{"id":6261,"date":"2024-03-06T16:53:39","date_gmt":"2024-03-06T21:53:39","guid":{"rendered":"https:\/\/www.njrestaurantsforsale.com\/?p=6261"},"modified":"2024-03-20T17:09:42","modified_gmt":"2024-03-20T21:09:42","slug":"restaurant-industry-alert-149","status":"publish","type":"post","link":"https:\/\/www.njrestaurantsforsale.com\/restaurant-industry-alert-149\/","title":{"rendered":"Restaurant Industry Alert"},"content":{"rendered":"
And restaurant owners out.<\/strong> A $16 bacon cheeseburger may not be enough to save your neighborhood bar and grill. Independent restaurants are on financial life support, owners say, squeezed between escalating payroll costs and diners\u2019 dwindling tolerance for ever-higher checks. Wages for waitstaff, table bussers and line cooks will grow more expensive for many eateries this year, with 22 states in January raising the minimum wage for hourly workers. The industry\u2019s economic strains can be seen on the appetizer plate at Chef Zorba\u2019s Restaurant in Denver. Owner Karen LuKanic recently swapped Greek giant beans for homemade stuffed grape leaves to save money and switched to cheaper shoestring potatoes from thick-cut fries. Denver has increased its minimum wage annually since 2020, most recently in January to $18.29 an hour, while Colorado has expanded paid sick leave and other employee benefit requirements. \u201cWe are just keeping our head above water,\u201d said LuKanic, who estimated about half her restaurant\u2019s sales now go to payroll and other employee-related costs. Chef Zorba\u2019s charges $15.75 for a bacon cheeseburger, $5 more than in 2018. Even at those prices the 78-seat restaurant can\u2019t turn a profit. LuKanic said she would consider closing if her Small Business Administration loan wasn\u2019t guaranteed by her house. American restaurants emerged from the Covid-19 pandemic to find their traditional economics no longer work. After struggling to stay afloat through lockdowns, restaurant operators endured surging food costs and supply chain shortages. Restaurateurs raised menu prices. In January, prices for food eaten away from home were up 30% compared with the same month in 2019, Labor Department data showed. Restaurants\u2019 food bills have stopped their pandemic-era surge. But payroll costs are still climbing.<\/p>\n Click here to read more<\/a><\/p>\n <\/p>\n Gen z\u2019s newer preferences are driving change.<\/strong> Gen Z is continuing the decades-long trend of young adults becoming progressively less likely to use alcohol. Just under a third of adults aged 21-24 claim they never drink, according to a 2023 survey from CivicScience, a consumer insights and trends data company. \u201cWe\u2019ve seen our youngest demographic trending away from alcohol,\u201d says Matthew Stock, The Brass Tap manager of training and beer specialist. \u201cThat\u2019s similar to what we saw with millennials. Thinking back to when I first got into the craft beer industry 15 years ago, it was all about these big, punch-you-in-the-teeth types of beers with lots of alcohol and ABVs of up to 8, 9, or 10 percent.\u201d Millennials played a big role in swinging the pendulum back in the other direction, and most of The Brass Tap\u2019s best-selling items hover around the 5 to 6 percent ABV range today, he adds. Gen Z is further compounding that trend and sparking a wave of innovation in the zero-proof beer category. The Brass Tap is capitalizing on the demand through partnerships with companies like Athletic Brewing that offer non-alcoholic versions of everything from IPAs and stouts to sours and radlers. \u201cWe\u2019ve really embraced non-alcoholic beers thanks to the introduction of better and more flavorful offerings from breweries over the past five or six years,\u201d Stock says. \u201cAll of the new locations that we open carry at least four non-alcoholic packages. That represents about 9 percent of our total package list.\u201d CivicScience asked consumers about the future outlook for alcohol and found roughly a quarter of Gen Z respondents said they expect drinking will become less common in the next few years, the highest percentage among all generations. Two-thirds predicted non-alcoholic beer will continue growing in popularity, versus 46 percent of millennials and just 19 percent of Gen Xers. Despite the heightened interest in abstaining from alcohol altogether, younger consumers that do imbibe are exhibiting a range of dynamic behaviors. They\u2019re drinking differently and with newer preferences compared to their older counterparts.<\/p>\n Click here to read more<\/a><\/p>\n <\/p>\n MONMOUTH COUNTY, NJ RESTAURANT AND BAR FOR SALE<\/strong><\/p>\n <\/a>\u00a0<\/strong>Photo used to depict \u201cRestaurant\/Bar\u201d only. Not actual representation.<\/em><\/p>\n Monmouth County Downtown Restaurant\/Bar; located in the hub of entertainment district; institution at the NJ Shore – 50-year track record; turn-key business w\/valuable liquor license; real estate included in sale; 4,584 square foot building; seats 72 dining, 40 at bar and 50 outside; grossing $35K\/week; financing available to qualified; all reasonable offers considered!<\/p>\n Click here to read more<\/a><\/p>\n Contact Richard Santore 732.531.4200 for additional information.<\/u><\/em><\/p>\n <\/p>\n <\/p>\n 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.<\/em><\/span><\/p>\n A voice for our industry.<\/strong> <\/span>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<\/a> and leave a review. Thank you.<\/p>\n <\/p>\n <\/p>\n Trend started in Utah, went viral, and is now going national. <\/strong>One of the hottest beverage trends at the moment originated in Utah and spread with the help of social media. \u201cDirty soda\u201d is a sparkling beverage with something creamy added to it \u2014 often milk or half-and-half, but also non-dairy options such as coconut cream. In its current form, the menu platform gained traction with the help of Swig, a 63-unit beverage concept based in Lehi, Utah, and now larger chains are getting in on the action \u2014 particularly as interest in nonalcoholic beverages takes off. Swig founder Nicole Tanner said she originally conceived of Swig as a beverage and shaved-ice concept, and so she had a variety of syrups, creams, fruits, and sauces on hand to be added to the ice. When customers from an orthodontist\u2019s office near Swig\u2019s first location in St. George, Utah, came in and ordered a Dr. Pepper with coconut cream, she was able to comply, and it was those customers who coined the term. \u201cWe had people within the first month who called a coconut Dr. Pepper a \u2018dirty Dr. Pepper,\u2019\u201d she said. She trademarked the term in 2014 to mean any flavor added to soda, tea, or water. Shortly thereafter, the shaved ice machines proved to be too much of a hassle, and she got rid of them, but the ingredient additions had long been incorporated into the other drinks. Now she says 95%-97% of all Swig orders are dirty because they have something added to them. Tanner is a big fan of dirty sodas herself, and in fact her go-to drink is on Swig\u2019s menu under the name \u201cThe Founder.\u201d It\u2019s Diet Coke with sugar-free coconut syrup, lime juice, and coconut cream. \u201cFor the longest time I got a Diet Coke with coconut flavoring and fresh lime, and several years ago I added coconut cream, and I was like, \u2018this is a game changer,\u2019\u201d she said. \u201cIt makes it smooth. It\u2019s just delicious.\u201d Swig now operates in Arizona, Oklahoma, and Texas, with additional franchised locations near Bentonville, Ark., and Boise, Idaho. Tanner said that although dirty sodas might have originated in Utah, they\u2019re gaining in popularity everywhere.<\/p>\n Click here to read more<\/a><\/p>\n <\/p>\n Labor cost is not your biggest expense. <\/strong>Do you often find yourself feeling financially drained as your team\u2019s overtime hours accumulate on the proverbial time clock? Are you eager to take a bite out of these costs and boost your restaurant\u2019s profitability? If you answered yes to these questions, you\u2019re in the right place. Here are seven effective and essential tactics to control restaurant labor costs and start making the money you deserve. Before diving into the tactics, let\u2019s challenge a common belief. While many consider labor costs the biggest expense in a restaurant, it might be surprising to learn that, in reality, an empty chair takes the top spot. The logic is simple \u2014 when your restaurant is empty, you\u2019re losing money on rent, utilities, inventory and more. However, once you have customers, labor cost becomes a significant factor in your overall expenses. Seven essential tactics to control restaurant labor cost.<\/p>\n Click here to read more<\/a><\/p>\n <\/p>\n Not the experience<\/strong>. More and more restaurant operators seem to agree: Smaller is better when it comes to new unit prototypes. As the trend toward off-premises dining settles into a \u201cnew normal\u201d that is still well above pre-pandemic levels, the need for seating \u2014 and parking \u2014 is decreasing accordingly. This presents both opportunities and challenges for operators. Although smaller formats cost less to build and operate, operators still need to generate enough sales to ensure an adequate return on their reduced investment. That calculation must account for the lower margins on third-party delivery orders, as well as the loss of customers seeking in-store dining experience, according to operators. At drive-thru hot dog specialist Wienerschnitzel, for example, the company added indoor seating to its prototype Heritage format as an option after learning that its customers in the Texas market like to have someplace to beat the heat. \u201cWe found out by trial and error that sometimes you need a little bit of a dining room,\u201d said Rusty Bills, chief operating officer at Wienerschnitzel, which tallies about 78% of its business via takeout, including drive thru. The company has long focused on operating efficiencies in its restaurants, which are known for their compact, A-frame design. Its Heritage prototype preserves elements of that design in a more cost-effective, 820-square-foot format, and its newer Heritage Plus design has added a dining room with space for about 16\u201320 seats, bumping the square footage up to about 1,200 square feet, which is still compact compared with most quick-service concepts.<\/p>\n Click here to read more<\/a><\/p>\n <\/p>\n In Brooklyn. <\/strong>Mable\u2019s Smokehouse is a Southern comfort restaurant and catering service that wanted to bring down-to-earth, family flavors to Brooklyn. Meghan Love and her husband, Jeff Love, have successfully done just that for 13 years. The restaurant features Jeff Love\u2019s grandmother Mable\u2019s recipes. The Loves\u2014who have worked in the restaurant and hospitality industry for most of their lives\u2014draw on their experiences to make their family restaurant and catering business a success. \u201cWhen we opened our restaurant, we were young and green, and we didn\u2019t have a lot of money. Although I had worked in the restaurant industry for 20 years,\u201d says Meghan Love. \u201cI\u2019ve been waiting tables since I was fifteen, so I knew how to run the front of house, but it\u2019s a whole different story when you do it yourself. My husband grew up in restaurants. His mom had a catering business and also had a couple of restaurants, so he knew how to set up the back of the house.\u201d Remaining open and financially healthy as a small business and restaurant can be challenging. Stability is especially hard as consumer trends seem to be changing faster than ever and inflation is on the rise. How small businesses handle the turbulent market may differ. However, Mable\u2019s Smokehouse has found success as it relies on the Loves\u2019 depth of experience, rigorous training protocols, and diversifying both the payments it can receive and the avenues through which it offers food. Meghan Love recalled how she came to New York as an aspiring actress and her husband was an artist before they opened their first restaurant. \u201cWe decided to open this down-to-earth, restaurant in the middle of Brooklyn,\u201d Love recalls. \u201cThere were a few barbecue restaurants but there wasn\u2019t anything that felt like home. So, we said there\u2019s a hole in the market here, let\u2019s just do what we truly know and understand\u2014here we are, 13 years later. It\u2019s been a wild ride.\u201d<\/p>\n Click here to read more<\/a><\/p>\n <\/p>\n The recipe for mitigating restaurant risk. <\/strong>Things began to change for the restaurant industry in 2023 as the script flipped from cutbacks to a growth mindset. Data from the National Restaurant Association\u2019s 2023 State of the Restaurant Industry report revealed that nearly three in four operators were focused on sustaining growth. While the change in mindset is good news for the industry, expansion in this sector is hampered by staff turnover with a majority (62 percent) of restaurant owners reporting being understaffed. As the focus for restaurants continues to center on growing and staffing up, safety training can sometimes get lost in the mix or ratcheted down to cover only topics related to compliance with regulations.<\/p>\nGen Z and the Push for Beer Innovation<\/h3>\n
Bielat Santore & Company – Restaurant Industry Alert<\/strong><\/span><\/h3>\n
ASKING PRICE REDUCED BY $200K FOR QUICK SALE!<\/strong><\/span><\/h3>\n
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\nDirty Sodas Appeal to Young Experimental Restaurant Consumers<\/h3>\n
Essential Tactics to Control Restaurant Labor Costs<\/h3>\n
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Restaurant Operators Shrink the Store<\/h3>\n
How a Family-Owned Restaurant<\/h3>\n
Did You Know?<\/h3>\n