Nw Indiana (chicagoland) Opportunity.

[caseyphelan]

Ok, so I have been reading over this forum for the past couple days or so. I see the frustration people have with newbie’s asking the “vague” questions. So I am going to avoid that as much as I can.

I currently own a Real Estate Investing company in NW Indiana (Chicago land area) for the past few years. Business has been great, and is now streamlined somewhat passively for me. Anyhow, the building I rent my office in just went up for sale, along with the existing restaurant business included. I have always had the “man that would be cool” feeling about owning a restaurant/club, but never put much further thought into it.
I know the owner well enough to understand why he is selling. He is older and micro-manages the business himself, and just wants to hang it up, plus he has some medical problems.

The location is the sexiest part of the deal. There are several bars in a “strip” type scenario and the nightlife is very busy. The owner just doesn’t capitalize on this, being that he is older and really set in his ways. He closes at 10pm, where the rest of the bars are open until 3am.

So my question is – has anyone taken a underperforming rest/bar and turned it around? If so, how was your experience?

Also, locations with several other bars in the same walking distance, is this a benefit? Liability?

All your thoughts very much appreciated.

Casey

[realityrox.com]

When you say under performing - is the venue dead - or is it busy and the owner is losing potential revenue based on closing early?

[caseyphelan]

Right. I think he cuts himself off way to soon. The restaurant does well, and stays fairly busy. The money, in my opinion, is in the nightlife, which he does not partake in at all.

Every bar in this area is packed, elbow to elbow on weekend nights.

[intensity]

Can the area support another nightlife location? Sometimes those old birds know more then they let on. Maybe he has a good nitch and his customers appreciate it, maybe turning into a nightlife scene would take away from it's charm and atmosphere? Hard to say since I'm not there to see it. Those are things you need to judge for yourself.

As far as being near alot of established nightlife..it should be a good thing, the crowds are close by and if you offer something unique they will come through your door to check it out.

[Cablefed]

PM sent! Intensity, sorry man I sent it to the wrong person it was ment for Casey. Cheers!

[caseyphelan]

Can the area support another nightlife location? Sometimes those old birds know more then they let on. Maybe he has a good nitch and his customers appreciate it, maybe turning into a nightlife scene would take away from it's charm and atmosphere? Hard to say since I'm not there to see it. Those are things you need to judge for yourself.

As far as being near alot of established nightlife..it should be a good thing, the crowds are close by and if you offer something unique they will come through your door to check it out.


I agree with you Intensity, he definitely has a niche in his restaurant. But thats all he really has, and its nothing to really write home about. As far as the nightlife damaging the charm and atmosphere it currently has, I also agree with you. Its an older crowd who comes in for the Prime rib/crab legs and pays a ton of $ for it. Changing to a nightlife scene would most likely do-away with them. But I feel its worth it.

Cheers,

Casey

[bruce]

You really want to look hard at changing something that is working. If you are going after the customers in another venue, what can you offer that is different. Sounds like it is already there and you might be better off to enhance what is there now, rather than try to compete for what is not there now.

[caseyphelan]

You really want to look hard at changing something that is working. If you are going after the customers in another venue, what can you offer that is different. Sounds like it is already there and you might be better off to enhance what is there now, rather than try to compete for what is not there now.


I hear you Bruce. I just see much more opportunity in the location. The "regulars" to the restaurant will not take well to the change, so that is something I will have to be willing to sacrifice.

The building is currently 2 stories, so the bottom can stick to the restaurant and the top have more of the club atmosphere.

Does anyone have a setup like this? 2 different atmospheres in the same building?