How to Make $1.7M/Year in Restaurant Business
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- čas přidán 15. 06. 2024
- For our regular viewers, Don Lucho’s Restaurant and its owner, Carlo Calisea, are familiar names. Today, we’re following up with this popular restaurant to get more of his insights into how to start a restaurant business-and keep it thriving and growing through unexpected challenges.
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Carlo started Don Lucho’s as a food truck in 2013, the first Peruvian restaurant business in Seattle. In 2019, they added a brick-and-mortar restaurant and pisco bar. Opening a restaurant is difficult in the best of times and the start of the pandemic in 2020 only added to that, but Carlo and Don Lucho’s rose to the challenge, adding outdoor seating that let them keep growing their revenue.
In today’s episode, we’ll dig in deeper with Carlo’s advice on how to open a restaurant that’s built to withstand whatever life throws at it. We’ll learn what he included in his restaurant business plan, and how he’s revised that in the years since opening.
Of course, even the best-planned restaurant experiences setbacks. We’ll hear what Carlo is struggling with today and how he’s responding to those to keep his business growing. Rising costs and staffing problems have been consistent concerns across the food industry over the past 2 years, and Carlo will share his strategies for coping with those issues, along with his other tips for starting a restaurant that’s resilient enough to roll with the punches.
Anyone wondering how to start a restaurant (and keep it open long-term) will want to hear Carlo’s advice! You can find out more about Don Lucho’s online at www.donluchosinseattle.com/.
Looking for more advice on starting a business? You’ll find it on the UpFlip blog: www.upflip.com/blog.
Check out our podcast www.upflip.com/podcast, where you get to unravel how great businesses are built.
And make sure you check out our past interviews with Carlo:
From Food Truck to Restaurant Business (A Recipe for Success) ►
• From Food Truck to Res...
A Day in the Life of an Entrepreneur (Behind the Scenes Look) ►
• A Day In The Life of a...
Resource:
www.upflip.com/academy - Launch and scale your business with our expert-led Academy
Timestamps:
0:00 Intro
0:31 Meeting the Owner
1:34 Tips on Revamping Your Business
2:53 Breaking Down Revenue
3:50 The Key To Balancing Quality
4:41 How To Avoid These Business Mistakes
5:47 Why You Need A Soft Opening
7:35 Social Media Tips and Tricks
9:35 The Importance of Branding
10:36 System and Processes for Online Ordering
11:46 How To Get FREE Advertising
13:10 How To Build A Reliable Team
14:30 Crucial System & Processes Before You Start
16:00 How To Quickly Resolve Issues
17:03 How To Keep Employees Happy
18:13 When To Grow Your Team
19:03 Blitz Time With Carlo!!
21:56 How To Keep Track of Inventory
22:50 When To Use Paid Advertising
24:09 How To Not Lose Money
25:15 Switching Up Your Menu
26:22 How To Deal With Inflation
27:11 Where To Focus Your Time
28:35 Creating The Best Content Possible
#restaurant #restaurantbusiness #howtoopenarestaurant
The UpFlip Academy is now live! Learn from the best in the industry, join here: www.upflip.com/academy
This is very interesting. Thank you!
Thanks for watching Mohamed. Are you new to the channel?
Hey UpFlip. I'm in love with your channels and sharing it with all my friends. I thought I saw a video of a general automotive shop..I think the title was "autoshop with 4 employees makes 1 million a year"
Did that video get taken down? I can't seem to find it
@@UpFlip I just recently discovered your channel. Awesome content, man. Keep it up.
We appreciate you sharing the channel Omar. We have very strict rules on video performance and quality, if the video doesn't meet those rules, we have to take the video down in order to maintain producing quality content. Would you like to see more videos on the automotive industry?
*Every family has a legend who breaks all odds, I believe that is you reading this*
Thanks for watching MrBreakBadHabits. Do you do any type of motivational speaking? You'd be good at it.
@@UpFlipHeh, I'm more into identity shifting so entrepreneurs could actually achieve their goals.
You know it 💪🏽💪🏽
Needed to hear this...
Thank you!!🙌
I will start my own resto in a year or two, I'll be back here and tell you folks I beat all the odds 👊👍👍👍
Soft openings are so under rated and under utilized. We always do at least three soft openings before our grand opening. First is close friends, family, and loyal customers to test the flow and service systems. Second is invite to select individuals through your service community. Third is a quiet opening where we are open to the public but do not put out any marketing. Each of these allow us to tweak and adjust issues and flaws we find in the design or training.
I am kind of old school on my operational numbers. I like using spreadsheets and simple pen and paper to keep track of everything. Although we do use a POS that can dig deep into specific numbers when need be.
When I was thinking about buying a business I ask advice from every business owner I knew. Best advice was from my sister who owns a tattoo shop in Seattle . “Look at the numbers with a critical eye and know it will be 24/7 of your life for the first few years”
Bought a FroYo shop a few months before the COVID19 outbreak 😳
Timing could not been any worse.
Luckily I have a whatever it takes attitude and now we are doing great .
Sound advice and being mentally prepared for what it is going to take , are the best first steps to start a successful business.
Love the Chanel .
Thank you for watching and the support Moto. This is great advice. We love your resilience. What are some other things people should be aware of when they first start out in the food servicing industry?
What an inspiration this guy! Many people think opening a restaurant is easy and they settle with average. This guy is proof that we can achieve anything if we are focused and dedicated!
So true Dejan. Focusing and staying consistent can really make the difference rather someone's business is successful or not😀. Would you ever start a business in this industry?
I’m opening up a restaurant in about a month and this was so reassuring…. I learned so much! Thank you for asking all the right questions too.
Awesome! How did your restaurant opening go?
Worked in the restaurant industry. No joke especially when it gets busy.
Main priority would be taking care of my workers (as well as having bomb food to eat). I do want to open my own restaurant in the near future. Hard work & dedication to anyone who’s on the same path 💪🏼
You will not have any social life as you will be slave for work
I'm Peruvian and I was unaware of the success of Peruvian food in the United States until I saw a documentary on National Geographic about the boom of Peruvian dishes like "ceviche" love from Peru.
Thanks for supporting the channel Rocio! What’s the best dishes to try?
Are you looking employees?
This is the best business channel, very informative!!!more power👏👏👏
🙌We appreciate that Stella. Thanks for watching. Are you new to the channel?
One of the best episodes. I watched it multiple times. Very informative. I just have a small food cart for now, striving for something like this.
Glad it was helpful! Thank you for your feedback!
You asked such incredible questions. Thank you so much!
Great info!! Thank you!!
Thanks for the information, I especially enjoyed the tip about Tip Pooling, great idea...
Awesome video. I'm watching this because I'm a Business Strategy student currently taking an Entrepreneurship class, and I have the task of writing a whole business plan for a restaurant. I'm totally unfamiliar with the restaurant industry and I'm trying to gain as much information as I can about the "typical" operations of a restaurant. I love Carlo's passion. Thanks for the video.
Glad it was helpful! Thank you for watching! ❤
This is gold! Must watch for all restaurant owners
I am looking to follow my dream and open a restaurant concept I have been sitting on for ten years now. So thank you both for the insight. Greatly appreciated 👍
You can do it Tony. 💪Keep taking steps toward your dreams and they will turn out just as you imagine they will. We're glad the video was helpful. What type of restaurant are you looking to open?
You looking employees you can talk me
If your credit is right you can obtain start up funding ASAP Tony and get the capitol needed to start your business
Great candid interview, as always!
We appreciate that jperin001! What other types of business would you like to see on the channel?
@@UpFlip I have seen a video in which virtual kitchen is operating 12 different restaurant of Chinese, Philippines, Singaporean, etc restuarant in one outlet and getting orders online and the delivery boy is delivering the food
Thanks for this information… amazing incite
Glad it was helpful! Were you inspired to start your own restaurant business? ☺️
Wow, this video is so underrated! Television quality!
Thanks for watching Oliver. We're so glad you enjoyed. 😀Have you seen any of our other content on the channel?
@@UpFlip of course! Ive been watching for a couple months!
Please make a video on a Indian food truck , what they serve , what's the process for the licensing and other documents. How much time it takes for total documentation and how much minimum funds are needed to start a food truck.
Keep vlogging , I love this channel. 😊
Thank you Sahil! We’ll keep this in mind!😃Is this a business you’re looking to get into?
@@UpFlip is something I would want to start. and I think it's better to start with a food truck because a restaurant can get overwhelming since it's on a larger scale. a food truck can be like a crash course
Totally a great idea! I love Indian food, and always thought a great idea for a food truck would be Indian burritos. Hell yeah!
i agree with soft opening, i am a head chef, we did a week long soft open.
we were able to take feed back to improve our food, we had issues with our systems which if we were fully open we would of been stuffed, we had issues with menulog which are now fixed but we lost close to $10k 'aud'.
Hello there. Do you mind detailing how you lost $10k during soft opening relating to your systems? much appreciated. I'm currently doing a business plan for my future restaurant and could use every bit of advice I could get. Thank you in advance
@@mardyra hey,
Sorry for late reply!!
Our issues we were having was with our online delivery service ‘Menulog’ we had worked out the average over 10 weeks and had found out we were losing 3000$ a day if we had issues with Menulog. As we were a takeaway only shop ‘which I was strongly against’ and a mix of owners that had no idea how to run a restaurant and wouldn’t listen to any feedback I had to improve or save money also spent a lot of money keeping 25 year+ equipment working and just buying stuff that wasn’t necessary when they didn’t have the funds to support it, I am a strong believer that should should be able to buy something 5 times or so before you buy one. The restaurant lasted 13 months I had left after 8 months cause I have a family to support and had established the business would only last 6 more months. My biggest tip is listen to the people around you, you will miss stuff that others will see. Cost your menu Items with a buffer cause food prices are only going up!!! Most importantly LOCATION is extremely important!!
As always great episode 👏🏼
Thank you! Do you have a business topic you want to see next on the channel? 🤔
@@UpFlip Yes! Many owners talked about the day to day operation of a restaurant but not many discuss about the bigger scope of what it takes to make it.
Is it location? Concept? Community?
It must have all three!
Location? The concept must cater to the community?
I’ve seen many restaurants failed that served great quality foods. Why??
Thank you for sharing!!! :)
No problem Clay.😊 Thanks for watching. Are you currently in the restaurant business?
@@UpFlip I was for several years, had 2 locations open. Closed for Covid, will reopen something new in the coming years :)
Please do some more on restauranteurship ❤
The location question was really good because that is something that most businesses owners don’t think about but it’s really important to your businesses success. He researched the right business location a corner he believed in powerful information 📝.
We couldn't agree more The Champions Playbook.😀 Location can literally make or break a business depending on the industry. Would you ever start this type of business?
@@UpFlip most definitely we believe restaurants are one of the amazing treasures that exist on this planet 🌎 earth. So coming to your CZcams channel and learning as much as possible about the restaurant business is key 🔑 as we sharpen our business and get everything put together for long term success.
We have some really incredible ideas for our restaurant 😎
Great interview
Thank you Tej Talks Property. The restaurant industry will always be in demand in one way or the other. 😀 What other types of businesses would you like to see on the channel?
I love the "hack interrupt!" Great idea to make us wait to hear the tip. Thank you for another awesome video!
Our pleasure Resistakill! Thanks for watching. What tips did you get that you'd like to share with the other viewers?
@@UpFlip I’ll have to rewatch. I didn’t really hold onto anything since I don’t ever plan to make a restaurant.
This guy is living proof that systems are more important that good food. I was there when he use to do social media advertise events with the Seattle Latin groups in town. The food was terrible. Peruvian food is amazing and so unique on it's flavors but his was bland. I was one of the ones that said this guy is going nowhere. He is not a cook at all. But he stuck with it keep developing the concept and he is doing great. Even the food got better. I don't want to sound mean or be hateful to him. If anything I'm saying he is a great business owner. That's the key restaurants need great business owners not chefs or bartenders owning them. Don't let the lack of flavor talent keep you from opening your concept.
I love the blitz questions
Thanks for watching Simply Tasty. Have you checked out any of our other videos?
Great
Still the best channel on CZcams!
Thank you K W! You're awesome!😁 Did you enjoy the video?
Go Peru 😍
😀Thanks for watching home 1624. Are you new to the channel?
Looking to start in chicago
Watching
Carlo Calisea: Que chevere que estés dando a conocer a mas personas nuestra comida, que orgullo siento que un peruano triunfe por allá, felicitaciones mi hermano.
Thanks for watching David. Are you in the restaurant business?
@@UpFlip no I am just a proud peruvian.
Good food too
The most valuable key I've taken away from the video is to delegate your work to different people so that you don't get headaches. Another one is advertising, which can be done on your own if you know what you're doing or you can have someone take care of it
You got some great points in Dario. Thanks again for watching. Would you ever open a restaurant?
@@UpFlip no not an option for me. I'm not a foodie ahhahah
Saqib From
Canada Ontario Toronto
Need help on how to open pizza shop or fried chicken shop.
Please interview some business owner that can share how to begihn fried chicken or pizza shop.
I would like to know is it easy to open up small shop with a small brand and how it can be successful with the big brands in the business.
Thank you for the feedback Saqib. 😀We'll be on the lookout for good pizza and chicken restaurants. You can always start researching companies in your area as well that sell similar products to get an idea of how things are running. Have you started a business plan?
oh man.. as a small restaurant owner myself his headache on inflation is right on the dot.. we took pork off our menu because the prices just didn't make sense anymore.. was 1.30lb then 2.30 then back to 1.40 and now its over 2 again all this within months and the last jump was just Dec to mid Jan. During shelter in place we just straight closed since the beef we were using went almost 300% , chicken went up 200%, pork 200%.. there was no reason to even open. The price fluctuations in recent times have been ridiculous and sometimes adjusting to them just isn't possible. The prices on our menu are high and I feel I have to pivot now to a very different menu because I priced myself out of my original concept, It feels like shit so I have to adapt and hopefully get back to my original concept.
Thanks for watching law. Sometimes it can be challenging to adapt but things will get better, just stay consistent with your passion. How long have you been in the restaurant business?
@@UpFlip little over 5 years myself but almost 6 months was closed because of covid issues (family has always been in restaurant industry). It was a very slow start because our location is rather terrible, practically 0 foot traffic. Took us about 2 1/2 years to finally hit our tipping point and luckily I saved a ton at that point because 6 months ish later covid hit. We do what we can now and try to adapt as much as possible and can only hope customers are understanding but sometimes we just can't help it. We plan on doing a massive menu change in the coming month or so and hope it works out. Working out profit margins while at the same time lowering price point with what I personally feel is better presented both visually and priced appropriately even in these inflated times.
Are you looking employees?
Price inflations are some of the downsides of the business , I admire how organized and structured you are business wise you’ve got all your percentages accurately down to a T when online can I check your small restaurant bro and what type of cuisine is it ?
can any one recomend a webuilder and any one handling social media
how much fund you need more or less to start?
Do you wanna start
I am really curious about the net profit of this place also, Is clover the POS system as well or?
It really depends on the time of year The Cash Flow. The POS may be clover as well. Are you new to the channel?
Restaurant profit margin is approximately 3-6%
@@anthonycaruso3688
😱😱😱 3% net oh my goodness i hope not!
He's winning $140 thousand a month is good
I think I'd like this channel if it focused more on profit than revenue. Revenue is purely irrelevant on its own. Profit gets buried in the videos somewhere.
I hope that's useful feedback. Revenue makes more clicks, though!
We welcome all feedback Matt! 😀 We feel both are important as you can't have one without the other. Do you think there's a way we can place focus on both?
@@UpFlip Thanks for the reply! I think you could retain the clickbait AND add value by saying "Bringing in a revenue of $250,000, profiting $75,000" - like just fire off the profit every time you say the revenue. As a person who actually runs a business and wants to build more I think it would be much more engaging and help me get excited about the business being featured.
@@mattgeerts1466 Matt thanks for the feedback. It wont be possible because that will make the titles way too long, the shorter they are the better they do. We always ask about their profit margins though ;)
@@UpFlip oh I get it, not in the title. At least not burried 3/4 through a video would be nice, and it wouldn't hurt to just make it a habit to say both at once rather than talking about revenue many times and only mentioning profit once.
I'm not telling you how to do your job, I'm telling you why as a viewer I click away from your videos or skim through them. I'd be much more engaged to know if the person I'm sitting here learning from is even doing a good job, and revenue is not an indicator of that to me.
Thanks for the dialogue!
Does tip pooling really work? I would hate that. If a server isn't pulling their weight and I am bringing in bigger tips that doesn't seem fair either.
Makes sense. Tip pooling can be beneficial for servers who may not receive as many high-paying tables or who are new to the industry, as they can benefit from the pooled tips.
@@UpFlip I get that, but how do you keep experienced servers who have worked hard for their experience and tips who have to then share happy? How do you keep servers from slacking off knowing their tips will be subsidized by harder workers? I'm genuinely considering this as an option. But I can see getting discouraged if I had to share my tips and felt not everyone was pulling the same weight
What's the profit though
To learn more about it, please keep on watching! ☺️
This guy is awesome
He's a great guy. 🙂What type of business are you in TeKeni?
@@UpFlip business development
Is this how much the guy's salary is or is it just how much the Restaurant gets?
peruvian food = succes
Yes, it's delicious Anthony. Are you new to the channel?
Can you please do an interview on how to run a convince store
Sure Siyanda, we'll keep this is mind. Are you currently in the convenience store business or thinking of getting into it?
@@UpFlip yes I am thinking of getting into the convince store sector
Can you do one on a CBD business?
This is a possibility, Adam. Are you currently in the CBD business?
@@UpFlip I am! The name is Santa Fe CBD.
@@UpFlip Would love this as I'm in the early stages of creating a CBD business, would be so useful!
1.7M not 1.7K
Thanks for watching Austin. $140,000 per month depending on business, sales, etc. Did you enjoy the video?
Headline reminds me of a joke I heard once: How do you make a million dollars in the restaurant business? Start with two million.
Interesting Josh. Are you currently in the restaurant business? Do you think it's really possible to make it in this industry without a high amount of startup?
@@UpFlip The joke is that if you start with two million, you’ll end up with one million because restaurants are awful businesses.
@@JoshPitts530 He understood the joke, that’s why he asked you if you think it’s actually like that or not
@@coltsgood99I wish it was that easy. Too many variables to consider on a case by case basis although I’ve personally seen too many businesses open without doing a break even analysis and cash flow projection.
How many people here are opening a restaurant?
🙌🏽
Thanks for watching Cesar. Did you enjoy the video?
well since most restaurants net about 5% margins thats what about 85K ? to share with investors to service loans? who cares what you gross? that is immiterial !!! if you can prove a net 10-15% now you have something!! dont mislead people!
What happened to the mechanic one?!
Yup I was looking for that video
Thanks for watching Eksfitness. We have very strict rules on video performance and quality, if the video doesn't meet those rules, we have to take the video down in order to maintain producing quality content. Would you like to see more videos in the automotive field?
@@UpFlip yes! That would amazing! Was a decent video, understandable to take it down if it’s not up to par. But an automotive/mechanic take would be awesome! Thanks for the reply! Always watching!
Can we not exaggerate 1.7m in revenue.... if I make 100m a year in revenue but my costs to do business are 99.99m I made like 30k after tax - the way you discuss the health of this healthy business is mis guiding lol
Are you looking employees?
$1.7M?! Wow. Congratulations. I always hear that restaurants have such low profit margins.
We appreciate your feedback The Missing Tile. It depends on the restaurant. Would you ever get into an industry such as this?
It's 1.7m in revenue, not profit....
@@yellowboat8773 what's the Profit
@@amishbhadwa7104 60 - 80k i think
I really wish you would stop marketing business success in revenue. Revenue does not mean everything. If I make $1m in revenue but have $1m in expenses then the business is a failure
Thanks for the feedback Tommy. Revenue is just one part of a business. Have you checked out our latest video?
@@UpFlip I understand though that most businesses probably don't want to talk about profit, so makes it hard for you to make a video on their successes
Can you do a massage therapy business?
We'll Keep this in mind Kellum! Are you currently in this industry?
I own a recording studio if you guys ever want to do a video about our industry.
Studio 194
Send us over an email Studio. How long have you been in the business?
@@UpFlip 2 yrs
I love the shirts and have bought several. Want to really help veterans? stop calling it suicide prevention, and call it Helping Veterans Living a Better Life. What will help even more? Visiting and spending time with vets who are having negative thoughts.
Anyone want to design a website for your restaurant, I will design Free as a help
Thanks for watching All in All. Is your business website creation?
@@UpFlip Yes bro as a freelancer. anyone around your circle who want to design a website for Free?
@@dnacinema715 hey I need help for my restaurant
I would like restaurants to pay a livable wage, I'm tired of working myself to death and still not being able to pay rent.
How to run a successful tree care company ????!!!
Thanks Biggz! Have you started doing research on this industry?
Yes please
Are you looking employees?
So after all the costs and the tax man he isn't taking home 1.7 so not even half that.
Moron, He has to pay for food, equipment, salaries, insurance. Restaurant profit margin is approximately 3-6%
The take home can vary Bat Man. When your doing your passion a lot of times numbers aren't the first feeling of success. What type of industry are you currently in?
Kick myself in the head
Bring it down to the t 16:25
Dialed in 16:28
The restaurant industry can be very exciting. Did you enjoy the video?
Don't fool people, it's not good. It's not a "restaurant" it's a parody of a restaurant.
Worst business in the world...Best business; Open a pizza/steak shop in the philly area...Have good food, and you'll make a lot of money...
Thanks for watching Rob. Are you in the restaurant business?
@@UpFlip Nope but, I've been building and remodeling them for 30 years... I've known quite a few...Seattle, where that restaurant is located, is night and day to here on the east coast...The competition is Fierce.. When the economy pauses or long stretches of cold or HOT weather occur...Those bills pile up... Statistics bear out that it's one of the worst businesses to own. But I hope they found a nice niche...
Did not enjoy this host at all. He cut the owner off multiple times, didn't have a great vibe. I enjoyed the other host more.
We appreciate your feedback and we'll look into this. Thank you.
@@UpFlip I appreciate the content!