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Posted

Good idea...I shall remember that one.

In a country town I visit there is an all you can eat that does huuge business.

Piles of meat that looks like a salmonella hotel to me, but there would be easily easily 100 people a night in the place.

Posted

Good luck man! At least you have a plan! thats better than most..................hahahaha!

So the business that closed down couldnt figure out what their problem was? It all seems so silly- are you sure you not missing something?

Posted

Sounds reasonable to me, good luck.

They will probably attempt to sell the fixtures & fittings / goodwill, etc for a few million Baht. If you don't pay that you might have a long wait.

Posted

So you give away pork worth $6. To make that up patron need tabs of @ least $70. assuming gropp profit % of 11%(which i would consider low).

Then if operator wants profit he needs patron to eat 5lbs of rice and drink 20 bottles of beer....................hahaha.

No wonder he was the only one doing the DEAL. and doesnt want to go back to it.

Since when is a proven business model defined by months of opearting.

Posted

Sounds reasonable to me, good luck.

They will probably attempt to sell the fixtures & fittings / goodwill, etc for a few million Baht. If you don't pay that you might have a long wait.

Fixtures and fittings are owned by the tenants of the venue.

We wont be requiring them. We have all our own equipment, all we will need are tables. chairs and the charcoal burners which can all be picked up cheap.

The owner of the venue owns everything else and is included in the rent. They will not be able to keep their gear there till someone buys it all, they would have to keep up the rent and bills.

Posted

I know my numbers are way off...lol. minutiae doesnt matter. Only a fool think $80k will generate $6k a month in profits in a run of the mill korean bbq. A no-brain man....hahaha!

3 months with a gimmick is not what i call a succesful proven business model. What a goofball op is.

Posted

will you do 2 free servings for TV members ?

maybe we can rent a tour bus to visit you :)

but really it sounds like the numbers work in the short run , but will the customers stay around for 1 year-2 years or longer ?

or will they go to the new place down the road selling the next "Fad food" for 10% less ?

Posted

I know my numbers are way off...lol. minutiae doesnt matter. Only a fool think $80k will generate $6k a month in profits in a run of the mill korean bbq. A no-brain man....hahaha!

3 months with a gimmick is not what i call a succesful proven business model. What a goofball op is.

You really ARE brain dead.

80,000 baht to you converts to $80,000?

You have been getting ripped off mate.

You call ME a goofball....... lol

80K BAHT is nothing to me, and is worth a punt any day.

Such is your obvious lack of business nouse, I think I will stick to the absolute opposite of what you think and I should be safely successful. This is my soon to be 5th business here in this town, and the other 4 are very successful.... I have lots of confidence in my abilities.

So why are you teling everyone how to do it........I'd have thought your mouth would be completely shut

ps I've just located the Tenants and back handed them a 100k........You're no longer number 1 on their list..........See my point

Posted

I know my numbers are way off...lol. minutiae doesnt matter. Only a fool think $80k will generate $6k a month in profits in a run of the mill korean bbq. A no-brain man....hahaha!

3 months with a gimmick is not what i call a succesful proven business model. What a goofball op is.

You really ARE brain dead.

80,000 baht to you converts to $80,000?

You have been getting ripped off mate.

You call ME a goofball....... lol

80K BAHT is nothing to me, and is worth a punt any day.

Such is your obvious lack of business nouse, I think I will stick to the absolute opposite of what you think and I should be safely successful. This is my soon to be 5th business here in this town, and the other 4 are very successful.... I have lots of confidence in my abilities.

So why are you teling everyone how to do it........I'd have thought your mouth would be completely shut

ps I've just located the Tenants and back handed them a 100k........You're no longer number 1 on their list..........See my point

Nobody on here even knows what town I live in, let alone the restaurant in question..... So your point is exactly?

  • Like 2
Posted

Posts containing flames & responses deleted. I suggest you keep it civil otherwise closed.

Moved to SME in Thailand.

Posted

In a restaurant, your highest single cost is food. Rent, labor, equipment maintenance, utility, paper goods, etc. will in total exceed food costs, but as a lone item food is it.

In a sit down restaurant with table service food can't exceed 25% of gross receipts. ideally it should be less.

If you're food cost is 25% and you give one away free, you are toast. There's no profit left after you pay labor and rent and utilities etc. They were probably losing money with that promotional deal.

I can't remember which famous person said this (jokingly) but he said "we lose money on every sale but we make up for it in volume." smile.png

Most restaurants have a food cost more like 30-35%. Profit margin in the food business is pretty slim.

Posted

Only a few people in this world have vision for a successful business , I make profit in every thing that I do because of having the balls to do it where by others just stand by and watch in awe.

Go for it mate, best of luck and strike while the iron is hot.....

Posted

Good on you ! .. We visited a dead Korean BBQ the other month through accident and talked through the possibilities.

If you take on board the Chinese model, make little profit as long as you can sell a lot.

Thais will travel far and wide to a good Korean bbq, if you are selling 2 for 1 at 159b, there are still places round our way selling for 99b a head, so you make the extra in drinks and supplementary dishes and also the 'wasted' plate charge.

Thais also love a bargain without caring to read the menu, we are often horrified how much a bottle of water costs at a Korean BBQ, but it's never written down until the bill comes - still not extortionate but not 10-15b as it would be in a sit-down restaurant.

In time you will learn to find the cheap meat suppliers maybe butcher animals yourself.

Go for it!

  • Like 1
Posted

In a restaurant, your highest single cost is food. Rent, labor, equipment maintenance, utility, paper goods, etc. will in total exceed food costs, but as a lone item food is it.

In a sit down restaurant with table service food can't exceed 25% of gross receipts. ideally it should be less.

If you're food cost is 25% and you give one away free, you are toast. There's no profit left after you pay labor and rent and utilities etc. They were probably losing money with that promotional deal.

I can't remember which famous person said this (jokingly) but he said "we lose money on every sale but we make up for it in volume." smile.png

Most restaurants have a food cost more like 30-35%. Profit margin in the food business is pretty slim.

Op's is different. He has 3 months history to go on..................hahahaha!

Posted

If you're food cost is 25% and you give one away free, you are toast. There's no profit left after you pay labor and rent and utilities etc. They were probably losing money with that promotional deal.

Your assumption is that people were eating 100% pork and that the retail price of the two-for-one deal reflects normal margin. In reality like many businesses they will inflate costs somewhat to provide a cushion for promotions. And of course people were ordering a variety of dishes.

Even if the pork dish was losing money it was driving a lot of traffic into the restaurant. Given the owners seemed very happy with the situation prior to dropping the promotion it suggests the promotion wasn't killing the business when it was running.

Of course another possibility is knowing OP owns businesses they were pretending the situation was rosy with the idea that he might take it off their hands.

Posted

Some of the comments on this thread are way off the money.

Six dollars worth of pork needs a bill of $70 dollars at 11%?

$80,000 start up? Hopeful a typo.

PepperMe, I wish you well in your future venture, but, as has already been mentioned, you may need to hone your communication skills. You do seem to be a little abrupt with people.

(2 edits as my iPhone was doing strange things while typing this)

Posted

In a restaurant, your highest single cost is food. Rent, labor, equipment maintenance, utility, paper goods, etc. will in total exceed food costs, but as a lone item food is it.

In a sit down restaurant with table service food can't exceed 25% of gross receipts. ideally it should be less.

If you're food cost is 25% and you give one away free, you are toast. There's no profit left after you pay labor and rent and utilities etc. They were probably losing money with that promotional deal.

I can't remember which famous person said this (jokingly) but he said "we lose money on every sale but we make up for it in volume." smile.png

Most restaurants have a food cost more like 30-35%. Profit margin in the food business is pretty slim.

Fast food places do indeed. But a sit down restaurant with table service is a whole different animal. Obviously the prices are higher in a sit down restaurant but expenses are a lot higher too. The food cost due to quality is higher. It's a different type of food.

Not only do you have to pay for the service, but you have to provide the space.

A fast food restaurant could do 80% of its business at the drive-up if it has one, which is very cost effective. If it doesn't people go to the counter, order, and take out or take care of themselves.

I agree profits are very slim, so they need volume. They also need tight cost controls. They can't afford to have people standing around. They can't afford to waste food. They can't afford to be open during hours when it's slow.

These issues and others make the business very dicey and the failure rate very high.

Source: I used to be a banker and I analyzed P&L's and financial statements for making business loans. One of my borrowers owned 6 MacDonald's franchises and another owned 12 Burger King franchises. I had others including sit down restaurants and bars.

Posted

Back home many new restaurants go out of business after a short time. A well known chef was being interviewed on radio and he was asked why this was so....He said it was because..... "Abroad, people open restaurants to make a living....Here, people open restaurants to make a killing"

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