Loopy Ideas

Brand Spanking New Ideas => Business & Commerce => Topic started by: Jay Sadie on July 20, 2010, 06:43:13 AM

Title: Timeshare Restaurants - Affordable Restaurant Ownership
Post by: Jay Sadie on July 20, 2010, 06:43:13 AM
We have all heard of Timeshare, a form of ownership or right to the use of a property, or the term used to describe such properties. These properties are typically resort condominium units, in which multiple parties hold rights to use the property, and each sharer is allotted a period of time (typically one week, and almost always the same time every year) in which they may use the property. Units may be on a part-ownership or lease/"right to use" basis, in which the sharer holds no claim to ownership of the property.

The other night my wife and I were having dinner at one of our favorite restaurants. There was a nice fire going, and our conversation somehow ended up in discussing how much more it costs to buy a bottle of wine at a restaurant, versus at the local liquor store. Most restaurants charge a corkage fee if you bring your own wine, and if you add that to the price you paid at the liquor store, combined with the hassle of having to carry it with you, it almost makes more sense to just buy it at the restaurant. Obviously this only applies to less expensive wines. When it comes to expensive wines it makes more sense to bring your own wine.

During our discussion we tried to come up with an idea of how to possibly create a system that would make more sense. One of our ideas was for restaurants to provide regular patrons with wine lockers. There could be a small monthly fee for this courtesy, which could also include the corkage fee. Or, an even better way would be for restaurants to work closely with wine suppliers/farms, offering special deals to patrons. Think of how wine clubs work. If a patron spends more than a predetermined amount in wine purchases per month, then the monthly locker fee can be waived.

Why would restaurants want to offer wine lockers? What's in it for them? Surely a big part of their profit is derived from liquor sales. Well, by providing such a service they will ensure more frequent visits to their restaurants. Think of it as a hook. If you have a nice collection of wine at one of your favorite restaurants you would tend to visit that restaurant more often than one where you have to purchase wine at a premium price. This ensures a steady flow of regular patrons.

Okay, enough said about wine lockers. Why I mentioned this is because this idea sparked another, grander idea. Don't know where it came from, but when one is relaxed, with a glass of fine wine, and mesmerized by the flames of a crackling fire, it can sometimes spark a thought.

Would it not be nice to own one of the tables in the restaurant?

At first it didn’t seem to make much sense, but as we talked about it, it started to sound like a pretty good idea.

Owning or opening a restaurant has probably crossed most people’s mind at some point, especially when thinking about starting a business. For those who seriously considered it, it would have soon become apparent that there were many drawbacks in going down that path. Firstly, it costs a small fortune. Secondly, it requires hard work, with very long hours, sometimes till way after midnight. It is definitely not a business for the average entrepreneur.

Now imagine that you could own just one table (or more if you prefer) in a restaurant, without having to work long hours, or having to come up with a large sum of money? Take it further than this if you like, and own one or more tables in multiple restaurants. This will spread your risk, addressing the “Don’t put all you eggs in one basket” dilemma.

How will this idea work?

Firstly, it will have to be implemented by a company who has the money and resources, preferably a company who has timeshare experience.

Secondly, a new chain/brand/theme of restaurants should be developed, preferably on a franchise basis. Marketing is vital, as with other forms of timeshare. Opening a single restaurant with this concept will pose many challenges, although it might still work. An existing, popular restaurant switching to this model may be a good example. Maybe the owner would like to retire, and by doing so, he/she would not have to sell the business, but in stead change its structure to provide a great income during retirement, without the hassle of managing a restaurant.

Thirdly, a very capable restaurant management team must be assembled. These managers are vital to make this concept successful. The timeshare owners will be “silent” partners, and will not be responsible for the day-to-day running of the business.

Fourthly, a monthly fee must be paid by each timeshare owner. This fee will cover all costs associated with running the restaurant, and will ensure a steady cash flow, especially during slow or bad times.

Structure:


Financial Motivation:

Franchise or Business Owner:

Timeshare Table Owner:

Restaurant:

Restaurant Manager:

Restaurant Employees:

At the end of each fiscal year any accumulated profits by the Restaurant (after all costs and percentage distributions above have been deducted), less a 40% retainer, will be divided amongst all parties, based on the same percentage structures. This will provide another financial incentive to all parties concerned.

Challenges:


Summary:

Restaurant timeshare makes it possible for the average person to own a piece of the restaurant business. Imagine getting seated at your own table in a restaurant. Imagine giving someone you know an invitation to enjoy an evening at your table, a great gift for someone’s birthday, anniversary, or any other special occasion.

And finally, imagine receiving an income every month from your own restaurant table(s).


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