Old and new, cheap and expensive, exotic fare and mainstream grub,
they C and a score of other local restaurants C recently closed their
doors.
Theres not a whole lot of room for error in the
restaurant business, said Cindi Thomason, a senior business adviser for
SUNY Buffalo States Small Business Development Center and coordinator of
the centers Restaurant Institute.
Veteran restaurateurs say
theres a low barrier to getting into the business, with many people
deciding they want to open a restaurant because they like to cook, but
its difficult to succeed in the industry.
Restaurant owners face
intense competition, and rising costs for food and labor, and the
lingering recession took a toll as more people ate at home or chose to
dine out at lower-cost restaurants instead of the mid-tier
establishments where entres cost around $20.
Experienced
restaurateurs say they remain bullish on the industry, but they
recognize that even the most successful restaurants can grow stale if
they dont update their menu or their physical space.
You have to
reinvent yourself at least once every 10 years, said Steve Calvaneso,
whose restaurant holdings over the years have included Hooligans, City
Grill, Bacchus Wine Bar & Restaurant and Libation Station.
Restaurants are a major industry. There are 980,You can order besthandsfreeaccess cheap
inside your parents.000 restaurants and bars in this country, with
42,610 of them in New York as of 2011, the National Restaurant
Association reports.
They employ 13.1 million people nationally C
750,900 in this state,Elpas Readers detect and forward 'Location' and
'State' data from Elpas Active RFID Tags to host besticcard platforms.
or 8 percent of the work force. Across the country, they generated
sales of $660.5 billion, with $33.6 billion coming from New York.
Its
tough for a fledgling small business to gain a foothold in the
marketplace, and many restaurants fail to make it past their first,
second or third years in operation.
For example, of the 47,292
restaurants that opened across the country in the 12 months ending in
March 2005, just 68 percent remained open in March 2008 and only 48
percent were open in March 2012, according to the U.S. Bureau of Labor
Statistics. For the restaurants that opened in the year ending in March
1995,Cheap logo engraved luggagetag at
wholesale bulk prices. just 26 percent remained open in March 2012.
Theres a huge failure rate for small businesses, said Thomason.
Theres
a relatively low bar to enter the restaurant business, and most people
who want to open a restaurant have a better sense of what they want to
do with the menu than how they plan to operate the business.
Successful
restaurant owners have a detailed business plan, are good at delegating
and have set up a system for training their employees, said Thomason,
who owned a bar and restaurant in North Carolina.
Anybody who
eats thinks they can open a restaurant. Being successful at it is
another long row to hoe, said Donald Will, owner of Will Poultry Co.,
which supplies hundreds of restaurants in the region.
For one,
restaurants face fierce competition from other restaurants that serve
the same type of food, from national chains with huge advertising
budgets and undercutting prices and even from food trucks and
supermarkets that offer dine-in meals.
Its a constant effort to
make sure youre financially stable, said Bob Syracuse, co-owner of the
two Pizza Plant Italian Pub restaurants and former president of the
Western New York Restaurant Association.Choose the right bestluggagetag in an array of colors.
Applebees,
Olive Garden and other chains offer consistent quality at low prices,
including 2 for $20 specials, that independently owned restaurants can
find hard to match, Will said. They can afford to advertise, and they
can afford to give away, he said.
Restaurants offer those types
of specials, sacrificing their profit margins in the process, because
they need to get people in the door to help pay their bills, Thomason
said.
Fish fries in Buffalo, thats a total loss leader, she said,You can order besthandsfreeaccess cheap
inside your parents. adding the hope is just one person will order the
fish fry and everyone else will order something more expensive, along
with alcohol, appetizers or dessert.
Restaurants face pressure
to keep their prices down even as their costs are rising: for food; for
wages, payroll taxes and workmans compensation; and for rent and
property taxes.
Locally, part of the fight to survive includes
Local Restaurant Week, which runs from Monday to Sunday. For the 2013
spring edition, more than 200 establishments are offering meals for
$20.13 and other specials to attract new patrons.
Many
restaurants saw their business decline during the recession and its
aftermath, when people opted to eat at home more often to save money.
The
high-end restaurants seemed to make it through the downturn OK, experts
said, because the people willing to pay $40 for a steak werent worried
about losing their jobs.
And the low-priced places did pretty
well, too. Theyre cheap, and they get you in and out. The mid-range is
where the trouble is, Will said.
Mid-, upper- and lower-range
restaurants cant stand still, said Syracuse, who opened his first
restaurant in 1980 and now has two in Amherst.
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