Is it a good idea to consider investing in your own restaurant with the economy in its current state?

Question

Is it a good idea to consider investing in your own restaurant with the economy in its current state?

Answer 1

If you mean investing in equipment or renovation, I don't think so. But if you mean investing in such a way that will improve the quality of the food you serve, then, you should.

Answer 2

Stastics show that only about 5% of restaurants survive the first two years.

$100,000.00 is a bare startup for a nice size one.

Unless you start with a hole in the wall and run it with relatives, like Mexican and Chinese, working 15 hours, 7 days.

Answer 3

As you well know one of the first things to go when money gets tight is entertainment and eating out is one of the main things that can be culled with ease. If it were me I'd sit tight untill things improve. most economies run on a ten year cycle.

Good Luck

Answer 4

I think it would be risky to start up from scratch, however if you have the "edge" over your competitors and you are "actually" going to be making a profit [not expecting one based upon good figures and high expectations] and not a loss then YES it is a good idea. Also you MUST provide EXCELLENT GENUINE SERVICE to the customer and equally important is the food and beverages you will be offering also.

Answer 5

no.  Restaurants are one of the worst investment options even in the best of times.  They are worse than worst in bad times.  But even in bad times some can do well.  McDonalds for example seems to be immune more or less from the slumping economy.  It might be because Mac markets to kids and kids know how to manage their adult supervision.

Answer 6

it'll depends on how well your restaurant is doing at the moment. is your business better than your neighbours', or showing signs of a steady climb? if the answer is "yes", then it's a good idea to invest & reap double rewards once the economy picks up... anyway the ball is in your court... hope you make the right decision & good luck to you... :)