Isan Restaurant

[stormbrewing]

I am considering opening a restaurant for my Thai wife in Khon Kaen. I am a 38 yo American trying to stay long-term (whole life) in Thailand. I don't mind living like the Thais, so I'm only looking to live a good life here. I don't have alot of start-up capital. (1 million bat) and no other savings. Considering visa runs, etc. is this proposition doable?

[IamMaiC]

I think it is doable I seen some retaurants and they look easy to manage. need a good cook though or course. fast but most of them are i'm making myself hungry now you'll have to wait for other members to answer you questions about costs involved and profit potential. but if the thais can do it and live you should also.

[loong]

Haven't you already posted this query at

http://www.thaivisa.com/forum/index.php?act=ST&f=2&t=16386

???

I advise you to take notice of advice already given in that thread.

As regards this posting-----

I don't mind living like the Thais, so I'm only looking to live a good life here.

You have 1 Mill Baht

Take 60,0000 Baht of this cash and go live like a Thai.

Do not even consider starting a business for at least a year.

See how long this 60,000 Baht lasts you.

If you can make it last for 1 year, then yes you can live like a Thai.

If it has gone after 3 months, then accept that yours is an impossible dream and concentrate on building up your capital in US

If things work out for you, then great

If they don't, you will still have 940,000 Baht.

If you jump straight in and invest in a restaurant, ther's a good chance that in 1 years time, you're scratching your head and thinking "what the ###### happened?"

Take this year to learn about Thailand and just as important, about yourself.

This is not intended to be caustic, but realistic.

I could, if ABSOlutely necessary live on less than 15,000 Baht per month but I would not really want to.

Take a look at the other restaurants in the area you are thinking of. How busy are they? What do you estimate the daily take? How much profit are they making? Do the owners look affluent? What rent will you have to pay?

Take into account that you will have a number of expenses initially to set up your new home and business, this will eat into your savings. You will need to save something for a rainy day.

There can be a lot of rainy days in Los

Whatever course you take, I hope that things work out for you.

[Sunbelt Asia]

Nothing new when I say "Not all restaurants make money in Thailand. "I know one in fact that only did 400 baht one night...several nights ago. However most people say" you can't make money in the restaurant business in Thailand. " Well I'm involved with six restaurants and they all are making a profit. I know many other farangs that own restaurants as well and they do well.

I also own a business brokerage that is involved with many restaurants that are for sale. Around 90% of the listings the seller claims that they are making a profit and the other 10% are asset sales. The average restaurant is for sale at 2 times earnings and the furniture, fixtures and equipment are included. This would equate to 42,000 Baht in your pocket in one month. Most experts will tell you that buying a restaurant is cheaper than starting one. Certainly the odds of success are much higher. Nothing like immediate cash flow the first night and seeing if the restaurant is busy or not before you buy.

If you're careful, do your due diligence and you'll be putting the odds very much on your side. Also look for a business that the owner will do some owner financing so you only have to put up 500,000 and finance the balance over 36 months. Try to find a restaurant that has a live in apartment above the business so you save money.

Must say, Khon Kaen would be a very tough market. the reason why is no disposable cash. This is a farming community and they simply don't have a lot of money. Your gross margins will be VERY low.

Much better in my opinion, to either be in Bangkok or a tourist resort. Get legal by forming a company under Amity so you have the rights of ownership. You can even help the business when you get the work permit.

Location and walk by traffic is the keys in this business. Couple businesses come to mind...

BKK11281MR - A chain of Fruit Juice Bars has become available in Bangkok, due to the owners’ urgent overseas relocation. Operating from a centrally positioned five storey building that serves as the headquarters, and with three kiosks in key locations throughout the city, the enterprise sells fresh fruit and vegetables, freshly squeezed juices and fruit smoothies. In the first year of operations, the business enjoyed annual profits of 640,000 baht, from revenues of 3,200,000 baht; these figures can only improve as the product and concept become more widely known, and the owners feel that the enterprise is ripe for expansion, either through the opening of more company owned kiosks, or through franchising. There has been a global trend towards similar concepts in recent years, but as yet no competition exists in Bangkok, and a new owner can benefit from both of these facts. This niche market offers unlimited growth potential, and would provide the new owner with a pleasant lifestyle (there is even plenty of room at the headquarters for the owner to make his home). There is also a fruit and vegetable shop operating from the ground floor of the headquarters building. To be acquired are equipment worth almost 350,000 baht, and booths and furniture worth over 650,000 baht; the asking price has been set at a figure below these two figures combined, due to the urgency of the relocation. Asking price is 875,000 Baht.

The husband in fact has already moved back. The wife is still here and they are motivated. 500,000 Baht and 200,000 financing and they could take it.

This is in Kohg Samui for just 150K if you wanted to start really small.

BKK11248FS - This small Food Outlet is connected to one of Koh Samui’s most popular nightspots. Consequently, good business is being garnered from late night revellers who are keen to curb their hunger. Located at one of the main tourist beaches, with bars and shops all around, the venue only opened for business four months ago. The owner predicts that annual revenues of 250,000 baht will produce profits of 150,000 baht, and the business can be acquired for just 150,000 baht. Rent has been set at just 3,500 baht per month, with a lease that runs until 2008, and is easily extendable. For such a low outlay, the business would be ideal for a first time investor or as a business for a wife or girlfriend to run. Burgers, sandwiches, snacks and Thai food are the order of the day here, and the assets are almost brand new.

BKK11168FS - An upcoming relocation to the North of Thailand forces the owner of this small Koh Samui Restaurant to listen to offers. Established in 2002, the venture is earning annual profits of 250,000 baht, from revenues of 750,000 baht. Serving a Western style menu, the restaurant is located within 50 metres of two large five star hotels. There are 50 square metres of floor space, with seating for 20 customers, and monthly rent is 15,000 baht, with a three year plus three year lease contract. The asking price is 440,000 Baht.

Now like anything in life, go slow. If you are sure you want to own a business in Thailand then buying one where you can make good profit margins will have much higher odds of winning than starting one up in Kohn Kaen. The odds come from giving the tourist walking by.... tasty food and drinks!

www.sunbeltasia.com

[mowlem]

I agree with what has been said already. Live here in Khon Kaen for a year, get to know the place. The pleasures AND the problems. Remember it is no good having a great restaurant if you have no customers, or your rent is too high, or your lease suddenly gets terminated etc. etc.,

There IS money in this town, we have Isaan's only 5 star hotel, a huge university with it's own "village" of shops, (maybe look to open a farang food place there, at the moment, there isn't one) as well as military bases, gas fields, and several large multinationals based here.

But if you are unhappy, everything turns to nothing. A holiday is nice, and you have a high standard of living. But LIVING here is different. Tell me, why do you want to live in Khon Kaen in particular?

Wife's family?

If so, living here may not be such a good idea. Live in a nearby city like Korat, or they may sort of "move in", or expect you to look after their miserable 14 year old nephew, as he can go to a good school in the town. (No English, AND an attitude!) Or rather he turns up one weekend, and sort of doesn't go home.......

Otherwise try www.KhonKaen.com. The forum may help.

[lambada]

Have you been there? After 2 weeks I was over it! Hot, hot Chilli in everything. I enjoyed it for 2 weeks but I got an eye infection and realised I couldn't live there long term. What the ###### do you do? Grow rice? Go fishing? Have kids?