The entertainment business has changed a lot over the years in my area, and I'm not really comfortable with the situation...major cutthroats willing to play for nothing...a transition to local bar/grill operations and a corresponding lessening, in the eyes of owners, of the importance of music.

A local bar/grill is for sale. Until now, I would never have even considered owning one.

I have a marketing/advertising/music/accounting background, was a bartender in college and have owned my communications company for years.

I know just enough about food to know that it's a hard business and that I really don't know it. I have played primarily in restaurants and hotels for years, and ran a local college restaurant/lounge for over a year for a friend with health problems.

Several acquaintences have gotten into their own clubs over the years...some very successful and some not so successful.

Any experience or advice?

Russ

How bad is it? How low are they going?

Top rate for a restaurant job is $150.00.
Second tier folk s are charging $100.00.
Lot's of people are know offering to play for $75.00.there are two places in town (a bluegrass establishment and a buffet restaurent only who pay in food...one meal per night.

At my job, there are over 25 people a week offering to play for less than my rate. It hasn't been a problem for me, mainly because most play only one type of music that is generally not appropriate for an upscale restaurant. Ability doesn't make as much difference as it used to here. Some operators simply want a warm body on the bandstand.

Russ

I think owning a restaurant is definitely a pretty high risk investment, EVEN when you have a winning recipe.

Owning a nice sportsbar would definitely reduce the risk. I have yet to find a struggling sports bar here in Oregon. Can't go wrong with a couple nice pool tables, other games, 2-3 big screens, 10 smaller TVs, and lots of beer/booze. Having a great air filter also helps.

I'd say IF you decided to go into the business, focus on the 'hanging out place', 'comfort food', 'BEER', 'dancing and other fun activities' aspect of it.

You're only guaranteed one thing in that business... working LOTS of hours. And that hold true whether you do well or bomb. If you find a winning formula, that is, one that's been proven in another city for example, it certainly could work out, but IMO, it's slim odds... lots of competition, many failures. However, if you decide to go for it, I wish you the best of luck.

Glenn

Having worked for Generral Mills in their dining house/foodservice division for 20+ years (in a previous life, lol) I'd want to know a few things before I went anywhere near it...

1) Why is it for sale?
2) How is the location and traffic into the place? Is it free standing, in a strip mall, etc...
3) Does the restaurant have a successful concept and following?

4) Staffing restaurants is virtually a full time gig all by itself. I've run Red Lobsters in PA, DC and OH and found that a GM's job was 70-80% HR related...which didn't leave much time for training, working the dining room, watching your costs properly, ordering, food production, schedules, paying the bills, answering the back door for the endless deliveries, etc.

5) What is the current owners A/P situation like? Has he spent so much that he HAS to sell it?

6) Would you run this yourself or hire managers? Will you offer benefits to your mgt. team and/or employees?

7) Is there a union involved with this place?

8) Open for lunch and dinner? If so, and depending on the volume it might do...count on spending upwards of 60-80 hours a week to keep it going. More if you don't have a mgt. team.

Good luck!

Bill in Dayton

Thanks, Glenn. I know the odds. Fortunately, if I decide to do it, I will not need to rely on the income or borrow money. This is a favorite place of mine, and I have long-time acquaintences who are knowledgable and available to help. The owner of the place I have played for 13 yars will be involved and I'll still work summers there. The accountant in me is analyzing P&L statements.

I mainly want a place for the performance of
good music...a place for the real talent in the area to work (and by real talent, I don't mean me).

The kids are grown and I am semi-retired.

Russ

Bill, I really value your input. The current owner is retiring. He has owned the business for over 30 years.I have played the establishment many times over the years.

It is located in an older strip mall. I recently moved into the neighborhood. Traffic count is 35,000 one way. There are three subdivisions that had 700 houses in them three years ago and will have over 2600 units within 18 months, with more subdivisions on the way. There are over
46,000 residents within a 5 mile radius.
Hours will be 5:00P.M.-1:00 AM.

I always laughed at people who decided to get into this very competitive business and now I'm consisering it....go figure!

Russ

Russ-

Would you consider hiring guys from Dayton?

Not that far away...



[This message has been edited by Bill in Dayton (edited 01-05-2005).]

Russ, If you decide to open your club, and if I'm ever in the Lexington, KY area, I'd love to stop in and play a set with you. Good luck in whatever decision you finally make. Just don't ever forget the music. - Scott