Restaurant Start up Mistakes: How to open a Restaurant
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- Опубліковано 29 вер 2014
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So many restaurant start ups fail before they even open because of one crucial mistake: they haven’t picked the right location. Today, I am sharing my 3 tips for picking the perfect location for your new restaurant.
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Hi, I am Ryan Gromfin. Welcome to my UA-cam channel, The Restaurant Boss. Here you will get tips on how you can increase restaurant profits, control restaurant costs, improve your restaurant marketing, lower food costs, find more time in your day, general business operations, and more.
I want you to have the restaurant of your dreams, so I post weekly training tips for restaurants and bars of all kinds - fast food, QSR, dine-in, fine dining, food trucks, sports bars, and more. Tips range from controlling food cost and lowering labor costs to restaurant specific marketing and management.
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Are you considering opening a restaurant?
BBQ house and Dance hall.
The clientele is right
Fresh college faces every year
Other venues over 3 hrs away, but town already has a few draw points.
Thoughts?
Yes
Yes!!!
Some say he is still searching for the perfect location
hahaha
why to open a restaurant to much work and 60% of new restaurants close down in 3years. Need too much money to open. I made 240 000£ in 6 month check my channel.
HAHAHAHAHAHAHA!
Daniel Huynh HAHAHA
Daniel Huynh THAT'S WHY I CAN'T OPEN A CAFE BECAUSE OF THE AREA.
Video ends at 0:27
My grand opening is tomorrow I'm scared to death wish me luck...😐
OlJerms how was your opening?
OlJerms Good luck you could do this. I'm also going to open a business wish me good luck also.
How did it go?
The grand opening went ok we worked out some kinks and is going a lot smoother now we are more established I’m in a very high tourist area right by Disney World but it’s slow season right now but we are still doing pretty well. Thanks👍
Glad things are going well.
Im just 15 years old but im preparing for my future
AskmeHow 34
Find that perfect location
I'm 16 and doing the same 😂
I am 30 and doing the same😆
AskmeHow 34 good morning dxn drink dxn healthy coffee make money contract me inbox
@@tykittleson1800 i'm 14
I own 12 Businesses, This guy is right on spot!!! You guys are lucky to receive this on your feed. Ryan, a large factor you need to cover, employees!!
Thanks Byron! I have several videos on employees...let me know if something is missing and I will add it to the list.
How to open a Restaurant:
You need a location.
Thank you Master Wizard.
lol
People said I need more permit and education from college is that true
To open some food business
I have lot many idea how to make my country food and many people like that too I am dreaming to open small food business but people scare me that I need to go college to get certificate is that true??? Plz help me
I love your name!
If you plan on having a restaurant with lots of regulars then the location isn’t too important. People become regulars if you have good food for a good price and the workers are nice. Most places in good locations tend to be overpriced and have much more uptight customers
I'm a Hospitality professor in Mexico and this is gold to me...Thanks!
I want to thank you for putting out this video. My dream and passion is to open up my own restaurant. I have a great idea and plan and with your guidance and know how I know I will be very successful.
+Kevin White , Happy to help! Good luck!
👍👍
Kevin White three years now.. can you tell us about your story!
@@osamaaljabr7413 5 days since you asked him. So, what's up?
Did you open it?
So let’s summarize:
1. Location
2. Lease
3. Food
4. Employees
5. Enough money to buy good quality of all the above. It boils down to capital. Money buys experts and experts make great decisions.
More or less, that is a decent summary.
thank you boss. very good video especially for me who just about to setup a cafe in a mall
Huge thank you again. It really helps to give us your pointers about initial thoughts about starting a restaurant. Even if I am on the second or third step from opening, this video is a helpful reminder of where to look from
You are so welcome! I am glad the video was helpful and wish you much success!
This is an on-point explanation of how location and lease play a significant role when opening a restaurant. Thank you for this excellent content! 🙌
Glad you enjoyed it!
Thank you very much for that! good stuff to know.
I wasn't sure if location was important. Thanks for clearing that up for me.
I did enjoy and I have been trading from home over 6 years and still looking for the right location
The best thing you can do is tell your enemies to open a restaurant. The Perry Group study concluded that most restaurants close during their first year of operation. Seventy percent of those that make it past the first year close their doors in the next three to five years. I worked in the F&B industry for 28 years and I see problems every time I eat out. If you are going to open a restaurant, make it a hit and sell it within 3-5 years. 3-5 to make your money back, then sell for a profit. Rinse and repeat. What I learned for ANY business is that most are undercapitalized from the start. Take the number you THINK you will need to open, then multiply by 3! Especially in the case of restaurants, there will always be some city, county, or state inspector who walks in the door to tell you you need to move a sink, install new equipment, get a permit, etc. etc. ad nausea. Or they are looking to be greased.(Bribed). People have little idea what it takes to staff, and maintain, a restaurant. The F&B industry is the last bastion of employment for the alcoholic and drug abuser. Maybe some labor jobs are included, but not everybody can perform labor jobs in the trades. Why is it the last bastion? Because restaurant owners cannot afford to drug test their employees, and the only people willing to work the shitty hours with fluctuating, non guaranteed pay, are alcoholics and drug users who can't get or keep a job anywhere else. Or they are students or young people who only want part time, or don't really NEED the money, as they live at home and pay no rent. The workers are, for the most part, transient, and temporary. Why drug test someone who is going to leave in 3 months anyway? If you did drug test, you would not be able to hire enough people to staff your business. Training staff that are just going to leave to go back to school, or move on to the next best job or a busier place where they make more money, is endless. So what happens when they don't show up for work? YOU the owner, or the manager, have to take up the slack. This is why being promoted to manager was never something I wanted to do. All the responsibility, not enough renumeration for the effort. So now you own a restaurant and you are there ALL THE TIME. Forget your home life, your life is your business. AND your product, is perishable. It can't sit on the shelf for a year, and much of it you throw out or should throw out after 4 days of being prepped. That is unless a care less chef or waiter decides to serve it anyway, your customer gets sick, and decides to harpoon you on social media. You better be a good bookkeeper and know how to write off your waste. But I am getting ahead of myself. You already were getting fucked by your suppliers. They send you lettuce that is already wilted, and when you order 4 pounds of duck you better weigh it. Most likely there is only 3.5 lbs in the package. I had ordered lean fresh ground beef one time. It came in a clear plastic bag and looked great at first blush. On the outside a perfect product. Pink and lean on the outside. Hidden on the inside a big ball of fatty old brown shitty beef. It goes on and on. Then there are the customers. Today people want to send the food back constantly. Or eat a half a meal and complain, so they don't have to pay. Ask for extra this or that. All just to not have to PAY for their food. They know that they can destroy your reputation on YELP, or whatever online review sites, so you are going to do whatever it takes to make them happy.
Tell them "this is exactly what you ordered, PAY for the meal". They will kill you on social media, or walk out. Do you really have time to call the cops and sign an affidavit and create a police report. Of course not. Those picky customers who just want to complain and NEVER say a nice thing about any business, will skewer you on social media and review sites anyway. They left smiling... be prepared to spend an hour of your day, every day, just rebuking reviews online. You could have done everything right, they will bitch anyway. You better have a damn well streamlined process ordering and getting out your food. I have worked at many restaurants with a shitty software system for ordering. Finding the right company and the right platform is arduous. Many systems cannot be modified by the customer, but require a visit from the company supplying the hardware and software for the ordering system. Getting replacement equipment takes weeks, if the company is still in business. Changing the menu, near impossible. If you don't have a Bluetooth ordering system for your staff, you are way behind. Most chefs are latinos these days. They will LEAVE without any notice if they get a better offer. Once you've trained them, if they find a better place to work, or you piss them off in some way, even your best worker will jump ship WITHOUT ANY NOTICE and never answer your phone call again. I've seen it happen over and over. Loyalty is not a term associated with the restaurant business. Then there is the liability insurance and the chance of getting sued. Fees for Uber Eats or whatever delivery company you want to hire, or you are tasking your poor, alcoholic and drug addict staff to drive their under-maintained vehicles to deliver your food. Again, not reliable. Then the electricity goes out. Throw out all your refrigerated food and start over. Hot weather and your A/C is not working? Nobody is going to stay and eat at your restaurant until its fixed. BTW they blasted a message on social media that your restaurant is too hot, killing your business until you get your staff to write another 10 positive reviews. The pitfalls are endless. Want to share your cooking skills and recipes? My best advice, have a dinner party instead.
Well there is everything you mentioned, and then there are also restaurants that make good money, provide great lives for their owners and employees. Owners get to choose which restaurant they want by the decisions they make everyday. You can make money or you can make excuses. You can results or you can complain. You don't both in life, pick one.
All industries have pros and cons... similar things could be said for rental properties ... these businesses are not for everyone, but if done and planned well, they can create wealth and many of the typical problems can be minimized
Great vid ! I’m from Caribbean and dream of opening a Caribbean restaurant . I have the concept the skill but no location or financial backing . From Long Beach Cali to Brooklyn New York . The flavors will soothe any appetite . Help !
Good luck, I don't get involved in raising capital, but there are people you can learn from who can help you. Most of all, you should be cooking and working in restaurants to gain that knowledge and those connections.
The first thing is you, as the owner, should know how to cook and like to cook. If not, you shouldn't open a restaurant. You would become the chef's or the cook's puppet because you would have to do everything he/she says. If the cook wouldn't do the way you told, you could step up or the whole place would shut down.
Exactly if you love something you won you will be the best
Right 👍
Danny Meyer is one of the best restaurateurs in the world and he doesn't cook at all.
@@timothygalvin3021 he did at one point. also, shake shack isn't cooking its assembly.
@@milothegreatful Danny Meyer is a lot more than shake shack
Great video and even better information. You hit the nail in the head, location and terms of the lease determine the success or failure before a restaurant even opens. I have open two restaurant with two very different concepts each doing well because of the location they're in.
so important, most challenges new restaurant face are due to poor locations.
Thank you , the info. really helped.
You're the best. Im going to watch every video on your site. Opening ip a restaurant is a great dream of mine.
I have seen many small restaurants, who opened in what they thought was a prime location, near a large amusement park, and still went out of business. They could not manage the demand by the tourists. Staff was impossible to keep. So make sure the location is in a place where the demand is something you can keep up with.
So many things go into opening a restaurant. That's a great example!! Ryan created a Concept Development Workbook because - just as you said - so many things to consider. Totally free if anyone would like it: www.therestaurantboss.com/toolkit
-Dawn, Team TRB
Thank you very much for sharing your knowledge!
Glad it was helpful!
Thank u for this info
Good info, I will catch up with your videos. Thanks
Thanks for sharing ur valuable thoughts
My pleasure.
SUPER GOOD AND SPOT ON!
Good Location, Good Food, Good Services, and with a great lease. You'll success in restaurant business. I've failed because my lease plus the 3N were too expensive. I had great food, gtreat service, and great loction but the location is too expensive and I couldn't make much profit so I got out as soon as the lease expired. Because the extension will cost even more.
All about cost control, right?!
Thanks for the info!!!
💓🙌 this video was straight to the point and I definitely enjoyed this video
Thank you!
Thank you for sharing.
My pleasure!
Thank you!
Location played a big part in my second restaurant. The location is important that is for sure.
I think in my location a small/family owned restaurant being successful really depends on community and appearance. Right off I 91 in this area there’s a casino,the basketball hall of fame, and a yearly state fair that lasts 2 weeks
Thank you. Very helpful.
Your welcome!
i do enjoy whst i see here . thanks for all the info . i been there . owner always said . oh dont worry about all that said in the lease . i turn that down a few time when owner said that and do not want to update the lease .
Good information I'll check out your sight
Great video. Thanks for taking the time.
My Pleasure
Thanks
good advice because i see some restaurants that are actually pretty good but the location is not good so not a lot of people can enjoy the food the make
Thanks Ryan,I will definitely watch more of your videos..maybe you are the solution for my dream business..coz I don't know how and where to start it.
Definitely watch the videos - there is so much great content to help you get going. If you need more personalized help, jump on over to therestaurantboss.com/hire-me and grab a One Thing call!
Very valuable information, thank you!
You are welcome!
your info helped me solve the truble ;-)
Really perfect and so useful, you are a professional. Than you a lot.
You are very welcome!
Dude I need your help on a number of things. Great info on the video. Thanks.
There is a contact me form on my website, therestaurantboss.com, I would love to help you with anything you need. You can also fill our a form for a complimentary strategy session under the 1 on 1 consulting tab.
This helped me out. Thank you man
You are welcome!
First class info. Very helpful. Charles
Great stuff man. You should do a video where you do a bunch of tours of restaurant models and interview their start up stories!
Great idea! Once travel opens up again, I will make a note to do more videos from my client visits.
Another great video thank you for the insight. What is the rule of thumb and how much I should be spending monthly on my lease?
Really liked the no short term leasing tip
I'm only 16 but I have a pretty good idea of what my restaraunt will be! I'm so excited!
Awesome, Jacob! Keep working towards your dream!
thanks Boss your videos are great. I started a small diner but it failed due to location. the problem is not just the location but it was actually people around the area of my choosing. the location is great but it's the people's mentality and culture that failed it.
+Marvin G. please give a detailed information about how the business failed,because your comment has terrified me
I think its a mistake to blame your "customers" for your failure. Although it is tempting to do so, you will never succeed with this mentality.
Here is the thing. Its really easy to blame others for our failures. There is no doubt that there might be a challenge with the mindset and culture of the guests in the area, but you chose the area and you chose the concept. If its not the right concept, change it. Small restaurant owners make this mistake too often. They think they have this amazing new idea that is going to change everything. When people taste their food their minds will be blown, its different than anything else. TRUST ME I love distinction and I love outside the box thinking, but you don't have the budget to educate your customers. You can push the envelope here and there, but likely you just pushed too your customers too far out of their comfort zone. Dial it back a little bit, survey your guests, find out wha they want and then GIVE IT TO THEM!
*****
Boss I can't do that because there are other shops around that sells the same thing that they want but they know ours are much better but they don't like the price we give them. I don't use special or prepacked flavorings I mix up all my spices others are just buying store mixed sauces and such for their food and almost 10 of the shops are selling all the same foods that they want but they still want but with the most delicious taste but they don't want to pay the price. I don't blame the customers I blame their mentality. it is actually on the locals but other residents there are only few of them are our patrons but they cannot help to keep us in business the city is a much better place for us which is a much. I live in Philippines by the way so yes the culture and mentality we have to consider that. and I have passion and pride with my food so I cannot adjust to them. restaurants like ours are earning so much in the city which is actually just 30mins drive.
Really great tips Ryan.
Thanks Ryan, very helpful l!
You are welcome!
great piece!
Glad you enjoyed it!
great video it helped me a lot
Great! So glad we can be of value.
thanks
life saver!! thanks
your welcome.
Obviously you want a good location. You want a good lease. But there are tons of fantastic restaurants in my area that don't have the best locations yet are super busy all the time. Why? Because the food FRESH TASTE FANTASTIC and it's Consistently fantastic. People will drive across town if the food is that good. You have to try the food every day and make sure the staff is on point. You can have the best location, building and millions of dollars to back it up but if the food is shit you will not succeed. If you have a nice clean place with a nice staff and the best food in town you will be busy it's not rocket science. Hire a lawyer to handle the lease, don't do it on your own.
neema jeena very true. But it definitely starts with the food, if you don’t have above average food your just another restaurant . My girlfriend and I will drive 30 min to go to a good place.
That is true
Imagine ur restaurant is in poor area or somewhere like hidden quiet street😕
@@nesshs9405 no soup for you 😂🤣
I will go anywhere there is good food. I am a chef myself and rarely eat out. But I will drive hours for that one meal that I know is worth it.
👏👏👏👏👏 On point!
thank you
You're my guardian angel. Thank you!
+Pawl Gwapo WOW, thank you!
What options in the contract should be asked of the owner? three months before to start paying the contract? or until we have the licenses to open?
Location is extremely important. Also the rent correlating to that location.
Very educational
Love your channel bro
Appreciate it!
I'm about to open a restaurant, and I'm going to follow all your advice, I hope I have good news to give you when I'm operating.
best regards
Good Luck...
thanks! the restaurante It's in Chile (country in south america), maybe I know him by name.
Its an interesting project i think... because i have one restaurant totally operating, and i will open a second restaurant just at side... so i will operating two restaurants with only one kitchene and administratives cost.
I must to tell... one year ago my first restaurant was near to go to bankrupt... but i follow a lot of your advices and now works very well... So thanks a lot for your videos...
I can give more information if you want, It would be very good for me if you can advise me.
Juan Alberto Parra Opazo i would like to come and do all your wine service. How about a bunch of really nice Washington state wines?
Love your video
Thanks so much for the comment and watching the video!
Great video. I Have a location, I started out as bakery and mini -mart, then I switched to bakery and restaurant due to clients demand for food. My challenge is how to restructure to fit a bakery and resturant. Pls reply.Thanks
Thanks Ryan it was very helpful I’m trying to open up Afghani restaurant wish me luck buddy ❤️🇦🇫👍 Usa 🇺🇸
Good luck, love Afghani food...!!
Abson Thottiyil thanks bro I’m working so hard to make it happened inshallah ❤️
Lol...you should open one in my area...I'll be your first customer..😀😃 blessings!!
Abson Thottiyil thanks bro for the support I live Northern California maybe in the future let’s start with one and see how it goes
Best of luck!
Great advise thanks.. but you were there in production section without hair net 🤣 thats a violation😄
Ha! Good thing it was my blooper reel. LOL!!!
Thanks I really need to start up a small not big can I use the same things u have told as
Absolutely - small, med, big...it all applies!
I have been looking for that perfect location for last 40 years
Now I should retire from finding perfect location job
LOLOLOL!!!!
LMAO
tnx
I have an idea a layout of how I want it to look. And if I was to build the building that I wanted it in what location would be best? Like one alittle closer to the city or one kinda in between...it’s like a rustic laid back feel for it. Kinda country feel.
Sounds like you have a great vision!
@@Therestaurantboss hehehe'''rustic indeed!
It's true about the good locations but there are also many other criteria like internal and external factors.Internal includes
1)Creditors
2)Staff
3) working capital
and external factors include
1)Competitors
2) Economic condition s
3) Demographic situation
I've think about to open a seafood buffet restaurant?? Beside a small shopping mall? Is this ok
Need suggestion
very good brother
Excellent video, and 100% agree for your comment.
I have 2 place & just 3 years the lease contract, I don't know how much they will increase it after that.
For sure in future, minimum to be 5 years and above .. Thanks
Yeah it is a tough situation to be in, but I understand the fears of signing a long lease! So glad you enjoyed the video, have you see my new video series at restaurantprofitandperformance.com?
I like thish video thanks keep its up
cool
check this link also bit.ly/2IOwHvd talks also about it
Thanks, I’m looking to open a cereal bar/ cafe. Looking for any advice that’s how I found you. Thanks Ryan
Glad to have you here, good luck!
My dads parents owned a tester aunt unfortunately it was burned down by somebody who got fired earlier so I am looking into culinary school and name it after my grandparents old business also lots of teenagers loved their food so much that they would leave on lunch break and get food there even though I’m still young I’m gonna get their eventually
Keep learning and make sure you start your restaurant with a good platform so you are setting yourself up for success! Good luck and keep with it!!!
sir im planning to start up a restaurant but I don't have idea how to start what initial to be planned etc.. could please help me
Hey I already got the location and the concept
just I'm abit nervous cause many people don't have much faith in me -_-
They just envy 😉
+♥DpsRager-NeverGiveUp_In_life♥ I have the same situation. Hopefully it can workout for both of us
+♥DpsRager_Stream♥ hey man the same thing happened to me until i helped open a restaurant for a friend of mine, i already studied hospitality, but had no courage coz nobody believed in me, i helped my friend open his and boom!! it was a success now i have the courage to open my own and more experience follow your gut, research as much as you can and then go for it, I'm opening mine soon ;)
exit negative ppl from your mind and just think about what your customers will like and live up to the expectations..
And did you already started?
i need to have a chat with you .. i am going to open my retaurant in delhi india .. i watch your videos i really admire your work
okay so if I was to open an Restaurant What would I need First, How much would it cost, what type of Restaurant should I have and how much I Should charge for my Restaurant's food on the menu and I 100% agree to every single thing on what he said Like and yes It is hard to open a business even a Restaurant but I never fort that Restaurant's would fail as well like as mostly when I seen people open a small Restaurant or an big type Restaurant there making like tons of sales each day or month but after watching this video and getting some info from it I know see why now that them Restaurant's are starting to close down due to the fact they could not pay the rent and yet I think it's best for any business to go for the short term contact and not a long term as you never know for sure if it would work or not. In regards to opening a Restaurant how much is the avg cost in total to start one or dose it all vary?
Can you please explain how to manage your partners in the resturant bussiness thank you love the vids👍
Sure I will add that to my list.
would it be easier to buy a property and build or take over an a established restaurant?
I opened a restaurant in my garage but we have carry out and delivery only. Moving to a brick and motor location now!
Thats cool.
Good idea man.
How is that legal?
I knew a Greek couple who made the tastiest food hands down. They would open up a restaurant, build it's reputation up, sell it, and move to another location. Your food quality and reputation follow you. If you have AMAZING FREAKING FOOD, location is not THAT big of a deal. Some of the most successful restaurants are in hard to reach locations but people will go if you exceed expectations. If you build it, they will come.
Sure, those are the rare expectations. I know lots of restaurants that have AMAZING food and terrible locations that terribly slow. You should always seek the best location for your concept possible. Some concepts will do better off the beaten path, that does not make it a bad location, that makes it a great location for them.
You r right Thanks becu I have one restaurant but.. not right location thasway naw I ll sale this restaurant..
Good luck finding the right location! I highly suggest finding a commercial realtor that can help you.
Location is always my biggest worries because i think all good location already leased
You just have to keep looking and think outside of the box sometimes.
Interesting video
I have a location which is not so dense populated but the people there are kind of ready to spend on a nice cafe environment.....it's a tourist destination.......but IAM worried if the less no of population there could effect my sales in long run......please reply I would be grateful
People don't understand how difficult it is to open a successful restaurant. They think "oh, I'll make good money". You need to live and breath food. If you don't have a passion, you will NOT be successful
We could not agree more! Passion + some general business skills + great hires. :)
I could not agree more. People who have never worked in restaurants should not open restaurants. You can be the greatest cook in the world, if you know nothing of business, you will loose your shirt. People think they are going to have a home life. To the contrary, they will be at the restaurant or doing something to support the restaurant, most of the time. A day off? What's that? That vent system coated in grease is not going to clean itself! Nor will the clogged drain or busted refrigerator fix itself. Someone has to get the ingredients that did not come in on time from the supplier. Etc. etc. etc.
What's your advice to those people who are not good in studies but want to open a restaurant, bar, mall etc
So if the right location is important in starting a business. How would one go about finding out if the location your in is the right one. Can I create a survey on social media asking if they would eat at my restaurant? Including why, and its benefits.
There is no magic formula for this, surveys are useless, people will tell you they will eat there, but that is because of its a survey. Your first location is a risk, all are a risk, the risk goes down as you add more locations and learn, but you can create a document that answers questions like who is my target customers, how old, what do they wear, what do they drive, how many kids, what kind of job, income etc... then look for locations that fit that profile. Don't make the rookie mistake, "everybody is my target audience" BULL SHIT. You may get a 60 year old couple eating at your restaurant, but if you are a funky bar serving aggressive food with craft cocktailsand a DJ, they are NOT your target audience.
Hi!We are from Italy and we want to open a nice bar/restaurant in Houston!With a lot of Italians stuffs!Do you think is that a great Idea?Thanks for your answer!
Hi Giovanni! Welcome to Houston. There are so many questions that must be asked before I can say yes or no. First and foremost is analyzing the competition in the area of Houston that you wish to open. If you are finding a gap, then it might be worth exploring. If there is a lot of competition there, then you need to really figure out how you will differentiate yourself. That's just a start. There is a lot more involved, of course. If you want to talk one on one, please go to therestaurantboss.com/hire-me and grab a One Thing call. Thank you!
I have a location parking sux but im looking into a cary out resturant. I have no ventilation and was wondering if i need one
It will depend on your equipment and the local codes, check with your city.
Hi Ryan,
Wondering if you have any videos on business plans? i have a concept and a location that I feel is perfect for what I want to do. I've been a chef for a while and this is my first time trying to go out and own/lease a place. Any suggestions?
Hire a professional who has done this all before to help you build your plan and guide you through the entire process. And don't tell me you can't afford to. If you can't afford to pay a few thousand to somebody who can help you create a successful restaurant and avoid the common mistakes, you likely are not in a financial position to take on a restaurant.