Wow, this is like a how to guide on how to not run a business.
Raise a bunch of cash, go into a location that has so much wrong with it, blow literally all the cash plus $1k just setting up furniture and permits...
Why wouldn't you find a restaurant that just went under and buy out the lease? Take over the kitchen in place (buying the equipment from the bankrupt owner who just wants out), do a revamp on the sitting area, and spend pennies on the dollar compared to this? Added advantage that all the zoning and permits are already complete?
Despite what you've probably heard, restaurants actually fail far less than other types of start up businesses. In a booming economy there will be very few built out restaurants available to buy, and they'll probably have some sort of fatal flaw. Plus, you get TI money if you take over an empty space, and as you can build out how you want, the rewards are potentially better too.
Restaurants may fail less often than other startups, but the potential upside is microscopic compared to other startup type businesses. Restaurants are the opposite of scalable: costs scale basically linearly with revenue, but worse complexity of managing the business scales not linearly, but still very poorly with revenue.
Raise a bunch of cash, go into a location that has so much wrong with it, blow literally all the cash plus $1k just setting up furniture and permits...
Why wouldn't you find a restaurant that just went under and buy out the lease? Take over the kitchen in place (buying the equipment from the bankrupt owner who just wants out), do a revamp on the sitting area, and spend pennies on the dollar compared to this? Added advantage that all the zoning and permits are already complete?
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