How Much MONEY do Restaurants REALLY Make?

  Рет қаралды 228,475

Paul Reiser

Paul Reiser

Күн бұрын

Show this video at your next restaurant training meeting. Most people are surprised by the small amount of money left over after all the expenses are paid... especially the people who work in the restaurant! This video is a simple and fast explanation of what happens to the sales dollars that come into a restaurant.
#shorts #businessreal #restaurant

Пікірлер: 257
@therealpaulreiser
@therealpaulreiser Жыл бұрын
Full Video Here: kzfaq.info/get/bejne/fap5htZlyZ7HmXk.html
@3lokd633
@3lokd633 7 ай бұрын
Please provide a full video title name. Because we are unable to click on the link provided.
@therealpaulreiser
@therealpaulreiser 6 ай бұрын
@@3lokd633 Thanks for pointing that out. You can copy and paste the address if you like! I also added the link feature. This short is actually from a video about minimum wage, "Is $15 A Fair Minimum Wage?" I've connected to that video now. Thanks for letting me know.
@josephbeach6046
@josephbeach6046 Ай бұрын
You are incompetent
@private4929
@private4929 Жыл бұрын
I bought 12 acres opened a bbq restaurant, then opened a pizza restaurant on the land. Next a coffee shop, bar, sushi, wine bar, bonfire sitting areas, soccer fields, taco shop, and a few mini ponys. Profit is about 2.1 million a year. Took an investment of 80k with the owner financing on the land. About to sell after 8 years for 5.6M
@therealpaulreiser
@therealpaulreiser Жыл бұрын
That's awesome! I love to hear success stories! Are you selling the real estate separately, or are you keeping it and charging rent?
@private4929
@private4929 Жыл бұрын
@@therealpaulreiserselling the businesses as a portfolio but keeping the land and charging an agreed upon rent per establishment's location. Something i can pass on to for generational wealth.
@GeishaDoll
@GeishaDoll Жыл бұрын
Do you take mentee’s on board ever?
@abdulnasirbushra6049
@abdulnasirbushra6049 Жыл бұрын
Goddamn, well look at you Private Business Man
@therealpaulreiser
@therealpaulreiser Жыл бұрын
@@private4929 That's great news! When you said $5.6 million i was hoping that didn't include the land. Sounds like you made a great deal, congratulations!
@Simonofcalifornia
@Simonofcalifornia 7 ай бұрын
Don’t forget the credit card transaction fees that eat up to 3%
@flavioflax
@flavioflax 4 ай бұрын
charge that to the costumer?
@Simonofcalifornia
@Simonofcalifornia 4 ай бұрын
@@flavioflax it’s against the law in most states.
@rishabh_ar0ra
@rishabh_ar0ra 29 күн бұрын
That's why here in India we stop accepting credit cards. All people have online mobile applications to pay through UPI which takes 0% charge.
@omnomnomnomm
@omnomnomnomm 6 ай бұрын
sometimes i wonder how other competitors sell their products so cheaply (i own a small cafe), and turns out a lot of them cut their budget not from product quality, but from their employee's wage. like they paid the LEAST amount and i've been told to do it too but fuck it, my employees are great people and they deserve what they deserve. i don't mind "losing" a little money if it's for their wellbeing.
@isweatglitter5809
@isweatglitter5809 Жыл бұрын
Why is he crushing dreams lol
@salahali2904
@salahali2904 9 ай бұрын
😂
@fehresessee7900
@fehresessee7900 7 ай бұрын
if you want to take all expenses with 100 dollars yoy are true, but with second you will pay just 30 for food. cause one people can make like 500 dollars food for one hour.
@oliviaxx9022
@oliviaxx9022 Ай бұрын
you just gotta work hard for atleast a year or two on your own/a couple workers, then bring in more workers later on once you get your profits up
@ItBeginsAgain
@ItBeginsAgain 6 ай бұрын
I mean I rent my building 750 a month in a small town. Insurance 180 a month. Food costs $2500 a month estimated $3,430 together. I don’t have employees, I use family. We slit the difference. I average between 20,000 a month. So we slit 10,000 each and after taxes I have around 8,000 and then we Invest 2,000 each back into the restaurant. I clear 5 to 6,000 a month. Going strong for 10 years.
@Ineedpeace215
@Ineedpeace215 8 күн бұрын
I mean??
@AshTheDuke
@AshTheDuke 6 ай бұрын
Glad I learned this in a short video. Thank you so much, sir.
@corystheboss
@corystheboss Жыл бұрын
Good luck getting to 20% labor lol
@matthewaldrich6455
@matthewaldrich6455 Жыл бұрын
Right. Most realistically gonna spend about 20% in food and 40% on labor(food is the cheapest part of the expense). People always quit, get promoted, etc. So any of those circumstances SOMEONE has to work harder. Which means more labor cost. I remember way back when being a dishwasher and 2 guys in the dish room quit in one week and guess who pulled muktiple doubles for 3wks until 2 more washers got hired? Me!! I pulled in ahout 70hrs for 3wks straight until we FINALLY found good people. So ik first hand my boss was putting alot into labor on one dishwasher compared to if he woukdve just had 3. Which btw at the time i was making 11hr so do the math on 11hr and 70hrs. Lot of fucking money spent on just one person. Let alone A DISHWASHER
@TheFamousMockingbird
@TheFamousMockingbird 8 ай бұрын
you are aisck person if your labor costs are that low
@JohnSmith-dm1wo
@JohnSmith-dm1wo 7 ай бұрын
Why not use all paper plates and cup’s utensils. No dishwasher needed
@JohnSmith-dm1wo
@JohnSmith-dm1wo 7 ай бұрын
Or no dishwasher needed
@n-zh6bn
@n-zh6bn 6 ай бұрын
hire the fuckin immigrants and you can get even less than 20% labor
@tallbrian100
@tallbrian100 7 ай бұрын
No one pays minimum wage except for tipped worker. I was a restaurant owner, did about 30K a month and when all the expenses were paid 1K was left but that was after paying depreciation of $4500. So $5500 profit or about $18 per $100.
@bender49ers
@bender49ers 7 ай бұрын
You're about right with every resturant I worked with most were about 25 percent if employees weren't stealing stuff.
@sholonator92
@sholonator92 Ай бұрын
Not that bad
@Rainy_Day12234
@Rainy_Day12234 7 ай бұрын
2% profit margin. Don’t open a restaurant. Do you realize how much in sales you need to make to earn a living.
@leonfisher6214
@leonfisher6214 Жыл бұрын
way to go yah Jerk!! you just crushed my dreams.
@therealpaulreiser
@therealpaulreiser Жыл бұрын
sorry Leon, it's better you know now then later!😂
@pathibe
@pathibe Жыл бұрын
​​@@therealpaulreiser most jobs in this country is wanted and then we are forced to follow someone else's miserable life that they call heaven
@Orange-ic2mp
@Orange-ic2mp Жыл бұрын
Bro make your dream a reality, do not wait for opportunities if you fail then at least you learned a valuable lesson and at least you actually tried achieve your dream. Do not let your dream be crushed by one KZfaq shots. We have the same dream bro maybe not same type of restaurant but still restaurant Do not give up 💪🗿👊 I don’t see these videos as a dream crusher I just thinking like im here to listen to someone talking about what im interested in and take in more and more information.
@fidelgarcia5683
@fidelgarcia5683 5 ай бұрын
@@Orange-ic2mptrue if that was the case there wouldn’t be any restaurants
@lxrocha
@lxrocha Жыл бұрын
I wish I was making $2 from a restaurant I owned. I found a spot that’s selling for 75k and has huge potential. Prime spot and they don’t even cater to the young customer base they have around them(college student) and don’t even do online ordering 😭
@danevertt3210
@danevertt3210 Жыл бұрын
Then buy it and take a chance
@jack6136
@jack6136 Жыл бұрын
Caution ! Don’t cater to College students! You have never met people more completely BROKE AND MISERABLE than a college student 👨‍🎓! With all of the cost of college and all of the study and all of the degrees they go work at Starpukes coffee ☕️ and are STILL BROKE!
@christophergarcia5545
@christophergarcia5545 Жыл бұрын
30% food costs is actually pretty damn high.
@therealpaulreiser
@therealpaulreiser Жыл бұрын
True, definitely going with a round number for the sake of speed and simplicity… but food coast is getting tougher every day! What is your food cost?
@fccoz8348
@fccoz8348 Жыл бұрын
Actually that’s normal
@danevertt3210
@danevertt3210 Жыл бұрын
I’ve seen higher food cost. It all depends on total concept. For a QSR, it’s a horrible food cost. For different brands in downtown trendy cities, food cost will be more. That’s how it works. 20 years ago, I worked in an Applebees, and we ran 25%, as a top 10 franchise within that company/brand. It’s all different
@marcodistefano6351
@marcodistefano6351 Жыл бұрын
16/18% right number
@geoffroyraby8896
@geoffroyraby8896 Жыл бұрын
In the SF Bay Area, 30% food cost, 35% Labor 😢 it’s getting really hard to operate in SF. We can charge more but the volume never came back like pre-covid. Tough time right now
@jack6136
@jack6136 Жыл бұрын
So food is not the Golden goose. What about the Bar and service bar?! How much does having a clean and well organized restaurant and staff earn for the restaurant?
@kesselhandana6408
@kesselhandana6408 Жыл бұрын
Thanks for this video sir😊
@therealpaulreiser
@therealpaulreiser Жыл бұрын
My pleasure Kessel!
@nikx1918
@nikx1918 7 ай бұрын
Way off!! A properly run restaurant banks!! Especially now cuz many restaurants gave up after pandemic so business be booming. Payroll is much higher so is food cost but if your garbage can eats more than your customers lock the door. If you open a small business restaurant be prepared to go all in, there is no middle ground when it comes to work ethic and passion on the food you serve.
@dr.milikpertin6045
@dr.milikpertin6045 Жыл бұрын
A elementary school student also knows what you have shared
@vatsvlogs6110
@vatsvlogs6110 11 ай бұрын
Nicely explained 😅by splitting the dollar
@therealpaulreiser
@therealpaulreiser 11 ай бұрын
Thanks so much! It really seemed to help my teams visualize expenses and profit and loss👍🏻
@garysarnowski3113
@garysarnowski3113 8 ай бұрын
And here I thought because I know how to eat, I would know how to run a restaurant. Quote taken from the sopranos HBO show, restaurant owner Artie to Tony soprano 😂
@mominthe209
@mominthe209 5 ай бұрын
I actually know one restaurant that was opened because one of the guys is a great cook-at home. Got investors to give him money. You guessed it less than 6 months and they were out of business. Investors got pennies back but the cooks family has a fully furnished commercial kitchen to lease out 🙄
@user-gd4pz8nd6p
@user-gd4pz8nd6p 4 ай бұрын
What if just a question What if they use food stamps to buy the food just wondering
@sivar8730
@sivar8730 7 ай бұрын
How much money do I need to start a restaurant in Dubai?
@zer0sy
@zer0sy 6 ай бұрын
So if I own a restaurant I need to price my food 3 times of the ingredients to just make about 11% profit?
@Vijayrk006
@Vijayrk006 6 ай бұрын
How much money do you need to open a new restaurant in Dubai?
@JesusIsTheLord777
@JesusIsTheLord777 Жыл бұрын
You forgot the secret of the Tithe to the Work of God and Jesus our Lord! Epic receipt for success
@RT_Mulino
@RT_Mulino 9 ай бұрын
I have a dream,to one day open a restaurant,Yeah i know all the difficoulties,but it's my dream.. My strategy is to work like 1/2 years,as a cook or something like that (i have a passion for cooking since i was 9) After i get some money saved up like 10k/11k,i'm gonna buy my little property,problably on mortage,depends on the circumstances. Renovate it,buy some food and all things i need with my saved up money. Do some online ads and hang restaurant wavers everywere,to hopefully gain some clients,so at the start im gonna try to work alone,so that i dont have to pay Paychecks. I hope it works out for me! (Ps:i'm Italian so my english might not be great!)
@JamesCole-dq4qv
@JamesCole-dq4qv 9 ай бұрын
good stuff boss
@SomeDumbRandomUser
@SomeDumbRandomUser Жыл бұрын
soo ... when did youtube became a preschool?
@therealpaulreiser
@therealpaulreiser Жыл бұрын
It is surprising how few people understand how money actually works. I used to teach this to my assistant managers to help them understand that we only keep a little bit of each dollar and how that affected their bonuses. They were usually surprised about how small the profit was.
@fccoz8348
@fccoz8348 Жыл бұрын
Right lol
@brison9972
@brison9972 Жыл бұрын
well we cant all be a genius like you lol
@arcordel1816
@arcordel1816 Жыл бұрын
@@therealpaulreiserI didn’t know until now
@activision4170
@activision4170 4 ай бұрын
​​@@therealpaulreiser What the heck are they doing with the money? Just pocketing it and then not paying wages or?
@alex98b627
@alex98b627 2 ай бұрын
40% on Expenses? That’s crazy high. And no wonder there is so much resistance by business owners to increasing the minimum wage - 20% labour costs is very cheap. That would have to be a quick service restaurant, as a full service restaurant would generally be up around 35-40% labour costs. I own a restaurant in Australia and my split is approx 42% labour, 27% food and beverage, 12% rent and expenses.
@therealpaulreiser
@therealpaulreiser Ай бұрын
My 20% labor was fast food. I know there is a broad range of expenses across restaurant types. The hope is that people can see that they need to know their cost break down and that restaurants run on thin margins. What is your net profit? My high volume stores ran 20%, my lowest volume stores lost money... the average was about 10%
@joeboy1884
@joeboy1884 5 ай бұрын
You didn’t explain HOW they make money though
@Hasan_reacts
@Hasan_reacts Жыл бұрын
Thanks for the video but wtf restaurant vs restaurant owner it's the same?
@marthae3563
@marthae3563 10 ай бұрын
Thanks don’t want restaurant now lol 😂
@TwoWarPlayers
@TwoWarPlayers Жыл бұрын
Well if you dont sell much sure but most restaurants make more than 100$ a day.
@therealpaulreiser
@therealpaulreiser Жыл бұрын
Yeah, $100 a day wouldn't keep you in business long. When teaching this I like to use small numbers to get the point across... but the % is the same for 100 or 1,000,000.
@FiestaMagicc
@FiestaMagicc 8 ай бұрын
​@@therealpaulreiser so basically just 10%
@kajilai
@kajilai Ай бұрын
What about buffet restaurants?
@hasanferoz2364
@hasanferoz2364 9 ай бұрын
Then what to do now
@sitrep
@sitrep 11 ай бұрын
So if I own the food company then the building the restaurant makes more profit
@user-ls9cq7si9t
@user-ls9cq7si9t 7 ай бұрын
In the restaurant I work at we make $ 2:13 In an hour. Tips are everything.
@dallas768
@dallas768 6 ай бұрын
Dang cali got 18 dollar minimum wage 💀
@mominthe209
@mominthe209 5 ай бұрын
And I just paid $11.99 for a “sweet cream puffy waffle”. I don’t think I’m going to get over this. I feel like they just added a cup of sugar and didn’t leave it in the waffle press long enough. I’ve noticed this restaurant is now about half empty.
@jeffreyjeziorski1480
@jeffreyjeziorski1480 5 ай бұрын
1800 % markup on drinks sounds pretty profitable to me. Dont forget that pasts.
@eugenemiranda4875
@eugenemiranda4875 5 ай бұрын
We he left out is how the land lord is part owner because the rent is astronomical and the dollar gets assaulted with taxes taxes and more taxes 😂
@Aouthantic
@Aouthantic 8 ай бұрын
🚫 Waste of food is bigger reason to Bank corrupt Restaurant .........❤..........
@mr.2799
@mr.2799 6 ай бұрын
1st separates 10% for sales taxes
@Mr.BigBadWolf
@Mr.BigBadWolf 6 ай бұрын
More like $10,000 and you almost never have to be there.
@HeatDeap
@HeatDeap 7 ай бұрын
Bro you literally lost me at stick with me 😂
@edwardlandersonlll9096
@edwardlandersonlll9096 11 ай бұрын
WOW, That actually sounds like a joke!!!
@MauiTaha
@MauiTaha Жыл бұрын
NEXT UP: Ever wonder where chickens come from? They come from, wait for it, EGGS. You now know more than most farmers
@AnimationOnly
@AnimationOnly 7 ай бұрын
Save money and buy a food truck .learn some recipe at home and perfect it first. Then ,take out a piece of paper and start write your MENU that you want to sell with price .(dont over mark up) Go to the nearest school and go sell the food there .Dont sell expensive food ,just basic food like burgers,hotdogs ,fried rice . Thank you .(now you have your own business)
@amosvandenbroeck2776
@amosvandenbroeck2776 Жыл бұрын
Every restaurant owner knows this👎
@aqoonqaate8109
@aqoonqaate8109 Жыл бұрын
You forgot the tax 🤣
@therealpaulreiser
@therealpaulreiser Жыл бұрын
I never forget the tax! 😅
@tedangle8224
@tedangle8224 7 ай бұрын
Who the hell would even want to open a restaurant nowadaze?! Damn slim margins...
@samverdin193
@samverdin193 7 ай бұрын
20 an hr for restaurant workers in CA 😅
@funnymaster468
@funnymaster468 3 ай бұрын
That’s still $10 🤗
@flipmex1
@flipmex1 4 ай бұрын
Restaurants biggest profits are from their sodas. 20 cents per glass is the cost, yet it’s $4/glass. Nice 20x profit there.
@ToMuchSwagg4ya
@ToMuchSwagg4ya 9 ай бұрын
I feel like if Ed helms were to do this video it would be better
@therealpaulreiser
@therealpaulreiser 9 ай бұрын
If only Ed Helms had the time to do EVERY video👍🏻
@Eljefe5948
@Eljefe5948 Жыл бұрын
It depends on what type of food you selling and if you selling high numbers or not.
@tommysuriel
@tommysuriel 7 ай бұрын
What about franchises? Like Dominoes or something
@NoteConference
@NoteConference 8 ай бұрын
$7.25 an hour. I made that 50 years ago
@saucelive9794
@saucelive9794 4 ай бұрын
It’s True❤
@AshTheDuke
@AshTheDuke 6 ай бұрын
Ha ha it's better to open a restaurant in India Nepal, more profit
@HermetteMelville
@HermetteMelville Жыл бұрын
Soooo how do they make money? I don't feel this answered the question.
@dawngallegos5396
@dawngallegos5396 4 ай бұрын
You did pretty good. Employees burn off profits in waste of items, theft and not charging items to guests….. so it is closer to 1.75- 3.00$ per ticket of two guests. In small towns for sure!
@therealpaulreiser
@therealpaulreiser Ай бұрын
Yeah, shrinkage is definitely a problem. You must be in the restaurant business! Thanks for checking out my video!
@ambro987
@ambro987 7 ай бұрын
This is how all businesses operate lol it’s called business expenses
@lawrencebritt1222
@lawrencebritt1222 4 ай бұрын
Tell Mc Donald’s excutives that!
@touzanitanger568
@touzanitanger568 8 ай бұрын
But you forget onething importsnt . 10 *200 = 2000 $ / day.
@christianchellis9057
@christianchellis9057 5 ай бұрын
I’d say not have waiters and waitesses
@ryanroedl5791
@ryanroedl5791 8 ай бұрын
In what world is a restaurants food cost exceeding labor. SMH
@kanefisher2913
@kanefisher2913 5 ай бұрын
That's not minimum wage lol 😂😂😂😂
@TheRex30
@TheRex30 6 ай бұрын
As a business owner for years I have worked for several taqueria owners most of them make ups of 10/15 k a weekend this is absolutely nonsense
@theninearemine8499
@theninearemine8499 7 ай бұрын
Here is how restaurants actually make money... continue to increase the % of tip you have to give, reduce employees' wages, because they are making tips. And if the tips are high enough. Find a way to force your employees to give you part of those tips. ~ Don't forget to continously reduce portion size, while increasing prices. And of course, always push the over priced alcohol.
@mominthe209
@mominthe209 5 ай бұрын
I bet you own the restaurant that just charged me $12. For a waffle. 😮
@Rippinsmallies
@Rippinsmallies 5 ай бұрын
When prices go up so should the pay rate. Making money is not for the rich its for everyone!!!
@abdelrhmanmohamed4754
@abdelrhmanmohamed4754 11 ай бұрын
If you dont rent and restaurant become popular you will hit 30% at least
@mobandz3017
@mobandz3017 4 ай бұрын
That’s why you use this as advertising that’s what it all about bringing people in once you got people and a good base you sell side products that the company can profit from or a special event or a Seasonal menu item maybe sell your own merch or branded products and nick nacks people coming in will see this or have a ghost kitchen to bring in more traffic when people are taking out you can run 3-5 different restaurants in one store you can sell cups or shirts or maybe local fruit jams or honey the food is what brings people in and the side items and add ons is wish you make money off of you won’t make money off selling one cheese burger you will break even but if you heard about our freshly smoked Canadian maple bacon you Might wanna add some to your burger extra $1 thats where you make your money
@lawschoolpro
@lawschoolpro 7 ай бұрын
But all these restaurants aren’t just doing it for shits and giggles. A lot of them are profitable especially here in New Orleans
@aliamacintyre483
@aliamacintyre483 Жыл бұрын
This was very depressing.
@asharifmd88
@asharifmd88 Жыл бұрын
I am sure you can claim of those expenses in your tax
@oklywright8886
@oklywright8886 6 ай бұрын
Wow! No way! I had NO idea that product & labor wasn’t FREE! 😐 See, I just assumed that if I opened a bar the food/drinks would just magically appear in the fridge the next day, free of charge. I didn’t know Id actually had to pay for product myself. What! Secondly, I figured I could just hire slaves so I wouldn’t have to pay them, but I guess not. Silly me. I guess I’m not a savvy, genius, business man like yourself. Thanks, man, I really learned a lot.
@timothygonzalez4837
@timothygonzalez4837 7 ай бұрын
7.25 an hour?
@harshittaunk1995
@harshittaunk1995 Жыл бұрын
I guess not less then 30 to 40%
@oscarg.3330
@oscarg.3330 6 ай бұрын
This is the most obvious shot I ever heard
@lelandjohnson1389
@lelandjohnson1389 7 ай бұрын
10% max? How about I invest my $100 at 10% without rolling the dice and saving myself a ton of grief and hard work? Remember that show , " The Bear?"
@papergun
@papergun 9 ай бұрын
Wrong, labour cost always a biggest, rent... However 30% for food cost is really damn high.
@nixonw7950
@nixonw7950 Жыл бұрын
why would u say the owners dont know this?
@therealpaulreiser
@therealpaulreiser Жыл бұрын
It is sad, but so many people start a restaurant without having any idea what the numbers are. They buy food, and sell it. If there is money in the register they think they made money. If I ask a small mom and pop restaurant owner what their food cost on an item is, they often don't know. It is very common for managers and assistant managers to have no understanding of profit and loss. Not always, but often. Hopefully restaurant owners and managers will use this video to explain the cost to their teams, and focus more on their own expenses.
@lunalovegoodwitch
@lunalovegoodwitch 10 ай бұрын
Interesting video but in the UK it's actually £9 an hour so I hardly believe $7 an hour is actually true
@therealpaulreiser
@therealpaulreiser 10 ай бұрын
Thanks for checking out my video! In the US the Federal minimum wage requires that each state pay at least $7.25 per hour. Most states have a STATE required minimum wage that is higher than that... but currently there are still 20 states that only have a $7.25 minimum wage. However, no one pays that low anymore... no one will work for that... but the meaning of the video has to do with percentage of sales, not dollar amounts. As wages have gone up, so has menu prices, so the dollar amt. doesn't matter, what matters is the percent of each dollar that goes to paying the different expenses. I used this illustration to show my teams that not much of the dollar is profit. So we have to be very carful not to waste food or labor hours. Thanks for taking the time to comment👍
@user-jk3lh6ly4m
@user-jk3lh6ly4m 3 ай бұрын
Don’t forget online ads, federal taxes, state taxes, city taxes, county fees, fire man fees, licenses, insurance… I own a restaurante for several years is not an easy job 😅 good luck getting a 1$ per 100$
@therealpaulreiser
@therealpaulreiser Ай бұрын
The expenses seem to never end! Thanks for the comment!
@BenAriffin7
@BenAriffin7 5 ай бұрын
Do you even own a 'successful restaurant'?😅
@therealpaulreiser
@therealpaulreiser 5 ай бұрын
Hi @benariffin7 thanks for asking! Well… I did own 38 Sonic drive ins, but we sold them all 2 years ago. When we sold them we were one of the top franchise groups in Sonic. Are you in the restaurant business? kzfaq.info/get/bejne/i6eFopSV3r24e4E.htmlsi=H_oMYnoybySmU7BO
@metaldreams3595
@metaldreams3595 8 ай бұрын
But they can afford to pay people $15 an hour! lolz
@mistersmith-ip4sz
@mistersmith-ip4sz 7 ай бұрын
They sell food. Simple
@Rhinozzzz
@Rhinozzzz 7 ай бұрын
This is why you NEVER invest in a restaurant! No matter how good a deal your brother in law says it is. A restaurant is the least likely business to succeed.
@AnimationOnly
@AnimationOnly 7 ай бұрын
Restaurant cost of operation is too high .If you want to sell food or beverages ,just buy a food truck and sell your food there . You don't need more than 10 staff to operate a food truck though 🤣🤣
@justanaveragebalkan
@justanaveragebalkan Жыл бұрын
Some genius level skillsets there, what do you know business has expenses. Thanks for changing my perception on restaurants boomer.
@therealpaulreiser
@therealpaulreiser Жыл бұрын
Okay, pretty funny, you actually made me chuckle out loud. COL, But most people don’t have a realistic idea of how much or little profit a restaurant makes. If I had asked you before you watched this video how much profit does a restaurant make, what would your guess have been? Next time you go to a restaurant try asking your server how much profit they think their restaurant makes. I would be very surprised if they guess between 2-10%. Not everyone is as informed as you seem to be… whipper snapper.
@wihdinheim0
@wihdinheim0 Жыл бұрын
​@@therealpaulreiser that wasn't the point. You said in the beginning how the viewer will understand more about how restaurants make money and doubled down how they will actually learn more than restaurant owners. After that you proceeded to tell THE MOST OBVIOUS THING OF RUNNING A BUSINESS. This was so dumb that I'd ask for a refund for the 1 minute it took away from my life.
@therealpaulreiser
@therealpaulreiser Жыл бұрын
@@wihdinheim0 That was a bit of hyperbole… I’m not sure if you’ve ever seen a youtube video before, but sometimes creators exaggerate just a bit in order to make a point or grab attention (so be careful) This video is not valuable for everyone, but it is good for some folks. 80% of restaurants go out of business… one of the biggest causes is not having a good understanding of their basic cost. Thanks for checking out my video. I’m sorry you didn’t enjoy it, but thanks for the feedback.
@AC-qk9tk
@AC-qk9tk 5 ай бұрын
Why would you gamble and go through the headache of managing a restaurant for maybe %10,. S&P 500 has averaged %8.5 the past 30 years, and you do nothing. Of yyu ain't turning % 20-25 it ain't work the risk or the headache. Unless Im missing something.
@therealpaulreiser
@therealpaulreiser 5 ай бұрын
Thank you for the comment! I do put a percentage of the money I earn in an S&P 500 etf, it's a great way to invest. But... the money you earn from the S&P is based on the money you put into the stock market... the money you earn from a restaurant is based on money the customers pay for food and service. You start making money soon from a restaurant... it takes a long time to invest enough in the stock market to start earning enough to live on. Thanks for checking out my video!
@Jimo225
@Jimo225 7 ай бұрын
i make more money mowing grass and grass is better because i dont' have to worry about the grass not needing to be mowed.
@MrCapothead
@MrCapothead 7 ай бұрын
Paying all those good people 7.25 / hour. Was this video made 20 years ago?
@mominthe209
@mominthe209 5 ай бұрын
That’s the federal minimum wage. Restaurants have always counted on tips for their wait staff to make a decent wage.
@robertkerr4201
@robertkerr4201 7 ай бұрын
20% labor? In your dreams.
@konijntjesbroek
@konijntjesbroek 11 ай бұрын
How is the most $30, with another category showing $40
@therealpaulreiser
@therealpaulreiser 11 ай бұрын
In this example $20 is food, $30 is Labor, and $40 is all the other expenses added together. These are only averages. The point is... you have to watch costs closely, and not very much of the $100 in sales is actually profit. Thanks for checking out the video!
@RichardM-sq6ur
@RichardM-sq6ur 8 ай бұрын
Hustling alcohol
@declan9700
@declan9700 Жыл бұрын
More then people who actually own restaurants… these scammers have gotten to brazen with the BS
@therealpaulreiser
@therealpaulreiser Жыл бұрын
Hey Declan, Are you thinking I'm a scammer? I don't understand.
@thegrayman69
@thegrayman69 5 ай бұрын
It’s booze . Video over
@mitreshseewoogolam4065
@mitreshseewoogolam4065 9 ай бұрын
You're incorrect my friend. Especially that salary part, after a certain volume of revenue, wage rate will be same but revenue per hour will be higher.. Do the maths dude.
@gp37128
@gp37128 8 ай бұрын
Same with the rent and insurance. More revenue means that those fixed costs are less of a percentage.
@asifmohammad7249
@asifmohammad7249 Жыл бұрын
Brad new information fkr
@sandormata2447
@sandormata2447 9 ай бұрын
Probably you never hade restaurant 😅😅😅😅
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