Pros and cons of opening a cafe after retirement

[Anonymous]

Anonymous wrote:Good cafes are fun and relaxing to spend time in, but it takes a ton of work and commitment behind the scenes to create that atmosphere. It’s sort of like going on vacation and thinking you want to move to that place because everything’s so great there.

+1

A lot of hard work goes into creating a pleasant experience and meal for customers. It’s also rarely a high-margin business, and food, staff salaries, rent, utilities, cleaning (daily and specialty kitchen services), insurance, etc, are all very expensive currently.

Tastes also change on a whim, and knowing your market is crucial.

If you don’t have any restaurant experience already, why not work part-time at one on weekends (kitchen, waitstaff, hosting, and so on) and see what you think?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Could you work for a cafe owner first and see how things go

This is the best advice. Find out what it takes to run a cafe (time, effort, costs), then create a business plan on where to open a cafe.

You can do everything right but the wrong location or catering to the wrong clientele will see you in BK court.

For instance, having a cafe playing Honky Tonk & Country music in a predominately Black precinct probably isn’t going to do that well. You will need to switch to Jazz or try a more rural area near the tobacco fields and hope enough people show up to keep you in business.

You also have to look at competition. A generic cafe near 10 others means you need something to stand out.

I recommend watching several episodes of Bar Rescue. You will be amazed at how many people opened a bar not knowing what they were getting into. Some of those people aren’t qualified to run a lemonade stand.

What a lot of stereotypes in so few words.

[Anonymous]

I just sold my business at age 60 because I'm too damn old to work that hard. Owning a business means working 24/7 and spending 3-5 years just building it intensely without seeing a lot of profit. And with a cafe, there will be a bit of physical labor - actually, a lot - as well. All it takes is one bad back injury or knee injury and you're SOL because for at least a few years you're going to need to do a lot of the labor yourself, at least as backup. So, it's a terrible idea.

[Anonymous]

Anonymous wrote:Don't open a cafe. Open a business that people need and that makes money. Like a laundromat or similar. Boring and dependable.

Who needs a laundry? People have washing machines.

[Anonymous]

are you in a British novel?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Is it for someone who has no experience of running or working in a small business?

I feel like there are more interesting ways to set money on fire.

This. Why don't you come to work with me and see how we can make our cafe successful. I have been in service industry since 1997. My current employer has been in the business for 20 years to the day. Come help us out with your ideas and work ethic without having to put any money into the business.
I never wanted to open a restaurant and for many reason. I have friends and co-workers who did and every single one of them ended up closing. 2020 took out a lot of them. One has been opened now for over a year, but my friend doesn't have to pay rent or it's a very small %.
Our brunch sales were $6k at 2 pm. Half of this goes to pay salaries for ca 20 people all rolling in and out at different times depending how busy it is. Payroll is the biggest expense right now, then food, then rent.
I don't know the numbers, but we are definitely running negative every month.

[Anonymous]

We have never had such a low quality employees like we have now in my nearly three decades in business. Half the resumes we read are complete garbage with people switching jobs every few months.
The few we hired, only care about money. Example: they will pick up the singed check,but leave the checkbook on the table as if the new customer needs to put it back where it belongs. They are on the phones, horsing around, or disappearing to bathroom.
With $30-$40 an hour, we still can't find people who care to work.

[Anonymous]

There was a Slate article about a couple that tried this and it was predictably a disaster for them. They never had actually worked food service before.

https://slate.com/human-interest/2005/12/my-coffeehouse-nightmare.html

[Anonymous]

Echoing others so I won't repeat, but adding do you have experience with payroll, taxes, inventory, food vendors/delivery, franchise/lease agreements, and the like?

Plus these cutesie cafes are a dime a dozen around here. Theres like 5 of these mom&pop cafes in a 3 mile radius.

[Anonymous]

I consult with food businesses. I'd say you need a solid business plan and 1 year of capital.

Go to the cafes you like in town, the ones that align with your business plan as competitors. See if you can work there to check them out. If you like working there and it seems like a viable business, consider buying them out or making you partner.

Before you open your own cafe, do the research and run the numbers that the location can support another cafe. And really think about what makes you different

[Anonymous]

Oh my gosh, do not do this. The restaurant business is only for people who are really passionate about it. It's going to be a huge hassle, very expensive, and you will be lucky to break even.

-Worked in coffee shops/bars/restaurants for the better part of my twenties

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don't open a cafe. Open a business that people need and that makes money. Like a laundromat or similar. Boring and dependable.

Who needs a laundry? People have washing machines.

Not everyone has a washing machine

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Don't open a cafe. Open a business that people need and that makes money. Like a laundromat or similar. Boring and dependable.

Who needs a laundry? People have washing machines.

Not everyone has a washing machine

+2
Clearly, you've never set foot in low economic areas where many apartments and low income housing don't have washer/dryers (and the communal ones are frequently broken or always in-use).