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> I read somewhere that 40% of restaurants started by people with no previous industry experience go belly up within 5 years? Experience doesn't guarantee succ
by mark-r 5y ago
> I read somewhere that 40% of restaurants started by people with no previous industry experience go belly up within 5 years?
Experience doesn't guarantee success either. I had a neighbor who was running one of the most successful restaurants at the Mall of America who decided he wanted to do his own thing. He bought a local restaurant and completely remodeled it, and it was great. But it never did the kind of business he expected and he had to close it after 6 months and declare bankruptcy. He told me that he put his house up as collateral for a business loan, and the bank told him he'd need to come up with $700K just to be able to continue making mortgage payments - he was forced to move too.
- yurishimo 5y agoSounds like his mistake was likely the costly remodel rolled into the business loan that he couldn’t afford. For those out there wanting to start restaurants: start small! It’s a heck of a lot easier to go from 10-20 tables to buying the lease out of the person next door and expanding. If you’re small and full because your busy, then you’ll also generate buzz for being “exclusive” and when you expand, people will still flock there, even though there’s plenty of room. Source: worked at restaurant that did exactly this. Pizza and decent Italian food. Place is hopping all the time and considered the go-to date night and anniversary spot because it’s hip and trendy. They’ve been open for almost 10 years now.
- mark-r 5y agoOh the place definitely needed remodeling. It had been a restaurant for many years and didn't see an ounce of love in that time. But I'm also certain he went overboard and bought the best of everything. Strangely enough it seemed twice as big, even though he didn't add any square feet. The location isn't cursed, it was taken over by another restaurant that has been open a few years now.