need advice on running a restaurant

S

silentnyte

New member
I recently invested me and my wife's money to start a restaurant business.

First month was crowded but making losses, spending on this and that.

Second month was crowded, probably only breakeven. Worked on the Menu and increased prices.

Third month was good, finally seeing profit on paper. But in actual I was broke, didn't see any income in my bank. I had like two figures money in bank and four figures in credit card debt after paying overhead. The net profit over sales was 20% for that month.

Fourth month which is this month, business affected heavily by a new F&B territory opening opposite my shop. That area has many new restaurants and coffee shops. This month should be a loss too.

I've been working on improving menu, food quality, marketing and cutting costs.

Dear business owners with experience, could you please shed me some advice? I think I have much to learn.
  1. Is not making monthly profit over four months normal? What is the right timeframe to expect for a restaurant to achieve consistent monthly profit?
  2. They said the bigger the menu, the more likely you don't make money. Is that true? My customer base seems to tire out over the food after four months and not return. I have to work on increasing the varieties.
  3. Any advice on how to build a successful restaurant business from scratch?
Could you shed me some light as I'm really broke now, money is running very tight. I'm even considering getting a job while still running the restaurant. Four months without income is really hard on me.

P/s: some people just want to show they know a thing or two without trying to offer you any solid advice. They just trying to boost ego without spending time to know what is your issue. "Hey you should have done this and that earlier." how is this advice going to change anything? "Go and get educated, look how successful I am" solid advice.

Some people drive uber and give you advice on how to run your restaurant. Mate if you are not qualified to comment, please don't. I already written I'm seeking advice from people with experience. "Go watch YouTube". Yes, what a great advice. Finding a solution that doesn't fit with my situation.
 
@silentnyte With all due respect, there are several signals that you were ill-prepared to launch.

“….probably only breakeven.” (Indicates you don’t know your numbers)

“….how to build a successful restaurant business from scratch?” (Indicates you don’t understand the business model)

“I'm really broke now” (Indicates you were undercapitalized to start with)

Now you have to deal with financial risk of capital loss as result of competitive and business operating risks such as generating sufficient gross sales.

For example, cutting costs is a tactic designed to improve efficiency not generate new customers.

Likewise, “I have to work on increasing the varieties.” This is something owners do when they are masters of core business. You are drowning.

Getting a job will not rescue the business. It will only shorten the amount of time to work on the business.

Your best hope is to engage professional restaurant consultant to determine if the business is worth saving and, if so, what is objective strategy, and how much is it going to cost.
 
@mcpugh You're not helping. Thank you for nothing. If everything could be done just by writing on paper, that exist only in utopia. People like you only good at criticising
 
@primsroses Wow. He is correct great. The advice taken here is what? The advice that could help me here is what? That if only I do this and that? Sorry bro, these what ifs don't help me feed.
 
@silentnyte Offer specials to help change up your menu. Imo, as an indie restaurant, best to own the building w/some apts. above to help offset costs. You don’t offer much info… where is biz, type of menu, u start from scratch or was the space already a restaurant, how much ‘invested’, r u the chef?, etc. What’s “F&B” mean? 20% net profit is very good. Something is ‘off’ somewhere w/the info u gave.
 
@silentnyte Some restaurants take 4/5 years to see any profit key is budgeting keeping cost low and keep staff and the part about a menu as a guest I like having a smaller menu but not to small but enough items also are you a solo proprietor or a corporate?
 
@showtime2507 Solo proprietor. I don't think 4/5 years to see monthly profit is logical. Almost no one will venture into such business if that's the case. What will people eat in those 4 to 5 years.
 
@silentnyte I am talking about next profit trust me I been in

restaurants my whole life if you mean revenue then you need to built it up. It takes along time to make a living also profits margins are small in the restaurant
 
@silentnyte How good is your budget that’s the biggest thing that comes to mind can you afford a cpa if so get one that can help with an strict budget Onces the budget and your labor costs are taking care of you should be able to see them coming in slowly also restaurants are one of the hardest business to own with no background in owning one
 
@silentnyte Are you utilising free sources such as Google and Tiktok to drive traffic to your restaurant? If you have data on your previous customers, you can use that to increase brand identity, it’ll take me forever to type it here and id love to show u on a quick call
 
@silentnyte These 2 answers show me you have no idea how much food inventory you have. Go watch a couple YouTube videos about running a kitchen. This is basic stuff here.

And the reason you are broke.
 
@silentnyte Lol I ran restaurants for over 15 years. You must have overlooked that when trolling through my post history.

It’s ok though don’t worry I have money my family is going to be more than fine. Uber is something to do when I need to get away from my family for a bit. Making 30 an hr is a bonus.

Your going to die because you have no idea how much food your throwing away. Hope your family can survive off of your smugness.

The funny thing is you prob didn’t even google what food cost is. Your problem is you think you know what your doing, but if your restaurant is not making any money do you know what your doing?

Someone points you in a direction and you don’t even google what it is. Instead you review their post history trying to deduce something about them.

Go sit down and google what food cost is and how to control it.
 
@coleson Yes. Go Youtube, that's the best answer for someone seeking advice. I bet I run a restaurant without knowing what is food cost is. I probably don't even know how to use excel.

Why do people assume I don't run a business earlier? Or that my wife makes monthly 5 figures? Oh ya because giving advice without knowing the context is more important right? "Let me give you advice, you don't know shit. Go educate yourself. Go youtube. Go google". That's trying to give half-hearted words without trying to commit to help.

Yes I'm seeking advice. But if you're not helping then could you please excuse yourself. I thank those that PM me and try to talk in depth and then give advice. Now let me and smugness excuse myself.
 
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