Is it a crazy time to think about opening a retail Restaurant?

I'm not sure opening a restaurant in ANY time isn't crazy.

If you follow the restaurant industry publications, you've seen that over the past year or so the only sector doing well is the low cost, limited service type. Generally under $10-12 per person, but the lower you can get the check, the better off you'll be. $8 looks like a prime target if you can hit it consistently and maintain margins.

BBQ would usually fit well in this range if your local costs aren't too high. Do your usual homework and due diligence, then decide.

I've always been a value diner. I don't define "value" by what's cheapest though like a lot of people. But recently as I've had to tighten my financial belt, I've become more aware of the $2-2.50 iced teas and sodas, that just recently were $1. The menu looks great with items priced around $7-8 but lunch still costs $13-15 with tip. That gets a little costly these days for a daily expenditure. Make sure you have enough local business to keep it going if you don't get a high rate of daily return customers.

I don't know how much space you currently have, but around here there are a bunch of recently vacated franchise locations that catch my eye and make me do math in my head until I fall asleep. Having the walk-in's, hoods, sinks, electrical, and bathrooms already in place would sure make the decision to jump in less costly. Makes you go "hummmmmmm?"

Well I am back looking at this same question myself. In my case a defunct steak house, with real estate, in which the old owners spent a lot of money and only lasted 10 months. It is priced more than right and/but the former owners violated all of Todd's price rules, and tried that with a very limited menu (most of which I would only order once a year if at all.)

I would add try to look at the macro economy as best you can. Higher interest rates and inflation are knocking at the door, so try to use what you do to insulate the business from those effects. Then when they come, you can move with the changes instead of having them control your actions.

The key is location, location, location. If you are surrounded by restaurants then in my opinion you are wasting your time and money. Don't be caught up in the 'deal' and overlook where you are located and what the competition is doing. Try the restaurants in your general market area and talk to the owner or server and ask how business is going. If you think you can deliver a better meal for the same or less price then you might have a chance. Everyone is running real lean at the moment and they are probably in a better cash position with equipment being paid off so unless you go in with no loans and pay cash for everything you will be in a tough spot.

Interesting question.

Is there ever a Right time? Key is capitalization and having enough to weather the intial storm.

But I'll tell a story.

Ralph (Pink Flamingo's) lost his job and decided to open a Q restaurant in Fort Smith with his severance (and more of his $$$). Fort Smith had q restaurants, but not good ones.

He found a great little spot in a strip mall and now, over a year later, the crowds are STILL out the door.

It's location for walk in traffic, but word of mouth is important, so use your catering clientele and experience and go for it if you think so.

For the business plan, make it realistic, not optimistic, too many times they're overinflated to get $$$$ from the bank. But you have to live on the reality.

Russ