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Fishfire
09-19-2011, 08:16 PM
Hi all I own a building on main street in the town that I live in. Its not a big town and it is seven miles from the largest town in the area. I have been thinking of opening a resturant in the building. My family thinks that I should sell the building and put the mony into a vending trailer. I am not sure which would be the best way to go if I go with the resturant I will have over head not much but some if I go with the trailer the mony from the building will pay for it all. Thanks for the help

jbrink01
09-19-2011, 08:22 PM
Trailer!!!!!!!!!!! Trust me, I have a trailer, HAD a store.

Boshizzle
09-19-2011, 08:30 PM
I don't know. Real estate is a valuable thing to have and increases in value over time. Why can't you get an equity loan and put it into a business that caters with a trailer?

Or, put the equity loan into a trailer. If the trailer thing goes bust at least you will still have the building and will be able to sell the trailer to recoup some of your loss.

Cook
09-19-2011, 08:36 PM
I don't know. Real estate is a valuable thing to have and increases in value over time. Why can't you get an equity loan and put it into a business that caters with a trailer?

Or, put the equity loan into a trailer. If the trailer thing goes bust at least you will still have the building and will be able to sell the trailer to recoup some of your loss.

No.

Do not borrow money to finance a restaurant. If you go the trailer route, sell your property unless you have the cash to spend. Pay for it lock, stock, and barrel.

Shawn
09-19-2011, 08:44 PM
No.

Do not borrow money to finance a restaurant. If you go the trailer route, sell your property unless you have the cash to spend. Pay for it lock, stock, and barrel.

Extremely sound advice there.

jbrink01
09-19-2011, 08:49 PM
The ONLY reason we tried a store is because it had ALL equipment in it and we had a very short term trial lease. We ran away after a good taste of it. My wife quit her job and we do just fine with a trailer. I'm thinking of a new one, wanna buy it? S&S 18' + FEC500, HD compliant.

SmokeOCD
09-19-2011, 08:49 PM
I don't know. Real estate is a valuable thing to have and increases in value over time.

:rofl:

With the trailer, if you're in a bad spot for business - you don't have to worry so much. You'll be in a new spot next week. :thumb:

azken
09-19-2011, 08:55 PM
Perhaps if you follow your detailed business plan the answer will be obvious.

Big Bears BBQ
09-19-2011, 08:58 PM
If it was me I would make sure that your going to make a go at it with the BBQ either way you go. Or just start out doing some vending and see what kind of business your going to have. You could keep the building and run some BBQ out of it for a test run and see how it goes............

Boshizzle
09-19-2011, 09:04 PM
:rofl:

With the trailer, if you're in a bad spot for business - you don't have to worry so much. You'll be in a new spot next week. :thumb:

Exactly. While you watch the value of the property you gave Up going higher while you kick yourself in the arse. That's hillarious.

Boshizzle
09-19-2011, 09:08 PM
Leverage your assets, bro. Don't pi@@ them away.

speers90
09-19-2011, 09:36 PM
If you are sure you want to make BBQ a business then I vote for selling the building and paying cash for everything you need to take a legitimate shot at it.

For what it's worth, I know that I am very conservative when it comes to financial matters. That being said, I own and run a small construction company with zero debt. I think that alone is what has kept me in business the past couple years while so many are struggling and even going out of business. My simple plan has been to keep overhead at an absolute minimum and grow as I have the funds available to do so. Granted, I won't be making six figures in the near future, but I am also not worried about going out of business.

Boshizzle
09-19-2011, 09:46 PM
The building isn't a restaurant. It is a tangible asset it can generate rental income while the owner pursues his dream. The rent income cam be used to help finance it. If it fails he will still own something that he won't have to sell for a loss on craigslist .

speers90
09-19-2011, 09:53 PM
The building isn't a restaurant. It is a tangible asset it can generate rental income while the owner pursues his dream. The rent income cam be used to help finance it. If it fails he will still own something that he won't have to sell for a loss on craigslist .

That would certainly be an avenue that I would look into before making any decisions. If you can rent that building out and cover the costs of your overhead, then that would definately be one way to go.

nthole
09-19-2011, 10:09 PM
Are you people seriously recommending trading real estate for a BBQ trailor? Wow, what a bunch of business geniouses you are. That's why you are cooking out of a trailer I guess.

I'll grant that I absolutely agree with you on the idea that he should leverage the property, assuming it's not currently on loan but is owned or would at least generate profits via lease that would exceed the expense, however the snarkiness about how people aren't as smart as you and owning property is the 'duh' thing to do is uncalled for. Last I checked most property values are WAY down. Will they come back, maybe, maybe not. No one knows if the real estate market will every truly 'return' because it was purposely over valued, which caused the massive collapse.

In addition, there's nothing wrong with cooking out of a trailer. There's a bunch of twenty-somethings with mbas from a lot of fine schools doing it and making good money, using marketing and brand management that many of the 'business geniouses' are taking note of.

It's one thing to have an opinion, or even provide sound advice. It's another to be a douche about it.

jbrink01
09-19-2011, 10:27 PM
Are you people seriously recommending trading real estate for a BBQ trailor? Wow, what a bunch of business geniouses you are. That's why you are cooking out of a trailer I guess.
Not at all. With regard to the trailer comment, If I didn't respect the forum I'd suggest you do something quite disgusting. You'd be shocked at our cash flow (and my real job pays, well, it's none of your business but I think I have perspective).

Anyway, to the point. Start small, build cash and buy a trailer. Find someone to lease your property and win on both fronts.

Camille Eonich
09-19-2011, 10:32 PM
They are making new trailers every day, land/real estate is finite. Property values are down right now but they will eventually go back up.

My .02

Boshizzle
09-19-2011, 10:43 PM
Good for you. Signed, Trailer Trash and proud of it!

Take it any way you want. But, I'm glad to see that you finally came around to my way of thinking about it. I gave my opinon and you guys that initially disagreed with me started posting laughing emoticons. I defended my position. Real estate is a better investment over the long haul than trailors. That's just the way it is.

Now, I have often dreamed about owning a BBQ trailor. I envy you guys that do it successfully and wish that I could. But, if I owned property I wouldn't trade it for a cooking trailor. I'd find a way to leverage my property to make my dream come true. Without the asset of property, I'd go about getting a trailor another way.

At this point, I'm trying to figure out a way to just transport my meager little cooker to the local farmer's market to use BBQ pork to sell my sauce. A trailor isn't even in my thinking at this point. Maybe it should be.

Signed - The douche with an MBA.

timzcardz
09-20-2011, 07:14 AM
Let me be the first to say (unless someone already said it and I missed it) that a forum like this is not the place to seek financial advice, especially with a significant asset like property, and how to best finance a business. That is something best left for you, your accountant and financial adviser to tackle taking into account all of your financial means, obligations, and individual circumstances.

HOWEVER, if you want to know the pros and cons in restaurant vs. trailer debate, I am certain that the experienced individuals here can provide a great list for you to use as input in your decsion.

Jaskew82
09-20-2011, 08:01 AM
My $.02...

Lease the property and to generate profits. Work and save until you can afford to buy a trailer (or even take out a SMALL loan to assist with buying a trailer).

Continue to rent out your property to offset start up costs of the new business.

Once you are settled in to your business and generating profits, decide how you want to handle the property.

Arlin_MacRae
09-20-2011, 08:09 AM
Gentlemen...

Enough sniping, name-calling, and general BS, please. This is not Wood Pile.

Arlin

DirtyDirty00
09-20-2011, 08:24 AM
i have to also agree that the property is not worth selling for a trailer. (assuming it is owned clear) If it is in a location that is prime enough that you think can house a profitable restaurant, then it must be lease-able. at the same time then the property must also have some value. its not IF land values bounce back, its when. even if they dont hit what they were at for 50 years, they still will rise way up from where they are now. remember, if you dont have to sell, why sell at a low? hold onto the property. lease it out. let someone else try to open a business in that spot and in doing so they will pay for your trailer.

Fishfire
09-20-2011, 08:43 AM
Thanks for all the input .I was not trying to start some name calling post. I should have asked the question better restaurant vs trailer which one is better?
I know that this question is like Ford vs Chevy but I just though I could get input from people that have done this.
Again thanks

Boshizzle
09-20-2011, 08:54 AM
Thanks for all the input .I was not trying to start some name calling post. I should have asked the question better restaurant vs trailer which one is better?
I know that this question is like Ford vs Chevy but I just though I could get input from people that have done this.
Again thanks

No problem, bro. Some people lose reading comprehension skills when they get on these forums and start to twist people's words and take them out of contextand then start the personal attacks. Then, some others seem to be like misguided sharks who think they smell blood in the water and start adding sophmoric replies. If you spend any time online, you know that.

Either way, you are in a great position with that property and it gives you some options that you would not otherwise have. Good luck.

Arlin_MacRae
09-20-2011, 09:50 AM
Thanks for all the input .I was not trying to start some name calling post. I should have asked the question better restaurant vs trailer which one is better?
I know that this question is like Ford vs Chevy but I just though I could get input from people that have done this.
Again thanks

You did nothing wrong, brother. No worries. It's a GREAT thread you've started.

No problem, bro. Some people lose reading comprehension skills when they get on these forums and start to twist people's words and take them out of contextand then start the personal attacks. Then, some others seem to be like misguided sharks who think they smell blood in the water and start adding sophmoric replies.
Then there are those who start the name calling and deflect blame onto others. Just sayin'. :thumb:

Boshizzle
09-20-2011, 09:59 AM
Then there are those who start the name calling and deflect blame onto others. Just sayin'. :thumb:

Wow. :roll:

And some have no reading comprehension apparently. Just sayin'. :thumb:

Arlin_MacRae
09-20-2011, 10:14 AM
Well, since we mods can still see that the opening shot was yours (sorry that you can't), I thought the warning was appropriate. Let's take this to PM Land, shall we?

timzcardz
09-20-2011, 10:15 AM
For those that forget, it is probably not a good idea to challenge the Moderators.



"These are our Rules" refresher.
http://www.bbq-brethren.com/forum/showthread.php?t=14685

el_matt
09-20-2011, 10:29 AM
I know that this question is like Ford vs Chevy

Uhhhh, Chevrolet...hello :laugh:

Matt

JS-TX
09-20-2011, 02:30 PM
Where's the appropriate place to discuss trailer vs. restuarant, cause I would like to know. We are talking food truck type trailers right?

markdtn
09-20-2011, 02:55 PM
To me there is perhaps a bit more info needed. How many other places to eat are there in your small town? Are all the people driving the 7 miles to the next town to eat? I also see a difference in a sit down place and a trailer, to me there are different types of people that will be served. A sit down place with a take-out window may be a best-of-both worlds. What type of industry is nearby (will you get a local factory lunch crowd)? I think a market survey would be a good first step before deciding.

I do think that I would try to keep the building somehow. As said, the market is down right now. It won't bring top dollar in todays economy. I am also a stay out of debt type guy. I would not borrow to open a business. If I did the trailer, I would rent the building. Just my thoughts.

lazy butt
09-20-2011, 04:16 PM
Start with a trailer then build up a client base with great bbq. If they like it they will come. You might find out after a while you my not want the hasle of the day to day of the restarant. Good luck and let us know how it comes out.

Puppyboy
09-20-2011, 04:55 PM
That's the million dollar question.

Location location location.

Bigdog
09-20-2011, 05:24 PM
Well, since we mods can still see that the opening shot was yours (sorry that you can't), I thought the warning was appropriate. Let's take this to PM Land, shall we?

LMFAO!!!!:heh:

Boshizzle
09-20-2011, 05:32 PM
LMFAO!!!!:heh:


Good freakin' grief! Thanks dear "brother" for commenting on something you have no idea what you are writing about. But, what ever.

HawgNationBBQ
09-20-2011, 05:36 PM
Trailer

jgbmgb
09-20-2011, 05:44 PM
Just go ahead and open the restaurant AND get the trailer to use for special events and catering! There! Problem solved! Everybody shake hands! Lets get back to talking about what makes this site so great! BBQ!

Blackened
09-20-2011, 06:24 PM
Good freakin' grief! Thanks dear "brother" for commenting on something you have no idea what you are writing about. But, what ever.

Lighten up Francis

http://blog.chron.com/cougars/files/legacy/Hulka.jpg

Boshizzle
09-20-2011, 06:25 PM
Lighten up Francis

http://blog.chron.com/cougars/files/legacy/Hulka.jpg

:laugh: Ok, sarge!

But this is the post they seem to ignore.

Take it any way you want. But, I'm glad to see that you finally came around to my way of thinking about it. I gave my opinon and you guys that initially disagreed with me started posting laughing emoticons. I defended my position. Real estate is a better investment over the long haul than trailors. That's just the way it is.

Now, I have often dreamed about owning a BBQ trailor. I envy you guys that do it successfully and wish that I could. But, if I owned property I wouldn't trade it for a cooking trailor. I'd find a way to leverage my property to make my dream come true. Without the asset of property, I'd go about getting a trailor another way.

At this point, I'm trying to figure out a way to just transport my meager little cooker to the local farmer's market to use BBQ pork to sell my sauce. A trailor isn't even in my thinking at this point. Maybe it should be.

PigBoy
09-20-2011, 06:59 PM
I bought a trailer a little over 5 years ago. Financed basically a 100% of it. payments were roughly $470/month. We are in a town of about 2200 people. There is a long time BBQ restaurant (over 25 yrs.) in town. We opened on weekends when we could around my work schedule. Usually 1-2 weekends. One opening would make enough to make payment for the month. What grew out of it all was catering and that is what has been the most profitable. The vending got our name out there and the food sold itself. The trailer has been great to take to BBQ contests as well. The storefronts in our town that are empty are staying that way. A hardware store that closed 3-4 years ago is still empty. A very nice restaurant has changed hands several times and has been empty for a year. I have heard the asking price is over $300,000. You have to sell a lot of product to make that work. It won't work in our town. That's my story, I hope in some way it helps.

Boshizzle
09-20-2011, 08:25 PM
I bought a trailer a little over 5 years ago. Financed basically a 100% of it. payments were roughly $470/month. We are in a town of about 2200 people. There is a long time BBQ restaurant (over 25 yrs.) in town. We opened on weekends when we could around my work schedule. Usually 1-2 weekends. One opening would make enough to make payment for the month. What grew out of it all was catering and that is what has been the most profitable. The vending got our name out there and the food sold itself. The trailer has been great to take to BBQ contests as well. The storefronts in our town that are empty are staying that way. A hardware store that closed 3-4 years ago is still empty. A very nice restaurant has changed hands several times and has been empty for a year. I have heard the asking price is over $300,000. You have to sell a lot of product to make that work. It won't work in our town. That's my story, I hope in some way it helps.

That's so freakin' cool! Good for you, bro!

jbrink01
09-20-2011, 08:57 PM
Boshizzle,
I felt your initial comments were demeaning, even if not intended that way. My response was not well thought out and for that I apologize to everyone that had to get drug into this little p*ssing match. I did basically what Pigboy did. In 2005 we bought a $5000 offset that we paid for with the proceeds of cooking on 4 brinkmann's on a flatbed. We now have a 1800 square foot shop, a $30k vending trailer w/ FEC500, a TON of catering stuff, a second FEC 500, the original offset, and 2 late model pick-ups, a competition toy hauler with FEC100, UDS and TG-300. We have paid cash as we went and kept very little for ourselves up to now. We have worked many long hard hours to get where we are so I get pretty darn defensive pretty quickly. My apologies for not stating my position more eloguently last night. That's my story...........

Boshizzle
09-20-2011, 09:04 PM
Boshizzle,
I felt your initial comments were demeaning, even if not intended that way. My response was not well thought out and for that I apologize to everyone that had to get drug into this little p*ssing match. I did basically what Pigboy did. In 2005 we bought a $5000 offset that we paid for with the proceeds of cooking on 4 brinkmann's on a flatbed. We now have a 1800 square foot shop, a $30k vending trailer w/ FEC500, a TON of catering stuff, a second FEC 500, the original offset, and 2 late model pick-ups, a competition toy hauler with FEC100, UDS and TG-300. We have paid cash as we went and kept very little for ourselves up to now. We have worked many long hard hours to get where we are so I get pretty darn defensive pretty quickly. My apologies for not stating my position more eloguently last night. That's my story...........

My apologies to you too, bro for any misunderstandings. I respect what you have accomplished and can only wish that I could be 1/10 as successful as you. People like you are my heroes.

JS-TX
09-20-2011, 10:30 PM
I applaud those who can make a decent profit working in BBQ, especially working a trailer/catering business. I've seen plenty of food trucks in SA, but I'm having a hard time picturing a trailer setup. Anybody got any pics? Thanks.

mikeTRON
09-20-2011, 10:34 PM
Signed - The douche with an MBA.

LoL

The minute I read "leveraged" I was wondering if you had a business degree :thumb:


Even though BO is being a *little* abrasive :-P with his opinion I agree with him for the most part. IF you are serious about starting a barbecue business then leverage it out. If having that low rate loan is scary to you then you could always RENT it out and use the cash flow to save for a trailer to eventually pay with CASH :) Also while you are renting it out have a clause to store your UDS there, or whatever smoker(s) you need stored at the moment lol THEN smoke on location and SELL YOUR BBQ to the tenant.

win/win/win


PS to Boshizzle: oh its spelled geniuses by the way :shocked:

haha... just giving you a hard time :heh:

h20loo
09-21-2011, 06:51 AM
If I were you .... I'd get on the phone to BBQ Bubba and talk to him about restaurants and trailers. He seems to have done both and the two plus years I've followed Lockharts they have had their first anniversary. Seems like alot of money has floated down that stream.
Lots of brethren like Bubba but he just came to mind

Good luck

Cook
09-21-2011, 10:47 PM
But this is the post they seem to ignore.

Oh it wasn't ignored...it's just that the responses were edited out of this thread.

h20loo
09-22-2011, 11:57 AM
here's something up your alley....

Lancaster Tavern to become smokin’ hot barbecue restaurant


http://media.mmgdailies.topscms.com/images/bd/67/6f12675b488f9833442baea869d6.jpeg rec-lancaster tavern-21 Chris Corrigan, owner of Hog Tails BarBQue restaurant, has purchased the Lancaster Tavern and will turn it into a 600-seat smokehouse restaurant. Mathew McCarthy/Record staff





WATERLOO — Chris Corrigan is a firm believer in fate.
For the past six months, the master of “meat, smoke and fire” had been searching for a second location to handle the overflow crowds at his tiny Hog Tails BarBQue restaurant on Laurelwood Drive in Waterloo.
One day while sitting around with wife, Cathy, and their real estate agent, Cathy blurted out, “What about the Lancaster Tavern?”
“I said, let’s call the owner. The rest is history,” Corrigan recalled Wednesday with a laugh.
It just so happened that Mike Kelly was looking to retire after owning the landmark Bridgeport-area bar for the past 20 years.
The Corrigans are the new owners of the venerable and colourful nightspot, which served its first drinks to thirsty patrons in 1840 when it was constructed as a railroad hotel. A price for the transaction was not disclosed.
They plan to rename it the Lancaster Smokehouse where it will serve up smoky, southern-style barbecue food such as ribs, pulled pork, Texas beef brisket and Louisiana po’ boys.
Chris said he plans to do some renovations, especially to the ground floor of the spacious 7,500-square-foot tavern, which can seat up to 600 people. They are gutting and renovating the kitchen, which hasn’t been active in a number of years.
But otherwise they plan to leave much of it as it is, including the wood-panelled second floor, decorated by a previous owner in a nautical theme complete with a ship’s anchor, wheel and port holes. Outside, a boat suspended in mid-air welcomes visitors to the Lanc and the S.S. Ocean Queen lounge.
“We thought the wonderful history and tradition of this place, coupled with our vision, would be a pretty exciting thing moving forward,” Chris said.
The upper floor has hosted Dixieland jazz concerts every Saturday afternoon since 1978. Corrigan plans to keep the jazz tradition going, but will also book blues acts, which fit more closely with his barbecue-style menu.
“In barbecue, blues is the thing,” he said.
Corrigan’s journey to barbecue king and restaurateur started in something completely different — the office supply business. His father, Bill, owned K-W Office Supply from 1963 until his death in 1980.
Corrigan, who had worked for his father, revived the business in 1992. A few years later, while developing a software program for his business with a company in Dallas, he travelled to Texas and was taken out for some southern-style barbecue meals.
Even though he didn’t know a brisket from a back rib, he was hooked.
“I’ve always been involved in food,” he said, noting that his grandmother specialized in Pennsylvania Dutch food.
He ended up buying a barbecue smoker in Houston and began competing on the barbecue circuit in the U.S., eventually winning the Kansas City BBQ Society Grand Championship in 2004.
As the owner of an office business, he had the luxury of being able to take time off to travel to competitions, he said.
In 2007, he sold his office supply business and began catering pig roasts, barbecues and weddings.
He moved the business to its current location on Laurelwood Drive in northwest Waterloo in 2009, and planned to keep it as a catering operation until daughter Shannon, a graduate of the food and beverage program at Conestoga College, suggested he convert it to a restaurant.
Called the Hog Tails BarBQue, the 1,000-square-foot eatery seats only 30 people, not nearly enough room since word spread of Corrigan’s smoky creations, cooked “low and slow” for up to 12 hours and served by a staff of 20. Sometimes the wait is an hour to 90 minutes on Friday and Saturday nights, he said.
“Demand is so great at the existing restaurant, we’ve outgrown it,” Corrigan said.
The Corrigans thought about calling their new location the Hog Tails as well, “but everyone in town knows it as the Lanc,” he said.
“We don’t want to lose the history,” said Cathy.
Although the Corrigans have already begun renovating the building, Kelly will continue to operate it until the end of the month. The tavern will remain open except for some days when heavy renovations are taking place.
A grand opening is planned in December.


The sad part of restaurants is they quite often end up serving "restaurant food" and I'm sure the joy of cooking would soon disappear if the bean counters won't let you put your personal stamp on the food. This guy won a Grand Champion but his restaurant food wouldn't get the call in a backyard comp in my neighborhood.

For background- We are in a 500,000 pop tricity, with three universities and 3 colleges

JS-TX
09-22-2011, 02:18 PM
Nice article, thanks. I think even the food you eat at good BBQ restaurants is quite different than BBQ comp. Q. I bet many would find BBQ comp. food over the top if it was served at a restaurant. I bet most BBQ lovers haven't tasted BBQ comp. food either, so nothing is lost anyway.

SouthernMagicBBQ
09-23-2011, 05:30 AM
No.

Do not borrow money to finance a restaurant. If you go the trailer route, sell your property unless you have the cash to spend. Pay for it lock, stock, and barrel.





AMEN, AMEN,,,,a restaurant can become a money pit in a hurry. Lease the property, buy a good trailer. Owe no one.