School me on the restaurant business?

Y’all are slipping and it disgusts me. Does the blonde waitress in the pic come with the deal??

 

I get it. There is a waiting line most nice days from breakfast through lunch.

 

That would be said buddys wife...

 

Ass.

 

And???

 

I like the short hours, it's a nice little setup, a good location, but no way are they paying the bills and making money with those menu prices. Add at least $5 to each plate and you might be more in the ballpark. It's been years since I've had to do menu item cost calculations but it's plain to see that those prices can't possibly cover food cost, labor, and overhead.
If I had to guess, I bet the owners don't pay themselves.
I wouldn't consider it without looking at the books (not you, an accountant that knows the business).
It may be very popular but the customer base could substantially lessen if you bump the prices up to where they need to be.
Having had some experience in the field, I would think long and hard before jumping into it unless you can afford to lose money for several years and not care. It is a very tough business and hard work. Some people love it, I didn't.

Edit: I was looking at their FB page and saw that they also received PPP money to stay open during the pandemic so that needs to be factored in also. They also cut down their hours of operation during that time.
Lots of variables to consider here.

 

The little mom and pop diner by us sold out and first thing they did was raise prices.

Luckily their food and service are top notch.....they fill every seat at lunchtime and the prices are basically double what they were 3 years ago.

They do breakfast and lunch every day, no dinners. Close at 2
Husband and wife work it 6 days a week. Closed on Mondays

 

As has been told to me, "a ring doesn't block a hole".

 

I am told they do take a paycheck. Also daughter says it does make money, but we will see when actual hard numbers get laid out. There is a whole lot of info I know I need to get. We are hoping to have a much deeper conversation next week and get more details.

 

Right.

 

Been in the business since I started washing dishes at 15. It's one the hardest businesses out of pretty much any investment to be successful. And if you become successful it means your 60 to 70 hr work weeks become 80 hr work weeks.
If you want a hobby and don't need the money kind of look at it like gambling, expect to lose everything and if you make money its a bonus. The small restaurants that make money it's because the owners/ chef are working not paying labor.
Last restaurant I worked at was on an island in Micronesia, It was an restaurant impossible kind of job, came in to change everything. At that point had 4 investors, 350 k in the whole losing 6-8 grand a month, and was the #1 restaurant on the island on trip advisor. Had to explain that to the lead owner, also that having 4 families get comped filets and expensive menu items everyday was killing any chance of making a profit.

Food network and TV shows have glamorized the idea of opening your own restaurant. Trust me it's not a glamorous business unless you are a celebrity or an actor that opens a restaurant as a pet project it's a poor investment.
I've had multiple people over the years ask me to partner into a restaurant, so basically I work for 2 years for free with a 20% probility of making any profit and unless you are doing crazy numbers your profit margin is usually very small. But there are success stories. Haven't looked at the menu but what other people said the prices are crazy low. Look at a check cost average, p and l sheets, the land lord. But unless someone wants a 50-80 hr a week hobby with the chances of making some money and dealing with a pile of stress, buy it. I prefer the safe route, when owners are losing money they still have to pay me, when they lose their investment and close the doors, I simply move on and find the next restaurant. After tired of restaurants, it's been cooking on yachts for awhile. Good luck what ever you choose but you won't get rich selling 5 dollar hamburgers

 

That place looks awesome. I'd eat there if I could park/walk in easily.

 

http://forums.13x.com/index.php?threads/restaurant-owners.377178/

I’m still here. Stepped away from Joeys (way way too big a project for my first attempt getting into it). Still looking into opportunities and have looked at a couple spots but no dice yet. Haven’t been deterred from the idea.

Diners make good money. It’s all about rotating the tables and keeping the line moving. Food needs to be consistent and good, not necessarily GREAT. I love a good greasy spoon joint .

 

Also got some good input from a member here. OP if you want PM me and I’ll copy the advice and pointers he gave me regarding the P&L and what to look for. He was a big help.

 

So for the people in the crowd. What do you think a small diner like this would be valued at?

 

Does the deal include the property? If so, check with a local commercial real estate guy. No clue on what that part of the state brings but I gotta believe its considerably more than the rest of the state. If it DOES, you want to look at the P&Ls and see if the owner is paying himself rent (which he should be). The value of the biz all depends on the sales. It's a better outlook if it does include the property, as it gives you an instant asset. So if the diner goes tits up after 18mos, you can leverage the property later.

 

It does not include the property.

 

Ok so its buying the biz only, and renting from the building owner. Commercial rental space in Syracuse is about 16-18 per sq ft. for reference.

 

This

Mark Wahlbergs burger places around me are all closed and boarded up and he's got a heck of a lot more money behind him than the average joe does.