AboutRick Dudasik Expertise I can answer questions relating to most areas of the restaurant industry including: starting a restaurant, design, food costing and pricing, site selection, staffing, training, equipment, profit and loss questions, sales training, recipies and many other areas of the industry. I have been in the industry for thirty years and have experience in fast food management, multi unit management, casual dinning management,and ownership. Have helped open over fifteen units throughout the United States.
Question Hello, my name is Matt and I'm a 24 yr old recent Colorado State University graduate who is contemplating opening a restaurant with a longtime friend. Basically what I want to know is, AM I CRAZY?! I've worked at a few restaurants and for a catering company in the past but that's the extent of my experience in the restaurant business. I have a degree in kinesiology (which I know is worthless in this field, but hey, its a college degree). I'm recently married and my wife is about to start a 40K/yr job as a registered dietician. I've always wanted to start my own restaurant but never really "seriously" considered it until now. My friend/partner is a marketing major, so he knows more about the business side of things, and my brother is an accountant who is willing to lend us some free council. That's about the extent of my realm of knowledge. What I really want to know is two things.....1)Is it feasible to start a restaurant without a huge amount of money already saved up in the bank (we only have a few thousand in savings right now as we are finishing paying off my wife's school loans)? And if that's possible, what's the best way to go about doing it (loans, silent investors, etc)? 2)Does one need years and years of experience managing an existing restaurant before they could open up their own, or can someone who is just a street-smart, people person with a great idea for a restaurant be successful with the right resources and people around them (i.e. a consultant, contractor, chef, etc..)? Sorry this is so long. I look forward to, and thank you in advance for your answer.
Answer Dear Matt,
YOUR CRAZY !!!
Just kidding.........but you need to know some things.
For a few thousand, you will not even get a hot dog cart outside of the courthouse.
You mention that you have a "concept" but don't say what it is.
A small "subway" type place can be opened for 12 - 15 thousand so long as there is no real cooking.
Any place that "cooks" Fryers, grills, hoods etc. will need $50 - 80 thousand.
In addition you will need at least a month of payroll as backup to pay employees as you will certainly not make a profit right out of the chute.
This industry is one of a few where "education" is not required to be sucessful. However hard work is 12 hour plus days6 days a week or more.
My advise is to start small.
Rent or lease a commercial kitchen from a church or lodge and run it for a few years.What you do is serve the members of the lodge or church and you have access to the kitchen to "cater" other events.
Without your own cash, you are very limited to what you can do. Banks are out of the question so friends and relatives are the normal way people get started.
Best of luck young sir, follow your dream but use caution.
