Water, Water, Everywhere!

I visited a friend who is in Sanford Hospital this past Saturday. On the day of my visit, a significant amount of water was present in the Main Lobby. The result of a pipe breaking as a result of some frigid artic air. This incident, while creating temporary havoc, actually made me smile. As a former operator of three restaurants in Sioux Falls, I too have experienced such chaos. A similar weather event a decade ago, caused a pipe to burst mid-day at "Callaway's". Oh my, that was something to witness. We heard the ominous "clunk" and then stood in disbelief as water gushed everywhere in our dining room. Just hours before opening for business during one of the busiest times of the year. In fact, a majority of our revenue came from December/January dining and private parties. So, any day we faced a disruption, was a really big (and bad) day for our company. Our friends at "Intek" were on it in a hurry and we were able to modify operations and forge ahead while repairs were made.

The restaurant business is extremely cash flow dependent. Narrow margins, high costs, increased utilities, additional expenses (like snow removal) and a few other intangibles can really cause heartache during prime money-making times. In fact, negative cash flow, which occurs frequently, is a hole many operators cannot make up. Recapitalizing, doing without or altering operations are all outcomes of bad weather or other events disruptive to normal operating hours. I spent many a winter night, wondering and worrying about cancellations, no shows and depressed guest counts. In our organization, we had a daily "par" for revenue. It was the best way for us to engage our leadership team in knowing how we were doing as a business. There were some nights we made significant hay! There were also other nights we gave it all away. Such was the ebb & flow, the ying and the yang of running three restaurants in a community which really does like to eat out.

In 2008, ahead of what would become a recessionary year, our partnership group decided to not draw salaries of any kind. In 2009, I took on the role of janitor for "Foleys" and "Tre" during the morning hours for pay. Doing so allowed me to lighten the burden I had placed on my wife, and our household, the prior year. These were humbling days. Lots of lessons learned. Sacrifices made. To our credit, when we emerged from the slowdown, (our operations experienced upwards of a 40% revenue decline, nothing like what current operators faced as a result of COVID) we embedded cleaning into our processes. Persons in our company cleaned our locations. This was a big move for us as it instilled personal pride in each store. It was also beneficial to me as I knew exactly who to go to if something needed to be remedied.

Now, as I write this article, I've been retired from the hospitality industry for nearly six years. I wouldn't change anything. Interactions with guests, many whom remain my friends, are precious memories. Watching members of our teams grow, prosper, have families, run businesses, etc. is absolutely heartwarming. As we end 2022, we'll see restaurants close in Sioux Falls. It's been that way for decades. It's sad to see as I know from personal experience you put your heart and soul into the dream you are chasing. Sometimes, Mother Nature, puts a wrench in that dream and there's no way to survive it without significant capital. There comes a point when money chasing money isn't the answer. For those who survive, there are always lessons learned, changes made, sacrifices too. Restaurants which thrive financially? There are a few. To those operators, I salute you. Happy New Year.