The Idea of Opening a Bosnian Restaurant

My dad and I have been thinking about opening a restaurant. It is not just any kind of restaurant it would be a Bosnian Restaurant/Bar. My nationality is Bosnian, and we live in the Bay Area. 10 Mins away from San Jose, Ca. There are no Bosnian restaurants in the area that we live in. What is the starting amount of money needed? An approximation is totally fine. We just want to get an idea of how much it would be. We are also looking investors, what would be the best way to get people to invest in this business?

Your help is greatly appreciated!

The whole Silicon Valley stretch is big on Cali-French, Asian of all stripes, a fair amount of Mexican, but you're right I've never seen any off-the-beaten-path European ethnic restaurants out there.

My advice: read Anthony Bourdain's "Kitchen Confidential" to get a feeling for what it's like to open a restaurant. If that doesn't scare you off, I wish you the best of luck. Whatever amount of money your business plan says you need... have an equal amount in reserve to keep you alive until you build up clientele.

Is there a large bosnian community in the bay area? If there isn't, how convinced are you that people completely unfamiliar with bosnian food (which is probably almost everyone) will give a new cuisine a shot?

Those would be my big questions.

As for how much money you need: a lot.

here's an answer to this type of question i gave to someone with a similar idea and is applicable to you as well.

do you have years of experience in the food industry? if the answer is no, i'd stop this line of thought this moment. @ the very least, the first thing you need to do is get a job in the industry and see what it takes to survive. work @ a couple places. that way, you can learn what not to do just as much as, how to do. after a couple years, then you'll be in better shape to decide on the risk of a small volatile business. and you'll have a realistic outlook on what it takes to succeed. or fail.

taking out a fat loan for something you know little or nothing about is not prudent. even under the best of circumstances w/years of knowledge, you can fail miserably. look around. most restaurants fail within 3 yrs. it's an extremely difficult and physically demanding business that is well known for long arduous hrs. kiss your personal life goodbye.

for some reason unknown to myself, people jump into careers they know nothing about and expect to succeed. as an analogy, would you buy a camera and think you could compete w/a professional photographer if you never took a picture? would you risk your life savings because you saw something pretty?

trust me here, i've made a career of holding the hands of amateurs in this business. they get into it for whatever reason, but realize quickly that they're in over their heads and need help. that's where i come in. you may as well open a brain surgery store in a mall.

i never understood people risking their life savings or taking on huge loans for something they know nothing about. but they do it all the time. lucky for me.

now if the answer to the question is yes, and you do have years of experience in the industry, that's another thing all together. i'd still be cautious and error on the conservitive side in your business plan though. if it's truely your dream, then i'd go for it.

if you do go for it, good luck. i'd be glad to look @ your plan and tell you if i think you're accurate in your cost projections.

hope this dose of reality doesn't harsh your mellow to much.

I appreciate all of the tips that you guys have given me and I was kind of expecting some of those responses.

There is a large Bosnian Community here in the bay area. That is one of the main reasons for opening the restaurant because there would be many customers. One of my big thoughts is that there would be people willing to come and try something different because they have never tried it before.

I know that it is not easy to survive in a restaurant business because there is so much competition. But Bosnian food is so much different than all other foods, how much competition would there really be?

The three things that Bosnian people look for in a place are the following: good food, liquor, and a place to dance maybe a few nights out of the week. That's a fact because I have been around them so long and alcohol is the main thing. Maybe even a place for parties where people can reserve it to hold parties. I am not sure if there is big profit on such things....does anybody know about that?

The three things that Bosnian people look for in a place are the following: good food, liquor, and a place to dance maybe a few nights out of the week. That's a fact because I have been around them so long and alcohol is the main thing. Maybe even a place for parties where people can reserve it to hold parties. I am not sure if there is big profit on such things....does anybody know about that?

Hi,

I used to spend a lot of time in Eastern Europe during the Iron Curtain-Soviet era. I recall the restaurant experience was not the casual I-don't-feel-like-cooking-tonight like it often is here in the United States. Going to a restaurant was an event, where several months salary was spent with liquor and dancing expected.

There is a Russian restaurant in the suburbs of Chicago named White Nights located in the banquet facilities of a motel. They are only open on weekends: Friday, Saturday and maybe Sunday if they have a party. People go there for a fixed priced meal or a la carte, it is zakuski, main course, dessert with a bottle of vodka and/or wine per X amount of people. When people come, it is for the entire evening. If you want conversation, then plan on dining before 8 PM when the band begins at full blast. (I haven't been there for some years, though what I describe is model I observed the last time I went)

What impresses me about this model is the week night dead time is avoided by simply not being open. It also meets a particular culture's expectations of a restaurant experience, though I used to joke they learned their business model from Intourist. However they are very present when people are ready to play. It would also allow you to have another job to keep you going while in the start up phase of this business.

Whatever you do, please keep us up to date because we are interested.

Regards,

zlatkobijelic wrote:I know that it is not easy to survive in a restaurant business because there is so much competition. But Bosnian food is so much different than all other foods, how much competition would there really be?

I've never worked in the food industry, but I'd caution you about this logic -- whether or not Bosnian food is like other food, you're still competing with all the other options people have for sating their hunger.

You might also consider setting up a catering operation to serve the Bosnian population in your area. There would be a lot less up front cost, and might help you establish a reputation that could be leveraged into opening a permanent space later. It's not exactly the same, but it might be a measured step in the direction you want to go.

Just a thought.

In any case, good for you for dreaming, and for pursuing the dream, wherever it takes you.

If you do open a Bosnian or any restaurant make sure to do research on not making the place intimidating to English speakers. I.e. have English or at least translated menus and name the restaurant without the use of too many unpronounceable syllables.

Also make use of advertising (1st in ethnic newspapers) which will be the key to early success and then word of mouth will get you over.

Just a note, I'm sure any line leaning this way was unintentional but while you can look for advice here you can't look for investment capital on this board.

I would read about the Bosnian/Eastern European restaurants on this board-- generally speaking they have not been very welcoming to non-Bosnians, both in attitude and in the menu, which is so focused on meat and away from green vegetables; which will be even more of an issue for San Franciscans than less meat-averse Chicagoans. If you really want non-Bosnian business you have to find a way to present it that makes it appealing.

Catering is an excellent idea for how to gain practice and a reputation before the big capital bite of a permanent restaurant; there are other ways to have events aimed at your ethnic group, this post of mine talks about an Indonesian event in the LA area from which at least one restaurant has grown.

Cathy2 wrote:

The three things that Bosnian people look for in a place are the following: good food, liquor, and a place to dance maybe a few nights out of the week. That's a fact because I have been around them so long and alcohol is the main thing. Maybe even a place for parties where people can reserve it to hold parties. I am not sure if there is big profit on such things....does anybody know about that?

Hi,

I used to spend a lot of time in Eastern Europe during the Iron Curtain-Soviet era. I recall the restaurant experience was not the casual I-don't-feel-like-cooking-tonight like it often is here in the United States. Going to a restaurant was an event, where several months salary was spent with liquor and dancing expected.

There is a Russian restaurant in the suburbs of Chicago named White Nights located in the banquet facilities of a motel. They are only open on weekends: Friday, Saturday and maybe Sunday if they have a party. People go there for a fixed priced meal or a la carte, it is zakuski, main course, dessert with a bottle of vodka and/or wine per X amount of people. When people come, it is for the entire evening. If you want conversation, then plan on dining before 8 PM when the band begins at full blast. (I haven't been there for some years, though what I describe is model I observed the last time I went)

What impresses me about this model is the week night dead time is avoided by simply not being open. It also meets a particular culture's expectations of a restaurant experience, though I used to joke they learned their business model from Intourist. However they are very present when people are ready to play. It would also allow you to have another job to keep you going while in the start up phase of this business.

Whatever you do, please keep us up to date because we are interested.

Regards,

Where are you from? What is your nationality?

I would be happy to keep you updated on this, it would be my pleasure. Have you been to Bosnia before?

germuska wrote:

zlatkobijelic wrote:I know that it is not easy to survive in a restaurant business because there is so much competition. But Bosnian food is so much different than all other foods, how much competition would there really be?

I've never worked in the food industry, but I'd caution you about this logic -- whether or not Bosnian food is like other food, you're still competing with all the other options people have for sating their hunger.

You might also consider setting up a catering operation to serve the Bosnian population in your area. There would be a lot less up front cost, and might help you establish a reputation that could be leveraged into opening a permanent space later. It's not exactly the same, but it might be a measured step in the direction you want to go.

Just a thought.

In any case, good for you for dreaming, and for pursuing the dream, wherever it takes you.

Is their a lot of money to be invested in a catering business? I have never really thought about that. That's a really interesting idea.

Do you know anyone that has started off from catering and then becamse a successful restaurant?

Please Vote on the Poll.

I looked at the poll, but to be honest, the written replies you have gotten are far more valuable than a pithy one liner. It's a tough business and I never heard if you have any experience in that industry. That's the kicker for me; if you haven't done it before, don't stake you savings on it.

No, I haven't done it before. I am thinking it would be a successful business because people have not experienced anything like this. Bosnian food is so different from anything else. Everyone, so far, who has tried Bosnian food for the first time fell in love with it. It's fresh made food, it is also healthy.

sorry to say this, but you are deluding yourself in thinking this will not be one of the most difficult and expensive lessons you'll ever force yourself to learn.

with out practical experience and deep pockets to overcome all of the inevitable mistakes you will make as a good intentioned wannabe, which is what you are, you stand to lose huge. are you prepared for that? even the best run most professional restaurants operate on such a low margin of profit, 7-8%, there's not much room for learning as you go, or mistakes before you're out of business. you're talking about perishable goods w/a low profit margin after expenses. i've said it many times. i make my career off of people like you. i fill in the void when they/you realize they're/you're in over your head and need some professional help, or worse, struggle on w/o it and more often than not, go out of business and lose your investment.

the idea has merit. do your homework. getting informed opinions is a start. the truth is, nothing though will substitute for the practical experience of working in the industry for a few yrs. it can not be learned out of a book. it's not glamerous and in fact, can be dangerous if you don't know how to handle a knife or food correctly. a 4 hr course on food handling w/a safeserve certificate does not a chef make.

the catering option offers it's own unique set of problems as well. you'll need a code kitchen to work out of, a space to hold the function, marketing abilities to sell parties, you cannot rely on your friends to keep you in business, trained staff, adequate refrigerated transportation if the kitchen is offsite, etc... while less of an investment than a restaurant, this is not something to enter into lightly, with no experience or idea of just what it takes to pull it off and more importantly, survive and succeed.

take this in the spirit intended. your time and money would be much better spent getting first hand knowledge of the numerous facets of the industry and then making an informed decision. the mere fact that you need to solicit well meaning solid info from strangers on this board tells me you have not done your homework and are asking for trouble if you proceed.

It does not matter if you are the only Bosnian restaurant or not there will be tons of competition. When you open a restaurant you are competing against every kind of food sources. Fast food, fine dining and home cooking.


Do not do it.

The best way to make a small fortune in the restaurant industry is to start with a big one.

First of all... I grew up in a restaurant family. You could have done this in 1962, like my dad did with our diner. Credit was MUCH different then, Mr. Rosen of Rosen bakeries gave my dad a three-year line of credit. Not weeks, years.

Besides... from what you're describing, you're almost describing less of a restaurant and more of a bar/dancing situation. Cathy2's reference to the motel option is plausible, if you had experience and a big line of credit. What about just opening a social hall, or maybe organizing Bosnian parties with live entertainment and minimal food?? Something, anything with less risk.

But... here is my main piece of advice by which my father has lived, and I'm going to defy internet decorum and scream it in all caps because he has seen too many people (even people with restaurant experience) violate it and suffer:

DO NOT SIGN YOUR HOUSE AS COLLATERAL. IN ANY CIRCUMSTANCE. NO MATTER WHAT THE NICE MAN AT THE BANK SAYS.

good luck on whatever you decide to do.

zlatkobijelic wrote:Where are you from? What is your nationality?

I would be happy to keep you updated on this, it would be my pleasure. Have you been to Bosnia before?

Hi,

I am an American of German-Irish heritage who happened to have business in the region.

I have been to Sarajevo several times before the war. I've driven quite a bit of the region having visited multiple times Belgrade, Zagreb, Ljubljana et al. I love the lamb on a spit, Scampi Buzara and freshly grilled fish from the Adriatic.

All the best,

zlatkobijelic wrote:No, I haven't done it before. I am thinking it would be a successful business because people have not experienced anything like this. Bosnian food is so different from anything else. Everyone, so far, who has tried Bosnian food for the first time fell in love with it. It's fresh made food, it is also healthy.

OK. I'll bite. I've been to Sarajevo, Mostar, Gornji Vakuf, Bihac, and Banja Luka...i malo govorim vas jesik. What is particularly different about Bosnian food from, say, the food of the surrounding region? Don't get me wrong--I like Bosnian food and the cevapcici and lamb dishes in Bosnia were a lot better than anything in the area, but I don't remember anything being that much different from a lot of food in the region. It seemed a little bit Turkish/Greek, and a little bit Slavic. Chicago to me seems like a great location for an accessible Bosnian restaurant, given the cuisine. San Jose/Bay Area, I really don't know. It seems like a hard sell to me, but there might be some "sex appeal" to the relative obscurity of Bosnian cuisine, so I don't know for sure.

Advertise your Bosnian Restaurant for free on www.bizniskatalog.com join all the other bosnian businesses in the USA.
Hvala na suradnji, nadam se da cemo vas oglasavati besplatno.

Mike G wrote:I would read about the Bosnian/Eastern European restaurants on this board-- generally speaking they have not been very welcoming to non-Bosnians, both in attitude and in the menu, which is so focused on meat and away from green vegetables; which will be even more of an issue for San Franciscans than less meat-averse Chicagoans. If you really want non-Bosnian business you have to find a way to present it that makes it appealing.

I think Mike G is absolutely right. You have to appeal to non-Bosnians. Here in Chicago there are ethnic restuarants that cater only to their own ethnic group, and in many cases they're pretty marginal operations. If you want to succeed, you have to have as large a customer base as possible. My feeling is that you have to aim primarily at the non-Bosnian market, knowing that if the food is good and authentic, the Bosnian population will come was well.

I know from hard experience (starting a vineyard, winery, and weekend restaurant from scratch) the following:

GO BACK, IT'S A TRAP!!


With all due respect,

Geo