Our first restaurant build out - before and after!

[Dave Hurt]

Hello All, 

The commercial RE forum seemed like the best place to post this.

I just wanted to share before and after pics of our first bar/restaurant build out!  This is our first project and we have certainly learned a lot!  We went from a gutted space that was basically an old industrial building and we built out a full kitchen with walk in cooler/freezer, 70-tap draft beer system (not yet installed in the after pic), full bar, and 80 seats inside with an additional 35 seats on a 600 sqft covered patio.  This is the first of 12 units that we will be building, and after many delays and unexpected problems we are FINALLY going to be opening our doors.  I have certainly learned that things never go as planned, and you have to be able to adapt very quickly in this business!  Enjoy!

[Joel Owens]

Decades of experience in all facets of the restaurant industry before getting into real estate.

It is a very hard business.

Right now you have the "New Factor" as a restaurant. Do not get overly excited by lot's of business to check you out. That Is nothing that isn't normal.

I see owners hands on in the beginning and things are going well. Then owner get comfortable and believe things will hum along with the status quo. Biggest thing I see is they get cheap in the kitchen and use great products but have so-so cooks preparing the meals.

I want to repeat as it is that important. Many concepts have test kitchen facilities where they test product with quality ingredients and believe it tastes amazing. When sales fall flat at  a store location they can't figure it out. It comes down to execution of the product. You could have meat at 20 a pound costs but if prepared wrong it can taste like crap. Conversely if you have only decent ingredients but a great chef the dish can be made to taste great.

It is as much about skill as the products used. I eat out a lot for business and pleasure. I would rather wait 20 minutes longer and have poor service and excellent food then get good service with fast food that tastes poor to okay.

Consistency of excellent food will be a major key to your success of the restaurant. Your biggest killers to your bottom line will be keeping rents in place and increases over the years if you do not own the space, labor cost policies with people asking for 15 an hour, and having FFC's ( fixed food contracts where you have set food costs even in a rising market ). FFC's are huge for small operators because it is the big boy's advantage in that if food costs soar you can't pass along all of that to the consumers so it starts eating into your bottom line.

Another factor is long term planning. Right now the asset is new and fresh. Over the years it will get older and older. Classic mistake is the owner will hoard cash and live fat for years and make good bank. They will not allocate 80k per year over 10 years for a re-image.