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Gypsy Jan
Ultra Nomad
Posts: 4275
Registered: 1-27-2004
Member Is Offline
Mood: Depends on which way the wind is blowing
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A Friend Wants to Buy a Pizza Parlor in Cabo
Sounds like the setup to a joke, right?
But, he is dead serious. We are doing our best to dissuade him, so, I am relying on Nomads to let fly.
1. He has no experience with doing business in Mexico.
2. He has no restaurant experience of any kind.
3. He doesn't live in Cabo or visit regularly.
[Edited on 9-13-2010 by Gypsy Jan]
“Travel is fatal to prejudice, bigotry, and narrow mindedness.”
—Mark Twain
\"La vida es dura, el corazon es puro, y cantamos hasta la madrugada.” (Life is hard, the heart is pure and we sing until dawn.)
—Kirsty MacColl, Mambo de la Luna
\"Alea iacta est.\"
—Julius Caesar
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Dave
Elite Nomad
Posts: 6005
Registered: 11-5-2002
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| Quote: | Originally posted by Gypsy Jan
1. He has no experience with doing business in Mexico.
2. He has no restaurant experience of any kind. |
Lack of restaurant experience isn't always a recipe for disaster however, lack of successful small business experience, is.
As a foreigner, succeeding in business in Mexico is totally dependent on where. If the local population and agencies want you to
succeed...you'll probably do OK. If they don't, no amount of experience or business acumen will help. You're doomed.
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dtbushpilot
Ultra Nomad
Posts: 3294
Registered: 1-11-2007
Location: Buena Vista BCS
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Mood: Tranquilo
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I think it sounds like an adventure in the making. If he has an entrepreneurial spirit, doesn't mind hard work and long hours and makes friends easily
he just might succeed.
You say he wants to buy a pizza parlor. That would lead me to believe that he would be buying an existing business. How are they doing financially? Do
they make good pizza? Do the locals eat there? These and of course many more questions need to be answered before one could give serious advise as to
weather it is really a bad idea or not.
What gave him the idea in the first place? I'm sure he didn't just have an epiphany in a dream.....or did he?.....dt
"Life is tough".....It's even tougher if you're stupid.....
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monoloco
Elite Nomad
Posts: 6667
Registered: 7-13-2009
Location: Pescadero BCS
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He must be a masochist.
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k-rico
Super Nomad
Posts: 2079
Registered: 7-10-2008
Location: Playas de Tijuana
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How do you make a small fortune in the restaurant business?
Start with a large fortune.
I know, it's an old joke.
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motoged
Elite Nomad
Posts: 6481
Registered: 7-31-2006
Location: Kamloops, BC
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Mood: Gettin' Better
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Many of us take a vacation to a distant locale and think we want to live there forever.
Remember that?
Oh, yeah, some of you live there now....
Viva Baja dreamin'
I would like to order a pesto-camarone with feta, sundried tomatos, garlic and thin wholewheat crust....does he deliver?
Don't believe everything you think....
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Bajahowodd
Elite Nomad
Posts: 9274
Registered: 12-15-2008
Location: Disneyland Adjacent and anywhere in Baja
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Similar to Pompano, I have friends that chased that dream, and failed. Here's the problem. Virtually all of the resorts throughout Los Cabos contain
multiple restaurants. and the somewhat recent development of the all-inclusives, just added to the burden on the independents, in that folks could
spend their entire vacation and never partake of a meal off-site. Then, consider that the taxi union has made traveling into town expensive,
remembering that many tourists arrive by plane and don't rent cars. So, what is left is a battle among those private restauranteurs. I'm reminded of
the guys who set up shop just off the main drag (Pazzo's Pizza) who actually had a great location and a great set up. They bailed. Some of them moved
to Todos. There are a few people who have made it in the independent restaurant field. John and Mary Bragg, and Gunther Richter and his wife have done
it. Obviously great marketing skills are required.
There's actually another sinister aspect working here. The Solmar guys, who have hundreds and hundreds of timeshares have a number of restaurants off
site. They steer their guests to them. For instance, Romeo y Julietta, and La Fonda.
It's a jungle out there. And having zero restaurant experience is ridiculous.
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Pompano
Elite Nomad
Posts: 8194
Registered: 11-14-2004
Location: Bay of Conception and Up North
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Mood: Optimistic
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Gypsy Jan. We just put a homemade jumbo-large pepperoni/Canadian bacon/squid pizza into the oven. This pizza is authentic Italiano with very
special sauces and fantastic cheeses. Everyone I know loves this recipe.
Hey, maybe I should start a pizza palace? I can see it now...
First ...c-cktails on the patio, some lively salsa dancing around the firepit..then a pizza fantasy with iced Pacificos...followed by slow, sensuous,
belly-grinding to violins..the full moon coming up over the Bay...HMMM..
Good Grief! I'm gonna do it! Zulema..where are you??
Gypsy Jan, We hope your friend gives this some long and deep thought before taking a financial plunge that could bellyflop badly for him. Failed
restaurants in Baja are counted in the thousands.
[Edited on 9-14-2010 by Pompano]
I do what the voices in my tackle box tell me.
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Howard
Super Nomad
Posts: 2353
Registered: 11-13-2007
Location: Loreto/Manhattan Beach/Kona
Member Is Offline
Mood: I'd rather regret the things I've done than regret the things I haven't done.
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If your friend pursues this dream I wish him nothing but the best of luck.
With that being said, what is the "over under" on how long he will last?
Assuming he has deep pockets, I say 5 months and that is assuming no natural disaster (chuhbasco's, hurricanes, etc.) speeds up the inevitable
outcome.
Once again, I wish that he makes a million dollars and proves me wrong but this might fall under the category of death and taxes, can't avoid either
one.If your friend pursues this dream I wish him nothing but the best of luck.
With that being said, what is the "over under" on how long he will last?
Assuming he has deep pockets, I say 5 months and that is assuming no natural disaster (chuhbasco's, hurricanes, etc.) speeds up the inevitable
outcome.
Once again, I wish that he makes a million dollars and proves me wrong but this might fall under the category of death and taxes, can't avoid either
one.
We don't stop playing because we grow old;
we grow old because we stop playing
George Bernard Shaw
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wessongroup
Platinum Nomad
Posts: 21152
Registered: 8-9-2009
Location: Mission Viejo
Member Is Offline
Mood: Suicide Hot line ... please hold
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Think ya atta aske the guy what he really wants... to do...
Hell, not to sure owning a resturant any where, is all that much fun.... proably wrong usually am..
But, the folks I seen with really good places ... work there butts off... I can appreciate the "positives" one could derive from a really good place
putting out really good food..
A tough business .... think Pizza Hut is down to a $6.99 large pizza.. and it wasn't too bad... really ...
But, would like to know what he really wants.. lets say he gets the restruant, does he want a chain, a fishing boat, house, plane... me I'm easy I
don't want to do anything... other than what at moment.. which can change rather quickly for me...
Physical travel has been removed from my life to a very large extent.. therefore my options of things to do are reduced, plus I'm retired and really
don't want to work, I might if someone came up with a real problem and I could help them in some way .. I would consider... but, I'm really burned out
in "business dealings".. just tired of them.. not that I could not, I chose not to.. I've been working since I was in the 4th grade.. plus the normal
chores around what ever place I lived..
So I'm enjoying my retirement, today is just super, plus I get to see Pomanpo .....some how, get his copilot put is bbq togather and start dinner..
and a bbq that held, what was it 16 turkey's....  and some phesants too...
But there must be something going on in that brain...
Get him s hit faced... maybe then it will come out....
Just a thought...
[Edited on 9-14-2010 by wessongroup]
[Edited on 9-14-2010 by wessongroup]
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XRPhlang
Nomad
Posts: 111
Registered: 10-12-2007
Location: Central Coast
Member Is Offline
Mood: Taco me.
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It's all in the percentages:
30-32 % food and beverage cost
30 - 34% Payroll and taxes (including his own)
6-8% rent
8 % debt burden (don't borrow more than 6 mo. gross recipts)
10 - 15 % everything else: cleaning supplies, advertising, decorations, drain clearing, equipment and building maintence, pest control, china glass
& silver, merchant service fees, discounts and a bunch of other things I can't think of.
I know that doesn't leave much profit. As the restauranteur becomes a better operator he can trim a few percentage points. 3-4 % of 50k combined with
the payroll he's already taking might double his income. Become a corporation and deduct everything you can, (car, gas, travel, entertainment,
groceries , etc.)
Show up everyday. Let the customers see your involved. Keep the place clean and safe. Watch and check everything. Do frequent inventory checks. Try to
introduce something unusual. Produce excellent food and service (duh). Watch the monthly reports, forget about the day to day.
He may, or may not get rich, but if he makes ikt a fun place to hang out, he'll undoubtedly become a big shot in town.
Of course these rules apply restaurants in the US. Things may be a little different in Cabo.
Oh yeah. Don't worry about too much competition. Just provide a better pie with a new twist and they'll eventually all come to you.
Still interested?
[Edited on 9-16-2010 by XRPhlang]
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castaway$
Senior Nomad
Posts: 742
Registered: 7-31-2007
Location: Gold Hill, Oregon
Member Is Offline
Mood: Fish on!
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Could be worse, he could be thinkin "taco Joint".
Live Indubiously!
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oxxo
Banned
Posts: 2347
Registered: 5-17-2006
Location: Wherever I am, I'm there
Member Is Offline
Mood: If I was feeling any better, I'd be twins!
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One of the pizza parlors just went out of business in Cabo.
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UnoMas
Nomad
Posts: 328
Registered: 2-8-2008
Location: East Cape
Member Is Offline
Mood: Great
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If your friend wants to throw away everything he has, that would be a great investment. It would save him much disappointment and heart ache if he just gave it to a charity
of his choice
[Edited on 9-14-2010 by UnoMas]
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JESSE
Ultra Nomad
Posts: 3370
Registered: 11-5-2002
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Anybody that wants to buy, start, or have anything to do with a food business in southern baja right now, is out of his mind. He has a better chance
of making money at Caliente betting on dogs than in a restaurant here.
[Edited on 9-14-2010 by JESSE]
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dtbushpilot
Ultra Nomad
Posts: 3294
Registered: 1-11-2007
Location: Buena Vista BCS
Member Is Offline
Mood: Tranquilo
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There is a great pizza restaurant in Los Barriles, I like their pizza, apparently a lot of other people do too. I'm guessing that everyone wants to
save this poor misguided soul from certain destruction but come on, WTF? Hasn't any of you reached out for something? Have none of you had and pursued
a dream? Don't answer that, it was rhetorical.....
Do your homework, don't listen to the naysayers. If the numbers make sense and you are willing to put forth the effort go for it. Don't get me wrong,
it's no accident that 90% of small businesses fail in the first 5 years (in the US). but that leaves 10% that make it.....for a while anyway.
Where's the support, where's the entrepreneurial spirit?.......
Small businesses make it every now and then, they are the backbone of America and every other free country in the world including Mexico. Will it be
tough? of course, can he make it? you bet he can, quit being so negative, none of us know what this person is made of, if he has spit and vinegar
maybe so, if he wants to head to the golf course at 10am maybe not.
Apparently we don't have many entrepreneurs on Nomads.....dt
"Life is tough".....It's even tougher if you're stupid.....
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wessongroup
Platinum Nomad
Posts: 21152
Registered: 8-9-2009
Location: Mission Viejo
Member Is Offline
Mood: Suicide Hot line ... please hold
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| Quote: | Originally posted by JESSE
Anybody that wants to buy, start, or have anything to do with a food business in southern baja right now, is out of his mind. He has a better chance
of making money at Caliente betting on dogs than in a restaurant here.
[Edited on 9-14-2010 by JESSE] |
Sage advice from someone in the trade... and dealing with "all" the problems which do occur, "good" ingredients to monthly gas bill for keeping the
ovens going...
Easy to sell on with the right numbers.. put, for those that are doing it... well.. they sometimes have a different take on things.. which is very
valuable...
I'm hope GJ can use something like this to HELP her friend out in his thinking ... as I too would be very hesitant to be investing in just about
anything at the moment... either here or in the states....
If he has "cash".. keep it in something with zero risk.. and buy the pizza's and enjoy some time off, for a year or so ... just my two cents... 
[Edited on 9-14-2010 by wessongroup]
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bajamigo
Super Nomad
Posts: 1218
Registered: 6-17-2006
Location: Punta Banda, BC
Member Is Offline
Mood: hubimos llegado
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| Quote: | Originally posted by Bajahowodd
I'm reminded of the guys who set up shop just off the main drag (Pazzo's Pizza) who actually had a great location and a great set up. They bailed.
Some of them moved to Todos.
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Very appropriate. "Pazzo" in Italian means "crazy." Like foxes.
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dtbushpilot
Ultra Nomad
Posts: 3294
Registered: 1-11-2007
Location: Buena Vista BCS
Member Is Offline
Mood: Tranquilo
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Don't do it, don't take any chances, don't risk anything, wait for the government to do it for you.......don't start a small business, it won't
work....maybe you should count on unemployment insurance and welfare....
Don't take a risk, don't put your future in your own hands, you don't know what's best for you, listen to the naysayers, they know what's best for
you. They sit at their keyboards and spout out the best advise......
Ask them who amongst them have been in your shoes.....listen to those who have been in your shoes......if you have the balls and have DONE YOUR
HOMEWORK then go for it or not.
It takes a special type of person to make it in a small business....ask yourself, am I that person? If not, save your self a lot of pain, if so, go
for it.....dt
"Life is tough".....It's even tougher if you're stupid.....
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wessongroup
Platinum Nomad
Posts: 21152
Registered: 8-9-2009
Location: Mission Viejo
Member Is Offline
Mood: Suicide Hot line ... please hold
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To set the record straight.. I had my own small business..
And I'm not trying to be a naysayer, rather to insure that the individual really knows his own mind and what are the up front problems which will be
faced, and that he conduct proper due diligence on all aspects of the venture..
I would not rule out, negative comments, nor would I rule out positive.. perhaps his timing is perfect for this type of business, I do not know based
on what has been put up thus far... but, I do know over the past months Jesse has shared some of his operational costs, plus other issues he must deal
with in running a restaurant in BCS ... and this kind of information is very valuable in the overall process
Will not disagree, that it is hard, and you must eventually take the plug and the risk.. but, being careful in going into it.. will just keep some of
the numbers in your favor... which would add to your chances of making a go of it...
I would want to get it ALL together and then study it carefully and then fish or cut bait on the call ... but, base the call on sound information
developed from comprehensive due diligence .. with a sound business plan in place .. before making the call...
Was thinking in these terms... for this individual... as GJ indicated the individual was a little green ... on the location, and running a business
...
Wish him all the luck... but, to be pragmatic in his overall approach
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