How Tampa Bay Restaurants are Handling the Crackdown of COVID-19 Regulations

Many local restaurants and bars are struggling to adjust to recent regulations put in place by local governments and authorities. This fall, Governor DeSantis lifted all COVID-19 restrictions that had been put in place for businesses, leading to bars and restaurants resuming their normal operations. This included customers congregating in indoor or outdoor spaces without the use of masks or social distancing guidelines. Although, each local government has the authority to put their own rules in place. 

As the cases continued to rise, the City of Tampa decided to put these regulations back in place and start cracking down on those who violated them at the beginning of the new year. These rules include customers wearing masks at all times unless they are seated with food or drink, restricting the congregation around bars or dance floors, and tight regulations on the number of guests allowed at indoor seating areas. 

Code enforcement along with TPD officers are visiting the bars and restaurants that are most likely known to be violating these guidelines and holding large congregations of individuals. If they come across any violations of these new regulations, the businesses will receive a citation. Businesses with two or more citations are facing a trial of the suspension of their liquor license if they continue to be noncompliant with the new rules. 

There are three businesses in Tampa Bay that are being sent to trial- MacDinton’s Irish Pub, Tangra Nightclub, and Ybor Cigars Plus. They are required to go in front of city council members who ultimately have the final say over alcohol sales on the businesses’ premises. 

Although these harsh regulations and fines are making it tougher for local businesses to  get by during these hard times, Jane Castor, mayor of the City of Tampa, is doing what she thinks is right for Tampa in the long run and for the safety of all citizens. How do you think this will affect businesses and individuals? 

City of Tampa Cracks Down on Bars & Restaurants

Many local restaurants and bars are struggling to adjust to recent regulations put in place by local governments and authorities. This fall, Governor DeSantis lifted all COVID-19 restrictions that had been put in place for businesses, leading to bars and restaurants resuming their normal operations. This included customers congregating in indoor or outdoor spaces without the use of masks or social distancing guidelines. Although, each local government has the authority to put their own rules in place. 

As the cases continued to rise, the City of Tampa decided to put these regulations back in place and start cracking down on those who violated them at the beginning of the new year. These rules include customers wearing masks at all times unless they are seated with food or drink, restricting the congregation around bars or dance floors, and tight regulations on the number of guests allowed at indoor seating areas. 

Code enforcement along with TPD officers are visiting the bars and restaurants that are most likely known to be violating these guidelines and holding large congregations of individuals. If they come across any violations of these new regulations, the businesses will receive a citation. Businesses with two or more citations are facing a trial of the suspension of their liquor license if they continue to be noncompliant with the new rules. 

There are three businesses in Tampa Bay that are being sent to trial- MacDinton’s Irish Pub, Tangra Nightclub, and Ybor Cigars Plus. They are required to go in front of city council members who ultimately have the final say over alcohol sales on the businesses’ premises. 

Although these harsh regulations and fines are making it tougher for local businesses to  get by during these hard times, Jane Castor, mayor of the City of Tampa, is doing what she thinks is right for Tampa in the long run and for the safety of all citizens. How do you think this will affect businesses and individuals? 

Recover & Rebuild Program

tampa, covid restaurant relief

In lieu of the COVID-19 effect on restaurants and the hospitality industry not only in the nation, but worldwide, Winsight Media has created a community forum called “Recover & Rebuild”, offering businesses with resources and useful information in order to help open up their doors again in a safe and effective manner. There are many ways restaurants have been affected by the pandemic, here are some ways restaurants have been accommodating the situation.

Although some restrictions are being lifted nationwide, some states are still under strict guidelines and are being forced to adapt in order to follow these new rules. These regulations not only affect the restaurant operators, but also employees. 

Events 

The Recover & Rebuild program is offering a number of events/forums for businesses to attend in order to gain knowledge and insight on how to maintain business in the case of a crisis. One of these events is the Innovation in Foodservice Forum, a digital service exploring important innovations for these businesses as well as insights on what might be in store for them in the upcoming future. These forums include webinars like Delivering Sales-Generating Insights During the COVID-19 crisis, What Restaurant Operators Should Know about COVID-19, Think Global, Eat Local:  How Restaurant Tech Can Adapt to a Changing Landscape, and many more. They are also holding a Restaurant Recovery Summit launching on November 17th,  featuring 40+ expert restaurateur speakers and 25+ webinars. Registration for the summit is free to restaurant operators by signing up to learn more about solutions from sponsors. 

Building Community 

Not only are webinars and events being held, but Recover & Rebuild is helping to shape and bring together the restaurant community among this turmoil. A few ways they are doing so is through the creation of their facebook page, “Coronavirus in the Food & Beverage Industry”, their live blog for breaking news, information and updates on what’s happening in the National Restaurant Association, and hearing from operator peers through webinars. 

Resources 

Recover and Rebuild has also offered restaurant operators with information regarding a number of resources that they may need in order to get through these times. Some of these include the IRS Coronavirus Tax Relief, James Beard Foundation, the Paycheck Protection Program, and the National Restaurant Association with the status of restaurant operations by state. 

You can access these resources and sign up for these events at https://recoverandrebuild.winsightmedia.com/#events-section 

Podcasts That Help Restaurant Operators

Restaurant operators know that running any food operation is hard work. There are long hours, tight profits, and a lot of upkeep. However, for many it is worth it. Learning as much as possible about the industry is a good way to reduce the workload. Just like any other industry, there are successful experts willing to share their knowledge. Podcasts enable people to access this knowledge for free. So read on to learn about some of the top rated podcasts that focus on the restaurant industry.

1. Restaurant Unstoppable

Restaurant Unstoppable is run by Eric Cacciatore. He brings a different guest in every episode to share their expertise in the food service industry. In fact, the subtitle of Restaurant Unstoppable is “Melting Pot Of Mentors.”

The podcast has been running for a long time, and releases twice a week, so there are nearly 700 episodes to dive into. Restaurant Unstoppable has 5.0 out of 5 stars after 200 reviews.

Reviewers describe the podcasts as “bold, insightful, and engaging.” Other people claim that Restaurant Unstoppable is the catalyst for their own restaurant journey. Overall, they could be described as “glowing.”

2. The Garnish

The Garnish is run by the restaurant technology company Toast. Toast also has a blog that is an amazing resource for operators. The Garnish interviews everyone in the industry from restauranteurs to chefs to servers. So it truly provides a complete perspective across the industry.

The Garnish has an irregular publishing schedule, but there is plenty of content to sort through. It has been running since July of 2017, with the most recent Staff Series published in early November 2019.

3. Secret Sauce – The Restaurant Marketing Podcast

In a restaurant, a secret sauce is usually kept a secret because it is successful, and the uniqueness makes people love it. The Secret Sauce podcast aims to create the “secret sauce” of marketing for your restaurant. It has been running since October 2016 and has over 120 episodes.

It has a 5.0 out of 5 stars rating with approximately 30 reviews. Every review is thanking and praising James, who hosts the podcast. There are even chefs that claim Secret Sauce as a main source of inspiration for their personal brand.

5 Types of Capital Funding for Restaurants

financing restaurant real estate

It can be exceedingly difficult to operate a successful business in the hyper competitive restaurant scene. The ultra slim profit margins across the board and fierce outside competition can be a challenge to manage. A simple lack of capital can be the ultimate ruin of even the most successful restaurant. Many inexperienced restaurateurs run into a slew of hidden costs and liabilities that can easily run all of their capital funds dry.

Let’s discuss a few ways in which restaurants can increase their available on-hand capital.

  1. Bank Loans – The most traditional route for most business owners to accrue additional funds for business operations is via bank loans. This route is particularly advantageous for well established restaurants with proven financial success and solid business credit scores. However, this can put start-up and smaller restaurants at a disadvantage in regards to availability to funds.
  2. Business Partners – One way to increase available capital without taking on additional debt is to have a business partner. A reputable and trustworthy business partner can be hard to find, especially when for a business that is still relatively small and unproven. Although it can avoid taking on debt, a business partner will assume more control on general operations as they are buying a ‘share’ of the business.
  3. Personal Funds – It is very common for restaurant owners to use at least some of their own personal capital to fund a new venture . It is a wise way to avoid the burdensome liabilities of debt, especially when opening a new, unproved restaurant. However, it can be awfully risky to invest one’s life savings into a business or borrowing from rich relatives in hopes of turning a profit.
  4. Crowdfunding – A new accessible form of funding for restaurant owners that have a large email list and social media following.  Popular platforms include Kickstarter, Indiegogo and Go Fundme.  Essentially, this is an option to have restaurant patrons become involved in helping to start or grow a new concept. 
  5. Private Equity – The last option of garnering funds pertains to private equity funding, which is essentially a group of private investors pooling their resources together to invest in a business. Private equity investment in the restaurant industry has been at a steady growth for years. Similar to having a business partner, restaurant owners can have access to additional capital at the cost of relinquishing some overall control on the business. The ideal candidates for private equity funding are experienced operators with plans to open more than 15 units. Here is a site with some of the top private equity lenders.  https://aaronallen.com/blog/restaurant-private-equity-firms

Capital Funding Considerations

All restaurant owners whether big or small, can have access to additional funds for their business. The best option ultimately boils down to each restaurant owner’s personal needs and goals for their business. Whether the goal is to grow, consolidate debt, or future renovations; there is a source funding at their disposition.

Managing Rising Labor Costs

Rising Wages in Restaurant Industry

How business savvy restaurateurs are turning a profit in the highly competitive food service industry  

The economy as a whole has been undergoing a massive shift due to the widespread adoption of technology and automation. The restaurant industry is no different. The reshaping of our modern day economy has created a huge deficit in the workforce of the food service industry. The shortage of workers along with an increasing minimum wage, has created a costly dilemma for restaurant owners.

Cost of Business

The labor costs in the restaurant business can vary depending on the nature of the locale. When operating a fast food style restaurant, one can expect a margin of 25% on labor costs of total revenue. On the other hand, fine dining and table service restaurants typically operate with a margin of 30-40% on labor costs of total revenue.

Restaurant owners are obliged to get creative with their resources in order to keep labor costs down and gross profits up. The last resort of cost cutting in the restaurant business is to pass on the rising costs back on to the consumer; this, can alienate your loyal clientele and negatively impact overall sales. And, it is much harder to push on other substantive operating costs, such as lease costs, as prime locations usually have a waiting list of people behind the current tenant, who are more than willing to pay the rate.

Help Wanted

The process of hiring new staff is costly and time consuming. It involves vetting, interviewing, training, and managing personnel on the job along with all of the other unexpected contingencies. Thorough training and scheduling of staff can help workers maximize their productivity on the job and minimize unnecessary costs such as overtime pay.

Although the federal minimum wage has plateaued at $7.25 since 1991, some states have successfully pushed for higher wages, such as in the state of California, where the minimum wage is currently set at $12 an hour. At the state and federal level, there is the ever-present, looming push for higher minimum wage hikes, which is another pressure point to the bottom line for restaurant owners. Time will tell how operators will handle the inevitable rise in wages for hospitality workers, but we suspect, that particularly in the lower priced point concepts, automation will continue to take on repetitive and mundane tasks to attempt to keep overhead down.  The payback period on a $10,000 piece of equipment can easily be less than one year and much less in a rising wage environment.

Maximizing your Restaurant Real Estate Space

coffee shop coworking

Walk into any cafe these days and you’ll most likely be greeted by the sound of patrons tapping away at laptops, creating the next big thing.  Millennials, side-hustlers, startups and freelancers are turning trendy local coffee shops into offices. But hipster coffee spots with cold brew on tap aren’t the only places that can capitalize on this trend. Almost any restaurant can hop onboard the co-working train by partnering with sites like Kettlespace and Spacious. These sites help remote employees find coworking or meeting room space to rent in their areas.

The idea is that restaurants can rent out their space to digital nomads to generate revenue after hours or at slow times.  Employees pay a monthly membership fee to the sites and participating restaurants receive a cut of those fees.

Transforming your restaurant real estate into a co-working space isn’t just a way to bring in extra revenue- it can also be a part of your marketing mix. You may become the new favorite dinner spot among employees who discover you via the co-working networks.

If you haven’t yet leased a space for your restaurant, you may want to consider looking for features that would make your eatery an ideal co-working space. Spacious offers these guidelines for their spaces:

  • Closed for lunch
  • Gorgeous interior with natural light
  • Seating for at least 100 (ideally more)
  • Street level access

For example, if you open at 5pm for dinner, you will have a good window of time for workers to come in. It also helps to have a private dining room.

The most important features are the amount of space you have and the aesthetic appeal of your restaurant. Spacious and Kettlespace take care of the rest. The companies provide coffee, tea, snacks, and even power strips for your working patrons.

So why not make the most of your space? Sign up to become the next best co-working hotspot!

 

 

 

Introduction – Rita’s Franchisee

Restaurant franchisee

We caught up with Humza Chowdhry, an entrepreneur who, along with his wife, Annie, operates several Rita’s Italian Ice units in California.  He shared their restaurant franchising journey with us:

RRE: What are your professional backgrounds?

Humza: I’m a structural engineer and general contractor. (He founded H.C. Structural Engineering). Annie is a high school counselor.

RRE: How did you find out about Rita’s?

We learned about Rita’s after trying it down in Southern California.

RRE: What got you interested in Rita’s?

The taste, quality and uniqueness of the product.

RRE: How did you decide to purchase a franchise?

We fell in love with the concept, sold our home, and dove right in.

RRE: How many units do you operate?

We operate five units across California.

RRE: Where is Rita’s currently looking to expand?

Las Vegas, Nevada and Ventura County

RRE: How do you go about finding locations? Do you use a  commercial real estate broker?

We have a mix of software and use of brokers to help identify potential markets which would follow our successful store trends.

To find out more about owning a Rita’s Italian Ice store, visit www.ownaritas.com

Business Plans are Important When Acquiring the Right Real Estate – Here’s why!

restaurant business plan for real estate

You have a phenomenal idea for a new restaurant. You’ve perfected your recipes, designed your concept  and now you’re ready to lease the perfect space in which to make your dream a reality. But it isn’t as simple as handing over cash and signing paperwork. Landlords won’t let just any new business concept set up shop in their plazas. You have to pitch your restaurant idea to them so that they can decide whether or not it appeals to the market they are reaching and whether or not it will provide value to the retail space. The best way to pitch your concept is to formulate a business plan. It is the most widely used genre in business settings and an invaluable tool to have as an entrepreneur.

Here is a comprehensive template for creating a restaurant business plan. You can create a word document or a PowerPoint to display this information.

Concept Description

Begin by describing what it is you are offering at your restaurant – what type of food will you serve? Will it be a fast-food type of establishment, a casual sit-down eatery, or a fine dining experience?

Customer Type

Think about the demographics of the customers that shop in the plaza in which you are seeking to rent.  Why are they choosing this restaurant? (i.e. to drink and socialize…experience fine food…or unique coffee)?  What is their household income level? Their age bracket?

In addition, what will be the heaviest traffic time for customers (breakfast, happy hour, lunch, etc.)?

Sample Menu

Even if it isn’t artfully created by a graphic designer yet, provide the landlord with a rough draft of what your menu will look like so they can gain an even better understanding of the type of establishment you are opening.

Management Team Bios

Give a face to the people behind the concept. Who are they? What are their professional backgrounds? What unique skills are they bringing to your team? This will help build credibility and trust.

What type of improvements will be made to the property?

Get specific about the modifications you will be making to the building so that the landlord is aware in advance. Are you installing a grease trap and hood? Implementing an elegant interior design that requires a lot of painting, light fixtures, etc.? There may be some changes you need to make that they do not approve of, so it is best to be upfront about everything.

Market overview and why your concept will work

Do some research and find out what the market for your particular offerings looks like. Is it growing? Is there a demand? Use sites like IBISWorld, Upserve and Toast  to find the trends and market information. Then, based on your findings, explain how your concept addresses a need or gap in the market and why you have a unique value proposition that will lead your business to be successful.

Other locations?If you have a franchise or are looking to open multiple locations (or already have), mention that. If your other locations or planned locations are in close proximity to the space you are trying to lease, that may create an issue.

Business structure

Explain the hierarchy of your business. Who will be signing the paperwork? Whose name will be on the lease? What are your team members’ titles? Is it a partnership?

Financials

Where is the money coming from? What are your reserves? Do you have investors? Are you investing your own personal funds into the restaurant? Have your crowd-sourced funds? Be transparent about your financials so that the landlord knows they can trust you to keep up with your payments.

For this section, you may want to seek assistance from an accountant. Include documents such as a budget and profit and loss statement for the first five years of operation.

Your business plan doesn’t have to be a ten-page essay. Keep it simple and to the point so that the landlord knows exactly what your restaurant will be and how you will make it happen. Your business plan could be the difference between landing your dream restaurant real estate space and losing out on it.

Restaurants Can Still Earn Revenue without the Restraints of Fixed Real Estate

restaurant catering off site

If you own a restaurant or food service business that gives you the opportunity to offer catering services, there are virtually no limits to the number and types of events you can attend. You just have to be willing to think outside the box….and away from from your fixed restaurant real estate location.  

Rita’s Italian Ice of San Jose provides a stellar example of how a franchise can maximize their catering revenue. Shortly after opening the brick and mortar location, the owners sought community events at which to bring their food truck or set up a booth. But instead of limiting their options to events that were actively seeking food vendors, such as food festivals, they subscribed to the philosophy of “If you don’t ask, you’ll never know.”

The marketing team reached out to even the most unlikely events such as a dog festival and a vegan festival to see if the organizers would like to add a food truck to the event.

Here are just a few examples of events they have attended:

  • Bark in the Park

You might not think people food has any place at a festival for dogs and dog lovers, but this festival accepted a small number of vendors for the “human food” section. Numerous cities around the country host this event, so just Google “Bark in the Park” and see if you can find a festival near you.

  • Vegan festival

Many major cities host annual vegan festivals. Even if you are not an all-vegan establishment, bring what menu items you have that are vegan so that you do not miss out on the money-making opportunity. Being a vendor at a vegan festival will also help you reach a new customer segment who may not otherwise visit your restaurant.

  • Italian Festival

Is your food associated with a certain culture? Rita’s Italian Ice had no problem booking a spot at the local Italian festival (I mean, it’s in the name!), but if, for example, you are a boba tea franchise, you could look for local Taiwanese festival or partner with a Taiwanese Student Association event at a local college.

  • Night Market

Night markets are becoming increasingly more popular. They are basically farmer’s markets- only they are held at night and are usually more entertaining. There usually aren’t too many limits as to what you can sell, so they are ideal events for almost any type of restaurant concept.

  • Farmer’s Markets

Most farmers markets allow restaurant vendors, but be aware that some markets only allow you to buy a stall if you agree to commit to selling every week for several months.

  • Flea Markets

Many local flea markets also have a food section. Again, like the farmer’s markets, there may be a commitment clause when you apply to be a vendor, so be careful that you don’t sign up for something you cannot follow through with.

No matter what type of event is going on in your city, chances are they might be open to having you as a food vendor. It never hurts to ask, even if you don’t think your offerings are aligned with their event theme. For example, at the Mushroom Mardi Gras in Morgan Hill, California, not all of the vendors are mushroom-based; there is typical fair food like funnel cake and shaved ice. However, on the other hand, some very niche festivals like bacon festivals sometimes require you to sell bacon products (Can you easily modify an existing menu item to include bacon just for the event?).

To find events in your area, check out Eventbrite, your city calendar, Facebook, Eventful, Craigslist, Nextdoor, and your local newspapers.

Tips:

  • Look at past events to do a quick analysis to see what kind of vendors they have had or are missing.
  • Apply early, spots at popular events fill up fast.
  • Market your services to the event organizer by clearly explaining why having your business at the event would be beneficial- especially if there isn’t a clear connection between your product and their event.
  • Estimate your ROI. If the event doesn’t have a successful track record or is brand-new and charging high vendor fees, it may not be worth it.
  • Know what equipment you would need, such as electricity.
  • Have any necessary insurance forms/permits readily available.
  • Share the event on social media
  • Keep in touch with the event organizers after the event. You might be able to score priority sign up for the next year!