> Have you never met someone who opened a restaurant?
Yes, two actually. Restaurants are incredibly difficult businesses to succeed in. But, to answer your question: my brother-in-law ran a pizza/sub restaurant in a small town, and a friend of mine ran a fancy restaurant in a resort town.
Both of them are tricky situations. My brother-in-law sold his business after being moderately successful (he did it full time and made a living for himself, but it was a lot of work for what he took home). He sold to form a new business with his wife, which is very successful. My brother-in-law, though, had no loans and started the business while living with mom/dad so had it failed, he'd have been out his "life savings (at 22) with no paycheck coming in". He ended up with a business that could sustain itself and him, and did so for a few years, but just barely.
My friend's fancy restaurant completely failed. His restaurant was one of the best places I've ever eaten[0], located in a lake-house town where my family has a vacation house. He lived upstairs with his family, and the place was packed during the summer, but he couldn't charge what he needed to charge to re-coupe the cost of the quality of food he served. His business failed, he moved out of town and went back to teaching but I believe he's opened up a new place out of state, recently.
Did they both expect to be successful? Yes. And since I didn't know Andy (fancy place) prior to his restaurant, I can't say for sure what his thinking was going into it, but the first year he was open he admitted that he knew he was taking a huge risk -- there is literally no business between October and May, and previous fancy places like this have failed regularly in that city. It's a bummer -- this place was amazing.
[0] It was a place you could go on the weekend and were bound to run into a local celebrity/basketball/football/baseball player; it busy/reservation only but small. He was only open Thu-Sun, everything locally sourced and the menu that day based on the best of what he could find (usually bought that morning).
Both of them are tricky situations. My brother-in-law sold his business after being moderately successful (he did it full time and made a living for himself, but it was a lot of work for what he took home). He sold to form a new business with his wife, which is very successful. My brother-in-law, though, had no loans and started the business while living with mom/dad so had it failed, he'd have been out his "life savings (at 22) with no paycheck coming in". He ended up with a business that could sustain itself and him, and did so for a few years, but just barely.
My friend's fancy restaurant completely failed. His restaurant was one of the best places I've ever eaten[0], located in a lake-house town where my family has a vacation house. He lived upstairs with his family, and the place was packed during the summer, but he couldn't charge what he needed to charge to re-coupe the cost of the quality of food he served. His business failed, he moved out of town and went back to teaching but I believe he's opened up a new place out of state, recently.
Did they both expect to be successful? Yes. And since I didn't know Andy (fancy place) prior to his restaurant, I can't say for sure what his thinking was going into it, but the first year he was open he admitted that he knew he was taking a huge risk -- there is literally no business between October and May, and previous fancy places like this have failed regularly in that city. It's a bummer -- this place was amazing.
[0] It was a place you could go on the weekend and were bound to run into a local celebrity/basketball/football/baseball player; it busy/reservation only but small. He was only open Thu-Sun, everything locally sourced and the menu that day based on the best of what he could find (usually bought that morning).