is this restaurant opportunity an opportunity?
Hello. I have a chance to pick up a full service restaurant for $80,000.00. $5000 down and owner contract for 15 years at 7%. The price includes the business and property. It has been doing $130,000 per year while it has had no real food quality and poor management. That was just for breakfast and lunch. The equipment is in good shape but old. it seats 75 people and has good parking. It is located on a highway that is designated a Scenic Byway so it gets traffic off of the interstate. The average daily traffic count is 3300. I would say it is much higher than that in the summer and much lower than that in the winter. It is located in a town of 2500 people and is 5 miles away from a town of 10,000. There is one good restaurant in the area but it is only opened at night and many people feel that they are too high priced and that their food quality has fallen over the years. I have worked in many restaurants over the years from being a waiter to cooking to management.
If I do this I am doing it on a shoe string. To the point that I will have to spend everything I have to open it up. I do know good food and I have a good reputation in the area and the area is screaming for someplace good.
I am curious what you think out there given the fact that I am on such a tight shoestring and keeping last years $130000 in sales in mind. It was doing breakfast and hamber and other sandwiches for lunch.
I have a voice in one ear screaming for me to do it and one in the other ear saying that I am going in to this way too thin on cash. I do have another income that I can make from 2 to 3 grand a month but it is very labor intensive so I know that I will have to give "some" of that up.
Well what is your take folks? Thank you.