Opening A Restaurant

[shanook]

I'm thinking of taking over a lease of an existing restaurant in Samui, as I’m not sure if the business will succeed and I’m very cautious. Is it possible to possible to take over the lease pay the relevant fees and continue to work from the uk until the business does well.

Any information on taking over a lease, the restaurant trade in Samui or running the business from the uk would be much appreciated.

[ajahnlau]

Running a business in Thailand as an absentee owner is a huge no-no. Especially when you're dealing in cash business. Better wait till you're able to go and do it hands on. Then sit across the street everyday for at least a month in low season and watch the traffic.

[Jimbo]

I have been in the hotel business for some time and have worked in various countries. Its well known that restaurant staff often steal. This is not only in Thailand but also in Holland, US, UK wherever.

For a restaurant to be successful you will want it to have good standards (both food and service) and these tend to drop in quality if you are not here. To make a restaurant successful, you will often have to stay on top of the marketing which is difficult if you arent there.

Not only can / will the staff pocket the money which guests pay for their dinners but will also steal equipment, food and beverage supplies and will for example have their own booz behind the bar and sell that. Invouces from suppliers will end up higher then they should be and however is purchasing your goods will pocket the difference. I know that many restaurant suppliers often mark up the bills if the staff ask.

Its rare to find a manager here which you can trust and who wont steal himselve while you are absent. A GF will often also steal from you.. Your best bet would be to hire a foreign manager who will run it in your absent but thatsstill no guarantee for sucess.

To sum it all up: Stay away from it if you wont be able to be there 24/7. If you dont have any restaurant experience then it would also be a good reason to reconsider

[Dutchy]

I have been in the hotel business for some time and have worked in various countries. Its well known that restaurant staff often steal. This is not only in Thailand but also in Holland, US, UK wherever.

For a restaurant to be successful you will want it to have good standards (both food and service) and these tend to drop in quality if you are not here. To make a restaurant successful, you will often have to stay on top of the marketing which is difficult if you arent there.

Not only can / will the staff pocket the money which guests pay for their dinners but will also steal equipment, food and beverage supplies and will for example have their own booz behind the bar and sell that. Invouces from suppliers will end up higher then they should be and however is purchasing your goods will pocket the difference. I know that many restaurant suppliers often mark up the bills if the staff ask.

Its rare to find a manager here which you can trust and who wont steal himselve while you are absent. A GF will often also steal from you.. Your best bet would be to hire a foreign manager who will run it in your absent but thatsstill no guarantee for sucess.

To sum it all up: Stay away from it if you wont be able to be there 24/7. If you dont have any restaurant experience then it would also be a good reason to reconsider

I'll second that, the most usefull advice I've seen in days...

Dutchy

[shanook]

Thanks to you all for your helpful information, I have 2 options. I do have a trusted source that could look after the business or I take the plunge and go for it.

Has anyone had any dealings with Sunbelt Asia? Any comments?

Also I’m I right in thinking that it's not just people with money that take on a business in Thailand (hobby).

I guess you have to take a risk to live the life you want. Has anyone reading this taken such a risk and had success / failure.

[p_brownstone]

Lots of Farang have set up profitable businesses in various fields here in Thailand, but if you hope to be successful it's not a "hobby" at all. Like business anywhere it takes 100% commitment and a LOT of time, a 9 to 5 attitude will never make it for sure.

From your original Post you seem far too unrealistic and unprepared - to even consider trying to run any business in Thailand from the UK is preposterous, and no one with a serious business mind would think it possible to sit 12 - 15 hours flying time away and "(wait) until the business does well" .

Finally - anywhere in the world - one of THE main causes of business failure is under-capitalisation, so to a very large extent it is "just people with money"who make more money - regardless of the type of business. A restaurant business in a place like Koh Samui is by definition highly seasonal; if you don't have the funds to tide you over the lean times you will not survive until the next high season.

To summarise - and be a little "cruel to be kind" - it seems you have limited funds and no real business acumen or motivation, definitely not a recipe for success as a self-employed businessman anywhere.

[shanook]

My comment about a hobby was not directed at myself, it was directed at people with money that live in Thailand and want something extra to do (a hobby).

Yes I have limited funds but enough to buy a business and tide me over the low seasons. I just wanted to cover my arse if all went wrong, that was the idea about staying in the UK and working until I knew the business was a success.

Your right I don't have experience in this field but you have to start somewhere. That’s why I wanted to hear from anyone that was in the same position as me and made it or failed.

I have a Thai fiancée and we have been together for 4 years it was an idea that we both share and wanted to ask for comments from this forum.

[wcr]

Is the gf your "trusted source"?

If it is then I would say I wouldn't call her trusted. I run a business here, and if I'm not pulling the strings things don't happen, even with my partner involved in the business. Never trust anyone but yourself in this country.

[shanook]

That's why I never mentioned it in the first place, there will only be a negative responses about it.

Some people can be trusted.

No I’m not naïve before anyone says it, and yes I have been to Thailand many times and stayed for periods of up to 6 months and have many Thai friends.

[wcr]

I'm sorry shanook but your original post did show naivity in the question you asked.

Its your money and your business. But you asked for advice, and thats mine, someone who speaks from experience and runs a business here.

[shanook]

Can we get back to my questions.

[appleman_thai]

Well I may have some interesting news for you.

I have been working here in Bangkok for last 3 years as an expat doing computers but decided to set up my own restaurant with my thai gf. I met her in the restaurant and like the guy with the razor blades - i liked the restaurant so much that I bought it!!!.

But it wasnt easy at all..... it took 18 months of planning, organisation and most of all - patience!!!!!.... and the place isnt even open yet!!!...

I could write a book about all the experiences that I have been through but I think I will wait for a while cause I am sure there will be even more stories to tell in the next few months.

I did/am using Sunbelt Asia for all legal matters and for now I will hold back any comments about recommending or not recommending them!

Trust no one is good advice but you also have to take risks in life - otherwise you would get nowhere....

I will be posting more details on my grand launch on this website later........

[shanook]

Att: appleman Thai

Thanks for the info...

Strange I’m also in the IT Business!

Did you take over an existing lease?

Was the restaurant running before you took over?

I look forward to hearing about your experiences

[appleman_thai]

Shanook,

Its a real long story but basically the premises has been running as a restaurant for 12 years. Originally set up as a restaurant by the landlord and then he leased it to a few others...... most recently it was a French restaurant and that was when I tried to buy it.

The tenant moved to Sri Lanka and tried to run the business from there..... major disaster - he had no control.

So it looked good for me to take it over but then there was a big dispute about the contents - who owned what - the landlord or tenants??!?!?

ANyway, long story short - the place was closed down. Nothing happened for a couple of months and now I am fitting out everything myself - new kitchen, tables, fully renovate the entire premises, new name, signs and most importantly I have sourced an excellent chef and his team of staff........

Its all go now...........

Where are you working at the moment?

[Sunbelt Asia]

Shanook,

I think everyone has given good advice. I would second or third the advice not to look to own this business until you can monitor it yourself.

The restaurant business is a good business but long hours. 'My wife and I are partners in 5 of them and one of the reasons I work from 8 a.m to midnight 7 days a week. We just acquired a small stake in one yesterday High overhead with over 200 employees and live bands. The new main shareholders are absentee but one of the reasons they created phantom stock for the MD and ask me to invest in it as well and monitor from time to time. One of his lawyers told him he had a 99% chance of failing being absentee and strongly advocated he not invest. It all comes down to trust and they checked the MD in and out and every which way. To these investors it was pocket change and they took the risk after very careful due diligence.

However with a small amount of money and looking to invest in Koh Samui as a absentee owner outside the country, is a VERY HIGH RISK so please don’t do it at this time.

When you are ready to move to Thailand, do however, acquire an existing business instead of a start-up. Huge advantage but please do it when you're in Thailand. Then the odds are on your side. Still have risk but at least you'll care if the buisiness works or not versus an employee. Most businesses do 20% more in sales having an active owner manager.

I was interviewed in the last issue of Thailand Opportunities magazine on restaurants and owning one. It was a four page article with some good advice from other experts as well so if you get a chance, get a copy.

Good luck in the future.

Regards,

Greg Lange

Sunbelt Asia

[email protected]

[shanook]

Att: Appleman Thai

Thank you for letting me know your experiences so far, I hope it all goes well for you.

You ask where I am now, unfortunately I’m not in Thailand, I live in Jersey in the Channel Islands. If you don't know it, it's a small island between England and France about 45 miles square with about 80,000 people. A very beautiful island with not a lot to do.

Att: Greg Lane

Thank you also for your comments, I’ll try and get a copy of your review in the magazine.

[appleman_thai]

Shanook,

No worries at all.... I think the message is loud and clear..... dont try and run if you are not here in THailand.......

I know the jersey islands well...... it used to be a tax haven for irish tax dodgers but i think all thats gone now!

I will keep you informed on developments... keep watching this space.

Later