Monday, January 9, 2012

What Would You Do?

This post is about the restaurant. We started it back in March of 2010.  I will say in the beginning we were putting supplies and food on a credit card, but we quit doing that within the first few months of the store being open and just go paycheck to paycheck.  Our hopes were to bring in an extra grand or two a month to help pay for the costs of having a new baby.  I will admit there haven't been too many weeks that we were able to pocket much money.  In the beginning we were because JJ was the only one working, we didn't have labor costs.  We did however have a monthly apartment rent payment but that wasn't much.  Then as we got closer to my due date, he spent less and less time there, and had hired 3 employees to work.  Now he's down there two days a week, but he just stays in the kitchen cooking - he always has another employee there actually running the restaurant.  So what it boils down to is we are paying approximately 68 hours at minimum wage in MO which is $7.25, so that comes out to approximately $500 a week.  Then we spend anywhere between $500 and $800 a week on food.  So those two combined (on the high end) equals $1,300.  Now going into the winter months, we are going to be lucky if we break even every week.
  • Here are the key things to think about.  The drive is about 180 miles round trip, so the miles on our cars are quickly adding up
  • Gas alone driving down and back is roughly $35
  • Each day the sitter watches Chloe, it's $30
At this point, we feel like we have three options, and I'm just not sure which one is the best.

Option 1: JJ could be down there three days a week instead of two. Two of those days he would work alone so that would save us $145 a week in labor.  That's the good.  The bad is those would be REALLY long days for him.  He would have to be out of the house by 8 (which is unheard of for him), and he wouldn't get home until 10 at night.  We would have to pay $35 for gas and $30 for the sitter.  So all said and done we are really only saving around $80.  Also, the winter months are when JJ's likelihood of working at the railroad increases.  So that puts a wrinkle in things too.  Is it worth it?

Option 2:  Close the restaurant down during the winter months.  Like I said before, the winter is when JJ has to work more.  He hasn't actually gotten called into work for months, but that will all change once the weather gets cold and it starts to snow.  Also, we've already seen a decrease in sales at the restaurant because a lot of people walk to the store and they don't want to get out in crappy weather.  The good is that we wouldn't have to worry with driving back and forth in crappy weather, and possibly coming out of pocket some weeks when sales are low.  The bad is that we could, and most likely would, lose our employees.  So when we would open back up in the spring, we'd be starting from scratch again. 

Option 3:  Close the restaurant down for good.  It really has been fun, and JJ really does like to cook.  But I know on multiple occasions he has gotten burned out.  Whether it was being away from home, dealing with employee drama, not having enough food to keep up with business, etc.  I think it would be a huge stress reliever for him.  I know he will miss going down there though and the friends he's made, as will I.  It's been fun to "have a restaurant" for the past year.  And it's not like we would be missing out on the extra income; hell it would probably SAVE us money in the long run.

I don't mean to make it sound like we've already decided which way we are going to go, but it kind of sounds that way as I write it all out.  What would you do in this situation?  I'm open for all suggestions!

7 comments:

  1. Hmmm. That is really tough sweetie! I wish there was a way for the restaurant to be closer, to make more money, and for you to get some great employees to run it for you with little effort. I know wishful thinking.
    Maybe I would close it for the winter and then see how you feel about opening it back up in the spring? You might find you are okay with the idea of it being closed.

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  2. Yikes, that is a tough situation to be in! Sounds to me from the options you've laid out, #3 would be best?
    You don't want to put yourself in a bad financial place it sounds like, especially since you've recognized that winter is the slower time.

    JJ being stressed out and working long hours away from you and Chloe will definitely put a strain on your relationship too and that is never good.

    Is there a location closer to you that you could start up a new restaurant and could get more business so you could afford to hire employees and make more $?

    I guess if it was DH and I, we would have to do whatever put us in the best financial situation. We want to have more kids and are trying to pay off our students loans and be debt free, so whatever allowed us to do that would be our decision.

    Tough, tough situation. I think you guys are doing the right thing by going over your options. I wish you the best of luck with your decision even though it sucks having to make one!

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  3. I'd either close up for good or at least close up for the winter. It doesn't sound like the income vs. stress is working in your favor right now. Could you close down for the winter and then make your final choice come spring/summer?

    Good luck!

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  4. I agree with the others - I would definitely shut down for the winter months. Maybe be open like April - September or something like that. Honestly and this is hard because I don't know yall's exact financial situation, but running a business takes time to make it work and see if it will pan out, a year really isn't that long in the grand scheme, especially when yall have had so much happen/change in the past year :)

    I would shut down for now though for sure. And honestly, if yall think you could swing it, set a date to reopen in April/May for the summer months. I think if you reevaluate you'll end up not reopening at all. There are quite a few spots about Louisville that are only open for the warm months - hopefully you could get some college kids to come in as employees who don't need something besides a few months of the year and if its a good working relationship, hopefully they'd come back each year while in college. Is there a culinary school around yall? I know a friend, KJPugs on the blogs, whose hubs is in school and he has to have a semester of internship at a restaurant. Just a thought :)

    My two cents is shut down for winter, but don't give up on it completely yet. But again, only you and JJ can figure out what is best for your family!! Good luck!!

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  5. That is so hard. My family has owned a restaurant before and though it is something to be very proud of, it is a ton of work and I don't know how you have even done it at this point with a newborn!
    My parents were always at theirs and I didn't care, I was in high school, but my little brother was 5 at the time and it was really hard on him.
    I would go ahead and or sell it.
    Kudos to you for opening a restaurant and making it work for as long as you have, especially with the distance!

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  6. It depends on the type of clientele you have (repeat locals? passers-by?)... in the town I'm in, a restaurant tried closing for the winter and only staying open for the busier summer tourist season and it pissed off the locals who all quit frequenting it in the summer too then... which made them go under. Could that happen to you?

    Depends on how much JJ wants to be a restaurant owner as well.

    Good luck, whatever you decide!

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  7. My DH is in food service sales & I understand what a hard cycle it is right now... Food prices are high & he has to make a living on commission, owners are having to find ways to compensate too. In our experience the only restaurants in the southeast that turn a profit are those where the owners are there the entire time and I can't imagine that life with a baby! Hard decisions but if you have other sources of income that work out better right now, restaurant business is not that great right now... Good luck with your decision making!

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