A little background before I explain our situation:
I(24m) have 10 years in the restaurant industry, the last 5 years I have been in management, and the last two years that managerial experience has been for a corporate setting, giving me a better understanding of P&L, AvT, and proper team development and cost of sales control. I’m currently ServSafe certified as a manager, and as an instructor/proctor and have completely dedicated myself to the food industry.
My wife(27F) also has several years of restaurant experience as a cook, server, and bartender. She is also certified mechanic, diesel mechanic, electrician, welder, etc, and has been a stay at home mom since we had our daughter 2 years ago.
With that out of the way, I have a handyman who does repairs on the restaurant that I currently help manage, who has a connection that is looking for someone to turn his property into a functional restaurant/bar in a small town in Montana, less than an hour from where we currently reside. The property was previously a restaurant, though it hasn’t been operational in 5+ years. The owner of the property is offering 5 years rent free for the building which has the restaurant on ground level, an apartment upstairs, and a basement. The owner also holds a current full liquor license for the building.
My wife is familiar with the building already, as she grew up in the town that it is in, but we haven’t seen the state of the building yet, as our connection only told us about this opportunity yesterday and I told him I would consider it. Today I got a call from my handyman telling me that he has gotten in contact with the owner and he wants to sit with my wife and me next week and go over details.
With my experience, I can competently develop a team, including the food safety certification of managers and cooks, and safe alcohol serving certifications for FOH staff, as well as manage book keeping’s, inventory, orders, and general day to day operations. My wife could handle a good hand full of minor fixes that arise with the building and equipment, as well as be an asset for the operations of the restaurant.
Where I lack experience is in the set up. I have never opened a restaurant, I’ve never owned a business and gone through the steps of permits, creating a kitchen that is compliant with the local health/fire department. I have plenty of recipes that I have come up with over the years, but have never developed an entire menu that includes calorie counts. And the real kicker is that we have no money. I’m barely supporting my family off my steady income already, and because of this, both my credit and my wife’s credit are completely tanked, making it impossible for a bank to consider us for a business loan.
I guess my questions are:
Am I about to get in over my head and take on a task that is going to put too much strain on my family, given my lack of experience in the set up phases of opening a restaurant?
With my current financial situation, is it even feasible to pull any of this off/ for the owner of the property to risk investing the money it would take to get the business off the ground?
Would I be making a terrible mistake, putting my family at risk in pursuit of what might just be a pipe dream?
Thank you for reading and for any feedback. I’m more than happy to answer and questions.
Update: After considering everyone’s advice on here and talking it over with my wife, we decided to decline the offer.
We were told yesterday though that he was willing to cover the start up costs.