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Posted by Gil Faver on January 27, 2008, 5:06 pm
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>
>>A CPA in Vermont told me to make sure you have enough tables so that
>> you can really run the volume on Friday and Saturday nights. I like
>> that. In any business, be ready to run the volume, emotionally,
>> financially, that the fundamental idea is sound, that systems are in
>> place, with coaching and leading a team, etc, etc.
>>
>> I have also heard that it takes about a year to build up enough of a
>> customer base to start making money. That I question. People are
>> curious about a new restaurant, so much so that you may want a soft
>> opening and then a publicized grand opening perhaps two weeks later.
>>
>> I do agree that it might take longer than you think it does, and that
>> under-capitalization is one of the biggest reasons for small business
>> failure. And currently, I do not have enough money to open (or buy) a
>> restaurant, so it's something for perhaps down the road.
>>
>> I have worked in different Italian restaurants as a delivery driver, a
>> cook, a waiter, but never as a manager. So, my idea is to delegate
>> and hire a manager for the middle tasks. I will work some shifts as
>> waiter, other shifts as cooks, both to stay connected and also to lead
>> by example. Heck, I'll even clean the restrooms once a week
>> (approximately my fair share), and that will really be leading by
>> example. At the same time, I'll do the ownership tasks of promoting
>> the business, scouting the competition, keeping up with industry
>> trends, the very important tasks that are often neglected because so
>> much time is eaten up by day-to-day management. And I'll spot check.
>> Yeah, you need systems in place to keep honest people honest, and to
>> make it difficult for dishonest people. But any static system can be
>> beaten. It helps to have a curious owner who's poking his nose here
>> and there.
>>
>> Still, with all this, I understand it's an enormously difficult
>> venture to actually make a profit at. And I'm not sure I understand
>> why. It's a value-added business, price is always a consideration for
>> customers, but it's not the primary consideration in picking a
>> restaurant, so you do not find yourself directly competing with large
>> corporations. You do, but it's in areas where corporations behave
>> more awkwardly. You can almost compete advantageously. A corporation
>> is like a large lumbering animal whose joints don't quite work right,
>> and it occasionally falls over. I've seen some pretty poor management
>> in restaurants, so I'm thinking, of course I can do better. Now, I'll
>> probably make other mistakes. But as long as I start with enough
>> money, I can get past the mistakes. (The only fatal mistake is
>> running out of money.)
>>
>> So, please talk to me. Tell me how to do it!
>>
>> -Doug
>
> 1. If you want to delegate and hire a manager for the middle tasks, why
> do you want to spend your time cleaning the bathroom? Delegate more of
> that and spend that time on middle or upper tasks.
>
> 2. In my experience, leading by example doesn't work. I don't know why.
> But people have always been happy for me to do their jobs as I lead by
> example, and not learn from the example.
>
> 3. The new restaurant I recently worked at was a four star restaurant in
> an affluent area, dynamite food, and is still struggling. As far as I can
> tell:
>
> The chef-owner has a lot of experience and ability with food,
>
> He started the restaurant will little capital (I don't know how much, but
> certainly not the way a few others have started recently. But, I do not
> think those other restaurants will EVER recoup their investment. Not
> EVER).
>
> He hired a manager with a lot of experience in the high end restaurant
> business, in this area. But, perhaps he was past his prime. In any
> event, at some point the manager was let go and the chef owner spent a lot
> of time "learning" the middle management role, and getting things squared
> away. They were a mess. Lesson: don't count on just being able to hire
> this set of tasks away - be involved and know as much as the manager does.
> I always felt that you should be able to step into anyone's shoes, so you
> will know if they are doing their job, and will not be bamboozled by them.
>
> He hired a bartender with a lot of experience. I don't know what his deal
> was, but I have a feeling it was too lucrative (for the bartender), again
> with the assumption that the chef owner could just let this happen and not
> have to worry about the bar. That bartender is gone, and new ones in
> place, who are experienced, but younger and most likely with a different
> deal.
>
> He hired a sous chef who is not a sous chef. Maybe some day. But the
> sous chef is sure impressed with himself. He knows little about portion
> control, nothing about finance, and does not have a broad experience with
> food. He does what he does well, but that is by rote. I am sure he costs
> the chef owner less than a real sous chef would, but you get what you pay
> for.
>
> I know nothing about restaurant finances, all I know is that I don't want
> to own or run a restaurant. The biggest problems at this restaurant are:
>
> 1. not enough business. I don't know why.
>
> 2. not enough income, so lots of scrimping going on. Paychecks are late.
> We have run out of garlic. We have run out of parchment. etc.
>
> 3. not enough business, so not enough cooking going on. As an underling,
> I want to cook, not only prep. I don't mind prep, I got better at it, but
> cooking ZERO percent of what I prepped is no way to keep me around. Ditto
> for some others. I am sure turnover is to be expected, but it costs
> money. (on the other hand, turnover of bad, lazy, or self-impressed
> employees is a good thing . . .).
>
> 4. everyone has different ideas, and a different set of instructions. We
> wasted a lot of expensive beef because our sous chef didn't understand
> meat. The Chef owner was relying on this guy, so for six months there was
> terrible waste.
>
> I suggest you work more in restaurants, as you save up your money. Work
> in more and more capacities, and make lots of notes, talk to lots of
> foodies about all aspects of the business.
>
> and, I like your idea of "spot checking". I call that "management by
> walking around".
>
sorry, not really tax related. Based on the subject matter, I thought I was
in one of my food groups.
Doug, if you move this discussion elsewhere, please post so I can move along
with you and watch the discussion. thanks.
========================================= MODERATOR'S COMMENT:
Agree - this topic is closed
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