The most important and sole focus for you should be money..
How much do you have, how much will it take to open and market, how much will it cost to run and how much money will you lose/make?
You have to forecast cash flow for all scenarios..how much your fixed costs are, how much your margins will be..how much you need to break even. Get to break even, the sooner the better and make sure you are ready from the first day you open.
Ready means the place is in condition you will be proud of, employees are trained, marketing is going out, POS system in place, inventory system in place.
Know your labor and cost of sales numbers. The best recipes in the world cannot be discovered without proper profit and loss numbers in place.
If you do not have at least a years worth of funds to survive at FIXED costs then I dont think I would do it.
Fixed costs are of course costs which do not change irregardless of any sales. If you can cover your fixed costs for a period of time and focus on your business, then you increase your odds of success.
Also, see if you can talk down the owner of the property to give you better terms on the lease and pitch in to get the place ready to go..
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The most important and sole focus for you should be money..
How much do you have, how much will it take to open and market, how much will it cost to run and how much money will you lose/make?
You have to forecast cash flow for all scenarios..how much your fixed costs are, how much your margins will be..how much you need to break even. Get to break even, the sooner the better and make sure you are ready from the first day you open.
Ready means the place is in condition you will be proud of, employees are trained, marketing is going out, POS system in place, inventory system in place.
Know your labor and cost of sales numbers. The best recipes in the world cannot be discovered without proper profit and loss numbers in place.
If you do not have at least a years worth of funds to survive at FIXED costs then I dont think I would do it.
Fixed costs are of course costs which do not change irregardless of any sales. If you can cover your fixed costs for a period of time and focus on your business, then you increase your odds of success.
Also, see if you can talk down the owner of the property to give you better terms on the lease and pitch in to get the place ready to go..
Chris-there is a chain called Za's Italian cafe. In michigan and other Midwest states. Sounds like a similar concept. Check it out.
Sbarros failed with a model that sounds like what you are suggesting. Key difference is Chinese take out /fast food use low-cost not fresh ingredients and douses it in greasy sauce. Italian food made w low-cost shtty ingredients will not be desirable and you won't have many repeat customers. Lots of solid Italian places in NYC already you will get eaten alive literally and figuratively
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Chris-there is a chain called Za's Italian cafe. In michigan and other Midwest states. Sounds like a similar concept. Check it out.
Sbarros failed with a model that sounds like what you are suggesting. Key difference is Chinese take out /fast food use low-cost not fresh ingredients and douses it in greasy sauce. Italian food made w low-cost shtty ingredients will not be desirable and you won't have many repeat customers. Lots of solid Italian places in NYC already you will get eaten alive literally and figuratively
Another fixed cost that can be expensive is insurance. Will be required by the building owner. Liability exposure for Take-Out place obviously cheaper than Dine-In so that's good. Insurance Company will audit your receipts to help determine policy cost.
~~~~~ZOSO~~~~~
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Another fixed cost that can be expensive is insurance. Will be required by the building owner. Liability exposure for Take-Out place obviously cheaper than Dine-In so that's good. Insurance Company will audit your receipts to help determine policy cost.
Make sure to have a soft opening. Have a few nights where you serve a and act as if you are open. This will allow you to work out any kinks so that it doesn't reflect poorly towards your customer base. Maybe it would be a good idea to have small sample cups as well to maybe pass out at an evens or outside the front of the restaurant before you open officially.
I would personally not count on making Any profits for the first 6 months to a year. Make sure you have enough of your own money to pay employees and don't count on potential income you earn from the restaurant to pay your staff
Put together a report about your restaurant and your competition. This would include:
Strengths
Weaknesses
Opportunities
Threats.
Good luck
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Make sure to have a soft opening. Have a few nights where you serve a and act as if you are open. This will allow you to work out any kinks so that it doesn't reflect poorly towards your customer base. Maybe it would be a good idea to have small sample cups as well to maybe pass out at an evens or outside the front of the restaurant before you open officially.
I would personally not count on making Any profits for the first 6 months to a year. Make sure you have enough of your own money to pay employees and don't count on potential income you earn from the restaurant to pay your staff
Put together a report about your restaurant and your competition. This would include:
Another fixed cost that can be expensive is insurance. Will be required by the building owner. Liability exposure for Take-Out place obviously cheaper than Dine-In so that's good. Insurance Company will audit your receipts to help determine policy cost.
Goose,
Not disputing you. Never owned or ran a restaurant... First hand restaurant experience was working for a McDonald's in 78... Honest curiosity as to what insurance would be that is partially determined (cost wise) by a restaurant's receipts?
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Quote Originally Posted by TheGoldenGoose:
Another fixed cost that can be expensive is insurance. Will be required by the building owner. Liability exposure for Take-Out place obviously cheaper than Dine-In so that's good. Insurance Company will audit your receipts to help determine policy cost.
Goose,
Not disputing you. Never owned or ran a restaurant... First hand restaurant experience was working for a McDonald's in 78... Honest curiosity as to what insurance would be that is partially determined (cost wise) by a restaurant's receipts?
Not disputing you. Never owned or ran a restaurant... First hand restaurant experience was working for a McDonald's in 78... Honest curiosity as to what insurance would be that is partially determined (cost wise) by a restaurant's receipts?
Auditing receipts of a business is an accurate gauge for insurance companies to charge the correct premium. The more restaurant customers, the more exposure for the insurance company. For example, it wouldn't be fair for Chris to pay the same insurance premium as a similar restaurant doing twice the business.
~~~~~ZOSO~~~~~
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Quote Originally Posted by Randisist:
Goose,
Not disputing you. Never owned or ran a restaurant... First hand restaurant experience was working for a McDonald's in 78... Honest curiosity as to what insurance would be that is partially determined (cost wise) by a restaurant's receipts?
Auditing receipts of a business is an accurate gauge for insurance companies to charge the correct premium. The more restaurant customers, the more exposure for the insurance company. For example, it wouldn't be fair for Chris to pay the same insurance premium as a similar restaurant doing twice the business.
Have you went to Fazolis and taken notes? Obbiously they dont deliver, but they are " real italian real fast". I would read reviews for them and see what people DONT like....
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Have you went to Fazolis and taken notes? Obbiously they dont deliver, but they are " real italian real fast". I would read reviews for them and see what people DONT like....
Location is a major key to success, but be prepared to work long hours in the first year or two if you want to achieve that success.
Marketing your product is imperative as well. Offer weekly specials on a rotating basis, usually Monday's or Tuesday's....customers will like the variety.
Make sure you hire reliable delivery drivers, as nobody wants an upside down spaghetti dish with sauce all over the place.
Just a few tips off the top of my head.
Covers Referee
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Location is a major key to success, but be prepared to work long hours in the first year or two if you want to achieve that success.
Marketing your product is imperative as well. Offer weekly specials on a rotating basis, usually Monday's or Tuesday's....customers will like the variety.
Make sure you hire reliable delivery drivers, as nobody wants an upside down spaghetti dish with sauce all over the place.
I agree with bizkillas thoughts. Why did the previous business fail? I've seen tons of Chinese take out places open up in my area over the years, and I have yet to see one shut down. Chinese take out seems to be a highly profitable business, so I think even if their food was just mediocre, there's got to be another reason.
What are the three most important things in opening up a small business/restaurant? 1. location 2. location 3. location
I never really understood how important that statement was until I opened my business.
GL!
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I agree with bizkillas thoughts. Why did the previous business fail? I've seen tons of Chinese take out places open up in my area over the years, and I have yet to see one shut down. Chinese take out seems to be a highly profitable business, so I think even if their food was just mediocre, there's got to be another reason.
What are the three most important things in opening up a small business/restaurant? 1. location 2. location 3. location
I never really understood how important that statement was until I opened my business.
I would suggest a trial run of your product. You can do this with minimal costs in a variety of ways.
1. You can essentially rent a food truck and hit the streets with guerilla tactics. We have commissary's here that will rent you everything you need and include licenses. For example, hot dog carts and/or food trucks are readily available and you have access to a kitchen. Now of course the terms are likely to be terrible but this will allow you to test run your concept and cuisine.
2. You rent a booth as a vendor at some sort of attraction where you will be exposed to the masses. Like a concert, festival, or fair of some sort. Again, there are places that will rent you the equipment.
In these two scenarios, you will introduce your cuisine to people. From there you should be able to gather intel whether your food is good or not. That, along with much of what wallstreetcappers said will determine your success or failure.
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I would suggest a trial run of your product. You can do this with minimal costs in a variety of ways.
1. You can essentially rent a food truck and hit the streets with guerilla tactics. We have commissary's here that will rent you everything you need and include licenses. For example, hot dog carts and/or food trucks are readily available and you have access to a kitchen. Now of course the terms are likely to be terrible but this will allow you to test run your concept and cuisine.
2. You rent a booth as a vendor at some sort of attraction where you will be exposed to the masses. Like a concert, festival, or fair of some sort. Again, there are places that will rent you the equipment.
In these two scenarios, you will introduce your cuisine to people. From there you should be able to gather intel whether your food is good or not. That, along with much of what wallstreetcappers said will determine your success or failure.
Not disputing you. Never owned or ran a restaurant... First hand restaurant experience was working for a McDonald's in 78... Honest curiosity as to what insurance would be that is partially determined (cost wise) by a restaurant's receipts?
I'm not in the restaurant biz but they did ask me for my gross sales per year for biz insurance.
I'm guessing it's the same as how many miles you drive a year for a vehicle to determine insurance coverage, liability and amounts.
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Quote Originally Posted by Randisist:
Goose,
Not disputing you. Never owned or ran a restaurant... First hand restaurant experience was working for a McDonald's in 78... Honest curiosity as to what insurance would be that is partially determined (cost wise) by a restaurant's receipts?
I'm not in the restaurant biz but they did ask me for my gross sales per year for biz insurance.
I'm guessing it's the same as how many miles you drive a year for a vehicle to determine insurance coverage, liability and amounts.
Chris-there is a chain called Za's Italian cafe. In michigan and other Midwest states. Sounds like a similar concept. Check it out.
Sbarros failed with a model that sounds like what you are suggesting. Key difference is Chinese take out /fast food use low-cost not fresh ingredients and douses it in greasy sauce. Italian food made w low-cost shtty ingredients will not be desirable and you won't have many repeat customers. Lots of solid Italian places in NYC already you will get eaten alive literally and figuratively
Sbarro had crappy pizza.
And the malls are dying.
Recipe for disaster.
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Quote Originally Posted by Michfan15:
Chris-there is a chain called Za's Italian cafe. In michigan and other Midwest states. Sounds like a similar concept. Check it out.
Sbarros failed with a model that sounds like what you are suggesting. Key difference is Chinese take out /fast food use low-cost not fresh ingredients and douses it in greasy sauce. Italian food made w low-cost shtty ingredients will not be desirable and you won't have many repeat customers. Lots of solid Italian places in NYC already you will get eaten alive literally and figuratively
Fellas, Thank you for all the input and advice. Some sharp brains around here. I just wanna make something clear. I thought this was a good idea and just wanted to hear some thoughts or agreement which I have heard. I am not in NY City or a Mall. I am in Linden, NJ. This place I'm thinking of is just your corner chinese fast food take out place, just Italian. I want to do Combination specials, pints, quarts, copy the chinese with Italian.
I would like my price points to be like Chinese as well. I think the most expensive item for a common take out is $11.95.
Combo specials $6.50 ish.
I would be making fresh pasta with a commercial pasta maker.
It is less expensive, cooks faster and tastes better.
Keep in mind, I am on step 1 so no I haven't checked comps or looked at insurance. Just brainstorming at the moment figuring out how it would work and be worth it at the same time.
So total investment would be 15k-20k which includes 2 months rent. I do have the luxury of family members willing to pitch in and a very good Uncle that ran a successful Italian restaurant in Staten Island, NY for 20 years. La Botte on Hylan Blvd for any locals.
@Michfan15 - I like Za's Italian cafe's price points on its items, especially the pasta. Not like sbarro's. that place was like buffet style and the food was crap which is why there is no more sbarro's
@timbaland99 Thank you! If this were to happen I would probably give away yes give away free pasta with different sauces the 1st day to lure in a customer base, businesses, hospitals, etc.It's wouldn't be full meals just some hearty samples. I believe you have to give to get.
@webba Marketing is super import. not only a menu of every door within a solid radius but also setting up a booth at the local feast or perhaps sponsoring a sports tournament of some kind. Not to mention the power of social media. I do like your idea of "specials" on a usually slower Monday and Tuesday. Thanks!
@bizkilla It wouldn't hurt at all to rent a truck or a booth to see what the people think of the food. I am very confident with the food. I think making good food is rather easy just so you follow the recipe and use quality ingredients, imo. I think the concept itself is the real kicker, or seller here.
@smarterthanyou I can cook, that isn't a problem. Growing up like a true Italian American you learn to make that Sunday Sauce like its clockwork. But I do agree, I would test it out on customers, it can't hurt but only help.
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Fellas, Thank you for all the input and advice. Some sharp brains around here. I just wanna make something clear. I thought this was a good idea and just wanted to hear some thoughts or agreement which I have heard. I am not in NY City or a Mall. I am in Linden, NJ. This place I'm thinking of is just your corner chinese fast food take out place, just Italian. I want to do Combination specials, pints, quarts, copy the chinese with Italian.
I would like my price points to be like Chinese as well. I think the most expensive item for a common take out is $11.95.
Combo specials $6.50 ish.
I would be making fresh pasta with a commercial pasta maker.
It is less expensive, cooks faster and tastes better.
Keep in mind, I am on step 1 so no I haven't checked comps or looked at insurance. Just brainstorming at the moment figuring out how it would work and be worth it at the same time.
So total investment would be 15k-20k which includes 2 months rent. I do have the luxury of family members willing to pitch in and a very good Uncle that ran a successful Italian restaurant in Staten Island, NY for 20 years. La Botte on Hylan Blvd for any locals.
@Michfan15 - I like Za's Italian cafe's price points on its items, especially the pasta. Not like sbarro's. that place was like buffet style and the food was crap which is why there is no more sbarro's
@timbaland99 Thank you! If this were to happen I would probably give away yes give away free pasta with different sauces the 1st day to lure in a customer base, businesses, hospitals, etc.It's wouldn't be full meals just some hearty samples. I believe you have to give to get.
@webba Marketing is super import. not only a menu of every door within a solid radius but also setting up a booth at the local feast or perhaps sponsoring a sports tournament of some kind. Not to mention the power of social media. I do like your idea of "specials" on a usually slower Monday and Tuesday. Thanks!
@bizkilla It wouldn't hurt at all to rent a truck or a booth to see what the people think of the food. I am very confident with the food. I think making good food is rather easy just so you follow the recipe and use quality ingredients, imo. I think the concept itself is the real kicker, or seller here.
@smarterthanyou I can cook, that isn't a problem. Growing up like a true Italian American you learn to make that Sunday Sauce like its clockwork. But I do agree, I would test it out on customers, it can't hurt but only help.
I like the fresh hand cut pasta over the typical dry stuff you find at the chains. It is also trendy to have "artisanal" things, so it only adds to the overall uniqueness of your concept. Just mind you that making all that pasta, gnocchi, bread, grissini, etc., is very very labor intensive.
If you ever go through with it, I hope you keep us all posted. This has been one of the best threads with intelligent discussion.
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Good Luck brotha.
I like the fresh hand cut pasta over the typical dry stuff you find at the chains. It is also trendy to have "artisanal" things, so it only adds to the overall uniqueness of your concept. Just mind you that making all that pasta, gnocchi, bread, grissini, etc., is very very labor intensive.
If you ever go through with it, I hope you keep us all posted. This has been one of the best threads with intelligent discussion.
I like the fresh hand cut pasta over the typical dry stuff you find at the chains. It is also trendy to have "artisanal" things, so it only adds to the overall uniqueness of your concept. Just mind you that making all that pasta, gnocchi, bread, grissini, etc., is very very labor intensive.
If you ever go through with it, I hope you keep us all posted. This has been one of the best threads with intelligent discussion.
Thaks Biz
I will say this thread has opened my eyes on how much I really have to do before thinking about opening even a "small" place.
Thank you and thank everyone that gave really great thoughts
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Quote Originally Posted by bizkilla:
Good Luck brotha.
I like the fresh hand cut pasta over the typical dry stuff you find at the chains. It is also trendy to have "artisanal" things, so it only adds to the overall uniqueness of your concept. Just mind you that making all that pasta, gnocchi, bread, grissini, etc., is very very labor intensive.
If you ever go through with it, I hope you keep us all posted. This has been one of the best threads with intelligent discussion.
Thaks Biz
I will say this thread has opened my eyes on how much I really have to do before thinking about opening even a "small" place.
Thank you and thank everyone that gave really great thoughts
I like the concept Chris. I would love to get Italian food as easy as it is stopping in a Chinese place.
Maybe Mafioso would offer some thoughts as a rest owner himself.
That 1800 a month rent sounds good but who replaces the $2000 small garbage disposal under the industrial size sink when that goes out? The expenses in garbage bags and cleaning supplies etc.etc etc is crazy...
Who cleans the hoods there? Who keeps the fire protection ansel system up to date for inspections..Who is gonna be certified to be handling food for the Health Dept NJ rules?
It's the odds and ends that may have caught up with the previous owners but best wishes for you..Man if a simple throw in like your garlic bread was outrageously friggin good,that little niche could overcome a lot. Look at the freaking Cronut garbage in NYC.Instant fame...You prob won't duplicate that story,but something about the place has to make for repeating customers..
Don't know the city of Linden that much being from the Shore but do Italians still do Sunday family dinner? Maybe just the pre-cooked pasta and quarts of gravy to go would work in these times ,where grandma has half the stuff ready to go?
Deli-case with some cheeses and meats and a slicer if there is room? You must also be planning on some salads also so that is a time sensitive issue you uncle knows about..
Just throwing some things out there to you..But good luck whatever..
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I like the concept Chris. I would love to get Italian food as easy as it is stopping in a Chinese place.
Maybe Mafioso would offer some thoughts as a rest owner himself.
That 1800 a month rent sounds good but who replaces the $2000 small garbage disposal under the industrial size sink when that goes out? The expenses in garbage bags and cleaning supplies etc.etc etc is crazy...
Who cleans the hoods there? Who keeps the fire protection ansel system up to date for inspections..Who is gonna be certified to be handling food for the Health Dept NJ rules?
It's the odds and ends that may have caught up with the previous owners but best wishes for you..Man if a simple throw in like your garlic bread was outrageously friggin good,that little niche could overcome a lot. Look at the freaking Cronut garbage in NYC.Instant fame...You prob won't duplicate that story,but something about the place has to make for repeating customers..
Don't know the city of Linden that much being from the Shore but do Italians still do Sunday family dinner? Maybe just the pre-cooked pasta and quarts of gravy to go would work in these times ,where grandma has half the stuff ready to go?
Deli-case with some cheeses and meats and a slicer if there is room? You must also be planning on some salads also so that is a time sensitive issue you uncle knows about..
Just throwing some things out there to you..But good luck whatever..
The container its in is crucially important here. Can't go cheap in this regard.
Italian food is generally cheap and therefore an easy at home meal people will make in my opinion. People think pizza in the Italian domain for take out in my opinion.
I think it will fail personally, regardless of area, but I truly wish you prove me wrong and make a fortune. Good luck in whatever you do.
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The container its in is crucially important here. Can't go cheap in this regard.
Italian food is generally cheap and therefore an easy at home meal people will make in my opinion. People think pizza in the Italian domain for take out in my opinion.
I think it will fail personally, regardless of area, but I truly wish you prove me wrong and make a fortune. Good luck in whatever you do.
@TRAIN69 I've watched EVERY episode of Kitchen nightmares,Restaurant Impossible,Diners & Drives and Restaurant Stakeout. In addition I'm sort of a foodie I guess when going into any establishment thinking what could be better here, etc. Now that won't make me successful by itself but i'm just your regular customer that values quality, customer care and good timing. My Ebay account has 831 feedback 100% Top Rated Seller. I get it.
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@TRAIN69 I've watched EVERY episode of Kitchen nightmares,Restaurant Impossible,Diners & Drives and Restaurant Stakeout. In addition I'm sort of a foodie I guess when going into any establishment thinking what could be better here, etc. Now that won't make me successful by itself but i'm just your regular customer that values quality, customer care and good timing. My Ebay account has 831 feedback 100% Top Rated Seller. I get it.
I am going to try and make this happen, even though I was part owner of a cafe that served food it was a long time ago and I think my best bet would be to perhaps take a small business class. I didn't realize ALL that goes into even a small take out joint. I researched a few business plans yesterday and it's not as easy to make it as it looks on paper. you really need solid margins. I really wanna do this right. If I lose 25K and 1 year of my life, so be it.
Now, I was up all night thinking of a product that would make me stick out to customers. I came up with the very family friendly English Muffin Pizza. I would need a Conveyor Oven (like Quiznos) and I'm good to go. I never knew how easy it was and so CHEAP to make your own English Muffins. Cost of making 6 Muffins which yields 12 pizzas is less then $1. after sauce, cheese, additional toppings the total cost should be around $3
My idea would be to sell 1 dozen English Muffin pizza's for $9.99 and place them in a similar box like you'd get from Dunkin Donuts.
I'd have to test this to see if they would remain hot, but just throwing it out there.
Please tell me if I need sleep or this would work?
Thank you in advance.
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I am going to try and make this happen, even though I was part owner of a cafe that served food it was a long time ago and I think my best bet would be to perhaps take a small business class. I didn't realize ALL that goes into even a small take out joint. I researched a few business plans yesterday and it's not as easy to make it as it looks on paper. you really need solid margins. I really wanna do this right. If I lose 25K and 1 year of my life, so be it.
Now, I was up all night thinking of a product that would make me stick out to customers. I came up with the very family friendly English Muffin Pizza. I would need a Conveyor Oven (like Quiznos) and I'm good to go. I never knew how easy it was and so CHEAP to make your own English Muffins. Cost of making 6 Muffins which yields 12 pizzas is less then $1. after sauce, cheese, additional toppings the total cost should be around $3
My idea would be to sell 1 dozen English Muffin pizza's for $9.99 and place them in a similar box like you'd get from Dunkin Donuts.
I'd have to test this to see if they would remain hot, but just throwing it out there.
Please tell me if I need sleep or this would work?
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