Advantages and Disadvantages for a Restaurant Owner

Many people dream of owning their own restaurant. In addition to having the flexibility of working for yourself, a restaurant owner gets to be creative and see the direct fruits of the labor, as well as effectively creating a home away from home. However, there are several hardships involved in owning a restaurant, including the initial start up cost and subsequent stress.
  1. Advantage: Independence

    • One of the biggest advantages to owning a restaurant is being your own boss. In good times, this is a benefit, because you reap the profits of a well-established business. Restaurant owners also have a permanent establishment in addition to their home; while it may be an idealistic perspective on restaurant ownership, many owners do form close relationships with their customers and employees and thus almost make a home away from home.

    Advantage: Creativity

    • Many restaurant owners are chefs or cooks first, and thus owning a restaurant is a prime opportunity for them to show off their talents. A chef may open a restaurant because they feel they have an idea or talent that fits an unfilled niche in the community, or because they believe they can do a classic idea better. Additionally, there is the opportunity to be creative with the aesthetics of the dining area of the restaurant, such as decorating the walls or bar.

    Disadvantage: Start-up

    • One of the biggest hurdles to clear in restaurant ownership is the initial start-up costs. Before the doors even open, a restaurant owner must put money down for the space, furniture, food and employees. It can also be very difficult to start a new restaurant in an established area; a restaurant owner must think of ways to aggressively advertise and market their restaurant in order to attract customers. Restaurants generally have very low profit margins, thus a constant flow of customers is key to survival.

    Disadvantage: Complexities

    • There are several other complexities involved in owning a restaurant. Different states have different regulations when it comes to necessary licenses, including a liquor license and certifying that the kitchen is not a fire hazard. There is always the risk of a bad review or a law suit from a customer who gets sick, as well as having to manage potential tension from the wait staff and kitchen with regards to pay.

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