Live data from Hacker News

I poured my blood, sweat and life savings into my restaurant. It ruined my life.

torontolife.com

71–80 of 190 posts

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#71

The first big red flag for me (besides that the whole thing pretty obviously started as a mid life crisis) was how little time it sounds like he spent working at his friend's bar in the three months he needed to put in to qualify for the liquor license. How could he not take that seriously as an opportunity to learn about the industry? I would bet money that the answer is he was afraid to learn that running a restaur…

Agreed. His plan might have worked if he was a millionaire and hired an expert to do all the stuff he didn't know how to do, living off savings until the place got profitable.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#72
post #60

Earlier quoted context omitted.

To keep employees from walking off with the cash.

Is this really that a factor with 24/7 surveillance and legal repercussions for theft? I mean...you're making it sound like it is, and I believe you but it's just so hard to people employees are that stupid.

Yes it's a big factor. Walmart employees, watched by 37 cameras from right over their heads, will still steal cash from the purchase flow. For an organization their size, it's a big problem. You can guess the kind of people you often get for $11 per hour, when you need a million of them (ie 1% stealing means you've got 10,000 people stealing from you).

Not much has actually changed regarding this structurally, the surveillance has been there for 30 years and the legal aspect forever. Desperate and or stupid people, do desperate and stupid things. What has changed, is Walmart now has dramatically less cash flowing through it at the point of sales (due to cards or Walmart Pay et al). Merchandise theft is by far the bigger problem these days for Walmart. The same goes for places like liquor stores (which used to be an extremely cash heavy business, but now are mostly cards).

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#73
post #27

Earlier quoted context omitted.

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…

That's correct. It worse now that a motivated irate customer can magnify the damage to small restaurant with only a handful of bad reviews.

I worked in a few kitchens for a few years. I regularly read reviews on yelp and I would say that near half of the negative "reviews" that showed up on there that pertained to what I myself witnessed or pertained to the kitchen were mostly to totally unfair. The one's that were fair I owned. One of my favorites: one star review for not being seated without a reservation on mother's day. Another favorite review: "I've been a regular here for quite a while and love this place but my porridge was too cold this one time: one star." Another gem: "Food is A+, waiter only refilled our water once: one star." (Pretty much any negative review that centers on waiters can be disregarded; they don't want to eat, they want to be served). I also witnessed outright lies by apparently angry and, I assume, tortured miserable people who were looking to be displeased in every realm of their life. You find those kinds of people in fine dining a lot, rich entitled pensioner types with no respect whatsoever. Unless there's a major sanitation or corruption issue on yelp reviews I take them about as seriously as youtube comments.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#74
post #28

Having started a software business with too much optimism and too little business knowledge myself, and failed, I seriously have no idea how people start successful restaurants at all these days. No matter what mistakes he made, I feel for the guy, and the thousands of people every year trying to get a restaurant off the ground and ending up bankrupt. Aside from marketing, the initial costs of getting a SAAS business…

You'd think that you'd work at a restaurant a little while before trying to start one. Learn the ropes a bit, etc. That has got to help with your chances of success.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#75

The first big red flag for me (besides that the whole thing pretty obviously started as a mid life crisis) was how little time it sounds like he spent working at his friend's bar in the three months he needed to put in to qualify for the liquor license. How could he not take that seriously as an opportunity to learn about the industry? I would bet money that the answer is he was afraid to learn that running a restaur…

Even worse, he took $20,000 from an old friend and burned through it. And then began borrowing money from family and in-laws.

His lack of financial planning was the most astonishing part of the story to me, even more than the naive optimism around starting a restaurant which seems to be a trap lots of people fall into.

Chancing your family's meager nest egg on a long shot gamble when you have a wife, kids and a mortgage is shockingly negligent.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#76
> In 2011, I applied to operate a booth at the Toronto Underground Food Market [...] my fingers cramping so severely from peeling 100 pounds of potatoes that I almost called 911. [...] I lost money

So his first experience was extremely painful, almost landed you in the emergency room, and you lost money on it. What valuable lessons he learned going forward?

> I didn’t care.

None.

> Eighty per cent of first-time restaurateurs fail. I knew this. Opening a restaurant was the least sensible, dumbest thing I could do. My wife, Dorothy, a daycare worker, was coasting toward the end of a maternity leave, and we had two kids to feed.

It's so rare to see people brag about being reckless, irresonsible, and wasteful of resources they cannot afford to waste.

> “Are you sure you want to do this?” he asked. “I don’t think you know what you’re getting yourself into.”

Friends who knew what they were talking about tried to warn him off.

> My shifts consisted of a few leisurely hours chopping veg and prepping salad dressings.

Any opportunity for experience is to be strictly avoided. "The law says I need to know how a restaurant works? I know better!"

> My role was largely symbolic anyway

No it wasn't.

> As it turns out, no one invests in first-time restaurateurs, no matter how mind-blowing they think their cooking is.

Man, I wonder why? More to the point, it's clear he never did.

> I realized it was far from the downtown foodie scene [...] Admittedly, I had an ulterior motive: the place was a 10-minute walk from my house and close to the girls’ school

He purposefully chose a bad location, knowing it was a bad location, because it was convenient for him.

...I've got to stop reading, this is actually enraging me. It's so dumb, and he seems so proud.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#77
post #11

I don't want to sound mean, but... he has a well-thumbed copy of Kitchen Confidential and did this anyway? Because one of the things I remember most strongly from that are the stories about people who imagine fondly they'd like to own a restaurant, and it always ending in tears. (Also I'm bemused as to why the opener suggests red tape was a problem.)

Seriously. That and the sheer draining drag of chefing and Bourdain's desire not to die of a heart attack next to the fryer. The whole book portrays restaraunteering as a brutal, taxing business and even contains profiles of some clueless owners.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#78

Pretty much every restaurant owner I know is in the same situation - maybe not quite as bad - but generally they have at least one total nightmare horror story about a restaurant they owned that burned down/got shut down/went bankrupt. I find similarities to being a founder in a super risky high tech startup - but with higher possible payoff. Yet, I don't hear a chorus of bar backs, dish washers, servers, hosts and c…

The tech industry is basically printing money, so we workers can afford to be picky about the conditions we choose to work under.

Restaurants are ultra-competitive and have very thin margins, so people who work there can't.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#79
post #60

Earlier quoted context omitted.

To keep employees from walking off with the cash.

Is this really that a factor with 24/7 surveillance and legal repercussions for theft? I mean...you're making it sound like it is, and I believe you but it's just so hard to people employees are that stupid.

In a word: yes.

Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.

#80
post #4

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…

Please god, if i had a choice between amazing food or consistency I would choose consistency. Too often I've had some absolutely amazing meals, and the next day the chief is different or the staff is different and that amazing meal is now sub-standard and pisses me off.

At some point in your life `Money` isn't really a problem anymore. What is more of a concern is the quality of the experience and the food. Considering if you've had a good, over-all happy meal then you don't think about the money and cherish the experience. On the other hand if the experience and food is sub-standard or poor then you hate it more because not only have you wasted your money but you've wasted your time and also other people time.

One thing I would say to restaurant owner's is procedures, standards, and having consistent meals is more important than anything. When taking my family out to a restaurant I just recently had a investor meeting with and the food is amazing and then the food is sub-standard then I feel cheated.

Post reply on HN