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> We had started with $60,000; after six weeks, we were down to $3,000, and there was still so much to do. I don't think he did nearly enough research into how much it costs to start a restaurant.
Approximately how much would you say it costs? Could he have gotten a small business loan?
Tech is easy money compared to what it takes to create a profitable restaurant from scratch. The author made the same mistake I’ve seen people make before.
This guy did no research at all and sadly this is extremely common.
> We had started with $60,000; after six weeks, we were down to $3,000, and there was still so much to do. I don't think he did nearly enough research into how much it costs to start a restaurant.
Approximately how much would you say it costs? Could he have gotten a small business loan?
Earlier quoted context omitted.
Approximately how much would you say it costs? Could he have gotten a small business loan?
An order of magnitude higher than 60k, if your goal is to compete in the market he was targeting. For 60k he could have opened a pizza or sandwich shop.
Running a restaurant is hard and unsurprisingly its even harder if you never have run one before. Staffing, food cost, vender management and health code malarky: these are some of the first things that make or break a restaurant. Then maybe location. Quality of food clearly doesn't make the list, at least not disconnected from price as Dominos, McDonalds and Starbucks succeed with high probability. Sad to see a vanit…
What McDonalds and Starbucks do well is produce consistent (though not particularly high) quality at a price people are willing to pay and with staff who are not coming on board particularly well trained or talented. They also systematize / automate a lot of the other things you mention.
Running a restaurant is hard and unsurprisingly its even harder if you never have run one before. Staffing, food cost, vender management and health code malarky: these are some of the first things that make or break a restaurant. Then maybe location. Quality of food clearly doesn't make the list, at least not disconnected from price as Dominos, McDonalds and Starbucks succeed with high probability. Sad to see a vanit…
A point that Gordon Ramsay makes is that consistency is more important than peak food quality for a restaurant. Occasionally serving bad food does way more harm than occasionally serving amazing food does good since many customers will not return after one bad experience and you won't establish regulars if your quality is not consistent. What McDonalds and Starbucks do well is produce consistent (though not particula…
Earlier quoted context omitted.
There was a Wall Street Journal article a few weeks ago that said banks were being far too lenient about giving out loans to restaurants and pumping money into an essentially dying, unforgiving market. I actually thought the WSJ was a little hard on the banks, since restaurants are so notoriously hard, but I wonder if this is more of systemic issue.
I really don't think banks give loans to restaurants. I'm gonna need to see a citation here.