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Any Idea How Much It Costs To Start A Restaurant?!

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    Any Idea How Much It Costs To Start A Restaurant?!

    Hey kings & queens, I'm curious to find out how much it costs to open a resturant. I've been considering franchises for awhile. I've also thought about buying out an owner who is struggling. Any ideas?

    #2
    I just read an article about how bad of an idea it is to get into a franchise of any kind.

    Just buying him out and taking over the franchise will probably cost you a couple hundred grand. I assume its a restaurant? Do you have any experience in the restaurant business? Are you ready to work from early morning till close 7 days a week? Why is the owner struggling?

    From what the article stated...most franchises earn little money. Its more of an investment for the "more privileged" folks who want more diversification.


    First you wanted to dive into real estate and renting properties...now you want to own a franchise. If you're looking to get rich quick you've come to the wrong forum. The majority of people who have money didnt earn it overnight.

    Destind4...what is your occupation and how old are you?

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      #3
      If you want a fatburger franchise, then you can expect to spend approximately $504,000 to $881,000
      http://www.fatburger.com/Franchise-O...-You-Need.aspx

      I'm sure you could also start a small cafe or lunch truck for under $20k if you were creative. But that's not the kind of business I would want to own. It'll take long hours and hard work for it to be successful. I also wouldn't buy out a struggling owner, unless I knew how to turn the business around so it wasn't struggling. Do you have restaurant experience?

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        #4
        Yes, I have nine years worth of experiance in the restaurant industry. Working back-to-back 13 hour shifts on my feet is nothing new to me. Currently, I'm a licensed insurance agent & I'm a 24 year old African male. Yes, real estate & the restaurant industry are just two of many avenues I'm looking to explore to obtain wealth. I never said it will happen over night. However, I am paving the way. Instead of being cynical try an encouraging approach to new memebers.

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          #5
          Sorry, I wasn't trying to be cynical. Running your own business is a great way to build wealth. I just wanted to make sure you understand what you are getting into, because they aren't investments that I would be comfortable with.

          Watch 30 for 30 broke. Many retired athletes buy restaurants just because they can, but it rarely works out well for them, because they aren't prepared to manage them.

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            #6
            Sounds good I'll check it out tonight!

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              #7
              I'm going to take proper precaution to ensure I'm successful. Failure is not an option.

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                #8
                Since you have restaurant experience and are aware of a restaurant that is 'struggling,' I suggest you spend as much time as possible in your off, not working hours, at the restaurant to see if you can identify the problems and at least intellectually list what exactly needs to be done, in what order, at what cost to turn it around. I don't know a thing about restaurants but I'd check out location, access for cars, target clientele since location problems can't be fixed.

                In your judgement is...menu appropriate to clientele, menu costs appropriate, how flexible supplies fit menu, how the staff gets along/cooperates, honest [not skimming], obvious management conflict/issues/staff co operation/teamwork, how the food looks/plated since we eat with our eyes as much as taste. How dishes are described in printed menu; how staff describes dishes. Is the chef trained [school] and competent? Is the place clean? Decor appropriate? Decor fresh/up-to-date? Bathrooms appropriate, clean, stocked, smell ok?

                We used to get Robert Irvine's Mission Impossible,' restaurant rescue TV show on Food Network for awhile. He emphasized decor and kitchen equipment the couple of shows I saw.

                Just some thoughts to move the process forward. I agree that being self employed has you working harder but with more satisfaction

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                  #9
                  i looked into starting some kind of restaurant business years ago before i got into RE, my research scared me out of it. i calculated how many meals i would need to sell just to make the rent, utilities and insurance, the number was astonishing. i would be working for the landlord and the other expenses before i would take a single dollar to my own pocket. of course a resturant can be very lucrative but a lot of variables must fall into place - food must be good and it must be priced well to get the business needed for good cash flow.

                  in my opinion times are getting harder for restaurant owners, the few restaurants i frequent have been raising prices slowly and steadily over the past 4 years, food cost is getting out of control for them. a chinese take out i go to has drastically cut down on the meats in the chow mein and all other dishes, it is noticeable and i find myself going there less and less. i feel any brick and mortar business is risky business, i prefer some kind of service business

                  make sure you do your homework, you can stand to loose a lot of money if variables are not aligned, just my opinion.
                  retired in 2009 at the age of 39 with less than 300K total net worth

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                    #10
                    Thanks for the amazing insight!

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