Wanting to Buy Fish & Chip Shop!

Hi guys,

Me and my best friend / co-worker have over 10 years of experience in working in busy restaurants. We are currently doing anywhere from 50 - 75 hours a week each and are thinking of investing those hours into our own place.

I've been looking for a week now (mainly online - can anyone recommend websites to look) for takeaway shops (Brisbane Northside) with not much success. We don't want something in a food court.

Is it better to start something from scratch, perhaps in a industrial area, or is it better to buy something that is already operational.

I'm currently doing up a business plan and we're going to the bank this week to see how much they will lend us. What is/would be the next step in our venture?

Thanks - any tips/tricks/advice muchly appreciated!

Michael.
 
In terms of lending, do you and your friend have cash/equity? Hard, but not impossible to lend against a business. Ill let the brokers comment here.

Starting from scratch if you can find a good site would be better, but you will need the start up cash. Look for a growing industrial precinct. Have a niche, as you will need to draw people in.

Purchasing existing will come at a premium. Also need to ask yourself why the vendor wants out?

Be wary about 'buying yourself a job'. I like to apply my personal 'Triple' rule when going into a venture. Make sure you personally earn at least triple what you would otherwise earn as PAYG. 1/3 what you would normally earn, 1/3 for all the late nights/early mornings/weekends/inconvinience, and 1/3 to put towards inesting - because that should be the primary goal of putting your neck out! If it doesnt at least get youto this point, then look hard and fast at what you are getting into.


pinkboy
 
Working in an industrial area, don't give anybody credit and dont sell cigarettes by the stick. They're my tips.
 
I do hospitality consulting on the side,

agree with the previous comments too

be aware that good hospitality worker/manager does not mean good operator

that being said, its risk vs reward. if you start a new place, it requires more investment and time, buy an existing place and your risk is reduced on face value

also, there is no price you can put on personal satisfaction and happiness,
some are happy doing 80 hr weeks earning the same as a payg job, while some need to earn double/triple/quadriple

youll need to get FB supervisor levels 1/2, and food safety handling levels 1/2, and rsa or equivalent depending on your state.

also, going from a worker/manager to operator is a huge step!! but can be rewarding
 
Hi guys,

Me and my best friend / co-worker have over 10 years of experience in working in busy restaurants. We are currently doing anywhere from 50 - 75 hours a week each and are thinking of investing those hours into our own place.

I've been looking for a week now (mainly online - can anyone recommend websites to look) for takeaway shops (Brisbane Northside) with not much success. We don't want something in a food court.

Is it better to start something from scratch, perhaps in a industrial area, or is it better to buy something that is already operational.

I'm currently doing up a business plan and we're going to the bank this week to see how much they will lend us. What is/would be the next step in our venture?

Thanks - any tips/tricks/advice muchly appreciated!

Michael.

Hi Michael,

In a particular industry I buy with partners a few retail businesses as a sideline and put in managers. I find Mum and Dad operations really struggle to find a buyer and the business can stay on the market for extended periods and in the end they basically give away to get out of the lease and so they can move on.

We use business brokers to source the vendors. Such as

https://www.businessforsale.com.au/australia/b67d0786/Great-Buying-Fish-And-Chip-Shop-For-Sale

I would suggest calling all the business brokers and letting them know exactly what you want and they will contact you when a suitable one comes up or even better tell you about one that has been on the market with a desperate seller. Business brokers are always keen to get a sale through and will crunch the vendor, especially if it has been on the market a long time.

We find we get a fitted out shop with a decent turnover for far less than fitting out a new shop and starting with no clients. You then introduce your style, ideas and customer service and hopefully increase the turnover and you are then literally 'in business'. Not relevant for you at this stage but we find we get a much larger multiple of earning on the sale price if the business is under management rather than owner operated. Much wider buyer pool available.

Good luck with your venture, don't rush in, do all your due diligence, plenty of good opportunities are out there.

Keep us updated, I am sure a few us will give you a go to help turnover in the first month of trade!

Regards

NPB
 
I do hospitality consulting on the side,

agree with the previous comments too

be aware that good hospitality worker/manager does not mean good operator

that being said, its risk vs reward. if you start a new place, it requires more investment and time, buy an existing place and your risk is reduced on face value

also, there is no price you can put on personal satisfaction and happiness,
some are happy doing 80 hr weeks earning the same as a payg job, while some need to earn double/triple/quadriple

youll need to get FB supervisor levels 1/2, and food safety handling levels 1/2, and rsa or equivalent depending on your state.

also, going from a worker/manager to operator is a huge step!! but can be rewarding
I already have my FB Supervisor and Food Safety Handling certs. I know it will be a huge step, but with the hours I'm working currently, I would love to do that in my own place instead of a large company :)
 
I already have my FB Supervisor and Food Safety Handling certs. I know it will be a huge step, but with the hours I'm working currently, I would love to do that in my own place instead of a large company :)

thats a good attitude!

youd be surprised how many people , even before they are buying have the attitude of "oh when do I get my first days off and when does my first pay/profit cheque come through"
 
thats a good attitude!

youd be surprised how many people , even before they are buying have the attitude of "oh when do I get my first days off and when does my first pay/profit cheque come through"

Thanks, I want this quite bad. I want to see all my hard work and love be put into something I will see grow and food wise, do what I want, how I want, when I want, rather than being told what I can and can't cook (as my current employer does)
 
thats a good attitude!

youd be surprised how many people , even before they are buying have the attitude of "oh when do I get my first days off and when does my first pay/profit cheque come through"

I can't imagine this attitude leading to much success, but very true.

Great post and suggestion by NPB. I've been on that business broker website since high school keeping an eye on pricing commercial businesses. Without ever taking any idea very far, my first sense test made me see/hear of a few 'golden' opportunities. Places that just needed a lift and management shakeup, where you'd have v.strong bargaining power.

Good luck! As mentioned, definitely keep this posted - pretty sure the SS community will back you (and I love a good fish and chips place!)

Cheers,
Redom
 
Call me crazy but wanting to know when profits will start to flow is an important question...

There are some businesses where u would want profits early on, especially if you're buying one and there are others where you're happy to wait but it's important to somewhat map it our early
 
I have some experience in these businesses. Physically hard work, smelly, long hours, don't miss it!

Things I would do if I was dragged kicking and screaming into this industry again:

Buy freehold. If you do need to rent, avoid the big shopping centres

Talk to the suppliers - the Foodservice distributor, bread man, milk man. Find out if the business is paying on time. Do the suppliers think this is a "good" business compared to others they service? Don't worry people can be amazingly indiscreet. As you are already n the hospitality industry talk to your food reps, they may point you in the direction of a business and will have all the gossip.

Once you are operating, buy A grade chips and good quality cooking oil and change it often!

Good luck!
 
From a finance perspective is much easier to finance an established business than to finance a new business which you are creating from scratch.

The reason for this is because the bank can assess past financials of the business rather than just protected cash-flow done by your Accountant.

You will require at least the following information:

1. Business Plan including a SWOT analysis
2. Projected Cashflow
3. Your resume including experiences, qualifications, background, etc
4. Staff roster
5. Personal financials
6. Last 2 years financials of the business (if established)

Based on your situation even though you have excellent experience you will find it difficult to finance the deal if you are going to create the business so hopefully you have adequate cash to fund it.
 
I would suggest buying a business from an older couple who have been just chugging along waiting to retire. I have seen a few of these changeovers in my time when I was wholesaling to small businesses and it is very easy to "make a difference"

Usually the business sells cheaply and the figures are fairly close, DD will help, just park across the road during the busy times and watch :)

Council Health requirements are the big problem with food, you need to be very careful the local council hasn't served a notice or is about to serve a notice to upgrade the place. Go and have a talk to Brisbane Council health department and ask for their advice. They will have the info available and you can check the premises while doing your DD on the figures, compliance costs can be Huge, be very careful of this as they can close you down or fine you heaps !
 
Have you checked out the fish and chips at the Newstead gas works. Now that's how to do a fish and chips shop! They've doubled there size with the oyster bar to. Must be making some serious coin, at least I hope so.

I've noticed that the only shops that seem to be opening anywhere sell either food or a way to work it off ie bike shops or gyms. lol
 
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