Hell’s Kitchen

Hi Scott,

My wife and I are in our early 30s and are both nurses. She has decided she wants to put our money into starting a restaurant. I think it is a terrible idea, considering our lack of experience and the low success rate of restaurants. Please help me change her mind!

Gary

Hi Gary,

Order up!

I suppose your wife could argue that she’s being “greedy when other people are fearful”, as Warren Buffett says.

Though I couldn’t see Buffett investing his money into a start-up restaurant right now.

After all, figures from Treasury estimate that 441,000 jobs will be lost in the hospitality sector, and the industry’s peak body is warning that 20% of restaurants could go down the gurgler.

In reality, the industry was already struggling before the pandemic, as a result of fair work compliance off the back of high-profile wage theft cases. Most small business people buy themselves a job. Many restaurateurs discover they’ve been served up a shank sandwich.

My thoughts?

You’re both in one of the few pandemic-proof positions — nursing — so I wouldn’t be leaving it.

However, if she’s determined, why not suggest she work evenings in a restaurant for the next 12 months? She can think of it as a paid internship. It’ll give her an entree to the industry, and she’ll get to see just how hot it is in the kitchen. I’d say it’s the best way to work in a restaurant and come out ahead over the next 12 months.

Scott