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…
I poured my blood, sweat and life savings into my restaurant. It ruined my life.
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Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.
#72Earlier 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.
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.
#73Earlier 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.
Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.
#74Having 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…
Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.
#75The 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.
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.
#76So 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.
#77I 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.)
Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.
#78Pretty 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…
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.
#79Earlier 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.
Re: I poured my blood, sweat and life savings into my restaurant. It ruined my life.
#80Running 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…
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.