Is it time to drop the extra federal unemployment money?

#76
#76
DinkinFlicka said:
A well run restaurant in the right location yields very high profit margins. My last boss used to tend bar at the venue until he bought it 4 years in at a discount because it was failing. He made the right adjustments, turned it into a Knoxville landmark and started turning profits of about 500k a year. I was salaried but he paid his bartenders and servers anywhere from 14-20$ an hour and his kitchen 20-25$ an hour.

In fact, restaurant owners in any country but ours pay their staff a living wage and manage to keep the doors open. Fact is, American restaurateurs are highly exploitative of their employees.
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Any guess on the percentage of well run / located well compared to total?
 
#77
#77
McDad said:
Any guess on the percentage of well run / located well compared to total?
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Corporate chains aren't my forte. @volfanhill can give you a better guess than I can.

I've worked for 6 mom and pop restaurants on an administrative level at this point. The best I've seen in a year is about 17%. The worst (but still profitable) was about 2%. There are other factors to consider like the commercial space market in any given city and, most importantly, whether it's a restaurant or a bar. I've seen bars eclipse 20% before. Typically, the more spirit/cocktail oriented it is, the more money it prints. Wine and beer are nowhere near it.
 
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#81
#81
Idiot Illinois governor would never consider dropping the free unemployment money
 
#82
#82
DinkinFlicka said:
Corporate chains aren't my forte. @volfanhill can give you a better guess than I can.

I've worked for 6 mom and pop restaurants on an administrative level at this point. The best I've seen in a year is about 17%. The worst (but still profitable) was about 2%. There are other factors to consider like the commercial space market in any given city and, most importantly, whether it's a restaurant or a bar. I've seen bars eclipse 20% before. Typically, the more spirit/cocktail oriented it is, the more money it prints. Wine and beer are nowhere near it.
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Well the markup on liquor is huge.

I would have expected the average restauranteur to be lucky to get 8-10% margin.
 
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#85
#85
DinkinFlicka said:
A well run restaurant in the right location yields very high profit margins. My last boss used to tend bar at the venue until he bought it 4 years in at a discount because it was failing. He made the right adjustments, turned it into a Knoxville landmark and started turning profits of about 500k a year. I was salaried but he paid his bartenders and servers anywhere from 14-20$ an hour and his kitchen 20-25$ an hour.

In fact, restaurant owners in any country but ours pay their staff a living wage and manage to keep the doors open. Fact is, American restaurateurs are highly exploitative of their employees.
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The average entree price had to be $40 for that. Appleby's and Outback or most other chains wouldn't even survive.
 
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#86
#86
Rasputin_Vol said:
Well the markup on liquor is huge.

I would have expected the average restauranteur to be lucky to get 8-10% margin.
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I own both these stocks so this is right off the top of my head....

Cracker Barrel, which is probably as strong of a non-alcoholic chain there is operates at about 9% pretax operating margin (pre COVID). Darden, which is a pretty efficient chain that serves alcohol, is between 8-9% pretax operating margin.

Bloomin (Outback) is between 3-4% but they arent run as well as the others..
 
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#87
#87
Rasputin_Vol said:
The average entree price had to be $40 for that. Appleby's and Outback or most other chains wouldn't even survive.
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Not necessarily. You're not factoring in capacity, the beverage program, the average seat time, or operating hours.

The place in question had a happy hour, a dinner service, and a late night cocktail operation. Our most expensive item was a 36$ steak. The next highest dish was, iirc, a 24$ roasted half chicken.
 
#88
#88
BigOrangeMojo said:
I own both these stocks so this is right off the top of my head....

Cracker Barrel, which is probably as strong of a non-alcoholic chain there is operates at about 9% pretax operating margin (pre COVID). Darden, which is a pretty efficient chain that serves alcohol, is between 8-9% pretax operating margin.
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I worked in a bunch of restaurants 20+ years ago and that was about the rate I remembered managers talking about back then.
 
#89
#89
Once again, glad I can help shift the discussion from a circle jerk to something marginally interesting to talk about.
 
#90
#90
DinkinFlicka said:
Not necessarily. You're not factoring in capacity, the beverage program, the average seat time, or operating hours.

The place in question had a happy hour, a dinner service, and a late night cocktail operation. Our most expensive item was a 36$ steak. The next highest dish was, iirc, a 24$ roasted half chicken.
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OK, so $30 per entree. That still is much higher price point than an average mom and pop or even average chain restaurant.

To get high volume at that price point, that restaurant would have to be in Gatlinburg or South Florida or some vacation spot that gets a lot of family dinner traffic all year round,
 
#91
#91
DinkinFlicka said:
Once again, glad I can help shift the discussion from a circle jerk to something marginally interesting to talk about.
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You essentially brought the conversation to a discussion about one off restaurants. The average "meat and three" restaurant serving sweet tea on Main Street for the construction workers and cops at lunch can't afford to pay $20 to their kitchen staff.
 
#92
#92
Rasputin_Vol said:
OK, so $30 per entree. That still is much higher price point than an average mom and pop or even average chain restaurant.

To get high volume at that price point, that restaurant would have to be in Gatlinburg or South Florida or some vacation spot that gets a lot of family dinner traffic all year round,
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You realize you're attempting to tell an electrician how to lay conduit, right?

You rounded out the two most expensive items on the menu. Our average entree was about 20, which is only slightly higher than a typical eatery these days. We did the volume. It's not as though the place was extraordinary. It's more common than you think (the pricing that is... the proper staff compensation was a rarity).

Except for the beverage program. I heard the guy who ran it was a ****ing wizard with booze.
 
#93
#93
Rasputin_Vol said:
You essentially brought the conversation to a discussion about one off restaurants. The average "meat and three" restaurant serving sweet tea on Main Street for the construction workers and cops at lunch can't afford to pay $20 to their kitchen staff.
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Nor do I expect them to. That's an informal environment with a quality of product that doesn't require the skillset earning that wage.

Take the Klonaris group in Knoxville. They own Cafe 4/Kefi/Vida/Square Room. Their prices vary widely at all their locations but they pay their front of house far more than the 2.13/hour nonsense. My friend's nephew just started an entry level line cook job with them at 16/hour.

It's not hard. You seem to be standing up for the greed of proprietors. I know this industry. Your take is 20+ years old, dude.
 
#94
#94
McDad said:
Any guess on the percentage of well run / located well compared to total?
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15-20% is our goal. We have a couple of stores that hit 22-23%, and some that are down around 10-12%. Keep in mind that we’re strictly QSR, so I can’t speak for full service.
 
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#97
#97
Local Wendy's had to close dining room last week

Burger King had to close completely for 2 days

Dollar General on way to work doesn't open until 11am

Guy at Lowes cutting my key said they desperately needed 15 more people

Waffle King looking for a fry cook, $18/hr
 
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#99
#99
MurphyVol said:
Local Wendy's had to close dining room last week

Burger King had to close completely for 2 days

Dollar General on way to work doesn't open until 11am

Guy at Lowes cutting my key said they desperately needed 15 more people

Waffle King looking for a fry cook, $18/hr
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Zero of the fast food restaurants in my area have dining rooms open -- only drive thru -- most dine in restaurants close by 8 everyday -- Only Texas Roadhouse has upped pay - since Illinois has a fat stupid Dem governor the unemployment will not change until it runs out and the slob extended the eviction mort. another month
 
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#100
#100
McDad said:
Any guess on the percentage of well run / located well compared to total?
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I know some Pal's operators clear 300k+. And that's after paying corporate a huge chunk of change. And I'd say probably 70% of their employees make less than $15/ hr.

It should be a crime.

I know Pals is different than most places due to high volume and relatively low overhead, but its nuts.
 
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