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.
One of the few instances where you need to actually slap some sense back in your parents.
you couldn’t afford rent in Boston, or you didn’t want to live with roommates?
You need to get sick for a few hours one day. They’re your parents so id cut them some slack as hard as it may be. Tnen you show up saying you took meds and feel better
But they better learn to run it without you or even themselves.
I would salvage it, automate it to the highest extent, and get away from that store.
Figure out how to turn this around. Set them up as absentee owners. You can’t rely on them actually operating the cafe and in fact they are forcing you to operate it. Something is selling. What’s most profitable? What is essential? Drop the rest. You can always expand a successful menu.
One of my business partners asked me to help him run a business. It is a kind of a medical office and he’s a good doctor in that niche. It’s not my core area of expertise since I am not a doctor, but the business relies on a lot of technology and that is my area of expertise. It got to the point where I wrote him a training document because some of the concepts are just too challenging to grasp.
So, that’s what I will do for him. Fly over, spend a week actively hands-on mentoring how their high tech equipment operates, and write extremely detailed materials you answer their questions. That’s basically what you must do to overcome their apprehensions of the POS.
You know what works for a cafe? Bagels. :)
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.
Do y’all have a business plan?
Let me rephrase your post.
Your parents decided to open up a coffeeshop in a town with limited customer potential on the other side of the country. They have no experience in the industry and rely on you for the day to day operation. Since the business is failing (no surprise there) your dad spends a shitton of money on stuff to expand the menu (read: adding additional operation costs) without doing research to justify adding these operational costs.
Your 6 months in and the owners still don’t know the menu and depend on you. So basically you are the business but without the ownership and the money is controlled by a guy who actively makes it harder for you to succeed.
You could try making the business profitable. I know a lot of people in here are saying bail and cut your losses, but restaurants make good money under the right circumstances. I’d start by asking you a couple questions
Gross revenue: Food sales: Beverage sales: Rent: Utilities: Insurance: Cost of goods sold: Paper cost: Chemical cost: Employee payroll:
Based on your answers here I might be able to provide you with a couple things to work on that might make your situation more palatable. Based on your investment of 150k a cafe doing 100k in monthly gross sales should give you ROI under 3 years.
Lol this has to be fake
This sounds like an absolute nightmare. Give them a short time frame on your departure. Train them and go live your life.
Avoid sunk cost fallacy. Cut loses, learn from the experience.
Failure is not bad thing, it’s the best teacher towards achieving success.
Cut bait and get out. They fell in love with the idea of it, but have no interest in actually making it work. Sounds like they are doing a lot of “playing house.” They can’t even figure out how to make the drinks or use the POS? I know it’s tough because you are family, but your only hope is to get out.
I wonder if this business can be sold? There are retired executives at the SBA who can assist small businesses. It would be a good idea for the three of you to sit down with one of these people to discuss your options.
Separate the business from the family. If you are named in the business as a shareholder or member, hire an attorney to help you legally remove yourself. Pay your share of this year’s taxes and get out before December 32st to avoid next year. Cut your losses. Explain to your parents that they can hire a manager to take over for you. If they can’t make it work without you, that is their issue as the business owners.
This same situation absolutely ruined my in-laws and I helped them through this process. There is a way out.
Of course leave, life life and stop being miserable. Economy gets worse after they stop raising rates and it will get worse