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Buying a Failed Restaurant & Turning it into a Great One!


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That is my idea IF I can buy one cheap as I don't have much money compared to many of the wealthy expats that retire here to live like kings on their fortune and pension. As I can't get a pension since I'm not old enough but love it here then I need to come up with something I can do with about 10k AU and I have about another 5k to live on until the business makes a profit.

 

I live at a place with some growth going on but I also can see some opportunities in the restaurants I see are not properly managed and run to cater for the mainly expat customers. With a bit of chef experience, a business degree and a good understanding of restaurants since I have reviewed them for a website for last few years I would love to make a go of it. I heard there was one that I might be able to get for 200,000 pesos here. I know the locals here who run them and I'm picking up lots of good info.

 

I just wonder if I will have enough money though and what legal issues, paper work,taxes, regulations, setting up etc I would have to go through as a foreigner? I'm single with just a local girlfriend, maybe we will could get married in the future but not right now and she is working on another job for now.

 

If I don't invest in something then I will eventually run out of money even though I do get a small bit of income from Australia from another business but it's only small.

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haven't you seen them? They're crap spenders. The average age is far too old for them to be going out and socialising and spending money really freely the way you want them to all the time, they haven

On 1st May, I will have "Lived in Cebu" for 11 years, so do have some experience on what it takes to live here, and the problems and pitfalls of generating income to live off.   Starting a Business

It is never a good idea to buy a failed or failing business, unless it is your specitily and can plainly see why it is not making money. No one wants there business to fail so you can bet the oweners

USMC-Retired
run to cater for the mainly expat customers

 

This is a failed Idea right here. We do not make up enough of the population in a Geo location to support an establishment. You have to cater 70% min to the local population to be a success. No exceptions.

 

There are lots of permits and paper work hassles. Though you just hire an account to get them all done. 5,000 a month starting to get it done then 1500 a month to maintain books.

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I cant think of a relevant comment, cause the button, that is insultingly titled "search" causes such offence

 

 

BUT I CAN ENTERTAIN .!!!!..

 

 

demotivational-posters-26.jpg

 

 

 

 

 

:D:huh:^_^:o;):P:D:lol: B) ^_^ -_- nice knowin ya !

Edited by smidsy
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For Real

Hi Bad Dog,

Based on the questions you are asking I assume this is a pretty new idea to you. One thing you don't say is whether you have yet made a buck in the RP as of yet.

If the answer is no then I STRONGLY advise an apprenticeship first if you really cannot afford to lose your money. An apprenticeship means getting a local wages job, starting a small carenderia etc. This way you will find out the real cost of things, how to get things done through others, deal with the locals and most importantly not be taken for a ride at every turn.

 

You can make money here, but your business degree is not likely to be a lot of help.

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That is my idea IF I can buy one cheap as I don't have much money compared to many of the wealthy expats that retire here to live like kings on their fortune and pension. As I can't get a pension since I'm not old enough but love it here then I need to come up with something I can do with about 10k AU and I have about another 5k to live on until the business makes a profit.

 

I live at a place with some growth going on but I also can see some opportunities in the restaurants I see are not properly managed and run to cater for the mainly expat customers. With a bit of chef experience, a business degree and a good understanding of restaurants since I have reviewed them for a website for last few years I would love to make a go of it. I heard there was one that I might be able to get for 200,000 pesos here. I know the locals here who run them and I'm picking up lots of good info.

 

I just wonder if I will have enough money though and what legal issues, paper work,taxes, regulations, setting up etc I would have to go through as a foreigner? I'm single with just a local girlfriend, maybe we will could get married in the future but not right now and she is working on another job for now.

 

If I don't invest in something then I will eventually run out of money even though I do get a small bit of income from Australia from another business but it's only small.

 

Bad plan.............90% failure rate within the first year. Reviewing and running a restaurant is two totally different animals. Competing with the locals for the locals business usually will not work. Their lifestyle and expenses will always under cut yours. You owning a business or property is not feasible without a Filipino that you trust with your money, property and possibly your life.

 

If you do invest you will probably run out of money much quicker then if you hadn't! Don't mean to bust your bubble or rain on your parade but here the deck is stacked against you. Think long and hard before you dive into the shallow end of the pool!

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smokey

That is my idea IF I can buy one cheap as I don't have much money compared to many of the wealthy expats that retire here to live like kings on their fortune and pension. As I can't get a pension since I'm not old enough but love it here then I need to come up with something I can do with about 10k AU and I have about another 5k to live on until the business makes a profit.

 

I live at a place with some growth going on but I also can see some opportunities in the restaurants I see are not properly managed and run to cater for the mainly expat customers. With a bit of chef experience, a business degree and a good understanding of restaurants since I have reviewed them for a website for last few years I would love to make a go of it. I heard there was one that I might be able to get for 200,000 pesos here. I know the locals here who run them and I'm picking up lots of good info.

 

I just wonder if I will have enough money though and what legal issues, paper work,taxes, regulations, setting up etc I would have to go through as a foreigner? I'm single with just a local girlfriend, maybe we will could get married in the future but not right now and she is working on another job for now.

 

If I don't invest in something then I will eventually run out of money even though I do get a small bit of income from Australia from another business but it's only small.

 

 

 

 

my nephew came with the same amount and tried the same things it just seems money will fly when its a foreigner owned anything... everyone wanted a cut the only way he has been able to get by is call center jobs ,, as he speaks english better then most locals he is often given a management type job but even that is usually 30,000 and under maybe david can give you some info he was in the same spot a while ago and if anyone has done research on everything its david...

Edited by smokey
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Headshot

If I don't invest in something then I will eventually run out of money

 

If you DO invest in something, you will run out of money just that much faster. You will be much better off trying to make a business work for you in your home country and just coming to the Philippines as you can afford to than throwing your money into a business that has a long track record of losing people's fortunes. If you want to make money here, get a job teaching English or working in a call center. They don't pay a lot compared to wages in your own country, but they are sure revenue sources instead of sure revenue drains. Live on your monthly income...whatever that is...and invest your savings in something safe in your home country. That way, if things go ass-over-teakettle for you here, at least you will have money to go home on and start over again, Your plan will drain your resources until you don't even have the ticket price to get home. Then, we will read about you standing out on the new Mactan Bridge, contemplating a jump into the water below. I'm really not trying to be pessimistic or saying anything negative about your capabilities. It's just that we've seen this same plan over and over again, and it almost always ends the same way...which isn't pretty.

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Faluango

There are much better investments than a restaurant. Sounds like the typical western foreigner coming to the Philippines looking to make some cash.

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Davaoeno

A comment on how you consider your education and experience to be your ticket to making an unsuccessful restaurant successful here. I have an MBA, have owned a hotel, a night club, a restaurant, a cookie store, and several other businesses- and i would NEVER consider opening a restaurant here . I have a very good friend here who owns 2 restaurants and i have seen the problems that he goes through [ this is a bright guy who works 16 hours a day, as does his wife [ who is a successful chef] and yet dealing with employees, suppliers and various government offices is very very stressful for them both.

 

Even in Canada the failure rate of new restaurants in the first 3 years is over 90% .

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spooks

You do NOT BUY anything that fails. You do them a favour and take it off them

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Paul
If I don't invest in something then I will eventually run out of money even though I do get a small bit of income from Australia from another business but it's only small.

 

Mate, before you make ANY decisions at all, search this forum for information that has been posted over the years of it being online. If you want to start a business in the Philippines, catering primarily to expats, you will fail. Period. There are not enough expats in any given area, with the exception of maybe AC or Subic, to support a business. However, both areas would be too "dog eat dog" to work.

 

I would strongly urge you to do something you can earn money from online, like working for a business like Odesk, or another similar venture.

 

Another option may be, exports. I am not knowledgeable in this area, so I cannot offer any advice on it. I do, however, know a number of guys who do exporting from the Philippines. This would include fish, shrimp (prawns), furniture, jewelry, etc.

 

Otherwise, if you want to make a small fortune in the Philippines, bring a LARGE one.

 

That, my friend, is the best advice I can give you on business in the Philippines.

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tom_shor

How to make a small fortune in the Philippines. Start with a large one. Not mine but seems oh so true.

 

Oops I guess Paul beat me on that one.

Edited by tom_shor
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tom_shor

Tom = :ROFLMAO:

 

That stung. That stung deep.

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