Last Sunday the difficulties these economic times pose for anyone and everyone in the industry became even more apparent than they had in the past. I was having brunch at
The fantasy with restaurant owners is they assume the price they are asking for their restaurant to always be reasonable, financially feasible, and that the potential owner can just walk in and make the numbers. Yet for years they have been unable to make payroll, rent, pay utility bills or even eek out a paycheck. But, they still ask unreasonable amounts for future failure.
It always proves true the perceived value and actual value of a restaurant is usually decimal points apart. And, some chefs will be fortunate as owners, make a good living, find stardom, begin a small group of multi unit concepts and prosper. We hope the chef sitting at The Fig is one of these.
After brunch, I went to look at a home in
Unfortunately, he didn’t get as much money for his restaurant as he thought. He had to re mortgage the house. He maxed out the equity he had in the house, putting himself in a precarious financial position. With his restaurant gone, little equity in his house, the owner is among the many feeling the tightening economy and the skyrocketing inflation. Worse yet, he has moved to
Fortunately for all of us, there are people who still want to own restaurants.