What is diffficult about opening a restaurant???

Question

How much money do I have to spend to open it? Is it hard?

Answer 1

Its hard work. Buying a going concern can cost you anything from 30k upwards depending how big the business is.  You will have to comply with the Health & Safety rules, Inland revenue, employment laws etc. You will need to open accounts with suppliers (you will need a good credit record) You will need to pay a chef and waitress's. You will need to know about gross profit - ie; how much to sell your food for and still make a profit. Electric & water bills are high for commercial premises, you have to pay a company to remove food waste and cooking oil, , you will need Insurance in case you poison someone or they fall over, you will have no time off as your staff seldom turn up on bank holidays, you will need a business bank account, an accountant etc. You will need to be fit, solvent and prepare to work all hours.  One in three food business's fold within the first year. Please speak to a small business advisor before you do anything. Good Luck.

Answer 2

The most difficult is paying the rent.  It has to be paid every 30 days and it kills the profit.  If i could do one thing it would be to tell every landlord that if i don't make a profit that month, i shouldn't have to pay the full rent.  I'll pay something.  I know that someone could cheat the landlord this way.  I wouldn't.  But if i move out, the space may stay empty for 1 year and we both lose.  But if the landlord helps me thru the bad times, i may stay there for 20 years.

I hope you make a $Million in the restaurant business.

Answer 3

Hello! If you really want to open a restaurant then nothing is impossible.  The first thing you have to do is to find a place which is convenient for the people to go through.  Then find out how much is the rent, ask advice from a decorator or if you have a talent for interior decorating then you can save more money.  Then go to the government office to inquire on how to get permits, and how much will it cost you.  Then start to look out for the things that you needed in the restaurant (kitchenwares, tablewares, furnitures, kitchen utensils etc>).  Then find cooks, helpers and how much salary are you going to pay them.  If you gather all these information then add all the costs plus an extra amount for your stand by funds in case of emergencies.  It is really difficult, so if you have friends who have knowledge on these things you better seek for their advice.  And the menu should be appetizing and the price should be right.  Good luck!

Answer 4

Primarily because of competion. Nearly everyone thinks they can do it and there is minimal regulation. So, there is a lot of competition. In nearly every restaurant type, there a many options within a small area. With great competition, prices are kept to a minimum so the profit margin is very low. So, you need to work very hard and efficiently to be successful.  The evidence is in the numbers, over 90% of restaurants fail in the first year.