Food thread

[southsider2k5]

My friends and I are debating this over email right now.

 

My arguments: (1) I bet he pays next to nothing for his location, (2) he has very little staff - himself, 2-3 bus boys, 2-3 cooks. I'm sure they're not making much more than minimum wage. (3) it's a cash-only business, (4) the food, while unique, isn't all that complex. It's not like he has to stock an entire kitchen for 40 entrees, (5) he has a 2 hour wait every day he's open, (6) he's been on national TV shows and won all sorts of national awards.

 

Still, even if he hasn't pulled in that much, surely the place is worth that much. He should have opened up a couple of restaurants by now, but even though he didn't a buyer would. I think he could get several millions easy if he wanted to sell.

 

The thing you are leaving out is it is hot dogs. No matter how good they are, you can only charge so much for them. Again, the margins are just tiny in this sort of a business. Even if his costs are small, so are the dollars he is bringing in. He isn't slinging $50 steaks. We are talking about $3 hot dogs.

[RockRaines]

The thing you are leaving out is it is hot dogs. No matter how good they are, you can only charge so much for them. Again, the margins are just tiny in this sort of a business. Even if his costs are small, so are the dollars he is bringing in. He isn't slinging $50 steaks. We are talking about $3 hot dogs.

And handmade sausages. He probably makes the most profit on his fries.

[southsider2k5]

And handmade sausages. He probably makes the most profit on his fries.

 

Honestly, it is almost for sure his drinks. A fountain pop costs around 5 cents for most places. Who knows what his labor, rent, insurance, etc cost, but drinks are where the money is made.

[Jenksismyhero]

The thing you are leaving out is it is hot dogs. No matter how good they are, you can only charge so much for them. Again, the margins are just tiny in this sort of a business. Even if his costs are small, so are the dollars he is bringing in. He isn't slinging $50 steaks. We are talking about $3 hot dogs.

 

I bet it adds up. Let's assume he serves 500 people a day with an average order of $10 bucks. Let's assume he's open 300 days a year. That's 15 million he's made over the last 10 years. Even if he makes 8% on that you're talking 1.2 million.

Edited May 6, 2014 by Jenksismybitch

[southsider2k5]

I bet it adds up. Let's assume he serves 500 people a day with an average order of $10 bucks. Let's assume he's open 300 days a year. That's 15 million he's made over the last 10 years. Even if he makes 8% on that you're talking 1.2 million.

 

I'd be shocked if it were anywhere near 8%. The people I know the industry are talking about more like 1-2% in the low cost sector.

[Kyyle23]

I believe what Rock said leans closer to the truth. He would rather not walk in there 5 years from now and see high prices and lower quality, and feel regret about selling

[Jenksismyhero]

I'd be shocked if it were anywhere near 8%. The people I know the industry are talking about more like 1-2% in the low cost sector.

 

If he's making 1-2% with that kind of following/publicity, he's the worst restaurateur ever.

[LittleHurt05]

My friends and I are debating this over email right now.

 

My arguments: (1) I bet he pays next to nothing for his location, (2) he has very little staff - himself, 2-3 bus boys, 2-3 cooks. I'm sure they're not making much more than minimum wage. (3) it's a cash-only business, (4) the food, while unique, isn't all that complex. It's not like he has to stock an entire kitchen for 40 entrees, (5) he has a 2 hour wait every day he's open, (6) he's been on national TV shows and won all sorts of national awards.

 

Still, even if he hasn't pulled in that much, surely the place is worth that much. He should have opened up a couple of restaurants by now, but even though he didn't a buyer would. I think he could get several millions easy if he wanted to sell.

 

It seems pretty simple to me. The guys is there everyday and takes every single order. When he runs a restaurant he wants to have complete control over everything, he doesn't wanna be sitting back letting others run the show and make decisions. He has said this much himself in interviews. It takes a lot of work and now he wants a break. As opposed to having someone else run it and possibly ruin the name or change the style or feel of the place, he would rather just close it. Not everything is 100% about dollars and cents.

[southsider2k5]

It seems pretty simple to me. The guys is there everyday and takes every single order. When he runs a restaurant he wants to have complete control over everything, he doesn't wanna be sitting back letting others run the show and make decisions. He has said this much himself in interviews. It takes a lot of work and now he wants a break. As opposed to having someone else run it and possibly ruin the name or change the style or feel of the place, he would rather just close it. Not everything is 100% about dollars and cents.

 

I could see this being a large factor, and have seen it myself in some places. The restaurant becomes an extension of the person.

[southsider2k5]

If he's making 1-2% with that kind of following/publicity, he's the worst restaurateur ever.

 

Measuring by what?

[Jenksismyhero]

Measuring by what?

 

Money? Using my estimates from before, which may even be high, 1% would mean he made $150k over 10 years. That's pretty bad for the amount of time/energy he puts into that place.

 

And the control factor is fine, but it's still not very logical. If he sells the place he washes his hands of it, so it's not like his name will be tarnished. If he's going to just close up shop and never return, it makes zero sense. If he's closing up shop for a couple of years to try something new with the option of coming back, or maybe to entice more offers, then it makes sense.

[RockRaines]

Money? Using my estimates from before, which may even be high, 1% would mean he made $150k over 10 years. That's pretty bad for the amount of time/energy he puts into that place.

 

And the control factor is fine, but it's still not very logical. If he sells the place he washes his hands of it, so it's not like his name will be tarnished. If he's going to just close up shop and never return, it makes zero sense. If he's closing up shop for a couple of years to try something new with the option of coming back, or maybe to entice more offers, then it makes sense.

His place is revered by the food industry, even making lists of best restaurants in the country to visit. His name is on the front door. It makes sense to me that if he wants to do something else he would close up shop.

[Chi Town Sox]

His place is revered by the food industry, even making lists of best restaurants in the country to visit. His name is on the front door. It makes sense to me that if he wants to do something else he would close up shop.

 

Just ate at Franklin's BBQ in Austin on Friday. Aaron Franklin probably pays no more than $3 per pound for brisket and then charges $19 for that pound. He makes 81 briskets per day at an average of 12 pounds. Over $15,000 per day (of course between all other costs) but this is only on brisket, there are four other meats, sides, beer, pop, clothing (which I believe Hot Doug's sells). Amazing for a restaurant who's hours to the public are literally only about 2-3 hours.

 

Well over 3 million in brisket sales per year at over a 500% clip, quite impressive. It depends on the business you are running and the food you are selling, Hot Doug's is selling alot of meat "scraps" (awesome scraps though) for $4 or $5

Edited May 7, 2014 by Chi Town Sox