5 Reasons to Re-concept Your Restaurant
Once upon a time, you created and launched your new restaurant. Maybe it was 2005… or just 2015… or maybe you inherited your parent’s restaurant that they created in 1985. Maybe it was sexy or maybe you were the first ones serving fresh pasta…or maybe you were the first to offer health insurance to servers. Regardless, you started with a bang, but for the past few years, sales have been eroding. First slowly, then faster, until you reach some level of panic that spurs you to action. What do you do? Add catering? Change the menu? Add a patio? Give it a fresh coat of paint? Change uniforms? Increase wages? Renovate the fa?ade? Each of these – or a combination – amounts to refreshing your existing restaurant in the hopes of reversing the negative trend. Unfortunately, no amount of money thrown at a solution seems to pull you out of your tailspin, and the ground keeps getting closer.
Very few restaurants achieve “institution” status in a community – that legacy diner or favorite burger or pizza joint that has been there “forever”. A chef friend of mine is from Mamaroneck, NY and he once took me to his childhood-favorite pizza restaurant, Sal’s Pizzeria .? Inside, Sal’s is nothing special if not tired. The staff ages seem to range from mid-teens to late 60’s (or maybe that guy was 75?). The pizza is pretty good but nothing especially unique. Just good old-fashioned NY-style pizza, made with love in a location that has served the community since 1964. My friend has fond memories of growing up nearby and heading to Sal’s for a slice after school or before a Met’s game or to nurse a hangover. Perhaps it’s the memories that keep him going back. Perhaps, for his – and his neighbors’ - taste, it really is the best pizza in the world. Regardless, Sal’s has managed to defy the odds and remain continuously successful for 60 years.
In Washington, DC, on the corner of P St. and Wisconsin Ave. in Georgetown, is a small, patinaed restaurant called Martin’s Tavern . It serves unfussy, hearty, classic favorites, so by no means is it a food innovation mecca. Billy Martin owns and runs it. His father’s name was Billy, and he ran it after taking over from his father, Billy, who created and launched it in 1933 (yes, that last Billy did play for the NY Yankees but isn’t the former Yankee’s manager). The current Billy is approaching retirement and is probably considering stepping away from the business he grew up in. Succession could be a source of worry, but he (and the rest of us) are in luck because his son is also named Billy who will probably carry the torch for the next 30 years. The booths in Martin’s Tavern have stories to tell – like booth #3 where John F reportedly proposed to Jackie, or others where historic congressional power deals went down, or where presidents dined with their families.
The secret ingredient in both Sal’s and Martin’s is not so much the food or the service but the way it makes people feel, whether reminiscing over their history or someone else’s. Longevity begets longevity in a sort of self-refreshing eddy. The trick is to create memories…and it’s hard to know if your restaurant will achieve that magic. You can spend all you want on a new restaurant, but you can’t buy history or relevance to a community. If your restaurant is getting old sales are declining, and it hasn’t achieved neighborhood “institution” status, chances are it’s on its way out. Tweaking it to revive its former glory may be futile and may only buy a little more time. As you squeeze costs and beg for sales, time eventually runs out and there isn’t much left to sell. You often don’t know it’s the end until it is, and you’re forced to close.? What happens? Some newcomer, flush with cash and a fresh concept, swoops in, guts the place, and re-opens it as a completely new restaurant that thrives! Well…why can’t you do that?
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Here are five reasons why changing your whole restaurant concept may be a smarter use of resources than burning money trying to fix what you have.
Creating a new concept isn’t easy and costs money. You may be too close to your operations to see opportunities clearly or you may have become blind to the issues plaguing your restaurant. Or you are afraid that you’ll repeat the same mistakes with a new concept. Get a fresh set of eyes to help you model your options and set the new course before you start winging it. The stakes are high when you re-concept so getting it right is critical. But, when you do, you create a new money-making machine and give yourself more options. That’s a smarter plan than depleting all your reserves trying to save what you have, then finally trying to sell those old ovens, tables, and chairs for pennies on the dollar.
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10 个月"You can spend all you want on a new restaurant, but you can’t buy history or relevance to a community.". SO true. Great article Ray and thank you for sharing your thoughts!
Healthcare Operations Consultant | Ophthalmic Executive
10 个月“You may be too close to your operations to see opportunities clearly or you may have become blind to the issues plaguing your restaurant. “ this happens in so many industries. Thank you for sharing your expertise!
Manager of Effective Teams | Projects | Products | Applications | Writer | Seeking my next great endeavor | Enthusiast of: Motorsports / Aviation / Woodworking / History / Learning / Improving
10 个月Ray Camillo Restaurant business cycles fascinate me and I have always wondered how the owner's psychological characteristics factor into business declines. Especially for a privately run single location or local chain, do you see the owner's emotional attachments to their original concept hampering their ability to shift to a new concept? Is it viewed as a personal failure if they change their restaurant format/cuisine, and does pride get in the way?
Innovative Chef | Elevating Culinary Experiences & Team Performance | Creating Memorable Gastronomic Journeys
10 个月Yes totally, hit the nail on the head! Keep it coming Ray Camillo…