These are the secret steps in choosing the right kind of food busines set up.

Bite Size Talks 2019	

<div>These are the secret steps in choosing the right kind of food busines set up.</div>

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ASI Pacific Union

David Zecha

The Recipe To Starting a Food Business

Today, this afternoon, I'm going to give you some pointers on the whole construction, the whole process of starting your business from beginning to end.

There's a lot of stuff that I didn't include in here just for the sake of time, but we're going to be able to discuss the generalities of it.

If you have specific questions, you are going to be able to come to me and I'll give you my card.

Again, for some of you who weren't here this morning, I'm a general contractor.

I do a lot of commercial projects, restaurants.

I built over 15 of them in the last few years, anywhere from 800 square feet to 8, 000 square feet.

It gets trickier as they get bigger, obviously, but that's what I do.

So I'm a partner of Pacific Benchmark General Contractors.

I also have my real estate company, Smart Vision Realty.

1 other agent does a lot of commercial property, but the rest of them specialize in residential properties.

I did have Cafe Stems, which I mentioned I sold earlier last year.

I'm also director of the San Diego Care Group.

Some of you know it's a young adult group in San Diego County.

We're the largest young adult SDA group and we are extremely active in all parts of the church.

And as I mentioned last year, I sold cafe stems.

And but people still ask me for recipes, and I'm still willing to give them out.

So It seems kind of trivial, but it's got to be a very good concept, and it's got to be a very complete concept.

And getting this down is often the first groundwork that you have to lay, and you have to consult with a lot of people if you don't have all the ideas.

But if you have the drive, and you have the imagination, the creativity, and some culinary expertise, this is a good place to start.

We're going to go over the financial analysis.

There's a lot of dynamics when it comes to putting a restaurant together, financing, personal finances being involved.

Also demographics, who do you want to target, what areas do you want to target, locations are very important.

And then we have the searching for the property.

This is a very arduous task that can take months in order to establish.

I won't spend too much time on that, but this is a very vital and important part of the process.

And finally, we'll have other things to consider.

Your restaurant concept, so like I say match the concept with the location.

You're going to have to see if you have a vegan vegetarian restaurant, will your concept do well in a Westfield mall?

Are you going to be able to make that rent?

Are you going to be able to pay the employees?

Are you going to be able to cover all that overhead that you have?

So you have to realize that if the demographic's supported, then you can start studying that area.

This is your standard business analysis, your model of supporting your expenses with your revenues.

And then there's another way to test the market.

So he went to this other restaurant owner.

And she says, Ma'am, you have a little corner like 200 square feet that I've never seen any chairs or anything with over there.

Do you mind if I rent it out for you for a couple hundred dollars a month?" She was like, go right ahead.

And so he started his Instagram, he started his Yelp reviews in a little corner of her restaurant for $200 a month, and he started cranking out shave ice.

And now he has a brick and mortar store that's been around for about 5 years and he's producing about $350, 000 a year.

Yeah, so test the market, make sure you're a viable concept.

So our financial analysis, we're gonna look at a typical brick and mortar space.

We're looking at about 1, 200 square feet, roughly can seat about 30 to 40 people.

Your permit and architectural costs were only about $10, 000.

Your construction cost plus inspections without a hood is about $130, 000 to $150, 000.

And then you got to have reserve for marketing, stocking, opening, lease for between 10 to 20, 000.

These are obviously very general numbers in your typical city.

So to start your own brick and mortar restaurant, You have to have capital somewhere between $160, 000 to $180, 000 for a 1, 200 square foot space.

And some people are able to find the capital and to do it to make their Dream Come True.

I'm going to go over other alternatives that are less costly or require less capital.

So this is my cafe that I sold last year, Cafe Stems.

The Burmese tea leaf salad, 1 of everyone's favorite.

We're the only cafe to sell it in all of San Diego.

This is a restaurant, so the restaurant that I built was about $120, 000.

I did a build 3 years ago in downtown San Diego that sat about 35 people, and this is a $1.4 million build.

So you can see the disparity and the costs are endless.

I mean you can go from 1 end to another, but this is a very, this is a ramen restaurant, 1 of them I built in San Diego so it cranks out a lot of revenue every month, but you know the build was definitely very complicated and expensive and this 1 took close to 8 months to build.

Generally like I say some areas don't support a vegan only option.

You know, you have to have maybe a vegetarian option, you have to incorporate ethnic foods.

So like I say, you have to test your market in order to get that information.

And once you can refine, you may have to refine the process as you go along too.

You may open, you know, vegetarian but you may be able to narrow down to vegan options or vegan food only.

So you have several options as to where to get your information from.

You can Google Maps to find out traffic times.

Your local chamber of commerce has information.

And also, what I tell people now, there's 2 websites you might want to write down if you're ever interested in purchasing a space, bizben.com and bizbuysell.com.

I use BizBen quite a bit as a real estate broker.

So if I have many clients who sell restaurants, I post it up there.

And my clients who want to buy a restaurant, I search for property on bizben.com.

I'll show you an example of the listing here.

So this is 1 of my listings that I just sold actually last week at closed escrow.

The Recipe To Starting a Food Business

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