So you want to open your own restaurant?
Many waiters, chefs, and others who share a delighted interest in gastronomy, often have dreams of opening a restaurant of their own -- or sharing a venture with a partner. Some soon to be restaurateurs decide to leave their big job in the corporate mill to go back to an earlier period in their life, a much simpler time, where they worked in the restaurant industry. So they take their savings and wholeheartedly decide, this is it, this is what I've always wanted to do, and they begin to scan local newspapers and commercial real estate listings in a variety of publications. Or they drive past the shell of an old restaurant on their way to work each day and dream about how they can make it: "That owner never knew what he was doing. With all of my business experience, I can really do a better job." Creative Chefs and General Managers, who have risen to an executive level within an operation, often have these same visions: "Why should I stay here? Not only am I bored with the same old, same old, everyday. I think I could really make an impact by opening my own restaurant."
I've met many of these people. Some have succeeded and others have not. Interestingly, the common denominator for all those that I have met who have succeeded can be reduced to one defining characteristic: passion. By definition, passion ranges from the obsolete word suffering, to an intense driving feeling or conviction about something, a goal that is undistinguished from reason. Restaurateurs, the good ones, all seem to have this kind of ethereal drive and when I meet with these often-animated stunners, they are literally bursting with a flood of ideas, painfully trying to contain themselves, where pathos prevails leading me to immediately want to help them. A restaurant is like a blank canvas or piece of clay, the medium for the restaurateur, ready to be turned into a sensational art form. And like all artists, restaurateurs must be fueled just like I've described -- to create, to choreograph, and to execute what ultimately ends up being a major production, requiring a lot of hard work and discipline, to promote food as the star.
There is nothing as wonderful, as marvelous, than to participate with an eager new owner in this synergism. My job, our job, as people who support these wonderful owners, is to make sure that the passion does not get lost in the process:
1. Think right. One of the pitfalls in the creation of a new restaurant is an obvious left and right brain dichotomy where the business head gets so tangled up in paper planning that it does not focus enough energy on the creative aspects of development. Restaurateurs often begin to construct elaborate business writings, pay someone for an evaluation of their marketplace, set up meetings with firms to secure financing, hire lawyers to review lease and/or purchase agreements with real estate agents, and begin to contact major equipment vendors with only a cursory sketch of what kind of restaurant they plan to create. Many times, prospective owners fail to find a chef-for-hire to develop some of their own basic menu ideas. Or they don't know how to go about finding a good architect or designer to aid them in the real development of their concept. The reality is that some skilled restaurateurs have started wonderful restaurants in concrete block basements, empty warehouses, kiosks on sidewalks, and even garages -- with simple, but wonderful menus and limited decor so that the focus remains on the food. What is on the menu, how it is presented and the related ambiance is the product that attracts patrons to restaurants. Finding a good chef and designer to assist in concept planning is the first step, unless, of course, you are a chef/designer yourself -- and they do exist.
2. Think slow. Being enthusiastic about your restaurant is fine. Obsessing about growing fast and being huge is not. Your restaurant venture should opt for a slow course of solid and steady development, so that it will grow roots, so that it will have longevity in your marketplace. The saying that, "Relationships that start with a bang usually end with a bang," applies. If you want to promote a relationship between your restaurant and your marketplace that is lasting, it takes hard work, a lot of personal attention and time. Same goes for the careful hiring and cultivation of your staff.
3. Think realistic. As a passionate first-time owner, you will likely be working 365 days a year, and thinking about your restaurant 24 hours a day. You must be prepared to work in every position in your restaurant, so that you can completely familiarize yourself with all of the nooks and crannies of your operation and until you can afford to hire and marshal a full house.
4. Think conservative. After you pay the startup costs and hire the best chef that you can afford with adequate support staff, you may find there is little money for much else. As the CEO of your restaurant, you must watch your cash and keep all expenditures to a minimum with an active eye towards good investment futures. Spending money on labor, for example, if business is not there to support it, is financial foolishness, but I've seen it happen everywhere. The restaurant should, at minimum, support itself, and ideally, support you, plus. Continually pumping your own money into the restaurant will only distort the restaurant's financial picture.
5. Think ahead. Personal cash reserves should be set aside to pay your salary and expenses for at least the first six months of operation, or the second six months -- in case you have a grand slam opening and then business tapers off, as it sometimes does. You should also have on hand a minimum of three months of projected revenues for lean times -- at all times.
Being a good restaurateur requires the total immersion of yourself into the operation, at least until success reigns and you can comfortably entrust your responsibilities to one of your subordinates and cheer from the sidelines. Without passion for your product, without enthusiasm for this business, without devotion to your staff and customers, and the zeal to reach your goals, all the business planning, paper agreements, operational checklists, and money, will not produce success.