Maximizing Restaurant Profits for Investors and Landlords

1min Snip

00:00

Play full episode

Summary

Transcript

Episode notes

The approach involves constructing a model for the restaurant to determine what tenants should pay, aiming beyond what they could pay. By starting at the breakeven point and aligning with potential growth, significant profit increases can be achieved. A practical example demonstrated a strategy where a client's restaurant revenue was projected to increase from $1.7 million to $2.5 million. By investing $150,000 in improvements and negotiating a rent agreement for 8% above the previous revenue peak, the landlord's income soared. This model ensures that restaurants can capitalize on higher profit margins beyond the initial break-even point, as profits substantially increase with higher revenues.

Patrick Donley and John Marsh dive into how John rebuilt his life and his community, how he worked his way out of over $1 million in debt, how he went on to renovate 300 properties and be part of starting 60 businesses, why he likes to focus on “irreplaceable real estate, and why he thinks historic small towns could be their own asset class in the future.

IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:26 - Why having hope in your future is having power in your present.

02:26 - How he was making more money in high school than his teachers.

08:45 - How he worked his way out of over $1 million in debt, healed his relationship, and transformed his life.

08:45 - How he got his start rebuilding homes in Opelika.

08:45 - What his first renovation was like and why it took 6 ½ years.

10:49 - Why having no outside capital can be a blessing.

10:49 - How he went on to renovate 300 properties and start 60 businesses in Opelika.

14:08 - How a $15,000 profit became the seed for much bigger projects.

14:08 - How he used owner financing to build his portfolio.

14:08 - Why Marsh Collective focuses on companies, couples, and communities.

21:01 - Why he starts revitalization of a town with an iconic food and beverage project.

37:51 - How do you know you’ve found the right mentor?

46:56 - How he evaluates the “5 F’s” — faith, family, fun, fitness, and finances.

58:07 - How to work at the intersection of purpose and profits.

58:07 - Why he likes to focus on “irreplaceable real estate”.

01:02:58 - Why historic small towns could become their own asset class.

01:10:32 - Who are some of his favorite guests who have been on his podcast?

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
5 Voices personality test.
Positive Intelligence test.
Redemptification podcast.
Recommended Book: Screwtape Letters by C.S. Lewis.
Recommended Book: Unreasonable Hospitality by Will Guidara.
Check out the books mentioned in the podcast here.
Enjoy ad-free episodes when you subscribe to our Premium Feed.

NEW TO THE SHOW?

Follow our official social media accounts: X (Twitter) | LinkedIn | Instagram | Facebook | TikTok.
Check out our Millennial Investing Starter Packs.
Browse through all our episodes (complete with transcripts) here.
Try Kyle's favorite tool for picking stock winners and managing our portfolios: TIP Finance.
Enjoy exclusive perks from our favorite Apps and Services.
Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets.
Learn how to better start, manage, and grow your business with the best business podcasts.