Saturday, June 25, 2011

When are you going to open the deli?

Ron and I were forced to manage a deli, in addition to the vending machines, when we took the location.  It had consistently lost money for the other two vendors, and the other vendor actually got a lawyer to avoid taking it. 

Sure enough, it lost money for us, too.  A lot of factors combined to make it unprofitable; basically the break/lunch structure.  When you have a lot of people, on lunch at the same time, have to walk 5 minutes each way, only 30 minutes for lunch... and let's remember they can only take a lunch or break when told. 

Not only that, the dead periods in between these breaks and lunches just destroyed any chance of profit.  We ran register tapes, and at one point it made about $3-$5 an hour, for about 5 hours a night. 

Take that, factor in payroll and you are losing money.  Add employment and sales tax, and it's a hemmorhage. 

The State of Texas got tired of taking care of the equipment, and never seeing a profit.  They shut it down 8 years ago, and took away all the equipment.  Thank you, Jesus. 

However, we still have people talking about reopening it. 

If it lost money when sales were 3x better than the present, how would it make a profit now? 

I see, again, and again, at work: Bob decides to make some money.  He's going to rent a catering truck and park it outside during lunchtime.  He does it for a few weeks, and we never see him again.  Mayra decides she's going to sell tamales.  Puts up a sign.  Brings them in and sells them.. but pretty soon she realizes she isn't making money, and stops.  The "hot plate lunch" people, too.  I don't think the last one made it 10 days.  No one wanted to pay $8 a plate for a "delicious chicken breast, two sides, and cake!" 

People persist in believing easy money is there for the taking, if some bold person will step up and take it. 

I should add, at this point, that 2 competing restaurants have opened within a block of work,.  A fried chicken place, and a donut shop.  Our donut sales are toast.  They offer hot food, and quickly. 

We also have a lot of people who buy lunches, bring them in, and resell them. 

Then I remind you that sales are 1/3 what they were, when it was closed for lack of profit. 

I try to warn them.  They don't listen.  They think the same thing Ron did, "Oh, you failed, but I won't." 

Good luck with that. 

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