 Hey guys, welcome back for another week of episode. This week we're going to be talking about how do you set up your restaurant business for success and what I mean by that is we're going to dive in deep to the four types of business models that's going to be making you a tons of money that would fit into your specific lifestyle. Whether you want to build an ice cream shop or bubble tea or bami or burger joint or you just have an amazing recipe that you want to bring to the world, you need to be able to pay attention into this lesson because all these different food concepts have its pros, its cons and also the amount of money that it's going to be able to make from them which is the reason why we are shooting this video to set you up for success. We're going to be talking about the different types of risk tolerance, the investment level and also the amount of work that needs to be done. For me when I first started out my ice cream business I never even thought the amount of work and money that I need to be able to put in in order for me to reap what I was able to reap which is the reason why this video is going to help you out. So make sure you guys stay till the end, download the resources and the links below. Let's dive right in. The first type of food concept that we're going to be talking about is the fast concept type. We're talking about something like an ice cream shop, a dessert shop or something that's more of a specialty. Coffee shop, these are the fast concept types which has an average order value of roughly six bucks. We're talking about five to seven dollars so we take an average of six. With typical space we're looking at around 300 to 500 square foot place, not too big but just enough for you to be able to operate. You need to situate these locations at high traffic places because of the volume that you need in order for you to be able to generate the profit that you're looking for and the amount of servers and talent that you need at the space is quite limited as well so you need little to no server, maybe one or two baristas and that's about it. Now in terms of projection of how much you're going to be able to make at a location like this, given the fact of a six dollar average for an item you're looking at around and aiming at 300 different orders per day that itself would net you around fifty thousand dollars per month and that itself is an amazing business if you're looking for something as less in stress, less in investment and less in workload. For example our ice cream shop 720 suites is a fast concept restaurant. We serve ice cream, we serve bubble tea and these are really high-generating items that we have and it's for us it only took us three months in order for us to be able to open up the shop. All the equipment that we have was the ice cream machine we have under the counter cooler and that's about it so for us the investment to open up this place was only a hundred grand and in turn actually I talked about it in this video how we made more than thirty six thousand dollars in our first month and this itself is an amazing location for someone that wants something simple something simple for us we only have around five employees per location and that's on a rotating basis and on really really busy days we have three people but aside from that to manage that shop is completely hands off for me which is the reason why I love this model because it's profitable when you can make it profitable when you look at all the different numbers and when you can actually control them and know what to do with them. Now we're going to be diving into the pros of running a fast concept shop we're talking about a low investment item so at then a day because you have such a small place the amount of equipment that you need to purchase is completely like bare bone minimums okay you're not looking at a hooded fan you're not looking at a deep fryer a full on scale kitchen whatsoever the investment is relatively lower the setup is a lot easier as well so that means that city permits and everything is going to be a lot easier for you to get and also the amount of labor you need is substantially lower than a full service place which is why these types of concepts are so so so popular because of the fact that so hard to be able to find talent out there these are the pros now the cons of running a business like that is that it has limited amount of offering that you you have for your customers and in turn the revenue that you're able to generate is substantially lower than if you were able to offer food and different items as well so these are the pros and cons of running a fast concept place the second type of food concept that you're going to be looking at is the fast food type and i'm talking about something like a donair something like a burger something like a bami these are food items that are quick grab and go so average prices we're looking at is around eight to fifteen bucks so we're going to put it at eleven dollars at our average pricing for projections so for a place like this we're looking at around 500 to 900 square feet you don't need that big of a space so we actually don't need front of the house staffing it as well because we're small space like that people are used to grabbing go they're not expecting full service which is very very beneficial for you because it keeps the cost much lower for a projection like this we're looking at once again eleven dollars average pricing that nets around 2750 dollars at 250 servings per day okay so in a month you're going to be able to generate around 77 thousand dollars for a concept like this not too shabby once again this is a little bit better than the fast concept places now some of the pros of a fast concept place is that the investment is also relatively relatively lower than comparing to a full service diner whatsoever because of the fact that the equipment you need is once again a little bit less the skill level to produce these items is once again a lot lower than a full service diner also the labor issue is a lot less and on top of that the the revenue that it can actually potentially bring in is a little bit higher than a fast concept place now the cons of running a fast food joint is the fact that the equipment is a little bit higher in costing the investment is a little bit higher and on top of that you're going to be able to cap your revenue based upon the offering that you're offering so at 11 bucks you can't really offer too much at this different location right so for example if you look at a donair shop you know they can only offer so much people only go in grab and go for lunch they go in for a quick dinner that itself is limiting the different revenue streams that they can generate the third type of restaurant that you can build is the casual dining so for casual dining you do need front of the house staffing you do need a little bit more service so an average pricing we're looking at around 16 dollars so there's going to be drinks involved there's going to be desserts involved that's the type of places that people actually go in and it's like a hole in the wall shop that you're looking at grandma's recipe maybe spaghetti that you're creating so these are examples of the casual dining experience so for a place like this you're looking at roughly around a thousand square that gives people enough place to actually soak in the ambience of the place and actually enjoy the food that you're offering so the location of a casual dining it could be at a high traffic location or it could be a destination mainly because people don't mind driving to a specific place just so then they can have like the best spaghetti in town so at the end of the day you can actually choose a location that's a little bit further from high traffic now for projection in terms of how much money can you make at a casual dining we're looking at roughly 3200 bucks per month given an average value of 16 dollars per meal and on a monthly basis you're looking at roughly 90 000 dollars so this is your million dollar business if you're looking to create a business a food and beverage establishment that's going to cost a seven-maker figure mark a casual dining experience would be able to help you get there now some of the pros of running casual dining first of all it is super super fulfilling because now you can actually create your grandma's recipe and you can actually bring it to the world and for everyone to enjoy this recipe and it gives you a lot more creativity for people to consume your offering also the pros is that the revenue that you're able to generate is much more this is your seven figure business and that's amazing however the cons of running a casual dining experience is the fact that the investment once again is going to be much higher than a fast concept fast food the equipment would be needed that you need to run a place like that as much more the city permits you need as well the labor level that you need to operate a joint like that is going to be higher because when you make a recipe a dish there's much more variables that can go raw and you need to buy much more cost of good souls ingredients and you need to make sure you manage them properly if you don't manage them properly even though you're making a million dollars you could still be making way less than someone that's running a fast concept shop that's because you don't control your cost of good souls properly once again these are the pros and cons I really hope you can make yourself a million dollars with this casual dining experience last but not least the number four type is the full service dining experience we're talking about this is like full on front of the house tapping you have food service you have wine you have dessert everything people are coming to greet you by your first name average item cost is around 50 bucks for a location like this you need it to be a bigger place we're talking about 1500 square foot to three thousand dollar three thousand square foot now the average thing cost we're looking at around $50 because once again there's wine this full meal and appetizer dessert everything okay now for an average daily sales we're looking around $6500 and every month you're looking at 180 thousand dollars in terms of revenue so it is going to be like a much much bigger in terms of revenue wise however it requires a lot more intricate systems that needs to be put in place and I'm going to be going into the pros and cons of this for you although the revenue is there just keep in mind the one thing this may not be something that you are signing up for just because the revenue is there does not mean the stress level is worth it does not mean the risk level is worth it does not mean the work level is worth it which is a reason why I always always stay away from concepts like this but nonetheless I feel like that I should cover it in this video for you so here you go the pros and cons of running a fine dining experience one of of course the pros of running fine dining experiences that you have your creation out there for the world to experience yeah you're basically creating art for your customers and that fulfillment is definitely irreplaceable okay now also if you can actually manage your restaurant properly this fine dining experience properly and you have lineups out the door all the time the revenue the finance reward that is going to give you it's much much higher we're talking about over millions of dollars in terms of revenues now on the flip side the cons the investment to create a fine dining experience is well over a million dollars and I can guarantee that because we're talking about a full-on ambience a full-on makeover of a unit we're talking about alcohol license we're talking about full on kitchen with basically our grease trap all the things that you may need to run a fine dining experience and on top of that the labor that is involved to run a fine dining experience is just out of the world we're talking about like you need to give them way proper training they need to make sure that they greet their guests accordingly the expectation is much much higher for people that are serving and also the food that needs to come out so it's a lot of people have trouble finding talent to create good food for them and on top of that controlling your food costs to make sure that you have a business that is profitable that's not making millions of dollars in revenue but not making you millions in profits so there you go the food money making models for your food and beverage shop I can't thank you enough for watching this video at this moment however there's three more things you want to consider when choosing the vehicle of your choice to bring you to your destination at the end of the day just because someone else is running a bubble tea joint that is super successful doesn't mean it's suitable for you that if you have dreams of bringing your grandma's recipe and showing it to the world then that's not the place for you that's not the model you want to choose you want to choose a casual dining experience that you can provide your customers that's the type of model now I'm going to be covering the three different elements to consider when choosing the different models that you would be best suitable for your needs okay the number one thing that you want to consider is the stress level are you are you signing up for being super stressed out every single day for years to come or do you want to just have a coffee shop that you would want to go to you don't mind it not making that much money to begin with and you have time to spend with it and you meet all the customers there and you just have this really homey place it's really coming down to your stress level that you want to take on for some people they like that chaotic environment they like being in that stressful environment because that's how they thrive so with different types of business models they have different types of stress levels so know what you're signing up for before you choose that type of vehicle the second element to consider is the risk level we're talking about if you're if you're wanting to open a fine dining experience full on with alcohol license you're talking about over millions of dollars in investment are you up for that type of risk are you going to put your house on refinance just so then that way you can create this fine dining experience with no experience or do you have a thousand a hundred thousand dollars same and you just want something that is your own you want to escape your nine to five and you just want to have a coffee shop that you feel good about and that you can actually just be there and you're completely fine with it well the risk level of a hundred thousand dollar investment and a million dollar investment that's completely different so at the end of the day consider the risk level for your needs because everyone's needs are different the third type of element to consider is the work level at the end of the day with you in the food and beverage industry work level is always going to be like crazy for those first six months you're going to be working in the business all day long until you have a process in place until you figured out how to hire people that can help you out so after the fact that you are working there for six months everything is really on automation do you want to continue to be working in your business do you want to be in the kitchen cooking up your grandma's recipe and showing the world how great it is that's a casual dining experience or do you want to just like hey you know what this is an investment i have a bubble tea shop i hired people to be able to run it for me on automation and i'm just going to go there once a week just like check it up that's for me is the work level that i chose which is reason why i chose a fast concept because it's very easy for me to be able to monitor the type of work and the type of quality that people are turning out and at the end of the day it really comes back down to your work level that you're choosing to meet your needs so there you go the four different money making models to follow when choosing your food and beverage concept at the end of the day just because someone is successful with a bubble tea shop doesn't mean it suits your needs choose the one vehicle that brings you to your destination choose the one that is the most fitting for you there's three things to consider when choosing it we're talking about the risk level the work level and the stress level do not do not be tempted to follow what other people are doing choose one that is the most fitting for you i really hope you find success in this whole journey of opening up your own restaurant your own food and beverage concept if you guys need more resources i've actually compiled everything that i've learned throughout my past five years of running my ice cream chain all into this model from choosing the type of business to actually doing all the margins all the math behind it to finding your customers to menu designs to finding talent to be able to work for you to all the marketing tactics that i've actually been able to use to grow my business all into this one website and link it is in the link below if you guys want to learn more about it check it in the link below and i'm going to be sharing a lot more goodies and nuggets with you otherwise subscribe to this channel because i'm going to be making much more of these videos comment below and tell me exactly what you want to create and support along the journey by smashing the like button otherwise i'll see you guys in the next video