Depending on how smart they are (or people around them) and how old they are when they retire, professional athletes usually tend to open some kind of business.
If they were at least somewhat good of an athlete, they usually attempt to parlay that success into a new career or float a bit on that fame by doing promotional work, game analysis, or TV broadcasting.
Many professional athletes have a tough time adapting to life after sports because they overvalue how long their careers will last and how much money they will make and never really properly plan how to take care of themselves once that career is over.
Not to mention the whole point of their self-identity is tied up in that sport for considerable years earlier, which implies facing reality where they’re not a pro-athlete anymore is another challenge in itself that can also cascade into discipline concerns.
That said, professional athletes seem to have an affinity for being a part of the restaurant industry because of the diversification of their assets, personal branding, the perception that restaurants are a social and glamorous business, and occasionally simply passion for being restaurateurs.
There are also a bulk of athletes in most major pro leagues, the ones nobody talks about after they’ve quit playing, who’s not that fortunate though and will require to basically find a second career, particularly the younger they were when they retired (and hopefully with no significant health problems).
Enjoy reading the rest of the article for a detailed explanation!
Why Do Professional Athletes Open Restaurants In General?
While some just lend their names to a restaurant (or a restaurant chain) in exchange for equity or a lucrative marketing deal, others acquire a majority position and may be involved in menu development, décor, and other aspects of the business.
Restaurant operating partners/chef-culinary partners are required for all pro athletes who invest in the restaurant business to develop and manage the culinary side of the business — this is a requirement for success.
Professional athletes enter the restaurant sector for a variety of reasons, including:
1. Asset diversification – owning a restaurant can be a good strategy to diversify a high-net-worth financial portfolio in a way that a pro athlete can appreciate.
A highly profitable restaurant can provide a fantastic return on investment.
Though it is certainly a risky business (restaurant failure is all too prevalent), partnering with the proper operator (a fantastic culinary partner) can increase the chances of success.
Not only may this pay off big time, but it could also open the door to expanding the concept to numerous branch, which some athletic investors may choose to do.
2. Personal Branding – some professional athletes believe that a fantastic restaurant will boost their personal brand, increasing their marketing power and earning possibilities.
Some people want their business to be in their hometown because they want the fame that comes with it.
Others choose a major city where they are well-known.
3. The perception that restaurants are a social and glamorous enterprise – pro athletes see owning a restaurant as a personal achievement as well as a social benefit.
They feel that eating exquisite food, sipping fine wines and cocktails, and shaking the hands of enthusiastic admirers – all in a restaurant bearing their name – are enjoyable pastimes that provide a break from their more serious lives.
Many athletes believe they understand the restaurant business model because they are savvy customers who like good food and drink.
The restaurant industry is one that most people can identify with and relate to, so it attracts a lot of individuals, including athletes.
It is, however, a more complex business plan than simply providing wonderful meals.
The correct operating and culinary partnership — the individuals who do the grunt work behind the scenes every day and every night — is critical to pro-athlete restaurant investors’ success.
There’s Something Addictive In Opening a Restaurant
“Despite the hazards of owning restaurants, some athletes believe there’s something addictive about it,” Forbes wrote in a 2007 piece titled How Athletes Score (Or Don’t) As Restaurateurs.
On the other hand, they quote one NFL player who says of the desire to own a restaurant, “Being in the restaurant business is like having malaria.”
“You never know when it’ll rear its ugly head again,” said the NFL player.
We agree. It’s also a little like getting married. You may wonder why individuals continue to marry despite the slim chances of success.
Well, I’m about to tie the knot. So, like every other person willing to take a chance, like any other gambling addict, I feel I can overcome the odds.
It could be called faith, folly, confidence, or a combination of the three. The basic principle remains the same.
Despite the numerous reasons why they shouldn’t, professional athletes continue to launch restaurants because they believe they are extraordinary and will thrive where others have failed.
Furthermore, the entry barrier is low despite the high expense of opening a restaurant (a tiny, 40-seat bistro in a city center will likely cost around $250,000).
Opening a restaurant can be a very tempting idea for anyone
As a former semi-pro athlete, I’ve had brief thoughts about opening a restaurant, and before I know it, I’m thinking about it every waking second.
After a horrible meal out, when you can plainly see where things went wrong, or after a terrific meal out, you think you could do it.
Professional athletes think the same way.
Also, a safe and pleasant center where people can gather and mingle is beneficial to every community.
Unlike taking profits, community spirit is unquantifiable but can feel like the icing on the cake.
This is why some of them want to create a place where locals can go for birthday parties, family lunches, or even a solo coffee with a nice book.
Pro Athletes Are (Usually) Not Real Restaurateurs
Despite Leonard Cohen’s famous song, “Everyone knows,” not every professional athlete knows or wants to actually run a restaurant business.
The fact that operating a restaurant is one of the worst and riskiest financial investments you can make doesn’t illustrate enough the most difficult part of running a restaurant.
It’s part of the restaurant lore that the work is difficult. The long hours, the low success rate, and profit margins are razor-thin.
However, neither this does not deter anyone. The number of restaurants in Canada increased from 89,000 to 94,000 in the three years leading up to the epidemic. Despite a restaurant labor scarcity making it increasingly difficult to staff these establishments, this represents a 5.6 percent gain.
So what are professional athletes, masochists? Why do they continue to torture themselves like this?
The truth is, they don’t normally run restaurants, which is fortunate for them. They have someone in charge of it.
Finding the proper individual to operate a business is quite simple when you have cash on hand.
Aside from that, professional players who aren’t interested in the restaurant industry don’t have the time to run one. And if they do have free time, they prefer to spend it golfing or socializing with their friends or family.
Some Athletes Simply Enjoy Opening Restaurants
To even consider working in a restaurant, you must have a strong desire to do so.
Starting the restaurant business is not for the faint of heart, as it entails long hours, sacrifices, and risks.
If pro athletes enjoy working in restaurants and want to give their customers the best experience possible every time they come in, they 100% can build a long-term business.
They have nothing to lose and everything to gain if they enjoy making decisions on the field and are confident in their ability to lead their team to success (you know, like in sports).
Also, being their own boss allows them to call the final shot after a long career of being coached.
They have the power to make major decisions and control their own destiny. They can use all of the skills they’ve acquired through sports to help shape their business.
But that doesn’t mean they understand how it feels to be responsible for everything, to be burdened by unimaginable debt for a potentially worthless investment.
Being their own boss brings with it a new set of responsibilities and areas that can cause a variety of stresses and worries, leaving the athlete who has never been a leader feeling a little overwhelmed.
“Despite a lack of natural ability, I did have the one element necessary to all early creativity: naiveté, that fabulous quality that keeps you from knowing just how unsuited you are for what you are about to do,” says Steve Martin on the title page of the first Momofuku cookbook.
This naiveté is necessary for the restaurant industry.
You can read every book and consult every expert, just like you can with marriage or parenting.
But until you try it, you’ll never know if you’ve got what it takes. And it can be too late by then.
The risk is squarely on their shoulders, and it can feel overwhelming; however, some have their crew to support them and help them carry the load.
