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Turning a dying cafe around...

3K views 12 replies 7 participants last post by  chefwriter 
#1 ·
I’ve been a corporate caterer for the past twenty years. I started with a 30K debt and grew it to a very successful operation. Family and health issues have recently caused me to sell out to my partner of 18 years. After four years, all is well. My wife is in remission, and I’ve had the necessary surgery to help me get back on my feet. I’m 61, but not ready for retirement yet.

I’ve recently been introduced to an owner of a struggling cafe close to downtown of a metropolitan city. This area is filled with both university students and affluent couples, some with kids. There’s money to be made. George (about 40) had bought this tiny shop ten months ago, it has an 800 sq. Ft. Kitchen and business has done nothing but decline. His offerings besides a good cup of coffee include soups, salads and sandwiches geared to the healthier types. There’s a Subway Sandwich shop four stores away and a rundown bar with a huge patio next door.

George asked me for help as well as an opportunity to partner up with him. He has no outstanding debts and has recently been dipping into his personal funds to stay afloat. He’s a straightforward guy but has no real direction. I feel ready to get back to running a place, and I believe that I can put this place on the map.

I welcome any thoughts, questions and comments.
Thanks for reading this post.
 
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#3 ·
Walk around the neighborhood and ask people where to get a good lunch, as if you were new to the area. If they don't mention the cafe, say you walked by that place and wondered if it was worth while. Collect as many opinions as you can without being too obvious.
I'll suggest it's an obvious problem that George is unaware of, ignoring or causing. Examples might be prices too high/poor value, place doesn't appear clean, Food is skimpy or poor quality, service too slow or rude, the wait is too long for a table, wait too long for food, hours aren't posted, hours are inconsistent, George doesn't shave, George doesn't greet customers and say Thank You when they leave, place doesn't appear open. Place is open at the wrong hours, closes early, opens too late. Tables and chairs are wobbly and uncomfortable or too crowded. George has a family member working the front of the house and they are lazy, rude, too talkative, unprofessional and driving away business. The cafe hasn't been painted in years and looks really rundown. The signage out front is poor quality and not welcoming. The menu is geared to healthier types but nothing available for the general public and not enough healthy types to support the place.
Ask a friend George hasn't met to go buy a sandwich and soup. Do that two or three times with different people on different days of the week. Listen to what their experience is like.
I wouldn't worry about Subway or any other place nearby. If the cafe offers a great lunch at a fair price in a pleasant atmosphere it will find it's own customer base. Some part of the formula is missing.
For the heck of it, I'll ask you to PM me the address and I can google it to see it from the outside.
Anyway, if you decide to pursue this, make sure George has a sales tax account so he's not dipping in to that as well.
 
#4 ·
Walk around the neighborhood and ask people where to get a good lunch, as if you were new to the area. If they don't mention the cafe, say you walked by that place and wondered if it was worth while. Collect as many opinions as you can without being too obvious.
I'll suggest it's an obvious problem that George is unaware of, ignoring or causing. Examples might be prices too high/poor value, place doesn't appear clean, Food is skimpy or poor quality, service too slow or rude, the wait is too long for a table, wait too long for food, hours aren't posted, hours are inconsistent, George doesn't shave, George doesn't greet customers and say Thank You when they leave, place doesn't appear open. Place is open at the wrong hours, closes early, opens too late. Tables and chairs are wobbly and uncomfortable or too crowded. George has a family member working the front of the house and they are lazy, rude, too talkative, unprofessional and driving away business. The cafe hasn't been painted in years and looks really rundown. The signage out front is poor quality and not welcoming. The menu is geared to healthier types but nothing available for the general public and not enough healthy types to support the place.
Ask a friend George hasn't met to go buy a sandwich and soup. Do that two or three times with different people on different days of the week. Listen to what their experience is like.
I wouldn't worry about Subway or any other place nearby. If the cafe offers a great lunch at a fair price in a pleasant atmosphere it will find it's own customer base. Some part of the formula is missing.
For the heck of it, I'll ask you to PM me the address and I can google it to see it from the outside.
Anyway, if you decide to pursue this, make sure George has a sales tax account so he's not dipping in to that as well.
That is some great advice. I think you covered most everything.
 
#8 ·
I'm thinking the fact that there is no seating is the most glaring issue. I'm not taking my family to a cafe where we won't be able to sit down and enjoy the meal. Is there any space for an outside patio area or anything similar? I know the kitchen is small but could the building be organized in a way that could create additional seating without compromising kitchen efficiency too much?
 
#9 ·
I've been a corporate caterer for the past twenty years. I started with a 30K debt and grew it to a very successful operation. Family and health issues have recently caused me to sell out to my partner of 18 years. After four years, all is well. My wife is in remission, and I've had the necessary surgery to help me get back on my feet. I'm 61, but not ready for retirement yet.

I've recently been introduced to an owner of a struggling cafe close to downtown of a metropolitan city. This area is filled with both university students and affluent couples, some with kids. There's money to be made. George (about 40) had bought this tiny shop ten months ago, it has an 800 sq. Ft. Kitchen and business has done nothing but decline. His offerings besides a good cup of coffee include soups, salads and sandwiches geared to the healthier types. There's a Subway Sandwich shop four stores away and a rundown bar with a huge patio next door.

George asked me for help as well as an opportunity to partner up with him. He has no outstanding debts and has recently been dipping into his personal funds to stay afloat. He's a straightforward guy but has no real direction. I feel ready to get back to running a place, and I believe that I can put this place on the map.

I welcome any thoughts, questions and comments.
Thanks for reading this post.
There is prospect here as you've said, the key is to make it as urbane and welcoming to a diverse customer base as best as you can. Best of luck!
 
#10 ·
I believe that the key to success here may be to go exclusively with take out.
The traffic going by this shop is phenomenal with a flow of commuters and available (however limited) parking. We can offer a superior sandwich and salad fare far beyond any chain can offer. Different, better, tastier. Competing with subway is not the intention. Over and throughout my youth I’ve been eager to introduce the Chicago italian beef sandwich to the folks of this Canadian city. Mostly dominated by italian breaded veal, how can I get my message across and have people even go out of their way to come to the shop?
Much thanks to you all, from all over for your time and considerations.
 
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