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Thousands of restaurants close: Are you ready to sell the inventory?

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Over 5,000 restaurants across the United States closed their doors in the past 12 months. Most of them were independents, not chains. After you get over mourning the demise of your favorite Friday night spot, thoughts turn to how are we going to sell these properties?

The statistics from this week’s news shouldn’t surprise anyone. Early on in the recession Americans started cutting back on their dining out. Some cut out restaurant meals completely to save money. Those those who still ate out regularly moved to less expensive joints. Fine dining became a luxury for most Americans the past few years.

Restaurants cut expenses and adapted to the new economy (blue plate specials and coupons), utilized creative marketing techniques (Facebook and Groupon) or hung on for dear life.

Now it seems like in 2009-2010 that line snapped. With no more ways to cut costs and record level unemployment numbers thinning their dining crowds to a trickle, many independent restauranteurs threw in the towel.

In my area, there’s one restaurant that has changed hands three times in the past four years. Driving by today it looked dark at lunchtime, and someone commented to me that the location must be the kiss of death if it’s closed again.

(Question: are some locations truly jinxed or just so poor nothing could succeed there? This particular location is the middle of a small strip mall with frontage on a very busy road. It’s got easy access and visibility. What gives? Just three owners in a row who don’t know what they’re doing? Or something more?)

How do you sell this thing?

If you’re a real estate broker and you list a closed restaurant, what’s the best way to sell or market it? Obviously the best and easiest solution is to find another restauranteur (or chef who always wanted to own his own place — see prior paragraph for that downside). If the kitchen and equipment are in good working order, perhaps you can find someone who just wants to step into the prior owner’s shoes and turn the business around. That’s your dream deal.

If leased equipment has been returned and the place is a mess, one solution is to clean it out and perhaps even gut it. Make it a plain vanilla shell so that any business could see themselves there, not just as a restaurant. If it’s got a good location, plenty of parking, what else could use the building? What is the location best suited for?

Survey the neighborhood

What is missing in the neighborhood? Do a survey of local businesses and see where the gaps are. Ask people what they’d like to see in the spot. What kind of retail or services are out of the area, that they have to drive to find? What do locals wish was there?

I had a closed restaurant property with a large vacant lot that was next to a retirement development. The building itself probably should be torn down, so I was marketing a location really. Locals had to drive several miles to go food shopping. I was convinced a small grocer should move in and would make it there. There was no grocery store for miles!

Unfortunately, the large chains decided that the demographics would not support their stores. And the smaller local chains I approached were struggling themselves, and not in expansion mode. I couldn’t sell a single grocery store on the idea.

I surveyed the residents of the retirement community and found they wanted a dollar store, a crafts store, and a pharmacy. I tried approaching these kinds of developers and I got a dollar store interested. Unfortunately they didn’t want my lot and built a dollar store next door on a lot another broker had listed! It was a good idea, but didn’t sell my property.

Selling a closed restaurant is not easy, especially with financing these days. Even when you find a buyer, if it’s another entrepreneur who wants to open a restaurant, it’s going to be an uphill battle to get him to the closing table.

If the seller can handle the risk, perhaps the only way for the buyer to take over would be with seller financing — part of the deal or even the whole transaction. That only works if he isn’t so far into debt that that he’s underwater.

It’s certainly a challenge, but many real estate brokers in 2010 and 2011 had better learn how to handle these kinds of properties. There’s going to be more of them coming on the market in the immediate future.

Flickr image courtesy lindsayloveshermac

Erica Ramus is the Broker/Owner of Ramus Realty Group in Pottsville, PA. She also teaches real estate licensing courses at Penn State Schuylkill and is extremely active in her community, especially the Rotary Club of Pottsville and the Schuylkill Chamber of Commerce. Her background is writing, marketing and publishing, and she is the founder of Schuylkill Living Magazine, the area's regional publication. She lives near Pottsville with her husband and two teenage sons, and an occasional exchange student passing thru who needs a place to stay.

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17 Comments

17 Comments

  1. Joe Loomer

    July 30, 2010 at 7:20 am

    There is a location in my town that has also had three separate owners in recent years, and just acquired it’s fourth. All restaraunts, all failed. One – The Upper Crust – was a fantastic pizza joint that was consistently the “Choice of the Town” in the local paper. I think it’s a combination of business sense and the things you state. If the traffic count isn’t there, if people can’t even see your store or park easily, you’re toast.

    In another area – a national franchise shut down, only to be gobbled up and re-opened as a sports-pub. It is doing extremely well.

    Navy Chief, Navy Pride

    • Erica Ramus

      July 30, 2010 at 6:00 pm

      Joe–I confirmed it today. Owner #3 has shut down in that location. What a shame.

  2. BawldGuy

    July 30, 2010 at 10:03 am

    Erica, I don’t envy you a bit. Been there, done that with residential income property, in previous bad times. What outsiders think is ‘creative’ doesn’t make the ‘A’ list of the real creativity pros like you generate.

    We’ve all had those ‘D’oh! Why didn’t I think of that?’ moments when a situation such as yours is suddenly and spectacularly turned around by a new tenant/business. A recent example in my neighborhood was a vacant, failed Taco Bell. It’d been vacant for literally over two years. In my opinion it was the location, as it was in the middle of a street with decent traffic, but if you were on the wrong side, you had to hang a u-turn and come back. So what do ya think has finally replaced Taco Bell and is doing incredibly well?

    A taco shop! But a typical San Diego taco shop, which means just about everything they make is wicked good. In other words, the anti-Taco Bell. It’s been almost six months now, and it’s still ‘the’ neighborhood taco shop destination. Who knew?

    • Erica Ramus

      July 30, 2010 at 6:02 pm

      That just shows that people WILL go out of their way for wicked good food, or service, or whatever you produce. If it’s a tough destination, make it worth their while!

  3. Property Marbella

    July 31, 2010 at 12:10 am

    In finances crisis are bars and restaurants the first who close down. Over here in Spain is the situation the same, your local favourite is one day gone and a new one try with a “new” concept and 3-4 months later a new one…

  4. mike

    July 31, 2010 at 6:35 pm

    I miss Pizzaria Uno.

  5. Beth Anne Grib

    August 5, 2010 at 12:15 pm

    I don’t know of any lender who wants to get within reach of a buyer trying to buy a restaurant. This is one of the toughest commodities to sell right now because the lenders know that restaurants are going under and having a tough time of it and they are either not permitted to take that risk due to stringent regulations or just simply refuse to do so. We have contacted almost 200 retailers within the last 6 months for new market areas and they all say …”Call back in 6 months”. Everyone’s waiting for that evading “light at the end of the #CRE tunnel”

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Business Entrepreneur

Entrepreneurs thrive because they are easily distracted?!

(ENTREPRENEUR) If monotony and boredom at work- well bores you, it’s possible you may fit with the other entrepreneurs with a quick and constantly changing career.

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When Bill Gates was a kid, he knew he liked messing around with code. He couldn’t have known how it might evolve, but he was willing to live in the distraction, focusing on details when needed, but always learning, moving on, taking risks and growing in the process.

Some of the most successful folks among us are not content to sit and make widgets every day. They cannot thrive in a detail and focused work environment. So, it may come as no surprise to know that people who are more easily distracted are also more likely to thrive as entrepreneurs.

According to this study, if you are intelligent and get distracted more easily, those two qualities combined will likely enhance your creativity. And, that creativity and ability to use distraction as an advantage can be channeled to create new things, jobs, companies, etc.

For those of us who are more easily distracted, who enjoy doing different things every day, and who like learning, a recent article in the Harvard Business Review suggests a good option is to find a career path that provides the right amount of distraction and which is a great fit for your personality. If you do that your talent is more likely to be apparent because you are playing to your strengths. Also, if you are working in your sweet spot you will be more productive and motivated.

Maybe not surprisingly, the top job for those who live in distraction is entrepreneur. The term “easily distracted” often comes with a negative connotation, but considering an entrepreneur is taking risks, making things happen and creating companies, ideas, products that may have never existed, this spins that idea on its head. Entrepreneurs are the chief cooks and bottle washers of the world. They ideate, create, hire and inspire. None of that is possible in a monotonous work environment.

“Unsurprisingly, meta-analyses indicate that entrepreneurs tend to have higher levels of ‘openness to experience,’ so they differ from managers and leaders in that they are more curious, interested in variety and novelty, and are more prone to boredom — as well as less likely to tolerate routine and predictability,” according to the HBR story.

Other careers that are great fits for those of us (me included) who enjoy distraction are PR/Media Production, Journalism and Consultant. What these fields all have in common is, there is never a dull moment, switching from task to task is pretty commonplace, and you will do well if you can be a generalist – synthesizing information and weeding out the unnecessary.

Not sure where your strengths lie? Here’s a quick quiz to give you some feedback on how curious you really are.

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Business Entrepreneur

11 productivity tools for entrepreneurs that work from home

(BUSINESS) We asked remote professionals what some of their favorite (and most necessary) productivity tools were for the home office, and have 11 ideas that you might not have tried yet.

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Working from home comes with its perks – comfortable pants (sweat pants*), working at your own pace, and not having your boss breathing down your neck are only a few. But staying productive and on-task can be a challenge when the only one watching is you (and your cat [who requires frequent cuddle breaks]).

We asked remote workers how they collaborate, stay on top of their work, and get shit done. Here’s what they said are their most reliable and necessary work-from-home tools:

First, let’s check out collaboration and team productivity tools:

Time Doctor

timedoctor780x433
Manage a remote team? When you need them focused on that time-sensitive report you needed yesterday, we’ve got a solution.

We use our own time tracking tool which we find essential for remote work and remote teams. It has everything you would need to give you an analytics of your workday and managing remote teams,” says Carlo Borja, Online Marketing Head of Time Doctor. This includes real time updates, gentle nudges to get you and your employees back on track, and a free trial run.

Azendoo

azendoo
Stop miscommunication in its tracks.

One of the best tools that we use to keep in contact and make sure everyone stays on task is Azendoo,” says John Andrew Williams, PCC, Founder and Lead Trainer at Academic Life Coaching, “It is an amazing tool that allows you to assign tasks to members of your team, leave comments and messages, and organize everything based on projects. It has truly been the best thing for us to improve our productivity and stay connected when we all work remotely.

RealtimeBoard

realtimeboard
What about brainstorming and collaborating with your team in real time? “RealtimeBoard is an online whiteboard and super simple collaboration service for marketers, developers, designers and creatives worldwide with user list exceeding 675k. It’s frequently used for project management, user experience planning, creative concepts visualization, story mapping, brainstorming, etc,” says Anna Boiarkina, Head of Marketing at RealtimeBoard.

Popular Favorite: Slack

slack780x433
Without question, it is Slack! With our marketing team spread from San
Antonio to San Francisco, Seattle and Madison, we couldn’t do our job
efficiently without this messaging communication tool,
” says Marcia Noyes, Director of Communications with Catalyze, Inc.

Noyes adds, “Before I took the job with Catalyze, I wondered how I could possibly stay on top of the very technical subjects of HIPAA compliance, digital healthcare and cloud computing, but with Slack, it’s easier than email or being there in person at corporate headquarters. I don’t think I could ever go back to being in an office. With this tool and others, I get so much more accomplished without the commute times and interruptions from water cooler talk and discussions about where to go for lunch.”

Now, let’s move on to tools and tips for your health:

A treadmill desk

treadmill desk
Slump no more.

Gretchen Roberts, CEO of Smoky Labs, a B2B digital and inbound marketing agency says that her treadmill desk helps her fight through the afternoon slump. “The endorphins that are released from the walking get me right into a feel-good mood again, same as a conversation and piece of chocolate would.

Not only is it great for you, but it keeps you awake and alert so you can fight the urge to take a “quick nap” right around 3pm. Good weather not required.

Lumbar support

lumbar-support
Then there’s always the issue of your health. We asked Dr. Barbara Bergin, M.D., Board Certified orthopedic surgeon her thoughts on how to best furnish your home office, and she had a few simple ideas that go a long way.

Invest in a good chair, a McKenzie lumbar pillow (because no work chair has the perfect lumbar support), and a drop down tray for your keyboard and mouse. If you have short legs which don’t quite reach the floor, either adjust your chair (which means adjusting everything else) or get some kind of a platform on which to rest your feet. I recommend those old bench step aerobics steps.

These are all suggestions that are easy to implement and positively impact your health (and wallet, when you consider chiropractic visits, massages or even surgery).

And some of our favorites – tools to manage time, data, and communications:

ClockingIT

clockingIT
In a similar fashion to Time Doctor, ClockingIT is a time-tracking application that logs everything you do. This allows you to keep track of how much time you’re really spending on a project (or time spent off-task on a project).

I work from home exclusively as a freelance communications and marketing manager. One of my clients, Simon Slade, CEO of SaleHoo, introduced me to ClockingIT. ClockingIT, a free project management system, is now a tool I can’t work from home without. It provides an easy way for me to log my time on different tasks and communicate project updates to colleagues without sending cumbersome mass emails. I like ClockingIT so much that I’ve created an account separate from SaleHoo’s, just for myself, and I use it to manage my work for other clients as well.

This would be a great tool for freelance designers and writers who need to keep track of time so they can appropriately charge their clients.

Zoho Vault

zoho vault
Throw away the Rolodex. With all of the social media information, websites, passwords, and logins a company might need to remember, there is a better way. Molly Wells, an SEO Analyst with Web301 believes in the power of Zoho.

The one tool that I can’t work at home without is the one that stores our many clients personal information. Links to live websites, production websites, their social media usernames and passwords. All of our own websites logins, social media logins along with all the tools we use. Rather than storing all of these on our server or on pen and paper, we use Zoho Vault. It’s a lifesaver for accessing information while at home or on the go. All of our passwords are all in one place.

Cloze

cloze
Winner for most comprehensive all-in-one freelancing app goes to Cloze, which does… pretty much everything.

As a freelancer, the tool I absolutely can’t live without is Cloze,” explains JC Hammond, “Cloze is a contact management app and website that is perfect for freelancers because it is highly customizable, links email, social, phone and notes in one place, lets you track interactions and statuses of projects, companies, and people and even delivers an informative “Morning Briefing” to help get your day off to a great start.

She thinks one of the most useful tools is the email read receipts and the ability to link with your cell phone provided to track calls. It also schedules and posts social updates to Twitter, Linkedin, Facebook and other platforms. Because it’s designed for individual or very small team use, it’s easy to use and a user can efficiently run their entire day from the app.

Uberconference

uberconference
When it comes to phone conferences, meetings and client phone calls, Jessica Oman, Planner-in-Chief at Renegade Planner loves Uberconference.

She says, “As a business plan writer who in 2014 made the transition from leasing an office to working from home, I can say that Skype and Uberconference are the tools I can’t live without! Uberconference is especially wonderful because it easily allows me to record calls, use hold music, and connect with people who either call in from computer or phone. It allows me to have a 1-800 number too. It’s like having a virtual assistant to manage my calls and I love the professional feel of the service.

My Tomatoes

mytomatoes
And finally, a quick and simple idea – a timer. Jessica Velasco, Senior Editor at Chargebacks911 works exclusively from home. She uses the Pomodoro technique of time management: work for 25 minutes, take a 5 minute break, work for 25 more minutes.

She says, “I use My Tomatoes. I like this particular timer because the countdown is shown in my browser tab. I can be working on other things and quickly glance over to see how much time is left. I like to race the clock; see how much I can get accomplished before the timer goes off. I also use it to limit my unproductive moments. Fun things like checking social media must end with the timer dings.”

Got a favorite?

All of these tools are yours for the taking, so why not give them all a shot? Then, even if you’re wearing your most comfortable pants (sweat pants*) – with all of the right tools, you can run your business from home like a boss, and give people the impression that you probably showered today.

*no pants

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Business Entrepreneur

6 entrepreneurial tools for startup productivity

(ENTREPRENEUR NEWS) Whether you’re a small business or startup, improving efficiency means more money and less stress. Here are six tools to help do just that!

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Truly great entrepreneurs are also well organized and know which tools will help them see their ideas to fruition.

That can be key for getting a startup business off the ground. Good ideas and a strong entrepreneurial spirit aren’t always enough on their own. Sometimes you need the right mix of technology and tools to keep the more mundane and tedious tasks from bogging down your efforts.

Here are six tools almost any entrepreneur can use to help keep productivity high when starting a new business:

Lawtrades: For legal help

For most entrepreneurs, it’s not the most exciting thing in the world, but making sure you have your legal ducks in a row is important for any startup. Lawtrades helps with that while trying to keep costs down — music to the ears of any startup business owner.

The service is a legal marketplace of sorts designed specifically for startups and entrepreneurs. It connects business owners with legal professionals that it claims don’t charge “bloated law firm hourly rates.”

Lawtrades offers a number of services, including business formation, employment and labor, contracts and agreements and intellectual property.

Do: For productive meetings

Anyone who has started a business knows that it doesn’t happen without a multitude of meetings. Do is a service that can help make your meetings productive so you can waste as little time as possible.

The app allows you to plan and share an agenda to make sure everyone is on the same page. Other features include the ability to track accountability by showing you which points and/or tasks have been covered.

1Password: For easy password management

Starting a new business likely means starting and managing lots of online accounts. The 1Password app from AgileBits helps you save time by remembering passwords and other information for you.

The app helps you generate strong and unique passwords for your many accounts, and secures them behind one safe password known only by you. The app doesn’t only work for passwords — it can also help remember other information such as credit card numbers, safe combinations or street addresses.

Kanbanize: For product development

If your startup involves a specific product or set of products, Kanbanize helps you develop them with your team without bogging down the process. The software allows you to post and share boards that include product information and progress, and you can choose which people see which information.

For example, if you want to update investors on the status of your product development, you can share certain boards with stakeholders and no one else.

Evernote: For organization

There are many applications available that aim to help team productivity, but Evernote is one of the best.

The software allows you to collaborate with your team all within one workplace, keeping projects and other work together. You can also give feedback on ideas and share notes while syncing the data across computers and phones.

There are many other features as well, including in-app chat functionality and integration with Google Drive.

TaskHusky: For web development

Almost any new business will want some sort of business, but a staff of web designers and developers isn’t always an option for startups. That’s where TaskHusky comes in.

TaskHusky is an on-demand service for small businesses that need help with one-off tasks with the Shopify, Bigcommerce or WordPress platforms. The company has a simple three-step process: You create a task and pre-pay, a TaskHusky team member is assigned the task and gets to work and the task is completed and is sent back for your approval.

The takeaway:

Smart entrepreneurs understand they can’t get everything done on their own when it comes to starting a new business. These six tools may not be everything you need to launch and maintain a startup, but they will go a long way to helping you keep productivity at a high level.

#productivity

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