Twelve Years After Sandy, Mad Hatter Gets New Owner
And Sea Bright might OK new purpose. The property housing the Mad Hatter, the landmark bar and restaurant in Sea Bright that was destroyed in superstorm Sandy, was sold at a foreclosure auction last month after its owners couldn’t get the financing they needed to rebuild. Meanwhile, borough officials last week proposed an ordinance that would change the zoning on the property to allow for residential use. A public hearing on the new ordinance has been scheduled for Oct. 15. The moves set the stage for a new chapter for the building that has stood boarded up and unfinished, one of the final high-profile pieces at the Jersey Shore yet to recover from Sandy. The property was sold at the Monmouth County Sheriff’s Sale on Aug. 12 to an undisclosed buyer for $1,000, according to county documents. The deed hasn’t been recorded, so the new owner has not yet been revealed. The new owner would be responsible to pay back millions of dollars owed creditors, including the New Jersey Economic Development Authority. It marks the end of the line on a decade-long project for Scott and Amy Kelly. The Sea Bright residents owned the Mad Hatter since 2006, only to see the building uprooted and filled with sand when Sandy swept through the Shore in 2012. Over the objections of a neighbor who lived across the street, the Kellys won approval from the town to demolish the bar and restaurant and replace it with a three-story 15,000-square-foot venue that would overlook the Atlantic Ocean and, they hoped, would become a drawing card for the borough. Contractors knocked down the old restaurant, and, with the help of a $5 million disaster loan from the EDA, began to rebuild. But with the project 75% complete, the Kellys ran out of money; a loan backed by the U.S. Small Business Administration fell through in December 2018 when the federal government shut down, according to court papers. A deal with one potential investor, Ridgewood-based SnowPoint Capital Management LLC, fell through when the EDA, still owed money from the disaster loan, declined to sign off on it. The Kellys put the property on the market in May for $8.5 million, but they didn’t find a buyer before the property was sold at a foreclosure auction last month…
How Restaurants Are Embracing Creativity
To combat inflation. Restaurants are proving that necessity truly is the mother of invention (a saying commonly attributed to ancient Greek philosopher Plato) as they’re forced to adapt their game plans to survive in the face of continuing economic challenges and inflation. More than ever, consumers are making their dollars count and are consistently seeking more out of their dining experiences, notes Jonathan Weathington, CEO of Shuckin’ Shack, which has nearly 20 locations scattered throughout the country. “I don’t believe this is a change in behavior—this is why full-service restaurants exist,” he says. “It’s our goal to ‘be on the rotation’ of the average diner and blow them away with the experience … We’ve got to be seen, make the conversion, and retain the customer for more than one visit.” The expectations of significant value and an excellent service experience in exchange for guests’ hard-earned money are much larger than they used to be, adds Dan Sweatt, field marketing manager at 56-unit Wings and Rings. “Full-service restaurants must up their game since every transaction is critical to generating repeat business.” Bob Johnston, CEO of Melting Pot, highlights the pressure placed on unit-level economics across the industry. “We are greatly challenged with rising costs in virtually every area of our business,” Johnston says. To counterbalance these pressures, Melting Pot, like many brands, has had to increase prices at its 92 restaurants. However, the brand’s focus remains on delivering the “perfect night out,” which comes down to the overall experience. Despite the price hikes, consumer satisfaction and social reviews indicate that guests still perceive Melting Pot as delivering value, he notes. “In the past and now, we continue to thrive in this environment because our guests often choose to celebrate something in their lives by enjoying a Melting Pot experience,” Johnston says. “Generally, even in tough times, people do not want to forgo celebrating. This benefits us more than casual dining or fast food, which cater more to physical appetites. The Melting Pot is about satisfying an emotional appetite for an experience involving being around people you care about.” Melting Pot recently launched a “Down to Fondue” Happy Hour program, which offers half-price cheese and chocolate fondues, along with drink specials, as a way to attract cost-conscious diners without compromising on the brand’s iconic experience. “We believe there’s tremendous potential to grow new and incremental revenue with the launch of this program and daypart,” Johnston says…
Bielat Santore & Company – Restaurant Industry Alert
NJ LIQUOR LICENSES FOR SALE
RECENT NJ LEGISLATION PROVIDES POTENTIAL
TO TRANSFER INACTIVE LIQUOR LICENSES TO ADJACENT MUNICIPALITIES
Wall Township “C” Liquor License – Type 33…Asking $600,000
Long Branch “C” Liquor License – Type 33…Asking $350,000
Jackson “C” Liquor License – Type 33…Asking $400,000
Old Bridge “C” Liquor License – Type 33…Asking $395,000
Berkeley Township “C” Liquor License – Type 33…Asking $275,000
Neptune City “C” Liquor License – Type 33…Asking $350,000
Middletown “C” Liquor License – Type 33…Asking $450,000
Call 732.531-4200 for additional information.
We invite you to visit our website, where you will find all our current listing inventory, a library of helpful industry resources and a collection of client testimonials expressing their assessments of our work and our service within the restaurant industry.
A voice for our industry. If you find these weekly bulletins informative and beneficial, we kindly ask that you write a brief Google review providing a vote of your appreciation. Simply click this link and leave a review. Thank you.
Strategies for Restaurant Owners
As summer staff departs. The key to managing the departure of summer staff lies in proactive and intentional scheduling. As the end of summer nears, restaurant owners face the familiar challenge of transitioning operations when their seasonal staff, such as teenagers, college students, teachers, and even retirees, return to their regular routines. According to data from the National Restaurant Association, the industry added 525,000 seasonal jobs this summer, marking the second consecutive year of significant hiring. Effectively managing this transition is crucial for maintaining service quality and operational efficiency. Here are strategic tips to ensure a seamless shift. Start by building out schedules well in advance, considering the dates when seasonal workers will be leaving. Ask seasonal employees when they plan to depart with some lead time. This helps identify potential staffing gaps early and make informed decisions about hiring and training new employees. Operators can promote workforce autonomy by giving employees a platform to swap shifts and request changes themselves. Pre-set rules and parameters ensure compliance, and positions can be set so shift swaps only occur between similar individuals. Automation is a powerful tool in the restaurant industry, especially during transitional periods. Consider automating routine tasks such as inventory management, order processing, sales forecasting, and staff scheduling to reduce the burden on remaining staff and ensure that critical operations continue smoothly and profitably. In addition to automation, document all essential workflows within a digital platform. Create detailed checklists for daily, weekly, and monthly tasks, ensuring no critical duties are overlooked. This documentation is a valuable resource, helping team members quickly understand their responsibilities. To prepare for the departure of summer staff, it’s crucial to ramp up recruitment efforts well before the transition. Streamline this process by centralizing job postings, applicant reviews, interview schedules, candidate tracking, and communication with potential hires…
How Restaurants Are Catering to a Growing Number of Solo Diners
Becoming a restaurateur is a major milestone. Parisa Imanirad, a scientist and cancer researcher from San Francisco, is married and has a wide circle of friends. But once or twice a week, she goes to a restaurant by herself. Imanirad said dining alone gives her time to think or read. She tries not to touch her phone and relishes the silence. “It’s like a spa, but a different type,” Imanirad said during a recent solo lunch at Spruce, an upscale restaurant in San Francisco. Imanirad isn’t alone in her desire to be alone. In the U.S., solo dining reservations have risen 29% over the last two years, according to OpenTable, the restaurant reservation site. They’re up 18% this year in Germany and 14% in the United Kingdom. Japan even has a special term for solo dining: “ohitorisama,” which means “alone” but with honorifics spoken both before and after the word to make parties of one feel less hesitant. In a recent survey, Japan’s Hot Pepper Gourmet Eating Out Research Institute found that 23% of Japanese people eat out alone, up from 18% in 2018. As a result, many restaurants in Japan and elsewhere are redoing their seating, changing their menus, and adding other special touches to appeal to solo diners. “Even so-called family restaurants are increasing counter seats for solitary diners, and restaurants are offering courses with smaller servings so a person eating alone gets a variety of dishes,” said Masahiro Inagaki, a senior researcher at the institute. OpenTable CEO Debby Soo thinks remote work is one reason for the increase, with diners seeking respites from their home offices. But she thinks there are deeper reasons, too. “I think there’s a broader movement of self-love and self-care and really… enjoying your own company,” Soo said…
Best Practices for Community Engagement to Boost Loyalty
Community engagement is a long-term investment in your brand’s future. As technology continues to shape how restaurants operate, one timeless truth remains: community engagement is the cornerstone of long-term success. Restaurant brands that develop and implement a community engagement strategy have the opportunity to not only boost loyalty but also resonate with the younger demographic. At the heart of this strategy is the belief that a restaurant isn’t just a place to eat; it’s a hub for community connection. With a focus on creating initiatives that go beyond the transactional relationship, restaurants can foster a sense of belonging and shared purpose. Here are some important aspects to strategies of community engagement: Local Partnerships: Collaborate with local businesses, schools, and nonprofits to create mutually beneficial relationships. This includes hosting fundraising events, sponsoring local sports teams, and providing food for community events. These partnerships help embed a brand into the fabric of the community. Digital Community-Building: Leverage social media and loyalty apps to create an online community where customers can share experiences, access exclusive content, and participate in challenges. By integrating technology with community engagement, restaurants can create a seamless experience that meets customers where they are—both physically and digitally. In-Store Experiences: Restaurants serve as community centers, where customers can gather for more than just a meal. Host live music, cooking classes, and other events that reflect the interests and values of the community…
Restaurant Brands Charge Onto Supermarket Shelves
Brands increasingly are finding success with products in the grocery aisles. Restaurant brands are increasingly showing up in supermarket aisles, from frozen foods to branded sauces. While the strategy is not new, restaurant companies are becoming more familiar to grocery shoppers and are seeing revenue and marketing potential in consumer packaged goods (CPG). Chick-fil-A, for example, is popping up among the sauces. Same for Subway. McDonald’s last year made a limited-time offer of dip-packaged Big Mac sauce for other menu items. And KFC in 2020 offered its KFC sauce and has added other flavors since. Meanwhile, P.F. Chang’s China Bistro staples and TGI Fridays stuffed potato skins and mozzarella sticks — popular in-restaurant appetizers — are prominent in the frozen-food aisle. Brands like Whataburger find that CPGs keep the brand prominent in the consumers’ kitchens and minds. “Selling Whataburger retail products in grocery stores like H-E-B and Walmart is an important part of our business and helps us meet our guests where they’re looking for our brand,” said Rachael Jones, Whataburger group director of consumer packaged goods and retail brand marketing. Whataburger has offered its ketchup and mustards in groceries for more than 10 years, but it has been expanding its offerings as it sees popularity at the grocery grow. “Our grocery business alone drives a significant revenue stream for the company, and we continue to see increased demand annually,” Jones said via email. “We anticipate this revenue to grow as we expand our distribution partners and introduce new products to the market,” she added. “What started in 2013 with Whataburger Fancy Ketchup, Spicy Ketchup, and Original Mustard in H-E-B locations in Texas has grown through expanded distribution agreements with 21 grocery partners, bringing Whataburger grocery fan favorites to more than 5,000 stores across the United States and Mexico.”
Four Strategies to Manage a Weird Restaurant Consumer Environment
Enhancing the consumer experience and implementing balanced prices. There has not been a shortage of restaurant consumer pulse checks of late, as the macroeconomic environment seems a bit … wonky? To be sure, things have been weird for a while now and, unfortunately, nobody really has a playbook on how to smooth out a post-pandemic business model when some parts are normalizing (e.g. supply chain), some are likely never returning to normal again (e.g. 100% dine in), and consumers are harder to read (e.g. higher wages, but higher debt). Consumers are clearly pulling back on restaurant spending in favor of groceries – unless you’re Wingstop, Chipotle, Texas Roadhouse, Taco Bell, or Chili’s, that is. How do you make sense of it? AlixPartners tries to do just that with its latest white paper, “Restaurant resilience: Turning challenges into opportunities,” available exclusively to attendees of Prosper Forum, which just concluded in Amelia Island, Fla. The consulting firm unpacks what is pressuring consumers, including credit concerns and loan delinquencies. A JPMorgan survey found that over 70% of low-income consumers and 67% of middle-income households are struggling because of those factors, for instance. As such, the restaurant industry’s sales have plateaued while traffic has dissipated. Still, plenty of opportunity remains; 53% of consumers in households earning $50,000 and below have a desire to dine out more frequently, for example. IHOP’s chief marketing officer Kieren Donahue pointed to this opportunity during a recent interview at parent company Dine Brands’ headquarters in Pasadena, Calif. “Our customer is very hypersensitive on price right now: 82% said the price of a menu item influences their decision of whether or not to order it, 77% use deals or value offers to gain access to restaurants they couldn’t normally afford, and 69% would eat out just about every day if they could afford to,” she said. “I like that last stat because it’s telling us that experiences are still the most valuable thing; they just need to be able to afford it. We’re working to address that”…
Did You Know?
Even dollar stores are now saying they need to focus more on value. What does it say about the health of the consumer when even dollar stores are now saying they need to focus on value? We’ll give you a hint: Nothing good. Dollar General’s stock fell nearly 30% early Thursday, after the discount retailer reported far poorer-than-expected results on both its top and bottom lines during its second quarter, blaming much of the softness on a customer “who feels financially constrained,” CEO Todd Vasos said. So, the Goodlettsville, Tennessee-based discount retailer, which has more than 20,000 locations, is taking a page from fast-food chains, saying it, too, is going to double down on value.
Employee Tip
Leading with heart: five keys to successful restaurant management. Here are five insights that have shaped my journey and can help any restaurant operator shine:
- Lead with Heart
Jump in alongside your team and show them you’re fully committed. Whether handling a busy shift or tackling unexpected issues, working side by side with your crew demonstrates that you value their contributions. This hands-on approach builds trust and makes everyone feel like an integral part of the restaurant’s success story.
- Ignite Positivity and Energy
Your enthusiasm is infectious. Start each day with a cheerful attitude and watch your team’s morale soar. Leave stress behind and bring a burst of energy to every shift. Fun pre-shift meetings and sales contests can set a positive tone and motivate everyone to do their best…
