eternit, my family had a very busie rest for years in weston creek and through the times we sew others in the area come and go! have you been in this industry b4 are you qualified in this if not good luck , this is a tougher game than building and investing and many have lost homes and wives/husbands over the idealism of wine and skittles, so to speak! most books are cooked ! and the only winner is the owner of the building.if you have got $$ burning in your pocket slip it under your bed and forget about it.
Buying a Restaurant
- Thread starter eternit
- Start date
Been in this business myself for a long time, i can tell you know what you are talking about craigb.
I would echo all that craigb has said. I think the two scenarios in which one has a reasonable prospect of making a successful restaurateur are:
1) You're a hospitality professional who'd rather work for yourself than for somebody else, AND you have good business management skills (the latter being the minority), or
2) You're an immigrant who views this as your only means of survival (sufficient motivation to be pragmatic!).
But people who've made money via other means (investments, or well-paying jobs) and want to go into the restaurant business because they have a passion for food, are almost destined for business failure. Why? Because they're too focussed on providing a dining experience rather than the business aspects.
Hopefully you're not in this category. If you're not sure about your motivations, ask yourself: "if this business had all the same figures but was a dry cleaners, or a discount store, or swimming pool supplies store, would I be as interested in buying it?" If the answer's no, then your decision is not solely about investment, and that means you should be extra-cautious.
I recently looked into finance for a client for a major restaurant and then separately a cafe for another client. At the moment many of the larger banks commercial lending criteria is changing to reflect the risk of investment in 'discretionary' spending retail areas. Hence the LVR can be as low as 40% and it is difficult to get more than 60% unless you are very experienced.
Some of the things they look for: head chef, length of tenure, reputation, position, your personal previous experience etc etc. For the cafe with not all figures reported it is sometimes difficult to prove the value of the business based on the books.
Just a few things to consider.
Jane
Some of the things they look for: head chef, length of tenure, reputation, position, your personal previous experience etc etc. For the cafe with not all figures reported it is sometimes difficult to prove the value of the business based on the books.
Just a few things to consider.
Jane
