This is very nice of you Angela S. 😀These are some of the characteristics that contributed to his success. Thanks for stopping by. What's the most important thing you feel you learned from the video?
I started building my pho restaurant in Feb. 2020 and then covid19 was announced in March 2020. We opened on July 15th 2020 praying we would stay alive and till this day we're still standing. And like James said, margin is about 5% but since I'm running a small restaurant, breaking even is common. Not many people that open during covid made it, fortunately we did.
just remember food business is the most stable industry if you know what are you doing. no business can make a steady income like food business maybe real estate but not anything elase
My first business was a restaurant and I have friends that still own them. It’s a tough industry to be in. Long hours, 7 days a week, and when your dish washer calls in sick you have to be ready to fill in. Glad to see he has had such long term success, great person.
Thank you for sharing your experience, My Home Handyman! Our community appreciates all insights into the restaurant industry. How did you and your friends work it out? Do you have any tips you can share with us?
I've been a chef in all types of restaurants and catering for 30 years and people just don't understand how difficult it is to pull in above 15-20%. 1 off week can kill your month. Recently I saw a 60k pull for the week dissappear because of a decline in previous weeks. Crazy this business. Not all the glam you see on TV.
So I looked at their menu they’re offering 5 star service at Cheddars casual café prices. Most expensive thing is a Filet $45.95 average dish is $18 they’re under charging I know it’s Portland but it’s DT by the water you can’t give away food.
I am thinking about a new type of restaurants: eating-spots in eating-spots, food keeps changing, chefs also rotate this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants, along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app.
Humble, classy, and an incredible mindset for operating a restaurant business. I'm certainly going to make my way to Huber's the next time I'm in Portland. God Bless James!
I think that accounting systems are overrated. If his business has worked for a freaking century without one, and people still love to dine there, they are doing it good.
I’m glad that they touched upon a point of difficulty of finding help now vs. in the past. It’s mind boggling that people won’t even show up to an interview today.
5% is low but he's right, most restaurants are doing the same. My advice : - let a cost controller take a look at your expenses. - if you can, add a few services, like deliveries. - try take out. - add special days on your menu, even if you have to low a little your prices, try to beat with volume. - marketing is easy with social medias.
It takes a lot of family values and structure for a family business as this to stay in business for this much years; 100yrs plus wow ..how did a family like this transfer their values from one generation to another hmmm ??? One must appreciate the type of women that came into this family that kept the husbands of each generation to stay dedicated and committed to sustaining the family legacy 🙏 just one wrong woman in family can cause havoc
He really is nice and a great business owner Marius. Thanks so much for the wonderful comment. 😀Would you ever consider starting this type of business up on your own?
Its like im watching my dad...talks and thinks exectly like James and it is in restaurant industry all his life. It is really hard right now for restaurant owners to succeed so thats exectly why i watched this video, to give me advice...hope you will make more videos on restaurant business, maybe some modern restaurants...and i need to say that it really triggers me watching all restaurants nowadays turning into fine dining restaurant just for the sake of trend
Yes we will most definitely do more videos in the restaurant industry Adam. 😀👍 Thank you so much for watching. That's cool that the business owner reminds you of your dad, he has such a welcoming presence. How long has your family been in the restaurant business?
For over 20 years, he pushed me and my brothers to work early on...we started working in a bar when we were 12...and I hope one day that we take over a restaurant😀
5% profit on a full service restaurant with a full bar?! That’s ridiculously low. I have been a restaurant supplier for over 20 years and yes profit margins have shrunk during the last 20 years but many of my customers are still pulling out 10 to 15% and if you have enough liquor sales you can still pull out 20% profit. And I’ll bet my left hand this gentleman owns the building so he has zero rent. Maybe he’s renting out a portion of the building for a substantial profit and paying down the mortgage on the building? Maybe he’s paying himself a salary of $250,000 a year and that is eating into his so-called 5% profit. 5% of 200k monthly sales is only $120k a year. I believe he is making way more than $120,000 a year.
If he owns the business he would not want pay himself $250k salary . If you own a business you pay yourself as little as possible as a W-2 wage ( at 32% tax rate) and take it at the end as business profit ( at 22% tax rate ) . 5% profit is low but does he own the building and rent it to his other company ?
That's because you keep on the low side of what you actually make on any recorded media. You don't know if the IRS is snooping around. You are just asking to be audited.
This was an amazing interview and we are so happy that this business owner didn't hold anything back. 😀😀He was really great to work with. Thank you for supporting the channel. Please give us more detail on Xero account and your personal experiences with it?
God bless this man, his business, and his health. You can see the gods miracle throughout, his humbleness is testament that you don’t need to treat employees or customers as a number. I wish him great success
This is so nice of you junknmail123. 😀He is really a great business owner and knows the value of both his employees and his customers. Thanks so much for taking the time to watch and comment. Please let us know what type of business you'd like to see featured on the channel next?
Awesome. The passion and hard work is truly original. Most restaurants are too idealistic and gimmicky. Dining is a pleasure and what makes the most is satisfaction. If I’m a customer my priority is to appreciate what goto to making this dish and how much effort goes into it. It’s like coming home.😊
Open restaurant is easy …if you hire a chief always complain about salary 😂you headache this kind of business I don’t like …what I like is auto run business example lounge bar or club much more easier to manage
This is a great video and James seems to be a really sweet man who cares for the restaurant, his employees and his guests which is great! As someone who helps to manage a family restaurant that generates about the same revenue as Huber's I can say that a 5% margin, while not uncommon in the full-service restaurant business (5-10% net margins) it's a pretty abysmal number. I am particularly surprised that the margin is so low given the product mix (i.e. their alcohol to food ratio) - their mix is virtually the same as ours and the margins in mixed drinks are much higher so, again, I am surprised that the blended margin isn't much higher given percent of revenue that is alcohol. The reality is that margins have been compressed across the industry over the past couple of years as inputs have increased significantly from food to labor, etc. and therefore prices have had to increase to the customer but it has been hard to pass all of the increased cost on to customers. Anyway, there seems to be inefficiencies somewhere because a full-service restaurant, producing that level of revenue with a big bar program should probably be able to achieve at least a 10-15% margin even in today's environment.
Yes, they gave the key at the beginning, "treat staff like family", surely that is why the business is not more profitable, because it is so long therm that they prefer having their staff for 40+ years. I think that is probably the only way to go for them, specially being in Portland. Because they would never be able to offer any quality at all having to train new staff all the time.
@@PedroCostaeSilva That is a reasonably valid point and I assume that the cost of doing business in Portland, in general, is quite high but at our restaurant, we pay well above the going rate and we have staff that have been with us for years - we definitely want to create a team/family environment and take great care of our staff - the point is, you can still have a net margin that is higher than 5% (double or triple that) and pay and treat your staff better than the average restaurant or business.
I profit 20%. Bs to 5% . Specially in a place like that . The guy owns the building probably, no way he profits 5%. Cuz it means he has to pull out 2 million a year to make 100k before taxes . Restaurant business is very tough , and now days a lot of people don't want to work in their own place or don't understand numbers etc that's the real problem. Actually, i want to have another restaurant and i can't find anyone who would like to get their hands dirty , put some money down and make cash . Nothing. They say isn't worth their time ...but then ... They are totally broke . I don't understand it .
I am sure he is paying himself and his brother 250,00 each per year salary which is 100% deductible and thus lowering the profit margin at end of year as they are basically pulling out the profit threw out the year this way lowering the end of year profit
The owner of the restaurant is so humble.He always appreciates every little thing that his employees do, and never forget to praise his employees by calling their name one by one....great..👍👍👍
By the grace of God! Now that's a powerful statement. For so many fools believe that they alone have made things happen. However, the truly wise man believes & says that It was thru God's Grace that all things are possible. God Bless you Sir!
Person of this nature is only the outcome of vast life lessons learnt. Elegance in all ways. Thank you for doing this interview. Please, if you see him again, convey that I have learnt to be even more humble and polite. ICONic stature.
people of the Scripture (Jews and Christians)! Do not exceed the limits in your religion, nor say of Allah aught but the truth. The Messiah 'Iesa (Jesus), son of Maryam (Mary), was (no more than) a Messenger of Allah and His Word, ("Be!" - and he was) which He bestowed on Maryam (Mary) and a spirit (Ruh) created by Him; so believe in Allah and His Messengers. Say not: "Three (trinity)!" Cease! (it is) better for you. For Allah is (the only) One Ilah (God), Glory be to Him (Far Exalted is He) above having a son. To Him belongs all that is in the heavens and all that is in the earth. And Allah is All-Sufficient as a Disposer of affairs. (3:171) Holy Quran
We surely do Hameed. Thanks for the question. We have several videos in the clothing industry. Please check them out. 😀Congrats on getting started. We're happy for you. Will you buy cloths in bulk and resale or are you planning to make your own clothing?
@@UpFlip Thank you very much for responding. I’m not sure, I’m still brainstorming. I did check out those videos. With what is have in mind, it is going to be a new custom short. Where can I buy the cloth and find manufacturers? Is there a way to reach out to you to get few questions answered?
A man of God. A heart for God, and a heart for people. God never fails to honour His children when they put Him first. I'm incredibly blessed by this video. Thank you Upflip, thank you James and David. I hope to travel half the globe to Portland some day to savour the food and coffee.
You are very very right. There are rough days, but the Lord will make them prosper & just as he has for the past 100 years....prosper in ways they never thought possible. I too am going into business and i KNOW that God will see me through it.
5% of 200k is 10k a month and when you divide that up between the two brothers (owners) it's like 5k a month. When you add government and state tax, retirement account etc, probably left with nothing.
Glad you love this video, Shiretsu! Your appreciation means a lot to us and motivates us to continue producing content like this. Do you have a business topic you want to see next on the channel?
We really appreciate that and we also appreciate you always leaving such wonderful comments. 😀 What details did you like about the videography the most so we can make sure to include them in future videos?
Wow 40 employees, I have just 4 employees in my restaurant but i am stressed. They give me headaches and a very tough time. I dont know what i am doing wrong. I need help
Its not hard. Depend on Jesus FIRST and foremost. Set your prices at 3 times your cost. Keep staff size down by insisting on them working hard while they are there. Work there yourself. Its your baby. Dont walk away and go play, or you can look back from the golf course or beach and see the smoke plume as your place burns to the ground without you. Eleven years and counting. Thank you, Jesus! 7:30
That is your opinion. But people get inspiration and strength from many places. God is just one powerful way in this difficult world. Even if you dont believe, it is fine, but doesnt change where he gets his strength from.
Open restaurant is easy …if you hire a chief always complain about salary 😂you headache this kind of business I don’t like …what I like is auto run business example lounge bar or club much more easier to manage
Waw! what an amazing story, you are truly blessed by god. Thank you for sharing with us your and your parents and of course the main owners success in the restaurant business with us.
I am thinking about a new type of restaurants: eating-spots in eating-spots, food keeps changing, chefs also rotate this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants, along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app
5% profit is so low, it's almost like a supermarket Do James and the other owners pay themselves a salary in the books, on top of the 5% profit? that may make things a little more livable...
Its a good story….but it doesn’t help for this’s generation more than 80yrs ago $1.00 you can do a lot of things….now year 2022 for a small business you need at least $50000.00-$100000.00 dollars and also depending on the location and may cost you more money
You will see the difference if the restraunteur use the term "Guests" and "Customer" .. James use "Guests" more instead of "Customer" in his restaurant, and look at the results .. 😊
@@UpFlip absolutely ! I love your channel , it has been truly inspirational. The content , the entrepreneurs and knowledge. I’m preparing to take the biggest risk of my life into entrepreneurship and your videos have kept me encouraged. I hope to share my story one day .
