Restaurant
Mania
It's Getting as Old as
Many of Us
..and...
It's Time We Get it
Right !
Part Four of
Four
This is the conclusion of our Four Part series of articles pertaining to establishing yet ANOTHER, Sun City Anthem restaurant.
So how might this be done
in the right way?
Right off the bat, let's
not forget this is a BUSINESS DECISION, not one that merely involves a
tummy.
Should it be
independent?
Should be association
owned and operated?
Should it be subsidized
?
Should we have one at all
?
That is where MRS. SEDDON comes in...it's her job to research the
various options, and then disclose....
What would be the full cost to each and every Sun City Anthem unit
owner in each case !
How do you make the
owners knowledgeable in order to decide?
Our
suggestion....
...before any action is
taken, incorporate the idea Director Mayfield
suggested...
A
study as to feasibility....as long as its cost is
reasonable.
And we have an idea that
might solve that problem...
Contacting the Business
Marketing Department of the University of Las Vegas Nevada and discussing if
THEY would assist us in making that determination.
Years ago, in order to
obtain a Business Degree from the University of Illinois, a requirement was the
completion of numerous marketing courses, the last of
which incorporated...applicability to...
THE
REAL WORLD !
As part of our graduating
class, we were charged with designing a complete marketing program for a new
product that was about to be introduced to the public at that
time..
The Exercycle !
We did it all...we designed a complete marketing program that included advertising, channels of distribution, and feasibility...everything except building the machine.
The company was looking for a "fresh"
approach with "young minds" who were capable of using modern technology in order
to sell a product...
...and that technology included the use
of very primitive and
unsophisticated computers...not like we have today.
unsophisticated computers...not like we have today.
We were about to join the business
world in deep need of some sort of credibility, and we poured our efforts into a
project that was both interesting and "real".
Those young minds did a pretty good
job. The company took our study to a rather extensive degree, and eventually
based their advertising on what we had produced.
The rest is
history. Every exercise room you see today is based
on that concept of days gone by.
Now let's take the "kids of today" and
allow them to do the same...only with the greatest technological tools available
to them on a college campus.
Approach the Business Marketing
Department with an open mind and a "checkbook" donation.... to allow their
students to join the real business world...before they actually join it
!
It's time all of us faced
facts...
We, who are now well into our 60s and
70s, must accept ....
The old gray
mare...
...is an old gray mare....
That we are well into the 21st century
...
...and the time has come to "pass the
baton" just as our parents did years ago !
If the "scientific study" provides
NEGATIVE RESULTS...the answer as to the future of any restaurant would then be
evident.
CLOSE THE BOOK ON IT
ONCE AND FOR ALL
If however, the study
provides POSITIVE results for any specific option, then stage two would
allow INDEPENDENT sources from both a pro
and con stance to prepare a 100-150 word
response to the proposed general manager's position (suggestion), placing them in a packet with a ballot for a
proper referendum.
Where would those
independent sources come from?
Again...simple.
Community blogs !
Let's face facts, and cut
to the chase.
Community sponsored
publications are "boiler plate" and sadly due to being heavily "controlled" and
"manned" by "machine appointees"...are biased....and tell you what THEY WANT YOU TO KNOW.
Want
proof?
When did you ever see any
article in an official publication that brought out the waste on the last
restaurant ? Ex. the $40,000 loans or the constant rent
reductions?
When did you ever see any
article that covered any detail of spending on expensive board lunches or
private Board parties?
For that matter, when did
you ever see ANYTHING critical of ANYTHING on an official
publication?
Only
certain INDEPENDENT....non-machined controlled publications... did that, didn't
they ?
All of course with the
exception of one.....and we all know who that "con artist" is, don't
we?
Why would that
be?
And from our personal
standpoint....
WHY
ARE INDEPENDENT COMMUNITY BLOGS BANNED FROM ADVERTISING IN ANY WAY IN COMMUNITY
SPONSORED PUBLICATIONS?
(example...The Spirit Magazine)
(example...The Spirit Magazine)
...when they are by far read more than anything sent from the
association, and...the most valuable aspect...offer
differing opinions.
Add those opinions to a
General Manager's recommendation, and allow the people to vote on the
matter.
In that way, the homework
will have been completed by qualified people, full costs will have been
disclosed, various pro and con opinions will be discussed, and then the matter
will finally be decided.
...but a Board would FOLLOW THE PEOPLE, rather than the
reverse....
...especially when one
realizes that THERE IS NOT A SINGLE PERSON ON THE SUN CITY
ANTHEM BOARD who has ANY restaurant OR
self-employment experience.
Success or failure of any
proposal will ultimately depend on the acceptance of those who are being asked
to finance it....
THE UNIT OWNERS....
...as it SHOULD BE
!
But....let's never
forget.....
We have a General
Manager we pay a very hefty income to get it right !
Her income, bonuses, and
future tenure with Sun City Anthem should incorporate the result of any
suggestion she brings to the owners.
The time for guess work
is now behind us...
...and as the title of
each of our Four Part series or articles has been so aptly
titled....
Restaurant
Mania
It's Getting as Old as
Many of Us
..and...
It's Time We Get it
Right !
We urge all of you to attend the
September 27th meeting and make your views known.
It's ... that important
!
Got a comment ?
Send it to us
at:
Anthem Opinions
Administration
If this is not self managed, it is imperative that the proposed restaurateur have sufficient capital on hand for the venture.
We are not a bank!
It should not cost the HOA or residents.
We don't need a chef, we need a cook.
Simple, basic coffee shop type food for the enjoyment and convenience of the residents.
No gourmet food needed here. Enough expensive restaurants in Las Vegas.
Dick - you are absolutely correct.
In every appraisal report the Appraiser must report the "Highest and Best Use" of the land (IF it is already developed with an improvement - in our case the restaurant - the Appraiser MUST report the "Highest and Best Use" AS IF IT WERE VACANT.
"Highest and Best Use" can be defined (in layman's terms) as '...that use, from reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in the highest value'. It is basically a study of the feasibility of possible uses for the site.
Past support of a formal restaurant has proven over several attempts that it is NOT financially feasible.
Opening the restaurant to the public appears to violate the Public Offering Statement, thus it appears NOT to be a 'legal alternative use'
Any Appraiser worth his or her salt would conclude that the use of the site as a formal restaurant is NOT the Highest and Best Use because:
-past History has shown that it is NOT financially feasible, and
- because it is listed as an Amenity in our Public Offering Statement and designed for the use of RESIDENTS and their GUESTS, it may not be a legal alternative use
(to open the restaurant to the public in an attempt to make it profitable), therefore,
-based on past history the use of the space as a formal restaurant cannot be considered the "Highest and Best Use"
Dick here is a link to an article on the longevity of restaurants that I think you will find interesting.
I agree with virtually everything you have said in your 4 editorials. Things look easy when you are not in a business or situation. Sometimes when one gets there one discovers the trees really are a forest. Some of the important issues you raised are:
1) Not all residents want or will support a SCA restaurant. Previous experience show this to be a fact and not an opinion.
2) The residents who do want a restaurant have not been sufficient to financially support such a venture. There is no evidence this behavior will change.
3) The cost of running a restaurant is much higher than the salary of the manager. In addition to the costs you listed would be the cost of a host(ess) and bartender.
4) Does the facility General Manager (Sandy Seddon) have the time and energy to effectively oversee an eating establishment? What if the manager leaves or is ineffective? Who then has the day to day responsibility while the problems are solved?
5) There is no evidence to confirm a restaurant is required to maintain property values. The evidence you presented convinced me that our property values have NOT declined without a restaurant.
It is possible that if subsidizing a restaurant raised annual dues significantly, some buyers may not buy here, reducing demand and lowering property value.
My thought is those who want a restaurant should have one and should be totally responsible financially and operationally.
They could assess members, if needed, and institute minimum spend levels for members such as some clubs such as country clubs have in place.
People who want to join after the restaurant opens may have to pay an initiation fee, but if the place is successful as some think it will be, there will be a waiting line to join and costs will be spread over a larger base.
Of course laws and regulations have to be followed, but if enough residents really want an SCA restaurant, I would hope a way forward could be found.
Thanks for your reporting on the issue.