Restaurants and Franchises

Posted by PITHOCRATES - August 5th, 2013

Economics 101

Changing a Restaurant Name can be Costly and hurt the Marketing of your Brand

What is the number one business most likely to fail?  Restaurants.  About half of all new restaurants fail within the first 5 years.  Why?  Because people who can cook typically open up restaurants.  And that’s all they know.  Cooking.  Sadly, cooking is the smallest part of owning a restaurant.  And it’s these other areas that people who can cook fail miserably.  Because when they open up a restaurant there’s no operating manual that comes with the building they buy or lease that clearly tells them everything they need to know or do.

Chefs in the finest restaurants are masters of their craft.  Because they study how to master the art of cooking.  They didn’t go to business school.  They went to culinary school.  But running a restaurant is more than cooking.  It’s a business.  A business that must produce revenue to cover all of its expenses.  Which is kind of hard to do when you don’t know how to market your restaurant to get people to walk through the doors.  Without which there is no revenue.  Or when you don’t know all of your expenses.  Which starts with the restaurant’s name.

A good name will not guarantee success.  But a bad name can hurt business.  It should not confuse people.  Such as ’57 Chevy, for example.  Which may be your favorite car.  But people will think cars instead of food when they hear it or see it.  And it shouldn’t discourage them from eating there.  Like Average Joe’s, for example.  Because people rarely go out to restaurants that have just received an average review.  So a name is important.  And if you start with a bad one it can be very costly to change.  There’s building signage.  There could be a pylon sign near the road.  Signage inside the restaurant.  Not to mention replacing all of your menus.  These things cost.  And cause confusion with the identity of the restaurant.  Which could hurt the marketing of your brand.

Getting Menu Prices just Right is often the Difference between Success and Bankruptcy

Choosing a good restaurant location is critical, too.  A nice building you may be able to easily afford will do you no good if it isn’t near people.  As people aren’t going to travel great distances to dine at an unknown restaurant.  Which means choosing a good location may require choosing a costly location.  The purchase price/lease price may be much higher than anticipated.  Property taxes may be higher.  Both real (the land) and personal (the equipment inside).  And may be a cost item that a person who can cook didn’t even know was required.  Like the additional expenses to get all the permits and licenses to open for business.

Once opened there’s payroll.  Which you have to pay even when you’re not doing much business.  And a sit-down restaurant requires a lot of people.  Kitchen help to cook, clean and prep food.  Someone to bus tables and wash dishes.  A hostess to seat customers.  And cash them out.  A wait staff to wait on customers.  A bartender (if you have a bar).  A restaurant needs a general manager, a front of house manager and a back of house manager.  And an executive chef.  If the owner is the executive chef he or she will have to hire others to manage those other areas.  Have a spouse split all management duties with the executive chef.  Stressing the marriage.  Or risk poor service that will prevent customers from returning.

Then there are the utility expenses.  Electric, gas, water and telephone.  A point-of-sale system to track sales and manage inventory.  Or longer hours to allow manual bookkeeping and inventory control.  Dishes, cutlery, napkins, toilet paper, light bulbs, dish soap, filters, grease disposal, etc.  And a pleasing interior design.  As people want to enjoy a good meal in a pleasant environment.  Things that cost.  And things revenue must pay.  Which brings us to the menu.  The thing that will make or break your restaurant.  If you have a 10-page menu to appeal to as many people as possible you will have too much of your money in your food inventory.  And you’ll end up throwing away a lot of slow moving product.  If it’s not unique enough people will have little reason to come into your restaurant.  As will menu prices that are too high will, too.  But if those prices are too low you won’t have enough money to pay for all of these expenses.  Getting these menu prices just right is often the difference between success and bankruptcy.

Buying a Franchise is like Buying a Restaurant that comes with a Complete and Detailed Operating Manual

A big reason why restaurants fail is because owners don’t understand their costs.  And because they don’t understand their costs they don’t know how to size their food portions.  Or how to price their menu items.  Portion sizes that are too large require a bigger inventory.  Which costs more.  Leads to more waste.  And that waste leads to more costs.  While prices too low won’t generate enough revenue to cover those portion sizes.  As well as labor and overhead costs.

In a restaurant the menu is everything.  A person highly skilled in cooking can populate a menu with some delicious dishes.  But a menu too large can confuse customers who don’t want to read a book before ordering.  It could expand the inventory to include a lot of frozen and canned items because they will last longer.  But are more costly than buying fresh.  Whereas a large inventory of fresh items will not last as long.  Leading to a lot of waste.  So a shorter menu allows a smaller inventory of fresh product.  Which increases the quality of the food served.  And keeps costs down.

The restaurant owner can get all of this right but if they can’t get people to walk through that door it’s all for naught.  And getting people to walk through your door can be the hardest part.  There are many options but they all require more time and more money.  And these are things a restaurant owner has little left to spare.  Which is why so few restaurants succeed.  But there is another way to own a restaurant.  One that has a much better chance of succeeding.  And you don’t even need culinary training to succeed.  You can do this by buying a restaurant franchise.

Buying a franchise is like buying a restaurant that comes with a complete and detailed operating manual.  That tells you everything you need to know and do.  It gives you your menu.  Your portion sizes.  Your menu pricing (or at least a starting point that can be adjusted for your geographic location).  And something even more valuable.  A built-in, extensive marketing program.  So that you can have a flow of people coming through your door the day you open for business.  Because people already know everything about your restaurant because it’s part of a great national (or international) chain.  And they may have just been waiting for one to open near them.  Something a chef opening his or own restaurant can only dream about.  But that franchisee can’t have the satisfaction of bringing their dream to life like that chef can.  As long as he or she is not in that half that fails in the first 5 years.

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FT145: “Ivy League liberals often argue contradictory positions on the same issue.” —Old Pithy

Posted by PITHOCRATES - November 23rd, 2012

Fundamental Truth

Liberals help Women satisfy the Filthy Sexual Desires of Men by giving them Birth Control and Access to Abortion

Liberals may confuse some people.  As they often seem to argue both sides of an issue.  Those they champion.  As well as those they condemn.  It can leave one scratching one’s head.  For the liberals are the pure breeds of the political world.  They come from the most exclusive and the most expensive halls of higher education.  The Ivy League.  So they’re supposed to be really smart.  But do smart people consistently contradict themselves?  No, they don’t.  So either the Ivy League doesn’t graduate smart people.  Or they graduate intellectually dishonest people.  Take the issue of marriage, for example.

The Left empowered women in the Sixties.  By giving them the birth control pill.  So they didn’t have to get married and give up on life.  No.  Thanks to the birth control pill (and abortion) women could have careers.  They could enjoy life.  Just like a man.  And didn’t have to live under the heel of a jackbooted thug.  Or otherwise known by those on the left, a husband.  No longer must they stay barefoot and pregnant.  Living life as a cook, maid and whore.  Thanks to the pill she didn’t have to succumb to the hell of wedded bliss.  For marriage sentenced a woman to hell.  There was nothing redeeming about it.  Yet they argue marriage is a beautiful thing for gay people.  And that we should rewrite law to grant this expression of love between two people to everyone.  Including lesbians, gays, bisexuals and transgendered (LGBT) people.  Even though it’s the worst thing that can happen to a heterosexual woman.

Being cook and maid is bad enough but being a whore in the bedroom is the worst part of being married for a woman.  For it is the most demeaning thing.  To satisfy the filthy sexual desires of a man.  Making a woman little more than her sexual parts.  Some on the left even go so far as to call all sex within marriage rape.  (Unless it’s gay marriage, of course.)  For women are more than their sexual parts.  They are not here only to satisfy the filthy sexual desires of men.  Yet liberals want to provide free birth control and abortion services to all women.  So they can satisfy the filthy sexual desires of even more men.  For it’s only when men satisfy their sexual desires that there is a need for birth control or abortion.

Despite the Republican’s ‘War on Women’ it often Appears that it is the Liberals who don’t like the Female Condition

Birth control and abortion are important issues for women.  It’s what made women vote for President Obama according to the exit polls.  To keep their birth control and access to abortion.  Even though no one was campaigning to take these away.  They call birth control and abortion women’s health issues.  Equating pregnancy with a disease.  Something that’s imperative for government to help women avoid.  And they make other altruistic arguments.  That abortion is better than having another unwanted child born to become a costly ward of the state.  And that abortion is better than bringing another baby into an already overcrowded and polluted world.  Yet they champion the cause of gay adoption.  Even though there would be no babies available to adopt in their perfect world where no unwanted child is born into an overcrowded and polluted world.  As they would prefer to abort the babies gay couples want to adopt.

Even though liberals say that only they can protect women from the Republican’s ‘war on women’ it often appears that it is the liberals who don’t like the female condition.  As many of their actions help women to be more like men.  For examples, liberals would like to put the NFL out of business.  For football is a brutal and barbaric sport in their eyes.  As evidenced by the rise in concussions and other serious injuries.  And it doesn’t stop at the NFL.  They would like to ban it from colleges, high schools and even at the pee wee level.  Yet they will fight for the right to allow girls to play this barbaric sport with the boys.  And even applaud when a girl plays this barbaric sport as good if not better than the boys.  Despite the concussion or other serious injury that may befall her.  Ditto for boxing.

Liberals have never liked the military.  For a couple of reasons.  They don’t like defense spending.  As they’d rather spend that money on social programs.  And they really don’t like using violence.  They abhor going to war.  And once called returning Vietnam soldiers some unkind names.  They often see soldiers as those bullies who picked on them in school.  Extreme alpha males who love violence.  They’ll support the civilians who volunteer to serve.  But they really don’t like the lifers.  The career people.  Who they look at as if there is something wrong with them.  A bunch of gun-crazy nuts.  Warmongers.  Secretive people we should be very weary of.  And their military industrial complex.  Yet they fight for the advancement of women up the chain of command.  For there is nothing better than women becoming lifers and career people.  Just like those extreme alpha males.  Those warmongers.  For it’s apparently okay to be a warmonger as long as you are a woman.

Ivy League Alumni are either not Very Smart or they’re Intellectually Dishonest People

Another group of people liberals hate is corporate CEOs.  A bunch of old rich white guys that sold their souls to make a buck.  Just look at Occupy Wall Street.  The attacks on Mitt Romney.  On bank executives.  As far as the Left is concerned these people are the scum of the earth.  With these contemptible CEOs sitting on the right-hand side of Satan.  Who care only about profits.  Not people.  The evil, heartless bastards they are.  In a side by side comparison the Left would be hard pressed to say who was worse.  Corporate CEOs.  Or Nazis.  Yet they rejoice whenever a woman shatters the glass ceiling to become one of these evil, heartless, contemptible, neo-Nazis that sit on the right-hand side of Satan.  Because evil is apparently okay as long as there is a woman in charge.

And speaking of evil that’s another thing liberals don’t much care for.  Religion.  Christianity.  For they see it as nothing but thousands of years of institutional oppression of women.  And a bunch of hypocritical moralizing.  Opposing abortion.  Even birth control.  As they frown on premarital sex.  Something that just didn’t jive with the free love of the Sixties.  Or the swinging Seventies.  No.  Liberals see Christianity as a persistent effort to turn the hands of time back.  Back to a time when women were kept barefoot and pregnant.  Living life as a cook, maid and whore.  That living hell of wedded bliss.  So liberals have no love for Christianity.  Even forcing Catholics to provide birth control and the abortion pill to any women on their health insurance plans.  Even though it’s against their conscience.  Yes, they’re bullying Catholics.  Rather ironic, really.  Considering how liberals hate bullies.  But they’re willing to embrace their bullying inner selves when it comes to Christianity.  As they have nothing but contempt for the Church.  Yet they’re all for the advancement of women in the Church hierarchy.  From pastors.  To bishops.  For Christianity is everything horrible they say it is.  Especially to women.  While at the same time it’s a swell career for women.  Apparently.

So we often see liberals arguing contradictory positions on the same issue.  Which is pretty odd as many of them are brilliant Ivy League alumni.  But normal for them.  Based on their history.  So Ivy League alumni are either not very smart.  Or they’re intellectually dishonest people.  Arguing not what’s right or wrong.  But what is most politically expedient for them.  Attacking traditions and institutions they don’t like from without.  And from within.  With but one goal.  To destroy what they don’t like.  So they can build something they do like.  A new world according to them.  Whether we like it or not.

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