Smash burger & Shakes Cafe ?

[Rossrevy]

I have been thinking allot about my first business, I have gone with the food industry and have started my research. I see so many local cafes and restaurant's doing well so I figured it would be a good place to start. My initial thought which would make sense is a Smash burger specialist with shakes and deserts on the side. Would this be too broad? Would a smash burger themed cafe work better or just a Shake/Crepe bar work better on its own. I understand this is a broad question so what I mean is would it be better to niche down to just specialise in Smash Burgers or deserts, or would both complement each other?

I think combining these two in a city centre location would be a great hit, with some sound marketing and great sales funnels such as Uber eats and Deliveroo I think it has a good success.

Please anyones thoughts or input is greatly appreciated. Thankyou.

 

[fisicx]

Are cafes and restaurants doing well? Most are struggling and many are going to close as the recession hits.

There used to be 4 eateries in our high street, now there is only one.

I’d put your plans on hold for a couple of years.

 

[Mark T Jones]

As @fisicx says, I'd question what you see as 'doing well'. In any economic climate f & b has a failure rate way above average - largely due to the fact that most independent operators don't actually understand the business - they just fixate on the theme or the product.

On the plus side, if you do it properly there are segments that will prosper in a any economic climate

So, my suggestion is that you focus your research on

1. Comprehensive market research

2. The real detail around making an f & b business successful (hint - it isn't the product)

Perhaps back up your research with a pop-up or street stall

 

[Paul Kelly ICHYB]

Welcome and well done for scratching the creative itch.

What experience do you have in the F&B area? It will be difficult enough starting your first business, but add onto that a highly competitive area you may not have worked is, unfortunately, a recipe for failure!

It is possible to make it work, but it will involve a lot of research, planning and, importantly, funds.

 

[MOIC]

My initial thought which would make sense is a Smash burger specialist with shakes and deserts on the side

I don't think your menu selection is too broad, however as above posts have mentioned, what research have you done, have you found a location that will work, what experience do you have and do you have the finance to carry out this project?

 

[Newchodge]

I don't know if this is of interest

Newcastle restaurant closes just six months after opening on Dean Street

Burger. Eat. Shake. Repeat! opened the Newcastle restaurant in March but has now closed its doors to diners

www.chroniclelive.co.uk

 

[Rossrevy]

Are cafes and restaurants doing well? Most are struggling and many are going to close as the recession hits.

There used to be 4 eateries in our high street, now there is only one.

I’d put your plans on hold for a couple of years.

I noticed allot of local F&B doing fairly well regarding lockdown however I am not sure about now. Like you said the recession will make a big impact. Is Food delivery not a good business to have during a recession? Not good of course but it would be essential.

 

[Newchodge]

I noticed allot of local F&B doing fairly well regarding lockdown however I am not sure about now. Like you said the recession will make a big impact. Is Food delivery not a good business to have during a recession? Not good of course but it would be essential.

People with no spare money will cook their own food or, if they must have a takeaway, they will collect it. I would suggest that food delivery would be an early casualty.

 

[Rossrevy]

As @fisicx says, I'd question what you see as 'doing well'. In any economic climate f & b has a failure rate way above average - largely due to the fact that most independent operators don't actually understand the business - they just fixate on the theme or the product.

On the plus side, if you do it properly there are segments that will prosper in a any economic climate

So, my suggestion is that you focus your research on

1. Comprehensive market research

2. The real detail around making an f & b business successful (hint - it isn't the product)

Perhaps back up your research with a pop-up or street stall

Yes I agree, I have done some minor research but am very new to business in General. I am trying to find the perfect fit for a first business. Thanks for your advice.

 

[Rossrevy]

Welcome and well done for scratching the creative itch.

What experience do you have in the F&B area? It will be difficult enough starting your first business, but add onto that a highly competitive area you may not have worked is, unfortunately, a recipe for failure!

It is possible to make it work, but it will involve a lot of research, planning and, importantly, funds.

Thankyou, I have no prior experience but do not mind a challenge. I plan on researching successful startups and trying to mirror what they have done to be successful. I may take another route after all there is allot of options.

 

[Drax35]

I noticed allot of local F&B doing fairly well regarding lockdown however I am not sure about now. Like you said the recession will make a big impact. Is Food delivery not a good business to have during a recession? Not good of course but it would be essential.

Some takeaways did well out of lockdown, but people were forced into using them (isolating) or had more cash to spend (not going out). The market is very different now.

People tend to trade down during a recession. It doesn't sound like you're aiming for the bottom end of the market, so are there enough customers buying a more aspirational version of your product who will trade down to you?

Also consider the pricing challenges F&B businesses are currently up against. Food costs are going through the roof, staff are more expensive than ever and we're all familiar with the small issue of energy bills - for a restaurant/takeaway your monthly electric will be in the 000s. There's definitely a gap right now between what F&B businesses need to be charging and what the general public are willing to pay and I can't see that changing anytime soon.

 

[GFI]

"City Centre Locatin" & "Just been thinking a lot about my first business" screams failure to me.

Sorry to be blunt, but unless you have a huge chunk of money to sink (literally) into this first idea I would advise thinking some more.

Look at all costs (rent, rates, gas, electric, staff and cost of product are the general big ones)
Look at potenial revenue and then halve it (especially in F&B)

Do they add up to a comfortable profit with room to adapt and grow?