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Anton Nemirovich
Restaurant founder
Restaurant project
Read the article of our Author and get new knowledge directly from Up&Down experts
Anton Nemirovich
Triptych: The Cost of Building My Dream Restaurant. #2 - Challenges
«I would like to emphasize the following important point—always leave a sufficient reserve of finances for purchasing goods and working capital.»
Anton N.
Restaurant founder
1
I'll remind you of a brief backstory to the article. I am building a dream restaurant in an incredible location and with various adventures. You can learn all the details by clicking on the previous article. Nevertheless, you can read this informative story from any point—it will be useful and engaging. We are approximately halfway through the construction, and the most anticipated event is happening—the restaurant is only half ready, and the budget is completely exhausted. Now I am faced with a more serious task than all the previous ones. Where to get the money? Against this background, all other problems seem like mere inconveniences. The investor refuses to increase the investment amount, construction has stalled, we have already invested 150K, and in this condition, it can only be sold for 50K—the dream is fading, the castle is crumbling, and only morally strong qualities remain. I definitely feel responsible for other people's money as if it were my own and cannot allow everything to end this way, burying the investor's money and my ambitions in a common grave.
2
Now, there will be a brief lyrical digression, but only for understanding the drama of the moment. It's so customary in our society that there are certain triggers of success and markers of being established as a member of this community. Each previous generation passes on these markers and triggers as the basis of people's existence in society. One of the most important markers is having your own home. In my case, it was a long journey. After getting the education mark in a well-known European culinary school on my resume, my salary increased, and during this period, my wife and I managed to save enough money to buy an apartment, not a premium one, but still. Thanks to my grandmother too! By the time I describe, we had already done some repairs there. A very cozy apartment, a young family's dream. The area might not have been great, but we didn't have a choice. Of course, there was a thought of exchanging it for something more premium, because the house we lived in was social. Sometimes I had to wake up at 5 in the morning due to the noise of a hammer in the kitchen, which was the favorite tool of the neighbor for preparing lunch for her husband. The knocking was quite pronounced! As you probably guessed, it was under this rhythmic knocking in the mornings that the idea came to me of where to get the money for the restaurant. Risking to invest something so valuable and long-awaited of my own for a restaurant was probably close to everyone except me. My dear wife, after difficult negotiations, gave in and once again pursued my dream. A real woman, a true queen! I'm infinitely grateful to her.
So, the money appeared, and the construction continued, and we moved to a new area to a rented apartment. Another partner in the restaurant became my best friend, who had some extra money at that moment. Long dreaming of passive income, he gladly invested them in the project.
I would like to emphasize the following important point—always leave a sufficient reserve of finances for purchasing goods and working capital.
Anton N.
Restaurant founder
3
Finally, the equipment was delivered to the restaurant, and the scent of food filled the air! Almost at the finish line, like everyone else, we faced delays from bureaucracy (which ultimately drained our finances), but the team was ready, aprons were ironed, products were in the fridge, and here it is—the launch of the project. We opened unofficially, only for our own, and tested our kitchen and team until all necessary permits were obtained. What else could we do, gentlemen officials? I would like to emphasize the following important point—always leave a sufficient reserve of finances for purchasing goods and working capital. It's crucial, and without it, things get very difficult and nerve-wracking. That's how we bought outdoor furniture for the terrace based on the residual principle, which was a big mistake. The restaurant should look equally appealing from the outside as well as from the inside, which significantly affects guests' perception of the establishment, especially considering our central location. The moment of opening has come! Congratulations, the dream has come true! I wasn't satisfied with everything, not everything was done as we thought, but managing a project that is already operational is much easier than one that is under construction and not generating income.
Then, worries of a different nature began. Firstly, we opened with a budget deficit and spent the initial time paying off construction debts. This affects everyone, as you can understand—suppliers, staff, ourselves, and investors who don't receive their investments back. Accordingly, the company's reputation drops, and suppliers are less willing to agree to favorable terms—I called this a "hipster" approach on my part. I won't allow such behavior from myself anymore. On this conditionally positive note, let's take a short break. In order for you to understand what awaits you in the next part, I'll say only one thing: the last paragraph describes events in the year 2019.