- 5 Ways Tech Is Forever Changing Fitness Franchises Entrepreneur
- The Bullwhip Effect and Your Supply Chain Entrepreneur
- Start These 8 Niche Cleaning Businesses Entrepreneur
Is it true restaurant owners take home this much money?
I am not talking about those fancy restaurants but casual ones that are normally visited throughout the week. My Economics teacher said the owners can bring home on average $1000 a day profit. My sister's really close friend has a family owned restaurant and she is spoiled as hell. Her family really knows how to burn money buying them luxury cars, designer bags and giving them credit cards which she used to buy a plane ticket to Maui. It's not even a high end restaurant yet they can afford such lifestyle. I don't think I want to own a restaurant but I certainly want to own a business. I have the capital but I just don't know what type of business to start.1 year ago - 5 answers
I would not say that those numbers would be typical. For one thing, overhead costs are very high in restaurants. You need cooks, dishwashers, and servers at a minimum. To have a larger restaurant might also require busboys, hostesses, and supervisors. Then there are the energy costs; electricity, gas, and water are all high usage in a restaurant. Then you have food costs- you have to stay stocked because you can't run out of food but you also have to worry about food spoiling. There is also the cost of wasted food to consider. Any order that is put in wrong by a server, or messed up by the kitchen, ends up getting tossed out and remade. Selling alcohol is a good way to increase the profit margin but a liquor license can be expensive and/or difficult to obtain in some areas, so many restaurants settle for selling beer and wine. Then there are the maintenance issues that come up: broken refrigeration units, broken air conditioning units, broken machinery, broken dishes/cups, and plumbing issues (ie: leaking pipes). There is also waste and grease disposal to account for, plus insurance costs, taxes/licensing fees, and possibly advertising costs, not to mention the cost of purchasing or leasing a building. Add it all up and you can see why most new restaurants shut down within a few years of opening. If you have amazing food, good prices, and good service, then you have a chance of making it. The $1000 a day is definitely possible, even for a small restaurant, but not exactly easy. The food service industry requires years of experience or a very quick learner with a bit of luck.
Source(s):1 year ago
You may do Export import business.by Mohd. Aminur - 1 year ago
Some do but about 60% of new restaurants fail within three years. Any new business is risky. If you have the capital your best chance of success is with a franchise because you have a proven business model and training but there's risk even with a franchise.by Howard L - 1 year ago
The typical new restaurant fails in the first year.
Expect to have enough capital to start and run the restaurant for 2 years without income.
If your place becomes a success, you will really (REALLY) earn that money.
If you have a place that has a solid base of customers, you can earn that much and more...but, expect to work very hard for years to earn it.
My cousin has a restaurant, she has had it for 10 years. She works long hours every day. Whenever anyone fails to show up to work...she does their job. Not only does she manage the place, but then does all the book work. It is long hours with no vacations
$1000 dollars a day
In my experience, this would be possible for a restaurant turning $25,000 a week
Its not uncommon for a good restaurant to be making these figures, they'll most likely have liquor sales aswell which gives good profits
Downtown restaurants likely turning $100,000 a week