Don't make his mistake and invest in tomorrow with money you need today.
The restaurant owner said to the consultant:
I don't understand what I did wrong.
The restaurant is luxurious, the building is large, the equipment is excellent, and the entire area is full of new projects with a strong future.
The consultant asked him:
When will its future be strong?
He replied:
People say that in 4 or 5 years, the area will be full of residents and activity.
The consultant said:
So, who are you opening the restaurant for today?
The restaurant owner fell silent.
The consultant said:
You studied the area that will exist after 5 years and forgot to study the area that exists now.
You built a large building, a luxurious decor, a kitchen with high production capacity, and burdened the project with operating expenses suitable for a fully developed area.
But around you, there are still buildings under construction, empty units, low population density, and street activity less than what a project of this size needs.
The restaurant owner said:
So, the location is wrong?
The consultant said:
Not necessarily.
The location might be excellent in a few years.
But the size of your investment is wrong for the size of the market that exists today.
You could have started with a smaller project with lower operating costs and grown with the area's development.
Instead of building a project for the year 2030 and asking it to pay its expenses from 2026 sales.
The restaurant owner said:
So I bought the future, but I'm paying for it every month.
The consultant said:
Exactly.
Rent, salaries, electricity, maintenance, and raw materials won't tell you to wait until the area is developed.
Don't make my mistake.
Before you get impressed by a new area, inquire about the current density, not just the expected one.
Study the street activity, the number of residents, purchasing power, competitors, average bill, and the sales the location can currently achieve.
And then, make the size of your investment match the existing market.
Because a promising area might take 5 years to develop.
But your capital might not wait.
Mohamed El Shenawy
Consultant for establishing, operating, and developing restaurants and catering
Founder of Bait El Matame Restaurant Company
I help you study your project before establishment, choose the location, determine the appropriate investment size, build an operating system from scratch, hire staff, control costs, and set prices.
I also help catering project owners calculate meal costs and pricing, and determine the appropriate daily price for tenders.