Restaurants and Institutions

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If You Don't Know Where You're Going, You'll Probably End Up Somewhere Else
January 22, 2007

January 22, 2007
Now that we know where we’ve been, where are we going?

First up on the multipage to-do list is choosing the general contractor so we can begin the build-out. Later this week, I will have the finalized bids in from the last two firms so my architect Kelly Edwards and I can make a decision. Price is only one of the issues that needs to taken under consideration when deciding on a general contractor. A few thoughts on this:

• You need a specialist. Find a company that specializes in restaurants. As the saying goes, you don't hire a proctologist to do brain surgery, even though both are doctors.
• Ask, ask, ask. The way I found contractors was through referrals from people I trust. My architect, equipment- and-design firms and other restaurateurs all came up with basically the same three names. And as with hiring employees, check references. Visit their worksites, see the finished work and talk with former and current clients.
• Find out about their availability. None of this will do you any good if they don’t have the time to devote to your project.

I’ve spent a lot of time interviewing and tracking down various subcontractors that I want to have control over for my phone system, point-of-sale system, national online-reservation and front-of-house management system, various smallware pieces and the enclosed wine-by-the-glass system. Now we’re ready to plug and go. Once the general contractor is chosen, I’ll hand them the names of those subcontractors so he can contact them and schedule them appropriately.

Next, but no less important, is to execute the financing. Once the final bids are in and the equipment, furniture and fixture budget is finalized, we go back to the bank to hopefully revise the loan amount and then close on it. My banker knows where we are and what the preliminary numbers look like, but we both need to see a firm bid from the contractor before we complete the transaction. Additionally, I am checking on equipment financing to see if that would be advantageous. Let’s just say I’ve had a few sleepless nights and have gone through quite a few bottles of generic antacid tablets.

Now it’s a juggling contest: juggling equipment, furniture and fixture purchases, build-out timing, cash flow, advertising/marketing, hiring, training manuals, finalizing menus and, oh yeah, can’t forget about time with my wife. Being the Type A personality that I am, I want to have 90% of the decisions made and down on paper so when the time comes, I can concentrate on cooking and training, not on color swatches. In that regard, we are trying to finalize everything from what chairs to buy to the look and specifics of the food and beverage menus.

That’s an overview of the next five months or so. I guess this is really going to happen. It better--I already have reservations for two large parties in 2007 after we are scheduled to open!

And the journey continues.

Cheers!
Stu

* “If You Don't Know Where You're Going, You'll Probably End Up Somewhere Else” by David Campbell (published by the Thomas More Association, reissued 1990)

Posted by Stu Stein on January 22, 2007 | Comments (0)