Cash only fank you velly muchie.This quote is hidden because you are ignoring this member. Show Quote
Cash only fank you velly muchie.This quote is hidden because you are ignoring this member. Show Quote
Of course. https://forums.beyond.ca/threads/402...ght=Holy+smokeThis quote is hidden because you are ignoring this member. Show Quote
When can we see pkpk chains popping up?
Updated: March 10, 2022
My list of random For Sale (some free) stuff
if you're looking for crowd funding, check out ATB BoostR https://atbboostr.ca/
Alberta based crowd funding, so you'd probably get more people interested in funding
Even better would be the kind where you order and pay on a machine before you sit down.This quote is hidden because you are ignoring this member. Show Quote
Originally posted by max_boost
Hey baller, any problem money can solve is no problem at all. Don't sweat it.
Each time one closes another pops up in its place. It tells me there will always be someone willing to put in the hustle.This quote is hidden because you are ignoring this member. Show Quote
The question is, how do you wanna run it? Hire people? Do it yourself?
Consult TYMSMNY that guy is doing it right lol
Yea, so someone buys out a restaurant for pennies on the dollar that has gone out of business, using loaned money from family and friends, renovates the interior themselves to make it suitable for the atmosphere they want, and it begins again.This quote is hidden because you are ignoring this member. Show Quote
I just have a hard time imagining a regular ol' bank funding a restaurant. Also, if being done privately, your personal finances will be used to backstop those loans through the small business program, so you still need to have current funding (or a job showing income). And you still have to have a SOLID business plan. It was pretty easy for me, as I actually had money coming in with my business and was able to show them how much revenue and projected net income for the year the business would produce. For a restaurant... well, I dunno.
It sounds super risky, and banks don't do super risky. But definitely talk with ATB, and report back if they like your idea as it would be interesting to get a better idea of their risk tolerance.
Same reason people like residential real estate as an investment. It's not because it's good, but because it's something that they look at all the time, so it appears obvious. (And for RE its the one area where a punter can actually utilize leverage.)This quote is hidden because you are ignoring this member. Show Quote
What do you need the money for?
More specifically, if you were to obtain the business loan, how would you be distributing the funds?
- Leasehold improvements?
- Equipment Purchases?
- Franchise fees?
Depending on the purpose of funds, you may qualify for a CSBFL.
It's similar to a CMHC Mortgage for residential purposes, where you pay a fee, like CMHC Insurance, and the institution lends you money.
http://www.ic.gc.ca/eic/site/csbfp-pfpec.nsf/eng/Home
They are quite specific as to what the purpose of the loan proceeds would be used for.
If you own a property, that has equity, and are willing to put it up as collateral, most banks shouldn’t have an issue lending you a regular small business loan.
That being said, for a food services industry loan, you are going to need to put up more $$.
LTV on food services loans are usually lower than other industries.
ATB and BDC (www.bdc.ca) would probably be your best bets. BDC is a crown corporation and has incentive to lend out money.
These opinions are entirely my own and do not represent any other person or organization.
Banks don't do super risky. But there is a Gov't loan called the Canada Small Business Financing program that will lend to restaurants. The bank's risk is shared with the Gov't (sort of like a CMHC loan).
It only finances equipment, and leasehold improvements up to $350k, and up to $1MM for the purchase of business real estate. ATB is the only bank that will finance 100% of your equipemtn and leaseholds I believe. Other banks will only do 80-90%
You need a business plan, cash flow projections, and good net worth to qualify.
If you want to finance inventory/working capital, you need to go through BDC or private lending
(i used to work as a business manager for ATB and financed numerous restaurants)
Last edited by yellowsnow; 10-27-2017 at 12:24 PM.
ATB is good, but before going there I'd talk with Todd @ http://www.albertabusinessloans.com/index.php. Their entire focus is small business financing. I know that they've worked with a few restaurants/hospitality-centric businesses.
hahaha great advice. Beat you too itThis quote is hidden because you are ignoring this member. Show Quote
These opinions are entirely my own and do not represent any other person or organization.
Hey, I made the transition to commercial mortgage brokering and business loan consulting 2 years ago. I would be happy to discuss options with you.
Long story short on restaurants though, must have a high credit score, strong net worth, and additional assets backing you when starting up. If you are buying into a franchise you will have more options. If not, you can likely rule out most banks. PM me if you want to discuss further.
Cheers
Todd
Yes. Chartier in Beaumont, AB.This quote is hidden because you are ignoring this member. Show Quote
It's pretty damn good too.
Ultracrepidarian
To compare a typical restaurant to a brand new American based fast food chain thats doing good in the first year is pretty crazy no? Look at every other American based fast food place that came here after 2 years. Its not a stigma that restaurants are a major risk, its the truth. Ramen is a super popular item now though and with the japan base that will set yourself apart.This quote is hidden because you are ignoring this member. Show Quote
Didn't some BBQ joint down south tried that?This quote is hidden because you are ignoring this member. Show Quote
Promising life time BBQ (or discount) or something?
https://www.restaurantowner.com/public/263.cfmThis quote is hidden because you are ignoring this member. Show Quote
TL/DR, 1 in 4 fails within 1st year. I'm sure if you get more reliable franchises (Timmy's) you may get better credit but other than that restaurants have a tough time getting loans.
Last edited by Xtrema; 10-27-2017 at 04:33 PM.
Holy Smoke did. It recently opened too, not sure how many invested.This quote is hidden because you are ignoring this member. Show Quote
Popeyes is exploding due to it recently being opened up. Wait a year or two and it'll die down and the real work begins. How are the Korean Chicken places doing now?
When ramen craze is over and customers flock to next fad like octopus or seagulls or some fucking thing you will go out of business too. If you have enough money to open a restaurant you have enough money to do something smarter.
It's a well known franchise in Japan. What I liked about this was that most things are automated (sort of).
Noodle machine so your noodles are fresh and easy to make, noodle and gyoza maker for consistency.
The way they ran business seemed better than how it's done here.
Thanks for all the advice guys. I will start making some calls and will update the thread.
While Ramen is ramping up in Calgary. It's has peaked in Vancouver. While there are still quite a few quality place running, substandard ones has packed it in.
And remember while different, you are fighting with Pho in most markets in Calgary. And from a really unscientific poll of my white friends, 2/3 prefer Pho over Ramen when they have a choice when it comes to soup noodle meals.
As for me, I love Ramen, and I love to see another entry. Especially close to home in the T&T Country Hills area.
Last edited by Xtrema; 10-30-2017 at 04:06 PM.
Was a question on that poll asking if they knew the difference? :PThis quote is hidden because you are ignoring this member. Show Quote