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Restaurant start up plans

7,299 Views | 47 Replies | Last: 5 yr ago by bmc13
TheGreatScott12
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Doing research more out of interest on what all is needed/involved in starting a restaurant. Does anyone have any advice, good articles to share, or more importantly a good excel spreadsheet to help model out a business plan for a restaurant. Again this is more for fun/interest at this point, but I would love any help.

Thanks,
schmendeler
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i think the general advice when starting a restaurant is, don't do it.

but seriously.
TheGreatScott12
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I hear that too. As I stated above, this is more for personal interest. I work in finance and do not plan on quitting my job ever, but I enjoy the idea of crunching the numbers to see how it all could possibly work. Just looking for applicable tools on making that possible.

Thanks,
Matsui
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You need an investor partner.
agcrock2005
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TheGreatScott12 said:

I hear that too. As I stated above, this is more for personal interest. I work in finance and do not plan on quitting my job ever, but I enjoy the idea of crunching the numbers to see how it all could possibly work. Just looking for applicable tools on making that possible.
I could have written this post...
TheGreatScott12
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Matsui said:

You need an investor partner.
No I don't. I need a spreadsheet/model for building out a restaurant business model for my own personal enjoyment/interest.
aznaggiegirl07
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the menu is going to dictate everything about your restaurant...the storage, the kitchen layout, what equipment you are going to need,,

figure out your menu and what concept you wanna go with, then things will become easier
agcrock2005
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Quote:

No I don't. I need a spreadsheet/model for building out a restaurant business model for my own personal enjoyment/interest.
agcrock2005
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TheGreatScott12 said:

Matsui said:

You need an investor partner.
No I don't. I need a spreadsheet/model for building out a restaurant business model for my own personal enjoyment/interest.
Here's one I just found doing quick google search. Downloaded it and it's one spreadsheet with 4 tabs. Pretty basic and haven't had a chance to go through any of it, but thought I would pass along. I'm sure there's much better out there.

The 4 Financial Spreadsheets Your Restaurant Needs
aggiebq03+
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I would think what type of restaurant you plan to open will have a massive impact on your spreadsheet model.

You opening a franchise fast food place with lots of low wage, high turnover employees?

High end steak place that ages its own beef and has an inventory of high $$$$ wines?

Food truck that sells to neck beards?

Brew pub you plan to grow and sell to ABInBev?

Some major changes in inventory, location cost, employee cost, and sales price in there depending on what you plan to sell.
TheGreatScott12
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agcrock2005 said:

TheGreatScott12 said:

Matsui said:

You need an investor partner.
No I don't. I need a spreadsheet/model for building out a restaurant business model for my own personal enjoyment/interest.
Here's one I just found doing quick google search. Downloaded it and it's one spreadsheet with 4 tabs. Pretty basic and haven't had a chance to go through any of it, but thought I would pass along. I'm sure there's much better out there.

The 4 Financial Spreadsheets Your Restaurant Needs
Thanks! I also did some google searching, but didn't come up with anything great out of the ones I looked at. I'll give this one a look.
JCA1
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A little off target, but is anyone aware of any brewery following the vineyard model? With the explosion of craft beer, I could see a market for a craft brewery that grows its own hops/barley/etc. onsite like a vineyard grows its own grapes. Now, I admittedly have no idea what kind of acreage, climate, etc. this would require, but I could definitely see the craft beer crowd getting into a brewery that grows its own ingredients onsite and you can tour the fields before tasting, etc. Seems like that could potentially be an interesting idea.
lunchbox
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From talking to people that have been a part of fast food franchises, you want to get into something with very stable inventory. Subway is one example they always mention. Little Caesars is another.
Broncos
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Have decent food, good atmosphere, great staff. It's easy.
Koko Chingo
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Get a mentor from your local SCORE chapter. You can usually look through each mentors areas of expertise/experience. Some chapters have better websites than others. Some list every mentor with a picture and a bio. Others chapter websites simply say to call, with no other info available.

https://www.score.org/
diehard03
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Quote:

A little off target, but is anyone aware of any brewery following the vineyard model? With the explosion of craft beer, I could see a market for a craft brewery that grows its own hops/barley/etc. onsite like a vineyard grows its own grapes. Now, I admittedly have no idea what kind of acreage, climate, etc. this would require, but I could definitely see the craft beer crowd getting into a brewery that grows its own ingredients onsite and you can tour the fields before tasting, etc. Seems like that could potentially be an interesting idea.

I think there's a reason why you don't see it mainstream. First is simply that beer is not thought of as a vineyard thing, so people aren't desiring to go see grain in the field. They want to go to a bar and drink. Beer is known to be multi-ingredient and craft lovers know there are styles that accentuate the hops or the grain or the yeast, and many times these take a backseat to 1 particular ingredient. Wine is "single ingredient" in all forms and the whole "drinking wine in a field of grapes" just seems to make sense to us. Less so with beer.

now, the caveat is that CA and Oregon, with their very hop forward styles, do have vineyard like hop farms and it looks a lot like whole vineyard thing...except with beer. This works because people don't give a damn about the grain or the hops in those beers - they are just the canvas on which the hops do their thing.
Random Ag
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Kent Falls Brewing in CT is one doing this (or working towards this). And their beer is delicious
Ag_07
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Not really in the same realm as a vineyard model that's being discussed and not to derail this thread, but I talked with a buddy who is looking into investing in hydroponic hop growing.

With the popularity of craft brewing and in the increased demand for beer there is a shortage of hops. He says one big issue is that it takes hops something like 3 years to mature enough to be able to use in brewing, but if grown hydroponically it takes something like a matter of months.

He says it's becoming popular to grow hops indoors under laps or on rooftops with hydroponic systems. It's similar to how growing weed has become in CA where you can grow hops with particular characteristics and in much less time than growing them in the field.

That would be cool. A bar/brewery where there's a rooftop hops garden.

Ok...Now back to restaurants
biobioprof
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Ag_07 said:

Not really in the same realm as a vineyard model that's being discussed and not to derail this thread, but I talked with a buddy who is looking into investing in hydroponic hop growing.

With the popularity of craft brewing and in the increased demand for beer there is a shortage of hops. He says one big issue is that it takes hops something like 3 years to mature enough to be able to use in brewing, but if grown hydroponically it takes something like a matter of months.

He says it's becoming popular to grow hops indoors under laps or on rooftops with hydroponic systems. It's similar to how growing weed has become in CA where you can grow hops with particular characteristics and in much less time than growing them in the field.

That would be cool. A bar/brewery where there's a rooftop hops garden.

Ok...Now back to restaurants
I thought the indoor weed stuff was everywhere, not just CA. IIRC, buying the supplies to do this for non-weed purposes is unfortunately a good way to get the DEA to think you're growing weed.
aggieforester05
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do not do it, coming from someone who's owned both a successful and an unsuccessful restaurant. The latter was the biggest mistake of my life and the former was not worth the lifestyle, financial rollercoaster, and stress.

Put your money in real estate investments.
AlaskanAg99
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JCA1 said:

A little off target, but is anyone aware of any brewery following the vineyard model? With the explosion of craft beer, I could see a market for a craft brewery that grows its own hops/barley/etc. onsite like a vineyard grows its own grapes. Now, I admittedly have no idea what kind of acreage, climate, etc. this would require, but I could definitely see the craft beer crowd getting into a brewery that grows its own ingredients onsite and you can tour the fields before tasting, etc. Seems like that could potentially be an interesting idea.


Sierra Nevada had it's own barley field and did it's own killing, I'm not sure if they are still doing this. But a brewery would consume metric asstons more grain than they could grow without.being located in the Midwest. Then you have the issue of no one around to consume it....or pay trucking after it's kilned. It's not nearly the same relationship as wine to grapes. And hops are grown in a different climate than grain....for the most part.
aTm '99
FancyKetchup14
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Does bonfirewillburn still post around here? If I'm not mistaken he started a pizza place and has seen growth. Maybe he'll come along and provide insight.
cslifer
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My sister in law opened a brewery in North Carolina a couple of years ago. They grow their own hops but only use them in a couple of beers if I recall. They just don't have they time to mess with growing a very large crop. If owning a brewery is anything like a restaurant I wouldn't go near either of them. They seem like they work 25 hrs a day 8 days a week. It took over a year before they turned any sort of profit and the stress is unreal. If anyone is ever in Apex NC (RDU area) Check it out, Southern Peak Brewery. It is a pretty cool place.
PlanoAg98
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Quote:

No I don't. I need a spreadsheet/model for building out a restaurant business model for my own personal enjoyment/interest.
You need new hobbies.
Reload8098
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I've owned several conscience stores and a truck stop. Obviously not restaurants but some of my c-stores and the truck stop averaged over $60k a month in restaurant/deli sales.
One of my cousins owns a very successful micro brewery and they serve some pretty good food. They are rated 4.5*s on Yelp.
Despite their sales success they are just breaking even in year 3. This is when he reached out to me for my $.02 opinion. The things I was taught was:
- measure everything related to sales, margin and expenses
- you can get these variables with a little research. Obviously food cost as a % of sales, shrinkage, controllable expenses, wages/salaries, overtime, your well/bar margins/ratios. You have to have this down to a science.
- you need to have a couple of signature food items. This is the biggest thing my cousin is missing (IMO) he has good food but nothing like "they have the best tacos or the best nachos or the best chicken fried steak or kale salad or whatever, but you have to have a solid food lineup but a couple of signature items that knock the skin off the ball. From what I've seen of some friends that have done this successfully, food prep/execution bleeds over into the rest of their menu and all of their food options are better.
It's a tough business and requires a unique personality to be really successful. People with ADHD generally do well in the restaurant business because of the late hours, creativity, the ability to hyper focus during a rush and the constant change involved in the businesss.
If this is something you are considering take a part time job and work ~ 20hrs a week in the kitchen, learning how to manage food costs, wait staff, the bar etc. for about 6 months.
TheGreatScott12
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PlanoAg98 said:

Quote:

No I don't. I need a spreadsheet/model for building out a restaurant business model for my own personal enjoyment/interest.
You need new hobbies.
Thanks for your valuable contribution. I have other hobbies.
Keeper of The Spirits
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I always wonder how much longer the craft beer phase can last. The market is so saturated and my own anecdotal experience suggest that when people feel like they won't be judged for ordering a domestic light beer they will over a craft.
aggieforester05
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Keeper of The Spirits said:

I always wonder how much longer the craft beer phase can last. The market is so saturated and my own anecdotal experience suggest that when people feel like they won't be judged for ordering a domestic light beer they will over a craft.


I agree the market is saturated, but craft beer isn't going anywhere. Some of us don't like drinking watered down piss.
Reload8098
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The first time I built my BP I started with a BP software and then modified it to fit my needs.
"What country before ever existed a century and a half without a rebellion? And what country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance? Let them take arms. The remedy is to set them right as to facts, pardon and pacify them. What signify a few lives lost in a century or two? The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure." Thomas Jefferson
Keeper of The Spirits
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I have never tasted my piss, but assume it doesn't taste like Coors Light. I love the craft movement to sour instead of the bitter, that's way more tolerable to me
aggieforester05
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Keeper of The Spirits said:

I have never tasted my piss, but assume it doesn't taste like Coors Light. I love the craft movement to sour instead of the bitter, that's way more tolerable to me
That's one of the beautiful things about it. There's a huge variety out there for everyone's taste. People can still buy cheap crappy beer if they want, but now much better alternatives are readily available.
SACR
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aggieforester05 said:

Keeper of The Spirits said:

I always wonder how much longer the craft beer phase can last. The market is so saturated and my own anecdotal experience suggest that when people feel like they won't be judged for ordering a domestic light beer they will over a craft.


I agree the market is saturated, but craft beer isn't going anywhere. Some of us don't like drinking watered down piss.
Some people worry way too fu cking much about what other people are doing in their lives.

Why do you give a sh it what other people drink?

You know what's really good? Homemade ice cream. Several places sell their own homemade ice cream in their restaurant. I don't see anyone judging other people for enjoying a bowl of Blue Bell, though.
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aggieforester05
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Who said I'm judging anybody? Simply pointing out that craft beer isn't just a fad, there's a legitimate reason for it's surge in popularity. I don't care what other people drink. I'll drink it when it's all that's available or it's too hot outside to drink a heavy beer. Other times I'm glad I have a choice for something that is better quality.
bonfirewillburn
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Yea I'm still around, just not as often, restaurant life.

Many of the comments here are very true.

1) don't f-ing do it. You will lose your ass, family, friends. Seen it time and time again (20 years in this industry)

2) If that worked great, it's 100% true.

3) if (1) didn't work, realize that you are in the business of selling food. Its fickle, it's hot, long, tough as hell, and the margins suck. If you cannot glean energy from a happy customer AND have a very short memory for that impossible customer/ review you will never make it.

4) know what EVERYTHING costs. Someone drops a plate, you just lost $12 plus another $12 to replace it. Something is ALWAYS breaking.....(oh look my new vitaprep carafe ($108)just showed up - the 18 yo dishwasher is no longer allowed to touch this one.....)

5) figure out your market. Just because "x" type of food isn't in your area or doesn't mean that it is an opportunity....

6) if cooking is your hobby are your ready to give that up? You won't want to cook when you get home at 1am, and I rarely eat pizza anymore.

7) build a good relationship with your vendors (simple/basic knowledge) but they are your lifeblood. They will save your butt time and time again (My father '75 had a produce distribution company I remember alll the hot shots....)

8) it's a f-ing blast and I wouldn't trade it, beats being behind a desk every damn day.
bonfirewillburn
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Oh, OP I could sell you spreadsheet of your really interested.

"Restaurant Success by the Numbers" - Fields is a good start
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