I WANT TO OPEN MY OWN BBQ JOINT

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I've been a mechanical engineer for the last 7 years. I've worked for Caterpillar, Cummins, and most recently Harman International (the company that makes audio systems like JBL and Harman/Kardon). I've been laid-off from each of these places due to "down-sizing". I'm sick and tired of working for companies that suck your talents from you and then kick you to the curb once you've made them millions of dollars!

Since I'm fed up with corporate bullshat, I've decided to open my own BBQ joint. The problem is this...I don't know the first thing about opening a business. Can anyone give me some tips on how to get started? I know the obvious things like getting food suppliers and a building with a good location, but what I don't know is how to get the business "off the ground" with health requirements, accounting, taxes, and all the things that go along with the business side of it. I can smoke meat, and I can sell pretty good. I just don't know the business side of owning your own BBQ joint.

I'm in Greenwood, IN (south side of Indianapolis). I would greatly appriciate it if you could give me some pointers on how to make my dream of "Simbo's BBQ Joint" a reality!

Happy 4th of July!
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Most states have some type of Small Business office run by the state itself. They usually offer plenty of information, guidelines, classes, and even loans/grants to help small businesses get off the ground. A quick check of the internet shows the Indiana Small Business Development Center as an available resource. I'd give them a call to get started.
 
I don't want to change your mind, but you should be aware that restaurants have a very high failure rate. Probably less than half make it past the two-year point. The two biggest problems in opening a restaurant are lack of capital and lack of capital. It takes time to build up a customer base, so you have to ask yourself: can you get the money to finance a restaurant AND on top of that deal with the likelihood of losing money for at least 6-12 months?

One option you might want to consider is catering first before you open a restaurant. I know a guy who makes a very good living catering Q for weddings, family reunions, company picnics and so forth. That is all he does--no restaurant. The startup costs are a lot less getting started this way, and if you can build up a good catering business, it can carry the restaurant when you start it a few years down the road. If you are already a successful backyard smoker, it is a much shorter leap from there to caterer, as compared with the jump from backyard smoker to restaurant owner.
 
Jason,

I'll second what David says, and further state that I believe the failure rate for barbecue restaurants is higher than for other restaurant types (my observation - no statistics to back it up).

I think you may have better success by catering picnics, outings, tournaments, etc. I've been talking recently with Davy Dawg in Coloma, MI about his catering operation. He's been doing it two years on word of mouth and is kept really busy. I don't know if you can make a full time living doing it.

Have you considered a career in the commercial nuclear business? We are looking at tremendous growth and severe shortages of qualified workers. We blame global warming - nukes emit minimal greenhouse gases.

Jim
 
Jason,

I think Scott and David make some excellent observations. One other suggestion is to actually work in the industry before taking the plunge. There's only so much you can learn from reading and talking to others. If you take a position at a restaurant, any restaurant, you'll immerse yourself in the business and learn things you can't get from a book. Spend 6 months or so working in the kitchen and waiting tables and then ask yourself if this is the business you want to be in. It can be done, but as it's been pointed out; it takes a lot of hard work and funding to be successful. I wish you success.

Paul
 
I love the restaurant business. Nothing to me is quite as satisfying.

Though it's quite true that lack of capital can be a major problem I think it is oversold as the prblem. My experience suggests that it is often other reasons, alone or in combination with each other, with or without the undercapitalization issue, that cause or prompt a restaurant not to make it. These issues: bad lease terms; wrong food in the wrong market; lack of market undertanding; poor location; improper or incorrect pricing; incorrect or improper food use and/or bad menu design in terms of food use; poor staff training/oversight; bad staffing choices in terms of people; bad staffing choices in terms of number. Many of these issues can lead directly to a capital drain but were the issue(s) not present in the restaurant in question then the capital needed to combat the problem(s) would not have been spent.

Capital is needed to launch, of course, and to sustain operations as biz builds but far too often I have seen lack of capital alone blamed for a restaurant's failure when, truth be told, capital was spent with the effect of sustaining the problem(s) rather than anyone having the wherewithal to see and then address the issues directly.

Some of these problems can (and must) be dealt with directly if they become reality. Some must not ever be present, especially during the opening months, as capitalization, virtually irrespective of dollar amount, won't do it. The restaurant sinks. Money only prolongs the pain.
 
Another idea to get started might be a small vending trailer. There are several in our area that do good food and are quite successful. If you can work a deal with a local grocery in their parking lot, all the better. This way, you cook as much as you want without the hassle of dealing with employees and other full-blown restaurant hassles. Your hours are up to you - cook all you want, then just close when you sell out.

Then, if you still want to take the plunge into a full blown restaurant, the vending trailer can always be used for catering and cooking events on-site.

Sometime when Robert and I retire, that's what we'd like to do - get a toy hauler, travel around the country, set up in a campground or other recreational area, cook up a batch, sell it to our camping neighbors, and continue on our merry way. We know one couple that's been doing that for several years and just has an absolute blast doing it. It funds their travels!

Keri C
 
one thing missed is what the state and local
gov want you to carry such as workmans comp
and local business taxes.
i opened my own auto repair shop and was stunned
at all the hidden costs.
also you better have at minimum, 6 months or
more of running capital.
also the hours will be way more than you think.
but then again, nothing ventured, nothing gained.
good luck!!
 
Have you thought about franchising? Not with a big multi-chain lousy food type of place, but with a small bbq place looking to stretch its legs. They have already been through the process and have a vested interest in you succeeding.

I know of 1 small place looking to franchise, and I can stand behind their food 100% (and they placed in this years Memphis in May, their first year in it).
 
Thanks for all the great insight. I never thought of franchising with another small BBQ joint...that's a great idea. I had a local joint cater my brother's wedding, and in the process I got to know the guy pretty well. He might be my ticket into the biz. He's a small, one store operation who might be interested in branching out.

One thing I'm looking for help on is where to get things like the rubs and sauces. I have my own blends (like most Q'ers), but I buy bottles of spice at the local grocery store...does anyone know if I could get my blend bought by the pound (I'm sure I can get each spice by the pound, but I'd like to get it pre-mixed if possible)? Are there any companies that will make your blend in restaraunt volumes?

Thanks again for all the info. I'll keep you guys updated on how things are going.

Jason
 
Wouldn't it be cheaper and easier to just buy spices in quantity and blend your own ? There are lots of great sources for cheap bulk ingredients.
 
Plenty of BBQ places have opened and closed in indy since you likely started even thinking about your idea - Dicks, Smokeybones, et. al. Many were also located in high-traffic areas. The market is there for the right type of place - good location, good carryout business, etc.

I'd offer some advice, but if I had the answers I'd open a place myself.
 
I also want my own bbq joint but everything is so expensive we have a tough time jumping in. There is a fairly new place that opened up around here that has excellent food. I couldnt count all the help they had there. Looked like about 30 people if not more. How in the world can you make money with that kind of overhead? They use 2 huge FE pellet cookers. I dont know if they were fe500s or not but they cook good Q. That has to be high dollar cooking.
I have read it here before and its true that it takes more then just good food to make it work. I still want to give it a try someday. Kevin Kruger as my partner!
 
Jason-- Yes, there are companies that will make your blends for you. They are not likely to contract for small quantities--you mightbe looking at a half- to a full truck-load at minimum (maybe not)--but they're out there. In the beginning you'd have to make your own, unless you were so flush with capital that it was a non-issue. John is right, though; bulk spices are certainly available, as is bulk ingredients for sauces (which, mostly, freeze well, so prepping in bulk is possible).

Dale-- Could happen! Funny--I had a potential investor call me yesterday evening right when I got an email update to this thread. I've been eyeing a very nice space in the town in the county where I live. Beautiful, freestanding with lots of parking; nice bar area with an upstairs seating loft that overlooks it; open kitchen (unheard of around here!) with beaucoup prep areas and storage behind it; plenty of walk-in space. It opened last year about this time and, I think, lasted 8 months. Lots of capital (the biz owner owns one of the most successful restaurants around) but the execution wasn't right at all. It was Okeechobee's first fine dining spot. The food and liquor was priced too high for the area, the menu didn't make sense in concept, the food was very uneven, and the service was what you'd find at an Applebees or something. The problem in a nutshell, obviously, is that for the clientele that are unfamiliar with fine dining but are making the leap, 'things' need to feel different but better--much better; for those that are familiar, the expectations are fairly clear. The facility was perfect for the overarching concept, but they either somewhat or totally conformed to my post upthread, and failed to have or put the necessary ducks in a row pre-opening, and failed to immediately address these issues post-opening when they were glaring--mostly because, I'd surmise from what I could see, they didn't recognize the source of the problems in the first place.

Anyway, the building was built specifically for the restaurant but not owned by the restaurant owner. I don't think anything is happening with the space--yet--so, we'll see. But, as I told the investor, the way for chef/owners to make serious money is to open a second place! Okee has one Q joint in a not-good locaton with who-knows food (been ages since I've been there but I doubt it's any better). Or, perhaps, a 'summer home' in Kentucky?
 
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Greg M.:
Plenty of BBQ places have opened and closed in indy since you likely started even thinking about your idea - Dicks, Smokeybones, et. al. </div></BLOCKQUOTE>

I would hardly call Smokeybones "BBQ".
 
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">I would hardly call Smokeybones "BBQ". </div></BLOCKQUOTE>

I never ate there, but evidently plenty of people shared your sentiment.
 
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Greg M.:
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">I would hardly call Smokeybones "BBQ". </div></BLOCKQUOTE>

I never ate there, but evidently plenty of people shared your sentiment. </div></BLOCKQUOTE>
Frankly, to most consumers Smokey Bones is barbecue, and probably better barbecue than they get elsewhere.

I know their menu includes a lot of grilled and fried foods, but that just goes to show that a diverse menu is needed to attract a viable customer base. The sad fact is, if you expect to make it by selling only authentic pit barbecue, many people will not eat at your restaurant.
 
I've eaten there three times. Only got "bbq" foods. Neither my wife nor I can classify any of their foods as BBQ, let alone Authentic Pit BBQ.

It was truly awful. All three times (I'm a slow learner).
 
I recently judged a BBQ contest (Murray KY) where Lynn Bruce was the Rep. After the Superman Oath, he told the new judges that if they continued judging KCBS BBQ they would not be able to enjoy eating in BBQ restaurants.

When asked where the best BBQ in St Louis is, I have to respond "In my backyard"
 
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