• Take 30 seconds to register your free account to access deals, post topics, and view exclusive content!

    Register Today

    Join the largest Oakley Forum on the web!

Man I'm shocked

Amen. Not to mention that start up restaurants have a high rate of failure, and even the successful ones typical net around 10% profit.
I think the figure is around maybe 10 percent of restaurants actually SUCCEED. It takes years to make your money back from the initial investment. The best bang for your buck in the restaurant industry is FRANCHISE. I know that sucks because people want something original, but the original places have too much competition to stay open. If YOUR restaurant loses money then YOU feel it. If a franchised restaurant loses money, the owner/operator doesn't feel it because the parent company does. Example..... My wife is Indian (dot not feather) and just about everyone in her family has opened and closed several businesses (the stereotypes are true). They all ended up franchising (opening a McDonalds/Dunkin Donuts/etc.) and let the parent company take their percentage off the top of their earnings, but in the end its a SAFER investment.
 
Ehh the hours sucked pay was great. I'd rather make less and see family and friends more
 
I think the figure is around maybe 10 percent of restaurants actually SUCCEED. It takes years to make your money back from the initial investment. The best bang for your buck in the restaurant industry is FRANCHISE. I know that sucks because people want something original, but the original places have too much competition to stay open. If YOUR restaurant loses money then YOU feel it. If a franchised restaurant loses money, the owner/operator doesn't feel it because the parent company does. Example..... My wife is Indian (dot not feather) and just about everyone in her family has opened and closed several businesses (the stereotypes are true). They all ended up franchising (opening a McDonalds/Dunkin Donuts/etc.) and let the parent company take their percentage off the top of their earnings, but in the end its a SAFER investment.

I agree - I worked for a restaurant corporation for 15 years, 11 of them as their MIS Director. Franchises are sweet.

But usually an industry standard P&L breakdown for a full service restaurant is 30% cost of goods, 30% labor, 30% other controllable & non-controllable expenses, 10% profit. When you're able to cut down the percentages of those costs, it helps the bottom line, obviously. But there is a minimum spend just to open the doors, and if you exceed those cost %s then it quickly turns into a losing proposition.
 
Back
Top