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Milton restaurant takes on tough economy
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Ask Paul Doster why he's starting a restaurant in this economy and he'll tell you he's just a plain ole optimist. It's because of his focus at providing a good product at reasonable prices that he's turned to opening a new store on Highway 9 in Milton, called " 'Cue."
This is his fourth endeavor in the restaurant industry, the last being "The Swallow at the Hollow" in Roswell, where he was the co-owner of the restaurant for eight years. His new business partner, Beth Gray, who hails from a Ritz-Carlton background, likes the economics of starting the restaurant during these times. She says, "We will be able to start our business for a fraction of what it would have cost a few years ago."
Despite Beth's foray into the waters, she says she's never been a big risk taker. But, the timing in the market makes a lot of a sense to her from a start up and operational stand point. They were able to secure very favorable rent from the landlord. And, they are finding a lot of deals on restaurant equipment.
Admittedly, the slow economy has affected their business model. Their original plans were pared down from a restaurant about twice the size. But, the smaller space affords them some breathing room in case of a slower than expected sales volume.
'Cue will be a barbecue restaurant with fresh local ingredients. Seasonal items will be featured from the local community, such as apple pies during the North Georgia apple season.
After years of building high end residences and experiencing the slowdown in that market, another investor, Louis Reynaud, has turned to the restaurant business for his future. His most recent venture, along with his business partner, Aaron Slattery, is in historic downtown Alpharetta. Slice Café has done well despite being opened just prior to the economic downturn.
Mr. Reynaud's second establishment will be an Irish pub, Durty Kelly's Public House, located in the Main Street Walk development on Highway 9. The décor will be authentic with much of the furnishings being purchased in Europe. The focus will not only be on food and authentic furnishings, but also entertainment. European soccer satellites will beam in the sport and Irish bands from across the nation will be showcased. He also has hopes of sponsoring a rugby team some day.
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All of these restaurateurs know the hazards of opening a restaurant. And, they've heard the failure statistics. In researching restaurants as a business, many find that it's a risky proposition. Some claim a failure rate of 90 percent within the first year. However, there seems to be little data to back up this assumption. According to an Ohio State University study of 2,439 restaurants from 2003, the failure rate instead hovers around 60 percent.
While this failure rate is high, it's certainly not an impossible hurdle. "The 90 percent figure seems to be a myth, a myth that is harmful to the restaurant industry," H.G. Parsa, associate professor of Hospitality Management, said in a released statement. "If lenders believe the myth, it makes it difficult for serious entrepreneurs to get funding to open a new restaurant or makes them pay higher interest rates."
So, despite the tough market and a difficult business, these business owners believe that if you provide a quality product at reasonable prices, their business will survive most any economic downturn, including this one.
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Brian Patton, CCIM is the founding broker of Capital Realty Advisors, LLC. The CCIM insignia is the highest obtainable commercial real estate designation in the industry. You can contact Brian through his website at: www.CapitalListings.com
Tags: Business, Milton
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