How Slim are Restaurant Margins?

All related to local culture and politics. Things are open in Payson - even the movie theatre. And lots of people are going in.
Drive up to Flagstaff and it feels like you’ve entered the twilight zone.

Are there many restaurants went under? Anecdotally, I only see one restaurant* go under in my neighborhood. *Five guys - hardly any customers before Covid-19 anyway. Should be able to cover variable cost by doing takeaways: other than chefs#, need 1-2 staff covering all duties, most people order online :slight_smile: # May be can reduce the number of chefs? @caiguycaiguy?

More restaurants Need to close. Too many serve mediocre to bad food. The chains are just basically heating things up and assembling it for service. There aren’t that many real “chefs.”

Many are not closing because there is just too much dam money everywhere. So many people/companies flushed with cash. You put some in stocks but “volatility/risk” is high. You have plenty in real estate so now you invest in other businesses like boba shops, restaurants, or salons.

About 12% of Texas restaurants have permanently closed because of the COVID-19 pandemic, said Emily Williams Knight, the CEO of the [Texas Restaurant Association].

About 12% of Texas restaurants have permanently closed due to coronavirus, says Texas Restaurant Association | wfaa.com

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:ramen:

Location, Location, Location. A Nice Hot Sandwich, Fast Food Restaurant in downtown San Carlos Ca. Beer & Wine License, on a 1,200 sq.ft. has indoor and outdoor seating. Seller claims Gross Annual Sale is about $240,000 as an absentee ownership. Rent is $4,500/m including NNN. Lease expires 2022 with 1 x 5 years option. Payroll is about $6,000/m. It is located in a very busy street, lots of activities and foot traffic. You could keep the concept as a Hot Sandwich Place or bring your own concept. The Hood hock up to the roof is available. The San Carlos Chamber of Commerce organizes the San Carlos farmers Market that runs every Sunday year round.

Asking for 99K. @caiguycaiguy how much do you think this restaurant will net?

Service is king here :grinning:

Burgers and hot dogs? If I am not wrong, more than 50% of the eateries and cafeteria are “heating” food only. But they are conveniently located for office workers :grinning:

At first look, I don’t think it’s profitable… or the seller is fudging numbers.

$6000/m for payroll seems low especially for absentee owner. Decent help is hard enough to find around minimum wage. A good manager/supervisor is going to cost more and is even harder to find.

What about all the other costs? Food, equipment/maintenance, workers comp, insurance, city license / etc.

Buyers Beware.

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Zanze has the best cheesecake in the universe.

This is the flip side of the people saying COVID only kills old and weak. The shutdown is only killing the poorly run or unprofitable businesses. When things fully reopen they will be replaced if demand exists. Good for capitalism? That doesn’t mean I don’t feel for the business owners, but the beginning of the shutdown was a good time to ask themselves if it was time to close shop and move on.

Closing sounds great. Except many are stuck with long leases and liable for years of rent. Closing is expensive.

Vegas buffets are back! Sort of.

Special deal at Cheesecake Factory.

I hope this doesn’t louse up that great new sushi place Payson got. Their first week was so intense that by the end of it you only got a fork - no chopsticks. They ran out.

Haven’t been to Pizza Hut for 15 years.