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| Major Adjustment at Work | Rate Topic |
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| Posted: Thu Apr 3rd, 2008 02:46 am |
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1st Post |
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Simon_Leung 3T WIS 
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Earlier in the week I've posted that I will be working for 8 hours rather than 12-17 hours per day in the kitchen of the restaurant. (RE:March31). I had dinner with the General Manager, who is also the co-owner of the restaurant along with the owner as well. The three of us sat down to discuss my new job position and of course, my immediate thought was that I would be promoted to Executive Chef. I regard myself as a cook, even though my job description is Sous-Chef. Instead what they had in mind was much more than I had ever anticipated. Having been working at this restaurant for 7 years now, I thought what possibly we're these two had in mind? So, as I was eating my meal and talking about the current situation of the restaurant's finances. That they wanted a third partner--another co-owner to be exact. The two of them looked at me. "What?" I asked...sounding somewhat confused. "We want you to be that third partner." The GM replied. I responded "Is this some kind of belated April Fool's Day Joke?" It turned out that it wasn't. The owner said "To be in the partnership for my share would be $192,800." I told them that I don't have the kind of money needed in the partnership. The GM got up from the table in the middle of his meal,went to his office and 20 minutes later. Is a done deal...my portion would be financed through the restaurant's bank account. I had mixed feelings because I had never owned a restaurant throughout my 20 years in the Food and Beverage Industry. Being 37 years old and single this was the hardest decision to make for myself. After the meal, I went to the bar and the owner joined me for a glass of Remy Martin, to what he thought was a celebration. I didn't like the idea because it was rather embarrassing for me not to have this kind of money to begin with. I'd always loved French Cuisine more than any other. I admit I love food more than some of the gilrfriends that I had in my life, but that's a different story. At this point, I looked at the owner and told him that this is not what I had in mind. "It's either I go back to the kitchen and work or I quit." "But why?" he answered bitterly. "I'm not good enough! There are far better chefs out there than myself, I can assure that if you offered a position to one of those guys. They'll be very happy to work here." I explained. "I don't want a new guy,especially someone in their 20's is because they don't have the drive, the passion and commitment--that I see in you. Think about your decision." The owner responded as he walked away to greet the guests. I have one day to decide if I have a job or not. Last edited on Thu Apr 3rd, 2008 02:46 am by Simon_Leung |
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| Posted: Thu Apr 3rd, 2008 02:56 am |
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2nd Post |
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Skipdawg 3T WIS 
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Simon it is a great opertunity. And not sure if you thought about it but if you are a third owner/partner why could you not put your self in the kitchen for as many hours as you would like? ;) But yea sounds like you have some thinking to do. But weigh out the pros and cons carefully. In the end do what you want to do and feel comfortable with doing. :)
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| Posted: Thu Apr 3rd, 2008 03:29 am |
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3rd Post |
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Simon_Leung 3T WIS
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My main concern was there were too many What if 's. Throughout the dinner-meeting I did't have a chance to give my side of the story. I felt as though I was steeping on someone's shoes which where too big for me to fill. My personal perspective is that the cons outweighed the pros. I was on the phone with the GM and the owner before I logged back in,to explain myself in a clear and concise manner about this situation. I've decided to go back to work in the morning and take Friday off to think about this. I'll keep you updated....
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| Posted: Thu Apr 3rd, 2008 08:19 am |
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4th Post |
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Cellular Amps 3T WIS 
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Since I don't know you or the restaraunt, my question would be why do they need a third parnter, is business good? Have you looked at the books, maybe had an accountant look at the books? I think business when someone wants you to join an existing business. The obviously have a major reason for wanting a third partner. Of Course they may also be thinking that you have been there for as long as you have, and want to offer you something more then just a pay raise. I knew a guy when I lived in VA BCH, VA that was very well off, he got along very well with his accountant, not only did he hire his accountant away from the firm he was with, but made him a partner in his business deals... they are both exteremly rich right now. Opprotunities like these only come along once or twice in a lifetime... If I were in your shoes I would look at all the angles, and remember if you do turn them down the position may never be available again.
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| Posted: Thu Apr 3rd, 2008 09:49 am |
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5th Post |
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scottran 3T WIS 
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Simon, I would definitly ask to see the books and have an accountant look them over. My wife is in the restaurant business. She just got her food service management degree. The failure rate for restaurants is very high. I had always wanted to open one but it is a huge risk I am not willing to take. I dont know about anywhere else but, I know here restaurants are having a rough time and I believe its going to get worse. Having been in business for 14 years now, I have had other garages approach me to buy them out. Turns out they were on a sinking ship. Without me being there and seeing the situation, sounds like they are in need of a cash infusion. Here are some things to think about... Do they keep the pantry full? Do you see them cutting corners anywhere? Have any suppliers demanded COD when delivering goods? Are they trying to get more done with less people (such as yourself working 17 hr. days)? Is the equipment and building being maintained? Is therea steady cover rate or have they been dropping off? WILL YOU BE ABLE TO GET ALONG WITH YOUR NEW PARTNERS? Do they pull their fair share of work? Will you be the one working while they stand around and do nothing and reap the benefits? These are just a few things I would be looking into. I am also very leery they wanted you to make a decision on the spot. Going in debt $200K is a big decision. I wish you the best of luck. Scott
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| Posted: Thu Apr 3rd, 2008 10:27 am |
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6th Post |
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DEMO Guest
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Excellent advice. Check into this carefully BEFORE you make any decisions and best of luck. scottran wrote: Simon, I would definitly ask to see the books and have an accountant look them over. My wife is in the restaurant business. She just got her food service management degree. The failure rate for restaurants is very high. I had always wanted to open one but it is a huge risk I am not willing to take. I dont know about anywhere else but, I know here restaurants are having a rough time and I believe its going to get worse. Having been in business for 14 years now, I have had other garages approach me to buy them out. Turns out they were on a sinking ship. Without me being there and seeing the situation, sounds like they are in need of a cash infusion. Here are some things to think about... Do they keep the pantry full? Do you see them cutting corners anywhere? Have any suppliers demanded COD when delivering goods? Are they trying to get more done with less people (such as yourself working 17 hr. days)? Is the equipment and building being maintained? Is therea steady cover rate or have they been dropping off? WILL YOU BE ABLE TO GET ALONG WITH YOUR NEW PARTNERS? Do they pull their fair share of work? Will you be the one working while they stand around and do nothing and reap the benefits? These are just a few things I would be looking into. I am also very leery they wanted you to make a decision on the spot. Going in debt $200K is a big decision. I wish you the best of luck. Scott Last edited on Thu Apr 3rd, 2008 04:19 pm by |
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| Posted: Thu Apr 3rd, 2008 01:30 pm |
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7th Post |
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YARGH 3T WIS
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I agree with the expressions of caution that others have made. Obviously, I don't know you, your business or the potential business partners, but there is a general rule of thumb to go by here: if a business opportunity is excellent, then a person will do whatever he possibly can to reap as much of the benefits for himself as possible. Conversely, if a business is failing, a person will want to divert liability to as many places other than himself as possible. As others have said, you should get an accounting of the businesses books before you even consider this. Investing in the bar/restaurant business is, from a bottom-line perspective, one of the riskiest business ventures that you can get involved with. Also, you should evaluate whether these people are ones who you could get along with personally, and who would treat you like a "real" partner, and not a silent one (unless that's explicitly the arrangement). Understand as well that if there are to be three of you and those two are already in it together, they can collectively run the show anyway, since their two votes will always be greater than your one. Also, you need to take stock of the money necessary to do this and evaluate what other kinds of business opportunities you could take advantage of with it. Like others and myself have stated, the restaurant business is a pretty dicey place to invest your life savings, since so many of them fail. If you've got a yen to throw a ton of money into a business, consider whether there is there some *other* business that you'd be better off sinking $180K into? If being a restauranteur is what you're after, you need to consider how else you could do it, rather than limiting your decision of whether to be a business partner to this particular business. If you have determined that this is a genuine opportunity and not just a ploy for the other two to get a cash infusion, you absolutely need to find an experienced attorney to represent you when the partnership agreements are drafted. And try to casually mention the fact that you will be looking at the numbers and getting legal representation to the other two guys, so that they know they're not dealing with some rube, if in fact that is what they are anticipating. Also consider that if this offer is being made from a genuine place, you could possibly parlay it into just a pay raise, rather than a partnership stake -- if what they're really after is securing your cooking skills, then they should be willing to pay for them, even if you turn down their partnership offer. And if what you're really after is just a better paying job in the kitchen, then this option could work best for all of you. And hey -- if this is a legit opportunity made by a couple of people running a healthy business who really just are impressed with your work and your professionalism and are doing this because they really are that impressed with you, then congratulations and give this some serious thought. It could be the difference between doing well professionally, and doing REALLY well.
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| Posted: Thu Apr 3rd, 2008 01:37 pm |
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8th Post |
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YARGH 3T WIS
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One other thing -- I don't like how they gave you such a short amount of time to make such a huge decision. If you were in their shoes, what are the kinds of things that would motivate YOU to give somebody else between 24 and 48 hours to make a $200k decision. The only things I can really think of are: 1) a desperate need for money; or 2).... I'm drawing a blank here. Would you buy a house without having it inspected?
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| Posted: Thu Apr 3rd, 2008 04:13 pm |
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9th Post |
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KenC Admin 
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Simon...make sure the accountant you hire has an expertise in the restaurant business so that he has knowledge of where things might be "hidden"...each business has it quirks. You do have an advantage knowing how many meals are served each day and you should know basically what the cost of goods are to prep the meal and basic salaries for the rest of the staff just from working there. Additional thought are, get a good contracts lawyer to protect you if you should decide to go ahead. A 2-way partnership is difficult enough, but with 3 partners, 2 can always carry the vote. You will need a good buy-sell agreement and many other safeguards to protect your position and your equity. Walk softly!
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| Posted: Thu Apr 3rd, 2008 04:26 pm |
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10th Post |
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Gregger 3T WIS 
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Congrats and be careful....it could be to bear the burden......As others stated above...check with a bean counter...
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| Posted: Fri Apr 4th, 2008 12:45 am |
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11th Post |
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Simon_Leung 3T WIS
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I've went into work to tender my resignation because I felt insecure about last night's events. I've wound up phoning some friends that I knew,who gave me a new job offer. I start my new job on Tues. working for an 4-Diamond hotel as a Food and Beverage Director. Some of my duties would be over-seeing the operations of every kitchen in the facility, working within a budget provided by the Restaurant Manager,Catering,Banquet and Sales Department. Organizing daily meetings with each department head along with the General Manager / VP of Operations. This is the most information that I can give due to the atmosphere of legality from the documents that I signed earlier this evening.
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| Posted: Fri Apr 4th, 2008 01:16 am |
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12th Post |
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Skipdawg 3T WIS
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Sounds good Simon. Best of luck and much sucess in the new venture. ;)
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