CreamyGoodness
Thanks Creamy!
- Joined
- Apr 28, 2011
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Just picked up an order. Shot the shit with them for awhile. Great family. They're humble, gracious and hard working. Staple in the community.
are gofundme supposed to be a surprise?
Lots of people in the media are saying this...except for the actual business owners. All a gift certificate is going to do is push the loss further down the road. It doesn't replace lost revenue. It just shifts the revenue away from when the expense will be realized. If you're about to shut down completely, a big gift card revenue injection may be a worthy last ditch effort to save your business. But otherwise, there are better ways that customers can help and that businesses can pay their bills. Besides, I'm not buying a bunch of gift cards right now to businesses that may not be around later.
In the restaurant business where margins are tiny, a bunch of folks showing up to cash in their gift certificates when this is all over will just put them in a big financial bind then. Right now their variable costs are way down and they are running as efficiently as possible. For many restaurants, the last thing they need when finally able to open their doors again is a bunch of gift card cash-ins. Expenses will be back through the roof and there won't be much revenue coming in.
If you want to help a business with a gift card, buy it and toss it in the trash. If you really want to help a business, order takeout/delivery and tip heavily when you do.
A restaurant sent me different advice /request about gift cards. They were requesting customers to buy gift cards now. They represent a no interest loan.
If people slow roll the use of the gift cards after sit down service resumes, the restaurant will be able to handle the redemptions.
Also, if you use gift cards when the restaurant is open but business is slow, they essentially are redeeming them at around 50%. If the restaurant is open and staffed, but doesn't have many customers, the incremental cost of the next meal they serve is the cost of the food plus the energy to cook it. Food cost is about 50% of the price of the meal.
And if you use it on alcohol, even better. Cost of ingredients for a drink is way less than 50% of the price of the drink. Restaurant wine price is about three times the price of the same bottle in a wine store.
A restaurant sent me different advice /request about gift cards. They were requesting customers to buy gift cards now. They represent a no interest loan.
If people slow roll the use of the gift cards after sit down service resumes, the restaurant will be able to handle the redemptions.
About 10% of gift cards are not even redeemed, not to mention the dollars left unused on them. At worst, it is an interest free loan. At best, it is a donation to the company.
My babies r us cards are burning a hole in a drawer right now from their never-to-be-fulfilled potential
Figured they'd have a little extra put away considering how overpriced their food is. Us Townies chuckled at how they would get the Wake kids to pay $12 for an $8 sandwich. Beer prices were generally legit though and those soft chips are money.
Joking aside, I like the place and wish them the best. They are a Winston institution. One of the places I will be visiting once this is all over.
It's great bar food. They have to make a profit.
On the other hand, their steak dinner and fajitas are a great value for how they taste. Not everyone can go to Ryan's (the local one, not the buffet chain) whenever they want a steak.
Village Tavern is probably more "overpriced," imo.
plus the issue that you're describing will incentivize a "run" on the restaurant. Overall you need revenue to pay the rent and a complete elimination of expenses - otherwise you're eventually going to get GOT.
If I were the owner I'd rather take my chances of selling cards now and hope the cards are redeemed over time once back open. If you keep in mind food sales are about double the food cost a $50 card is only costing about $25 once redeemed and you'll still tip the server on the original pre-card bill ($50). And if you use the card on a bar tab only it's probably only costing about $15-$20 against true cost for the restaurant.