It seems there’s a reality show for everyone these days, whether you’re addicted to the exploits of the Kardashian crew (really America, has it come to that?) or hooked on the Bayou Billionaires, our fascination with a look from the outside in is cemented into our culture.

As this restaurant broker has been laid up with a nasty flu/virus/bug over the last few days, I’ve watched lots of reality TV focused on restaurants and bars.  It led me to a question that many people can answer by watching these shows – is buying a bar or restaurant right for you?

In Bar Rescue, John Tanner goes in to failing bars and finds all too often the same story.  Someone gets into the business by buying a bar and as time goes on, spends less and less time at the business until ultimately it fails under a lack of leadership.  If you’re considering buying a bar, you can easily avoid this trap at the beginning of your journey by asking, “Why am I buying this bar or restaurant” and “Will I be hands on or hands off?  The restaurant business is by all measures, a penny business.  It’s the onsite operator who cuts 10% off his wings price by establishing long term contract pricing rather than buying hit or miss on the open market at today’s rate who’s successful.  The winning restaurateur purchases specials on beer offered frequently by distributors and through smart marketing and promotion, makes the extra margin for his own pocket.  The operator who’s in the game is carefully managing the labor and sending those in the kitchen (paid at the highest rates) home or keeping them busy versus stacking the schedule.  At the same time, he knows the service staff has to be on hand for peak hours and he knows when and where that is.  If you’re buying a bar or restaurant, you have to ask yourself, are you good at the little things that make up the big profit?  If you want to own a bar on an absentee basis, the restaurant brokers would tell you there are better options for your money.

In another reality based restaurant show hidden cameras are placed around the business and an owner gets a look at what’s happening when he’s not there.  While this makes for great TV, you shouldn’t need Hollywood to make this happen if you’re buying a bar or restaurant.  The price of technology has never been cheaper.  You can see your register, your bar, your kitchen and your doors cheaply and easily from a smart phone.  Place cameras in the business the day you take over if you’re buying a bar or restaurant that doesn’t have them.  Use the technology to confirm your suspicions and fire those that would damage your business and your reputation.

In one last reality show focused on restaurants, Richard Irvine hosts Restaurant Impossible and upgrades a bar or restaurant in a matter of days from the menu to the décor.  Again, the cameras don’t need to be running if your restaurant needs a makeover.  If you’re buying a bar or restaurant, ask yourself, “When was the last time the menu was over hauled?”  “What’s the sales trend look like (if it’s trending down, start now!), and “What is the state of the equipment and décor of this restaurant.”  If the eighties are calling for their disco lights back, it’s probably time for some changes.  You don’t need a restaurant broker or TV host to tell you that.  What you do need is to make some decisions, invest in your business and make gradual positive changes that keep the business on track.

Lastly, the common theme on almost all these TV shows is the condition of the kitchen.  Cleaning is a very low cost investment with big returns.  First and foremost, it allows you to sleep at night knowing that no one is getting sick from the food coming out of your bar or restaurant.  Secondly, it sets a standard for the staff that says, “we’re into the details and they all matter.”

Buying a bar or restaurant requires common sense, attention to detail and focus on the pennies.  If you keep that in mind in when buying a bar or restaurant, the reality is, you’ll make money.

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