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Old 04-28-2020, 05:56 AM
 
3,672 posts, read 2,068,579 times
Reputation: 10480

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It seems that with social distancing, there are only certain restaurants that will be able to have a decent-sized dine-in business now. (I'm thinking large chains like Carrabba's, some smaller chains like Lazy Dog and perhaps some of the larger ethnic eateries on Buford Highway.)


Even if restaurants put up outdoor tents they need to have the space to do it.



Given that scenario, and all the precautions they have to take, I am wondering at what point is it more economically feasible to just stick to a takeout and delivery model? Less time and money spent on sanitation, utensil rollups, staff, etc. On the flip side I'm sure alcohol sales bring in a lot of business...but is it enough? Are people going to want to linger and have that second drink or just a glass with dinner?



Good restaurants that seem perpetually busy close all the time in Atlanta, citing not enough business. I'd be interested in hearing the economics of full-service restaurant business. What level of table turns will they need to stay in business if their dining footprint is drastically reduced?
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Old 04-28-2020, 08:08 AM
 
1,925 posts, read 1,447,747 times
Reputation: 2947
I worked as a server in chain restaurants for years. I'm NOT an expert like a restaurant owner would be, but here's what I know:

I've heard from several sources in the business that restaurants typically profit anywhere from nothing to 10% for a really successful one. As a really basic rule of thumb, 30% goes to food costs, 30% goes to labor, 30% to lease, with a potential of 10% to profit.

Cheesecake Factory is the highest grossing chain per location averaging $11M/store. PF Changs is second at $6M/store. A successful Olive Garden style restaurant might expect $3-4M/store. From there you have fast food, fast casual, and mom and pops that can all bring in anywhere from a couple $100K, to a couple Million.

All of this is why the founder of Uber left Uber to start what he's calling "ghost kitchens" https://www.businessinsider.com/clou...ctures-2019-11. It's essentially a community kitchen for rent that one can do deliveries out of, he's obviously betting it is the wave of the future. He started this all pre-COVID mind you.

It'll be interesting. To be honest, with small kids at home, we like going out to eat at restaurants often simply because we need to get out of the house. As a family, we rarely eat out out of necessity, it's typically because we like the adventure of exploring and trying new places.

All that said, it's been known for a long time that the US is simply "over-retailed" when compared to other developed countries. Something has to give. https://www.forbes.com/sites/bisnow/.../#340d3243180f
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Old 04-28-2020, 02:09 PM
 
1,163 posts, read 262,639 times
Reputation: 2118
Right - saying something like "eh, spread the tables out" is a comment from someone that does not know restaurants. Just because 50% less people eat there doesn't mean the mortgage or rent or taxes or insurance is less, and lots of other things.



In other words - there is ZERO difference between spreading tables out - and just having a regular old "slow night" at the restaurant. Put enough slow nights together - and you're closed.
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Old 04-28-2020, 08:04 PM
 
3,672 posts, read 2,068,579 times
Reputation: 10480
Mods, please delete this thread. It was intended for the Atlanta forum given that Georgia is “open” and other states are not. It doesn’t make sense here. Thanks.
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Old 04-30-2020, 12:26 AM
 
8,319 posts, read 7,502,485 times
Reputation: 3963
Quote:
Originally Posted by Citykid3785 View Post
I worked as a server in chain restaurants for years. I'm NOT an expert like a restaurant owner would be, but here's what I know:

I've heard from several sources in the business that restaurants typically profit anywhere from nothing to 10% for a really successful one. As a really basic rule of thumb, 30% goes to food costs, 30% goes to labor, 30% to lease, with a potential of 10% to profit.

Cheesecake Factory is the highest grossing chain per location averaging $11M/store. PF Changs is second at $6M/store. A successful Olive Garden style restaurant might expect $3-4M/store. From there you have fast food, fast casual, and mom and pops that can all bring in anywhere from a couple $100K, to a couple Million.

All of this is why the founder of Uber left Uber to start what he's calling "ghost kitchens" https://www.businessinsider.com/clou...ctures-2019-11. It's essentially a community kitchen for rent that one can do deliveries out of, he's obviously betting it is the wave of the future. He started this all pre-COVID mind you.

It'll be interesting. To be honest, with small kids at home, we like going out to eat at restaurants often simply because we need to get out of the house. As a family, we rarely eat out out of necessity, it's typically because we like the adventure of exploring and trying new places.

All that said, it's been known for a long time that the US is simply "over-retailed" when compared to other developed countries. Something has to give. https://www.forbes.com/sites/bisnow/.../#340d3243180f
LOL this ghost kitchen is like WeWork
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Old 05-05-2020, 02:49 PM
 
Location: Pennsylvania
16,301 posts, read 5,618,035 times
Reputation: 13091
Quote:
Originally Posted by wasel View Post
It seems that with social distancing, there are only certain restaurants that will be able to have a decent-sized dine-in business now. (I'm thinking large chains like Carrabba's, some smaller chains like Lazy Dog and perhaps some of the larger ethnic eateries on Buford Highway.)


Even if restaurants put up outdoor tents they need to have the space to do it.



Given that scenario, and all the precautions they have to take, I am wondering at what point is it more economically feasible to just stick to a takeout and delivery model? Less time and money spent on sanitation, utensil rollups, staff, etc. On the flip side I'm sure alcohol sales bring in a lot of business...but is it enough? Are people going to want to linger and have that second drink or just a glass with dinner?



Good restaurants that seem perpetually busy close all the time in Atlanta, citing not enough business. I'd be interested in hearing the economics of full-service restaurant business. What level of table turns will they need to stay in business if their dining footprint is drastically reduced?
I like to linger and have more than two drinks. YES - people enjoy the restaurant experience and take out isn't going to cut it.
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