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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

 

UNITED STATES RESTAURANT STATISTICS

  • There are 870,000 restaurants in the U.S. (up 77% from 1972.) One out of every three people has worked in the restaurant industry at some time in their life 

  • Estimated sales for 2003 were $426.1 BILLION up 4.5% over 2002
  • On a typical day in 2003 the restaurant industry posted sales of more than $1.2 billion
  • The restaurant industry is the largest private sector employer providing 11.7 million jobs or 9% of those employed in the U.S. By 2012, the restaurant industry employment should reach 13.3 million jobs.
  • In 2003, the restaurant industry posted its 12th consecutive year of real sales growth
  • Sales at full-service restaurants are projected to exceed $153.2 billion and rise 2.1% in real terms while sales at quick-service restaurants were forecasted at $120.9 billion.
  • The industry’s direct sales equal 4% of the U.S. Gross Domestic Product
  • The restaurant industry’s economic impact in the U.S. exceeds 1 trillion dollars per year
  • Approximately 54 Billion meals are served annually in restaurants, schools and cafeterias
  • The average annual household expenditure for food away from home is more than $2,000 per year of which 52% is for dinner, 37%for lunch and 1% for breakfast

(Thanks NRA and Deloitte & Touche)

                 
                 
      RESTAURANTS WITH AVERAGE SALES OF $ 1 MILLION  
        CHECK AVERAGES      
          FULL SERVICE RESTAURANTS  
      UNDER $15/PER   $15 TO $25/PER   $25/PER  
                 
SALES                
FOOD     82.6%   76.9%   72.5%  
BEVERAGE     17.4%   23.1%   27.6%  
TOTAL SALES     100.0%   100.0%   100.0%  
                 
COST OF GOODS                
FOOD     32.7%   34.0%   32.4%  
BEVERAGE     28.6%   29.5%   30.4%  
TOTAL COST OF GOODS     31.0%   32.6%   32.1%  
                 
GROSS PROFIT     69.0%   67.4%   67.7%  
                 
OPERATING EXPENSES                
SALARIES & WAGES     31.4%   32.3%   28.6%  
EMPLOYEE BENEFITS     3.0%   2.7%   2.4%  
DIRECT OPERATING EXPENSES     5.2%   6.0%   6.8%  
MUSIC & ENTERTAINMENT     0.1%   0.2%   0.3%  
MARKETING     2.1%   1.5%   2.2%  
UTILITIES     2.9%   2.8%   2.2%  
OCCUPANCY COSTS     5.4%   5.4%   5.7%  
REPAIRS & MAINTENANCE     1.6%   1.7%   1.4%  
DEPRECIATION     1.4%   1.3%   1.5%  
OTHER EXPENSES     0.2%   0.4%   0.2%  
GENERAL & ADMINISTRATIVE     3.2%   3.3%   3.1%  
CORPORATE OVERHEAD             0.5%  
TOTAL EXPENSES     63.5%   62.9%   61.0%  
                 
INTEREST     0.6%   0.3%   0.5%  
                 
PROFIT(LOSS)     4.3%   3.6%   3.9%  
                 
DEFINITIONS                
Direct Operating Expenses     Uniforms, laundry, linens, china, cleaning supplies, utensils,
      kitchen fuel, menus & drink lists, flowers & decorations, parking
      contract cleaning, auto & ntruck expense & truck expense, etc.    
Marketing     Direct mail, promotions, gratis meals, all advertising, public relations and po  
      publicity,          
Occupancy Costs     Rent, taxes & property insurance      
General & Administrative     Non-advertising printing, posyage, telephone, data processing
      dues & subscriptions, insurance, credit card charges, dues  
      cash shortages etc.          
                 
Information provided by the 2003 Restaurant Industry Operations Report compiled by the National
Restaurant Association and Deloitte & Touche          

 

INTERESTED IN EARNING SIX FIGURES AND HAVE A THING FOR THE RESTAURANT BUSINESS ???  

Restaurant Realty Associates is looking for a few  well motivated salespeople who want to be paid in accordance with their efforts. No limit to earnings!!!  Be your own boss. No restaurant experience necessary just good work habits and ethics.  Think six-figures, it can easily happen. Send an E-Mail to info at www.buyingrestaurants.com  or call (Ronald Niesmeretlny at (732) 968-0001. A few minutes can change your life !!

BIG NEWS

SOME KEYS FOR OPERATORS WHO WANT TO EXPAND  

Restaurant Realty will assist any operator/buyer with all aspects of expanding their operation but if you want to do it yourself consider some of these very important items:   

  • Create a win-win deal with a landlord
  • Complete due diligence including demographics, traffic, parking requirements etc.
  • Verify that all permits, licenses and land entitlements are in place
  • Meet with city planners to make sure they can accomplish their plan   
  • Make sure the location will meet economic projections
  • Determine competition and what their estimated market share will be
  • Spend a couple weeks at the location to determine demographic information at all times of the day
  • Assure the positive relationship between the demographics and their customer profile
  • Make sure the location has visibility
  • Maintain the paper trail for all governmental agencies and legal documents
  • Keep fixed overhead costs down
  • Determine availability of  direct and indirect labor

Restaurant Realty is pleased to announce we have a problem????? 

Recent restaurant sales have been so brisk that our inventory of listed restaurants for sale has dwindled dramatically. We are always looking for that special restaurant, tavern, bar, deli, pizzeria or other hospitality property that we can assist in selling using our highly professional approach and seasoned staff . If your interested in learning the value of your hospitality business we will provide you a evaluation of your business. CALL US AT 732-968-0001 for additional information.

RESTAURANT REALTY HAS QUALIFIED BUYERS LOOKING FOR  

  • FIRST CLASS CATERING FACILITY IN CENTRAL NEW JERSEY WITH A MINIMUM CAPACITY OF 300, PREFER 800
  • IN TOWN PUBS AND TAVERNS WITH A STEADY GROSS, NEED A TURNKEY OPERATION
  • VACANT LAND FOR AN OLD FASHIONED DRIVE IN; MINIMUM 1.5 ACRES, ON A BUSY ROAD
  • NEED FREE STANDING RESTAURANT BUILDING, MINIMUM 6,000SF, LOTS OF PARKING – ALSO VACANT LAND OR PAD SITE TO CONSTRUCT NEW BUILDING OR A BUILD TO SUIT – HOT NEW FRANCHISE LOOKING IN NY, NJ & CONN.

CALL (732) 968-0001


Restaurant Realty Business Broker Earns National Accreditation

Ronald Niesmertelny of Restaurant Realty Associates in Warren, NJ has earned the prestigious Accredited Business Intermediary designation from the American Business Brokers Association. Mr. Nies has been a business broker and intermediary for 14 years.

To earn accreditation by the American Business Brokers Association, a candidate must meet requirements of experience, education and advanced knowledge of the many issues affecting the sale and purchase of privately held businesses.

"Mr. Nies has demonstrated outstanding knowledge, ability and leadership in our profession," said Mr. William Bruce, President of the American Business Brokers Association. "His dedication to his clients is exemplary and we are proud to see him earn his professional designation and he will continue to assist buyers and sellers in the valuation and transfer of ownership interests."

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