HawgNationBBQ
Take a breath!
FACTS and a BALANCE SHEET need to be what guides your decisions, not feelings and emotions,
"pat on the backs" or "atta boys" from friends and families.
Well said^^^^
FACTS and a BALANCE SHEET need to be what guides your decisions, not feelings and emotions,
"pat on the backs" or "atta boys" from friends and families.
I don't agree with the "Start small" or the "Grab and go" strategy. You need to do what the customers want, not what you want. IMO people won't take you seriously if you have short hours, no tables, and a limited menu. If I was going to start a business I'd be looking to make a lot of money. You can't do that with a small, carry out only, limited hours joint.
Yes I know there are exceptions. Good luck with that.
Just as a counter point, some of the best new BBQ joints in Austin are operated out of a trailer. A local paper did an expose on them this past year. In brief, they cook a set amount of food for the lunch crowd. One of them, "Franklin's" has people lining up a full half hour before he opens the window. He smokes a certain amount of pounds of product, sells it at a trailer that is parked in parking lot of a local business, and closes the window when all the food is gone. AND... it is ALWAYS GONE! People wait in line for 30 minutes too for the food, reminder now... this is waiting in near 100 degree TEXAS heat! He is looking now for a small brick and mortar, but he wanted to try his entry this way to see if he would have success. I personally think an operation like this is an ideal set up. There is a PROFIT every day, RISK are MINIMAL, and he is GROWING his business at a SMART pace. Not everyone has the funds or financing ability to start with a committed industrial lease and other aspects for expenses of a larger operation. Numbers speak for themselves, regardless of what one "may" want, vs. what one "can" have.
Like I said there are exceptions, and I'm sure these new guys are doing very well. But I'd bet there are a few trailer guys out there who never got the attention of the local media and went away too. I was one.
There's also a lot of attention to "Food Trucks" these days but I wonder how that will all shake out five years from now.
I think many want to start small because they really don't know anything about running a restaurant. But IMO if you don't know anything about running a restaurant you shouldn't open one.
I've been through this many times on the net. All I can tell you is I personally left a lot of blood, sweat, and money on the ground one time trying this but nobody wants to believe it. It's gonna be different for them.
We hear many stories of start-ups doing well, but then many of them disappear. They never come back to tell the story of closing and paying the debt after they're done.
Like I said there are exceptions, and I'm sure these new guys are doing very well. But I'd bet there are a few trailer guys out there who never got the attention of the local media and went away too. I was one.
There's also a lot of attention to "Food Trucks" these days but I wonder how that will all shake out five years from now.
I think many want to start small because they really don't know anything about running a restaurant. But IMO if you don't know anything about running a restaurant you shouldn't open one.
I've been through this many times on the net. All I can tell you is I personally left a lot of blood, sweat, and money on the ground one time trying this but nobody wants to believe it. It's gonna be different for them.
We hear many stories of start-ups doing well, but then many of them disappear. They never come back to tell the story of closing and paying the debt after they're done.
I don't agree with the "Start small" or the "Grab and go" strategy. You need to do what the customers want, not what you want. IMO people won't take you seriously if you have short hours, no tables, and a limited menu. If I was going to start a business I'd be looking to make a lot of money. You can't do that with a small, carry out only, limited hours joint.
Just as a counter point, some of the best new BBQ joints in Austin are operated out of a trailer. A local paper did an expose on them this past year. In brief, they cook a set amount of food for the lunch crowd. One of them, "Franklin's" has people lining up a full half hour before he opens the window. He smokes a certain amount of pounds of product, sells it at a trailer that is parked in parking lot of a local business, and closes the window when all the food is gone. AND... it is ALWAYS GONE! People wait in line for 30 minutes too for the food, reminder now... this is waiting in near 100 degree TEXAS heat! He is looking now for a small brick and mortar, but he wanted to try his entry this way to see if he would have success. I personally think an operation like this is an ideal set up. There is a PROFIT every day, RISK are MINIMAL, and he is GROWING his business at a SMART pace. Not everyone has the funds or financing ability to start with a committed industrial lease and other aspects for expenses of a larger operation. Numbers speak for themselves, regardless of what one "may" want, vs. what one "can" have.
Great points Cha-Cha. Curious, is this your first business venture or have you run a business prior?
I've been reading & thinking about this thread (& others here with similar tone) for a bit so this may be a little long winded. Just want to share my personal experience in running a small grub & go joint in upstate NY.
I'm guessing Ray borrowed a shed load of cash so he could open a big sit down place with a large staff & a menu not focused solely on BBQ. I'm also guessing his overhead & debt load made it impossible for his place to succeed.
Perhaps had he set out to make a living instead of "a lot of money" he might have seen the wisdom in starting small, keeping the menu tight & focusing take out.
Low overhead & the possibility of capitalization without having to borrow.
I opened Cha Cha Hut BBQ in Roxbury, NY in January 2010 with an initial investment of around 30k. That's right - a Q joint in upstate NY opening in the middle of winter. Kept it small & simple - take out with 10 seats for any one wanting to stay & eat. No staff - me & the wife with a local kid on busy weekends. Wednesday - Sunday 11am - 8pm. My kitchen consisted of a few commercial fridges, a small freezer, stainless prep tables, 3 bin stainless sink, stainless prep sink, hand sink, wire storage racks, a commercial stove with oven & a couple of heated holding units. Two Backwoods Smokers in a shed out back. I basically designed the joint like a mobile rig in a building. I rented the building so anything like roof issues were taken care of by the landlord. (If the landlord is not covering major structural issues in your lease - you need a better lease. Always have a lawyer review before signing.)
My menu?
Pulled pork, beef brisket, smoked turkey, pork spare ribs, pig wings (rib tips), smoked mac & cheese, bbq beans, a couple of slaws, a soup of the moment, a side of the moment & a dessert of the moment. Sweet tea, lemonade & water for drinks.
We did everything Ray says destines us for failure. I guess we were the exception.
We started beating the sales projections in the first week. By the end of the first month, we completely re-tooled the business plan as we discovered folks in this area wanted:
1 Good BBQ (we're the only joint in about a 50 mile radius)
2. Inexpensive grub (our prices start a $6 for a pork sandwich)
3. Take out
Yes - people ACTUALLY want take out. (Hence the reason take out/fast food is still doing well even in the recession.) They will also pay attention to when you're open if you advertise, set clear hours & serve great food. Spent a bit on newspaper ads, but word of mouth & the internet became our best marketing source. We were doing about 35 - 40% net profit rolling into the summer (the area's biggest season).
Then - the Tuesday before Memorial Day - we had an electrical fire. Lost everything. Lesson learned: you never have enough insurance. Also - make sure to continue to update your insurance as new equipment is added. We did not do that - though to be honest we were only up for 4 months.
We've spent the summer doing Saturday gigs out of our front yard (a couple of tents & some picnic tables - take out about 80%) while working to open in a new location. (Unfortunately, the landlord of the original location has chosen not to rebuild. So, we're moving the joint to a new town about 20 minutes down the road.) We've continued to do steady business & have actually increased our clientele. Mailing list increased 30% & the Facebook page doubled in fans & traffic. Most week's found calls starting on Wednesday (when the newspaper ad came out) to pre-order food. We encourage folks to reserve food (especially ribs) as we cook a limited supply.
Our new space is rented in the back area of a local general store & my lease covers utilities & building maintenance. The kitchen & smokers will have the same basic set up as the first Hut. Yes - there are a few more tables if someone wants to take their food & sit plus a lunch counter with stools, but take out will still be 80% of my business. I am counter service only - order here/pick up here. The whole joint s around 800 square feet & will be run by myself, my wife & the occasional weekend kid. Thursday - Sunday noon until 9 or 10pm. Same laser focused menu. Nothing but BBQ.
The cost for re-opening? Essentially covered by the insurance.
I've invested about as much money as someone looking to put together a vending rig. My menu sticks with a limited amount of items to keep food & equipment costs down. If it's not BBQ or BBQ related it is not going on the menu. Burgers, hot dogs, fries & chicken tenders have NOTHING to do with BBQ. Their exclusion also remove the costs associated with a fryer & grill. Trying to be everything to everyone is precisely the reason so many restaurants fail. Trying to do what the customer wants is a losing battle. Every customer wants something different. Stick to what you do best - & if you're opening a Q joint that had better be BBQ - and you'll never disappoint any customer stopping in to get BBQ.
After all - if they did not want BBQ, why the hell did they come to Q joint?