Opening a restaurant! (I'm 17)

[Tomekmeister]

Hello there!

The title might be a little misleading as it is not really a restaurant, but a hut with food (basically like hut with kebabs, but with a few tables outside). There is no need for me to go into the details, but I found a niche, researched the market and it's a perfect fit (it's going to solve many problems).

I don't really know anything about it as it's my first (legal) business. I did a lot of research, but it's really difficult to find some reliable source about running it.

I would really appreciate if you guys gave me some advice, links, books or anything helpful. I am trying to complete a list of "Things that I need to take care of" and I can't really know if I'm missing something (for sure I am). As of right now I have 5 categories (Technical, Legal, Design, Finances, Marketing) and a bunch of subcategories.

Thank you!

PS: If you're new to this thread, please skip this post and move to the 2nd page and find my post there, where I explain more details.

 

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[becks22]

Have you worked at a restaurant before? Have you watched Kitchen Nightmares with Gordon Ramsey? Any food service business has thin margins and are one of the harder businesses to keep open. You sound like you're doing your homework but still. I would suggest finding a couple episodes of Kitchen NIghtmares on Netflix, Hulu, or Youtube and watching them. Its not only entertaining but you learn a lot. You mentioned kebabs-- do you know how you are going to store your meat and other products? Have you learned how the food inspection process works in your County yet?

I'm not saying it can't be done but any food service business (restaurant, bar, catering) tend to be the least passive you can get.

 

[Tomekmeister]

Have you worked at a restaurant before? Have you watched Kitchen Nightmares with Gordon Ramsey?

No for both, but will definitely give the second one a try.

Have you learned how the food inspection process works in your County yet?

I have some knowledge about it (I asked around), but I will have to get deep into this for sure.

You mentioned kebabs-- do you know how you are going to store your meat and other products?

I'm not planning to open a Kebab, but there's still meat involved. I don't really know how it works. For now I am just trying to get a basic understanding of what needs to be done and what do I need to know. Once the list is complete I'm going to educate myself in each of these topics.

Just because it's hard, doesn't mean I'm going to quit. I'm going to push harder!

Thank you

 

[Fox]

You could read about it about it for a month or you could just go work for another successful operation for a month.

There is no shame in working for the competition, especially in the food industry where so much knowledge is passed down through osmosis.

 

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[KLaw]

You could read about it about it for a month or you could just go work for another successful operation for a month.

There is no shame in working for the competition, especially in the food industry where so much knowledge is passed down through osmosis.

Or you could say F*ck it. Just do it. Learn from ur failures. In the end, you'll learn a ton by taking action. Worst case...u fail. But, it's not really a failure.

 

[Fox]

Or you could say F*ck it. Just do it. Learn from ur failures. In the end, you'll learn a ton by taking action. Worst case...u fail. But, it's not really a failure.

- First Business
- No Knowledge of Food Industry
- 17
- Selling Meat Products

Maybe if it was a lemonade stand but selling meat products from an actual premises is more complicated than just [HASHTAG]#yolo[/HASHTAG]. The equipment, ingredients and paperwork involved in setting this up is $10,000 plus. Just 'F*ck it' is probably why 9/10 restaurants fail in their first year.

My advice would be to do something a little more basic like ice cream / smoothies / vegetable juices.
- mark up is way higher
- a lot easier to market and get people interested
- easier to get traction of FB, Snapchat, IG
- more of a spontaneous purchase
- less start up costs (ingredients, cooking equipment, legal work)
- easy to do right
- can't really go wrong
- more fun. You are 17, way more fun selling ice cream to people your own age then worrying about the issues that go with selling meat.

If it goes well then you can branch into some other food types and work your way up. I had a good friend who owned an ice cream shop the whole way through Uni who made very good money from only working weekends. I also managed a gelato cafe for a year - profits are very good


*** Bonus idea - have it as a mobile set up and cash in on local sport events, tourist spots and high traffic situations like Pokemon Go etc. ***

 

[KLaw]

- First Business
- No Knowledge of Food Industry
- 17
- Selling Meat Products

Maybe if it was a lemonade stand but selling meat products from an actual premises is more complicated than just [HASHTAG]#yolo[/HASHTAG]. The equipment, ingredients and paperwork involved in setting this up is $10,000 plus. Just 'F*ck it' is probably why 9/10 restaurants fail in their first year.

My advice would be to do something a little more basic like ice cream / smoothies / vegetable juices.
- mark up is way higher
- a lot easier to market and get people interested
- easier to get traction of FB, Snapchat, IG
- more of a spontaneous purchase
- less start up costs (ingredients, cooking equipment, legal work)
- easy to do right
- can't really go wrong
- more fun. You are 17, way more fun selling ice cream to people your own age then worrying about the issues that go with selling meat.

If it goes well then you can branch into some other food types and work your way up. I had a good friend who owned an ice cream shop the whole way through Uni who made very good money from only working weekends. I also managed a gelato cafe for a year - profits are very good

Solid advice. I don't disagree. But, I was kinda looking at it from a bbq in the neighborhood type of biz.

 

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[Fox]

Food costs

The cost of gelato is very limited: the cost of raw materials makes up around 12% of the selling price (or if we include milk and cream, etc. among the raw materials, this might reach 20%). The same cannot be said for the drinks, sandwiches, and pastries usually sold in a café, which can even reach 50%. Do not forget, though, that whereas the cost of the ingredients in gelato provides bigger profit margins, it sells for a relatively low price, so good sales volume is vital.

http://www.italiangelato.info/Being...-A-Gelato-Shop/Guide-To-Open-A-Gelato-Shop.kl

Our shop ran higher margins. Do markups like chocolate wafers, sprinkles, banana splits, cones etc.

Depends on your location but target the fancier parts of town - yoga studios, shopping malls, main street. Loads of ways to creatively market this.

 

[becks22]

http://www.italiangelato.info/Being...-A-Gelato-Shop/Guide-To-Open-A-Gelato-Shop.kl

Our shop ran higher margins. Do markups like chocolate wafers, sprinkles, banana splits, cones etc.

Depends on your location but target the fancier parts of town - yoga studios, shopping malls, main street. Loads of ways to creatively market this.

It's funny that you mention gelato. My friend loves vanilla gelato and for her birthday I thought I would go to the very expensive Italian bakery and get her some. It seems whenever she goes they don't have vanilla that day. So yesterday I thought I would swing by and see if they had any vanilla, which they did. I got her a pint of gelato and it was $16.99. I also bought a half dozen cupcakes and a sandwich for me because it was lunch time and I had no food at home. My total was around $40. I didn't mind but when you think about it -- that's a huge markup for them considering I can buy gelato at the grocery store for like $4.99.

 

[Lex DeVille]

- First Business
- No Knowledge of Food Industry
- 17
- Selling Meat Products

Maybe if it was a lemonade stand but selling meat products from an actual premises is more complicated than just [HASHTAG]#yolo[/HASHTAG]. The equipment, ingredients and paperwork involved in setting this up is $10,000 plus. Just 'F*ck it' is probably why 9/10 restaurants fail in their first year.

My advice would be to do something a little more basic like ice cream / smoothies / vegetable juices.
- mark up is way higher
- a lot easier to market and get people interested
- easier to get traction of FB, Snapchat, IG
- more of a spontaneous purchase
- less start up costs (ingredients, cooking equipment, legal work)
- easy to do right
- can't really go wrong
- more fun. You are 17, way more fun selling ice cream to people your own age then worrying about the issues that go with selling meat.

If it goes well then you can branch into some other food types and work your way up. I had a good friend who owned an ice cream shop the whole way through Uni who made very good money from only working weekends. I also managed a gelato cafe for a year - profits are very good


*** Bonus idea - have it as a mobile set up and cash in on local sport events, tourist spots and high traffic situations like Pokemon Go etc. ***

We ordered 2 medium kale lemonades from a smoothie store on Friday. About the size of a McDonalds small.

Cost: $18.00

Needless to say I nearly shat myself and that was before taking my dear sweet time with the juice.

 

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[mws87]

Bonus idea - have it as a mobile set up and cash in on local sport events, tourist spots and high traffic situations like Pokemon Go etc.

This ^^^

Food Trucks are a big thing where I live. These guys are making a killing and there are even events JUST for the food trucks. The whole Pokemon trend + food trucks is a fantastic idea.

 

[Fox]

The first day that I worked for the gelato place the old boss pulled me aside. He said "You know I am a drug dealer, right?" I said I didn't lol. He replied "Ya I sell drugs - sugar and coffee. And I make drug dealer profits". The guy had a mansion of a house and made bank selling coffee, desserts and ice-cream. He hated selling sandwiches and only had them on the menu cause they are needed to get people in the door.

 

[Tomekmeister]

- First Business
- No Knowledge of Food Industry
- 17
- Selling Meat Products

Maybe if it was a lemonade stand but selling meat products from an actual premises is more complicated than just [HASHTAG]#yolo[/HASHTAG]. The equipment, ingredients and paperwork involved in setting this up is $10,000 plus. Just 'F*ck it' is probably why 9/10 restaurants fail in their first year.

My advice would be to do something a little more basic like ice cream / smoothies / vegetable juices.
- mark up is way higher
- a lot easier to market and get people interested
- easier to get traction of FB, Snapchat, IG
- more of a spontaneous purchase
- less start up costs (ingredients, cooking equipment, legal work)
- easy to do right
- can't really go wrong
- more fun. You are 17, way more fun selling ice cream to people your own age then worrying about the issues that go with selling meat.

If it goes well then you can branch into some other food types and work your way up. I had a good friend who owned an ice cream shop the whole way through Uni who made very good money from only working weekends. I also managed a gelato cafe for a year - profits are very good


*** Bonus idea - have it as a mobile set up and cash in on local sport events, tourist spots and high traffic situations like Pokemon Go etc. ***

That's very helpful advice, thank you.
Although this isn't quite the case though. The kind of "restaurant" I'm planning to open is a pretty unique. There isn't any of these in Poland. What I'm doing is basically replicating something that has been around for decades. It provides HUGE value for certain people (also for myself).

Yeah, the costs of starting this business is around $10,000 (which is A LOT here), but it is proven to work very well for example in the US.

My plan is to find an investor to cover all the costs, as it's nearly impossible for someone my age to do it. But hey, it's a long way to go. For now I just want to focus on acquiring the required knowledge.

Could you please point me to the things that I need to learn / focus on in order to reach my goal? I'm thankful for all the help.

 

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[becks22]

That's very helpful advice, thank you.
Although this isn't quite the case though. The kind of "restaurant" I'm planning to open is a pretty unique. There isn't any of these in Poland. What I'm doing is basically replicating something that has been around for decades. It provides HUGE value for certain people (also for myself).

Yeah, the costs of starting this business is around $10,000 (which is A LOT here), but it is proven to work very well for example in the US.

My plan is to find an investor to cover all the costs, as it's nearly impossible for someone my age to do it. But hey, it's a long way to go. For now I just want to focus on acquiring the required knowledge.

A question to everyone:
Could you please tell me what do I need to learn / focus on in order to reach my goal? I'm thankful for all the help.

It's going to be pretty difficult finding an investor to cover costs without proving to them that you know what you're doing. Maybe finding an investor who is also a restaurateur might be an option? Are you planning on cooking the food yourself or hiring someone? In the US, you don't need a degree to be a chef but many do. I know you're 17 so what is your timeline for this? 1 year? 2 years? 6 months? In the US there is a certification for people in the business called ServSafe. Here is their YT channel, I would suggest watching some of their videos. https://www.youtube.com/playlist?list=PLWyMTadJPB0-xuEJKqzk7VkAG4OxTC0Pr

 

[Vigilante]

*** Don't do it, kid. Relax. You have a lot of life left in front of you. Right now, focus on being 17. A few years down the road, if you are still interested, then reconsider this. For today, just relax and be a kid and become a man. Life will wait for you. ***

 

[Guest34764]

You don't need an investor.

Start hustling on Craigslist.If you know what you're doing you could make 10k in less than a few months.


p.s not sure if Poland has Craigslist but use a website that sells things locally.

 

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[Tomekmeister]

*** Don't do it, kid. Relax. You have a lot of life left in front of you. Right now, focus on being 17. A few years down the road, if you are still interested, then reconsider this. For today, just relax and be a kid and become a man. Life will wait for you. ***

If I had any assurance of you being right, this is exactly what I'd do. I just heard too many stories of people having great ideas and doing nothing with it. Besides, funny story, 2 of my friends told me that they have the same idea without me even mentioning it. That means it's a huge demand and sooner or later someone with knowledge and money will come up with it. The longer I wait, the less chance I have of it succeeding.

It's going to be pretty difficult finding an investor to cover costs without proving to them that you know what you're doing.

You're 100% right. This is why I'm not even going to think about it before I gather enough knowledge and create an amazing business plan.

Are you planning on cooking the food yourself or hiring someone?

Definitely hiring. You wouldn't want to see me cook.

I know you're 17 so what is your timeline for this? 1 year? 2 years? 6 months?

The sooner, the better. Estimated time is around 1 year.

You don't need an investor.

Start hustling on Craigslist.If you know what you're doing you could make 10k in less than a few months.


p.s not sure if Poland has Craigslist but use a website that sells things locally.

I'd be glad to do that, but I think you're making it sound easier than it really is.

 

[AgainstAllOdds]

*** Don't do it, kid. Relax. You have a lot of life left in front of you. Right now, focus on being 17. A few years down the road, if you are still interested, then reconsider this. For today, just relax and be a kid and become a man. Life will wait for you. ***

I love business and also loved it when I was five.

Some kids want to grow up to be basketball players. Others want to be entrepreneurs.

If @Tomekmeister 's goal is to "make money" or "be successful", then your advice is spot on. If his goal is to start playing the game, then your advice is doing him a disservice. He needs to get out there. I don't know if opening a restaurant is the right way of going about it, but looking around and trying definitely is.

 

[Fox]

I kinda want to go to Poland now and start selling Ice cream.

Whats the crowd funding scene like in Poland? Maybe you can get it going that way.

Sell 300 tickets @ 50 euro each to its opening party or something. You will get a raw end of the deal getting an investor at your age + experience. Doesn't mean its not possible but try other routes first, otherwise its just going to be a job and not a business.

 

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[Tomekmeister]

I kinda want to go to Poland now and start selling Ice cream.

Whats the crowd funding scene like in Poland? Maybe you can get it going that way.

Sell 300 tickets @ 50 euro each to its opening party or something. You will get a raw end of the deal getting an investor at your age + experience. Doesn't mean its not possible but try other routes first, otherwise its just going to be a job and not a business.

You don't really have many crowd funding events here. That's brilliant!

Some kids want to grow up to be basketball players. Others want to be entrepreneurs.

I always wanted to do both, but injuries kept me away from basketball


Aw man! For months I was looking for decent "business ideas" with no special luck, and now you guys are flooding my mind with them. Right now I'm lost.

 

[Vigilante]

I love business and also loved it when I was five.

Some kids want to grow up to be basketball players. Others want to be entrepreneurs.

If @Tomekmeister 's goal is to "make money" or "be successful", then your advice is spot on. If his goal is to start playing the game, then your advice is doing him a disservice. He needs to get out there. I don't know if opening a restaurant is the right way of going about it, but looking around and trying definitely is.

I'd never encourage a 17 year old kid to open the most volatile, non-fastlane types of businesses there is to open. When you take the failure rate of restaurants, blend it with his inexperience, lack of capital, and the need for restaurateurs to do the opposite of separating time from income, we would be doing him the best service we could by dissuading him from this.

I'm all for business, but not suicide missions. Some times, common sense needs to prevail. His market validation is that two of his buddies that like kabobs think it's a good idea.

But, I have said my peace. We'll likely never hear the results.

 

[becks22]

Since your pretty young at 17, you could get a mentor who is a restaurateur (as long as they see the value you have) and they wouldn't see you as competition because you are so young.
Once you turn around 22-23, my age, they begin to see you as competition and it's harder to get someone to talk to you about their business.

 

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[Vigilante]

Have you worked in a restaurant?

 

[Scot]

I think one thing you could and should definitely do is get a job in a kitchen that makes something similar to what you'll be producing. Use the paycheck to fund your idea, but also get the valuable experience in a kitchen.

That's the first place to start if you ask me. Having worked as a cook and baker, I couldn't even imagine opening a shop without having experienced the business first hand.

 

[Fox]

We don't really have many crowd funding events here. That's brilliant!

Then thats where I would be spending my 10k.

I am with @Vigilante on this. A restaurant is one of the highest failure businesses there is. Add in lack of experience and capital.

You could be selling ice cream within a week with only a few hundred spent.
You could have a few kids your age selling ice cream for you within a month.

 

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[Vigilante]

I think one thing you could and should definitely do is get a job in a kitchen that makes something similar to what you'll be producing. Use the paycheck to fund your idea, but also get the valuable experience in a kitchen.

That's the first place to start if you ask me. Having worked as a cook and baker, I couldn't even imagine opening a shop without having experienced the business first hand.

And trying to learn about it, on the internet, from people who live in different countries.

Come back when you're 20, having spent three years working for three different restaurants.

Let someone else pay to educate you.

 

[Kung Fu Steve]

I'd never encourage a 17 year old kid to open the most volatile, non-fastlane types of businesses there is to open. When you take the failure rate of restaurants, blend it with his inexperience, lack of capital, and the need for restaurateurs to do the opposite of separating time from income, we would be doing him the best service we could by dissuading him from this.

I'm all for business, but not suicide missions. Some times, common sense needs to prevail. His market validation is that two of his buddies that like kabobs think it's a good idea.

But, I have said my peace. We'll likely never hear the results.

Everyone thought I would fail at that age, too.

People still think I'm going to fail today.

With that being said, @Tomekmeister, can I suggest a simple exercise?

Write down the skills you will need to run this restaurant -- then rate yourself on a scale of 1-10 for each area. Then develop a plan to improve the skills and knowledge in order to reach your goal. If that means going to work in a restaurant and pushing yourself to learn every role there, do it. If that means learning how to do accounting, pick up those books and educate yourself.

 

[ddzc]

Then thats where I would be spending my 10k.

I am with @Vigilante on this. A restaurant is one of the highest failure businesses there is. Add in lack of experience and capital.

You could be selling ice cream within a week with only a few hundred spent.
You could have a few kids your age selling ice cream for you within a month.

There's a place down the street from me "best ice cream in town", apparently anyway. I'm not huge in to it unless it's authentic Italian gelato. Every time I pass by this place, there's a massive line up, during the day, mostly at night. They're only open for 4-5 months out of the year and they leave the country for the other 8. Not a bad semi-fastlane business.

 

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[Vigilante]

Everyone thought I would fail at that age, too.

People still think I'm going to fail today.

Verdict pending.


Just kidding.

My work here is done. The big guns have arrived.

Good luck with your Kabobs! I will cheer when your franchise hits the United States.

Until then...

 

[Tomekmeister]

His market validation is that two of his buddies that like kabobs think it's a good idea.

Judging by that, I don't think you've read my posts in this thread.

Have you worked in a restaurant?

Ok, you clearly haven't. No, I have not.

Then thats where I would be spending my 10k.

I am with @Vigilante on this. A restaurant is one of the highest failure businesses there is. Add in lack of experience and capital.

You could be selling ice cream within a week with only a few hundred spent.
You could have a few kids your age selling ice cream for you within a month.

Your opinions are very reasonable, but Fox, I'd like to invite you for a quick private chat to explain a few things that might create a different point of view from your perspective.