Restaurant Reset

[Terrel L. Shields]

As states jack up minimum wages, food costs rise 20%, and crime cost franchises big bucks, more are closing unprofitable stores. And even the headquarters of companies are moving to cheaper digs.

 

[George Hatch]

I was just thumbing through all the listings (no filters) for commercial in a couple counties yesterday: actives, solds, expireds. I have never seen so many listings for restaurant properties in all my years in this business. And not by a little, either.

(I was looking for comps for a convenience store I'm appraising)

I think perhaps the ghost kitchen + delivery combo might become a bigger factor in the restaurant business.

 

[Fernando]

Fast Food generally not good for our diets.
Less Americans eating out at those places. More wanting to eat healthy.

 

[Terrel L. Shields]

Less Americans eating out at those places.

Price is the issue. Who wants to pay $15 for a big Mac? $8 for a cup of coffee? I was raised on cafes that lunch was $1.10 and a cup of coffee was a dime. And it was coffee not some sugary milk drink was foam on the top and a faint taste of toffee mixed with Sanka. I cannot find a place to buy a salad and glass of tea now for less than a $20. One exception. We have a catfish place not far away that is still $14 and $2 for coffee. Leave a $4 tip and you spent $20.

 

[OSU Beavers]

And they are padding your tips

 

[Surf Cat]

You don't "go" to Denny's..... you just end up there.

The biggest problem though is ever since Covid, all the restaurants we used to go to serve smaller portions, use cheaper ingredients, and charge more in price. That's a recipe for disaster, no pun intended.

On top of that, the Interiors to include tables, chairs, floors, beamed ceilings, window sills, blinds, etc. they're all haggard and haven't been tended to. All these aforementioned items don't have to be new, but they have to be clean. Don't get me wrong, I'm not a prude. As a matter of fact I like hole in the wall eateries. But when you go out with the wife to spend your hard-earned cash, it should be enjoyable.

It seems there's no pride in ownership.... it's just survival mode. Even with all the complaints I make about appraising, I still go to inspections with ironed khakis, a nice polo shirt and I'm shaven.

It's just a hard time for restaurants right now. Shoot, it's hard in many sectors.

 

[Fernando]

You don't "go" to Denny's..... you just end up there.

The biggest problem though is ever since Covid, all the restaurants we used to go to serve smaller portions, use cheaper ingredients, and charge more in price. That's a recipe for disaster, no pun intended.

On top of that, the Interiors to include tables, chairs, floors, beamed ceilings, window sills, blinds, etc. they're all haggard and haven't been tended to. All these aforementioned items don't have to be new, but they have to be clean. Don't get me wrong, I'm not a prude. As a matter of fact I like hole in the wall eateries. But when you go out with the wife to spend your hard-earned cash, it should be enjoyable.

It seems there's no pride in ownership.... it's just survival mode. Even with all the complaints I make about appraising, I still go to inspections with ironed khakis, a nice polo shirt and I'm shaven.

It's just a hard time for restaurants right now. Shoot, it's hard in many sectors.

My restaurant tenant is late and falling behind in his rent.
Reading Yelp, customers are complaining about the food being small portion and lacking vegetables normally expected for their entrees.
Some restaurant owners don't know how to do business alienating their customers in returning.

 

[Terrel L. Shields]

Some restaurant owners don't know how to do business alienating their customers in returning.

To me, success in a cafe is to provide good portoins for a reasonable price. Coffee is cheap. There is no excuse for it costing over $1. Seriously think about it. How many cups of coffee will a pound make? 50? 60?

Otherwise, you need a classy or unique place and serve the evening clientele top food. We have a few such places, a couple of all you can eat catfish places, a fine dining place fo a huge steak, a Mennonite cafe that offers the best pies in the area, and an Amish one that serves huge meals and desserts to kill for. While pricy, it works for the upscale crowd. Otherwise, it's to serve working people an affordable meal and if they cannot do that, then they are toast. Waffle House is still reasonable although 20% or so higher than 5 years ago, but you can still eat for less than $15. and places that can keep the price below $10 are packed for the lunch crowd of workers. And a lot of people here simply drink water and do not buy overpriced drinks. Again, there is no excuse for expensive coffee, tea, or even soda.

 

[Fernando]

To me, success in a cafe is to provide good portoins for a reasonable price. Coffee is cheap. There is no excuse for it costing over $1. Seriously think about it. How many cups of coffee will a pound make? 50? 60?

Doesn't good taste matter to you? Even a bottle of water can cost over $1. How much cheaper for hot coffee?

Otherwise, you need a classy or unique place and serve the evening clientele top food. We have a few such places, a couple of all you can eat catfish places, a fine dining place fo a huge steak, a Mennonite cafe that offers the best pies in the area, and an Amish one that serves huge meals and desserts to kill for. While pricy, it works for the upscale crowd. Otherwise, it's to serve working people an affordable meal and if they cannot do that, then they are toast. Waffle House is still reasonable although 20% or so higher than 5 years ago, but you can still eat for less than $15. and places that can keep the price below $10 are packed for the lunch crowd of workers. And a lot of people here simply drink water and do not buy overpriced drinks. Again, there is no excuse for expensive coffee, tea, or even soda.

I used to like big portions. Still do but I can't eat as much and now I prefer good quality food. When it's delicious and good ambiance, it's worth the money.

 

[CCAAMO]

How many cups of coffee will a pound make? 50? 60?

Only if you want the coffee version of Coors