13 words of advice for the “super intelligent” entrepreneurs who want to lose their money by opening a restaurant
People still invest in restaurants without even following the basic rules…
Yesterday I was out with a client and we decided to visit a restaurant. He asked me to take him to eat“something from his country” and this made me think. I don’t like 80% of the restaurants in Bucharest (for various reasons), but I thought that I could follow the advices of my favorite restaurant critic in Romania, Michael Barclay! He writes for Business Review and I love how he reveals all the intentional “mistakes” of the restaurants in the Romanian capital.
Well, even Michael can be wrong…
He had presented this restaurant some months ago, mentioning it as one of the best of its kind, so I drove there, being sure that this was the right choice (my client did not like the idea of trying one of my favorite ones, so I had to experiment)
The experience was a disaster. Wrong location, awful service, unacceptable food, pathetic environment. Thank God that my client started laughing. When he went to the bathroom and pressed the button for the ventilator, an incredible noise could be heard through out the entire restaurant. Who knows? Maybe this was the idea: The owner had installed a system in order to let everyone know when someone visited the bathroom …
So even Michael can be wrong. Who knows what happened from the moment he visited the place until today…
But the question remains: Why so many restaurants in Bucharest (and Romania) are THAT bad? Actually I know the answer: It is related to all those “super intelligent” restaurant owners who think that they will earn money without offering anything in return.
13 advices for the “super intelligent” entrepreneurs who want to lose their money by opening a restaurant
Due to my past experience in Greece, I know a bit about restaurants and their budget structure. Also I have the impression that I know a bit about Real Estate in Romania as well. So if you feel that you are the best of the best, the “super – duper wow” businessman who will surprise the city with his “magic”, allow me to give you 13 advices, in order to make sure that you will reach your success faster:
1. Don’t use the services of an expert in order to choose the right property
Why should you pay money to all these “experts” who claim that they know about Real Estate? You know more than they do, that’s for sure. Also don’t ask people who have opened many restaurants. You know more than them, as well.
2. Go for the cheapest rent
There are two main theories. The first says “save your money”. So go for the cheapest possible rent. Clients should come to you, even if the location is not very convenient for them.
3. Pay the highest rent
The second theory is: “Pay the highest rent in the most expensive area”. Don’t worry, you will get your money back from salaries, quality of food and other less important details. Plus with an expensive rent, you don’t need a business plan; people will come anyway (so you save money there, as well).
4. Don’t bother with parking space
Parking is the client’s problem. Don’t search for solutions yourself. In the worst case scenario, let them park illegally. If they want to come to your restaurant, they should be ready to do everything.
5. Copy others. Why think too much?
I know, you are full of innovative ideas. But on the other hand why lose your time and think too much? Your great mind might think of something else. Meanwhile, check who makes money today and copy his ideas. Simple and easy.
6. Visit a supermarket and do your shopping there. Why search for special products?
Do as the vast majority of restaurant owners are doing. Go to a supermarket (or cash and carry) and do your shopping there. Why bother searching for special products and trying to satisfy different tastes?
7. Hire employees who accept the lowest salaries. What else matters?
Ok, you will be forced to pay the chef well (but you can always try to decrease his salary afterwards). But don’t make the mistake of paying a lot for the rest of the employees. Choose the ones who accept the lowest salaries. Save money, they will work hard for this salary, anyway
8. For God’s sake.. don’t waste time training them!
You are a busy guy. Tell them the main idea once and, then, let them improvise. They should do the right thing, otherwise they will lose their job. But why should you waste your time teaching them? If they want to be taught, they should pay…
9. Decorate the place according to your taste. You like it, so why shouldn’t the clients like it too?
You have great taste, don’t you? Why pay an interior decorator? You can sit down a bit, think of a great idea and then buy the (cheapest possible) materials to implement it. If we pay everyone around us… we’ll end up broke.
10. Lower the quality of the products. People don’t know about taste, they just want big portions and low prices.
Make sure that you offer big portions at low prices. This is why you should lower the quality of the products you use, but don’t be scared. Clients want to see a full plate, that’s all. (Of course if you can also have higher prices, even better. It would be super to offer low quality at high prices, like tens of others are already doing).
11. Prepare a catalogue with 10 – 20 pages. The client should think that you have “everything”
I know, it is impossible to maintain fresh products for tens of different recipes. But who cares? Prepare a catalogue with 10 – 20 pages, this is what the client wants to see. If something is not very fresh, ask the chef to bake it a bit more.
12. Don’t give them change. It is your right to keep it for the tip
Why should you give them back the change? They should be thankful that you give them a receipt (when you do so). If you see them insisting, ask them in front of their client or girlfriend “can I keep it?” They will feel humiliated and tell you “sure”.
13. Never care about the client’s opinion. Even if he won’t come again, someone else will
The market is full of clients. Why should we waste our energy on each and every one of them? We don’t care if he comes again, that’s his problem. But you should always be ready to serve the next one, this is all that matters. “Serve” I said? Sorry. You should always be ready to empty the pockets of the next one.
(Do you think that I’m overreacting?)