Mariano Contreras ⋅ Scottsdale, AZ U.S. Army, Specialist ⋅ 8 years served

Hello Bjorn,
Today is your lucky day!! I have over 35 years of experience in the restaurant/service industry, both nationally and internationally. My parents were both chef's who started in the "back of the house" (industry term for kitchen). My father eventually opened his own restaurants and my mom went on to run the dietary department of a major NY hospital. I also have a a couple of uncles and cousins in the industry. In fact, most of my immediate family and close friends either work or own restaurants. The majority of them started overseas first (Spain, Portugal, Italy and Argentina) and later continued their careers in the good old USA. I worked for most of them at one time or another starting with my dad's place at the age of 10. I've been a busboy, waiter, chef, executive chef, manager, corporate trainer, territory manager, national manager, a member of the board of directors and as a consultant. I've also owned more than one restaurant over the years. I left the industry in 2014 but I still have many contacts and more knowledge about it than 95% of the people working in it presently and I'm always glad to help another Vet.
Most of my career was spent ( I'm semiretired) as a Pizzaiolo ( traditional Italian pizza maker). I was was taught the trade by the family that opened the fourth of the oldest pizzeria's in America. I would mention the name but I'm a private person and I'm also what many consider royalty when it comes to the pizza industry so I'm constantly hounded by people I don't know so excuse me for not sharing much here but I will be glad to do so in private. I'm not trying to brag, I don't consider myself anything other than lucky. I was just a kid with a best friend who's family believed and trusted in me. a private. Just to give you an idea and a quick lesson the oldest pizzerias in the US are all in the Tri-State are ( NY, NJ, CT) and they are all either wood or coal fired (ovens). The first was Lombardi's - NY, NY (est 1905), followed by Papa's Tomato Pies - Trenton, NJ (est 1912), Totonno's - Brooklyn, NY (est 1924) and the Original Frank Pepe Pizzeria Napoletana - New Haven, CT (est 1925). The aforementioned are all famous but I would venture to say the place I worked at was much more so than all of them because of the people that frequented it's original location in Harlem ( it's still there, but the family sold it and moved the location to Brooklyn ). Back in the day Harlem was a prime uptown location which made it a convenient stop for famous Yankees such as Phil Rizzutto, Joe Dimaggio and Yogi Berra. It was also frequented by luminaries like Frank Sinatra, Dean Martin and Tony Bennett who became regulars as did cops form the 23rd precinct and the wiseguys in the neighborhood which is why Francis Ford Coppola ( In the early 1970's, it became his late-night haunt) used it's ambiance to shape his actor's performances in his blockbuster film The Godfather. I worked at their Brooklyn, NY location which was rated by Zagats as the best pizzeria in NYC for 9 years in a row which is why on most days the line for a table is multiple blocks long. It's also why everyone who's anyone has been there before. Name a politician, actor, musician , sports start, mobster, lawyer, author, and more than likely I've met them before and I was just a manager. In 2002 I was part of the four man team that took the Brooklyn concept national. We set up the company in Scottsdale, AZ and eventually opened 14 locations with over 1500 employees. I left the company I'm speaking about in 2008 because I was completely burnout so I took a year off and went to work managing a few locations for a friend in 2009. I satyed ther till 2010
I can give you all the information and advice you will ever need. Most importantly, I can show you how to open a restaurant for a fraction of what most people and corporations spend. Start up costs are very important because they are one of the major factors in determining what type and size of restaurant you can open and how quickly you can become profitable because until you do you haven't made it. Start up costs are changing and increasing all the time mostly due to zoning and the health department. There are costs for things I bet you never even heard off like FRP (Fire Retardant Protection) sheets, Halon fire systems, and inside and outside grease traps which can run in the tens of thousands and which all new restaurants are required to have by law. I can show you how to open without any of those things and still be compliant with the law.
Let me be honest the restaurant industry is tough, and it's not for everyone. Most places fail in their first year and most take multiple years to become profitable. I'm proud to say I've never been seriously involved with a place that failed and all the restaurants I played a role in developing or owned were profitable within 16 months at the latest which is unheard of in the industry but it wasn't easy I had to work 7 days a week, 15 hours a day for 12 months without a day off for it to happen and with little or no pay. I also had to put up with asshole customers, flaky employees and my family constantly bitching at me because I had no time for them. And all of it while watching every penny, dealing with the city, county, or state, the IRS, my vendors, landlord, the media and my competition. I'm not trying to discourage you I'm being brutally honest because it's better you find out know instead of down the road when it's to late. You need to think of your business as a marriage that comes first. And if you are in a relationship or actually married be ready for it to suffer not only because of the time away as I mentioned before but because of all the temptations either real or imagined. The industry is filled with vices and broken people. You usually have young staff and older management, you work long hours together, it's a cash business and you will get to know many people that work at other restaurants and bars so you end up with a bit of a party, lots of addictions, some theft and lots of infidelity so it's important you surround yourself with the right people. When it comes to most of your staff you have no choice, you will get lots of problems and lot's of turnover that's just the way it is so you have to make up the difference in management. A piece of advice, surround yourself with people who question you and disagree with you if they truly feel something is wrong because in the long run they will save your ass while yes men will let it all come crashing down.
My first question to you is why upscale? Better yet what is your idea of upscale? Do you have any restaurant experience? Let me be frank cooking at home or for a few friends is nothing like running a restaurant. The same goes for people who have been to culinary schools which I find are often dreadfully unprepared for the reality of the industry. Personally I wouldn't go upscale even though the pizzeria I took nationally is considered so because we are traditionalists. We only use coal or wood fired ovens which take years to master because they are very rare. and most of our locations are in upscale neighborhoods which is why most of our locations have over 250 wines on their list. Upscale comes at a high price in every way, it's least forgiving, most labor intensive, your food costs are higher, your wares costs are higher, your employee pool is much smaller and much more expensive and more than likely so is your lease. Why spend 100 to make 10 % on one meal when you can spend 100 and earn 25% on 25 meals? Volume is your friend remember that.
Let me get you pointed in the right direction by suggesting that you seriously look into Zagats Guide and James Beard they are two industry publications that rate restaurants in a host of categories which you can give you a better understanding of a particular area as well as a quick way to compare pricing, fare, ambiance, demographics etc. I can also get you your tables for what your food cost percentages , etc should be as well and I will give you some idea of what your P&L Sheets should look like.
Good luck.

Mariano Contreras ⋅ Scottsdale, AZ U.S. Army, Specialist ⋅ 8 years served

Hello Bjorn,
I have over 35 years of experience in the restaurant/service industry nationally and internationally. My parents both started in the "back of the house "(kitchen) as chef's and eventually opened their own restaurants as did two of my uncles who did it a bit differently by starting in "the front of the house" (dinning room) as managers and Maitre d's. In fact most of my immediate family and close friends either work or own restaurants. Most of them started overseas first (Spain, Portugal, Italy and Argentina) and later did so in the good old USA. I worked for all of them at one time or another starting with my dad's place at the age of 10. I've been a bus-boy, waiter, chef, executive chef, manager, corporate trainer, territory manager, national manager as well as a member of the board of directors. I've also owned more than one restaurant over the years. Most of my career was spent ( I'm semiretired) as a Pizzaiolo ( traditional Italian pizza maker). I was was taught the trade by the family that opened the fourth of the oldest pizzeria's in America. Just to give you an idea and a quick lesson the oldest pizzerias in the US are all in the Tri-state are ( NY, NJ, CT) and they are all either wood or coal fired (ovens). The first was Lombardi's - NY, NY (est 1905), followed by Papa's Tomato Pies - Trenton, NJ (est 1912), Totonno's - Brooklyn, NY (est 1924) and the Original Frank Pepe Pizzeria Napoletana - New Haven, CT (est 1925). The aforementioned are all famous and well known but I would say the place I worked for was much more so than all of them because of the people that frequented. The place was located ( it's still there but the family sold it and opened in Brooklyn ) in Harlem and its prime uptown location made it a convenient stop for famous Yankees such as Phil Rizzutto, Joe Dimaggio and Yogi Berra. It was also frequented by luminaries like Frank Sinatra, Dean Martin and Tony Bennett who became regulars as did cops form the 23rd precinct and the wiseguys in the neighborhood which is why
Francis Ford Coppola ( In the early 1970's, it became his late-night haunt) used it's ambiance to shape his actor's performances in his blockbuster film The Godfather. I worked at their Brooklyn, NY location which was rated by Zagats as the best pizzeria in NYC for 9 years in a row. To give you an idea of how popular the place is the line for a table is usually multiple blocks long. In 2002 I was part of the four man team that took the concept national. We set up the company in Scottsdale, AZ and eventually opened 14 locations with over 1500 employees. I can give you all the information and advice you will ever need. Most importantly I can show you how to open a restaurant for a fraction of what most people and corporations spend. Start up costs are very important because they are one of the major factors in determining how quickly you can become profitable. The restaurant industry is tough, most places fail in their first year and most take multiple years to become profitable. I'm proud to say I've never been seriously involved with a place that failed and all the restaurants I played a role in developing or owned were profitable within 16 months at the latest which is unheard of in the industry. My first question to you is why upscale? Better yet what is your idea of upscale? Do you have any restaurant experience? Let me be frank cooking at home or for a few friends is nothing like running a restaurant. The same goes for people who have been to culinary schools which I find are often dreadfully unprepared for the reality of the industry. Personally I wouldn't go upscale even though the pizzeria I took nationally is considered so because we are traditionalists. We only use coal or wood fired ovens which take years to master because they are very rare. and most of our locations are in upscale neighborhoods which is why most of our locations have over 250 wines on their list. All of it comes with a price and I'm not just talking about rent. Anyway let me get you pointed in the right direction by suggesting that you seriously look into Zagats Guide and James Beard they are two industry publications that rate restaurants in a host of categories which you can give you a better understanding of a particular area as well as a quick way to compare pricing, fare, ambiance, demographics etc. Im a private person and I'm also what many consider royalty when it comes to the pizza industry so excuse me for not sharing much here but I will be glad to do so in a private.

k h ⋅ Pittsburgh, PA ⋅ 4 years experience

Hi Bjorn,

I do HR for a restaurant group. We have a few upscale restaurants and the success I've seen that has come from those restaurants is based on the chef and the menu. Without them our restaurant wouldn't exist. Of course there are a lot of other things that come into play (location, atmosphere, price) but when getting involved in upscale/specialty restaurants it's the chef that will make or break you. If the food is good enough/unique enough/etc. people won't mind the price, the location, etc.

Do your skills lie in the front of house or back of house? Like others mentioned, I would definitely recommend spending some time in management at someone else's restaurant. Learn all of the positions in the front and/or back and take away their successes and failures. We have had many cooks in our restaurants move on to open their own places.

George Oestreich ⋅ Fort Lauderdale, FL First Service Residential ⋅ 40 years experience

I will reply with some questions for you, based on my 40 years managing private clubs:

1- do you enjoy working holidays
2- do you enjoy working 15 hours a day
3- do you mind working often 7 days a week
4- do you enjoy having most clients as critics
5- do you enjoy one of the toughest labor markets
6- do you enjoy the task of constantly training new and old staff
7- do you enjoy trusting many people with "your cash"
8- do you enjoy the thought that most restaurants fail within a short period of time

As a manager, which many advisers and I suggest, you will experience/observe all of the above questions, except #7. Try the management path first and then decide if you want to venture into the industry as an owner.

David Akre ⋅ New York, NY A NYSE listed financial company ⋅ 25 years experience

Bjorn - work in one for two years before you open one. Not easy but it can be done. You'll need six months cash in the bank after you open the doors too. Best of luck.

Richard Ashe ⋅ Houston, TX Veteran Franchise Advisers ⋅ 30 years experience

Restaurants are probably the most challenging business as you can see from the comments above. Have you considered a franchise restaurant? There are a myriad of themes and cuisines and with a franchise you have a partner that has an interest in your success. Franchises provide many support services like site selection, lease negotiation, training, etc. If this is your first restaurant it is an option you may want to explore. In addition, from a lenders perspective you may have a better chance at getting funding for a franchise.

Good luck!!!

Ed Raws ⋅ Pembroke, MA Division 10 Specialties ⋅ 40 years experience

You will need money and a great chef. Difficult in starting out. Maybe better to start out in a large company managerial program for awhile and keep making contacts as you learn from their programs.
Gook luck.

John DeNoy ⋅ Ridgewood, NJ Neudesic ⋅ 20 years experience

Bjorn, Thank you for your service.

My dad was in the restaurant business most of his life and owned a coffee shop for over 35 years. This business is extremely risky and requires a great deal of capital and time. I would suggest that you spend some time working in the industry first as a manager and see if you have what it takes to be a restaurant owner. Johnson & Wales in Providence is less than one hour from where you live and they have one of the best Restaurant Management Programs in the country - I attended there myself. Please feel free to reach out to me and I will connect you with my Dad who is also an Army Veteran.

JD

Robert Beaven ⋅ Jaffrey, NH Skillsoft / Vree ⋅ 22 years experience

Bjorn,
Although I am not familiar with the Veteran programs available to you, I owned a restaurant for over 6 years. During that time I was able to understand why so many restaurants fail...it is not a business, it is a lifestyle. I would recommend, after creating a business plan, looking around at the area you are trying to start a business and gain a space that has a reputation for good building management. One of the largest drawbacks I encountered was owning the building. The cost for maintenance was difficult on top of keeping food costs down, staffing happy and consistent patrons. I can give suggestions as you go through the process. Feel free to email me anytime. Good luck!

David Jackson ⋅ Midland, MI U.S. Army, Specialist ⋅ 3 years served

Bjorn,
There is an organization that helps veterans in starting a business for free. It's called Vet Biz Central and if you Google it you should be able to get-in-touch with them. I know they will be able to advise you on your questions/concerns.

Diane Shaheen ⋅ Lee, MA Private Estate ⋅ 25 years experience

Hello, I also wanted to make sure you are getting newsletters from the USDA and SBA which are government organizations. Small Business Administration has a wealth of information.

First, you need that business plan. It is your blue print for your "business". Cost, menu, location, hours of operation, employees, insurance, décor, plates, silverware, glassware, linens, stoneware, trays, tray stands, coffee makers, food costs, Health Department Regulations, training manuals, uniforms and the list goes on and on.

Show what you want, calculate everything you can possible think of; you'll need it to secure money from SBA. Your business needs to be put down on paper so you see it.
That does not cost you anything but time. Get a book at the library. How to Write a Business Plan. There is software to you can purchase.

Is there a business incubator in your local area? Contact area colleges to see if they offer any guidance with opening a business. Those classes are pretty well priced.

You can pick up books at the library for research. Do it on line too. Just because you spend more money on a seminar; does not mean they will have better information. I love SCORE! You need to ask for a mentor. They give you, what I would call 'homework'. They want you to have your eyes open to all possibilities.

Good luck, you know you can also rent kitchen space and start with catering to build your business before you get a building.

Bjorn Byfield ⋅ New Haven, CT U.S. Army, Private First Class ⋅ 3 years served

Rich and Diane, Thank You for your advice. I've been to a SCORE seminar before (hosted on my College Campus) and I guess the information being put out was just so broad that I wasn't able to be receptive. Not to cause blame, but would you say each SCORE seminar is different depending on the state and representative that hosts it? I just really feel like I should've received more out of it as to why I wrote it off so quickly. Rich, you have a very impressive resume! I look forward to getting in contact with you soon. Thank you again Diane and I'll be sure to look up some upcoming seminars in my area. I was just wondering though, does the cost of the seminar depict the amount of information you receive? I mean seeing as how I went to a free seminar and recieved very little information to assist my needs, besides: business cards, a SCORE folder with a pamphlet, and the best advice was to call them for more information.

Richard Gauger ⋅ West Chester, PA ⋅ 35 years experience

Hi Bjorn,

I am a SCORE mentor with 35+ years experience in foodservice distribution. You can review my resume on the SCORE website at https://www.score.org/mentors/richard-gauger.

I primarily am engaged in face-to-face counseling but I also have chosen to be set up in SCORE for email counseling on Tuesdays which means basically that I'm available in the system every Tuesday, After the initial contact, we could email back and forth anytime.

Contact me If you're interested. I would look forward to helping you with a business plan.

Congratulations on your entrepreneurial spirit and thank you for your service to our country.

Sincerely,

Rich Gauger

Diane Shaheen ⋅ Lee, MA Private Estate ⋅ 25 years experience

Hello, I would recommend SCORE. www.score.org. It is a way to get retired and current business owners advice. Free and low-cost seminars. Free, $10 and $25 some may be slightly higher. Find one in your area by visiting their website.

First thing you need is a business plan. There are books and webpages that are plentiful. But again; SCORE will be a mentor while you get your documents and research ready.