Opening up a deli/very small restaurant

[T_Money]

Ok, those of you w/ experience in the field, why, specifically does a lack of cash at first doom the business. I just started college for hotel restaraunt management (but plan on owning a sports bar/night club). If you could fill the place (his deli), from day one and your cost is only 33% of your menu, why would how much cash he has to start matter? And why should you not expect to make any money for a few months? Just based on the expectation that there will be no customer base?

[guids]

If you could fill the place (his deli), from day one


Thats the main reason. 99.999% of the time, you cant fill it from day one, and if you do fill it from day one, it definetly tapers off. One of the main things I see in my line (Im a food and beverage consultant), is owners of clubs/bars/restaurants etc who pack thier place for the first couple of months, based on the fact that it is a new place, but they end up blowing it on themselves, or re-investing the cash to heavily back into the restaurant, rather than sitting on it for the times when they slow down, which most businesses do eventually (ecspecially in teh restaurant biz where owners let things stagnate moreso than the bar biz). With a deli, its a little differnt from the cost standpoint imo though, if he has 10k, after the place is stocked (ecspecially if he also has dry goods), I think that would probably be close enough that he has the cash flow to be alright, a restaurant/bar, where labor/liquor/food/liscencing/equipment costs tend to be a little higher, 10k is about as good as a nickel. No one ever had to close up shop becuase they had too much cash on hand.

[Big Poppa Smurf]

OK so I went to check out the place today with my dad, it's pretty sweet. Small, but it will definitely do once we get it cleaned up.

And the location kicks ass - there are lots of construction sites, retirement homes, and big warehouses/companies all in the area. There are also no McDonalds/BK's/T-bells/etc anywhere nearby - there is a Domino's, a Subway, and a combination convenience store/dollar store/deli that looks really gross and dirty, so if we advertise well we should hopefully get a lot of customers.

[onlinebeginner]

retirement homes...dollar store..... sounds like your ****ed


only SLIGHTLY kidding

by the way your doing a lot for your dad, i wish i could say i would do the same for mine