Should I own a Restaurant???

Discussion in 'Professional Chefs' started by micric, Feb 20, 2017.

  1. micric

    micric

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    Hi Chefs,

    I am an Executive Chef with 25 years International Experience, my question is wanted to open my own restaurant in bay side area in Southern Maryland ( seasonal Business).

    I am planning to lease a fully equipped 70 cover restaurant and Bar, 5,500 rent, and I am only predicting a revenue of about 25,000 a month for the first year and some increase in 2nd and 3rd year.

    My question to you all expert is should I go for it or stay with my current job as Executive Chef with 65,000 salary 45 hours a week.

    like to have your feedback
     
  2. jimyra

    jimyra

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    Welcome to cheftalk.  Do you have a business plan?  What do you base your income on?  Is all the equipment working?  Who fixes it when it breaks?  Do you have capital to open and operate for 2 years?
     
  3. cheflayne

    cheflayne

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    Not trying to be harsh, but if you have to ask, then the answer is no you should not.

    When I got married, I didn't ask anyone's opinion about whether I should get married or not. Thirty years later, I am still married. Thirty years ago I had no doubts about whether I should get married or not, I just knew it was right.

    If you want feedback that is more pros/cons number oriented, I can offer some of that because I have experience with opening my own restaurant from the bare walls up and running it successfully and profitably for thirteen years,
     
    foodpump and flipflopgirl like this.
  4. peachcreek

    peachcreek

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    My knowledge? A lease payment that is 20% of your monthly gross income will kill you deader than dead.

    That being said? What is included in the lease? Are you responsible for any taxes, utilities, insurances as part of your lease?

    My thought is if you add all of your costs and add the whopping 20% lease payment it comes out to be more than 25K/mo.

    Good luck whatever you do!

    Peachcreek.
     
    Last edited: Feb 20, 2017
  5. pete

    pete Moderator Staff Member

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    I lot would depend on what kind of place you are planning on opening.  What kind of hours are you going to be open to generate that $25,000 a month?  How many additional staff are you going to need besides yourself?

    In general, I agree that $5500 a month for rent seems pretty high for a place that is only planning on generating $$25,000.00 a month in revenue, but if the rest of your expenses are being kept really low (I'm thinking casual, counter service crab shack) with minimal labor and minimal overhead then it could be profitable.