In general, how much time elapses between the moment an owner realizes his/her restaurant is in trouble and the moment the door is locked? Dave L., St. Louis
With the spate of recent closures and imminent closures (Coffee Cartel, Cardwell’s at the Plaza, Element, and another biggie to be announced soon), the question is particularly germane.
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Part of the problem is that restaurant owners tend to be both optimistic and egotistic—a bad combination when dealing with a failing business—so they’re much less willing to pull the plug than other business owners. They tend to invest heavily and get in deep. Many use their houses as bank collateral, increasing the pressure to succeed or at least stay above water. They always seem to find a reason that next week, next month, next year will be better. Most times it isn’t.
A negative slide is tough to reverse. And with the ever-increasing number of new restaurants, it’s nearly impossible, without a major refresh/rebranding, which is in itself risky and can be expensive. Sometimes it works (Old Standard to Nixta, Nico to Salt + Smoke), but often it’s the final nail in the coffin (as was the case with Porano and Vista Ramen).
Owners can remain in denial for months (or years), until the landlord or a bank representative literally padlocks the doors. Sometimes, an owner is astute enough to see the reality and cut the losses. And sometimes the public equates a natural closure (retirement, health issues, lease expiration, etc.) with a failure, which is unfortunate.
In any case, once an owner makes the painful decision to close, there’s yet another tough decision to make: whether to announce it in advance or just, unceremoniously, shut the doors.
We saw examples of both this last week: a quick closure (Coffee Cartel) and a long, slow goodbye (Cardwells at the Plaza closing at year’s end). As indicated in this Ask George, I prefer the latter, Irish-wake scenario, which gives customers new and old an opportunity to pay a last visit or two. Bills get paid, cash gets banked. Employees can leave prematurely, but they usually don’t, because business is brisk and they know the exposure may net a job offer somewhere else. At Cardwell’s, many staffers have worked for years at the restaurant. It’s doubtful they’d abandon owner/mentor Bill Cardwell when he needs them most.
If you have a question for George, email him at [email protected]. You can also follow him on Twitter @stlmag_dining. For more from St. Louis Magazine, subscribe or follow us on Facebook, Twitter, and Instagram.
