Words from the wise to chef/ restaurant owner wannabes.
The book I'm reading at the moment (quite sloppily written--reads more like a hardcopy blog) says that after goods, food and wine costs (approx. 35%), labor (35%) overhead (rent, utilities etc., 20%) you're left with 10% profit, which usually goes back into the restaurant.
So it looks like you're fucked if you want to be a chef and you're fucked if you want to be a restaurant owner.
Bam!
That's too bad, because the restaurant at the corner of McGill-College and de Maisonneuve seems to have gone kaput. I look at it every day and imagine how I'd run it. I have no illusions though, so I know it would ruin me to even try.
ReplyDeleteThat place was nothing special on the food front (although they did a few things decently enough) but they had a great terrace with cheap Boreal that was perfect for after-work drinkies during the warm months.
Well, I guess if you got rid of the labor costs by running the whole thing by yourself or with friends (for no pay) your takehome would increase to 45%.
ReplyDeleteTheoretically.
Those number are right and many argue they are actually lower.
ReplyDeleteThere is one caveat: hospitality, is a cash business, so your net revenue can be higher than your gross revenues...
You still have to work 16 hours days, unless you want to let someone do it but...
Your manager knows about your cash shenanigans he'll try and rob you... and your servers will see the manager fill his pockets and start robbing him (you) too...
After that your chef gets jealous of the money the servers are making and starts pilfering the fridge... and the cooks thinks it's good for them too...
Morale of the story: Hospitality is not an amateur's game. Home cooks please stay there...
Blork,
ReplyDeleteIf you decide to go ahead I'll do anything I can to make you profitable. I'll eat there every day!
Scoob, you are probably more than 80% right--it's a harsh world out there in the restaurant business.
The more I read/watch about it the more I recoil in horror at the effort/pay ratios. You'd probably be better off foraging in a dumpster.