RobertJ, I am aware in Canada we have all kinds of developement programs, and all are done through chartered banks. However, Canadians are conservative and banks see restaurants as huge risk. Maybe I am ready to just find some good financing.
robertj, what is a disaster loan? It sounds like I don`t ever want one.
Thanks for your inclusion in our conversation. I do know most of what there is to know about lending in Canada. I am a business grad from UWO and got talking to Winston who has had some bad experiences in the restaurant business.
Is a disaster loan a ticket to Tahiti?
Winston, I really appreciate the arms length thoughts that you offer and obvious experience in my field I want to continue to correspond with you. I think you miss understood me. I am making money now finally and am proud as hell of my determination and that won`t end. My facility is quite amazing. When I am done with the patio, the facade of the restaurant, I will officially have claim to a fine dining restaurant that seats 60 people, a lounge that serves a dual purpose with weddings that seats 30 people, a beautiful banquet hall that seats 175 people, an outdoor facility that I developed (everyone thought I was nuts) and free of rent because the septic bed makes it impossible for the landlord to build, and a 110 seat patio. You seem to want to let me know about failures that make you sell. I am not going to let this venture fail because there is no real reason to let it fail (you need to taste my food). That is why I am looking for growth financing. I am also willing to tell you in this open forum that my monthly rent for everything that I described is $7000 /month. Peanuts.
Here is something else I have been working on (like I said this situation has many more complexities but i want your thoughts because of your experience). The entire plaza that I am in is under power of sale (you can see it through agents) and I am the reason it has become valueable. The plaza is selling for about $1.2 million and worth about 1.6 million. I have been trying to find local investores to help buy my portion of the building which the landlord has agreed to do. I have also set up my wife Yvonne in the same plaza (www.photographybyyvonne.com) so we lease 65% of the plaza. I am dealing with people who want to buy the building so the facade of the house has been made clear to them. I hold all the cards.
By the way, I am doing all this while I do menus, cook, and everything else.
To answer your question, I am looking for an aggressive $60,000 for the business growth, AND OR $200,000 down payment and $400,000 mortgage to let my rent ($5000/month) go into equity. No different than buying your first home!...I did that too!
Thank you again, still very interested in your thoughts.
ChefLong3/12/2008 12:35 AM
Thank You Winston for your intersest. There are 4 basic reasons that my business has not reached near its potential. 1.) When I do a wedding of 140 people or more I must close the restaurant because I don`t have enough washrooms. 2.) I have recently received zoning approval for a 100 seat patio, Londoners love their patios especially after the winter we are having. The patio will create a completely new clientele for 5 months of the year. The restaurant attracts an older clientele that is special occasion driven (fine dining). The patio will bring in a much more casual diner and more often. 3.) I have always right from opening day been under financed. I am not able to spend near the dollars on marketing that I should. 4.) The restaurant is in an old house which is very nice, however when cars drive by the ficade appears nothing like a restaurant. 30,000 cars drive by the house each day and nobody knows there is a great restaurant inside. I am missing out on incredible exposure!
My wedding business makes me a great margin and is very easy to market. Then the restaurant snatches about half of that margin away. If my restaurant would simply break even (should not be an impossible task) I would double my profit. Growth financing to take care of the above 4 issues would create the ability to, in the worst case, make the restaurant break even.
There is even more potential, ie. outdoor facility but you have my situation in a nut shell.
I look forward to your thoughts
Thanks again for the interest
Chef Brian Long