Archive for March, 2017

How Much Does Restaurant Furniture Cost? FAQ’s from the files of East Coast Chair & Barstool

How much does restaurant furniture cost
If you’ve ever asked “how much does restaurant furniture cost”, you probably got a somewhat unsatisfactory answer like “it depends on what you get”.  While this is certainly true – restaurant furniture can range from a few thousand dollars up to serious five figure digits – we figured that we could at least layout some common scenarios to give you an approximation of the cost to furnish your restaurant.

To keep it simple, all of these scenarios are based on a dining space of 1500 square feet with 20 tables, 8 booths, 60 chairs, and 10 bar stools.  There are 3 scenarios: a budget friendly option for a restaurant owner that wants the most economical furniture to get started, a mid-level option for a restaurant owner that wants great looking furniture at a great price, and an option for a restaurant owner that wants to create an ambiance around their furniture without breaking the bank.

Scenario 1 – Economy Furniture Cost

20 – Resin 36” x 36” Table Tops = $600

60 – Gladiator Metal Ladder Back Chairs with Vinyl Seat = $1500

10 – Gladiator Metal Ladder Back Barstools with Vinyl Seat = $500

8 – Standard Vinyl Upholstered Booths = $1500

Furniture Cost = $4100.00

 

Scenario 2 – Mid-Level Furniture Cost

20 – Solid Wood Butcher Block Tables = $2920

60 – Viktor Steel TOLIX style restaurant chairs = $3780

10 – Viktor Steel TOLIX style barstools – $710

8 – Vinyl Upholstered Restaurant Booths – $1640

Furniture Cost = $9050.00

 

Scenario 3 – Reclaimed Wood Furniture Cost

20 – Reclaimed Barnwood Tables = $4400

60 – Simon Steel Café Chairs with Reclaimed Wood Seats = $6000

10 – Simon Steel Café Barstools with Reclaimed Wood Seats = $1100

8 – Custom Reclaimed Barn Wood Booths = $4200

Furniture Cost = $15700.00

 

All of these scenarios are based on just a few of the furniture options that are commonly available at East Coast Chair & Barstool, where we sell direct to restaurants and keep costs low by cutting out the middle man.  True, you could go to a dealer or niche manufacturer and buy furniture that cost 3-5x more, but the only difference would be the price tag.

Have a question about furniture cost?  Leave a comment below and we’ll be glad to help.

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New Product Alert!- Quarter Sawn Table Tops Have Arrived

We are pleased to announce that we are adding Quarter Sawn White Oak table tops to our solid wood collection!

What makes these table tops so different from the wood tops that we currently offer? Well, it is the unique way the wood is cut called quarter sawing.Quarter sawing is a type of cut that can be done to logs when they are sawn into lumber. This style of sawing gets its name because the log is first quartered lengthwise, resulting in wedges with a right angle ending at the center of the log. Each quarter is then cut separately by sawing boards along the axis. The results of this unique cutting process is the boards take on a straight striped grain line. In addition to a different style of grain, the cut creates greater stability than flatsawn wood.

Greater stability is one of the biggest benefits of this line of wood table tops the quarter sawing process gives the wood extra strength making it less likely to contract, expand, or warp. Wood is a natural material and contains some degree of moisture. Wood can warp when its moisture content changes. Exposure to differing temperatures, as well as the humidity of the surrounding air can lead to changes in the wood.

Our table tops have a 1 ½” edge and is available in a variety of sizes both square and round. They are built by our in-house Amish craftsmen and hand stained using one of our three different stain options, Michael’s Cherry, Bourbon, and Briar. These stains were specifically created to showcase the unique grain pattern that is part of this wood’s claim to fame. Once the stain is in place we use a coat of heavy catalyzed lacquer sealer and then a coat of a 10 sheen catalyzed lacquer top coat to make sure that your table is looking its best and holding up to the rigors of commercial use.

To make these beautiful table tops yours head on over to our Quarter Sawn Wood Table Tops page and start shopping!

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How to Prepare Your Restaurant for a PR Crisis

PR Plan

Running a restaurant is a big responsibility. You have employees, vendors, and customers all counting on you to succeed. This pressure is magnified even more so when there’s an unexpected crisis thrown into the mix.

Whether it’s a health hazard or an earthquake, your restaurant needs to be prepared to deal with the fallout and snap into crisis mode. These crises happen without a moment’s notice and can be catastrophic if not dealt with correctly. So how does your restaurant begin to prepare for the unexpected?

Avoid Being the “Ostrich”:

When a crisis does strike, your restaurant needs to be fast-acting to acknowledge the issue and take the appropriate steps to work towards a solution.

The very last thing you want your organization to be facing at the height of a disaster is a media outrage because you didn’t make any sort of statement. There is no playing the ostrich here; you cannot stick your head in the sand and pretend your problems will go away. You need to be clear, succinct, and precise with your plan internally and to the public. This can be done with a crisis management agenda.

Creating this plan can help you remain calm in times of crises which, in turn, can lead to better decision-making. Every restaurant should have an agenda for managing critical situations, the size of which will depend on the size of your operation and the issue at hand.

How to Compile a Crisis Management Agenda:

  • Brainstorm the risks faced by your restaurant such as food safety, insurance liabilities, and potential disasters (before they occur).
  • Create a checklist or plan of what should happen when an emergency happens.
  • Designate a task force of individuals who will carry out the step-by-step plan.
  • Delegate tasks and information to be disseminated internally and externally of the restaurant.
  • Identify key organizations that need to be notified such as fire, police, and ambulance services.
  • Make a list of audiences that need to be informed: reporters, legal entities, insurance companies. Don’t forget how you plan to address employees and the public.

PlanThis agenda should be shared with upper level management and designated employees that are appointed in the agenda. For an effective strategy, this information can easily be spread with Google Docs. Using Google Docs can lessen paper usage and, in case of a fire, will ensure you plan stays intact.

Having a crisis management procedure in place can lessen panic and give you a roadmap for navigating the seas of this crisis.

Keep Your Emotions in Check:

It’s without a doubt that going through a crisis that puts your livelihood in jeopardy is a stressful time. It’s also a crucial time to remain level-headed throughout the crisis. By acknowledging the issues your restaurant is facing and following your crisis management agenda, you can use your team to direct your efforts appropriately, even if you’re still in shock while the situation unfolds.

Not keeping your emotions in check can cause more issues if you act on them. Instead of acting brashly, use your emotions to convey sincerity and genuine concern. Maintaining a calm and professional demeanor can not only begin to fix customer perception but also inspire a more civil view for employees.

Emotions

For example, Applebee’s had a tumultuous public relations nightmare in 2013. Long story short, Applebee’s fired a staff member for posting a negative comment that a customer had written (due to a privacy violation) and then praised another staff member through a post that also had the customer’s name. Applebee’s posted on Facebook stating the reason they had fired the first staff member, which invited many comments from followers. In the middle of the night, the Applebee’s social media team posted an update on the post, which got lost in the 17,000 comments currently on the post. The social media team began tagging the people who had commented and copy/pasting the update their comments, leading to more heckling and an additional 16,000 comments. The social media team could have waited until a reasonable hour and posted a new update, not a comment, instead of adding fuel to the fire.

Moral of the story? Think before you act impulsively.

Say Sorry and Mean It:

Apologizing is not an easy step for any business, but it is a necessary evil in trying to repair the public’s trust. While making an apology, focus on being sincere. After all, what is an apology without feeling the deepest regret about the actions that occurred? With an honest-to-goodness apology to the affected parties, a business is taking ownership of the situation and can give it credibility.

micIn making this heartfelt apology, you will also want to take timing into account. If a crisis occurs, a restaurant’s timely apology is important in keeping customers on their side. Even if your team is working behind the scenes to better the situation, it is imperative that these actions are communicated and not done in silence. The longer an apology takes, the less customers will take it seriously.

Go further for your customers and add a side of great customer service to your apology. From late 2015 to early 2016, about 40 Chipotle customers were sickened from E. coli contaminants; a tough blow to a restaurant chain that prided themselves on fresh food free of genetically-modified organisms. Making an apology statement turned advertisement in major newspapers nationwide, Chipotle founder, Steve Ells, addressed the outbreaks, apologized, and made promises of more thorough food safety standards. To bring people back into its restaurants, Chipotle launched their brief rewards program, direct mail offers, and mobile promotions to earn free burritos.

Unfortunately, the world can change at the drop of a hat: people make snap judgments, tectonic plates collide, and food is not handled with proper care. But that doesn’t mean your restaurant can’t be prepared to combat these crises when they happen. Having a plan, keeping your emotions in check, and truly apologizing are crucial elements in preparing your restaurant for a future crisis. Remember the best offense is a good defense.

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A Guide to Bar and Restaurant Insurance

There are a lot of exciting and interesting parts of the restaurant industry. While insurance probably doesn’t make your top 3 most exciting topics, that doesn’t mean that it isn’t important. Can you imagine if your business went up in flames and you didn’t have any sort of insurance to cover the losses? You could spend the rest of your days paying for a business that didn’t even exist anymore.  Certain insurances are required just to be able to open your restaurant while others are supplemental and might just be a good idea to have. We spoke with Steve Scuilli Vice President of Exchange Underwriters Inc., a man with 25+ years of experience in the insurance industry, to get you an expert opinion on what you need to know about insuring your restaurant.

Who Needs Restaurant Insurance?

Basically, all businesses in the restaurant and food industry need some sort of restaurant insurance. Bars, cafés, diners, delis, fast food restaurants, lounges, pubs, breweries, and pizza places all require some sort of insurance specifically designed for the food industry.

Do you remember Chi-Chi’s, the Mexican restaurant that is now infamous for having the largest outbreak of Hepatitis A in U.S. restaurant history? The restaurant was already suffering from bankruptcy when the cases came to light. Due to the outbreak, hundreds of people were sickened, one needed a liver transplant and four people sadly died.  Green onions from Mexico that were used to make salsa were the cause of the outbreak. The fault was with the suppliers but Chi-Chi’s was not financially stable enough and did not have enough liability insurance to meet all the claims that came out after the outbreak. Perhaps if they had enough insurance they would still be around today.

While every business in the food industry needs some form of insurance the types can vary based upon the business itself. For example, an ice cream shop and a bar with both need general liability insurance but the ice cream shop will probably not need liquor liability insurance. Some policies will be state requirements, some are just a good idea, and some form of life insurance might be required by the lending agency for the owner(s) of the business. It is important to check on your state’s requirements and to speak with your bank on what they might require.

ProTip: When deciding on calling an agency determine what is a priority for you; a low cost, a close location, or superior service. Knowing this before you start the process can help streamline your choice.

How Insurance Cost is Determined

One of the first steps when starting to look into your insurance options is to call an agency and speak with an agent. They will then proceed to ask you a series of questions or have you fill out a questionnaire about your business. Your answers to these questions are what determine the cost of the policies you are trying to acquire.

They then take these answers to an underwriter who uses them to determine your risk of exposure. Your risk of exposure is an event or state of being that can subject you to loss because of some hazard or contingency. The risk of exposure for a business often ranks the prevalence of a risk according to their probability of it occurring multiplied by the amount of money that could be lost because of the occurrence. There are different types of potential loss for each industry but for the restaurant and bar business they look at similar factors. Some of the factors the insurance companies look at include:

  • Class of business- Different classes of business have different exposure to problems such as crime, a liquor liability suit, and workers compensation.
  • Hours of operation- establishments with longer hours are at a greater risk for loss because the longer you are open the more opportunities for something to go wrong.
  • Clientele and location- Both the character of your clientele and the safety of your location can affect the exposure risk.
  • Entertainment- Any form of entertainment automatically increases the chance of loss. Establishments bring in entertainment to attract a larger crowd than they would have otherwise, which increases both sales and risk.
  • Promotions-Promotions are also meant to bring in more patrons than normal. People tend to eat and drink more during promotions which can increase the risk of exposure such as customers being overserved or damaging the building.
  • Years in operation-The failure rate for bars and restaurants can be relatively high so the longer the establishment has been in operation, the more experience the owner(s) are likely to have and the better the quote could be.
  • Owners experience in business-The more experience the better. Experienced owners are usually more responsible and know how to train their employees to minimize risk.
  • Security-Security personnel are important to have, especially in a busy bar environment.
  • Alcohol server training- it is important that bar and restaurant employees are educated on how to responsibly serve alcohol and recognize those that are intoxicated. Many companies offer a discount to restauranteurs who have their employees utilize those programs.
  • Adult entertainment-These establishments run a much higher risk of exposure than many others, fights and damage being some of the more prevalent risks.

Underwriters take all these factors and then evaluate the exposure factor each presents and then rate your businesses risk accordingly. All of these factors come with their own set of issues that will be factored into your final quote, which is how much you will need to pay to carry your policies.

Pro Tip: A big name agency might be able to offer discounts but a local agency could have the benefit of being more familiar with the laws in your state. If they are close it might be more convenient to reach them if something should happen.

Types of Insurance

General Liability- This is a type of umbrella policy, this is also the most common insurance. It covers lawsuits from non-employees that sue over injuries and some property damage.

Property Insurance- reimburses you for property loss related to fire, burglary, and some types of storms that may not be covered by your general liability insurance. Includes: building, furniture, tap systems, and glassware but may not cover floods or earthquakes.

Liquor Liability- many states require this with your liquor license and some variables may change from state to state. This protects against a liability claim as a consequence of someone getting drunk to the extent that injuries or property damages are the result.

Workers Compensation Insurance- This insurance covers medical expenses and lawsuits from employees injured on the job. This is also usually required by state law.

Automobile policy- If your business uses any type of vehicle as transportation you are going to want this policy. This covers the vehicle the same way any other car insurance would but can cover items such as food trucks, and catering vans.

Umbrella Insurance-This insurance pays for lawsuits that exceed the limits of small insurance policies. You can’t have an umbrella policy without a general liability policy. An Umbrella policy is based on what you have to lose.

Life Insurance- This is not required by law but some lenders may require it in case something should happen to the store owner their family will not be left trying to pay off any debts that may have been incurred.

Loss of Business-This insurance can cover loss of sales through a specific cause. Something like a power outage that causes a business to lose its inventory would be covered. Some of the income can be recouped but a lot of times with the cost of premiums owners can break even so you should speak to your agent about whether this plan would be beneficial for your business or not.

ProTip: Cameras are a great way to prove or fight an insurance claim. If you can afford it try to install them in your business. It is hard to dispute evidence that has been filmed. They are also great for helping to spot employee theft.

When it comes to selecting policies, after you get the ones required by the state and your lending agency, you are the one that knows your business and financial situation the best. An agency can work to guide you with different instances they have come across but ultimately it is your decision if you want any extra insurance.

When asked if there was one piece of advice he could give to customers Scuilli said that owners should take a hard look at their business and determine where their greatest risk of exposure is and be sure to cover those areas. The second was to know what you can handle financially speaking. It doesn’t make sense to sign up for insurance that you won’t be able to afford to pay on.

While selecting insurance isn’t one of the sexier aspects to being a business owner it is vitally important. Insurance can protect you and your business from a myriad of problems. Insurance may seem like a lot of money for little to no return, but it is always better to be prepared when it comes to your business.

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