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Starting a Restaurant from Scratch,

a Step-by-Step Guide ©

As Seen in Entrepreneur Magazine!
click here to read article

So you want to open a restaurant? You are not alone. Each year thousands of entrepreneurs fulfill their lifelong dream opening their own restaurant. But unfortunately dreams of success can quickly turn to nightmares when many operators suddenly find themselves shutting the door after the first year. In fact, odds are that:

9 out of 10 restaurateurs who open their doors this year won't be in business three years from now. 

So how can you beat the odds?

The key is learning from the mistakes of others, and avoiding making them yourself. Opening a restaurant is not rocket science but a few mistakes especially at the early stages can mean success or failure. Between having money in the checking account at the end of the month to pay the IRS and your employees and not.

Learn how to avoid the most common mistakes and pitfalls when opening your restaurant.

In this industry there are no guarantees of success, but by following a few simple guidelines you will drastically increase the likelihood that your restaurant will still be around three years from now.

"Starting a Restaurant from Scratch - A step-by-step Guide" is my 90 page e-book based training course designed to guide the emerging restaurateur through a step-by-step approach to opening and operating a successful restaurant. It is available in Word or PDF format and will be e-mailed to you for immediate use. The information provided is compiled from the seminars I conducted and my 25 plus years in the restaurant business.

The course is designed to answer such questions as:

Major Topics include:

Hey, if you don't believe me, I am giving you a free sample lesson below to see if I know my stuff. This information  alone if applied will save you 1,000's on the life of your lease. Trust me on this one.  I was the Controller for a major seafood chain and I was involved in negotiating leases. Do not ignore this info even if you don't decide to buy this e-book.

The following is an actual section of Chapter 7 "Legal, Tax, and Insurance Considerations when Opening a Restaurant":

The following is an actual section of Chapter 7 "Legal, Tax, and Insurance Considerations when Opening a Restaurant":

LEASE NEGOTIATION

Your restaurant lease can be one of the most important documents that you enter into, and can ultimately make or break your restaurant. It is basically your key source of financing, and is a key criterion when evaluating the value of your restaurant. Consequently it is highly advised that you spend the time reviewing your lease carefully with a qualified attorney prior to signing. The following are some considerations when negotiating your lease: 

REMEMBER YOU ARE NOT THE ENEMY

Be confident when you approach a landlord. Leasing agents are no longer looking at restaurants as second class citizens. Successful landlords realize that a well run restaurant operation enhances the area's property value and attract customers to surrounding businesses, thus he will be very open to a well thought out concept.

With high vacancy rates and the need for good food service establishments, it is quickly becoming a buyer's market for lease space.

LEASE PROVISIONS

Negotiating a lease is basically a point-by-point process. Don't be intimidated by the legal jargon, and be sure to get clarification on any point that is unclear. Each provision is basically spelling out the responsibilities of the landlord and tenant, and consequently one point could have a financial impact on the business of thousands of dollars over the life of the lease. You should review each point from a worst case scenario so you have a clear picture of the potential financial impact over the life of the lease.

Lease Term - Lease terms generally range from 5-20 years. The longer the lease the better. If you should decide to sell, you will be selling out a good lease term. I recommend that you ask for a 5 year lease with a minimum of three 5 year renewal options. That way if for some reason things don't work out (i.e., you have to close) you won't be stuck paying out a long term lease.

Base or Minimum Rent - This is the minimum amount of rent that you would pay and is generally expressed as a dollar per square foot per month. The range can be across the board from $1 - 8 per square foot depending on the location. You need to seriously consider the maximum amount of rent you can pay, and not allow the landlord's claims about the high cost of real estate to force you into a lease that you cannot afford. Also, make sure that you measure the total area that you are renting, as landlords do not always accurately state the total square footage in a lease.

Percentage Rent - This is the amount paid to a landlord over and above the base rent. It is based on a percentage rent of Gross Sales. For example, you may have a base rent of 7,000 vs. a percentage rent of 5 percent, which means that if you achieve sales of over $140,000 per month you will begin paying percentage rent on top of your base.

Percentage rent can be a strong negotiating point on a lease and can be used to provide a lower base rent. i.e., you can offer the landlord a lower base in return for a higher percentage rent. If sales are flat, then you will have to pay less out on a monthly basis. If sales are good, you will pay more rent. This tactic can be especially useful if you're not sure what volume you can expect. As mentioned in last week's lesson, if you need financing you can also offer a high percentage rent in return for the landlord kicking in some of the money for the leasehold improvements.

Gross Sales Defined - When entering into a lease that includes a percentage rent provision it is of utmost importance to define gross sales as favorably as possible to you. I recommend that Gross Sales would exclude sales from vending machines, lottery, retail (e.g., hats, shirts, and mugs), telephone rebates, and possibly event take-out and outside catering sales. In addition, you should also deduct from Gross Sales any credit card fees and sales taxes from the total. In short, take out as much from sales as possible, and leave it up to the landlord's attorney to put the amounts back in. Unless the landlord is really experienced in negotiating a restaurant lease, he/she may not see the potential long-term economic impact of these exclusions.

Rent Abatement - You should put a clause in your lease that will provide rent reduction or total abatement in the event of some unforeseen disaster (e.g., fire, flood, road construction, earthquake, other acts of God, etc.). You should not be expected to take the total hit from interruptions in your business that is outside of your control. The trick is determining how long and how much the abatement should be for. I suggest putting a clause that would say that it is up to the landlord and tenant to come up with an agreeable amount and term, and if it cannot be resolved that it be taken to arbitration.

Use of Premises - This provision basically tells the tenant when and how he/she will be utilizing the space. Make sure that you read this carefully and include a broad enough definition as to how you will be using the space so as to not restrict you or a future subleased tenant's activity. Be especially careful as to any requirements to be open at a certain time (e.g., breakfast) that may not be profitable for your business but that would be profitable to a landlord (e.g., because of a percentage rent clause).

Assignment and Subleasing - Make sure that you have a provision that allows you to sublease the property, without additional charge, and that the landlord will not withhold any sublease from any reasonable tenant. If your restaurant is profitable, and you decide to sell it, you should not be restricted in who you sell it to.

Repairs and Maintenance - In some cases you will be renting equipment fixtures. You should be certain to clarify who pays for the maintenance of the equipment and how often they should be replaced and at whose cost.

 

In addition to practical content such as the above, each lesson is enhanced by on-line forms, examples, related links, complementary feedback from the author. To view a sample form Click Here! I also will include a free subscription to my on-line newsletter the F&B Manager that contains more great information about how to run a successful operation. In fact if you want it free now just go to my site www.ranw.com and you can subscribe right now. It is free!

Course Delivery

After registering for this course you will receive the e-book within 48 hours. [MAKE SURE YOU SUPPLY ME WITH A GOOD E-MAIL ADDRESS]

ORDERING INFO

Registration is fast and easy.  Simply goto our  SECURE ORDER FORM to submit your payment of only $29.95 and registration information.  Or if you prefer you may register by phone by calling 1-412-260-7612

 Guarantee

If for some reason you are not completely satisfied with the course content after you will receive a FULL TUITION REFUND.

BONUS!

So still not sure? I can understand your hesitation, but to be honest you won't find a book with this much information on running the restaurant for this price, but I am so convinced that you will find the information useful I will through in 8 bonus lessons.

Order now and receive my 8 lesson e-mail  "PROTECTING THE PROFITS, INTERNAL CONTROL FOR RESTAURANTS, absolutely FREE ( a $19.95) value!

Restaurant Theft is a Fact! According to a survey in Restaurant Business, approximately 5-8% of Gross Sales are lost due to some form of theft. If you are a restaurant doing $75k per month, this equates to $45k-72k a year in theft, or approximately $125 - $200 per day. This figure may be high for some, but trust me, it is probably low for others. I saw one bookkeeper take over $75k using a gift certificate scam alone! So what can you do to protect your operation? Educate yourself.

I've given my seminar "Protecting the Profits - Internal Control for Restaurants" at various restaurant shows across the country and I am now offering it via e-mail (frankly, I don't want to travel as much).

Protecting the Profits is a 8 week e-mail based training course designed to take you through the essential ingredients of internal control for restaurants. It not designed to make you an expert but I guarantee that it will provide you with dozens of practical tools to help shore up any holes in your own operation.

Topics include:

  • Why Employees Steal
  • Creating an Environment that is Ripe for Theft
  • Symptoms of Theft
  • Principles of Internal Control
  • Methods of Theft
  • Gift Certificate Fraud
  • Bartender Theft
  • Coupon/Rebate Fraud
  • Customer Fraud, and more!

The following is a sample section from the course:

Examples of Charge Card Fraud
(taken from Lesson 7)

Prevention Methods

1) Submitting a customer charge more than once.

2) Using stolen cards to create fictitious customer charges

3) Recording a higher amount on a customer charge than the guest check.

4) Listing incorrect charge amounts on the Daily Sales Report (back office fraud).

a) Review charge slips daily for customer signatures, duplicate charges, missing slips, etc. Compare each charge to the charge summary by server.

b) Have servers initial each charge ticket. If you have a problem later you will know which server to follow-up with.

c) Follow-up on all Charge-Back notices received in the mail. You usually only have about 10 days to contest a charge back notice, so make sure that you keep all charges neatly filed away.

d) Compare charge sales per charge summary (visa machine) with the charge sale breakdown on your POS Z-Tape.

e) Compare charge sales per Z-Tape to the amounts recorded on the Daily Sales.

Guarantee

If for some reason you are not completely satisfied with the course content after you will receive a FULL TUITION REFUND.

ORDERING INFO

Registration is fast and easy.  Simply goto our  SECURE ORDER FORM to submit your payment [of only $29.95] and registration information.  Or if you prefer you may register by phone by calling 1-412-260-7612

Course Instructor

Your course instructor is Chuck Gohn - President of Restaurant Associates Northwest, a consulting firm specializing in accounting systems and cost control for the hospitality industry.

Mr. Gohn has over 25 years of combined hospitality and accounting experience including Vice President and Controller for Pacific Coast Restaurants. He has spoken for numerous trade shows and restaurant associations throughout the US, and prides himself on presenting the often mundane and technical aspects of restaurant accounting in a format that is practical and entertaining.

Here is what some of my satisfied customers are saying:

  • Excellent E-book. Worth much more than $$ paid!!!
    Highly Recommended!!
  • Very informative book - Thanks Chuck!
  • Fantastic book, Plus to our business, can't say enough!
  • EXCELLENT BOOK! Very well written with a wealth of information! 
  • Excellent material, great for the beginner, I found it very useful.

Remember….If you purchase this book and decide it is not for you, I will give you a FULL REFUND. PLEASE BE ADVISED THAT THIS E-BOOK IS A WORD 97 DOCUMENT [also available in PDF format] THAT WILL BE EMAILED TO YOU UPON PAYMENT. 

YOU NEED TO HAVE MICROSOFT WORD 97 OR LATER OR HAVE ACCESS TO IT TO OPEN IT. You can also download a free Word Browser at
http://www.microsoft.com/downloads/release.asp?ReleaseID=13268
SINCE THIS BOOK IS SENT VIA E-MAIL THERE IS NO SHIPPING CHARGES UNLESS DESIRE A SPIRAL BOUND COPY MAILED TO YOU. IF YOU DO DESIRE A SPIRAL BOUND COPY PLEASE ADD $14.95 FOR PRINTING AND SHIPPING

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Any questions or concerns? E-mail me at chuck@ranw.com