The Restaurant Doctor - Electronic House Call

ELECTRONIC HOUSE CALL - October 9, 1998

THE TERRIBLE TWOS
I get a lot of questions about opening a second unit. Perhaps my thoughts on the subject will help you get ready to expand . . . whether you ever choose to do it or not.

By way of background, I had an inquiry from a reader who was looking for sources of research to decide where to open a second restaurant. I gave her some ideas and added a comment that prompte the following dialogue

Q: I am very curious, however, on a remark you made in your response to me. You mentioned that opening the second restaurant would be the hardest thing done - more so than the first and all the others following! Would you be kind enough to say why? The first took three years, a lot of money and losses and lessons! We can't imagine why the second would be harder!

A: Primarily because you can't run two the same way you run one. You are past the point where you can do it all yourself and you go from managing restaurants to managing managers. You need to have better systems since you will not (necessarily) be on the spot to decide how situations should be handled. In fact, it is usually not that you run #2 and find a manager for #1 . . . you typically end up with two new managers and you get pulled away from the day-to-day of running a restaurant to the business of running the business. It is quite different.

My suggestion is to get #1 to the point where it can run as well or better without you there before you seriously consider a second unit. One test is to imagine how it would feel (on both ends of the phone) if you suddenly called the restaurant to say that you have to leave the country for three months and you will not be reachable. Be aware, too, that restaurants are like children. The new child often gets all the attention (and the better decor, equipment, etc.) which creates jealousy and occasional tantrums in the first child. I acknowledge that new projects are more exciting than old ones, but be sure that your first unit doesn't feel abandoned.

Does that help explain my comment a little better?

A NOTE FROM THE DOC
The only sure way to expand without killing yourself is to make yourself dispensable. This is not a bad idea even if you don't plan to expand . . . at the least it will free you up to have a life!

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