Any tips for a BBQ Restaurant entrepreneur????

[smokeemifyougotem]

Howdy all,

I was laid off from my job the other day and am starting some research on opening a small BBQ joint - notice I'm not looking for restaurant here - maybe a few tables - but hope most people to go elsewhere to eat. Locations I have been thinking about would be close to large office parks - probably located in a strip center.

Anyway - just an idea I have. I realize this will not happen overnight but would like all the tips/pitfalls I can get from a knowledgeable bunch.

Let me know what you've got - any ideas are much appreciated. My dream is to be able to stay out of the corporate world FOREVER!

Thanks!


Smokeemifyougotem

[brdbbq]

Know there is posts on it but can't recall where ? Sorry you where laid off and I can relate to the coporate blues. My problem is I have been there so Damn long they would have to run me out on a rail. Yes it has been tried a time or to. Most recently last summer.

[BBQchef33]

Corporate America sucks.. we all know that. I bailed on it a while back and after 9 months was goin goofy. I too looked into the BBQ shack concept, even had the place picked out. Then Dave Little(DFlittle) smacked be around with the baseball bat of reality. So hold on and wait for Dave to read this.. he will give ya the earfull ya need and point you at osme of his posts that give all the details, licensing, certification, board of health regulations, food service, etc.... search the forum on a few buzz words like those and you'll find alot of info allready here.


& welcome back!!! .. where ya been??

[Arlin_MacRae]

Well, I have a couple of things, because I don't carry that bat of reality around with me much. ;)

We had a new Q joint open up earlier this year and the first visit proved to be a good one. Great food, better service, and the owner talked Q.

The second visit proved disastrous. The meat was...old, the service SUCKED, the place was dirty, and the owner was nowhere to be seen. We vowed never to go back, but we didn't have to worry as it went out of business a couple of months later.

That place didn't last a YEAR because, I'm assuming, of the neglect of the owner/manager. What started as a promising hang-out turned into another place for deadbeat employees to hangout.

*I* say you need good grub and great service. The owner's touch (literally) goes a long way toward making folks feel like they want to come back.

Whether you start a place up or not - there's your answer.

Sorry about the job, man. Hang in there. More people than not have turned similar predicaments into better lives...

Arlin

[tommykendall]

I'd add (and not because I've ever owned one, but through observation), keep it clean (like Arlin said). Also keep it real simple - a few small tables like you said, or a counter that runs the perimeter of the place with stools, or school type seats. You don't need oficial waitresses. Get to know your customer - talk to them like their Brethren. Keep your costs down, your prices right, your food great, and your service superior. Easier said than done - just do it.

[parrothead]

Give it all ya got!. Plain and simple!

[Wayne]

If that is what you want to do the I would first look into working for a BBQ restaurant first. It might not pay much but it might help you make a better decision. The other thing to do is to contact the Small Business Administration. There is a group of retired business executives that advise people that are interested in starting a new business for free. Catering services might also be something to look into. There are several catering services in Wichita that make pretty good BBQ. You can also get help with a business plan at you local Kansas Regents college or university. I did this one semester while I was in graduate school at Pittsburg State.

[chad]

I'll try and post something tonight! I'm in the process of losing my butt trying to get a business going so I'll have to think about a response rather than let it fly!! :D

Off hand:

1. Learn something about the restaurant business - food cost, equipment, etc.
2. Bankroll - how you going to finance it? Personal credit is just about the only way until you have a track record - even the much vaunted SBA will not talk to you without 2 years of books!
3. Get excited!

I'll post more later.

[smokeemifyougotem]

Thanks guys - good info so far. Looking forward to more from David.


Smokeemifyougotem

[chad]

While I'm waiting for a job to run I'll add to this thread:

Get a couple of books on starting a restaurant or catering business. Check at your local library - they will usually have a couple. This will give you and overview of the paperwork, licensing, etc. that will get you started.

The SBA program for mentoring is good - but only if you can find a mentor that knows something about the food business (my opinion!).

Start thinking about $$$. Loans, personal credit, cashing in CDs, whatever. It doesn't take much to setup your "business" (state tax number, Fed FEIN, local DBA (name alias) registration, etc. But, if you start looking at leases, buying existing businesses, partners (run away!), you start seeing how difficult it is to get the inertia working for you.

What kind of cooker do you want/need? I'm sorry, but a Bandera just won't cut it! Southern Pride makes great units - they are made for inside installation and will help with the hood designs and such.

Work on a business plan - if you can't find one of the programs at SBA or Chamber of Commerce or whatever - get a book. At least try to get your PLAN down on paper - it's not written in stone and will be a work in progress. The business plan I wrote (and am still writing) is harder than any resume I've ever had to do -- it's especially hard with a business startup because you are crystal balling EVERYTHING!

Do try to work in the food business - not necessarily BBQ - but definately full service or family places. You'll see what's involved in ordering, costs, labor (if you're doing a start up stay away from employees - if you can't start it by yourself you probably can't afford to open your doors!) Your idea of a walk-up/carry out lunch place is probably right on target.

I'll try to write more later. This stuff is off the top of my head so please take any/all of my advise with a grain of salt.

[smokeemifyougotem]

Hey David - thanks for the info - if you have anything else - please share it.

I have worked in the food business a long time ago and worked for a foodservice broker dealing with SYSCO before working for Heinz Foodservice. I do have some idea of what is involved but I definitely need to read some books.

Can anyone give me any ideas on food cost for say - Pulled Pork, Brisket, and nice Turkey Breast sandwiches. Without putting any research into it - I am estimating my cost on these would be somewhere in the range of $1.00 per sandwich including pickles, sauce, bread - please let me know if I am way off.

David - do you make your own sides or do you buy them? I know I am forgetting a bunch of stuff as well.


Smokeemifyougotem

[spicewine]

Just wanted to put in my 2 cents worth. I was a Restaurant Manager for 13 years. It would be great if all you had to do was cook and serve but the things to consider are more of an administrative issue. Keep in mind all of the paper work hoops that you have to jump through, personnel issues, tax issues, health and safty issues, insurance, payroll, withholdings and withholding taxes ect. Get a good C P A and alot of these problems can be solved. Above all , be resiliant, flexable and willing to put in the time. It will all pay off if you set your goals and stay at it. Good Luck to you!

[chad]

I agree with Spice! The admin stuff will eat you up if you don't stay on top.

Little things like undestanding what the health inspector needs and expects to find, who does the health inspection (county, city, state?), where do you get your business license? How much.

Withholding for your fed, state, sales taxes, etc.

Go ahead and get your safe food certification - most states require at least one manager to be certified.

Food cost and pricing is problematic in that your market will determine what you charge as well as what you need to make a profit. Add everything up in the product: meat, bun, sauce, salt, pepper, pickles, wrapping or box, etc. -- to find out what the product costs you to produce - some then just triple or quad the cost others use a percentage. So, if it costs you a buck for the product you could sell for $3-$4 and make a decent profit - but is that in line with other eateries in your area? Don't try and sell cheap unless you want to stay cheap and do volume.

I think the general rule is to try and stay under 35% for food costs on most products -- pork sandos and chicken are easy to keep affordable and still make percentage - right now beef is harder and ribs are always going to be higher - unless, of course, rib prices fall - especially babybacks.

Remember these are just my thoughts and stuff I run the figures on regularly.

I usually buy my sides - especially coleslaw potato salad - I don't have a chopper/shedder for the slaw and I hate peeling potatoes! If you have the equipment it's nice to make your own - but factor your time into the equation. Also, it's easier to carry over a case of salad another day - unopened - than to determine whether that potato salad can go another day. I make my beans and some other stuff.

When I'm catering I sometimes make everything - but if it's over 100 people I look for the best products I can bring in to meet my cost estimates.

[kcquer]

gotem, I'm gonna echo the earlier comments on quality. This is especially important in a market as Q saturated as KC is. A class mate of mine sold her Q resturant about a year ago, the new owners didn't maintain quality, my class mate got her resturant back just this month.

Don't be shy about pricing, I'm terribly guilty of this in my business, be proud of your product and charge accordingly.

Sounds like you're targeting a lunch crowd, sound idea. There are a lot of lunch only establishment around the Courts and other govt. offices in KCK, some of them have been there a long time, they haven't stayed open because they're losing money using your plan.

Let us know if you take the plunge, I'll make the drive to support a Brothers Business. Best of luck!

[cayenne]

I think back when I was doing restaurant work...we shot for 30% food cost...
You make most of your money on alcohol and sides....hehehe...french fries are HUGE money makers.

But, yes, there is a lot to look at. Contact the health dept and get info from them on cleanliness regulations. The setting up of a business is not hard...I just incorporated myself as a subchapter "S" corp...hoping to use it soon to contract myself out (computers for now, not food)...and definitely contact the SBA. With a little research, you can find $$'s out there for startup businesses. If you can get your wife to be 51% owner or are a minority yourself..you can get gov. dollars for business, and I think tax breaks. Look into this.....especially for start up loans.


Good luck...I've also daydreamed about doing a BBQ joint....but, gotta get better at it. And frankly, while I loved working in the restaurant business in my younger days....I dunno if I want to do it for a living. If I won the lotter and didn't have to work for a living, I'd probably do it...for fun, but, I found the stress and hours are a bit much if doing it for a living.

Hey, good luck, please keep updating as to your progress!! Good luck on the small business, its what makes our country great...and I think we all wanna get out of the corp. struggle...

Cayenne

[smokeemifyougotem]

Thanks Brothers - Good stuff - keep it coming!


Smokeemifyougotem

[midnight]

I agree with DF on the side dishes. Stick to what your good at and cook Q, buy your sides and save yourself alot of time and effort.

Are baked beans realy a side dish? I think they are just as much a part of bbq as the meat, so if you have a good bean recipe go ahead and make them yourself.

Don't forget about the quality of you ingredients (including meat). Buy the best that you can afford, the difference can be huge! ( I learned this one the hard way, ended up giving away 150lbs of ribs!)

Good luck!

[BigAl]

Thanks Brothers - Good stuff - keep it coming!


Smokeemifyougotem

If you were here, I would take you over to see Jabo, he is working 14-16 hard hrs a day. He had a parking lot Q thing going, but the lot he was working was sold and he opened a joint and now is now clearing less than what he was due to the overhead. He does it, because it is the only thing he knows. He took over from his Dad who began in KC and later moved here.

After three years of being laid-off, I finally have found a good thing. Take a look, it might be good for you too. Watch the video on the "Make Money" page.
www.deliveringonthepromise.com/awilmer

Good luck to you.

[smokeemifyougotem]

Thanks Al,

Good to hear from you - I'll check it out. Any more ideas out there?



Smokeemifyougotem

[BigAl]

Any positive direction yet?....This week, I got a reject from someone I applied with months ago. Sitll not looking good for corporate jos, but checks are comming in from AmeriPlan.