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7 replies

Time for a change (Long, Sorry!)

FM Former Member
I am going to make a quick post and go back into lurk mode until I can get caught up. As per advice in this fine forum I am reading ALL the posts in the professional forum. I will work on others, but I needed to get my head around things first.

Like many others who posted and said I want to start a place and their thread count end at 5 or 6, guess their heart wasn't in it. I am doing that gut check right now. My background might better explain things.

I went right from HS into Culinary School worked my way up quickly in the kitchen and had a good career going in New England, when momma called and said help. A year before she bought a steak house in our hometown that had an excellent reputation. I advised her at the ripe age of 19 not to do it, she didn't know what she was getting into. Well 1/2 mil. and 4 years later she closed the door to become a statistic.

I worked around Hagerstown for several years as Chef de Cuisine or higher, but was unwilling to relocate my young family to the craziness of the city so I left the business. All in all I spent about 7 years full time in the kitchen, young and dumb I worked the place liked I owned it. Normally 80+ hours a week. Start at 9AM and get home after clean up around 11PM on weekdays, weekends added a couple hours.

I went to set behind a desk and run a beer distributorship that my father owned over the last 15 years, till we were bought out by one of the big boys. The way prisonchef feels about Sysco I share the same dislike for them. All about the $ never about the customer. Well that was a year ago, more or less. I refused an offer to work for them and set out to start a new career. But a culinary degree doesn't hold much weight in the business world and an old chef who hasn't manned a line for 15+ years is not attractive to step back into the kitchen.

I considered a franchise bbq joint. But $20k startup and 6% gross revenue, OUCH! That is not to cut the $'s they pull in from Sysco as kickback for selling their product.

A few years ago my wife and I started an ice cream shop until she needed back surgery. We were in our first year and I decided to close the doors, while I could survive losing money and had budgeted for that, losing her income and having to hire a manager in was just not good business sense. We closed the doors and kept the equipment for later.

So now I am contemplating a bbq restaurant. I know I have the ability to manage a restaurant. Though BBQ is an art in and of itself. We only have one BBQ in town and the are full service, but INCONSISTENT! Sometimes hot food, sometimes cold, sometimes tender other times tough as leather. But they stay busy.

Here is my initial thoughts for a place. If I did as advised catering, I am fairly certain I would need a commissary kitchen at the least. If I must equip a kitchen for production, why not do some quick service. I have the bead on space with high traffic volume but low rent. It would need built out.

I think I can negotiate the less to low cost per square below $5.00, aiming for $3 but tie in lease to sales. I would put a cap on it, say $11 a square if I hit a certain volume, but use a couple tiers to escalate. I do good so does my landlord, I approached him as some money is better than no money, he laughed and agreed.

I am slowly working through my business plan, yes a necessity. Had one on the Ice Cream shop. But YUCK, this is the reason I want out from behind the desk. Agreement with the wife is we get going she can do the paperwork.

Sorry for being so long. But any advice would be appreciated. Background I love BBQ, however, very limited experience. I really like the reviews people have given on both the CS and FEC. I am sure that is the route I will go, if and when I can put things together.

Thanks,
Henry
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FM Former Member
hdhouse3rd

I can identify with much of your post. I am not in any way, shape or form a chef, but I love to cook, and I love to bbq - and eat it! I have done freebie barbecue stuff for folks for years - mostly santa maria tri-tip, the low and slow barbecue is new to me. Just bought a used cs 250 recently and love it. I have been working on my business plan for about 4 months now. Just finished the food safety thing yesterday. I am planning on putting together a mobile kitchen/barbecue trailer. My hope is to use it for both money making ventures and volunteer work at church - fundraising for missions etc. I've been talking with health inspectors and the commissary issue is my biggest challenge right now. I'm not planning on a fixed location (restaurant), but almost need to in order to get the commissary nailed down. There are a lot of fly-by-by-night taco trucks around that have given the mobile food business a bad rep with the health department. So far I have found an RV storage place where I can park the unit, wash, dump gray water, and fill potable. I'm talking with a grocery store for possible food storage and hookup. The inspectors won't let me park at home, not even to hook up to power so the long cooks on the butts and briskets are yet to be figured out. I can cook at the commissary location or at the customers location, no where else. With my intent for the business to be part time it's hard to justify the expense for some of details involved in all this. I just wanted to make the payments on the trailer, use it to fundraise and enjoy the barbecue but I may have to jump into this with both feet yet!

I've added my 2cents with out any help for your situation, but .... Good Luck with your venture.

Jack
FM Former Member
Most of the ones I know say start out catering and develop a need for your product. That way, you're not out the initial cost of the restaurant, staff, etc. Build a following and they will come to you at the restaurant.

Business plan is a great idea.

Don't be a lurker, there's a LOT of good experience in restaurants here and don't hesitate to ask, they'll help

Good luck, keep us updated on the adventure!
FM Former Member
Henry,

This summer I was sort of moved out of Seattle, thank God. So I am now back where I went to high school decades ago. Sort of as a lark, I started looking at restaurant space and won't you know I came across perhaps the best facility for its size in Eastern Washington, definitely up here in the sticks.

The current owner, with 42 years in the business, only runs its 6 hours a day, 6 days a week and built is for his sons, who don't want to be in the business. He only wants to make $500 per day as a Italian trattoria in scale.

As you said I know have the management skills to run the place and slowly bring in the Q, but I have learned that these forums are worth more than you can begin to imagine, not only this one, but the ones further up the page.

So anyway next week, I will make an offer on the place and see what happens. But I don't think I would even give it a shot without knowing these great people were here, and that Cookshack equipment is the top of the line also.
FM Former Member
hdhouse3rd,
I can relate to some of what you are talking about,BUT I have been in the landscaping business pretty much my whole life, I love to BBQ, made my first smoker, bought a FEC about 3 years ago(which we love), we cater and compete on a very limted basics.
I would cater to build up a demand for your product, if it is good the word will spread, I feel you need to keep your over head as low as possable and build as the demand increases, not always the funnest way but will work in the long run. I built a concession trailer to cook in, took 2 years to build(worked on weekends) its payed for, beleive me if you have a big payment looking at you, that takes a lot of the fun out of it.
When we stated I knew pretty much nothing about cooking anything, you are miles ahead in this area, just build on what you know ,I'm sure you are not afraid to experiment and try different combinations and yes this is a great place to learn.
Sorry to say, but I have pretty much been a lucker too.
Is ther spell check here? I sure need it!!!!
FM Former Member
Well yesterday was a visit to the health dept. for questions. Just my luck not food people in, said to call early, but after 9 AM to talk with them. Yea, I knew that, but really just putting feelers out right now.

Business plan is grinding along.

Visited the only other bbq place in town tonight. The are full service, but started much the same way everyone is pointing at, do catering then migrate. I will make a separate post about the food in the Open Forum.

Had lunch with friend/possible future landlord. Seems even more receptive than before about leasing space to me. Maybe it helped I bought the lunch. Location sits on a corner with high traffic volume. If it makes sense it is a local corner, we use it to get North/South and East/West for South End of town. Sits about 2-3 miles from Shopping Mall on one side and Outlet Mall on another. So $100,000 question why is it available. Well, city did bypass so frontage on roads now below street level, however, could place sign a top roof at key vantage points.

The building has a large warehouse attached that friend uses for transload - rail to trailer. But massive office space, where I am thinking of taking over a portion. Across street is highest volume dipped ice cream, Hershey's in region also a Mom & Pop diner. Just down street is a chinese restaurant that seems to do well. So people are willing to stop there, but they need to know I exist. I have a good amount of space for parking.

Thought is and let me run it by those with more experience. Have a fully equipped trailer 1 or 2 smokers and etc. Like other here have. Use the building as commissary and bulk goods storage with re heat ability. Small line of equipment. Building could provide take out with a few tables inside, I will leave room in the design to expand if idea blossoms.

I know people are advising to stay away for any type of restaurant to start off. But I am also looking to maximize my dollars to start off.

As far as debt service, plan on using cash if I can get everything aligned properly. Most of my monthly expenses can be covered by my better half. It is a big gamble, but what is life without risk.

Cheers and thanks all for replying.

Henry
FM Former Member
Henry,

The thing to remember about high traffic volume is that it doesn't mean anything if you can't get real people out of their cars (SUV, truck, personal tank). I had a friend in Seattle who had a used book store, which he moved from a little neighborhood retail center to a high traffic place on a major arterial because he wasn't making enough money. His business at the new location lasted about a year. All the traffic volume was and is on there way to and from work. You couldn't get them out of their car if you gave away everything.

Having said that if your food is good, people will seek you out if they can get to your place, don't feel threatened in the parking lot, or have to walk 3 blocks etc.. One of the things I have learned through this whole thing is that most restaurants don't fail because they don't sell enough food, they fail because of poor management.

In real estate they say location, location, location. In business it is the business plan, the business plan, the business plan. You basically have to know what you want to do well enough that you carry it in your head 24/7. Once you get to that level, you can ask why is the place available, ask for advice, and ultimately you have to trust your gut and not rush into anything. All good things take time, and we are all an impatient lot, if it doesn't fit move on and take what you learned from the experience and stuff it into your brain's business plan.

Finally, proforma that everyone will tell you they need, you needed, etc., proforma are never right. Once you have a financial history, you will have a financial history of all that stuff, but that is not a proforma. That is what accountants do. What most people don't understand however, is that the upside is much more difficult to manage than the down side. Once you are up and running it is all about cash flow, cash flow, cash flow. You can ration the down side, but if you don't have enough cash available to keep everything moving along, things are going to suffer.

In the old days that is what you had a banker for. Today we don't have those type of people, we have employees who work for banks. To them it is credit score, credit score, and credit score. If you can find a real banker, court him more than you courted your wife.

All this you need to keep in mind, when you buy your first FEC or 150 on up to your show on the Food Network. Through all that if can remember why you got into this adventure in the first place and at least smile if not laugh at all your mistakes, you will be a success, that most people never venture to adventure Wink
FM Former Member
WOW, been nearly a month sine I first posted this. I looked at the property and while the rent was cheap because of a friend. I do not think it was right place for me right now.

So as I picked my youngest from college last month we were talking about the plans. He suggested I contact the local minor league ball team. Post holiday's I sent an email and we meet yesterday.

The GM was very interested in the idea, but suggested keeping it limited in both dates and menu. Set up to work weekend home games and special events. I suggested pruning menu down with the more limited dates, probably two menu items - "Pit" Beef Sandwiches and Smoked Turkey legs. Possibly a few sides.

The whopper is what he is looking for to allow me to set up, 30-35% of menu price. Now there would be no utility costs for me and think I can use the park my commissary. But running my numbers I would be break even, maybe be slightly ahead at a price that would sell. Is this a reasonable price to pay to get your name out?

As far as trailer concession, do people follow you? If I only work the stadium weekend home game and was set up somewhere else. 1) Would people be upset I might be there one Friday or Saturday night and the next? 2) If I Hotspotted my trailer by moving to different locations on different days but kept it all local would people follow?

I would love to run delivery from the trailer and set up for local online ordering. I know has been discussed but is this a crazy idea?

Thanks again,
Henry

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