Hey, guys.
Welcome back for another week of episode.
This week, we're going to be talking about how to set up your restaurant business for
success, and what I mean by that is we're going to dive in deep the four types of business
models that's going to be making you tons of money that would fit into your specific
lifestyle, whether you want to build an ice cream shop, or bubble tea, or banh mi, or
burger joint, or you just have an amazing recipe that you want to bring to the world,
you need to be able to pay attention into this lesson because all these different food
concepts have its pros, its cons, and also, the amount of money that it's going to be
able... you're going to be able to make from them, which is the reason why we are shooting
this video to set you up for success.
We're going to be talking about the different types of risk tolerance, the investment level,
and also, the amount of work that needs to be done.
For me, when I first started out my ice cream business, I never even thought the amount
of work and money that needed to be put in in order for me to reap what I was able to
reap, which is the reason why this video is going to help you out, so make sure you guys
stay until then.
Download the resources and the links below.
Let's dive right in.
The first type of food concept that we're going to be talking about is the fast concept
type.
We're talking about something like an ice cream shop, a dessert shop, or something that's
more of a specialty, a coffee shop.
These are the fast concept types, which has an average order value of roughly 6 bucks.
We're talking about $5 to $7, so we take an average of $6.
A typical space, we're looking around 300 to 500 square foot place.
Not too big, but just enough for you to be able to operate.
You need to situate these locations at high-traffic places because of the volume that you need
in order for you to be able to generate the profit that you're looking for, and the amount
of servers and talent that you need at the space is quite limited as well, so you need
little to no server, maybe one or two baristas, and that's about it.
Now, in terms of projection of how much you're going to be able to make at a location like
this, given the fact of a $6 average for an item, you're looking at around and aiming
at 300 different orders per day.
That itself would net you around $50,000 per month, and that itself is an amazing business
if you're looking for something as less in stress, less in investment, and less in workload.
For example, our ice cream shops, 720 Sweets, is a fast concept restaurant.
We serve ice cream, we serve bubble tea, and these are really high-generating items that
we have, and it's...
For us, it only took us three months in order for us to be able to open up the shop.
All the equipment that we have was the ice cream machine.
We have under-the-counter cooler, and that's about it, so for us, the investment to open
up this place was only a hundred grand.
In turn, actually, I talk about in this video, how we made more than $36,000 in our first
month, and this itself is an amazing location for someone that's once... something simple,
something simple.
For us, we only have around five employees per location, and that's on a rotating basis,
and on really, really busy days, we have three people, but aside from that, to manage that
shop is completely hands-off from me, which is the reason why I love this model because
it's profitable when you can make it profitable, when you look at all the different numbers,
and when you can actually control them and know what to do with them.
Now, we're going to be diving into the pros of running a fast concept shop.
We're talking about a low-investment item, so at the end of day, because you have a such
a small place, the amount of equipment that you need to purchase is completely like barebone
minimums.
Okay?
You're not looking at a [heated 00:03:41] fan, you're not looking at a deep fryer, a
full on scale kitchen, whatsoever.
The investment is relatively lower.
The set up is a lot easier as well, so that means that city permits and everything is
going to be a lot easier for you to get, and also, the amount of labor you need is substantially
lower than a full-service place, which is why this type of concepts are so, so, so popular
because of the fact that it's so hard to be able to find talent out there.
These are the pros.
Now, the cons of running a business like that is that it has limited amount of offering
that you have for your customers, and in turn, the revenue that you're able to generate is
substantially lower than if you were able to offer food and different items as well,
so these are the pros and cons of running a fast concept place.
the second type of food concept that you're going to be looking at is the fast-food type,
and I'm talking about something like a doner, something like a burger, something like a
banh mi.
These are food items that are quick grab-and-go, so average prices we're looking at is around
8 to 15 bucks, so we're going to put it at $11, our average pricing for projections.
For a place like this, we're looking at around 500 to 900 square feet.
You don't need that big of a space, so we actually don't need front of the house staffing
as well because for a small place like that, people are used to grab-and-go.
They're not expecting full service, which is very, very beneficial for you because it
keeps the cost much lower.
For a projection like this, we're looking at, once again, $11 average pricing.
That nets around $2,750 at 250 servings per day.
Okay?
In a month, you're going to be able to generate around $77,000 for a concept like this.
Not too shabby.
Once again, this is a little bit better than the fast concept places.
Now, some of the pros of a fast concept place is that the investment is also relatively
lower than comparing to a full-service diner, whatsoever because of the fact that the equipment
you need is, once again, a little bit less.
The skill level to produce these items is, once again, a lot lower than a full-service
diner.
Also, the labor issue is a lot less, and on top of that, the revenue that it can actually
potentially bring in is a little bit higher than a fast concept place.
Now, the cons of running a fast-food joint is the fact that the equipment is a little
bit higher in costing, the investment is a little bit higher, and on top of that, you're
going to be able to cap your revenue based upon the offering that you're offering.
At 11 bucks, you can't really offer too much at this different location, right?
For example, if you look at a doner shop, they can only offer so much.
People only going grab-ang-go for lunch.
They go in for a quick dinner.
That itself is limiting the different revenue streams that they can generate.
The third type of restaurant that you can build is the casual dining.
For casual dining, you do need front of the house staffing.
You do need a little bit more service, so an average pricing, we're looking at around
$16, so there's going to be drinks involved.
There's going to be desserts involved.
That's the type of places that people actually go in, and it's like a hole-in-the-wall shop
that you're looking at, grandma's a recipe, maybe spaghetti that you're creating, so these
are examples of the casual dining experience.
For a place like this, you're looking at roughly around a thousand square feet that gives people
enough place to actually soak in the ambiance of the place and actually enjoy the food that
you're offering.
The location of a casual dining.
It could be at a high-traffic location or it could be a destination mainly because people
don't mind driving to a specific place just so then they can have like the best spaghetti
in town.
At the end of the day, you can actually choose a location that's a little bit further from
high-traffic.
Now, for projection in terms of how much money can you make in a casual dining, we're looking
at roughly 3,200 bucks per month, given an average value of $16 per meal, and on a monthly
basis, you're looking at roughly $90,000, so this is your million dollar business if
you're looking to create a business, a food and beverage establishment that's going to
cross the seven-figure mark.
A casual dining experience would be able to help you get there.
Now, some of the pros of running casual dining.
First of all, it is super, super fulfilling because now you can actually create your grandma's
recipe and you can actually bring it to the world and for everyone to enjoy this recipe,
and it gives you a lot more creativity for people to consume your offering.
Also, the pros is that the revenue that you're able to generate is much more.
This is your seven-figure business, and that's amazing.
However, the cons of running a casual dining experience is the fact that the investment,
once again, it's going to be much higher than a fast-concept, fast-food.
The equipment needed... that you need to run a place like that is much more.
The city permits, you need as well.
The labor level that you need to operate a joint like that is going to be higher because
when you make a recipe, a dish, there's much more variables that can go wrong, and you
need to buy much more... cost of goods sold ingredients, and you need to make sure you
manage them properly.
If you don't manage them properly, even though you're making a million dollars, you could
still be making way less than someone that's running a fast-concept shop.
That's because you don't control your costs of goods sold properly.
Once again, these are the pros and cons.
I really hope you can make yourself a million dollars with this casual dining experience.
Last but not least, the number four type is a full-service dining experience.
We're talking about this as like full-on front of the house staffing.
You have food service.
You have wine.
You have dessert.
Everything.
People are coming to greet you by your first name.
Average item cost is around 50 bucks.
For a location like this, you need it to be a bigger place.
We're talking about 1,500 square foot to 3,000 square foot.
Now, the average daily cost, we're looking around $50 because once again, there's wine,
there's a full meal, appetizer, dessert, everything.
Okay?
Now, for an average daily sales, we're looking around $6,500, and every month, you're looking
at $180,000 in terms of revenue, so this is going to be like much, much bigger in terms
of revenue-wise.
However, it requires a lot more intricate systems that needs to be put in place, and
I'm going to be going into the pros and cons of this for you.
Although the revenue is there, just keep in mind of one thing.
This may not be something that you are signing up for.
Just because the revenue is there, it does not mean the stress level is worth it, it
does not mean the risk level is worth, it does not mean the work level is worth it,
which is the reason why I always, always stay away from concepts like this.
But nonetheless, I feel like I should cover it in this video for you, so here you go,
the pros and cons of running a fine dining experience.
One of, of course, the pros of running fine dining experience is that you have your creation
out there for the world to experience.
You're basically creating art for your customers, and that fulfillment is definitely irreplaceable.
Okay?
Now, also, if you can actually manage your restaurant properly, this fine dining experience
properly, and you have line up out the door all the time, the revenue, the finance reward
that is going to give you, it's much, much higher.
We were talking about over millions of dollars in terms of revenues.
Now, on the flip side, the cons.
The investment to create a fine dining experience is well over a million dollars, and I can
guarantee you that because we're talking about a full-on ambiance, a full-on makeover of
a unit.
We're talking about alcohol license.
We're talking about full-on kitchen, what's basically our grease champ.
All the things that you may need to run a fine dining experience.
On top of that, the labor that is involved to run a fine dining experience is just out
of the world.
We're talking about like you need to give them way proper training.
They need to make sure that they greet their guests accordingly.
The expectation is much, much higher for people that are serving, and also, the food that
needs to come out, so it's...
A lot of people have trouble finding talent to create good food for them, and on top of
that, controlling your food costs to make sure that you have a business that is profitable,
that's not making millions of dollars in revenue, but not making your millions in profits.
There you go.
The food money making models for your food and beverage shop.
I can't thank you enough for watching this video at this moment.
However, there's three more things you want to consider when choosing the vehicle of your
choice to bring you to your destination.
At the end of the day, just because someone else is running a bubble tea joint that is
super successful, it doesn't mean it's suitable for you.
If you have dreams of bringing your grandma's recipe and showing it to the world, then that's
not the place for you.
That's not the model you want to choose.
You want to choose a casual dining experience that you can provide your customers.
That's the type of model.
Now, I'm going to be covering the three different elements to consider when choosing the different
models that you would be best suitable for your needs.
Okay?
The number one thing that you want to consider is the stress level.
Are you signing up for being super stressed out every single day for years to come, or
do you want to just have a coffee shop that you would want to go to?
You don't mind it not making that much money to begin with, and you have time to spend
with it, and you meet all the customers there, and you just have this really homey place?
It's really coming down to your stress level that you want to take on.
For some people, they like that chaotic environment.
They like being in that stressful environment because that's how they thrive.
With different types of business models, they have different types of stress levels, so
know what you're signing up for before you choose that type of vehicle.
The second element to consider is the risk level.
We're talking about if you're wanting to open a fine dining experience full-on with alcohol
license, you're talking about over millions of dollars in investment.
Are you up for that type of risk?
Are you going to put your house on refinance just so then that way, you can create this
fine dining experience with no experience, or do you have a thousand... a hundred thousand
dollars saved, and you just want something that is your own?
You want to escape your nine-to-five and you just want to have a coffee shop that you feel
good about and that you can actually just be there, and you're completely fine with
it.
Well, the risk level of a hundred-thousand-dollar investment and a million-dollar investment,
that's completely different, so at the end of the day, consider the risk level for your
needs because everyone's needs are different.
The third type of element to consider is the work level.
At the end of the day, with you in the food and beverage industry, work level is always
going to be like crazy.
For those first six months, you're going to be working in the business all day long until
you have a process in place, until you figured out how to hire people that can help you out.
So after the fact that you are working there for six months, everything is already on automation.
Do you want to continue to be working in there, your business?
Do you want to be in the kitchen cooking up your grandma's recipe and showing the world
how great it is?
That's a casual dining experience, or do you want to just... might just like, "Hey, I want
this as an investment.
I have a bubble tea shop.
i hired people to build, run it from me on automation, and I'm just going to go there
once a week just to check it up."
That, for me, is the work level that I chose, which is the reason why I chose a fast concept
because it's very easy for me to be able to monitor the type of work and the type of quality
that people are churning out, and at the end of the day, it really comes back down to your
work level that you're choosing to meet your needs.
So there you go, the four different money-making models to follow when choosing your food and
beverage concept.
At the end of the day, just because someone is successful with a bubble tea shop, it doesn't
mean it suits your needs.
Choose the one vehicle that brings you to your destination.
Choose the one that is the most fitting for you.
There's three things to consider when choosing here.
We're talking about the risk level, the work level, and the stress level.
Do not, do not be tempted to follow what other people are doing.
Choose one that is the most fitting for you.
I really hope you find success in this whole journey of opening up your own restaurant,
your own food and beverage concept.
If you guys need more resources, I've actually compiled everything that I've learned throughout
my past five years of running my ice cream chain all into this model from choosing the
type of business to actually doing all the margins, all the math behind it to finding
your customers, to menu designs, to finding talent to be able to work for you, to all
the marketing tactics that I've actually been able to use to grow my business all into this
one website and link.
It is in the link below.
If you guys want to learn more about it, check it in the link below, and I'm going to be
sharing a lot more goodies and nuggets with you.
Otherwise, subscribe to this channel because I'm going to be making much more of these
videos.
Comment the below, and tell me exactly what you want to create and support along the journey
by smashing the like button.
Otherwise, I'll see you guys in the next video.