Reply to Restaurant owners / Small business what is the survival strategy?

Forum Index » Money and Finances

Reply to "Restaurant owners / Small business what is the survival strategy?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I am the pp who is the investor in the restaurants. So many people on here clearly have never owned a smaller business before. Depending on how you count what is a business I own about 6-8.

Business 101 is that a business has to be in the black at all times. If it is isn’t the owner needs to adjust something to get into the black and so fast. Businesses that run in the red will fail.

If the restaurant pays its employees while shut down it will fail. If it spends the cash it has on rent for the next few months it will fail. The right strategy is definitely to go into crisis mode, pay absolute necessary expenses only and sort it out with everyone else later.

So strange so many people on here are concerned about the landlord. I’m surprised but hopefully pleasantly so. I own commercial properties throughout the areas with about 25 retail tenants. I expect those in the restaurant or other affected areas to call us and tell us the same thing. We’ll sort it out later. In my restaurants I intend to pay back the landlord. Maybe spread out over 12-36 months. No penalties and no interest. Frankly if my tenants made that same offer I’d jump in it.

As to the commercial landlord who says he is keeping notes. If  you are more focused on a tenant paying you next month than their ability to survive and pay you in perpetuity you will have a lot of vacant properties in a few months time.   I actually have a hard time imagining that you really are a retail tenant landlord. There are times to be a dick and there are times to work it out with tenants. I’m surprised you don’t know the difference.

And as to the posters asking why a restaurant doesn’t carry 6 months of all expenses in hand, you should know that restaurants net 4-8% of revenues. And also that savings held In The business are taxed to the owner the same as if the owner pocketed the money. Which means to accumulate 6 months expenses after taxes would take a restaurant roughly 8-16 years to accomplish. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics