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BBQ Businesses fail.

 
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SugarMedia
BBQ Fan


Joined: 03 Sep 2006
Posts: 157
Location: Dallas, tx

PostPosted: Fri Oct 20 06 2:13 am    Post subject: BBQ Businesses fail. Reply with quote

Any experienced F&B people or BBQ owners care to comment on the below quote from another forum? I'm wondering what these main factors are that make it the nr.1 failing segment.

"The number one failing business in the USA is the restaurant business, and the number one failing segment of the restaurant business is bbq. Think about that. It's scary. I'm one of the lucky ones."


Last edited by SugarMedia on Fri Oct 20 06 2:21 am; edited 1 time in total
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DawgPhan
BBQ Super Pro


Joined: 12 May 2005
Posts: 3444

PostPosted: Fri Oct 20 06 2:20 am    Post subject: Re: BBQ Businesses fail. Reply with quote

SugarMedia wrote:
Any experienced F&B people or BBQ owners care to comment on the below quote from another forum? I'm wondering what these main factors are that make it the nr.1 failing segment.

"The number one failing business in the USA is the restaurant business, and the number one failing segment of the the restaurant business is bbq. Think about that."


too many folks selling bad BBQ? or good ole boys that cook good que cant run a business...
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Travis_Creek
BBQ Pro


Joined: 10 Jul 2005
Posts: 581
Location: Aubrey, TX

PostPosted: Sat Oct 21 06 1:20 am    Post subject: Reply with quote

I know the failure rate of new restraunts is high. Maybe BBQ restraunts have the highest failure, because of new restraunts being opened, BBQ restraunts are at the top?
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Dave



Joined: 06 Oct 2005
Posts: 14
Location: Central Illinois

PostPosted: Sat Oct 21 06 7:27 am    Post subject: Re: BBQ Businesses fail. Reply with quote

SugarMedia wrote:
Any experienced F&B people or BBQ owners care to comment on the below quote from another forum? I'm wondering what these main factors are that make it the nr.1 failing segment.


In my experience, the two main reasons for failure are undercapitalization and local taste trends, in that order.

You have to have enough money to see it thru for a good while. Also, many regions of the USA are not savvy to traditional barbecue flavors. Most folks are used to boiled meat that has been highly sauced in an attempt to rejuvinate the flavor that has been boiled out. Sounds silly but that is what a lot of folks expect, due to the bbq chain stores and family backyard cookouts. And for the budding bbq restaurateur, it can be a major obstacle to overcome.

I can't count the number of joints that I have seen open up and specialize in all the traditional smoked meats that one would see in your typical sanctioned cue competition; only to find a year later that chicken, fish, ham, pork loin, etc, are the main fare, with the usual cue stuff offered as secondary entrees, or entirely dropped from the menu.

And once the traditional bbq-style meats take the back seat, their quality will usually will diminish also. Due mainly to staff having to focus more on what is popular. If you expect to serve ribs, brisket, pulled pork that have been prepared like we do in the backyard or at a comp, you will not be able to make any money, due to the excessive time/labor involved.

Also, as a general rule, women will prefer more mild, less fatty meats such as fish and chicken. And what the women desire is where the men must go! Wink

If the potential clientele in your region are not used to the flavor of wood smoked meats, it can be an uphill struggle to get them accustomed to it, or to accept it as something they will pay for on a regular basis. Not everyone is crazy about smoked fatty foods (like we are).

Another obstacle I've witnessed is chopped pork typically contains a lot of fat, and certain population segments just will not accept it, regardless of how good you may think it is.

Running a cue biz can be a very fickle affair, depending on where you are doing business, imlo. This is why some guys will 'back into it' by extablishing a reputation (or market) by starting in catering first, then branching out into a retail storefront after they have a market established for their wares.
Dave
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BBQMAN
BBQ Super All Star


Joined: 13 Jun 2005
Posts: 15474
Location: Florida

PostPosted: Sun Oct 22 06 8:37 pm    Post subject: Reply with quote

Well, well, put Dave!

I don't want the overhead, long hours, and risk associated with a BBQ restaruant. I agree, the lack of funding is a BIG problem.

I have placed a thread under catering relating to doing this as a business, and what it takes.

Our catering business is very succesful, but it sure did'nt happen over-night. There is some competition here, but there are also a lot of potential clients. Plus that, my competition mostly serves up crap, so they really are not competition at all! Wink

Lots of folks make the mistake that this is "easy money". This is far from it, and involves a lot of work, persistence, and the ability to get through the first year or two without expecting to make a living at it. You will not pay for the house on the lake, and a new Hummer your first year in business! Laughing

It is a rewarding business to be in, and can be profitable. For those of you that are willing to give it a try, do your homework, save up some money, and give it a go! Very Happy
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