Do you prefer partial gross or triple net leases when looking at new location?

Buddy of mine has some front of house mgt experience and has a dream of opening aplace but no money. How would he best go about getting an appropriate partner and for them to seek money?

Is there a deal you would take at an inferior location if you felt the concept could draw its own traffic if it offered much less risk and lower overhead? Let's say a Landlord would build you out 100% and take 8% of revenue as first year rent with no minimum and a much lower than competing rents thereafter but the center was non anchored with reduced visibility but in a great area over all?

Can you please post the concept (franchisor name is not required yet), sq ft of inferior site, where it is positioned in the mall/plaza & what you estimate the build out to be?

Your buddy needs to attain full p&l responsibility (gm) experience for a few years first.

It depends. Is this a serious question?

im not really learning anything here...........lol.

though i think im an expert on subway franchising...lots of info available w a few clicks here and there

I'm considering opening a small fast fresh food place that is take out only. For the sake of discussion, let's just say they're gourmet tacos and I'll offer a variety of unusual bottled drinks.

In an effort to decrease the risk of robbery, control employee theft and to have good digital transaction history, I was considering not accepting cash and only accepting payment in the form of credit cards, debit cards or our pre-paid gift cards.

Do you think I will lose much in sales by refusing to accept cash?

What are the pros and cons of doing this?

Have you ever been involved in a business that didn't accept cash?

u lose sales.

theft will be minimized.


if your idea was any good taco bell would have done it years ago.............lol.


escrow companies wont take cash...go figgure!

what experience do you have in the restaurant business and why should I give your opinion any merit?

i think this will work well for high end restaurants not sure about a small take out place . how much do you think prices will be @ your place ? do you think you'll attract busto college kids/ high school kids who will more likely not have a debit card and deal w/ cash ?


another con would be cc/bank fees are going to cost you about 2-3 percent of all your sales. . which will probably make you raise your food prices ,

sorry for the derail , think its an interesting idea .


restaurant in ny that went cashless
edit://
http://online.wsj.com/article/SB125260838282300453.html

good article, thx for the link. His reasoning mirrors mine, I think I could make up the CC fees in efficiency on the accounting side of things and reduction in employee theft. I'd like for the customer to be able to order and pay with their mobile phone and receive a digital ticket much like you'd see in an old bakery. The system would auto que all the customers, take payments and enable the customers to grab and go more quickly (this alone could justify the CC fees).

My concept is gourmet, fresh and healthy fast food for people that want something that is fast yet still good for them and tastes great. It would only serve Bfast & lunch, so we wouldn't be targeting the late night drunk crowd or cheap junk food that kids would want to pay cash with.

I think its a matter of time before this becomes more standard, I suspect a large % of people use their credit or debit cards 95% of the time already, I know I do.

Additionally, I may test the concept with a food truck and I don't want my people driving around town with a bunch of cash on hand

i have common cents!

another thingg!


buying gourmet food from a truck............ohh lord. dude-noone buys breakfast from a roving truck.lunch -yes!



and another !


you too paranoid to make a lot of money!


im not good at what works but i do have great vision to know what wont. althought tofu tacos may catch on-mexicans love tofuu!

Your ignorance is blinding, gourmet food trucks are popping up all over the country and are very popular, do a google search and you'll see tons of info, ex: http://www.time.com/time/photogaller...089548,00.html

an extremely popular gourmet taco stand in my city has a line out the door for their bfast tacos, were featured on the food network and just moved from a place smaller than a food truck to a larger location to meet demand

thanks but I'll pass on your version of common sense

its a fad......lol. letts hear from op maybe ill start looking at tricked out truckks tomorrow!

those customers in line did look like cash payers though.....lol.

Short answer, not something I would personally pursue or recommend & would add that your energy is best spent elsewhere in your operations. I am a little skeptical of your motivation here as the majority of operators complain about the cash handling perspective as it often requires their physical presence in the store at some point each day or a reliable manager who can close out daily sales & make daily deposits into either a drop safe or after hours bank slot. Before I answer the rest of your question, may I ask how you will handle a customer who has to pay in cash? Is it going to be a spot sale of a gift card?

Excuse me biggbob, can you stop posting in BFI? A guy gave you a great post with evidence of a trend, and your reply is 'its a fad', with nothing substantive. You have no real desire to join the discussion, just speak whatever is on your mind. This may be why you're unemployed, since instead of spending your time researching, learning, and talking with people, you just spin the first opinion that comes to your brain and defend it to the death. This is why you won't progress as a person, because you're not very smart and don't do any activities that make you smart. All of your posts are very very bad, difficult to read, and mindbogglingly miss the point.

So in conclusion, you're not allowed to post in BFI anymore. If you post again, I'm giving you 5 days off, and if you post again after that, it will be a permanent ban.

I am a big fan of food trucks & think they are presently one of the best spots to put your time, money & effort.

Well done ArturiusX.

Do you recommend multiple food distributors or going with one? How do you keep them honest with pricing?

Yes, that would be one option, the other would be to relunctantly have to refuse the sale.

I'm probably at least a year away from trying this venture and am currently weighing the pros and cons of various aspects of the way the business would operate. Accepting or not accepting cash is one of the issues I'm trying to determine what the costs & pros & cons would be for either option.

I've been told repeatedly by people that have run restaurants that employee theft of cash is an important issue to manage via good controls, do you feel I'm overstating it's importance?

Lol, he's back.....

internal theft is a problem in almost all business.

x 100 in retail businesses

x 1,000 in restaurant business

I'm always amazed that such a large % of people want to open restaurants given the ridiculously high statistical failure rate of restaurants. I'm guessing a major motivator (besides the fact that they mistakenly think they'll make a ton of $$) it that people think it would be "fun" to own & operate a restaurant.

That said, I occasionally daydream about owning a bar/club on a beach somewhere in Mexico, so guess I'm as starry-eyed as everyone else.

But I'd love to open a Chipotle Grill in a mall food court (don't think they currently operate in food courts) if only they'd start franchising . . .

It's not by coincidence that Chipotle (and starbucks) for example do not operate a franchise system.

it's commonly referred to as Loss.

this is a great Topic/Thread.

I looked breifly into operating small franchise markets(7 eleven) but after reviewing the financials I found out I would need to own at the very least two to three individual units to make enough where it MIGHT be worth while. the average 7/11 will bring in about 40k-75k net after all fees and costs... some MIGHT bring in more but you need a location that is absolutely pumping volume. One additional item that killed it for me is that this is a 24/7/365 business... no down time what so ever. you can loose your rights as a franchise owner if they find out you are not open for business. on a side note the good thing about the franchise is that they do all payroll accounting and paper work all you have to do daily orders and make your scheduled deposits.

It depends on a few things, but mostly volume. You will have the most leverage when you commit all of your purchases to one main line purveyor (Sysco, GFS, USFoods etc..) & then might have an opportunity to to sign a prime vendor agreement with one of them that will set your prices at x% over their costs. The larger purveyors are also better connected into the network of brokers & manufacturers. So sometimes you can negotiate the pricing directly with them or at the very least get sampled quickly & have access to good info. Brokers are a very valuable resource so don't hesitate to call on them.

Keeping them honest with pricing starts with your first meeting with the sales reps & I will be posting some guidelines on dealing with purveyors later tonight. FYI these guideline will not apply very well to franchise operations where you will be generally required to purchase directly from their commissary or preferred purveyor & follow their established recipes. If you are in a franchise model, know that your franchisor is getting a kick back on every dollar of sales from the purveyor & likely has agreements with manufacturers that commission them in exchange for using their products. There is very good reason, usually financial, why your franchise uses Pepsi vs Coke & Kraft vs Ken's.