Trying to find good news in today’s economic environment is not easy. The financial quagmire is squeezing individuals and businesses alike as we enter 2009 with more questions and concerns than answers and hope. The first 100 days of the new presidency of Barack Obama will give us some clues as to the length of this recession that we learned “officially” in December has been with us since December 2007. Our expertise is not in economics … but it is more upsetting that even the experts don’t appear to be on top of their game.
Foodservice Monthly and the Mid-Atlantic are fortunate to have the resources to help us through these devil ish times. Recently I spent an afternoon talking to the principals of Restaurant Brokers and Developers at the Varsity Grille in College Park. Joe Spinelli, Jim McGinnis and Mike Meliker offered some excellent insight into the opportunities that exist in today’s market. Each month ion 2009 we will go to the best
minds of the business as we examine the buying, selling and managing restaurants today.
Looking ahead, In February we will talk to Jerry Blumenthal from Business and Commercial Ventures for his take on the market. Foodservice Monthly will also feature a look inside Big Steak Management to learn how Steve de Castro’s successful Ruth’s Chris Steakhouses are working to give customers what they want … and can afford. Veteran real estate dealmaker Bill Miller will take our readers through real estate 101 … finding the right location, negotiating the deal and the basics of understanding the lease. This month he will outline the series that will continue as a regular column in Foodservice Monthly. Bill penned a similar column for me at Restaurant Digest and I’ve been trying for six years to bring his knowledge to our readers.
Restaurant Brokers and Developers only do food deals …. it is their only business. Right away, Joe Spinelli tells me, “I’ve got more development projects in the works than in any recent time.” He goes on to explain that there are people who have capital that are looking for opportunities to get into the restaurant business.” Mike Meliker says, “The phone is ringing.”
McGinnis explained that for the first time in recent memory, “Landlords are calling and asking what do you have.” In the current economy, tight money for restaurant investment is not largely different than any other time. Spinelli said that for the first time in recent memory, landlords are willing to take on a restaurant by making improvements on buildings to convert them for a restaurant build out.
Spinelli and McGinnis point to the fast-casual and sports bars as the key areas of interest in the market. People are still eating out, but are more likely to be spending less in less formal eateries. They think the best deals are to buy an existing restaurant. The deal is sweetened if the owner is able to finance at least part of the deal for the right buyer.
Meliker, Spinelli and McGinnis were unanimous in their upbeat take on opportunities in the marketplace. Spinelli concluded with his assessment, “The entrepreneurial spirit is still alive.” There are deals to be made for the right buyers and sellers.
This article was originally published in print in Food Service Monthly in the Economy section.
