Closed up my two restaurants permanetly today

I'm just one of many, many, Mom & Pop businesses that will go under. Not just small businesses but as you've seen, big ones too like Gold's, XFL, Nordstrums, on and on.

This is just my take on things.

I was going into my 4th year open on the first one and my 3rd on the 2nd one. Had around 30 employees.

2019 was the first year I made a profit. Not just a profit but was one of the fastest growing restaurants in the entire franchise. Up over 50% from 2018. 2020 was the year I was going to do amazing.

Then this comes along.

Yeah, I could get a SBA loan. Bust my ass 7 days a week like I've been doing but I know the outcome.

At this point a SBA loan is like putting a band-aide on a bullet wound. Eventually you will bleed out.

You still have your fixed cost. Your rent, power, labor, food cost etc. Possibly loans out there already and then you add ANOTHER loan payment on top of all that.

But here's the thing. When this country opens up for good, your business levels will NOT return to the same levels it was before this.

So, you'll still have your same costs of running a business, PLUS more expenses only now you are doing LESS business.

I could have bailed out this company but I would wake up a year from now realizing I've working 70 plus hours a week and not made one penny, just to keep the doors open. Eventually it would cave in.

When you find yourself in a hole, STOP DIGGING. So I threw in the towel today.

So many places are going to find themselves in this scenario. Will it be 6 months from now, a year, 2 or 3 even? Who knows.

But there will be a paradigm shift in the way people eat out and the biggest hit will be restaurants.

But you say to yourself, what about takeout and delivery?

Are you aware that Grub Hub, Uber Eats, Doordash, Lunch Drop,EZ Cater, etc. etc. take between 27& and 35% right off the top? That doesn't even include the fees they charge you when they pay out every 2 weeks. They charge you a delivery fee, a per transaction fee.

So with all that, they are taking almost 40%. Then you figure in your 10% royalty and you are only grossing 50% of whatever goes out the door. Screw that.

I'm actually relieved to say FUCK THIS. Yeah, I'm going to lose a shitload of money but what sucks worse is all the time me and my wife have spent nursing these places into a success. You can always make more money. You can't make more time.

I have NO idea WTH we are going to do for a living. But we will figure out something.

This all just sucks because it was all out of our hands and had nothing to do with running a business badly.

It is what it is. But I can't do it one more day.

Some businesses will rebound a lot faster than others. But it won't be restaurants, This I know.

Before this I owned 5 Subways back in the day. Then became a district manager over 8 Bennigans. Anyone remember those? Bennigans parent company S & A Corp when bankrupt and Subway has gone in the shitter as well.

Not gonna lie though, I'm depressed as hell and didn't even have a chance to sell them. Just gonna liquidate everything and walk away from the million dollar plus leases. Will have to file personal BK because they make you sign a personal guarantee these days for the leases even thought you have a corporation.

But I'll land on my feet. I hate having to start over at my age but you do what you have to do. I've lived in a one bedroom apartment and now live in a 5000 plus square foot home (gonna have to move soon, lol). I'm still the same person.

Ok, my woe is me story is finished. I hate my kids are going to have to go through this shit that I've dragged them into.

Just thought I'd share this with anyone who might be going through the same mess as me. Hang in there. As bad as it gets, you still have your friends and family and I wish you all the best.

To quote Rocky, "it's not how many times you get knocked down, it's how man times you get back up".

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Sorry to hear OP. 

 

Our country appears to be spiraling and its all due to a fucking virus. 

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"Are you aware that Grub Hub, Uber Eats, Doordash, Lunch Drop,EZ Cater, etc. etc. take between 27& and 35% right off the top? That doesn't even include the fees they charge you when they pay out every 2 weeks. They charge you a delivery fee, a per transaction fee.

 

Regarding this. We try and oreder and out 3 times a week (though i love to cook) to locally owned restaurants. And i never, NOT ONCE, used a delivery service. I get in my truck and i go pick it up myself..AND tip. 

 

 

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That sucks 

OP why not get one of your workers to deliver and do to go orders? 

Sorry op...sounds like you have the right mindset - I’m sure you’ll bounce back better.

Last year they opened a brand new Bennigans in Monahans texas

"
I'm just one of many, many, Mom & Pop businesses that will go under. Not just small businesses but as you've seen, big ones too like Gold's, XFL, Nordstrums, on and on.

This is just my take on things.

I was going into my 4th year open on the first one and my 3rd on the 2nd one. Had around 30 employees.

2019 was the first year I made a profit. Not just a profit but was one of the fastest growing restaurants in the entire franchise. Up over 50% from 2018. 2020 was the year I was going to do amazing.

Then this comes along."


I'm really sorry to hear this. Terrible news. What is worse is that I bet there are many other business owners that are going under because of this lockdown.

There are going to be dire economic consequences from this for a long time to come.

Al Cappucino -

"Are you aware that Grub Hub, Uber Eats, Doordash, Lunch Drop,EZ Cater, etc. etc. take between 27& and 35% right off the top? That doesn't even include the fees they charge you when they pay out every 2 weeks. They charge you a delivery fee, a per transaction fee.


 


Regarding this. We try and oreder and out 3 times a week (though i love to cook) to locally owned restaurants. And i never, NOT ONCE, used a delivery service. I get in my truck and i go pick it up myself..AND tip. 


 


 

This. The restaurants around here that are open for pickup are insanely busy. 


 


Good luck OP 

Don't be too proud to accept help if you really need it

That sux, OP.  

But it sounds like you and your wife have he drive and smarts to succeed in next your next endeavor.  

sucks would be nice for China to take blame like they should and start dishing out money to the world but good luck with that.

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This lock down has been a bunch of bullshit. If anyone was to be locked down, it should have only applied to elderly people and people with pre-existing health problems, and even for them, it should have been voluntary. Everyone else should have carried on as usual. This was not worth the massive economic damage it has caused. The food supply chain has been interrupted, and this is likely going to lead to starvation in some poor countries. Hopefully this nonsense ends well before we get to the point of anyone starving here.


The government officials who called for this ought to personally reimburse people who lose their businesses and those who got bumped out of work out of their own pockets. If this bankrupts them, then so be it.

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"sucks would be nice for China to take blame like they should and start dishing out money to the world but good luck with that."


Yeah, if they China story is for real, they should have to pay as well.

Thanks guys. I do appreciate it. I'm sure many others are in a lot worse shape than me.

I picked up some take out from a local owned Grill last night. The Lady that owned it with her husband was so happy to see me order.

She said it was her first order since Sunday afternoon. Almost started crying. It was an epiphany and I decided then I wasn't gonna waste another day with this stress and fighting a losing battle.


DELIVERY Question......
We didn't even have that much take out before this. Not a pizza place and dealing with in-store delivery would be a nightmare. It's already hard enough to deal with getting a full staff of mostly teens. Not fun.



ABOUT Bennigans.......
Bennigans had over 200o restaurants open as well as 1200 Steak & ales. They all closed up as they were all Company owned. The only Bennigan's that are open now are Franchised. There might be 20 in the whole country that are left, all personally owned.

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I feel for you. I'm more terrified of what this will do to the economy and small businesses long term than I am from this stupid virus. Sorry man.

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Good luck to you. I wish you the best.

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Sorry to hear about this OP. Glad you are keeping a level head. Corona/the coming recession/depression did not cost me what feels like "everything" but I had serious health problems cost me "everything" in the past.

Just knocked down again and again.

Rocky was right too, glad you are already focused on getting back up.

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Sorry to hear, and hate to say this, but probably the right move.   Most people have NO IDEA what owning a small business is like. 

Sorry to hear it OP. 

We are all better off because of people like you, who are willing to take on all the risk and hard work to run their own business. I don't fault you at all for bailing, but I hope you get back in the game soon.

 

Also, I did know the delivery services were very hard on resteraunts as far as fees and their cut, but had no idea it was that high. Pretty disgusting how they are advertisng themselves as superheroes during the pandemic while soaking businesses for that much. To be clear, I think they should be able to charge whatever they want for their services, but it's gross to act like you're saving the industry.

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