April 9, 2020
People Who SHOULDN’T Start A Restaurant (is this YOU?) | How To Open And Run A Restaurant 2019

People Who SHOULDN’T Start A Restaurant (is this YOU?) | How To Open And Run A Restaurant 2019


Hey guys, my name is Wilson. Today I’m going to share with you a story,
a story of how I get tons of people asking me how do they start their restaurant? And throughout the hundreds of emails that
I’ve received, I’ve finalized the top four reasons why someone should not jump into the
restaurant business because they’re basically setting themselves up for failure. So many of us see opportunity in restaurant
because of the fact that we can visually see it. We can see that there are tons of lineup. We can see opportunities, we can see that
we can do something about it, which is a reason why so many people jump into food and beverage
as their first try for business. And when that’s the case, that’s the reason
why more than 80% of food and beverage fail within the first year. Today, I’m going to be sharing with you that
the four traits that if you fall into any of these four traits, you better either tweak
that and change that mentality or you may want to consider other business modules. Without further ado, let’s dive right in. The number one mindset that you shouldn’t
have if you want to start a successful restaurant is to get rich quick. So many people ask me how do I make my money
back within the first year? How do I make my money back within the first
two years? I’m telling you that if you want to get rich
quick, this is not a model for you because we’re the food and beverage initially. We’re talking about anywhere from 5% to 15%
margins. And what that means is that it takes a few
years before you can recoup your investment and before you can start being profitable. Food and beverage industry is all about a
volume gain. The more people you serve, the more volume
you get, and the more profitable you become. And it takes a lot of time to build this loyal
base of customers. So if you’re in the mindset of wanting to
create something that gets you rich real quick, unfortunately food and beverage models are
not for you. So on the other hand, if you want to create
something that gives you longevity, something that has a little bit more stable and something
that you can serve to the world, food and beverage restaurant may be something you want
to consider. The second mindset that you cannot have if
you want to start a successful restaurant is not passionate about customer service. What I mean by that is if you don’t like customer
interaction, if you don’t like serving people, unfortunately the food and beverage restaurant
is not for you. Why is that the case? It is because on a day to day basis, unfortunately
the nature of what we do is customer service. We need to make our customers feel at home. This is something that they feel comfortable
around, they feel included, they feel belonged, and when they’re able to feel belonged, that’s
when you have a loyal customer. And when you have a loyal customers, you don’t
need to worry about your competitors. This is how customers, and this is how the
restaurants become successful. It is through one customer at a time, building
that loyal customer one at a time. So if you don’t like dealing with negative
people, if you don’t like dealing with people, that gives you nonsense, unfortunately in
the food and beverage world, can we have a lot of people like that. So you need to be super, super passionate
about customer service and understanding that this is the essence and is critical for your
success when it comes to food and beverage restaurant. So if you do have passion about customer service
or if you do not have the kind of passion about customer service, you should really
reconsider whether food and beverage restaurant and this industry is for you or not. For example, there’s this one restaurant I’m
always go to for the last five years. They don’t serve the best food, nor are they
the cheapest. The only reason why is because they always
address me by the first name, because they care about me. And because I feel belonged. I talk with the restaurant owner on a regular
basis and he shares with me about his philosophy in running his business is to always make
sure that they serve the customers right because they deserve to be served right. They paid for that experience and it is his
mission to make sure that everyone that comes into a restaurant, whether they like it or
not, they get the best customer service ever. And by doing that I can see that passion in
his eyes and that’s part of the reason why he is super successful and that’s why they
have lined up out the door all the time. And majority of these people are loyal customers,
repeat customers and that’s exactly what you want when you’re in the food and beverage
world. The third mindset that you cannot have if
you want to be in this restaurant world is working long hours. What I mean by that is you need to be ready
to work those 10, 15 hour days in your food and beverage restaurant. It is because that’s just the nature of this
business. If you are wanting that 9:00 to 5:00 mentality,
if you think that you’re off just after eight hours, unfortunately this is not a model for
you. If you’re looking for that passive income,
passive investment, this is not for you because in the food and beverage world you are always
in, putting out fires, machine malfunction, customer problems, HR problem, training problem,
marketing problems. All these problems always comes back down
to shoulders, which is a reason why you need to be able to build a team, a team of all
star people who can take care of these things for you, people who care about your business,
people who have common sense. This takes months, if not years, to create. It takes a lot of passion and it takes a lot
of time to nurture this group of people so then that way you can actually build a well
oiled machine that can run by itself so that way you can take care of the people you love. All this takes the times of time. So if you’re looking for that quick buck,
if you’re looking for something that’s a 9:00 to 5:00, if you’re looking for that passive
income, unfortunately food and beverage model is not for you. The fourth mindset that you cannot have if
you want to build a successful restaurant business is not listening. What I mean by that is this is very different
from the second point of customer service. Not listening, not wanting to interact with
people takes your eyes and ears away from the front lines. And what I mean by that is if you’re not willing
to listen to what your customers have to say, you cannot understand and know where to improve
your offerings, whether it be the quality of your products or whether it be the service
or whether it be the ambiance or whether it be any other touch points that your customers
are experiencing and they want to express that. If you’re not willing to listen, and if you’re
not willing to investigate and understand how your customers feedbacks are, you would
not know what levers to pull. You will not know how to improve. And if you’re not improving, unfortunately
in the food and beverage world, then you are on the decline. And that new restaurant, that a new competitor
would come around the block and they would replace you. The would steal your loyal followings from
you. Another point is if you don’t communicate,
and if you don’t listen, if you don’t ask, if you don’t talk to your customers, you would
never be able to build that loyal fan base. They will feel as belonged. They won’t feel that they know the restaurant
owner. They won’t feel that they are inclusive into
this community. So if you want to build a successful restaurant,
you’ve got to listen. You’ve got to interact with your front lines. First it is to understand how you can improve. And second it is to build that loyal following. So if you don’t like talking to people, if
you don’t think that their opinion really matters, if you don’t want to build that relationship,
then unfortunately this becomes a very, very difficult uphill battle for you because you
don’t have the firsthand experience. Your gut’s not telling you the right thing
because you’re not listening. So if you’re not that type of people, really
do reconsider whether food and beverage industry is for you or not. And to give you an example, at 720 Sweets,
our ice cream shops, the only reason why we know what flavors we create and what offerings
we need to improve on is by listening to our customers. We always talk to our customers and we always
interact with them, whether it be in person or whether it be on Instagram and on Facebook. We understand what exactly they’re looking
for. And in turn we try our best to cater to their
needs. This is why we have been staying relevant
the last five years. And this is the reason why we’re able to have
all these types of collaborations with big brands like Nespresso, all because of the
fact that we’re willing to listen. So if you want to be successful in this industry,
make sure you listen and make sure you interact with your customers. So there you go. If you are any of these four types of people,
the type that want to get rich quick, that wants the return within that first year, or
if you’re not passionate about the customer service industry, if you don’t like serving
people, if you don’t like making them feel happy, if you don’t like working long hours,
you want your 9:00 to 5:00, you want to passively invest or lastly, if you don’t like listening,
if you don’t like interacting with your customers, then unfortunately food and beverage business
is not for them. However, if you are any of those, then you
are going to be super, super successful in this industry because these are the things
that will make a restaurateur super successful. If you want to learn more about how to build
a successful seven figure business, check out my Ultimate Food and Beverage Course below. This is something that I’ve learned in the
last 10 years and I’m putting it all into this course. Anywhere from negotiating free rent to getting
into the minds of your customer and offering them exactly what they want, to creating that
first 1,000 loyal fans, that community now will always buy from you, all that into the
restaurant link below. So I really, really hope you find value in
this video. If you want to learn more, once again, check
out the link below. Otherwise, smash the like button. Subscribe along the journey as I bring to
you much more value and much more content in the food and beverage world. Otherwise, I’ll see you guys in the next video.

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