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.