Restaurant Operations HELP

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MurphyLawPTDEUX
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Restaurant Operations HELP - Fri, 04/5/13 11:19 AM
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First I just want to say that this website is great.  I stumbled upon it this morning and have wasted about 2 hours reading all the posts.  So I am a first poster!  I have always wanted to open a food truck and with the increasing popularity I might able to one day! Anyway, that is not why I am here.  I am a student at Florida International University getting my Master's in International Real Estate.  Myself, along with my group, have been tasked with choosing a property and determining if it is a good buy.
 
We may have bit off more than we can chew and decided to analyze a hotel/restaurant/golf course in Kentucky.  Still trying to figure out how we found the property and agreed to it?!  I have been tasked with putting together a restaurant P/L so that we can accurately determine if the property is worth it.  I do have 2 years of food-service experience but it was in sales, not operations.  Totally different ball game.

I am looking for some help in estimating traffic, payroll, food costs, drinks, etc.  It might be important to include that the restaurant will be located in a dry county.  However, the offering memo for the property states that the county is giving special permission to the property for a liquor license.  So the property will be the only place for residents to buy liquor within a 45 minute drive.
 
Any help anyone could through my way would be greatly appreciated!  I have reached out to a restaurant owner in my area with no luck.  He wasn't very friendly so I might reach out to a few others.
 

<message edited by MurphyLawPTDEUX on Fri, 04/5/13 3:39 PM>

MurphyLawPTDEUX
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Re:Restaurant Operations HELP - Fri, 04/5/13 11:20 AM
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Well it looks like the formatting was messed up.  I have an excel file I can send anyone that is interested.
 
 

MurphyLawPTDEUX
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Re:Restaurant Operations HELP - Fri, 04/5/13 1:54 PM
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If anyone can provide percentages, even that would be great.  For example what percentage of revenue the payroll and food costs will be.  Is there a 50% COGS?  On average?

Sundancer7
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Re:Restaurant Operations HELP - Fri, 04/5/13 2:31 PM
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Where in Kentucky is the potential property located?
 
Paul E. Smith
Knoxville, TN

MurphyLawPTDEUX
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Re:Restaurant Operations HELP - Fri, 04/5/13 2:38 PM
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Just outside Pineville, KY.  We are assuming it will be a place to visit for colleges/universities, outdoor enthusiasts, golfers, and hunters.

rumaki
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Re:Restaurant Operations HELP - Fri, 04/5/13 2:49 PM
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Just out of curiosity:  is your group supposed to be "reaching out" for this kind of assistance, or are you supposed to be doing it on your own?  I ask as a university professor who sets very clear rules for my students about what kind of project help is considered authorized and unauthorized.

Uncle Groucho
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Re:Restaurant Operations HELP - Fri, 04/5/13 2:59 PM
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Are you sure you can sell Alcohol in Pineville Ky. They are pretty strict about being a dry county. I stayed at Pineville State Park for a week, its a very nice area. I brought my own Beer.

MurphyLawPTDEUX
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Re:Restaurant Operations HELP - Fri, 04/5/13 3:37 PM
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^^ Yes we are able to reach out to the community.  
 
^Yes, Pineville is dry, however, this particular location is determined a "special use" case to attract patrons and stimulate economic development.

fishscale28
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Re:Restaurant Operations HELP - Fri, 04/5/13 5:55 PM
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Welcome! Obviously there are lots off differing factors that make nailing down actual numbers very difficult but percentages can go something like this: food costs at or under 30% are good. Liquor/beer between 10-20% and labor beings n the 10-20% ballpark as well. And that's including everyone (managers, hourly, etc). Traffic is a little harder to guesstimate as I know nothing about the area or concept but I'm sure several thousand cars a day would be a good start.

Lots depends n the concept, your approach to service, the size/complexity of your menu, etc. for your P&L industry standard for profit is about 7% but with proper management, great staffing procedures, mindful business practices etc it is certainly feasible to expect more and be in the 12-15% neighborhood.

Happy to help with any other info or any specifics. Let me know if you have any more questions and I'm sure we'll all be happy to help.

Cheers!


jman
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Re:Restaurant Operations HELP - Fri, 04/5/13 7:17 PM
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My wife is from Pineville and still has lots of family there. Your idea is either very bold or really wacky.  Pine Mountain State Park is on the southern outskirts, but the rest of Pineville is blighted. It seems kinda like putting lipstick on a pig.

CCinNJ
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Re:Restaurant Operations HELP - Fri, 04/5/13 10:34 PM
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You selected a challenging assignment to project liquor sales.

I'd include research and history of golf course exemptions as far as liquor sales for KY through the KY ABC (Alcohol Beverage Control) and if/when they are or have been put to a vote on local ballots for the community or surrounding communities.

KY is a unique State when it comes to liquor laws....and if there is a potential for a fluid situation...supporting documents should be included in the project...if you have to project and crunch numbers.

There's probably a reason why this property is on the project list. Careful and meticulous research. Make sure you cover all the bases.

CCinNJ
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Re:Restaurant Operations HELP - Fri, 04/5/13 10:58 PM
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Right now Bell County lists as LR-100 without mention of golf course exemption...

http://abc.ky.gov/Licensi...20and%20Dry%20List.pdf

Be careful & do your homework.

CCinNJ
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Re:Restaurant Operations HELP - Sat, 04/6/13 1:41 AM
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Don't know the landscape right outside Pineville but here's the recent liquor law news within Pineville...


http://www.wkyt.com/wymt/...bile=yes&device=iphone

MurphyLawPTDEUX
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Re:Restaurant Operations HELP - Mon, 04/8/13 11:49 AM
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Fishscale28 - Great help!  This will get me a little closer to what I am calculating.  If I need any further assistance can I contact you directly?

MurphyLawPTDEUX
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Re:Restaurant Operations HELP - Mon, 04/8/13 11:55 AM
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Jman - can you elaborate?

Foodbme
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Re:Restaurant Operations HELP - Tue, 04/9/13 1:27 AM
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Hey folks----keep in mind this is an academic exercise.They're not going to actually operate the place so I think they can make some assumptions.
There's all kinds of info on the National Restaurant Associations web site.
www.restaurant.org
Here's more good info:
http://www.foodservicewarehouse.com/restaurant-equipment-supply-marketing-articles/restaurant-management-and-operations/the-restaurant-profit-and-loss-pl-statement-/c28015.aspx

fishscale28
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Re:Restaurant Operations HELP - Tue, 04/9/13 1:40 AM
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Absolutely!! Happy to help-feel free to shoot me an email at yahoo.com using my username first.

CCinNJ
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Re:Restaurant Operations HELP - Tue, 04/9/13 9:09 AM
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Understood...it's an academic assignment. Those are almost as costly and just as important as actually operating the business.

MurphyLawPTDEUX
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Re:Restaurant Operations HELP - Tue, 04/9/13 1:17 PM
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Thank you for your help everyone.  This really helps a lot.  I am going to do some fine tuning.  And yes - this is considered an academic project where assumptions can be made.  We are making assumptions to show determine if it is worth the development.  But thank you for your advice!