So I bought a restaurant with a friend.

[josephmetalman]

So I bought this restaurant with a friend of mine about 2 years ago. The premise was that I’d be the operating partner and I took a small salary (60k) to run this and help us expand to a new location. Going into this I was very financially well positioned but the paycut and us not taking a draw in 2 years really put me in a bad financial toll. I recently got back into my primary career (software development) and took a job that pays 165k w/benefits. He’s still wanting me to be the managing partner but I can’t survive with that pay. Especially when he asked for a call for more funds from me because we are expanding and I was like dude I’m drawing 60k right now where do you think my money is coming from. I’m about to tell him to shove the salary and I’ll just take only my quarterly draws (I own 25%) and now you’ll have to actually deal with day to day operations. Just kinda a rant and curious what y’all’s opinions are.

 

[jar1959]

@josephmetalman In business, Always negotiate the divorce while you negotiate the marriage.

 

[xxoceaneyesxx]

@jar1959 I like this.

 

[greatthoughts]

@josephmetalman Find a restaurant manager you both trust, sounds like you'd rather be more of an investor than doing day to day operations. I'm curious why you'd be expanding right now though given the hard time you've had staying afloat

 

[josephmetalman]

@greatthoughts We’re in Florida. The new location will actually do really well and it’s already paid for. I was done with the stuff I needed to get done 8 months ago now we’re just waiting on his part.

 

[rustyt]

@josephmetalman And what exactly is his part? He owns 75% if I am not mistaken and has zero sweat equity?

 

[robertbrowny]

@josephmetalman Doesn't sound good. What is his part undone? Is it all going to crash and burn without you there?

 

[kelland]

@josephmetalman Sounds like you bought a restaurant that you can’t afford to run.

 

[josephmetalman]

@kelland I mean I can now. I just couldn’t with that being my only source of revenue

 

[dirtbikegirl]

@josephmetalman I reckon part of having a business become self sufficient is putting in the work for the first year or two. Otherwise, you would have been better off as a limited partner/silent investor.

Sounds like you should take that 60k and hire someone to do that full time, and go back to being a software engineer. Hopefully the business grows.

Why did you get into this in the first place? Restaurants typically operate on slim margins and have such a high failure rate.. Why you? Do you have experience opening restaurants?

 

[yula]

@dirtbikegirl Seriously restaurants are such a bad business to be in even when you have experience running one.

 

[rustyt]

@josephmetalman Outsource it... Keep your day job and hire someone you trust that is young and eager to learn.

 

[harrisd83]

@josephmetalman Reading through this thread, it seems like you’re angry and frustrated. It’s hard to make sense what is going on. This may be the case with your own perspective as well. Writing everything out or talking to an objective other may help you figure things out. I always recommend that you make decisions while in a calm state, not while angry

 

[gagirl1234]

@josephmetalman I worked at a restaurant my whole life and I’m 25…. Their a mess just for a small profit? Definitely not worth it to me but others like the joy of owing a restaurant and getting to eat their for free…..

 

[myrtlepearl]

@josephmetalman Out of curiosity: how much $$$ is the restaurant burning through? I know you said you are expanding, but are you making enough now from your existing locations to justify the expansion? And, why not just wait a year or two? Is any of the money going back into the business? Or is it just enough to pay everyone's salary?

 

[sj_aprilmay]

@josephmetalman Well, what is he contributing to the effort and or giving up? Takes two to tangle.

I would have preferred you not go into business with a friend, but too late....

 

[sk8bdr018]

@sj_aprilmay *tango

"It takes two to tango" like the dance

 

[josephmetalman]

@sj_aprilmay He’s raised the cost of our operating expenses quarter after quarter and then gotten mad at me for us losing profit. He’s done about 30 things since we bought it that increased prices. I’ve did 1. But I’m the one who is responsible for prices being up.

 

[boogaloo]

@josephmetalman What was your friend’s career before you guys bought the restaurant ?

 

[josephmetalman]

@boogaloo He owns another restaurant lol, which is very profitable. I think he just got lucky with it though