if you could start over....

At the National BBQ Show, when we talk about this very subject, it's almost unanimously said that they would prefer to build a successful catering business instead of owning a restaurant.

SmokinOkie...
Was there any discussion why not a restaurant that you might share? You may realize I am new at the restaurant business and am wondering why I made this mistake . I also wonder if someone told me these things before I got into it would I have listened!

Bodacious BBQ....
I just opened my takeout Sept 17th and don't feel qualified to make a comment one way or the other. I do think getting ready was the biggest hassle and now that I have learned a lot of how to prepare and hold foods in an efficient manner I feel that I am over the major hump. Now it is a matter of survival while the business grows big enough to show a profit, which I think may be happening now.

I orginally was going to do fairs and events but this prime location showed up at a very reasonable cost. I have no expereince doing fairs and events but I have heard they are very very hard work. I think I am to old for that and wondering if I am to old to be starting a new business! But I am here and there isn't much chance backing out now! I just am not sure if I would do it again had I the choice, however I do know I would do it differently.

first thing comes to mind......why did i open my own place? for me, its cause i was tired of being told what to do by snot nose brats that dont have a clue what we're all about. its not about money.....its about the people, who come back and say things like "man, that was the best i ever had" or " i couldnt wait to get back to town and come here and eat". its about becoming a part of people's lives and hearing all their stories and watching their kids grow. its about the boy down the street who got locked out after school and needs a place to keep warm, and hot food in his belly, or the couple sitting there enjoying a meal, making memories they will cherish when they grow old....
nah, money isnt even the issue.
i dont think i would enjoy serving up people on a one-time basis.. too boring.

Hey coffee,

I know what you mean about the feelings you get. Iwas was a wedding dj for 5 years and it was THE MOST fulfilling job I ever had because of the people and I was the owner of my own business.

That said, money is a very real concern of mine. Currently I make what some would say is VERY good money, and so does my wife, but we also have 2 1/2 year old twin girls who need to be provided for.

In any event, I too, love the satisfaction I get from providing people with a meal that they really enjoy.

Bodacious....The concerns that you expressed are very valid ones. Having been faced with the same choices some 10 years ago I decided mobile was the way to go and here's why.
If you open a restaurant the start up equipment costs are staggering, competition is fierce,you're at risk if you pick the wrong location and you're locked into a lease (or the city might decide to put a freeway or subway down your street or change the zoning in which case you're screwed)In addition, there are permits, inspections,overhead, staffing, uniforms, and fixed hours of business. According to statistics I just read two out of three new restaurants fail within the first year. How do you like the restaurant business so far?
My second choice was conventional party or business meeting catering but there again the start up costs become a major issue. you will need expensive fancy silver chaffing dishes and serving trays, china plates & silverware, tablecloths, uniforms, table & chairs, and vehicles and equipment for delivery of hot food. Oh yes, and don't forget the commissary you will need to prepare the hot food. (like a restaurant kichen)
So my choice to go mobile was an easy one. For 30K I had a fully equiped mobile kitchen with serving doors on three sides ready to go to work. No location risk, no commissary, limited menu, and in fact none of the above negatives. Originally I had planned to do as you mentioned...special events, fairs, auto races, etc. but I got sidetracked by the film industry and their need for mobile catering and that's what I've been doing since day one. No regrets! It's damn hard work and long hours but I decide when, where, and if I want to work and the profit margine is significantly higher than the other two options.
One last thing...I suggest that you avoid a partnership arrangement at all costs. One partner will get the short end of the stick and there will be difference of opinion fom business decisions, business responsibilities, to different work ethics which will result in hard feelings. Sorry about the length of this post. Best advice?...Find A Need And Fill It!
CB

Well I have to throw my 2 cents in (and with our startup costs 2 cents are rather dear). After 2 years of deliberation we are purchasing a mobile trailer from trailer-tech and installing one sm100 and one fe100. We are going to do local competitions and catering and thankfully the superbowl is coming here which should put us over the hump (even though i dont like football and maintain that rugby is the only real men's game left).
our 3 year goal is to purchase a small place as a commisarry and do take out only from there. It will also give us a kitchen for canning our own sauce and generally keep the inspectors happy.
the upside to this is by having an fe100 we can do competitions which gives a ready made market to sell to catering customers and they will pay for what normally is a freebie.
also the portability cuts the risk of a stand alone business.
thanks for listening,
jack
2 Greyhounds....SMOKIN!!!!, Inc

As an 'ex' restauranteur, I think that you would stand a better chance of surviving if you went the catering/mobile route.
The overhead in a restaurant is what kills the business. The rent, taxes, employee benefits, etc. keep coming at you if youre serving customers or waiting for some to show up.
You really are at the mercy of the government and landlord, neither of which is 'on your side'.
As soon as you sign a lease, you are bound to your landlord, and the only way to break a lease - many times - is to claim personal bankruptcy.
It all sounds great before you open, but the fact is, most do not succeed in the restaurant business.

overhead is definitely a huge factor in a stand alone business. the lower the better, yet the lease should be as long as you can get. you dont want to build up the business then have the landlord yank it when the lease runs out. it should be at least a couple years longer than the estimated time it will take to pay back any loans.
taxes and employee cost can be removed simply by creating a 2 person unit (assuming spouse will participate). if i could start over, the only thing i would do different would be to rearrange for efficiency. my dawgs are killing me, but i guess that is a good problem.