The restaurant industry is a promising sector that can provide individuals with a substantial income. This is particularly true for establishments located abroad.
Among professionals, restaurants situated in resort cities enjoy the greatest popularity.
So, how can one invest in the restaurant business overseas?
An experienced entrepreneur and founder of "Oil Resource Group," S.I. Tereshkin, is well-versed in the workings of this industry abroad. More information about the businessman’s investment activities can be found on his website: www.sergeytereshkin.ru.
Getting Started
Many entrepreneurs dream of living in a warm country while generating a stable income. Some invest in real estate for rental purposes. However, the restaurant business can add a touch of romance to this endeavor.
Nevertheless, according to Sergey Tereshkin, opening a food establishment is a complex and labor-intensive process with its own nuances and numerous pitfalls that can lead to disappointment and significantly deter one’s desire to pursue this path.
To avoid such scenarios, it is crucial to approach the matter responsibly. In this instance, there are no trivial details.
Before investing funds, it is essential to consider a number of factors:
- At the initial stage, careful consideration should be given to the choice of location for the restaurant or café. If financial resources are limited, leasing a space is a viable option. However, if the budget allows, purchasing property is preferable. In several countries, this can lead to residency and eventually citizenship. Many nations are welcoming to investors, offering dedicated programs that not only grant citizenship but also provide tax incentives and other benefits.
- Simply acquiring or leasing a space is not enough. It will likely require renovation and the installation of modern equipment. Refitting always incurs costs; however, these investments are necessary. Equipment can significantly streamline a chef’s work and elevate the quality of the dishes served, thereby enhancing the overall class of the establishment.
- It is vital to determine the restaurant's concept in advance, as this will affect the interior design, menu, and more. A change in direction will inevitably lead to additional expenses. Moreover, an incorrect choice may result in a low customer turnout and, consequently, losses. When opting for exotic directions, it’s crucial to seek out a qualified chef who is well-versed in the particular cuisine; hiring such a specialist can be quite costly.
- To save costs, consider opening a franchise. This approach provides an established business plan and strategy. Hiring staff is then the primary requirement, allowing for immediate revenue generation. A popular brand does not necessitate significant investment in advertising, as its name will naturally attract customers. The experience gained can later facilitate the opening of a new establishment independent of any brand.
- Deciding who will manage the establishment is also essential. Many novice investors try to fix all processes themselves and often lead their business to failure. Such challenges are best left to experienced restaurateurs. If one lacks knowledge, it is advisable to trust the process to a professional team, at least until all operations are streamlined. During this time, the investor can observe the development of their enterprise and subsequently leverage the knowledge gained.
When choosing an investment object, it is wise to invest in already established businesses. This avoids the need for obtaining numerous permits and searching for staff. Equipment and renovation costs will also be minimized.
Starting a food establishment from scratch significantly increases costs. Furthermore, the time to achieve a stable income may extend to 9-12 months. During this period, one must be present in the establishment, overseeing operations, delving into details, etc.
If creating a venue with an exclusive design that necessitates significant remodeling, leasing may not be the best option. A property owner is unlikely to agree to structural changes, such as tearing down walls or building new partitions.
Helpful Tips
It is not necessary to reside in the country where the business operates to manage it effectively. Remote management can be achieved by entrusting the process to a specialized management company. The cost of such services can vary significantly based on different factors; however, collaborating with a reliable organization can alleviate numerous challenges for the investor. It is crucial to choose a trustworthy company that will assist in recruiting essential staff, handle the legal entity's registration and accompanying documentation, find suppliers, help navigate business nuances, and control all key processes.
When investing, preference should be given to locations in resort cities near coastal areas or historical landmarks. High foot traffic is vital for success.
Experienced investors often recommend initially renting a property and conducting personal searches for restaurant locations. Real estate agencies frequently inflate property prices. Conducting a search independently can reduce costs by at least 10%. Additionally, this allows investors to assess demand for various establishments, analyze pedestrian traffic, and more.
When purchasing a property, it’s crucial to scrutinize all documentation and verify it with the relevant authorities. There are numerous fraudsters among sellers looking to exploit inexperienced investors.
