ha my thoughts exactly, almost word for word.I think the fact that they ‘plan’ to open 12 to 15 restaurants over the next five years says it all - no idea!
While I support the other things you say and am a Ramsey supporter who got to call him 2 years ago and proclaim my debt free status, I disagree with you assertation about the failure rate of restaurants. There has been some study into some of the failure claims and it shows that much of the rates we’ve come to quote are at best rumors. These rumors hurt our industry and make credit, loans and investment in restaurants scarce. Its up to restaurantuers to correct this image. posted are some interesting articles on this issue, especially the peer reviewed OSU study.The new american dream…borrow, borrow, borrow…
And people wonder why 3 out of 5 restaurants fail in the first five years. If people would use a little common $en$e.
www.daveramsey.com
Kris
the last time I looked 3 out of 5 was not 90%!Kris:
While I support the other things you say and am a Ramsey supporter who got to call him 2 years ago and proclaim my debt free status, I disagree with you assertation about the failure rate of restaurants. There has been some study into some of the failure claims and it shows that much of the rates we’ve come to quote are at best rumors. These rumors hurt our industry and make credit, loans and investment in restaurants scarce. Its up to restaurantuers to correct this image. posted are some interesting articles on this issue, especially the peer reviewed OSU study.The new american dream…borrow, borrow, borrow…
And people wonder why 3 out of 5 restaurants fail in the first five years. If people would use a little common $en$e.
www.daveramsey.com
Kris
http://www.businessweek.com/smallbiz/co … page_2.htm
http://www.restaurantowner.com/public/302.cfm
http://researchnews.osu.edu/archive/restfail.htm
I think we can find statistics and articles all over the place to sit on either side of the fence. In my own experience of being open 15 years I used a statistic I find to be true. We see restaurants come and go all the time in our market. I see people here and in other forums come and go all the time as well. The common thread between those I have encountered is money. Not having enough of it. Overhead can sukk you dry.Its up to restaurantuers to correct this image. posted are some interesting articles on this issue, especially the peer reviewed OSU study.
Amen Kris. Heavy borrowing to open my first location is one of my biggest regrets. I had the money to do it all cash, but I wanted to keep it invested and borrow to open the store. That significantly increased my stress level for the first three years, and significantly decreased my cash flow.but the greatest lesson I have learned if I had do it all over again is I would not borrow money to do it. It would substatially decrease the stress and increase the success not only for my situation but those I have come to meet all these years.