BBQ pit stop

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makinbacon$$
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2017/02/16 11:38:35 (permalink)

BBQ pit stop

I'm sure you guys see posts like this everyday. I have worked a couple restaurant jobs, but I'm by no means a professional. I've been in the corporate world for 5 years now, and I am thinking of getting back into F&B. My idea is to start a small BBQ restaurant that serves a very limited menu:
  • BBQ pork sandwiches
  • BBQ pork tacos
  • BBQ chicken sandwiches
  • BBQ chicken tacos
  • Canned soda and canned beerI would also serve Brunswick stew and a three sides (fries, cole slaw, collard greens). If anyone is interested, I can get more granular with the menu and prices.
    I would have counter service only, and all meals would include a side and canned soda (significantly mark up beer). The area is developing, high-density and has high traffic. I would work full-time have made the following projections:
 
Labor
  • 4 workers X $12/hour X 30 hours week X 52 weeks is roughly $75,000
Rent and utilities
  • $18/foot X 2500 sq feet = $45,000
  • $2000 per month for energy + 300 per month for water = $28,000
Debt and insurance
  • $300k loan for 200k in construction and kitchen equipment (100k working capital) @ 5% for 5 years = $68,000
  • Insurance estimate for liability, workers comp, umbrella, etc. = $20,000
Total fixed costs are $236,000, which I’ll round to $250,000
 
 
If pork is $1.75 per pound (pre waste), and if waste/leakage is 30% then 1.75 X 1.327 = $2.32 per pound (true cost)
Forecast 5 oz pork per meal, 16 oz divided by 5 oz = 3.2 meals per pound, $2.32 divided by 3.2 = about $.75 per meal
If buns, spices, vinegar bbq sauce and sides add up to $1 per meal
 
And drinks add up to $.30 per meal
 
And my average ticket is $8 (being conservative) then my margin looks like 8 – (.75 + 1 + .3) = $5.95
$250,000 divided by 5.95 is 42,016 meals to break even. 42,016 divided by 300 days (Mon-Sat) is 140 meals a day
 
 
Does this seem reasonable, and if not, what can I do to increase my margins. 
post edited by makinbacon$$ - 2017/02/16 12:10:37
#1

10 Replies Related Threads

    Wintahaba
    Cheeseburger
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    Re: BBQ pit stop 2017/02/16 12:08:46 (permalink)
    140 meals is optimistic staring out....but hey...it still comes down to Location x3 and quality of product. I also see no mention of allowances for ware-washing/uniform/marketing/signage/paper products/chemicals/small-wares/pest control/ascap/security/etc.
    #2
    1bbqboy
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    Re: BBQ pit stop 2017/02/16 13:12:33 (permalink)
    Passion seems to be missing in the equation.
    #3
    makinbacon$$
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    Re: BBQ pit stop 2017/02/16 14:11:05 (permalink)
    I couldn't be more passionate and excited. I've never cared for anything in my life like I care for food (maybe one thing :) But before I change my life and invest my savings, I want to calculate every move I make, I can't afford to put myself in a precarious situation. 
     
    I've spoken to the real estate broker, the street location has 17k plus vehicles per day and good signage. There is a brand new apt across the street, as well as Whole Foods and other major retailers within a quarter mile. There are also lots of microbrews around the area (I'll make sure to serve their beer so I won't hurt anyone's feelings). 
     
    It has the opportunity to turn into a neighborhood staple with very cheap grub and cheap beer (no liquor). But I don't want to dive in head first if I can't get my numbers to work. 
     
    I also think that 140 meals per day is WAY too optimistic for an opening restaurant, I'm trying to find ways to build margin without sacrificing quality. 
    post edited by makinbacon$$ - 2017/02/16 14:12:45
    #4
    mar52
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    Re: BBQ pit stop 2017/02/16 14:54:52 (permalink)
    Why do barbecue restaurants now not sell ham?
     
     
    #5
    Root-Beer Man
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    Re: BBQ pit stop 2017/02/16 16:00:21 (permalink)
    mar52
    Why do barbecue restaurants now not sell ham?
     
     


    Some do, it seems to be regional.
    #6
    1bbqboy
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    Re: BBQ pit stop 2017/02/16 21:33:49 (permalink)
    mar52
    Why do barbecue restaurants now not sell ham?
     
     

    That was an always my standard order at Gates- Combination beef and ham on a bun. You are right though, ham is almost as rare as lamb/mutton.
    post edited by 1bbqboy - 2017/02/17 17:44:39
    #7
    hpx
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    Re: BBQ pit stop 2017/02/16 23:29:59 (permalink)
    I wish you the best of luck in your venture.
     
    300,000 is very heavy debt to start out with. 140 meals a day is near impossible to start out needing to sell. You will sadly be working for nothing but the bank.
     
    I am sorry to rain on your parade. 
    #8
    Blakkmoon
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    Re: BBQ pit stop 2017/02/17 00:24:15 (permalink)
    I know you are just spit ballin here.
    But you have missed LOTS of expenses.
     
    Do yourself a favor and do a REAL business plan.
     
    The last time I did one for our store, it took a few months to put it together, and that was with help.
    And we still missed things.
     
    Ex.
    Accountant, book keeper, Napkins, Toilet paper, Soap, Those stupid little rolls of paper that go in your credit card machine.....  the credit card machine, the cut that those companies take, the phone line, internet connection, tv/ cable, plates, cups, cutlery ( either disposable or washable ) mops, pails, cleaning solutions, office supplies, computers, paper, printers, ink, light bulbs, pens, markers, payroll services, trade shows, loyalty cards....ADVERTISING.
     
    These are just the tip of the list off the top of my head that we did not have in the biz plan.
     
    Heck if you had a receipt printer AND a credit card machine like we do ( 2 different sizes of paper ) and you were doing even HALF of your projections, then each roll would last about 3 days.
     
    my 2 cents :0
     
    #9
    makinbacon$$
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    Re: BBQ pit stop 2017/02/17 17:07:02 (permalink)
    Thanks guys, need all the help I can get. I'm trying to bundle all expenses into categories now. I'll keep updating this post as I go along. 
    #10
    Foodbme
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    Re: BBQ pit stop 2017/02/18 17:58:07 (permalink)
    Not sure where you live but do people in that area even like BBQ? Is there a market for the product? What's the competition? Have you considered a food truck instead of B & M? Lower startup an operating costs. Liking the food business and managing a food business are 2 different animals!
    #11
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