Restaurant bankruptcies rise - what's the solution?
Plus: The power of the perfect restaurant playlist.
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We've had a lot of restaurant bankruptcy news to digest lately, but we rarely hear about what happens next. Today we're unpacking a story that illustrates the industry's resilience. Plus, check out the restaurant owner who is defending the tip-wage system to Congress. Pull up a chair for the latest edition of The Prep.
On the menu:
💠 Create the perfect restaurant playlist
💠 Take a break from political news with "Bake Off"
💠 Here's why soda sales are going flat
💠 And the GOAT is opening a restaurant
Life after bankruptcy for Maine restaurant owners
Vietnamese restaurant Công Tử Bột of Portland, Maine, was highlighted in the "New York Times" in June, but just a few months earlier, it had filed for bankruptcy. Owner Vien Dobui says the pandemic and Restaurant Revitalization Fund lawsuits helped push the restaurant into bankruptcy, but luck and family helped the restaurant make it out.
"We had a lot of privileges. Who can put up money for a lawyer when you're already struggling with so many other things? And not every restaurant is in a position to get national press. It's not lost on me how incredibly lucky we are. But I know this is something more restaurants are considering — our lawyer said in the last five years they only had two or three restaurant cases, and now they have over 20," Dobui said. (Eater: Pre Shift)
The delicate art of music on the menu
While it used to be an afterthought, restaurant music today is an important part of establishing a brand and creating a vibe. Today, restaurants have an overwhelming amount of music options and everyone has their own approach (though so many restaurants play “This Must Be the Place” by the Talking Heads). Some restaurants go DIY, studying beats per minute and considering how lyrics might impact an experience, while others enlist companies like Gray V to create the perfect playlist.
“They put so much attention to detail in the design and the menu and the space that they don’t want to shortchange their customers by playing music that feels awful,” said Alec DeRuggiero, the head music supervisor of Gray V. (New York Times)
Struggling restaurants in L.A. speak out
So far this year, 75 restaurants have closed in L.A. — that’s more closures than all of last year. LAist spoke to four restaurants still standing (but struggling) about what is going wrong for restaurants and what can be done.
“I would like to see a small business tax plan that really takes care of small businesses," said Nicole Rucker, owner of Fat & Flour. "I would like to see money become available to small businesses that are not from online bank sources that charge exorbitant interest rates. Because something that changed with the pandemic is that it is more and more difficult for truly small businesses.” (LAist)
“It was a rough transition for some brands, but the sky didn’t fall as many in the industry had warned. Patrons adjusted, as did the restaurants they frequented. And here we are today with indoor smoking virtually gone from restaurants. If you were to ask a server if you could light up a Marlboro with your dessert and coffee, they’d likely be too startled to take the request seriously."
- Perspective from Restaurant Business’ Peter Romeo on how restaurant smoking bans didn’t actually destroy restaurants
💠 Olympian Simone Biles is opening a restaurant
💠 McDonald’s kiosks were rolled out 25 years ago
💠 Can AI really help run a restaurant?
4.9%
Quarterly soda sale decrease from Q2 2024 to Q2 2023 (Toast Benchmarking)
What we’re excited to watch: The latest season of the Great British Bake Off, which begins September 27. The feel-good reality show is the perfect counterprogramming for these tense political times.
What we’re reading: Stephen and Evie Colbert’s cookbook, "Does This Taste Funny? Recipes Our Family Loves." The late-night host and his wife were first inspired to write a cookbook after working together during the pandemic to create "The Late Show with Stephen Colbert" from their home. The couple, though, is not claiming to be chefs. “It had to be a personal story because we’re not professional cooks. It’s all about our personal experience,” Stephen Colbert said.
What we’re following: The latest ‘no tax on tips’ news, which includes the introduction of the aptly named Tipped Income Protection and Support (TIPS) Act. This bill would end the income tax on gratuities tipped workers receive and eliminate the subminimum wage for tipped workers across the United States.
Written By: Gloria Dawson
Edited By: Katie Parsons