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Business plan restaurant Texas
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Thread replies: 30
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Hello friends of /biz/.

A guy from my network presented a business plan for a restaurant in Texas to me yesterday. ('m partner in a multi family office)

As I'm new to this market (I've got 2 apartment complexes in development in Texas but no restaurant/retail yet) I was wondering if you guys could help me clear some stuff up.

Short summary of the company:

- I-45 / FM 1488 Conroe Texas intersection
- Food & Beverages (alcohol for those above 21)
- Focus on sports (people can watch any sports on available flatscreens)
- Wild life focus (there's apparantly swamps around the restaurant with wildlife... whatever that means) with a terrace that views over the swamps


The owner is planning to hire waiters at $2 per hour + tips. Tips are guesstimated to be $100-150 a day. Is this really a normal wage for waiters in the U.S.? Wat...
Applicants will have to send picz (all waiters will be "wild thing girls", also Wild Thing is name of the restaurant). Is this a normal practise?

Management team members get $ 125.000 (isn't this a bit much seeing that the waiters get close to nothing in base salary or is this a normal difference?)
Customers are estimated to spend $30-$50 per visit and average daily seating is estimated at 500. (thus daily turnover is $20.000).

Variable cost per unit is calculated at $9,50 per customer.

Total cost to build the place would be around 3,3M (property/preparations/building).


Got 50 pages of documentation but perhaps someone can confirm that some of the above is somewhat realistic first.
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>all waiters will be "wild thing girls"

does this shitlord even know the [current year]?
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>>1096645
I love how cherrypicked this image is.
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>>1096645
sounds like another BWW/Hooters clone
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>>1096659
a breastaurant.


All the laid off petroleum dudes are planning Hooters-like sports bars down here.

I saw something like that flop in the late 80s. The oil guys were from Getty in Michigan and all alcoholics after Texaco bought them and moved them to Houston. Started a place called "Julio's" and hired an alcoholic to manage the place. Folded in 8 months.
>>
Serve alcohol to 21 and younger to get that extra cash flow
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sounds like every other chain sports bar without the advertising budget.

titty girls alone will only bring in a handful of creepy shmucks. families don't go to hooters.

also your daily seating estimate of 500 is retarded. GOOD LUCK unless you have other attractions for kids.

sounds like a tacky chain restaurant that isn't an established brand with the only shining characteristi being titty girls / reptiles in a swamp.

this is dumb and i would avoid investing
>>
aren't restaurants in general pretty bad businesses? low margins, very high competition, lots of health regulations,etc
>>
Why would you chase families and females away with wild girls? You should market to the median person.

It also actually decreases the amount of tips your girls will get, because girls dont like tipping girls they perceive as competition.

If you want to keep your employers so you end up with experienced employers you should also give them a reason to stay. 2 dollars per hour is a joke. Why would they not work somewhere else after a year or two?

500 daily seats is quite a bit. Is it realistic? I know Americans go out to dinner a lot more than us, but conroe seems like a small place to me. You should check if the place has a history and how other restaurants used to run.
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>>1096741
Girls' shithead boyfriends will hang out all day at the place. Girls who aren't making tips will "pay off" the manager (un beknownst to you) so they can go work at another tittie related bar.

When you mix sex with owning a business it's you who gets fucked.

Go work at such a place for a while and watch what happens.
>>
I was working as a manager in a huge (285 seats) restaurant in L.A, Beverly Hills,, trendy, yadayada.

500 covers was a busy Friday or Saturday only.
That's two rotations (we only opened for diner).
Two rotations (filling every table table twice) only happens on weekends, either at lunch or for dinner . Restaurant's identity determine wether you're a lunch place (business) or evening spot, and being both rarely happens, if ever.

Titty bar-->evening. Forget about couples, family and business clientele. Forget about Sundays (the 3rd busiest day of the week for restaurants, almost exclusively families and couples).

What's the "style" of the restaurant? Titty sports bar or wildlife-outdoors venue? Because these two clienteles don't mix.

Sounds like the guy behind the project came up with seating numbers that "match" how much guests would be needed for this place to break even, rather that what could be realistically expected. Marketing is all over the place (sports-titty-wildlife, really?)

In Texas, you can pay servers 2.13$ per hour as long as tips make them reach 7.25 per hour.

$125,000 for management team? Each? That's what the C.O.O in a 200+ rooms 5* hotel makes in L.A, not a restaurant manager salary.

Is the guy looking for the money going to be in management? If so, looks he's planning on filling his pockets while the restaurants bleeds money.
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Restaurant in Conroe & not the Woodlands 10 miles away.
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>>1096650
Are you saying Putin is not one of the great leaders alive today? explain
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>>1096674
>>1096712
>>1096903
>>1096898

Thanks for the information guys. I'll get back to you tomorrow. (OP here on home computer)
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By the way I don't think it's going to be a "titty" bar but yeah the waiters will all be girls wearing somewhat skanky clothes I'm sure.
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>>1097088
>>1097084
I'll be honest, hot chicks serving drinks can really bring in good money... for a bar in a college town. What restaurants need are customers who come more than once, and if the defining feature of the restaurant is the waitresses then you won't get families or regulars because looking at clothed tits for a $30 meal isn't worth it. You can go to a bar or strip club and spent the same money and get a better thrill.

You haven't mentioned anything about the food. That seems scary to me.
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>>1097094
I think he didn't think it all through, at least from a practical or customer standpoint.
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Dono the laws over there but can you make a gaming room with slot machines and horse betting facilities? Put a bar in there. Slot machines will carry an establishment
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Thanks Putin
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>>1097098
It's not my idea. It's just some guy who gave me his investment memorandum and I came here as I'm more of a private equity (fintech/ecommerce/etc) and residential real estate guy.
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>>1096645

improving only 2.5% per year on average is not all that impressive desu
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TL;DR : Stop, dont and no. Unrealistic.

Do not join in this insane project, it will only lose money, and drain your soul.
The concept itself is shit, other comments have explained why, the wages for management team seems excessively high, the expected turnover is unrealistic,as you probably wont be able to pull 500 people every day to eat bad food and look at tits, the food will inevitably be low quality as no good cook in the history of the profession will be interested in working there, and titty girls aren't know to be good waitresses.

Also, 500 seats are probably too much,particularly combined with the themes. Sports, tits and aligators? Too much.

For second validation, go to a successfull restaurant near you,and ask for their input. People who live the restaurant life has a lot better insights into what it takes to run a great restaurant than most civillians.

I can't speak to the math as im just a simple cook myself, but personally i don't see how you could run that big a restaurant, producing probably thousands of high quality meals daily unless you had a mammoth team of hardcore navy seal motherfuckers working the stoves.

And those people wont be lured into a place waitstaffed by titty girls .
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>>1096650
it's like saying the US is a 1st world country
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>>1096645

The project described is a hybrid between a startup venture and a wet dream. Clearly written by someone who never worked in nor ran a restaurant, thus underestimating the hard work with the low margins resulting. In other words, doomed to fail.

also this >>1096898
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Dear god.

I'm not going to bother with a line item critique, and just leave it like this.

Don't fucking start a restraunt unless you know the industry. Thsee things go south, even without a shitty warmed over 90s concept.

Run. Run. Run.

>Source
Actual restrauntfag
>>
I'm a restaurateur. This model will inevitably fail.

I don't care if you believe me or not.
(If you do go through with this, please start a blog so I can keep myself updated with your experience....I love social psychology
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I've checked some more of the memorandum by now.

You guys seem to be very right (wow 4chan!) about everything. At some point he literally calls Twin Peaks, Tilted Kilt and Hooters the competition and speaks of a "casually called Breastaurant".

The marketing "program" indeed wants to cater to "sports enthusiasts, business entertainers, travelers, the local night crowd and families dining out".

For some reason this guy thinks that on a $50 bill the margin will be $43.

Apparantly he's going to run the place with 500 seatings a day with only 1 chef (gets paid 80k).

He just says the food will be "high quality" but there's no real specification given.

P.S. I never planned to personally step into this project. The guy is looking for financing and would pay 10% interest a year. Seems like he'd be unable to repay anyways.
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If waiters are working for tips, management salary should be something like $20k + % of profits.
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>>1097834
Paying an interest of 10% a year would be an almost undoable task for most restaurants, let alone a start up.
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>>1097847
Seemed quite insane to me already.
Thread replies: 30
Thread images: 3

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