Quote:
Originally Posted by yadkin
“ Why are so many North Carolina restaurants closing?”
Is it possible for a synopsis for one who does not do Facebook?
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Commentor: Food & labor expenses are insane right now and just about any restaurant that is leasing a property is doomed because landlords keep raising lease terms even in places like Kinston or Rocky Mount.
Profit margins are almost non existent and the labor pool is the weakest it has ever been because people are tired of being overworked in a thankless career field……every single time I interview someone I go in with the mindset that the individual I’m talking to either TRULY loves this industry or this was an absolute last ditch effort to make ends meet - it’s always the later.
People do not understand that when they are buying a $30 New York strip they aren’t simply paying for the meat on the plate. They are paying for the labor, the light bill and the $350 5 gallon bucket of dish chemicals used to clean the plate that won’t even last a whole week.
Restaurants also had the luxury for years of being able to make up the lost revenue of low menu prices by running a bar program where cocktails were $10-$12 but that was when you had cocktails being made with $9 bottles……..there is almost nothing palatable in NC ABC stores for less than $30 these days.
I mentioned the landlords too right……..that’s probably the biggest killer of restaurants in the last 10 years.