Restaurant Myth #7- Everyone Will Flock to Your Restaurant
Opening a restaurant isn't like the movie Field of Dreams. If you build it they might come. Or they might just say they will come. Or they might show up once and never come back. I don't mean to sound well...mean, but people will lie to you without thinking twice, if they think that is what you want to hear.
I was speaking to a local business man at a wedding of a mutual friend this past winter and he said he was thinking of opening an Italian restaurant in a little run down mill town.
"Oh yeah," he exclaimed, "Everyone has said they would be there every night for some good Italian cooking." And I am sure that people would show up the first couple of weeks, or months. But would the place have staying power in a economically depressed area? Maybe. Maybe not. Hopefully the business man realized that the idea, while popular with friends and families, may need a little more research before opening the doors. So this brings me to Restaurant Myth #7:
Don't Always Believe What People Tell You.
Friends, family, coworkers, even general acquaintances are great for support, but not a substitute for real demographic research and market analysis that is needed to open a successful restaurant.
I am so glad to hear some one give an HONEST assessment of the restaurant industry. My fiance’ loves to cook and wants to invest in a BBQ restaurant. I looked up the average restaurant owners income in my neighborhood in it was only 27k!!! I showed him, but he is confident all of his friends and family will show up and make him rich. I don’t want to kill his dreams, but I don’t feel like it is a good investment. Especially since he only has culinary skills and lack business which will be critical to our business. We planned to go half on the business, but I am starting to rethink things. Should I invest most of my savings to help support him or should I find a nice way to tell him I think we need to make a better investment? Cooking is his everything and I think I would feel bad if I didnt support him or should I? Please Help.
Kill it! Kill the dream! No, just kidding. However, make sure he does his homework and does not just rely on friends and family. Especially in this economy. As for investing your money, I would say absolutely not. It is his dream, not yours. What do other people think? Am I too harsh?
Tell your fiance to go work in a restaurant for a year or two while taking business classes. We help people open faily simple (ice cream/gelato.yogurt) restaurants and frequently are amazed how many people belive these myths.
As for your fiance, the basic truth is that about 2/3rds of restaurants don’t last 2 years. Without a solid business plan, the chances of survival (as opposed to success) are even worse. How’s his business plan coming along?