TLDR • Restaurant profitability depends on type, location, and sales volume. • Store A (steady, medium-busy fast casual): $120K/month in sales, ~$18K net profit after costs like 36% COGS, ~30-35% payroll, and other fixed expenses. • Store B (slower, lower sales): $71K/month in sales, ~$9K net profit due to higher percentage of costs relative to sales. • Store C (very busy, high-volume example): $250K/month in sales, ~$60K net profit due to economies of scale (lower COGS, payroll efficiencies). • Key expenses: rent (6-8% of sales), payroll, utilities, repairs, supplies, and taxes. • Sales volume is critical: Higher sales = better efficiency and margins. • Mom-and-pop operations: Owners working in-store can save on payroll and boost net income. • Coffee shops/boba shops: Hard to surpass $70K/month; lower sales due to smaller tickets and limited hours. • Taxes, loans, and shared profits (in partnerships) can reduce net income further. Bottom Line: The restaurant business thrives on volume, efficiency, and cost management. Successful operations depend on strong sales and tight control over expenses. great video
Thank you for your transparency. I have a greater respect for non-fast-food restaurants of your caliber, culinary experience, and mostly ingredient selections that make a huge taste difference.❤❤❤❤❤
Props to restaurant owners. I’m a small business owner and know the stress of making it month to month. I worked as a waiter for several years in high school and college. It’s hard work…restaurant owners are truly punk rock. You are on your own. No safety net. Slim margins. Thanks for sharing.
my dad ran Store D model family restaurant and bar. $10k rent $100k gross $30k payroll 80hrs a week self working hours. Of 25 years of ownership, it ran Store B model for first 10 year and then quickly became Store D, where he barely earned for living wage for 15 years. This is the typical restaurant example. Store A example is very successful, Store B is successful, Store C is a unicorn
I own an acconting and tax firm - and this is an awesome video. Thank you for being transparent. Numbers are right around what I see (sometimes a lot worse unfortunately). Tough business but rewarding for those that can make it work.
What about it isnt correct? Can you elaborate or you just talking out of your anus? @khaledramadan2508 You'd have to have inside knowledge about this specific restaurant to be in the know of his accounting being incorrect. Because just looking at the numbers here, the math is fully accounted for according to the data we are given by OP. So please do share your genius with us would you? I'd love to hear your reasoning behind that declaration of yours. 🤔🙄
Dude you honestly don't understand how thankfull I am for this. Showing real numbers help me understand the food business so much better. A video idea could be how margins can change depending on your restaurant. Like you briefly mentioned. Like why sit down restaurants have lower margins, the pros and cons of going for cheap food and high volume vs higher end food and lower volume. Having a bigger menu vs a small menu. Stuff like that I think would help future restaurant owners. Thanks a lot man
Very helpful video and love the spreadsheet. I’m 5 years into my accounting profession, worked 10 years in hospitality - managed a Boiling Crab. I still want to open a restaurant one day. Thanks
i dont even know how you popped up on my YT feed but im glad you did, i had no interest in learning about this but after watching your video its so interesting to me on how all of this works. I truly understand the whole motive of going hard for supporting mom & pops stores. im justa photographer/videographer and i see why mom&pops dont really have the budget to pay for advertising services
Great info, to all ppl think it's gonna be easy and jump in to rasturant bus.. Unless you guy want to put in 12hrs 6 to 7 days a wk... Dnt even try, put the money in index fund.. especially in cali w all the labor law.. Unless it's family run business, it's gonna be really hard to make decent living..
Good stuff man ita hard to get a real answer even from my close friends who own thier own restaurants, ive got a food truck out here in the bay area and this confirmed some of my thoughts from the restaurant side
One thing about asians is they KNOW business !! Most of all Asians own their own businesses! I work at a large corporation and i think ive seen maybe 3 asians that work there Their business mentality is top notch
Oh shit this popped up on my feed! I was looking at your insta and was wishing for more of this but its all here! That one reel of your entire journey so far has been beyond informative. Thank you.
Good video and very spot on. I help run a franchise of Chinese takeouts and our baseline of stores are like example A. Our model works a bit better as almost all our locations an equity partner or two work on a daily basis. Would love if you are willing to share more about your professional background as from my recollection you were an ex-IBanker.
15+ years ago a cookie shop closed at the local shopping mall food court. The rent for the space was $7,000 a month. As a young adult I was thinking how many cookies would have to be sold just to break even with monthly operating cost. Many sleepless nights during the early stages if the pandemic I bet. Respect for all the small business owners out there.
thank so much for the info. I am a /finedining/ bro and I got a question for you. one huge problem I see in michelin is the allocated amount of money for payroll. Food cost is so high (even some 3* places say around 50%) so they cut money on employee pay. however , this almost always comes back and bites them in the ass because no one wants to stay working in that environment where it is constantly reinforced that their labor is dispensable even when at minimum wage. "muh bro just do your job twice as fast and be payed the same to do it and we are cutting you at 8 hours so muh if you cant handle it bro your just a bad chef". How do you look at this? How would you choose to run a fine dining tasting menu restaurant?
i have no experience or knowledge about fine dining restaurants. but what i do know is that the people doing fine dining is more because of their pride and passion than it is about making money. so yea i can see how food quality is prioritized over employee pay
This should be part of childhood education, to teach kids appreciation of small businesses. This would hopefully reduce the likelihood of those kids supporting some wacky policies when they're older that smother small businesses and expand market share for companies like McDonald's.
As someone in a family that does real estate, this is pretty eye opening. I didn't realize how much you could make each month even with the IRS sticking their hands where the sun don't shine. It makes me want to see how far I can scale an online business as operating a restaurant would probably give me a heart attack. You have thousands of customers walking through the door every day, with an entire staff you have to keep on payroll. Seems like a lot of responsibility and I'm guessing you have to make some pretty tough calls as nothing that makes money comes easy. Even with real estate it's like you're dealing with someone's livelihood, but maybe because tenants are individual people I don't really think about it that much. Either way, thank you for sharing, I hope to see more videos on this topic and I hope to apply it to a business that I start.
depending on how labor intensive or what kind of management you have in place, running a restaurant can be easy or it can be hell. really comes down to how well you can manage your team
Thank you so much for explaining exactly what it takes to run a restaurant, no wonder 90% fail. I would rather invest in s&p500 and take the CAGR over 20 yrs anyday over this
What do you think about all-you-can-eat businesses in the Bay Area? Do they have profit margins of less than 10%? Everything is so expensive and I bet COGS is higher than other restaurants businesses
i haven't looked into ayce places but i'm sure their cogs % is much higher but their focus is volume and requires less employees than a full service restaurant
I've heard from other restaurant owners that their landlord would do 1 year lease agreement and when the lease was up the landlord will either kick them out or increase the rent. Have you experience this before? Do you think it is worth the money and time to market a mom and pop store?
@@samuelwang4585 never heard of 1 year. But 3-5 years are common. The tenant also don't want to get tied down for so many years, if it does really well the landlord would want them to stay and if they get really greedy and double the rent they will lose the tenant
What are your monthly sales in the dead winter months? I'm asking for the people who read this comment who think restaurant owners make bank all times of the year.
in CA where the weather is great year round, there is no dead months. where i am the busiest months are mar, nov and dec. summer months are typically slowest but not drastically.
Thanks for the informative video. I’m assuming this data is based off US stores. Could you share why you didnt include sales tax? At 10k a month, wldnt sales tax eat up most of the net income?
Why stay in the restaurant business versus others? Index funds/small landlord feels a bit easier? Do you think you think the money is better there? I work in tech and want a lifestyle business too once my wife and I have kids but I’ve find it hard to justify the transition from big tech salary versus SMB you can buy
@@kccccccccccccccc0904 depending on how big your savings or tech salary is, its hard to justify going into owning a small business for cash flow i agree. It would be more for someone that don't have those options or capital; or they really want to escape their 9-5. Returns on RE or stocks are considerably lower than business (5-10% annual vs. possible 30-50%) for a reason
So interesting seeing restaurant owners from across the world. Really want to learn more. How would you start/acquire a new store and what are your criteria for them?
I worked at McDonalds and Five Guys. McD labor % should be under 20%. It is strict and managers would cut so aggressive like it is their own business. At FG labor was
typically the valuation on a performing restaurant is 2-3x of annual net profit. So if a restaurant nets $120k/yr, the asking sales price should be around $240k-360k and you negotiate down from there. If the restaurant is fully absentee, meaning the owner doesn't need to go in at all and it runs with its manager/employees doing all the work, the valuation can be higher in the 3x range, if the owner is very involved (i.e. owner works the floor 6 days) the valuation should be in the 2x range or lower. One thing for sure is that the seller's stated profits are always higher than actual so the buyer needs to do their due diligence. The broker who represents the seller will also try to gaslight the buyer into believing everything good about the business and rush the buyer into making a decision.
@@POV_Husband Wow, thank you for this info. I'm very interested in buying something in that range and will take note of it in the future. Yes, understanding the actual revenue amounts seem to always be the biggest challenge. Do you ever connect interested parties?
Hi! Listened to your advice about apply in person. They’d like me to come in to understand their POS system. Any tips or advice for on-site interviews?
Interesting video and just have question. Are you paying yourself and are you included in any of the payrolls expenses? Or you leave money into the business, reinvesting or?
Love this! Great breakdown and reality check. Also shows how important contribution margin is. I sent you an email - would love to have you on our podcast, Inspired Or Acquired.
How much did you spend to get into the first store? i.e. startup costs - I'd assume this would be first month's rent, first month's payroll, and cost of equipment
we purchased an existing profitable restaurant. purchase price was $430,000, we down paid around $100,000 via sba loan including closing costs. working capital for 1st months rent deposit, utility deposit etc was another $20,000. since we had credit cards and vendors allowed net 30 day terms, and payroll is paid a week after, we didn't need much else working capital for other things
Here from ig. Good work dude! Very informative and helpful video. I've just finished building my first food business, its a stall/takout only. I had a soft opening sell ice cream for the last part of summer since I finished building it late and I'm moving into serving hot food for the winter (waffles and paninis). I'm curious about how much the marketing budget is for places like this as well? Do these places rely mainly on word of mouth and location?
That would be the dream right? To smooth out demand through opening hours. But what you can actually do more easily is to boost demand on busy days and hours. Social media + paid ads can bring in a lot of traffic.
Stress, ongoing liabilities. If you own restaurants you would understand. And we made money on the sale, it's not just that we gave up, we profited from the sale.
First, thank you so much for this transparent info. Question: how did you pay yourself? Was it like every month you took the net profit and transferred to your personal bank account? Or did you pay yourself in through payroll system? Also, random observation but one time I was at the chik fil a drive thru and there was a computer monitor I saw with their daily sales... It was about 7 pm at the time and their daily was about $80k. Crazy how these chain fast food places have so much volume.
you can pay yourself a salary, just like how your employees are paid (payroll taxes deducted etc) or you can take money from the bank account or cash, which later your accountant/cpa will mark it as a distribution
@@wanderinglife1142 All the stores are absentee model where owner is not working the floor. But the owner can still be busy with doing orders, getting change, doing the schedules etc
yea that's typically mom and pop volume. at that volume the owner needs to be working full-time in order to make ends meet. a husband wife both working all day at that sales volume can probably do good enough to send kids to college
many ways to increase sales, with all of them being a lot harder than it sounds. you can spend a lot of money to renovate the restaurant which is costly and if your management sucks the customers won't come back. you can spend money on advertising but that won't do you any good if your management and food sucks. the best way to increase sales in my opinion is for the owner to be there every day, talk to customers, improve customer service, make sure the place is clean, and that the food is going out right, and that you are providing value for all customers
@@POV_Husbandcool, my brother in law bought a sushi & hibachi restaurant from a family member two years. renovations took like 3 months before we reopened, the business has been on a decline since. i think he bumped up the prices too much, 2-4 dollars more for a lot of the food and now we are barely busy
@@eazyMF_E. typically in CA if you own a small restaurant, you want to do an S corp where you pay yourself a officer salary (as required for S Corp). I've seen it done with C corp and LLC and sole prop as well. I don't recommend LLC and sole prop because you have to pay payroll taxes on any pass thru income, whereas for S Corp or C Corp you only pay payroll taxes on the salary you pay yourself and not the whole income.
Hmm… well there is the road network to get customers and goods to the store, the health inspectors and scientists making sure your goods and water are not contaminated, public tourism marketing bringing in tourists/customers from out of town, having the fire department available, public education so you don’t have to train your workers how to read and tabulate bills…I could go on.
So maybe what you’re doing to small businesses owners would be helpful and become another stream of income for you for the restaurant/food truck business… you could charge a yearly rate . I know this is already of a thing but you have the knowledge why not ?
TLDR
• Restaurant profitability depends on type, location, and sales volume.
• Store A (steady, medium-busy fast casual): $120K/month in sales, ~$18K net profit after costs like 36% COGS, ~30-35% payroll, and other fixed expenses.
• Store B (slower, lower sales): $71K/month in sales, ~$9K net profit due to higher percentage of costs relative to sales.
• Store C (very busy, high-volume example): $250K/month in sales, ~$60K net profit due to economies of scale (lower COGS, payroll efficiencies).
• Key expenses: rent (6-8% of sales), payroll, utilities, repairs, supplies, and taxes.
• Sales volume is critical: Higher sales = better efficiency and margins.
• Mom-and-pop operations: Owners working in-store can save on payroll and boost net income.
• Coffee shops/boba shops: Hard to surpass $70K/month; lower sales due to smaller tickets and limited hours.
• Taxes, loans, and shared profits (in partnerships) can reduce net income further.
Bottom Line: The restaurant business thrives on volume, efficiency, and cost management. Successful operations depend on strong sales and tight control over expenses.
great video
Thank you for your transparency. I have a greater respect for non-fast-food restaurants of your caliber, culinary experience, and mostly ingredient selections that make a huge taste difference.❤❤❤❤❤
Thanks for chat gpting a summary of the video.
everything seems dependent on CFO skills - managing margins, scaling up sales
Props to restaurant owners. I’m a small business owner and know the stress of making it month to month. I worked as a waiter for several years in high school and college. It’s hard work…restaurant owners are truly punk rock. You are on your own. No safety net. Slim margins. Thanks for sharing.
Yeap. Good luck
my dad ran Store D model family restaurant and bar. $10k rent $100k gross $30k payroll 80hrs a week self working hours. Of 25 years of ownership, it ran Store B model for first 10 year and then quickly became Store D, where he barely earned for living wage for 15 years. This is the typical restaurant example. Store A example is very successful, Store B is successful, Store C is a unicorn
came from IG and now I am a lifetime fan of this dude, full transparency, straight to the point, I love you man no homo
@@nikkowhoa thanks, no homo indeed
I own an acconting and tax firm - and this is an awesome video. Thank you for being transparent. Numbers are right around what I see (sometimes a lot worse unfortunately). Tough business but rewarding for those that can make it work.
Hard to believe you own a firm because the accounting isn’t correct here.
What about it isnt correct? Can you elaborate or you just talking out of your anus? @khaledramadan2508
You'd have to have inside knowledge about this specific restaurant to be in the know of his accounting being incorrect. Because just looking at the numbers here, the math is fully accounted for according to the data we are given by OP.
So please do share your genius with us would you? I'd love to hear your reasoning behind that declaration of yours. 🤔🙄
@@khaledramadan2508 it is a new account, made for that comment
@@khaledramadan2508what’s wrong with it?
@@khaledramadan2508
>Come in
>Said it's incorrect
>Refuse to elaborate
>Leave
This is one of those rare videos, where it's engaging and I learn something. Thank you!
Dude you honestly don't understand how thankfull I am for this. Showing real numbers help me understand the food business so much better. A video idea could be how margins can change depending on your restaurant. Like you briefly mentioned. Like why sit down restaurants have lower margins, the pros and cons of going for cheap food and high volume vs higher end food and lower volume. Having a bigger menu vs a small menu. Stuff like that I think would help future restaurant owners. Thanks a lot man
Very helpful video and love the spreadsheet. I’m 5 years into my accounting profession, worked 10 years in hospitality - managed a Boiling Crab. I still want to open a restaurant one day. Thanks
i dont even know how you popped up on my YT feed but im glad you did, i had no interest in learning about this but after watching your video its so interesting to me on how all of this works. I truly understand the whole motive of going hard for supporting mom & pops stores. im justa photographer/videographer and i see why mom&pops dont really have the budget to pay for advertising services
Thank you for your services sir
Would love more of this type of videos. Eye opening and informative!!!
Great info, to all ppl think it's gonna be easy and jump in to rasturant bus.. Unless you guy want to put in 12hrs 6 to 7 days a wk... Dnt even try, put the money in index fund.. especially in cali w all the labor law.. Unless it's family run business, it's gonna be really hard to make decent living..
Thank you for sharing this information. I never knew anything you mentioned. Love the genuine videos.
Great video!! POV H is truly for the people not gatekeeping anything! Could you also break down all the taxes in another as well?? thank you so much!
Good stuff man ita hard to get a real answer even from my close friends who own thier own restaurants, ive got a food truck out here in the bay area and this confirmed some of my thoughts from the restaurant side
I like how he broke it down with the numbers. When you have the numbers you can make adjustments if needed.
One thing about asians is they KNOW business !!
Most of all Asians own their own businesses!
I work at a large corporation and i think ive seen maybe 3 asians that work there
Their business mentality is top notch
Oh shit this popped up on my feed! I was looking at your insta and was wishing for more of this but its all here! That one reel of your entire journey so far has been beyond informative. Thank you.
Good video and very spot on. I help run a franchise of Chinese takeouts and our baseline of stores are like example A. Our model works a bit better as almost all our locations an equity partner or two work on a daily basis. Would love if you are willing to share more about your professional background as from my recollection you were an ex-IBanker.
i was an ex commercial banker. but yea you're right the equity partner structure works well to expand because they take responsibility
@@POV_Husband good stuff love your story and looking forward to future content
When you study accounting and finance so this makes perfect sense woooo I love school
15+ years ago a cookie shop closed at the local shopping mall food court. The rent for the space was $7,000 a month.
As a young adult I was thinking how many cookies would have to be sold just to break even with monthly operating cost.
Many sleepless nights during the early stages if the pandemic I bet.
Respect for all the small business owners out there.
The most raw thumbnail I've seen in recent years hahahha, great video tho :)
Thanks for putting out this kind of educational content out there!
very realistic numbers.
worked corporate for a Store C chain. Cogs and Labor are def lower but a bit offset by corp admin G&A.
thank so much for the info. I am a /finedining/ bro and I got a question for you. one huge problem I see in michelin is the allocated amount of money for payroll. Food cost is so high (even some 3* places say around 50%) so they cut money on employee pay. however , this almost always comes back and bites them in the ass because no one wants to stay working in that environment where it is constantly reinforced that their labor is dispensable even when at minimum wage. "muh bro just do your job twice as fast and be payed the same to do it and we are cutting you at 8 hours so muh if you cant handle it bro your just a bad chef". How do you look at this? How would you choose to run a fine dining tasting menu restaurant?
i have no experience or knowledge about fine dining restaurants. but what i do know is that the people doing fine dining is more because of their pride and passion than it is about making money. so yea i can see how food quality is prioritized over employee pay
Thank you for educating and sharing the knowledge. Hoping to be a business owner in the future.
What a king. Thanks for the informative content
Thanks for sharing. Very informative, educational, and entertaining somehow.
Wow, such great value on how you explained things. Wish they taught this in school..
This should be part of childhood education, to teach kids appreciation of small businesses. This would hopefully reduce the likelihood of those kids supporting some wacky policies when they're older that smother small businesses and expand market share for companies like McDonald's.
Thank you. This is very helpful!
As someone in a family that does real estate, this is pretty eye opening. I didn't realize how much you could make each month even with the IRS sticking their hands where the sun don't shine.
It makes me want to see how far I can scale an online business as operating a restaurant would probably give me a heart attack. You have thousands of customers walking through the door every day, with an entire staff you have to keep on payroll. Seems like a lot of responsibility and I'm guessing you have to make some pretty tough calls as nothing that makes money comes easy.
Even with real estate it's like you're dealing with someone's livelihood, but maybe because tenants are individual people I don't really think about it that much. Either way, thank you for sharing, I hope to see more videos on this topic and I hope to apply it to a business that I start.
depending on how labor intensive or what kind of management you have in place, running a restaurant can be easy or it can be hell. really comes down to how well you can manage your team
Would love to see a video about how each of these stores drive that sales number. Like what would could store B do to get to store A in sales
Thank you so much for explaining exactly what it takes to run a restaurant, no wonder 90% fail. I would rather invest in s&p500 and take the CAGR over 20 yrs anyday over this
Thanks for the info, very valuable. What about the starting costs to get the business up and running?
bros got youtube to mp3 shortcut what a G
need to focus
Thanks for sharing with us bro!
What do you think about all-you-can-eat businesses in the Bay Area? Do they have profit margins of less than 10%? Everything is so expensive and I bet COGS is higher than other restaurants businesses
i haven't looked into ayce places but i'm sure their cogs % is much higher but their focus is volume and requires less employees than a full service restaurant
I've heard from other restaurant owners that their landlord would do 1 year lease agreement and when the lease was up the landlord will either kick them out or increase the rent. Have you experience this before? Do you think it is worth the money and time to market a mom and pop store?
@@samuelwang4585 never heard of 1 year. But 3-5 years are common. The tenant also don't want to get tied down for so many years, if it does really well the landlord would want them to stay and if they get really greedy and double the rent they will lose the tenant
@@samuelwang4585 it all depends on what you want to start. Anything can work at anytime and anywhere, really comes down to the operator
Why is the RUclips app now cutting off half the title to videos ffs
What are your monthly sales in the dead winter months? I'm asking for the people who read this comment who think restaurant owners make bank all times of the year.
in CA where the weather is great year round, there is no dead months. where i am the busiest months are mar, nov and dec. summer months are typically slowest but not drastically.
Thanks for the informative video. I’m assuming this data is based off US stores. Could you share why you didnt include sales tax? At 10k a month, wldnt sales tax eat up most of the net income?
Why stay in the restaurant business versus others? Index funds/small landlord feels a bit easier? Do you think you think the money is better there? I work in tech and want a lifestyle business too once my wife and I have kids but I’ve find it hard to justify the transition from big tech salary versus SMB you can buy
@@kccccccccccccccc0904 depending on how big your savings or tech salary is, its hard to justify going into owning a small business for cash flow i agree. It would be more for someone that don't have those options or capital; or they really want to escape their 9-5.
Returns on RE or stocks are considerably lower than business (5-10% annual vs. possible 30-50%) for a reason
So interesting seeing restaurant owners from across the world. Really want to learn more. How would you start/acquire a new store and what are your criteria for them?
Great video, thanks for the breakdown and your insights too!
loom would be a good option to check out for screen recording / face videos
I worked at McDonalds and Five Guys. McD labor % should be under 20%. It is strict and managers would cut so aggressive like it is their own business. At FG labor was
This is great. Thank you. I can now see why subway franchises are getting killed.
low volume with franchise fees eating the profits. the subway franchisees suffering while the franchisor takes home the cake
Always open a Chinese restaurant. Fact: There has never been a Chinese restaurant that closed. Try to think of one that closed. You can’t do it.
One I used to go in my area closed 😭😭.
As a landlord it’s interesting to see this prospective thank you for the transparency
Glad you found a reason to raise rent
Hi I love your cooking
Would you share the recipe for the dishes?
Thank you so much for this info what restaurants are you currently running?
Burgers, breakfast, teriyaki, breakfast lunch and dinner
thanks, super helpful. do you have any content on valuations? For potential buyers of existing casual dining in south bay area of LA.
typically the valuation on a performing restaurant is 2-3x of annual net profit. So if a restaurant nets $120k/yr, the asking sales price should be around $240k-360k and you negotiate down from there. If the restaurant is fully absentee, meaning the owner doesn't need to go in at all and it runs with its manager/employees doing all the work, the valuation can be higher in the 3x range, if the owner is very involved (i.e. owner works the floor 6 days) the valuation should be in the 2x range or lower. One thing for sure is that the seller's stated profits are always higher than actual so the buyer needs to do their due diligence. The broker who represents the seller will also try to gaslight the buyer into believing everything good about the business and rush the buyer into making a decision.
@@POV_Husband Wow, thank you for this info. I'm very interested in buying something in that range and will take note of it in the future. Yes, understanding the actual revenue amounts seem to always be the biggest challenge. Do you ever connect interested parties?
Hi! Listened to your advice about apply in person. They’d like me to come in to understand their POS system. Any tips or advice for on-site interviews?
i guess it depends on where you are applying but being honest and transparent is always a good sell
Interesting video and just have question. Are you paying yourself and are you included in any of the payrolls expenses? Or you leave money into the business, reinvesting or?
@@stroob3734 my salary is not included. I can either take a salary, or just take money from the account as a distribution, or leave the money in there
Love this! Great breakdown and reality check. Also shows how important contribution margin is. I sent you an email - would love to have you on our podcast, Inspired Or Acquired.
How much did you spend to get into the first store? i.e. startup costs - I'd assume this would be first month's rent, first month's payroll, and cost of equipment
we purchased an existing profitable restaurant. purchase price was $430,000, we down paid around $100,000 via sba loan including closing costs. working capital for 1st months rent deposit, utility deposit etc was another $20,000. since we had credit cards and vendors allowed net 30 day terms, and payroll is paid a week after, we didn't need much else working capital for other things
Next Venture.... Marijuana Friendly Smoking- bar Lounge.. that serves all types of junk foods😊, No alcohol ..Have a open mic night Fri-Sat..
Baby: "That's going to taste so good later tonight during feeding time."
Moral of this video: f*** the IRS
Solo 401k or even a defined benefit pension at Schwab can dramatically reduce the taxes.
Thank you for sharing.
Here from ig. Good work dude! Very informative and helpful video.
I've just finished building my first food business, its a stall/takout only. I had a soft opening sell ice cream for the last part of summer since I finished building it late and I'm moving into serving hot food for the winter (waffles and paninis).
I'm curious about how much the marketing budget is for places like this as well? Do these places rely mainly on word of mouth and location?
great, thanks for the insight
Hey man what was your entry point to restaurant business?
Subscribed. From Malaysia.
How do you market to get traction in the restaurant on slow days?
That would be the dream right? To smooth out demand through opening hours.
But what you can actually do more easily is to boost demand on busy days and hours.
Social media + paid ads can bring in a lot of traffic.
Why did you sell the store if you make good money ?
Stress, ongoing liabilities. If you own restaurants you would understand. And we made money on the sale, it's not just that we gave up, we profited from the sale.
What are COGS ? I need to know please
Cost of Goods Sold. Food, drink etc
It's the cost of the food the restaurant pays. It is used to make the meals and drinks that are served.
love this - but can you screenshare next time? Getting dizzy lol
😂
Was your store 2 restaurant located in a low income area? Also, how did sales do from 2023 to 2024 because inflation is hurting low income?
Watching host
First, thank you so much for this transparent info. Question: how did you pay yourself? Was it like every month you took the net profit and transferred to your personal bank account? Or did you pay yourself in through payroll system?
Also, random observation but one time I was at the chik fil a drive thru and there was a computer monitor I saw with their daily sales... It was about 7 pm at the time and their daily was about $80k. Crazy how these chain fast food places have so much volume.
you can pay yourself a salary, just like how your employees are paid (payroll taxes deducted etc) or you can take money from the bank account or cash, which later your accountant/cpa will mark it as a distribution
Store B, you make $9000 a month, but how many hrs the owner works and days?, if the owner work 7 days a week, 10hr a day. $9000 is not worth it.
@@wanderinglife1142 All the stores are absentee model where owner is not working the floor. But the owner can still be busy with doing orders, getting change, doing the schedules etc
I wouldn’t eat it, without it being baked. But, I believe that it is healthy. 🙏🏽
Is that spreadsheet available anywhere?
I was at my cousin’s restaurant and I remember them earning like 2k in one day
yea that's typically mom and pop volume. at that volume the owner needs to be working full-time in order to make ends meet. a husband wife both working all day at that sales volume can probably do good enough to send kids to college
Damn all that. You need to have multiple locations
I am turkish chef.. ı am planing to open mediterrean rest in florida..: thanks for this geeat video…
chick fil a busy ?
Could you please make a video about how you got sba loan…?
How much did you pay the manager? Just an estimate please
howd you increase sales? good vid 👍
many ways to increase sales, with all of them being a lot harder than it sounds. you can spend a lot of money to renovate the restaurant which is costly and if your management sucks the customers won't come back. you can spend money on advertising but that won't do you any good if your management and food sucks. the best way to increase sales in my opinion is for the owner to be there every day, talk to customers, improve customer service, make sure the place is clean, and that the food is going out right, and that you are providing value for all customers
@@POV_Husbandcool, my brother in law bought a sushi & hibachi restaurant from a family member two years. renovations took like 3 months before we reopened, the business has been on a decline since. i think he bumped up the prices too much, 2-4 dollars more for a lot of the food and now we are barely busy
Time to lower the price
But how much was the biz Acquistions cost
Is your salary included in the payroll cost?
No, the net profit is what the owner makes
Are you a LLC or S corp?
Love your content. Your on point with your PNL.
@@eazyMF_E. typically in CA if you own a small restaurant, you want to do an S corp where you pay yourself a officer salary (as required for S Corp). I've seen it done with C corp and LLC and sole prop as well. I don't recommend LLC and sole prop because you have to pay payroll taxes on any pass thru income, whereas for S Corp or C Corp you only pay payroll taxes on the salary you pay yourself and not the whole income.
@@POV_Husband Ok. I’ll open up a C corporation. Does your manager get paid good? More than $20 or less? Very helpful content. This is real as it gets.
Take off that $10,000 sales tax and profit was $7,000 out of $120,000, so 5% true profit
Great videos, thanks for sharing!
The IRS is the real owner and gets most of the profit without doing NOTHING.
what do you mean without doing nothing, they help fund wars in europe and middle east
Hmm… well there is the road network to get customers and goods to the store, the health inspectors and scientists making sure your goods and water are not contaminated, public tourism marketing bringing in tourists/customers from out of town, having the fire department available, public education so you don’t have to train your workers how to read and tabulate bills…I could go on.
@@POV_HusbandHoly based. 🎉
IRS is probably not seeing the true numbers.
No investment in marketing?
Not buying ads anywhere online or offline?
How did you keep customers coming?
So maybe what you’re doing to small businesses owners would be helpful and become another stream of income for you for the restaurant/food truck business… you could charge a yearly rate . I know this is already of a thing but you have the knowledge why not ?
i don't really want to be held liable or having to keep create a certain content. not my style
Store C would be Howling Rays
Not even close
What grill is that ?
Whats a steakhouse to a steak mansion...
what is COGS?
Cost of Goods Sold
@emilyl1094 thanks
Holy crap, labor expense is as much as your COGS. Dayummmmm
When your husband is a professional chef and knows the food in most restaurants isn't worth the cost!
nice video ❤️🙏
No marketing expenses? Delivery costs?
Could be true, I run my business with free marketing. But of course it’s a slow paced business and I’m okay with that.
that search bar of " best way to cook at..." is in the middle of screen and annoying
lol damn bro, having your financials on excel
We're cheap af
Love it
Which restaurants did you own? Do you own any now?