how to validate new business?

[boring-friday]

Theres a new business I want to start but I'm really struggling with getting the bottle to pull the trigger as it needs a fair bit of cash to start.
My first business didn't really require many risks, was just retail so the validation process was just seeing somebody doing well on ebay,checking wholesale prices and doing the same. Only real risk I ever took was opening a shop but even then it barely cost anymore than getting a warehouse that I needed anyway.

Now I want to open a restaurant/takeaway business like:
https://www.facebook.com/prepglasgow/
although a bit more like the following with more 'restraunty' types of food rather than more aimed at takeaway:
http://www.skinnykitchen.co
Probably with ready meals aswell like:
https://www.facebook.com/Prep-Boss-Ltd-1465093123800641/

I've had someone sit outside the one in Glasgow for a couple of weeks and its making silly money unless my sums are a million miles out, know its a good time of year for them but still. (just assume I'm right and it does well anyway). The 1 in Bournemouth seems to do well too despite them getting terrible reviews everywhere for bad service and long wait times

Now I want to open one in a different town/city thats a similar size that doesn't have one. Mainly targeted on gym goers/bodybuilders wanting to look good but also people concerned with health,vegans,gluten free etc with a pretty big menu, even the part aimed at hoby/bodybuilers would have 2-3 different sections with the different diets they're on

I've found a place that I think is in a good location and good city but I'm really struggling with pulling the trigger though seeing as its a fair bit of cash,

Good points:
1.The above guy is doing well, I can pretty much copy him and open in a different town. This is what I'm really struggling with assuming I'm right and he is making good money then surely its that simple? Assuming I don't hire a chef who makes a monumental fuk up of the food or a manager who doesn't know what they're doing.
2.I have the money, won't exactly bankrupt me if it fails
3.I'm confident I can market it well, pretty much have my own 'digital marketing agency'(cringe) working on my own sites
4.I know the niche really well
5.Easily scalable if it goes well
6.Niche is growing, so many young guys (and girls although they already were) much more bothered about their appearance in the last 5-20 years. Even women are a lot more into high protein diets since Beyonce and Kim K etc made having a fat arse fashionable and can't see that changing. The days of the triple S for young men are gone

Bad points:
1.I have no idea how to run a restaurant or where to find a good chef/manager etc, would want one who knows the niche well aswell as knows how to cook or manage the restaurant (have no time to get a job in one and don't want to)
2.I can't seem to find the bottle to pull the trigger on possibly losing 100k+
3. Want quite a big menu, assume this is bad with more wasted food and more time to cook



Probably missed loads of info out seeing as I'm stressed at 4 a.m, will update later

 

[fisicx]

Cooks are cooks and managers are managers. Which means you need front of house staff and people to do the cooking. The bigger the menu the more difficult it becomes. Less choice means people make up their minds faster, the chef has less prep to do and your costs go right down.

We've got a similar sort of place nearby and they do really well but only because they can churn people through. You need to decide if you want to be a restaurant and charge more but have people taking 2 hours for a meal or go for a more fast food type place where people arrive eat and leave (15-20mins max). This will dictate which direction you go.

I'd have thought 100K is a bit on the low side. Most of that will be taken up with fitting out and the rest will go on wages. You will need more than one cook (they can't work allday everyday), a manager and servers. But this sort of place can work really well if you are in the right location. The one I go to is in an busy shopping centre and is full of affluent young people (no website, no FB page - which is why it's trendy and popular).

 

[Shopclicks]

You know, there's a piece of advice that gets handed out to a lot of the start-up 'entrepreneurs' who start threads about their business idea. 'Work in the industry, before you invest in the industry'. You're experienced in business processes, so that may or may not apply.

I don't know very much about the price of leasehold b&m businesses in the UK. But, if I wanted to invest the equivalent of £100,000 over here in a restaurant / takeaway, I wouldn't be looking at a kitchen/front of house fitout in empty premises. I'd be looking at buying an existing business in the same area which has the size & facilities in place to suit your vision.

1. You have revenue from day one.
2. You eliminate one of your competitors immediately.
3. You get time to develop your own meals to see what works and what doesn't before you commit to the full re-brand.
4. The business you buy may come with experienced staff.
5. A used kitchen / front of house set-up in good condition has the same value as a new kitchen / front of house set-up, the day you install it.

You need to find a tired, over-worked restaurant owner who just wants out.

 

[Chris Ashdown]

If you look at the price of commercial kitchen goods £100k will not go far,

My local Fish and chip shop recently changed over from Gas to a brand new electric range and that and a few new other items came to £80,000 including vat

As Shopclicks says take over existing unless you are megga rich

 

[boring-friday]

Thanks for replies sorry I forgot about this.

Yeah I'd much prefer somewhere already set up as a restaurant but struggling to find anywhere, either the wrong size or location or they're making decent money already so I'd be paying way too much for customers that aren't in my niche.

Expect it will be more than 100k, I did put a + but to be honest I have no idea how much it will be.
Going to wait 6 months or so anyway and keep a look out for somewhere, if not I'll get a fresh place and open for Spring time next year. Expect May-August will be the busiest time for it other than a month or so after new year

 

[Chris Ashdown]

Naturally the most important part for non run of the mill restaurants / take away will the area

It's always easy to set up a copy of a market leader and even improve on them, but in most cases the majority of the customers will still go to the market leader

 

[Clinton]

I don't know very much about the price of leasehold b&m businesses in the UK. But, if I wanted to invest the equivalent of £100,000 over here in a restaurant / takeaway, I wouldn't be looking at a kitchen/front of house fitout in empty premises. I'd be looking at buying an existing business in the same area which has the size & facilities in place to suit your vision.

I'd echo that advice.

(But I would say that, wouldn't I? )

If you are buying into a business you'll learn a lot about the tricks of the trade from the seller (during the handover period). Don't underestimate the value of this kind of mentorship from a veteran of the trade who wouldn't otherwise be selling his expertise and inside knowledge of industry operation and coalface management.