Got it. I was just wondering since what's been described sounds like there's enough room for disruption and was surprised why new technology/competitor like square haven't taken over faster (though most food truck, mom and pops and etc all seem to start using them).
It is good for food trucks and basic quick service concepts. Limited features beyond just keying in orders.
It has been many many many years since I talked to people in the restaurant business. I could definitely be wrong, but I seem to remember the suggested percentages for profitability in moderate - middle priced restaurants were something like this: 1/3 -- Food Cost 1/3 -- Labor 1/3 -- For everything else (miscellaneous expenses, advertising, rent/lease, etc and profit) Minimum 60% capacity What are the current suggested percentages for profitability?
Generally its: 25% Food 25% Labor 50% Fixed and other Variable expenses With about a 6% to 12% net profit. Steak houses usually run on like 30% to 40% cost though. They don't make as much money nearly on the steaks, they get you with the 12 dollar Truffled Potatoes. Talking about the POS systems we use Toast and I enjoy it, its very simple and they have worked with us on issues. We are one of there biggest accounts so they might give us a little more love then just a food truck. I don't know really much about the contracts and the fees as that's not really my area.
Thats a lot of variables, its depends on rent/bank loan, amount of staff, food price point, do you have a outside area because most don't feel comfortable eating indoors, etc etc. When the order was at 25% we didn't open. At 50% we opened. We are doing about 10% less durning the weekdays and 45 to 50% less on the weekends. We can open more space/tables but the staffing is difficult. Everyone is tested before every shift (mask are mandatory for FOH and BOH at all times) and if they have a fever over 99.9 they are sent home. We contact trace the people they worked with closely from the previous week. The person(s) showing any symptoms are tested for Covid the next day. The people that worked closely with them are to stay at home until the person with symptoms test comes back neg. So we have had people with a temp over 99.9 so we have to send them home and people they worked with around them home. Then the test comes back neg. Then everyone can work again. But it will be along time til we can fully open other areas of the space even at the 50% capacity. We just have to be extra cautious and don't want to take a chance with any staff or customers health. I honestly don't think anything will be "back to normal" til March or so of next year, basically until there is a vaccine.
I know many in the industry. They tell me they get a 25% margin to remain profitable. I know that sounds large, but it is what is needed to stay sustainable.
Last time when I was there was in the 90s at the Richmond location, and it was my last time because I saw a rat run across the floor while waiting for our order. We obviously got up and left and never went back.
I have been using aloha for almost 20 years now. I am putting the work in right now to rewire the restaurant to switch to Square. The problem I had with Aloha is that first Texas POS is a terrible company. Their backend had a lot of archaic programming, they had pre loaded our backend with a bunch of junk like whipped cream and what not and I asked them to remove it they said they couldn't. So over the years I have been slowly deleting thousands of items. There are so many quirks it feels like 10 ppl programmed it separately and cobbled the thing together. My system had a 50% chance of crashing when the power went out and I would have to call them and get them to fix it. Also with the hardware you would have to either buy their overpriced hardware or buy one and get them to program it. I would much rather just pop in a tablet and be done with it.
That is like kicking someone while they are down. It’s gone and now the memory is slightly tainted. I haven’t been there in years either. I lived around the corner from the Richmond location in the early 90’s and watched a lot of sporting events there and probably added a few inches to my waistline as well. Not a surprise about the rat but I never saw one there.
Not online yet but it will be, there's a solid article in Texas Monthly about the new restaurant situation.
Dunkin' Donuts on Memorial by the park. Subway on Memorial by the park. Coco Crepe on Washington near the park.
Blackbird Izakaya (updated July 21) Executive chef Billy Kin posted a YouTube video with the headline “Goodbye Blackbird,” showing various photos of Blackbird Izakaya, the Japanese pub-style restaurant on 11th Street in the Heights. Eater first confirmed Blackbird Izakaya’s shuttering. The restaurant opened in summer 2018 and was among Houstonia’s favorite restaurants, earning a good review in November of that year. Already announced Dak & Bop, Museum District: Closed as of May 25. Dolce Vita Pizzeria & Enoteca: Closed as of May 24. Indika: Closed. Barry’s Pizza: Closed as of May 28. The Tasting Room, Uptown Park: Closed as of May 30. Poitin: Closed. Bernie’s Burger Bus (all locations): Closed as of May 31. Penny Quarter: Closed indefinitely. Patranella’s: Closed as of May 30. Komchop, West Bellfort: Closed. Original at 14144 Westheimer Rd still open. Lucky’s Pub, East Downtown: Closed. Katy Freeway location still open. Tropicales: Closed. Yia Yia Mary’s: Closed, along with four other Pappas restaurants. Pappas Seafood House, I-45 North at Aldine Bend; Shepherd; and I-45 S. at Woodridge: Closed. Other locations open. Pappas Seafood Kitchen, Upper Kirby: Closed. Treebeard’s: Original at Market Square closed. Memorial location to open soon. Chicken and Rice Guys: Closed. Chicken Station: Closed. Ragin Cajun’, Westchase: Closed. Upper Kirby location open. Crisp, Underground Hall: Closed. Boomtown Coffee, Downtown: Closed.
I have sympathy for the trendy restaurateur or bar owner who got hit by this, I do. I'm familiar with that space, have friends and fam in that space - it sucks for them because of Covid. I have an even deeper sympathy to the the lower mid or middle class American/immigrant who isn't hip and lives the tough life of being a franchisee. Because unless you own a bunch of them, that is a lot of work for decent money, not great money. These folks are not cool, never talked about or written about in blogs/news/social media. They're typical ass-busters who just want to do a little better. A few get to open multiple stores, but many are just operating one location, working 80 hours a week, and doing slightly better than if they did something else. They're living an unglamorous life of a true small business owner, while hoping their kids to take the next step. I feel the most for those guys who can't make rent and must close. I wish all of you the best of luck.
Man that hit me in the feels. So accurate, so true, it's a special kind of love seeing an immigrant small business owner live their dreams through their kids that go on to bigger and better things. The sacrifices made to help their children live the American dream.
Any time I do a merchant rate review for a prospect it’s just depressing. I’ve seen as low as 15% of their February sales for some full service concepts. Delivery concepts are doing well though. I wonder how many franchise inquiries fajita Pete’s has been getting.
Alice's Tall Texan is closing at the end on August. This makes me sad, Houston is running out of proper dive bars and beer joints, places with character.
Remember back in the day when that, Jimmys and the Shiloh Club were the three places to get a beer in the Heights
