Restaurant Social Media
Can you settle this debate?
The debate: we have an extremely well received, researched, validated concept. This is a large, Cheesecake Factory, size venture ( no comment necessary here ), 12,000 sq. ft. with projected revenues of 7 million per unit and 200 potential locations.
I believe that in order for this venture to be successful we need a experienced director of operations from day one to take the concept from paper to reality. Ideally this person would be able to create the systems and procedures to lay the ground work for opening the next 5 locations in 3 years. Basically someone whose been there and done that. Someone with these qualifications would cost between $150,000.00 to $200,000.00. a year.
Setting aside funding for a moment ( we're already scouting a location that rents for $45,000.00 a month! ) my partners are adamantly opposed to hiring someone at this price and qualifications. They feel we three partners can do all this ourselves and hire a manager. I haven't worked a restaurant in years. My partners have virtually no operational experience.
We're all committed to the concept, feel highly confident we can raise abundant cash. But my partners, I believe, have a serious lack of appreciation for the complexity of launching a concept of this size. They say we don't need someone like this until 3 locations from now and I say "we won't get that far without a solid foundation."
So who's right; me or my partners?
Garrick
Replies to This Discussion
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Permalink Reply by Stephen J Serva Dei on -
Focus on the product and make sure it is of a superior quality - the money will take care of itself. Wherever money takes precedence and the food is neglected - you can be sure that the product will not fly.
A food factory (regardless of what food you produce) is a finely tuned machine - without the right people in the right place, you are asking for ongoing operational problems in every area...
A salary is only 'expensive' if the person employed does not do what they are supposed to do... TRY TO IMPRESS this fact on your partners - all their expertise will be less valuable with an inferior product and key management perform better if they are on the doorstep from day one rather than try to play catch up a couple of months or years down the line.
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Permalink Reply by Sausan on -
I think in order to get a "solid foundation" all partners must be able to do the ground work before hiring out. Employees are a dime a dozen and one can ruin you. Been there done that.
Who's right? Your partners. They are the right people.
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Permalink Reply by Keith Bernhardt on -
What's the status of this project now ?
From the date, it looks like this started a year ago.
How is the project progressing ?
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Permalink Reply by Stephen J Serva Dei on
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Yes, it would be interesting to see if this plan has been realized, and how, or if it just fizzled out???
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Permalink Reply by pubmaster on -
OK, sorry, that was my first impression
If you've carefully read all of the responses that preceded mine, the answer is there.
And I think you have.
Good luck - you'll need it
Cheers !
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Permalink Reply by Dan Parsons on -
Garrick,
Being in operations for the past 14 years of my life, I side with you. At an estimated 7 million in sales per unit, you will only have an 8% rent. I pay a fixed 15% and pay about the same rent. At a salary of $150,000 a year you would only be in 2% on the most valubale asset- Your Director of Operations. I say do the research, find a "roll your sleeves up" Director that is creative and never look back!
Good luck- Sounds like a lot of fun!
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Permalink Reply by Giuseppe De Carlo on -
You have two partners, one is a financial expert and the other in Marketing? I have a deep problem, having worked all my life in restaurants, as a manager and also as a owner of three restaurants. you have aright to be concerned, to start $45.000.00 per month rent, do you know how much your sales have to be just to cover your rent, the cheapest part would be managment if he is good, your base running cost would be around $80.000.00 per month at least.
if you have done your home work, starting from the front door to closinig, eg, preparing the establishment, cost of equipment, advertising and promotion, licenses, how much staff is required, what services are you providing, what will cost more than your manager are consultants, which will only sell you advice and you will have to put it in action, (are you an expert) how quickly will this bussines develop, Or how much do you have to invest, or how much is your final cost, how many months before it take off? My suggestion is , dont by a$50.000.00 piano if you cant play it. Giuseppe
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