QFO: How long after opening will a restaurant begin turning a profit?

I wish this level of thinking would die a slow miserable death. It’s caused more confusion and uncertainty than just about any other myth in the business. Restaurants that are successful today are profitable from Guest one. It’s by design. And it doesn’t matter what parameters you want to talk about. Anyone who says otherwise has never built a successful restaurant in a competitive market.

Startup costs can’t be recovered in a day and investors understand this. This distinction is inane. But if you’re not generating profit from day one, they never get repaid, let alone profit. The amateur comments on this issue are just that – amateurish and made mostly by people who have never owned, built or operated a successful restaurant. nor have they achieved profitability as soon as smarter, modern operators do today. Which means they are mostly media “gurus” who only “talk” to successful operators about this issue.

Lastly, there’s a big difference between operating profit and startup costs recovery. This conversation is about the former not the latter.

Author: Jeffrey Summers
For four decades, my Coaching, Consulting, & Learning Events have helped thousands of hospitality leaders worldwide, build successful businesses. Call or text me at +1-817-797-2929 or email me at Jeffrey@JeffreySummers.com.

If you hear questions like these
in your business, I can help!

  • “Why do we have to go through all this change?”
  • “When is someone going to train me?”
  • “When will the (BOH – FOH) do its job right?”
  • “Who dropped the ball?”
  • “Why don’t they communicate better?”
  • “Who’s going to solve the problem?”
  • “Why is it so slow?”
  • “Why do we always run out of things?”
  • “Why can’t they get my schedule right?”
  • “Why did we hire another___.
    I told them I wanted to do that!”
  • “How do we know what our food cost should be?”
  • “How do we market our business effectively?”
  • “Why can’t we staff our restaurant better?”
  • “How do we grow our business in this economy?”



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