... but aren't the main factor ... I've seen a lot of financially successful restaurants that weren't worth a second visit for the food, but had a local market and steady trade (and we might even want to include some franchise fast food places on that list, but that's another thread).
I, too, have friends with commercial properties with restaurants/coffee shops, and they've never had a tenant last longer than a year. This is in a high-traffic resort town with almost no competition and an intense 9-month trade. The 3 months of slow season still has a loyal local population base that comes in for breakfast and lunch 5 days/week.
It's a quirky business to get the right "formula" at virtually any price point venture ... even the well known famous names in the business don't always succeed in this business, and they've got a lot more experience and history than you and many other have. True, too, there's a number of folks without any real understanding of the business who have hit upon the right formula and are making good money in spite of their best efforts.
This is an incredibly labor-intensive business. For anything much larger than a lunch cart, you'd better have a reliable supply of labor. I've seen major franchise burger chain restaurants in our area fail and permanently close because they couldn't adequately staff the place. If you can't find that labor for your anticipated needs, you'd best step back and re-assess whether or not it's a good move to even invest and open a food business.
Your approach to this by getting a hospitality business background is a good move to help assess your possible acquisition. Get the education and some practical time in the business on someone else's dime before you invest your own money.
Agree with those who say to get an education in the business.
I worked in it on some level for several years. The ones most likely to fail are the hobbyists who want to try it out.
It is a business, first and foremost, one with pretty slim profit margins and high overhead and costs. You have to approach it from a business perspective, not a baking one.
Had a neighbor once who was a wonderful martha stewart type of woman. friendly and a great cook. She started a catering business and was so good she was swamped. Then she decided to open a lunch room and was swamped. Opened for some dinners and was swamped. She gave it all up when her husband said to choose between the family and the business. She chose the business but the time was hell on the family.
Whether you fail or succed, it can be hell on the family unless all are involved.
Suggestion, also get to know your local operators. For example,here in Indy we have a new very successful baker, Renee's Bakery. He specializes in French products and according to an article, he has deliberately kept his business small so he can control it and build it gradually. I have seen him out promoting and he is doing quite well because no one else is doing what he does, he is great at marketing, he sells out what he makes, etc. good person to talk to.
But the business end is so very different from the creative end. The admin details a businessman has to deal with are incredible and expensive if you have to hire the talent. Usually these businesses are so small they cannot afford much prof. talent to help and have to be "it all".
Thank you so much everyone for your replies...I guess sometimes it helps to hear from others what we know in our heads but don't want to believe in our hearts.
A couple of additional thoughts:
1. If you do go into business, be sure to train someone as your back-up so you're not at the business 24/7. Also make sure your employees are cross-trained in case one is sick or quits. Labor is a challenge.
2. Try to find a unique angle. Ex. Google "cup cake bakery michigan" (can't remember the name, but it's very famous) or go to souppeddler.com or cater to local businesses whose employees don't have time to go out for a nutritious lunch. Read Seth Godin's Purple Cow to get ideas. And be sure to have budget for advertisement until word of mouth picks up.
See, that was one of the things that I thought was great about this place - it has an amazing location and is the only coffee shop in town...it already offers baked goods, sandwiches and paninis......it is well known, and has actually been mentioned in a few ski magazines as one of the best coffee shops in resort areas. This particular town has no fast food places (McDonald's was there for a few years but shut down due to a lack of business!!!) and is not open to them, so a Starbucks might not be well received.
But of course, a place can be amazing and everything, but that doesn't mean I wouldn't have to be there 15 hours a day.
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