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RESTAURANT REALTY ASSOCIATES NEWSLETTER 

SO YOU WANT TO OWN A RESTAURANT? – A PROFILE OF A SUCCESSFUL OPERATOR. 

The restaurant operator who succeeds in generating a stable, consistently profitable operation generally shows the following characteristics: 

• Is passionate and is single mindedly focused on guest service
• Thoroughly understands the aspects of the retail, manufacturing and service industries
• Has a significant vision, depth of knowledge and technical competence
• Demands tight controls and sound accounting practices
• Requires daily information to keep on top of the operation
• Responds with appropriate action in a timely manner
• Knows how to develop and implement restaurant marketing plans
• Is effective in the complex areas of staff training and productivity
• Takes a real delight in the professional development of the staff
• Has high standards of quality and performance
• Is able to deal with a wide variety of unexpected challenges
• Is profit oriented and is willing to spend money to make money
• Maintains a perspective on the operation, its place within the market and its potential for improvement
• Genuinely enjoys the restaurant business
• Is able to maintain a sense of humor and positive attitude

TYPES OF LIQUOR LICENSES IN NEW JERSEY 

For many years people in New Jersey have referred to licenses as either “C” or Broad “C” liquor licenses. The fact is, liquor licenses types are currently identified by an identification number that is issued by the State. It consists of a 12-digit number divided into a 4 groups. A sample license number would look like this: 1406-33-001-001.  The first 4 numbers denote the county and the town, the second two numbers denote the license type, the third group is for the town’s use and the last group denotes how many times the license has been transferred. 

The second group of numbers which denotes the type of license can fall into any of the nine following types: 

31 – Club – Sell any alcoholic beverage but only for immediate consumption on the licenses premises and only to bona fide members and their guests. 

32 – Plenary Retail Consumption License with Broad Package Privileges

Sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle and also to sell any alcoholic beverages in original containers for consumption off the licenses premises. You can have both a restaurant and a package store with the same license. FORMERLY BROAD “C” 

33 – Plenary Retail Consumption License – Sell any alcoholic beverages for consumption on the licensed premises by the glass or other open receptacle and also to sell any alcoholic beverages in original containers for consumption off the licensed premises. Restaurant is permitted but not a package store with displays. FORMERLY A “C” 

36 - Plenary Retail Consumption License (Hotel/Motel Exception) – Same as “33” with the exception of the issue to a Hotel/Motel of 50 to 100 or more rooms only.

37 - Plenary Retail Consumption –  This license is issued to a non-profit Musical or Theatre Corporation Pursuant to the Provision of the N.J.S.A.

34 – Seasonal Retail Consumption ( May 1 through November 14) – Same as a “33” but only for Summer season.

35 - Seasonal Retail Consumption License ( Nov. 15 to April 30) – Same as “33” but only for Winter season

43 - Limited Retail Distribution License – Sell any unchilled, brewed, malt alcoholic beverage in quantities of not less that seventy-two fluid ounces for consumption off the licensed premises; but only in original containers. 

44 - Retail Distribution License – Sell any alcoholic beverage for consumption off the licensed premises, but only in original containers. Liquor Store

CURRENT UNITED STATES RESTAURANT STATISTICS 

RESTAURANT FORECAST FOR 2011

For the first time in four years there will actually be real industry growth in 2011.

The nation’s 960,000 restaurants will see sales increases of 3.1% for 2011, or inflation-adjusted terms of 1.1%.

Real disposable income rose in 2010 which will improve restaurant sales, however a caution needs to be considered in the event gasoline prices rise, which will dampen the restaurant industry growth.

RESTAURANT INDUSTRY SALES SINCE 1970

1970 - $42.8B   1980 - $119.6B     1990 - $239.3B    2000 - $379B   2011 - $604.2B

Sales at full-service restaurants are projected to reach $194.6 B in 2011, an increase of 3.1% in current dollars over 2010 and 0.7% in real growth.

The quick service restaurant segment is expected to post slightly stronger sales growth than the full-service segment. Quick service restaurants are expected to post sales of $167.7 B this year, a gain of 3.3% over 2010 or 1.7% in real growth

Wholesale food prices are expected to rise 3.3% down from last year’s 4.9%.

Restaurant job growth will increase in 2011. In 2010, 188,000 new jobs were added. In 2011 jobs are expected to grow by 2.4% compared with 1.8% expected for the entire economy. Restaurants are the nation’s second largest employer behind the health care industry with 12.8 million employees. One out of every 10 people employed will be working in the restaurant industry this year.

(Thanks Nations Restaurant News for the information)