My parents decided they wanted to start a cafe business in a small town in Texas. The whole process has been a nightmare. Everything from improper planning to day-to-day operations. I was not supposed to be a part of this business at all since I already had my own career. I figured I’d help them come up with the menu, branding, and drink recipes because I have barista experience from my college days. Once the business was about to launch, they ended up selling our home, forcing me to move to Texas. I could not afford Boston rent so I had no choice but to quit my job and go with them.
We’ve been open for 6 months now and business is not doing well. We barely make enough to cover rent and utilities. My dad is also spending more money by investing in equipment to expand our menu. He invested about $150,000 so far and we profit about $200 at the end of each month. I understand this is how most small businesses are for the first few years. It’s starting to take a toll on me because I do all the bookkeeping, planning, drink-making, customer service, etc. I work about 80 hours a week with no pay and had to sell my car just to have some funds to cover my student loans.
They are also clueless when it comes to using the POS or making drinks. I can’t even use the bathroom without them yelling my name when a customer walks in. My old man doesn’t even know what’s on the menu.
I don’t even know what to do anymore. I’ve been telling my parents I want to go back to work in my career field. I’m not sure if we should hire a business consultant or just ride it out until the wheels fall off.
Never do business with family and or friends. I don’t care what anyone says.
Would it be possible to share more details on why sales could be poor? Perhaps with more information we can help you improve your sales.
Since cash flow is an immediate concern, you can try some low cost marketing techniques like 1 for 1s or free flow something cheap. Have you ensured you’re on local maps or held interesting promotions which might help penetrate taste buds in the area? Maybe you could make the environment more cosy to attract students in the area. You should do some research and learn from other successful cafes in this regard.
Perhaps your parents who are more divorced from the day to day operations could help in marketing or spreading word of mouth to improve sales.
Just an alternative perspective - since your career couldn’t afford rent in Boston, it might not be a bad thing to try making this work out. I’m sure your parents don’t want you to be overworked and stressed out. Have a heart to heart talk with them and start assigning them the menial laborious tasks to help out with if they want to keep the business. This should free up your time to focus on the hard part - improving sales. You want to keep your cost where it is where making the most out of it for now, then slowly expanding your investment.
I’m a restaurant cafe owner for 6 months too. Like you and your family, I didn’t bring home money for the last 6 months. The part that sucks is I even need to pour in more money without income when the business is not breaking even. I used up all my savings, and my wife’s too, and had been relying of my wife’s income for the last 6 months.
I’ve decided the testing period should stop now, and I’m focusing on getting a second job. The bright side is the restaurant cafe can run by itself now with minimal supervision. It just needs money to survive. In worst case I’ll close it down, but I still have hopes it will prevail.
The thing is cafe is oversupplied in my community. People draw to the vibe and the expensive coffee, thinking it’s high profit margin. It’s low entry barrier business. Truth is this is a bad year to start a cafe. The fast rising costs, labour and rental. There is really hardly any margin. Given the chance again, I’ll rather invest the money in real estate than to quit my job and like your parents spending 200k to buy a job without income.
My advice is find a job while still keeping the business going. Hire people. It’s low skilled labour business, it shouldn’t be hard to find someone to replace you. Help out when you can, but get another job to at least have some income for yourself.
Hire a consultant who will likely tell your parents that they either need to professionalize your staff or continue running a lifestyle business into the ground. They may take third-party advice more seriously because to them you will always be their “little child.” Delegation of responsibilities is often an issue when families work together. Good luck.
Leave RIGHT NOW. This is a terrible arrangement and your parents arent EVER going to make this work. Youre being manipulated. You’d have more success on a crab boat in Alaska. Get rid of these two and go forge your future.
Your parents are gonna have to understand…or not… but you need to do what’s right for you
Hi dude, here is a real life advice for your business that can help you:
Decrease the menu and make it simple. Check the positions that are top 5 selling and leave just them. Focus to make them perfect quality. This will help you increase the quantity of customers. If you have the best tacos or whatever in town, people will start going to you. Don’t invest money on unnecessary equipment. Better hire a marketing agency to set up a good marketing campaign for you.