I'm going to play devil's advocate here, because someone needs to do it, and I’m hoping to stimulate a discussion because it might be fruitful in illustrating some of the issues involved with business start-ups and shut-downs.
Read the posting and comments here if you’re coming late to the conversation: Treet's Bakery Cafe closes.
As you’ll see in the comments, several people have asked what they might be able to do to keep Treet’s Bakery Café open. Imagine, then, that enough people pledge financial support to enable Treet's to reappear next week.
Does it reappear in the same incarnation?
Does it reappear without a thorough analysis of the plan of operation?
Does it reappear as Treet's even if Teresa somehow isn't involved?
Does it reappear as something different, with a modified concept?
In short, if investors are to be recruited, what questions are they prepared to ask?
Is there a limit to their tolerance for potential answers?
Don't take these questions the wrong way. Rest assured, I'm not trying to be a Scrooge in all this. I had my criticisms, but I like Teresa and I liked Treet’s, and we patronized it as often as practicable.
The ironic thing is that every failed restaurant in history had its fans, its regulars, and the people who liked it very much. However, it still failed. Why? The trick is to determine the reason why the restaurant failed, to avoid mistakes, to refine the product if necessary, and to find a better way of getting the word out.
Or, conversely, if these questions can't be answered, there's little sense in mobilizing to inject life into the project.
What do you think?
What are the questions that you would need answered prior to committing capital to a restaurant operator?
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13 comments:
I think Teresa's comment about downtown sums up the biggest part of a new business (or an old one) staying afloat. You've got to have a vibrant downtown. People need to have multiple reasons to be there day and night. Although it has to start somewhere, if you have a smattering of just 1 or 2 new places opening up, it is not enough.
That's what the new administration has pledged to change--Mayor England has said he will work to attract new businesses to downtown. I would like to hear what the strategies for this will be, and hopefully he will address this in his 'State of the City' address in February.
If I counted correctly, you asked 6 questions. Before 5 of them can be answered, question 2 would have to be dealt with.
"Does it reappear without a thorough analysis of the plan of operation?"
First things, first. IMO, it would take at least two skilled people to do the analysis. One with restaurant management experience and the other with financial experience--bookkeeping, cash flow, debt service, etc.
I am sorry to learn that Treet's closed. I wish her nothing but the best for the future. Treet states economics and lack of traffic downtown as some of the resons for closing her business. I recall another business that moved from downtown and is doing well in it's new location.
Ermines closed and moved to, current location, Charlestown Road and Slate Run Road strip mall. The business is still open.
The questions I would ask is what did your business plan show about the customer base you were trying to attract? Could the customer base sustain your business? Was the downtown location the best place to start your business compare with other location you considered? Finally, will your business be attractive enough to bring people downtown?
I hope with the the YMCA opening up later this year will spark a revival in Downtown New Albany so business like Treet's can survive.
Maury
Exactly the sort of discussion I had in mind.
I'd submit that unless a like business is very different and/or very good, it makes little sense to locate downtown in the first place.
We currently have four restaurants (counting Ninny's, Tommy's, South Side and Lancaster Cafe) doing essentially the same food.
Each probably would say: "But people down here don't want (for example) Algerian cuisine."
Perhaps not ... now, but to me, Algerian's the only way to go. There may be fewer fans of Algerian, but they'll not be split four (or more) ways -- and Louisvillians will come for Algerian.
Instead, everyone who comes downtown is terrified to tack toward a higher common denominator. That, to me, is the reason they struggle.
In my book, entrepreneurs in transitional areas like downtown must start from the position that they're going to change the way people think, period.
Country-fried steak simply doesn't do that. It also doesn't create traffic. Creativity creates traffic.
This isn;t a knock. It's food for thought.
I enjoyed sitting by the window in Treets. Working in proximity to the restaurant also means I've walked through the neighborhood a great deal.
What is striking is the fact that that particular stretch seems to be a wasteland of empty buildings. The biggest problem with Treets was that it was never in the center of activity. It was also far enough away from many offices that one probably would choose to drive there. Sadly, once people get in the car, the array of options opens way up.
We need businesses downtown. We need people to have a reason to come downtown. Unfortunately, I can only eat in one place each day or I'd be willing to keep them all in business!
Roger, why not ask our new Deputy Mayor of community development Carl Malysz to weigh in on this discussion?
What about the planned winery on Pearl Street? Is it still on course? If so, I wonder if food will be served there. In either event, I can envision that as being a nice attraction for downtown.
As far as I know, the winery's still on course. I'm not sure what the projection is. They will be doing some sort of food.
EW: I'm sure he'd have something to say about the topic. My object lies closer to having us all think about the many topics attached to something that might seem simple, but isn't.
Also, as usual, I'm fishin'.
Once, just once, wouldn't it be refreshing if our first action (meaning, do something) was to band together to help our neighbors (remember the final scene in It's A Wonderful Life?), rather than using their demise as a springboard for pseudo-intellectual debate?
Sometimes, the answer really is simple.
I have to agree that most of the comments on here are right on target.
Downtown is nice, and it is ok to pass time while waiting for my daughters piano lessons to come to a conclusion, But the main problem is, once five o'clock rolls around and the shops start closing (unless you are looking for furniture), you are really left with a draw downtown from Little Chef, Conners, Federal Hill, and south side.
We need variety, the antique shops are nice to browse in, but again, a lot of them close early.
The Y MAY create some traffic, but I sadly do not think it will be the shot in the arm everyone hopes it will be, the same will probably hold true about the greenway. It will be really nice, but on the average day it will not be enough to draw enough people to support many business.
We also recently lost 111 gun shop, fairly successful, it shut its doors in downtown and moved to Clarkville, where it is fairly bustling now, and added more employees.
We need variety, and not just in the menus of the eateries. Specialty shops such as dance and theater supplies, (wide open an underserved market for dance supplies, the closest it Baer Fabric in louisville) A real camera and photography shop. (not a cold unattended counter with the same run of the mill pocket digitals, A real music store a la Ear extacy type. We have to be able to appeal to a broad spectrum of consumers and retain more people passing through to the boat.
Unfortunately, I honestly feel this is the price we pay for attracting such lucrative "community partners" like Wal-mart and Meijers. They are the largest manufacturers of death nails for dependable, knowledgable, friendly locally owned shops.
Pseudo-intellectual? Not at all. What is being discussed here cuts to the free market chase: Under what circumstances would you invest in something?
That's exactly what you'd be doing by answering a call to help your neighbor in this specific case. Recall that as sad as this is, it's a business failure. It's not a kid with cancer or a house that burned down.
The assumption here is that finances were lacking, and if funding were provided, all would be well. That may be true. It also may not be true. That's a topic for sincere discussion.
Did I miss something? What's the problem with looking under the hood and seeing why the engine doesn't start? Maybe the car's out of gas. Maybe it's something else. Why not try to find out?
I have a lot respect for anyone who starts up a business, so please don't take this as a criticism of Teresa....but why should we ban together to "save" a business model that doesn't work?
I enjoyed Treet's Bakery and Cafe, but let's face it - it was neither a bakery nor a cafe, had an awkward service setup, was a little expensive for New Albany, and didn't cater to weekend dining. That had just as much to do with it failing than foot traffic downtown.
The market has spoken on this one - if the neighbors want to help reinvent the place for the sake of having a nice restaurant downtown - bravo - if not, promote the space to another investor.
If you don't mind, I'd like to comment about downtown restaurants in general. Teresa is a business neighbor and a wonderful person, and we've lost two downtown restaurants this year, and a third is hanging on.
Federal Hill Cafe has been made it, and they started when downtown was darker than it is today.
Having a restaurant in a high traffic area means it's easier to stay in business because you do have a captured audience, but it's not a recipe or a guarantee of success.
It's one thing to be a great cook or be inspired to own your business, it's another to be a good entrepreneur.
You need to identify your customer, cost, break even point, and a long term strategy. It's one thing to know that a cup of coffee only cost 4 cents to make, it's another to figure out how many $1.50 cups of coffee do you need to meet your $5,000 a month expenses.
Another element I've noticed with downtown restaurants are elevated lunch prices. A first response when cash flow is low is to raise prices to increase revenue. Unfortunately, increased pricing usually results in less revenue. You have to be aware of what the market can handle. If you want to even remotely have a chance of capturing the louisville lunch crowd, or growing new albany's, you need to be competitive.
The worse thing that can happen would be that people see the loss of these restaurants and write off downtown as potential business place.
It is possible for businesses such as treets and the bistro to return.
To say that they couldn't would be to write off downtown altogether.
As for as the city, the mayor and the "deputy mayor" are concerned, I wouldn't expect much from them. Revitalization of downtown is still going to come from private investors.
I've always wanted to run a coffee shop...
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