What modern restaurant investors want
Plus: Restaurant owners look forward to post-election life
• public
We're talking rent, reviews and the enduring optimism of small businesses. But first: Will diners really start wearing AirPods to hold conversations at loud restaurants? Find a quiet spot and pull up a chair for the latest edition of The Prep.
On the menu:
đź’ This is how restaurants are enticing investors
đź’ Restaurant operators are excited for post-election life
đź’ What restaurants can learn from online reviews
đź’ Mentions of mocktails are up
What we’re keeping an eye on: The swipe-fee fight. Illinois is set to ban swipe fees on tax and tips for credit card transactions on July 1. Other states are eyeing similar bans. Consumers and restaurants seem to love the idea. Banks and the Biden administration are opposed.
What we’re following: Giorgio Armani's restaurant group on Instagram, where images of plated meals and restaurant interiors mimic the elegance of the fashion designer's garments. Armani Restaurants is set to open a new location in New York City soon.
Plus: Eminem celebrated his birthday with a cake that looked like a huge plate of (mom’s) spaghetti and meatballs. Austin baker Hannah Brockert details how she came up with the concoction in Eater.
Optimism over rent woes
According to Alignable's Revenue & Rent Report, 43% of restaurant business renters could not make their rent payments in September. That was actually an improvement over August, when 45% of restaurant owners couldn't pay their rent. Unsurprisingly, 57% of the surveyed 3,482 small business owners in various industries said rent had gone up compared with six months ago.
However, the same percentage of business owners expected growth in the fourth quarter, once again proving how unshakable small business optimism is. (Restaurant Business)
Modern restaurant investors aren’t (just) in it for the money
Crowdsourced restaurant investing has become more popular and restaurants are getting creative with incentives. Rather than offering traditional returns on investments, investors are being offered unique rewards like their own cocktail creations or their likeness painted on a restaurant wall. For Allegretto al Forno, a new restaurant set to open in Brooklyn, these alternative investment incentives are, in part, a way to create local support for a restaurant.
“I want our Williamsburg neighbors to have a chance to say they have a stake in this place,” restaurateur John Winterman told Forbes. “That they want this corner to be beautiful and fun and want others to come here.” (The Strong Buzz)
Restaurant execs pine for post-election life
Like many Americans, businesses are eagerly awaiting the end of the election season. A new survey from Marcum and Hofstra University found that a majority of CEOs believe political uncertainty is impacting their business the most right now. That concern could fade a bit once a candidate is sworn in this January. Although restaurant executives are among those looking forward to post-election life, a new president won’t solve all concerns.
“I do think once the election cycle ends, certain factors that cause uncertainty will dissipate. However, unless inflation and the perceived value of the dollar continues to improve, I feel higher wages and earnings alone won't drive more traffic to restaurants, as those increased wages really reflect less buying power,” says Jonathan Gillespie of Adalina restaurant in Chicago. (Nation's Restaurant News)
"You can make a mistake but make it once. You have to learn; you have to get better."
- Avi Goren, cofounder and CEO of the hospitality technology company Marqii, on how to use customer reviews to your advantage. (🎧A Deeper Dive)
đź’ Hybrid workers drive fast food sales
đź’ It was a tough summer for beer sales
đź’ L.A. chef Travis Lett is back with a Japanese izakaya
💠McDonald’s didn’t need to give Trump permission to serve fries
500%
Growth in “mocktail” mentions on CashApp since 2020 (CashApp)
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