November 2009

If you think it’s a bad time to opening a restaurant business, you might want to think about it again.

Everyone knows the prevailing wisdom about the restaurant business: It’s a bad bet, notorious for failure, with three out of four places closing within the first three years.

But consider this: Studies have found the risk of closing is the same in good times and bad, according to Andrew Rigie of the New York State Restaurant Association. And the upsides to a down economy make it a risk worth considering. Rents have dropped by as much as 66 percent in prime locations, and landlords are actually offering abatements. There’s a huge pool of talented chefs and workers desperate for jobs and willing to work for much less. And, as Hoffman says, “There’s money sitting on the sidelines” to be tapped for investments, even if banks are not loaning at all.

Yes, the cost of space has gotten down and landlords are bending their backs for tenant occupancy. Although Hawaii’s scenario might not be in tact, asking the right questions can garner the right terms and agreement of operating a restaurant.

As always, the bottom line really is the bottom line, which is why successful restaurateurs hammer on the importance of a business plan. “You can’t think you are going to open a restaurant and only pay the bills,” Mendes says. “You really have to have a strong plan. It’s tedious, it’s a test of patience. But it’s key.” More important, “don’t open with zero in the bank –I’ve been open for six months and am still paying bills for construction.”

Arpaia and others lament that culinary schools graduate chefs with no serious training in business beyond managing food costs. And so she advises: “Partner with people who know what they are doing and not be undercapitalized. If you think you need $50,000, you really need $100,000. You need to cover payroll, food and wine. People who are undercapitalized make it to nine months; most don’t make that first year.”

As always, homework is always necessary and something you cannot dismiss especially in this competitive age. One needs to dissect the cost of operating and expenses very seriously to break even. Don’t you wish it was a lot easier like school homework?

Read the full article here.

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Brothers Glenn and Gregg Uyeda make their magic from creativity, passion, and hard work at Aiea Bowl – one of Hawaii’s best and fun places to bowl. These 2 successful brothers from Hawaii are making a profit of 25% a year by making use of their bowling commercial space to the most potential.

Read more about it here.

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This is probably the most positive news in the world today. China approved Disney to build a theme park in Shanghai, China. With China’s 1.3 billion population and the economic supply force, this is indeed a significant milestone.

After a courtship of about 20 years, the Walt Disney Company has won approval from the central government of China to build a Disneyland-style theme park in Shanghai, Robert A. Iger, Disney’s chief executive, said Tuesday. The agreement for a Shanghai Disneyland is a landmark deal that carries enormous cultural and financial implications. Analysts estimate the initial park — not including hotels and resort infrastructure — will cost $3.5 billion, making it one of the largest-ever foreign investments in China.

Source: NY Times

Relating to the popularity outburst of Tokyo Disneyland, this is quite an accomplishment for China to open its doors to the west and allow more foreign involvement although they’ve been known for their strict censorship. The door has finally opened.

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Nanami’s 1st Halloween. She tried 3 outfits yesterday: pumpkin, butterfly, and spider. She liked the pumpkin the best  and hated the spider.

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