The Right Fit to Open a Restaurant

When I was consulting, I met a potential new client who was eager to open a restaurant. She was clearly bright, articulate, and commercially experienced, with a strong background as a senior executive in a corporate organisation employing over 1,000 people. Her thinking was structured, her ideas were modern, and she spoke confidently about emerging food trends and evolving customer expectations.

On the surface, she presented well. She had energy, ambition, and a willingness to invest. She had secured approximately €200,000 in funding and was keen to begin the process immediately. Like many entering the hospitality space from outside, she was enthusiastic and inspired by the concept of creating something new.

However, as the conversation progressed, a number of concerns began to emerge—some practical, others more fundamental.

The Reality of Personal Commitments

One of her first concerns was how she would balance the demands of the business with her personal life. She has three young children, currently supported through a combination of childminders, pre-school, and junior school arrangements. Her question was simple, but telling:

How can I juggle the restaurant with my family life?

This is not an uncommon question, but it is often misunderstood. A restaurant, particularly in its early years, does not operate within fixed hours or predictable structures. It demands presence, often at the very times when family life also demands attention. Even experienced operators struggle to balance this.

Misunderstanding Cash Flow

Another concern raised was financial. She asked whether she could begin taking a wage from the business as soon as the company bank account was opened, not when the restaurant became operational, but from the outset.

This highlights a critical misunderstanding of how restaurants function financially.

Restaurants are cash-hungry businesses in their early stages. Capital is required for:

Fit-out, equipment, staffing, stock, licences, legal and administration, marketing and working capital

Revenue does not begin until the doors open, and profit, if achieved, comes much later. Drawing a salary before the business generates income places immediate pressure on already limited resources.

Lack of Industry Experience

More concerning, however, was the complete absence of experience in the hospitality industry.

While she had assembled a team of architects, designers, and contractors to create the physical space, there was no operational backbone behind the project. No understanding of kitchen workflow, service standards, supplier relationships, cost control or staffing realities.

Restaurants are not design projects. They are operational businesses.

Concept Without Context

Her concept was based on current trends, and she had a general idea of her target market. However, she had not yet identified a location for the restaurant.

This presents a fundamental flaw. In hospitality, location and market define the concept, not the other way around. Without a defined location, there is no confirmed customer base, no understanding of local demand, no clarity on pricing tolerance, and no insight into competition. Designing a concept without anchoring it in a real, viable location introduces significant risk.

The Chef Strategy

Her plan to recruit a head chef from Singapore and relocate him to Dublin added another layer of complexity. While international talent can bring innovation, this approach raises several practical and commercial concerns.

This chef may be brilliant, but having never been to Ireland, the chef had no familiarity with Irish suppliers, which may not be an issue if the owner has. The chef had no understanding of local customer preferences, no existing support network, and no understanding of workplace relations in Ireland.

There would be significant relocation and accommodation costs and a risk of cultural and operational misalignment.

A chef does not operate in isolation. They must integrate into a local ecosystem, something that takes time, experience, and support.

Lack of Operational Involvement

Perhaps the most critical issue was her intended level of involvement.

She made it clear that she did not wish to be engaged in the day-to-day operation of the restaurant. Her interest lay in the creative and conceptual side of the business, not in its ongoing management.

This is where the model completely broke down. Restaurants are not passive investments. They are hands-on, detail-driven operations that require constant oversight. Even with a strong management team, the absence of engaged ownership often leads to declining standards, financial inefficiencies, staff disengagement, and a loss of direction.

People who own restaurants, who don’t engage in operations, usually have a top management team and an oversight consultant. The consultant is not the accountant, so many people make this mistake.

The Commercial Reality

For this particular individual, the restaurant industry, at least at this time, was not the right path. Her corporate background suggests an environment where teams are established, structures are defined, and resources are available.

Hospitality offers none of these certainties, particularly at the start-up level.

Her available funding, while substantial, is unlikely to be sufficient when measured against the true cost of opening and sustaining a restaurant. Additionally, financial institutions are typically reluctant to lend to first-time restaurateurs without proven experience.

Combined with limited time, lack of operational knowledge, and a desire for minimal involvement, the risks increase significantly.

The Right Fit

There are many individuals drawn to the idea of opening a restaurant. It is an industry that carries a certain appeal, creativity, atmosphere, and identity. I explore this in more depth in my upcoming book.

However, successful restaurants are not built on ideas alone. They require operational understanding, time, and presence with knowledge, financial discipline, adaptability, and resilience.

Opening a restaurant is not comparable to buying shares or investing in property, where one can step back and wait for returns. It is an active, demanding business that tests both the individual and the model continuously.

With the right fit, meaning the right person, the right experience, the right level of commitment, and the right structure, there is every chance of success. Without these, even the most well-intentioned concept will struggle.

By: David P.Ellis