New Business Owner Advice

[Anonymous No.15979883]

I'm considering buying a coffee shop in a busy area with good foot traffic and turn over. Its a franchise but has a manger and staff and the ad says the owner works part time. I don't want to be making coffees and serving customers so what should I expect going into this?

I know i have to pay franchise fees, but I'm worried about extending the lease as the current agreement expires in a about a year. Is this normally a problem? Any advice would be appreciated

[Anonymous No.15980023]

Bump

[Anonymous No.15980042]

>Retarded question
You should buy a shotgun, one shell, load the shotgun, suck on it and pull the trigger, far better investment

[Anonymous No.15980862]

>>15979883
>I don't want to be making coffees and serving customers so what should I expect going into this?
You should expect to start making coffees and serving customers. Your childish fantasy that you will be able to own a profitable coffeeshop where you can earn passive income is a joke.
Here it is as simple as I can put it: If it really is making money they will steal it all from you....odds are its not making money and they will just slack off and give free coffees to their friends and chat on their phones. Welcome to ownership 101.

[Anonymous No.15980981]

>>15979883
>I don't want to be making coffees and serving customers so what should I expect going into this?
You sound like the most bitchmade business owner of all time. If you aren't even entertaining the idea of putting work in yourself you won't make it

[Anonymous No.15981121]

>>15980862
>>15980981
There's already a manager in place plus many part-time wagies. I have no problems dealing with behind the scenes stuff, hiring firing wagies, finances, payroll, and all that.

[Anonymous No.15981129]

>>15981121
Do it, if they don’t steal your money, someone else will soon enough

[Anonymous No.15981150]

>>15981129
If the profit margins are reduced I will obviously investigate and press charges if I have to. Sometimes even mentioning remote surveillance plus infrequent visits puts the scare into them

[Anonymous No.15981231]

>>15979883
You’re going to be making razor thin profit margins after paying the manager and the staff and rent and franchise fees, and then you’ll realize if traffic drops you could be in massive debt in like 2 seconds so you’ll fire the manager and a lot of the staff and do a lot of the work yourself and work 70-80 hours a week perpetually.

T. Restaurant owner

[Anonymous No.15981277]

>>15981231
Based on the advertisement it seems to do quite well and is in a busy location. Normies love coffee too. I'd have to check the books before deciding but it seems the previous owner ran it like that no problems. I don't mind getting my hands dirty but I was hoping being an owner meant less wagery

[Anonymous No.15981314]

>>15981231
Fees are only 5% of take and the part time wagies only make bare minimum. The manager does well and would work hard to keep the position. Rent is a killer but that's only because of the location. Again I'd have to check the books.

[Anonymous No.15981324]

>>15980862
>they will just slack off and give free coffees to their friends and chat on their phones. Welcome to ownership 101.

This is truth right here. Works the same for bars. Its an endless problem.

[Anonymous No.15981343]

>>15979883
If the agreement expires in one year, you have to talk with owner of the place and agree for extention BEFORE you acually buy the place.

Also, if coffee shop is part of bigger mall or such, talk with people in charge there about the place.

Don't buy the company. Just buy the lease for the place and agreement for franchise. Buying a company as a whole, could lead you into alot of trouble as you dont have that good knowledge of what previous owners did or didnt. There could be hidden debt and such.

Coffee shops are money sink. You have to understand that people drink coffee because its cool, not because its something they need. And if they need it, they would make it themselfs or buy it from a store alot cheeper.

People go to coffee shops to get social value. Think of cool coffee cups starbucks give out that everybody can "wear" around the town and show off.

Your franchise will fail if franchise owners havent figured this one out. Problem with doing a frenchise is that you have no control over what happens. You just hope that they will be smart enough and tell you what to do.

Also, buying a coffee shop, thats makeing profit, is stupid. Its way too expensive and downside if something changes is huge.

My advice, rent location yourself, invest the money you would have used to buy the coffee shop into furniture and equiptment (go cheap until you make profits and then upgrade stuff).

This way you contain the full control over how the coffee shops preforms. With frenchise, you are on the mercy of the frenchise ownners.

If its starbucks, buy it. Else dont.

[Anonymous No.15981344]

>>15981277
So the owner wage cucks in it part time and wants to sell it... why?

I COULD technically run my restaurant without wage cucking in it, it was just pissing me off how much my bank balance goes down after paying employees. I can’t find myself anyone that can work as hard and efficiently as me so I can eliminate like 2-3 jobs myself. I can soak all the dishes in water over the day and do them all myself really fast at night. I alternate between serving the food and helping on the line and bussing and cleaning. Now I got my labor cost down to 10% and my bank balance is going up by 10k a week. Once I got a good $100k or something maybe I’ll take a step back and let other wage cucks run it.

[Anonymous No.15981352]

>>15981231
*high five* fellow restaurant owner :)

[Anonymous No.15981400]

>>15981324
Any bs social shit and freebies will have to be punished. Yeah sure it happens but hopefully I can give them enough inventive not to. Also based on experience I'd only hire wagies smart enough to do the job and follow the rules not people smart enough to think around them but that is what the manager is there to do
>>15981343
Yeah all I want is the lease and franchise agreement. I dont want the business but I think it would be just in the previous owner's name. I'd want a few years secured to feel comfortable and if after the first year it's not for me I'll just sell it
> Social value
Yes it is one of those places. I usually don't frequent them so I hope this will help me remain a bit more objective.
>>15981344
Oh yeah they gave figures for doing it as a two person couple running and owning it and its much better but desu the profit was still good enough for me and much better than I'm making now

[Anonymous No.15981454]

>>15979883
try to contact the current franchise owner and ask them questions about it

[Anonymous No.15981485]

>>15981454
Im thinking of just hanging out there to see how it runs

[Anonymous No.15981505]

>>15981343
Starbucks died here a few years ago. Also most people use eft bank cards for transactions so I am not too worried about theft in that way but yeah freebies are still a huge concern

[Anonymous No.15981511]

>>15981344
I have no idea but they did say family issues and they want to move somewhere warmer

[Anonymous No.15981627]

>>15981511
Then ask yourself this, if it’s so easy to run without you being there and so profitable. Why wouldn’t the current owners do the same? If it’s too good to be true, it usually is especially in the f&b industry. I have three restaurants and a central kitchen that I wholly built up myself.

[Anonymous No.15981714]

>>15981627
I don't expect to do nothing but I would like to delegate things so I'm focused less on the day to day stuff.
Another advertised itself as profitable bit fully staffed which does seem like a pipe dream. This place seems much more realistic. I'd have to investigate l regardless

How much time do you spend at each place on average? If you were going to sell one of them would you average out the earnings or use the highest one from the busiest period and treat it as the highest?

[Anonymous No.15981741]

>>15981627
This, why sell when you can just bump the managers pay up a bit or hire more wagies? Surely the profit is enough to bring 1-2 extra onboard and still make profit.

[Anonymous No.15981766]

Thanks for the thoughts anons I'ma hit the hay hopefully hear from the broker and do some investigation on my own in the meantime

[Anonymous No.15981792]

>>15980862
Is that what life in america is? A continous replecment of the founders of that great country and slacking off?

[Anonymous No.15981883]

>>15981714
>I would like to delegate things so I'm focused less on the day to day stuff
...anyone you could delegate such decisions to will not give a fuck and will choose whatever option is easiest for them (ie. the worst option for your bottom line).
The idea that you've stumbled upon a low end restaurant that is capable of returning steady income as a mostly passive investment is so fucking funny its sad. Have you ever even worked in a restaurant before? Have you ever noticed why bar owner/restaraunt/coffee owners are all such micromanging dickheads to their staff? Not because this was their lifes goals, rather because unless they watch every single fucking move (how many napkins you can give a customer), the wheels will totally fall off and cost will skyrocket.
Do yourself a favor, instead of buying the place....offer to work there, its the best return you will get from it.

[Anonymous No.15981909]

any anons have tips for running a pizzeria?

[Anonymous No.15982603]

And when the market crashes or the government shuts down again the first thing to go will be the $4 cup of coffee.

[Anonymous No.15982688]

>>15979883
#1 don't franchise. Why "own your own business" if you have to answer to someone else?
#2 you will have to sweat in your business. You will work 70 hour weeks or you will fail.
#3 once you have a foothold you can hire a manager to do it for you but if you hire the wrong person they will put you out of business with the quickness.
#4 don't just let it go like an investment. You will have to actively and physically protect your investment. That means still coming in at least twice a week for a meeting with the manager and with your employees.
#5 if something doesn't feel right, it isn't m you start noticing money or product Missing, you get to the bottom of it and pull it up by its roots. Sometimes this means losing every member of your staff and going back to 70 hour weeks.
#6 don't own your own business, own chain link

[Anonymous No.15982730]

>>15979883
if it won't sink you, just do it anon.
Make sure everything is on the up and up, they arent suspicious or cagey about any important details- just go for it and if you dont lik it just fucking sell it again. A well marketed business is its own return to flip.

Your goals in this order should be:
Job
Car
House+land+base need commodities
Businesses+divs
Indexing
Stocks+commodities

If you are already comfortably there, just fucking buy it if its a good price. Make a few coffees every month or so just to humanize yourself to the employees and then cut out.

[Anonymous No.15982745]

>>15981150
Get fucked schlomo I give away free drinks all the time

[Anonymous No.15982886]

>>15982688
You know your goods biz bro, but don’t waste your breath...they will never understand or want to understand the amount of work it takes to run a business

[Anonymous No.15982923]

>>15981627
How long did it take you to go from opening your first restaurant to having 3 and the central kitchen?

[Anonymous No.15982934]

>>15981883
This. Fucking trust fund baby probably thinks the whole world operates how his life has up to this point. Owning a restaurant is backbreaking work if you want to succeed. I worked my ass off with my friend on a small-time tea and coffee place and still closed within a year. At least we’re not in debt because based Armenians footing the bill for the location.

[Anonymous No.15983005]

>>15981909
Make good pizza and wait 20 years.

[Anonymous No.15983149]

Don't buy a coffee shop. That's retarded. You'd be better off buying rental properties and having a property manager running them. I run a couple businesses but you seem too retarded to know this is a bad idea so I'm not going to give you much more advice bc i think your mind is made up