Opening my first dessert/ice cream franchise. If this were your money, what would you do differently before opening?
I'm about to sign the lease for my first brick-and-mortar business and would really appreciate advice from people who have actually owned or operated restaurants, cafés, dessert shops, ice cream stores, coffee shops, or other food businesses. I'd love for you…
I'm about to sign the lease for my first brick-and-mortar business and would really appreciate advice from people who have actually owned or operated restaurants, cafés, dessert shops, ice cream stores, coffee shops, or other food businesses. I'd love for you to critique my assumptions and tell me what I'm missing. The concept: - Specialty ice cream & waffle franchise - Also selling coffee, iced refreshers, milkshakes and frozen drinks - Chicago suburbs - Roughly 1,600 SF - Open 10 hours/day, 7 days/week - Three owner-operators - Expected average ticket: $13–15 - Food cost target: ~30% Lease 7 months rent abatement during build-out Starting occupancy cost (excluding gas/electric) around $3,000/month Gradually increasing over the lease term Building out the space ourselves (around $130k investment) Current plan Our current thinking is: - Focus heavily on families. - Coffee to drive repeat weekday traffic. - Ice cream/waffles to drive evenings and weekends. - Participate in local events because our average ticket and margins tend to be better there. - Continuously build relationships with schools, libraries, parks, nearby businesses and community organizations. What I'm looking for: If you have actually owned or managed a similar business: - What mistake did you make that cost you the most money? - What assumption am I probably getting wrong? - What KPI should I track every day, week and month? - What operational bottleneck usually surprises first-time owners? - What drove the most profit that you didn't expect? What generated the least profit despite looking like a great idea? - If you could increase net profit by 20%, where would you look first? - What systems would you build from Day 1 that are painful to add later? - What marketing actually produced measurable ROI instead of just "likes"? - What purchases do new owners almost always regret? - What hidden costs should I budget for that most people underestimate? - What should I negotiate with suppliers from Day 1? What technology or automation paid for itself? - If you had one chance to open it again, what would you do completely differently? I'm looking for practical, experience-based lessons that saved you money or mistakes that cost you money so I can avoid repeating them. Even one insight could save me thousands of dollars.
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This is interesting! Thank you Could I dm you? I actually wanna ask how to efficiently implement the tasting policy
Implementing the tasting policy? As in Samples?
Before we did we implementing the rostering system i mentioned and that was a great saver even though it costs money the time saving and management is worth it. What I should of implemented before openign would be the measuring of ice cream on weekly basis constently and having the staff weight all items they scoop. When we started it was a honeymoon phase and we worked there 5-7 days a week so we managed pretty well but as soon as staff came in because we didn't have the checks in place ice cream would go missing which would cost us hundreds to thousands a week.
That's a good question. We've debated on that alot but other operators of this franchise are all opening a similar sized location. We make the ice cream in store
Yes planning to have lots of seating capacity. Maybe almost 40 people
Ran a Baskin-Robbins for years, so a few things that actually moved the needle for us: Rostering platforms like Tanda to onboard/roster and approve timesheet for shifts was a big helper than a spreadsheet and msgs. The automation that paid for itself fastest wasn't front-of-house tech, it was portion/compliance tracking. Manual spot-checks (a manager physically weighing a handful of serves a week) is what most shops do, and it catches almost nothing until someone bothers doing it. Once we automated logging every serve's weight, we had daily data instead of a weekly sample, and it paid for itself in reduced product cost within a few months — faster than most of the "exciting" stuff we spent money on. Biggest thing we underestimated going in: staff turnover cost more than rent in year one, not only because wages are high but because every new hire is slower and wastes more product for their first few weeks, and a specialty ice cream/waffle concept has a real training curve compared to scoop-and-serve. Budget for that specifically, not just base payroll. KPI worth tracking daily rather than weekly: cost per serve against your target, not just total food cost % at month end. Month-end food cost tells you something went wrong four weeks after it already went wrong.
Looking back, was there a system you wish you'd implemented before opening instead of trying to add later?
Of course, happy for you to DM and ask any questions. :)
I just want to say its refreshing to see a non-AI post here. I hope you get good advice. My question: does it have to be 1600 sqft? That's pretty big.
Do you have seating? I went to a cool dessert spot yesterday with a group of friends. There was nowhere to sit. We made do by standing but I am very unlikely to go back because it was too awkward to eat in the small shop.
I have several friends that have been in the food industry, and they’ve all said the same thing - just don’t do it, it’s not worth it. They’ve ranged from established franchises to unique concept like yours (very similar to yours specifically). They’re either miserable and hate their lives or they have closed shop and lost a bunch of time+money. If you do choose to move forward, I genuinely wish you all the best.
Only question is: What local market research did you thoroughly perform to lead you to believe this concept would be successful in the area?
I'd research how a place specializing in iced coffees, frozen drinks, milkshakes, etc. handles the Chicago winters. Visit some of your perceived competition (drive-thru and sit down) and figure out their strengths and weaknesses. Ask what your business' "value-adds" could be relative to what's already out there. Knowing the seasonality in your offerings is critical. Sounds like it's not a place where people will be eating burgers and sandwiches and might choose to have a milkshake or iced coffee with their meal. They'll be making a special trip to go there. Also, if you have a goal of getting repeat coffee drinkers to visit, what are you offering them that's a grab-n-go meal or snack that's easy to handle while driving a car? Breakfast burritos, homemade biscuits worth dying for, etc. You should be creating, costing out, taste-testing and trying out potential items now...gotta create things that are amazing, repeatable and make folks want to drive your way to come get it. What previous experience does your 3-person ownership group have in managing any sort of restaurant, coffee shop or dessert eatery? The hospitality business is a HARD daily grind working with non-tipped, lower-skilled employees who may or may not have a consistent work ethic. It's a LOT harder than you think. Do any of you have hands-on experience working in a commercial kitchen or working directly with food and beverage guests? As some other commenters have indicated, keep a tight control on your food and labor costs. Gotta KNOW your P-mix and make sure you keep as tight of an inventory as possible. A lot of less-experienced restaurant operators don't track their costs consistently and leave $$ on the table. Lastly, make sure your prep kitchen is the correct size to handle what you think you'll have on your menu. Contact your local food vendors and ask for some advice...worst thing you could do is spend too little/too much on your build because you didn't have the right equipment for your menu. A total build-out cost range of $130,000 seems incredibly low to me. Good luck.