Whats needed to start a restaurant?

[sikishrory]

Everyday I see businesses for sale or a space where a restaurant once was that has a "for rent" sign hanging on it.

I don't think I would ever do it as I have a very good job already but being a Chef that has worked and lived in Thailand for years it does cross my mind. Especially given the rubbish food people get away with selling everywhere.

I am on a marriage visa and if it made it less complicated could put things in my wifes name perhaps.

Otherwise what would be needed to take on one of these restaurants with a "for rent" sign hanging on it?

Do you need a company?

Work permit goes without saying.

What else?

[Peterw42]

You need the company (capitial, 3 thai employees etc) to give you the work permit, WP will be as manager not cook.. Not much in the way of local regulations, except maybe getting an alcohol license if close to a school. 

[sikishrory]

Thanks.

How much cash do you need to start a company then? I thought it was about a million plus

[ezzra]

If you want to make a million baht running a restaurant, you start with 2 millions baht....

[1FinickyOne]

I'm going to go with a good stove first - - is this a quiz? - - just kidding but good luck to you...

[BoganInParasite]

What is required is a realization that at least 80% of them appear to fail within a couple of years.

[maybefitz]

I spent my working life in catering. Apart from tecnical skills, the next is place, situation and location (ie, the same thing). Passing trade is important to get established. So many fail because they are off the beaten track. Another thread suggests work permit no longer an issue, this might open the door for you. Best of luck.

[mike324]

In todays world, you really need to do your research and sometimes even hire outside consultants to craft your menu and drinks. Truth is not everyone can cook and run a restaurant, thats why so many fail.

[CanuckThai]

5 hours ago, ezzra said:

If you want to make a million baht running a restaurant, you start with 2 millions baht....

Yip, I was thinking if you want to retire as an expat millionaire in the restaurant business in Thailand, invest 10 million...should leave you with a cool mill(baht)...

[gaff]

If in your wife name and you do not show your face, NEVER, you do not need any investment. Just pay the rent and sell.

 

 

[Belzybob]

6 hours ago, sikishrory said:

Thanks.

How much cash do you need to start a company then? I thought it was about a million plus

Before you worry about creating a company, first you need to do a business plan.  Correctly done, a business plan will show if it is a potentially viable business or a hole for throwing in money and waving it good bye.

[Bangkok Barry]

If other businesses in that location have failed you have to ask yourself why? And what would make your business different, successful? And no matter how good a chef you might be, you have to produce what the customers like, not what you like. They might not be the same.

[NoshowJones]

2 hours ago, mike324 said:

In todays world, you really need to do your research and sometimes even hire outside consultants to craft your menu and drinks. Truth is not everyone can cook and run a restaurant, thats why so many fail.

I think the big problem would be that if the restaurant was successful, some Thai would open another one similar

nearby and you know what the next step would be.

[khunPer]

7 hours ago, sikishrory said:

Do you need a company?

Work permit goes without saying.

What else?

Think at least twice, before you head into a restaurant business in Thailand; if you don't have anything special to offer, you may just loose your money. I've seen many go down, some lasted 3 years or more – a close friend was among them, unfortunately borrowed most of the money from blue-eyed me – others hardly 6 month; and I've seen less having great success and making good money, so it's indeed possible.

 

You'll need a company, either a partnership with a Thai wife, or a normal Thai company limited. Shareholder capital shall be not less than 2 million baht, cash payed in for one alien Work Permit, and also 4 Thai employees. You can only own 49 percent of the shares, one or more Thai nationals shall own 51 percent; however if you are an US national, you can establish a business under the US-Thailand Treaty of Amity. A minimum of 3 shareholders are needed to establish a company, which will cost around 50,000 baht (+/-) in fees.

 

There is an ease in Working Permits at the moment – see today's news section – so things might become more easy, also that one can own a business without a Work Permit, but you might still be limited in what kind of work you can perform, as some job are reserved for Thais.

 

You'll need a license to sell alcohol.

You'll need staff, and to train that staff to compare with the quality level of the service you wish to provide.

 

It seem to me that many fails in calculating the time it takes to build up a steady ongoing business, so make sure you have enough money to survive until the restaurant can show a profit; and that might take a couple of years. Others seem to do what's already there, without any major difference in concept, and therefore hard to justify both yet another restaurant of that same kind, and a price level needed to survive; i.e. do a local investigation first, and make both a budget and business plan.

 

Starting a business in Thailand is often hard work – might even be much harder work than opening a business in one's home country – so if you don't intend to be there, you might fail. My friend had a fine concept idea – targeting tourists and expats, and could therefore be priced little higher than the typical Thai-food restaurants in the area – and he started out quite well, but thought he could own and manage a business, and enjoy life at same time. He soon realizing that he couldn't make ends meet, and he didn't have enough money for daily loss-operation until his business became well known, but that was already almost too late. So he headed part-time off to work abroad, whilst his business slowly went further down when not being there, until it one day was it. He lost his dream of a restaurant in Thailand, and I lost (some of) my savings, being a patient friend.

 

In the area I live it seem like three fold more foreign owned restaurant are closing than surviving, even some of them had different concepts that was not at all there. Some invested several millions in building that different concept, and still failed after a few years; first business for sale, then just a deserted location for rent.

?

[sikishrory]

8 minutes ago, khunPer said:

Think at least twice, before you head into a restaurant business in Thailand; if you don't have anything special to offer, you may just loose your money. I've seen many go down, some lasted 3 years or more – a close friend was among them, unfortunately borrowed most of the money from blue-eyed me – others hardly 6 month; and I've seen less having great success and making good money, so it's indeed possible.

 

You'll need a company, either a partnership with a Thai wife, or a normal Thai company limited. Shareholder capital shall be not less than 2 million baht, cash payed in for one alien Work Permit, and also 4 Thai employees. You can only own 49 percent of the shares, one or more Thai nationals shall own 51 percent; however if you are an US national, you can establish a business under the US-Thailand Treaty of Amity. A minimum of 3 shareholders are needed to establish a company, which will cost around 50,000 baht (+/-) in fees.

 

There is an ease in Working Permits at the moment – see today's news section – so things might become more easy, also that one can own a business without a Work Permit, but you might still be limited in what kind of work you can perform, as some job are reserved for Thais.

 

You'll need a license to sell alcohol.

You'll need staff, and to train that staff to compare with the quality level of the service you wish to provide.

 

It seem to me that many fails in calculating the time it takes to build up a steady ongoing business, so make sure you have enough money to survive until the restaurant can show a profit; and that might take a couple of years. Others seem to do what's already there, without any major difference in concept, and therefore hard to justify both yet another restaurant of that same kind, and a price level needed to survive; i.e. do a local investigation first, and make both a budget and business plan.

 

Starting a business in Thailand is often hard work – might even be much harder work than opening a business in one's home country – so if you don't intend to be there, you might fail. My friend had a fine concept idea – targeting tourists and expats, and could therefore be priced little higher than the typical Thai-food restaurants in the area – and he started out quite well, but thought he could own and manage a business, and enjoy life at same time. He soon realizing that he couldn't make ends meet, and he didn't have enough money for daily loss-operation until his business became well known, but that was already almost too late. So he headed part-time off to work abroad, whilst his business slowly went further down when not being there, until it one day was it. He lost his dream of a restaurant in Thailand, and I lost (some of) my savings, being a patient friend.

 

In the area I live it seem like three fold more foreign owned restaurant are closing than surviving, even some of them had different concepts that was not at all there. Some invested several millions in building that different concept, and still failed after a few years; first business for sale, then just a deserted location for rent.

?

I guess not applicable to me but I think I read that with that amount in a company you can get an investment visa right? Or did that get changed to 10 million? Thanks for your answer though I didn't know it had to be 51% thai also.

[sammieuk1]

After my foray into the restaurant business some years ago and can quite safely say an exit stamp should be your first consideration.? 

[catman20]

Otherwise what would be needed to take on one of these restaurants

 

your brains tested ?

[ChouDoufu]

it would have to be something really, really special.  either the location or the menu.

 

if you have a successful starbucks©, next thing you know there will be half a dozen other coffee shops  (at least one spartucks and a strawbuks) on the block selling at half your price.  if still managing to draw customers, you'll find a couple guys with pushcarts camped on the sidewalk in front of your store selling instant coffee undercutting all of you.

 

pretty soon you won't sell enough coffee to make tea money.

[khunPer]

1 hour ago, sikishrory said:

I guess not applicable to me but I think I read that with that amount in a company you can get an investment visa right? Or did that get changed to 10 million? Thanks for your answer though I didn't know it had to be 51% thai also.

Thanks for your reply. Investment Visa is to my knowledge 10 million, and that need to be invested in a few certain "products", which for example can be a condo, or Thai Government Bonds, or investment in projects that have been approved by the Board of Investment of Thailand. I however, haven't heard that investment in a restaurant could qualify for an Investor Visa, but things might have changed...?

[thrilled]

I don’t believe you’ll need much at all.Just remember to not invest more than you can afford to loose.

[rgraham]

When you stop dumping money in it she is not going to be happy. Been there , done that, lost the T-shirt!

[dinsdale]

What's needed? Common sense not to do it. Very easy really. Still if you've got money to waste good luck.

[sikishrory]

If its all in wife name no company needed right. just stroll on in and start paying rent?

I won't be doing this, I just see so many people doing it and wondered. It's hard to believe that these people have 2 million baht companies behind their little dusty rundown shops that serves schnitzel and fries with 1x leaf 1x slice of tomato 2x slice of cucumber.

Theres an Italian restaurant in a quiet soi near my condo. rarely see more than a couple tables in there. I really don't understand how it survives.

There are so many failed businesses around. Hence all the for rent signs. Just seems fantastic that people who have the intelligence to set up a 2 million baht company are also setting up shop in these dodgy looking premises... Often in quiet backstreets where people never really go.

Surely they are in a wifes name or a Thai associate?

Maybe years down the track I would consider it but for now my job pays much higher than I would earn in a successful little restaurant here.

Thanks for answers anyways.

[khunPer]

59 minutes ago, sikishrory said:

If its all in wife name no company needed right. just stroll on in and start paying rent?

Yes, and it's wife's restaurant only, even (partly) financed by foreign husband or boyfriend. And there's probably a good reason why you see so many of these former restaurants "for rent".

 

Where I live, a tourist destination, many set up 2 million or more companies, and invest millions of baht in property, or leased buildings, and inventory etc. As I mentioned I see more failed than success; however those having success makes really good money, but none of them are "little dusty rundown shops that serves schnitzel and fries with 1x leaf 1x slice of tomato 2x slice of cucumber"...?

[South]

Easily done with minimum outlay but location/location/location and market/market/market. A small place in a tourist destination may struggle whereas a small place in a 'Thai' town might flourish.

 

Check out the competition, area and pricing and you might well succeed. It's a tough market though.

[seancbk]

On 7/30/2018 at 9:07 AM, Peterw42 said:

You need the company (capitial, 3 thai employees etc) to give you the work permit, WP will be as manager not cook.. Not much in the way of local regulations, except maybe getting an alcohol license if close to a school. 

 

More importantly, you need real experience working in and running a restaurant.   You then need to really understand that the experience you have managing staff etc in the West will mostly not apply when managing staff in Thailand.

 

[casmeri]

My father told me; There are two things every man believes he can do, run a restaurant and build a house.  My observations in life and in particular Thailand bear this out.

Best of luck.