Leaving or closing a business is challenging, and many operators wait long after their restaurant has stopped generating revenue to make a clear, though painful decision.
On this episode of The Barron Report, host Paul Barron sits down with author Kevin Alexander. Alexander is the recipient of the James Beard Award and the Mark of Excellence Award from the Society of Professional Journalists. Just released last month, Alexander’s book Burn the Ice: The American Culinary Revolution and Its End, discusses the culinary revolution that began in 2006. Barron and Alexander chat about the predicted recession and restaurant business meltdown coming for the industry.
“It’s the shark motto: move or die,” says Alexander. “I call this age the age of the operator. It’s the folks who are recognizing opportunities and are able to move quickly, do things efficiently, and have good management teams in place ready to jump on these opportunities that are succeeding.”
Companies that have a successful, air-tight concept can trust that that will be all the stronger for the expected recession. And, of course, money helps. “The operators that have enough capital [will] survive,” adds Alexander. For other restaurants, it is paramount that owners recognize when it is time to cut staff or close, and to quickly address a concept that is not working.
And in the move toward on-demand, customers are “caring less and less about where they get [their food] as long as it’s summer,” says Alexander. “It is really worrisome for independent restaurants who are trying to market themselves and stand out.”
However, as concerning as this trend can be for restaurant operators, he urges owners not to panic. “I don’t think it will all transfer over to this on-demand culture. If anything, you see the sustainability of places like movie theaters.” Much like watching a film, Alexander argues that most people will continue to seek the shared experience of dining regardless of what they can now have delivered to their front door.
Listen to the podcast to hear more about the problems of rent costs in major cities, the ever-changing Portland culinary scene, and the rise of ghost kitchens. And if you would like to keep listening, check out The Barron Report podcast on iTunes Now!