Open a BBQ restaurant, they said. It will be fun, they said

[markrvp]

I grew up in a small town similar to Niles and provided cable TV advertising services for local businesses. On several occasions I witnessed small restaurants who did a killer business make the decision to go to a bigger facility. All of them went out of business within 2 years. One of the things they never seemed to account for was the additional utility cost of the bigger building. More cost to heat, cool, etc. a larger area. Add to that the additional staffing cost, additional lease expense, and it doesn't work if the amount of people coming through the door doesn't also increase.

My $.02

 

[DUBBAGA]

So, my biggest competition in town closed its doors yesterday after 14 years. Famous Dave's. I've got my eye on that building. You never know.

 

[icebox114]

That right there is hilarious. Well played DUBAGGA!

 

[deker0]

I absolutely agree with this thought process. Utility bills and staff will definitely increase in a larger space.

However, reading the reports that he usually sells out in his current location by 6 PM and still has people waiting is a very good sign.

His food is in high demand and as long as he properly informs people about the move to the new location (I would think keeping two locations relatively close to each other would NOT be wise), then his regulars and newcomers will make the trek to his new spot.

That being said, he will of course run the numbers financially to see if it makes sense. Plus, he owns his current property, so he can lease that out to another business and make some money there too.

I grew up in a small town similar to Niles and provided cable TV advertising services for local businesses. On several occasions I witnessed small restaurants who did a killer business make the decision to go to a bigger facility. All of them went out of business within 2 years. One of the things they never seemed to account for was the additional utility cost of the bigger building. More cost to heat, cool, etc. a larger area. Add to that the additional staffing cost, additional lease expense, and it doesn't work if the amount of people coming through the door doesn't also increase.

My $.02

 

[Teleking]

I absolutely agree with this thought process. Utility bills and staff will definitely increase in a larger space.

However, reading the reports that he usually sells out in his current location by 6 PM and still has people waiting is a very good sign.

His food is in high demand and as long as he properly informs people about the move to the new location (I would think keeping two locations relatively close to each other would NOT be wise), then his regulars and newcomers will make the trek to his new spot.

That being said, he will of course run the numbers financially to see if it makes sense. Plus, he owns his current property, so he can lease that out to another business and make some money there too.

Keep the existing location dedicated to catering.

 

[PatAttack]

Sounds like the start of a chain or franchise!!:shock::idea:

 

[hockeyfox]

It sounds like they killed their own business - but you could really take advantage of the opportunity to grow yours.
Sounds like good timing!

Yep, my local Dave's closed down about a month ago.

 

[deker0]

True, good point. The original location could be used to handle all of the catering orders that come in.

 

[Teleking]

True, good point. The original location could be used to handle all of the catering orders that come in.

Create a whole new DBA or LLC and separate the financial liabilities.

 

[oifmarine2003]

Create a whole new DBA or LLC and separate the financial liabilities.

Stay away from the DBA. If you want to separate your liabilities, the DBA will not cover you. DBA is "doing business as". Basically, another name for your corporation or LLC to go by but still the same company legally.

 

[SlowSmoked]

So, my biggest competition in town closed its doors yesterday after 14 years. Famous Dave's. I've got my eye on that building. You never know.

Go take that building! Famous Dave's is so bad :clap:

 

[Dauvis]

Go git it! You've killed their business, now time to go occupy their home!

IMHO, I think he should only do it if and only if he is able to get their smokers. I suspect that they are going to strip it down and sell the assets.

 

[Teleking]

IMHO, I think he should only do it if and only if he is able to get their smokers. I suspect that they are going to strip it down and sell the assets.

I've eaten there once. Bad smoke on a brisket sandwich, you don't want that smoker. Never been back... Blah. Not to mention I'm shocked that the prized pig came in below crappy Daves.

 

[Memphis Que]

Expanding simply for the sake of expanding is the surest way to kill a small business. There is a huge difference in having people lined up out the door at a small location like the Prized Pig and having people lined up out the door at a huge location like a Famous Dave's.

Take baby steps. You will end up in a big location at some point if that is where you are meant to be, but don't jeopardize what you have by growing too fast and taking on debt to get there.

 

[ejmiller]

Years ago, I worked in minor league baseball. The ballpark was old and too small and we had to turn people away some weekends. The owner hated that, but it seemed like it just added to the mystique of going to the games. It wasn't like other ballparks where you could decide at the last minute to go if you had nothing else to do. It was a big deal and you had to plan ahead. They probably call it perceived value (or something like that) in marketing. The Prized Pig seems to be in a very similar situation now and I'd be very careful about changing that.

 

[Kyle Serlington]

Years ago, I worked in minor league baseball. The ballpark was old and too small and we had to turn people away some weekends. The owner hated that, but it seemed like it just added to the mystique of going to the games. It wasn't like other ballparks where you could decide at the last minute to go if you had nothing else to do. It was a big deal and you had to plan ahead. They probably call it perceived value (or something like that) in marketing. The Prized Pig seems to be in a very similar situation now and I'd be very careful about changing that.

wow, i'm from binghamton and i wish we had a problem like that! we have the AA team for the Mets and our attendance is the worst in the league, and that's even with the team making the playoffs for the last 3 years!

 

[Dauvis]

I've eaten there once. Bad smoke on a brisket sandwich, you don't want that smoker. Never been back... Blah. Not to mention I'm shocked that the prized pig came in below crappy Daves.

Is it the smoker or the cook? Then again this is assuming that they actually use a smoke that is not in a liquid form :wink:

 

[landarc]

Is it the smoker or the cook? Then again this is assuming that they actually use a smoke that is not in a liquid form :wink:

It can be both at a commercial level. Especially if the smoker has been poorly maintained, which is often the case in a declining business situation. Of course it can be cleaned and restored, but, that is often a pricey solution.

 

[Pyle's BBQ]

Are we sure they have smokers at Famous Dave's?

 

[Demosthenes9]

Are we sure they have smokers at Famous Dave's?

Yes, they have very nice smokers at Famous Dave's. If run properly, they put out a great product.