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I recently talked to an operator who really wanted to know how the industry was doing.
I shared a lot of the data, including that we just marked over 2,000 restaurants closed in our database for the first six months of the year. That's on pace to be worse than what happened during the first year of COVID.
It is still to be determined whether the trend continues or not for the next six months.
As the conversation went on, I said that a lot of places are struggling right now, and I was sorry to share this bad news with him. His response to me was, “Actually that really helps because I have been fearful this is me, and I’ve been asking myself what I am doing wrong.”
It was interesting to watch the relief on his face that this is a broader issue around him and not just his own profit and loss.
If you are also feeling this way, just remember it is likely not you. It's the economy of the industry and the Washington restaurant climate.
This doesn't mean you shouldn't look in the mirror and try to make changes. Yes, we're in a tough time. Yes, it's unique to Washington.
In a recent National Restaurant Association survey of association executives, Washington and Oregon were the only two state associations reporting a decline in the number of restaurants.
While these unique challenges may feel out of your control, there are things you can do.
Sun Tzu in the Art of War said, “In the midst of chaos, there is also opportunity.”
Those restaurants that are closing undoubtedly had great employees who are now seeking work. Can you contact the owners, ask about their stars and help them get re-employed in the industry? You can keep them engaged, raise the quality of service in the workforce and in your business.
Maybe they had equipment that could replace your aging assets or give you the opportunity to try something you haven't tried.
Their closures give you the opportunity to reassess the market around you. If you have a Mexican restaurant and the closures were three other Mexican restaurants, this gives you the opportunity to really become the prime location for Mexican food in your area.
If the specialty next door was ribs and they attracted guests, maybe it's an opportunity for you to negotiate with the previous owner to continue their legacy by selling ribs at your location. It’s a chance to market to their old customers and to grow your customer base.
These simple ideas may not apply to you, but my broader point is yes, times are hard. No, it's not necessarily the fault of your management, but this is an opportunity. What are you going to do with it?
How can we help you seek these opportunities as your association?
I urge you to become really good friends with your territory manager. Share with them what you're seeking. Talk to them on a regular basis. If they know someone who's closing, or if you know someone who's closing and you want to get in contact with them, more than likely your territory manager may have their information.
The other thing you could do is use this as an opportunity to leverage the reality of today's industry with your landlord and your suppliers.
The industry in Washington is certainly looking for a reset. We’re here to assist you with those efforts.
As always, it’s an honor to serve you. |
