Opening a Restaurant - Restaurant owners and Customers Please?

I am a restaurant broker in Atlanta GA. First off, let me say that Asian restaurants, well run, can be very profitable! There may be many of them, but usually Asian and Mexican are restaurants that a group of people can agree on, they are universally popular in most areas.

We work with people who want to buy or sell a restaurant, but even if you only want to lease a space, we would be glad to help you.

Here are some things to think about:

Q: Why should I buy an existing restaurant instead of opening a new one?

A: Existing restaurants have track records; you can verify the need for the product or service in that particular location. Fiancial records and other information about the business are available. Most sellers will agree to train a new owner and many will provide financing. These last two considerations are important because finding someone to teach you the intricacies of running a restaurant – and is willing to finance the sale – can make the difference between success and failure.

Q: What is the real reason people go into business for themselves?

A: Surveys report consistent answers to that question, and the answers are often in identical order. Results of a typical survey, in order of importance, are listed below:

Live my dream

Be my own boss

Use my management skills and my education

Grow a business from concept to reality

Create wealth

Interestingly, money is seldom the prime motivator.

Q: How are restaurants priced?

A: Prospective sellers often ask a broker to suggest a selling price, even though they may already have an asking price in mind. There's no answer to this question. A restaurant broker will first determine the fair market value before attempting to suggest a selling price. And, that involves a thorough review of all financial information, reviewing the lease, inspecting the premises, and factoring in market conditions and the seller's estimate. Once these steps are completed, the broker will suggest a recommended price range – from low to high. Higher cash demands usually bring a lower selling price; smaller cash requirements generally command a higher price. Seller financing and terms of sale are often more important in closing a sale than the actual selling price.

Q: What should I look for?

A: Look for a business you feel comfortable in and would be proud to own and operate. More importantly, look for one you can afford. The business should give you adequate income to pay your bills – and provide a comfortable living.

You should also look for a restaurant that can be improved and made more productive and profitable. Brokers can cite many examples of restaurants that were improved and thrived under a new owner.

Q: What does it take to be successful?

A: You must have adequate capital to buy the restaurant and to make necessary improvements. Maintaining sufficient reserves to offset a slow start is critical, as is willing-ness to work hard and put in long hours. A restarant owner must have – or develop – strong managerial skills. Owners of any small business must be doers, especially if that small business is a restarant.

There are many people who can give you advice as well.

Our website is www.atlantarex.com , we are Atlanta Restaurant Exchange located in Midtown Atlanta. There are links on our website to local authorities where you can find information on what it takes to open a restaurant (most of the regulations are nationwide, so Atlanta or other cities, this info is helpful)

I can assure you that taking over an existing restaurant is much easier than creating one from the ground up.

I actually sold my restaurant in Charlotte North Carolina (THE WORST CITY TO OPEN A RESTAURANT) and when I returned to the restaurant brokerage business, I fell in love with Atlanta, especially the Buckhead area.

I hope I have provided you with some good information. I have been in the restaurant business for more than 30 years, and I have a love and passion for the business. I would be happy to give you any tips, and guidance when you are ready to open your place (even if you don't use me as a broker, I love to talk about the business)

The small business administration http://www.sba.gov/ is a great place to search for answers on starting your own business.

Thanks

Doug

www.atlantarex.com

Umm... nowadays, Asian restaurants don't really make much money since there are sooo many of them and growing number of buffets. Small buisnesses don't really make money and tend to close early. The only way for small restaurant to grow is to make REAL food that are CHEAP. That's the two main thing for all good restaurants: yummy and cheappy. Most of the good restaruants I 've been to, espacially the Asian ones that succeed are cheap but traditional (and not Americanized). I'm afraid your seafood or steak bar won't be any good unless they're cheap to begin with... because steak and seafood tend to be dominated by bigger chains like the Papa's. Sorry, but few young adults suceed in opening good restaurants...

Also location is very important to any restaurants... better to open in say.. Las Vegas than in the outskirts of Los Angeles next to the highway.

I like when the seating area is a booth or a really cozy, private place. I also like when sugar free redbull is available, lol.

I absolutly HATE when waiters try to talk to me. I like it when they smile though, because it makes them seem like they like their job. If they don't it seems like they hate the world. Hope I helped, though I probably didn't!

I think it would be of great help to you.