#172 – The best time to open a restaurant is right around the corner

Show notes from Episode #172 of the Sweaty Startup Podcast.

Nick doesn’t like the restaurant business, he never has liked the restaurant business, and he may never like the restaurant business, but it’s clear that 12 months from now may be the best time ever to open a restaurant.

• Location, location, location
  • The majority of restaurants nationwide are closed or extremely restricted right now, and a good portion of these may never open again.
    • These restaurants are located on huge amounts of real estate that landlords will be sitting on without pay once the restaurant closes its doors.
  • Landlords will be ready to negotiate with new restaurant owners, and that gives you leverage.
    • These locations have produced profitable restaurants for years, and you can negotiate to get incredible deals on rent and terms.
• Equipment steals
  • Food service equipment suppliers are burning cash sitting on their inventory, and they’re going to start cutting prices to get people to buy their products. 
  • Even better, restaurants that are going out of business will be selling their used equipment at bargain prices just to get liquidity.
  • You can get all your tables, chairs, appliances, and kitchen equipment all for historically unmatched prices because the people selling really need to sell.
• Hiring pool
  • The restaurant industry is notoriously hard to find good talent in, but that won’t be the case for new businesses.
    • People have lost their restaurant jobs, and the talent pool is wide.
    • You’ll be able to find people with years of restaurant experience and professional record who are out of work but will make great employees.
• Government stimulation
  • The government is printing money right now trying to surge the economy and resources will be produced for new businesses.
    • Low-interest loans, subsidized loans, low-risk financing, and grants are all on the horizon to keep the economy moving along and encourage business investment.

Restaurants are still a brutal space and they will never be easy, but part of entrepreneurship is identifying when there is opportunity, and your best time to start a restaurant will almost certainly be in the next year.