First Quarter 2002 Volume 4, Issue 1

A Positive Outlook For Restaurant Owners And Restaurant Buyers in 2002

FOR RESTAURANT OWNERS

• There are a lot of buyers available as a result of corporate downsizing, layoffs and life style changes.

• The current economy will probably keep inflation low which will help stabilize operating expenses.

• Operators will have more flexibility in extending their leases with their landlords at more favorable terms and conditions and renegotiating existing leases with lower rents as result of a softer real estate market and higher vacancy rates.

• The quality and quantity of prospective new employees is more favorable for employers as a result of higher unemployment.

• There are many buyers who have a lot of cash available as a result of cashing out of the stock market and/or having pension money available to them as a result of early retirement.

FOR RESTAURANT BUYERS

• Buyers will be able to negotiate more favorable premises lease terms than their predecessors as long as the real estate market remains soft and vacancies are high.

• There are many sellers that are in trouble financially and need to sell quickly.

• There are bankruptcy opportunities whereby you can buy new restaurants for 25 to 35 cents on the dollar with below market leases. (I have a couple of these listings currently).

• Buyers can time their new acquisitions to coincide with the recovery of the economy so their new projects come on line as the economy is turning around.
   

Restaurant Realty Company Sells Over 200 Restaurants, Bars And/Or Clubs Since 1996

During the 4th quarter of 2001 we sold our 200th restaurant, bar and/or club business since 1996. Our success is a result of the following:

1) Our large number of quality listings we maintain at all times.
2) Our commitment to maintaining confidentiality regarding our confidential sales.
3) Our extensive advertising and marketing program which includes:

a) newspaper advertising daily as well as in up to 10 newspapers on weekends,

b) 1000 mailings sent weekly to restaurant, bar and club operators in the Greater San Francisco Bay Area,

c) Website Marketing-we get close to 150 hits daily on our website and close to 1,000 buyers in our data base receive emails every two weeks regarding our new, featured and coming soon listings,

d) phone book advertising (we are in 14 phone books) and

e) targeted marketing campaigns to residential brokers, accountants and attorneys to find buyers and sellers.

4) Our extensive knowledge and experience in the restaurant and real estate industries.

We are committed to being the best restaurant brokerage in the area and will continue to provide the best possible service to restaurant buyers and sellers. Thanks for your continued support.
 

Restaurateurs of the Quarter - Peter And Cindy Kahl Owners Of Suppenkuche And Cafe Du Nord

It is rather unique when a husband and wife each own their own successful restaurant as is the case with Peter Kahl, who owns Suppenkuche, a fine German Restaurant in San Francisco and Cindy Kahl, who owns Cafe Du Nord, a night club with restaurant in San Francisco.

After Peter graduated from cooking school and hotel school for management and business in Germany he worked as a chef in several fine German restaurants in Berlin and elsewhere in Germany and eventually became a co-owner of Suppenkuche. Suppenkuche specializes in fine German cuisine and is located in the lower Hayes district at 525 Laguna St., San Francisco.

After several years as a bartender and food server at many different places Cindy started Cafe Du Nord, at 2170 Market St, in San Francisco. Cafe Du Nord is a high volume night club with restaurant and is best known for its live music venue. Throughout its years it was voted the best bar in SF by Rollingstone Magazine, SF Bay Guardian and SF Weekly, best jazz club by SF Bay Guardian and best bar/club by the SF Chronicle.

Peter and Cindy have recently purchased Le Bouc Restaurant plus the real estate at 2424 Lincoln Avenue in Alameda from our company and will be converting it into a fine German restaurant with full bar. It will be featuring its own homemade sausages, German beers and a full German menu. They will be serving dinner nightly from 5p to 10p and will be serving Sunday brunch from 9a to 2p. Please come and visit their fine operations for the best in German food and great music. Best wishes to them for continued success.