Anyone ever opened up a restaurant/nightclub?

  • WhoDey

    Posts: 561

    Aug 21, 2012 8:16 PM GMT
    I've been asked to make an investment in a restaurant/nightclub. Any of you have experience in opening and running one? Aside from it costing a hell of a lot of money to start up, what are some of the challenges?
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    Aug 21, 2012 9:30 PM GMT
    Welcome to permit hell !
    keeping it open..
    Reliable friendly staff..
    Promoters / DJs..

    Did a few here in lauderdale..not as an investment but management from start to finish! My BFF was the investor..

    You will have some major headaches..
    But if it goes'll have a blast..

    watch every unnecessary spending ! There will be times when you have to "Float" the entire opeation for weeks ..from a bank acct.

    Get very good legal advice / insurance to protect yourself and your business!!..
    let me know when it opens!! icon_biggrin.gif
    (Awesome!!.. Good luck)

    I'm tracking

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    Aug 21, 2012 9:33 PM GMT

    What type? how big? who's investing? wheres the location? etc etc etc.. you can privately email me.
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    Aug 21, 2012 10:07 PM GMT
    I've had part ownership of several restaurants many years ago. The common threads through all of them were:

    (1) only invest money you can afford to lose; get good legal advice and SECURE your investment; you do not need to take the restaurant as your security...the promoter may have other assets that will make your investment more secure; be clear about whether you will be an owner or a lender or a combination of both;

    (2) you must have good and loyal and trustworthy management;

    (3) you must have a consistently good chef;

    (4) I would recommend visiting the place regularly, 'though do not interfere;

    (5) do not expect feebies when you go there.

  • metta

    Posts: 38630

    Aug 21, 2012 10:14 PM GMT
    Is this going to end up on one of those Gordon Ramsay shows? ;)

    Seriously though....I have never opened one up but I understand how difficult they can be. Make sure that the people creating this and involved in this have a lot of excellent experience. It is a very competitive industry during a very tight economy. Unless you have tons of money to throw very careful.
  • camfer

    Posts: 891

    Aug 22, 2012 12:48 AM GMT
    High risk, low reward. If you're an experienced investor, can read the pro formas and actually understand them, and have money you can afford to lose, it might be worth considering. Even experienced restaurateurs fail often.

  • Aug 22, 2012 1:42 AM GMT
    There's a reality TV series on iTunes called iCandy. Let's just say that didn't go well. But he was fun to watch.
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    Aug 22, 2012 1:54 AM GMT
    Never opened one up as management/owner; but have worked in several starter restaurants/experimental restaurants. It will eat up all your time, money and will test Your Will. Make sure it's not just money you're after, feed your passions in your business, and be good to the employees who actually stick their necks out for you. They may not make all the decisions, but without loyal people below you, noone will make your decisions happen.
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    Aug 22, 2012 1:58 AM GMT
    What will be your role in this venture? Purely the money guy? Or will you be working there also? If it's the latter, I would stay the hell away.