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    3 Replies Latest reply on Oct 26, 2007 10:13 PM by WEBillions

    Researching local restaurants revenue/traffic.

    markus Newbie

      I have an opportunity to go into a partnership with a small local franchise and I found a great location. A moajor inertsection with about 90,000 cars passing thru a day, Costco and Albertsons around the corner. Coffee Bean will be an anchor store.The only thing is the rent is $7K and from what I'm told we need to make around $96K a month to actuallly see some profits. This, to me, sounds huge. That's about 300 customers a day as the average ticket price is $10.

      The chain is a taco store and they have about 15 stores. They are doing well, have good inexpensive food, and unique concept. They have one other store with a higher rent and it is doing ok, so far. Most o ftheir stores ar eint $4-5k range.

      I do not have any experience as an owner I have worked in the industry and managed one small bar. Does this number seem right? Is this even possible? That's a lot of tacos on a daily basis. How do I find out what the other stores are doing in the area?

      Thank you for any feedback or places to research.
        • Re: Researching local restaurants revenue/traffic.
          BDS INC Adventurer

          Generally when you open a franchise, they will have franchise consultants that do exactly what you are asking. I am helping my sister look into a wine franchise right now and they actually have a consultant coming out to help her review locations, traffic patterns, and give a sales model on the likely revenue the store will generate. That is the great thing about franchises, their corporate offices will do everything to help you succeed because if you don't succeed as a franchisee, they don't make money.

          My advice is to contact the corp office of your franchise, if they have 15 stores I assume they have done some homework and will be able to give you a good assessment of your area and the likelihood you'll succeed based on your expenses.
          • Re: Researching local restaurants revenue/traffic.
            LUCKIEST Guide
            BDS has some good answers and personal experience.
            Going into business is the american dream. You have worked in the industry.
            How soon do you need to make a decision. Have you Developed a BUSINESS and MARKETING PLAN??
            Do you have the funds needed?? How about an Accountant and a Lawyer.
            Your accountant should be able to help tell you if the numbers add up.
            Good luck, LUCKIEST
            • Re: Researching local restaurants revenue/traffic.
              WEBillions Adventurer
              How do you find out how other stores in the area are doing? Ask. Be honest. Tell the owner you are considering getting into to the business and just want to know what you might be in for? Do they seem happy with their jobs or are they struggling?

              It seems to me that unless you are really passionate about learning more about the restaurant business, you might want to find something more suited to your skills and interests. I'm am not going to tell you that you won't make money. But, the question is will you have fun doing it? Because if you aren't having fun, it's not worth it. So, do you enjoy a challenge? Even one that might take a long time to crack? Are you passionate about filling the daily needs of hungry people? If so, start making a plan.

              By the way as of the 90s (so do the math for inflation), approximately 60% of all restaurants had annual sales below $250,00. Of course, it sounds like you might be in a high traffic area so that's good. Only 8 had annual sales over a million, and it sounds like that's what you need to stay afloat. So, personally, I wouldn't do it, but that's a decision for you to make.