So you want to invest in an outlet?
I really do enjoy this time of year, what with as there are many exciting and tradeshows and events on that showcase this amazing industry I am so passionate about.
I have been fortunate, in the last couple of weeks, to attend and moderate several Forums where debate and discussion has been at a pace over investing in F&B operations in this part of the world and there have been some key take-aways that I would like to share with you when approaching this as a potential business opportunity.
Leave emotion at the door. Many many people I have spoken to over recently, decide to get into this business based on emotion. There have been countless situations whereby investors want to get into this industry because they have experienced an outlet or concept in another country and loved it. They just had to have it here! Much as I completely understand this passionate approach, before looking at investing, make sure the fundamentals are solid.
Understand the partnerships expectations. Whether you are looking to partake in a franchised operation, stand alone brand, or create one yourself, understand what the expectations are from the Brand owner, Landlord, Franchisor, etc .. and be sure that they align with your own.
Before you look at ROI…look at breakeven. This is kind of critical, as often occurs potential restaurateurs get caught up in the excitement of opening their restaurant and how quickly it will (hopefully) pay its self back. But before that high kicks in, first look at how much will its cost each month to run, because without that then we don’t know what our break-even looks like. And the numbers might surprise you…