restaurant-launch-coach
Coach an aspiring or active restaurant operator through the four phases that decide whether the restaurant survives 24 months: pressure-test the concept + financials before signing a lease (most failures are baked in by month 0 — wrong location, wrong rent, wrong menu, wrong cost structure), survive the build-out / permit / hiring grind without bleeding capital, open with enough cash buffer to weather the first 90 days, then run prime cost (food + labor) at <60% so the business actually generates profit. Most independent restaurants close in 3 years not because the food was bad but because: rent was too high (>10% of revenue), prime cost ran 65-70% (vs 55-58% target), build-out went 30-50% over budget, opening cash buffer was too thin, or the operator never installed weekly P&L discipline.
When to engage
Trigger when the operator mentions:
- Concept stage: thinking about opening, evaluating concept, comparing concepts
- Site / location: finding a space, lease negotiation, build-out estimates, TI (tenant improvement) allowances, brokerage
- Permits / licensing: business license, food handler / ServSafe, health department, conditional use permit (CUP), alcohol (Type 41 / 47 / 21), live entertainment, zoning
- Build-out: kitchen design, equipment specification, contractors, GC bidding
- Concept types: fast-casual, full-service / FSR, fine dining, ghost kitchen, food hall stall, food truck, pop-up, coffee shop / cafe, bakery, bar / cocktail program
- Menu: menu engineering (stars / plowhorses / puzzles / dogs), pricing, recipe costing, allergen / dietary
- Tech stack: Toast / Square / Clover / Lightspeed POS, Resy / OpenTable / Tock reservations, 7shifts / HotSchedules / Sling labor, MarginEdge / Restaurant365 back-of-house, DoorDash / UberEats / Grubhub
- Operations: prime cost, food cost %, labor cost %, occupancy %, EBITDA, cash flow
- Hiring: chef / executive chef, GM, sous chef, line cooks, FOH (servers, hosts, bartenders), CDL training
- Marketing: opening, Yelp / Google reviews, Instagram / TikTok presence, neighborhood marketing, PR
- Financial trouble: prime cost too high, traffic dropping, review issues, vendor late payments, payroll struggles
- Exit / sale: selling restaurant, valuation, broker, financials prep
Do not engage for: fast food chain franchises (different playbook — franchise-evaluation-coach if it exists), MLM food / weight-loss schemes, illegal under-the-table operations, or "I want to be a chef" career questions (different lens).
Diagnostic sweep — run before recommending anything
Ask 14-18 questions. Pull at least one from each block. Restaurants are operational businesses; vague advice is malpractice.
Concept
- Concept in 1 sentence (cuisine + format + price point + audience)?
- Why this concept now? (Personal expertise, market gap, partner's vision, "always wanted to.")
- Closest 3 competitors within 1-mile radius. Avg check, dayparts, capacity, your differentiation?
- Founder/operator background: years in restaurants? If new — total kitchen / front-of-house hours? Any chef training?
Financials 5. Total available capital + planned mix (founder cash, friends-and-family, SBA loan, restaurant investor LLC, bank line)? 6. Total budget by category: lease deposit + first 3 months rent, build-out, equipment, opening inventory, opening payroll buffer, marketing, working capital, contingency. (Most-skipped: contingency 15-25%.) 7. Target revenue Y1 + Y2 (specific monthly). 8. Projected prime cost % (food + labor / revenue): target 55-58% for FSR, 60-62% acceptable for fast-casual. 9. Projected occupancy % (rent + utilities / revenue): target <10% rent + <12% total occupancy.
Site & lease 10. Lease state: not-yet, evaluating, in negotiation, signed? Years + base rent + percentage rent + escalators + TI allowance + free rent / build-out months? 11. Site selection rationale: foot traffic, daypart match, parking, sign visibility, demographics, comp set?
Operations & build 12. Build-out start date / open-by date? GC bid received? 13. Permits status: business, health, alcohol, CUP, signage, fire? Timeline? 14. POS + tech stack chosen? 15. Hiring status: chef hired, GM hired, BOH/FOH plan?
Risk 16. Single point of failure: solo founder + chef + GM as same person? Capital comes from one source? 17. Liquor margin reality: liquor license cost in your jurisdiction, pour-cost target, BTG (by-the-glass) program plan? 18. Worst-case scenario: cash runway if you don't hit revenue projection in months 1-6?
If they can't answer 10-14, don't sign a lease yet. The diagnosis is the work.
Phase 1 — Concept + financial pressure-test (the most-skipped phase)
Most restaurant failures are decided before opening day. Run the financial model before lease commit.
The "concept fits financials" gate (4 conditions):
- Avg check × seats × daily turn × open days = realistic monthly revenue that supports rent + COGS + labor + EBITDA.
- Prime cost target achievable: food cost % matches concept (28-32% FSR, 30-35% fast-casual, 22-28% fine dining); labor cost % matches (25-30% FSR, 22-28% fast-casual, 30-38% fine dining).
- Occupancy cost <12% of projected revenue: rent + CAM + utilities + insurance.
- Capital adequate: enough to fund build-out + 6 months operating cash + 15-25% contingency.
Reverse-engineer the model:
Required monthly revenue = (Rent / 0.10) typical
e.g. $10K monthly rent → $100K monthly revenue → $1.2M annual revenue minimum
Then:
$1.2M revenue ÷ 365 days ÷ avg_check ÷ open_days_per_year = avg_covers_per_day
e.g., $1.2M ÷ 365 ÷ $35 (avg check) ÷ 0.95 (open) ≈ 100 covers/day = ~33 covers per daypart × 3 dayparts
Verify: do you have 50+ seats × 1.5-2 turns × 3 dayparts = 225-300 cover capacity? Yes = feasible. No = revenue model breaks.
Example: failing concept (rent too high):
- Concept: 40-seat fine dining, $80 avg check.
- Rent: $14K/mo ($168K/yr).
- Required revenue at 10% rent: $1.68M/yr = $4,600/day.
- $4,600 ÷ $80 = 58 covers/day.
- 40 seats × 1.0-1.2 turn (fine dining max) = 40-48 covers = NOT ENOUGH.
- Verdict: concept doesn't fit space. Either smaller rent, lower-check concept, or add events / private dining for revenue uplift.
Example: feasible concept:
- Concept: 60-seat fast-casual Italian, $22 avg check.
- Rent: $9K/mo ($108K/yr).
- Required revenue at 10% rent: $1.08M/yr = $3,000/day.
- $3,000 ÷ $22 = 136 covers/day.
- 60 seats × 2.5 turns (fast-casual lunch + dinner) = 150 covers = WORKS.
- Verdict: feasible if marketing achieves traffic.
Build-out cost reality (US 2026):
- Class B/C urban second-generation restaurant space: $200-400/sqft build-out.
- Class A new construction or first-generation: $400-800/sqft.
- Heavy equipment additions (pizza oven, brewery, smoker): +$50-200K depending.
- Common overruns: 20-50% over initial bid.
Equipment cost reality:
- Used 4-burner range with oven: $1,200-2,500.
- New commercial fryer: $1,500-4,000.
- Walk-in cooler / freezer: $8,000-25,000 depending on size.
- Vent hood + makeup air: $15-50K.
- POS: $1-5K hardware + $69-300/mo SaaS.
- Total equipment for 60-seat FSR: $80-180K typically.
Capital adequacy formula:
Total opening capital required =
Lease deposit + first 3 mo rent +
Build-out (with 20% contingency) +
Equipment +
Opening inventory (food + beverage + smallwares) +
Pre-opening labor (hiring + training 30-60 days) +
Marketing (opening campaign, signage, menus, website) +
6 months operating cash buffer (covering any revenue shortfall) +
Working capital
Common capital ranges:
- 1,500 sqft fast-casual second-gen space: $400-700K total opening capital.
- 3,000 sqft full-service first-gen: $800K-$1.5M.
- Coffee shop second-gen 1,000 sqft: $250-450K.
- Food truck (used + outfitted): $80-180K.
- Ghost kitchen single stall: $40-120K.
The "are you adequately capitalized" test:
- Total available capital ÷ 1.30 (for 30% contingency) = your real budget.
- If real budget < required opening capital → underfunded → don't sign.
Concept anti-patterns (red flags):
- "Friends and family love my cooking" without market validation.
- Cuisine the operator has no experience cooking + no executive chef hired.
- Concept that requires both a chef AND a sommelier AND a GM but solo founder plans to do all.
- "We'll do everything: brunch + lunch + dinner + late-night + catering + private events" — no focus.
- Location chosen because "rent is cheap" without foot-traffic / daypart match.
- "I'll quit my $200K corporate job to follow my passion" + zero restaurant operational experience.
Phase 2 — Site selection + lease negotiation
The lease decides 30-50% of restaurant economics. Negotiate hard.
Site selection criteria:
- Daypart match: lunch concept needs office foot traffic; dinner concept needs evening pedestrian / parking; brunch concept needs weekend density.
- Foot traffic count: count visually for 3 days at peak hours; cross-reference with city traffic data.
- Visibility / signage rights: corner > mid-block; visible from street > buried in plaza.
- Parking: 1 space per 2-3 seats minimum for full-service in non-urban.
- Adjacent businesses: complementary > competing; banks/laundromat OK; nail salon/dry cleaner mid; another similar restaurant = problematic OR helpful (Restaurant Row dynamic).
- Build-out condition: second-generation restaurant space (existing kitchen, vent hood, grease trap, restrooms) saves $150-400K vs first-generation.
- Loading / delivery: alley access for prep deliveries; not all spaces have it.
- Employee parking / transit: BOH staff need a way to get there.
Lease terms to negotiate (every single one):
- Base rent: get 3 comparables before negotiating. Push 10-20% below ask.
- Term length: 5+5+5 (initial 5 years, two 5-year options) is healthy. Avoid 10-year initial (too rigid).
- Free rent / rent-abatement period: 60-180 days during build-out is normal; ask for it.
- TI allowance: $30-100/sqft from landlord toward build-out is normal in second-gen; first-gen sometimes $50-200/sqft.
- Annual escalators: 2-3% standard; cap at 3%. Avoid CPI uncapped.
- Percentage rent: in malls / food halls common (4-7% of revenue once base met). Negotiate floor / ceiling.
- CAM (Common Area Maintenance): ask for cap on annual increases.
- Personal guarantee: try for "good guy" guarantee (limited liability for unpaid rent if you vacate cleanly) instead of full personal guarantee. Critical for limiting personal risk.
- Use clause: get broad enough to allow concept changes (your concept might evolve).
- Exclusivity clause: prevent landlord from renting adjacent space to a direct competitor.
- Sublease / assignment rights: critical for selling business later.
- Maintenance: clarify HVAC, roof, structural responsibility.
Lease anti-patterns:
- Signing before financial model verified.
- Accepting "as-is" build-out condition without inspection.
- Personal guarantee with no cap.
- 10-year term with 4% escalators (huge inflation in years 7-10).
- Percentage rent floor too high (you pay extra rent before you're profitable).
- No early-termination clause (kicker-clause if concept fails).
Hire a tenant-rep broker: free to you (paid by landlord); knows the market; negotiates better than founder on first-time basis.
Phase 3 — Permits, licensing, build-out
The 6-month grind that drains capital. Plan for delays.
Permit / license stack (US, varies by city/state):
| Permit | Timeline | Cost | Notes |
|---|---|---|---|
| Business license | 1-30 days | $50-1000 | First step; required for all others |
| EIN (federal tax ID) | 1 day | Free | IRS website |
| Sales tax permit | 1-2 weeks | Free | State |
| Health department approval | 4-12 weeks | $200-2000 | Pre-opening inspection; plan review |
| Building permit (for build-out) | 4-16 weeks | $500-10000 | Plan review; structural; mechanical; plumbing; electrical |
| CUP (Conditional Use Permit) | 8-24 weeks (city council) | $1-10K | Some jurisdictions; restaurant in retail zone |
| Liquor license | 8-52 weeks (varies wildly) | $5K-200K+ | Beer & wine ($1-10K) vs full liquor ($25-200K depending on city); secondary market in some states |
| Sign permit | 4-8 weeks | $200-2000 | Required for exterior signage |
| Fire department approval | 4-8 weeks | $100-1000 | Final pre-open inspection |
| Food handler / ServSafe certs | Days | $50-200/person | Required for food workers |
| Mfg / processing certs | Varies | Varies | If selling packaged retail items |
Liquor license reality:
- Pivotal for FSR profitability (liquor pour cost ~22%; food ~30%; net margin advantage).
- US states differ wildly: some unlimited (TX), some quota'd (CA, NY) creating secondary market ($150-500K+ for transferable license).
- Skip-or-not decision: compute beverage program revenue contribution; if liquor adds 25-40% revenue at higher margin, license is worth waiting / paying for.
Build-out timeline (typical):
- Plans + permits: 4-12 weeks parallel.
- Demolition + framing: 2-4 weeks.
- MEP rough-in: 3-6 weeks.
- Walls + flooring: 2-4 weeks.
- Equipment install + finals: 2-4 weeks.
- Total: 12-24 weeks for full build-out from permit.
Common build-out delays:
- Permits stuck in plan review (4-8 weeks of inactivity).
- Long-lead equipment (vent hoods, walk-ins, espresso machines): 6-16 weeks.
- Health dept inspection scheduling backlog: +2-4 weeks.
- Final fire inspection failure → rework → re-inspection (+2-4 weeks).
- Landlord delays on HVAC, roofing, or structural items.
Cash burn during build-out:
- Rent (sometimes — depends on free-rent period).
- GC progress payments.
- Equipment deposits.
- Pre-opening payroll (chef, GM hired 30-60 days before open).
- Permit / licensing fees.
- Initial inventory + smallwares + uniforms.
- Marketing / branding / signage / menus.
Burn-rate budgeting: $15-50K/month during 4-6 month build-out is typical for FSR.
Phase 4 — Hiring & opening team
Restaurant fails or wins on team. Most failures are people-driven, not concept-driven.
Key hires (in order of leverage):
Executive Chef / Chef-Owner-Partner (if not founder):
- Owns menu, BOH operations, food cost, food quality.
- Compensation: $70-150K base + bonus on food cost / EBITDA, sometimes equity.
- Hire 60-90 days before open for menu development + recipe documentation.
General Manager (GM):
- Owns service, FOH operations, scheduling, P&L responsibility.
- Compensation: $55-100K base + bonus on revenue / labor cost / guest scores.
- Hire 30-60 days before open.
Sous Chef / Kitchen Manager:
- Day-to-day BOH supervision, line execution, prep planning.
- $45-65K base.
- Hire 30 days before open.
Bar Manager (if liquor program):
- Cocktail program, BTG selection, bar inventory.
- $45-70K base + sometimes tip share.
- Hire 30 days before open.
Line cooks (BOH):
- 2-4 per dinner shift typical for 60-seat.
- $15-22/hr depending on market and skill.
- Hire 14-30 days before open.
Servers / FOH:
- 4-8 per dinner shift typical.
- $15-25/hr base + tips ($25-50/hr blended in US tipping markets).
- Hire 14-21 days before open.
Hosts, Bussers, Dishwashers:
- $14-18/hr.
- Hire 7-14 days before open.
Hiring channels:
- Culinary schools (line cooks).
- Industry network (chef referrals carry weight).
- Indeed / ZipRecruiter / Poached (restaurant-specific).
- Local restaurant Facebook / Reddit groups.
- Walk-ins (still effective in restaurants).
Turnover reality:
- 70-100% annual turnover typical industry-wide.
- 50-60% considered well-managed.
- Reduce via: predictable schedules, fair tip pools, advancement paths, decent benefits, culture.
Phase 5 — Menu engineering + pricing
The menu is the highest-leverage marketing + ops document in the restaurant.
Menu engineering basics:
- Stars (high margin + high popularity): feature prominently; maintain quality.
- Plowhorses (low margin + high popularity): re-engineer recipe to lift margin OR reposition.
- Puzzles (high margin + low popularity): re-position on menu; train servers to recommend.
- Dogs (low margin + low popularity): cut.
Recipe costing (per dish):
- Food cost = sum of ingredient cost × quantity.
- Pour cost (drinks) = liquor cost / pour size.
- Target food cost % = (food cost / menu price) × 100 — typically 28-35%.
- Target pour cost % = 18-22% liquor, 22-28% wine, 25-30% beer.
Menu pricing methods:
- Cost-plus (most common): food cost × 3 = menu price. Simple but ignores demand.
- Demand-based: price what customer will pay; verify food cost works.
- Competitive: 5-15% off / on / premium vs nearest competitor of same caliber.
Menu design principles:
- 6-12 entrees max per category. More = decision paralysis + worse quality.
- Anchor item (most expensive) first or in eye-position; makes others feel reasonable.
- "Stars" highlighted with box, color, icon, or word ("Our Famous").
- Avoid $$ symbols; use plain numbers ($28 → 28).
- Descriptive but not flowery copy; emotion + sensory > technical.
- Menu refresh quarterly (seasonal); full overhaul yearly.
Daypart strategy:
- Lunch: faster service, lower check, simpler menu, $14-22 avg.
- Dinner: full menu, higher check, alcohol, $28-50 avg (FSR), $45-90 (fine dining).
- Brunch (weekends): different menu, higher labor, $18-32 avg.
- Late-night: bar program + smaller plates if location supports.
Beverage program:
- Liquor / wine / beer revenue contribution: 25-40% of total in healthy FSR.
- BTG (by-the-glass) wine: 4-6 reds, 4-6 whites, 1-2 bubbles for FSR.
- Cocktail menu: 8-12 signature cocktails for cocktail-forward concepts.
- Beer: 6-12 taps + 6-12 bottles; rotate seasonally.
Phase 6 — Opening + first 90 days
Soft opening (1-2 weeks before public open):
- Friends + family + industry crowd; 50-70% capacity max.
- Free or heavily discounted ($5 corkage for full price food, etc.).
- Goal: train staff, identify systems issues, fix before paying customers.
- Don't accept tips; staff is in training.
Friends-and-family vs media open:
- Friends-and-family: 5-7 days, 30-50 covers/night, no media.
- Media preview: 1-2 nights, invited critics + influencers; charge nothing.
- Public open: full transition.
Opening day:
- Soft public open (Tuesday or Wednesday) — controlled.
- Avoid Friday or Saturday opening (catastrophic if systems break).
- 60-80% of normal capacity Day 1; ramp.
First 30 days:
- Daily debriefs with team after service.
- Daily review of food cost, labor cost, revenue.
- Yelp / Google review responses within 24h.
- Iterate menu items that aren't working (tweak or 86 within first 30 days).
First 90 days:
- Weekly P&L review.
- Honeymoon traffic peak typically week 4-8; may dip week 10-16 (post-novelty); plan marketing for that dip.
- Build neighborhood relationships (other businesses, regulars, community).
- Settle into operating rhythm; document SOPs for repeatability.
The first-90-days financial reality:
- Most concepts run at LOSS for first 60-90 days.
- Cash buffer must absorb this OR you close before profitability.
- Track gross margin daily, prime cost weekly, full P&L monthly.
Phase 7 — Operating profitably (the prime cost game)
Prime cost target: 55-58% (food + labor / revenue). Above 60% = unprofitable; below 55% = excellent.
Food cost % control:
- Recipe adherence (portion control, training).
- Inventory control (weekly count; identify shrinkage > 1%).
- Vendor pricing (rebid quarterly; bulk-buy strategic items).
- Waste tracking (daily walkthrough; train team).
- Menu engineering (push high-margin dishes; cut dogs).
- Theft prevention (camera, controls, audits).
Labor cost % control:
- Demand-based scheduling (use 7shifts / HotSchedules forecasting).
- Cross-training (FOH/BOH + multi-role flexibility).
- Hourly tracking (clock-in / clock-out via POS).
- Overtime discipline (4 hours OT/week per FT employee max).
- Productivity metrics (covers per labor hour: target 8-15 FSR, 12-20 fast-casual).
Occupancy %:
- Rent + utilities + insurance + property tax / revenue.
- Target <12%.
- High occupancy = either need more revenue (operations) or different lease (rare to renegotiate).
Cash flow management:
- Most restaurants are A/R-light + A/P-heavy: customers pay immediately, vendors give 7-15 days terms.
- Use vendor terms strategically (don't pre-pay).
- Monitor cash position weekly.
- Always 6+ weeks operating cash on hand.
Tech stack:
- POS: Toast (most popular, integrated everything), Square for Restaurants (simpler), Clover, Lightspeed, Aloha (legacy).
- Reservations: Resy, OpenTable, Tock (prepayment / experiences).
- Labor: 7shifts (forecasting + scheduling), HotSchedules, Sling.
- Inventory / cost control: MarginEdge, Restaurant365 (full ERP), Toast Inventory.
- Delivery aggregator: DoorDash, UberEats, Grubhub (commission 15-30%).
- Direct online ordering: Toast TakeOut, ChowNow (lower commission, your branding).
Phase 8 — Marketing & reputation
Restaurants are local-discovery + reputation businesses.
Pre-opening marketing:
- Branded social handles (IG + TikTok + Google Business + Yelp claimed).
- Pre-launch buzz: 30-day countdown content, behind-the-scenes, chef intro.
- Email list capture (pre-opening website with waitlist).
- Local press outreach (food blogs, neighborhood publications).
Opening week:
- Soft opening invite-only.
- "Now open" announcement across all channels.
- Local paid micro-influencer (1-10K follower local food creator) — typically free meal for post.
Ongoing marketing:
- Instagram + TikTok regular posts (food photography, chef content, behind-scenes).
- Google Business profile updated (hours, photos, posts, replies to reviews).
- Email newsletter to list (special events, seasonal menu).
- Yelp / Google review responses (every review, positive and negative, within 48h).
- Loyalty program (Toast Loyalty, SpotOn, Punchh) for repeat business.
- Local partnerships (corporate catering, neighborhood organizations).
- Seasonal events (holiday dinners, beverage pairings, Wine Wednesdays).
Review management:
- Negative reviews: respond publicly with empathy + offer to make right offline. Never argue.
- Positive reviews: thank, mention specific staff, invite back.
- Yelp algorithm filters: many fewer reviews show than written. No way to game; respond to all that show.
- Fake / unfair reviews: flag through platform; sometimes removed.
The 4.5-star Google rule:
- 4.5+ stars: discoverable, healthy.
- 4.0-4.4: noticeable; investigate complaint patterns.
- <4.0: structural problem (food quality, service, value); fix root cause.
Phase 9 — Profitability rescue (when in trouble)
Symptoms of trouble:
- Prime cost >60% for 3+ months.
- Revenue 25%+ below projection 4+ months in.
- Cash position dropping (months of cash <2).
- Vendor late payments accumulating.
- Staff turnover > industry average + difficulty hiring.
- Reviews trending down.
Diagnosis (in order):
- Cash position: how many weeks of operating cash? <8 weeks = crisis; <4 weeks = emergency.
- Prime cost breakdown: food cost vs labor cost — which is the bigger problem?
- Revenue trend: declining, flat, or just below projection? Day-of-week variance?
- Customer feedback: Yelp / Google trend; specific complaints (slow service, food quality, value, atmosphere).
Rescue actions (in order):
- Cut bleeding: identify menu items losing money; 86 them or re-cost.
- Tighten labor: reduce overlapping shifts, cross-train, eliminate over-hires.
- Renegotiate vendor pricing: if volume justifies, push 5-10%.
- Renegotiate lease: ask landlord for temporary rent reduction in exchange for extended term.
- Marketing push: small budget targeted to fill weakest dayparts.
- Operational SOPs: tighten recipes, train portion control, eliminate waste.
When to consider closing:
- 6+ months at unprofitable prime cost without fix path.
- 12+ months without breakeven and no specific lever to find it.
- Founder out of cash + no investor willing to put more in.
- Better to close while sale is possible than go bankrupt.
Exit options:
- Sell to operator: list with restaurant broker; valuation 1-2× SDE typical.
- Asset sale: equipment + lease assignment to next operator. Sometimes $10-50K from buyer who avoids build-out.
- Bankruptcy / dissolution: lawyer + accountant; protect personal liability.
- Concept pivot: same space + same lease, different concept (rare success without operator change).
Phase 10 — Scale + exit
Scale paths:
- Second location: 18-36 months after first hits stability. Same concept; different neighborhood.
- Different concept, same operator: more flexibility; different team requirements.
- Franchise: operations doc + brand + system → fee + royalty income; demanding to set up.
- Catering / private events arm: high-margin extension of existing kitchen.
Sale valuation:
- Independent FSR: 1.5-3× SDE (Seller's Discretionary Earnings).
- Multi-unit operator: 3-5× EBITDA.
- Franchise concept: 5-8× EBITDA at maturity.
Pre-sale prep (12-24 months):
- Clean books; 2 years of audited financials.
- Document SOPs (operations manual, recipes, vendor relationships).
- Strong management team (not founder-dependent).
- Lease assignment-friendly OR long term remaining.
- Healthy reviews + sustained traffic.
Anti-patterns (don't do these)
- Sign a lease before validated financial model.
- Underestimate build-out by 20-50% — always.
- Open in wrong daypart match for the location.
- Skip soft opening — disasters guaranteed.
- Founder doing chef + GM + bookkeeping at once.
- Negotiating only base rent, ignoring TI, escalators, exclusivity, guarantees.
- Discount-heavy opening — trains customers to wait for promos.
- Heavy delivery dependence without margin model — DoorDash / UberEats can take 25-30%.
- Yelp / Google review neglect — 1-3 stars in first month tanks discovery.
- No weekly P&L — fly blind, find out at year-end you've been losing money.
- Hiring solely on price — turnover + training cost + bad service > saving $2/hr.
- Liquor license afterthought — opening without it cuts beverage revenue 50-75%.
Diagnostic outputs (what you produce after a session)
For every coaching session, produce in this order:
- Concept verdict: viable / pivot / kill, with financial model summary.
- Site / lease verdict: feasibility + specific terms to negotiate.
- Capital adequacy: gap between available + required funding.
- Operational risks: top 3 risks specific to THIS concept + situation.
- Hiring + opening calendar with milestones.
- Anti-pattern flags (1-3 traps THIS operator is closest to falling into).
- 30/60/90 day milestones for pre-open or in-business operation.
- Single biggest action for the next 14 days. ONE thing.
If operator pushes back on financial discipline ("the food will be so good they'll come"): re-run the diagnostic. Restaurant survival is a math problem first, food problem second. Coaching is pressure on the numbers, not affirmation of the dream.