The Myth

If you scroll down several blog entries ago you will see one titled , "Recessed"

A major goal of that article was to convince everyone that although our country is in the middle of an economic recession, Rovezzi's stands strong as an anchor of community business is the harsh seas that is our economy.

The ship attached to the anchor... it's getting battered to hell by the storm.

There is a saying in the food and beverage industry, "If you want to make a small fortune in the restaurant business,..start with a large fortune and wait 6 months"
I frequently use that phrase when I am approached by an enthusiastic pre-entrepenuer who is ready to throw all of hi life savings, and 401K money into opening the next new, cool, eclectic, eatery/tappas bar/raw bar/cigar bar/steak house that serves American Kobe beef that will become an instant success because all of his family and friends are going to patronize so often so there's NO WAY it could fail.
"I love to cook!...and my wife enjoys meeting people, we would make a great team, me in the kitchen and her as the manager!"
"We will only serve creative Martinis at the bar, that way we don't have to bother with purchasing all that other liquor."
"We will only serve organic produce and grass fed beef and pork."

Yes these are all actual things that have been said over the years.

I am the Executive Chef of my restaurant...Would you like to know what I did today?

Woke up to a phone call from my produce company reminding me...for the 6th time this week...that I owe them money.

Drove to the restaurant but not before stopping at the bank to withdraw cash for a food delivery. Most companies during this recession are demanding COD. They are not taking chances.

Ok, up to the office to finish the new menu...

Found out, as soon as I sat down, that a booze delivery was coming. No problem, I have enough cash...liquor companies cant take cash?...they need a bank check? OK, back to the bank.

Drove to Worcester because my assistant in the kitchen forgot to order something from the delivery that's coming. Arrive at the place to get it. Oh, they re not open Monday thru Wednesday? OK. Across town to another place.

Back to the restaurant. The delivery came but they were out of an item. Called the owner, "you don't have any?" "Nope" "But I order it every week" " ya, I know...sorry" "sorry?" "well what else do you want me to say?...I can get it to you tomorrow" "But I need it tonight!" "Ya, that doesn't really help then does it?" CLICK

Off to the store. Get back with the item. Find out that another Item was missing. "Go with what you've got!" I shout. "You ll make it through tonight"

Run home to let the dog out...you know what happens when they are cooped up all day.

Decide to take that ever help full 20 minute cat nap that really refreshes the brain. My eyes start to close. My phone rings. Its my manager telling me that the cable guy is at the restaurant to shut off the service because we are behind a month. And you guessed it....he wants cash.

Back to the restaurant to pay the guy.

Dinner is getting close to starting and the cook says that we had an extremely busy lunch so we are going to need some more boneless chicken...Of course we do. I'll go get it.

Return with chicken. The manager tells me that the soda machine is out of Co2 gas and we don't have another tank. Proceed to make 5 phone calls to track down a gas tank. Whew, the local brewery has one. I'll be right back.

Hook up tank. Back up to the office to finish the new menu. Phone rings. Its my Insurance agent. He wants to know if he can cash the check that I gave him a week ago. I asked him to hold it as long as possible.
A couple more days? I ask. Uh Oh, he says. I already cashed it. I thought you were going to say yes when I asked you.

Oh well, cross fingers....pray

Back to the menu.

Phone rings. Its my accountant. Hey did you receive some information from the IRS? he says. I think so but I didn't open it, I say.
Drive it up to me tomorrow, he says.

I slump in my chair.... This cant be good.

Yes, the IRS. The government agency that you become intimately connected to once you own a business. I have had hundreds of discussions with the agency over the past 8 years of business. But the highest concentration of talks have been in the last 2 years since closing my other two restaurants.

Oh, you didn't know? Yes its true, I had three restaurants going at the same time. I was so excited about running one very popular place that I thought I could have several. It was the biggest mistake of my life. Bigger is not better and all that was accomplished was tripling my headaches and problems and reducing the amount of profit in my pocket...all in all...A nightmare.

So as the recession was hitting I was consolidating back to one location. The first one. The best one. But you see, closing a restaurant isn't a simple thing. It comes with allot of responsibilities. And if the business was hanging on by threads at the time of closing well that just means that there will be allot of money owed to allot of different people. Most importantly....yup, the IRS.

And the Massachusetts Department of revenue.

These two agencies collect ALL kinds of taxes from you when you own a business. Taxes for things that you have NEVER heard of. You would swear that they were just making it up as they go! This cant be right! Another tax bill?!?
Well, when times are tough and you are trying to keep the business alive you start to make tough decisions. You know that you need product to serve, so you buy food. You know you need people to produce, so you pay payroll. You know you need a place in which to do this, so you pay rent and utilities. Hmmm. What's left. Oh, taxes... geez, there doesn't seem to be any money left.

Oh well, they can wait. I'm sure the Gov. isn't going to crumble because they don't have my measly little tax payment.

Cut to a week after the restaurants are closed. I'm sitting in the office of an IRS agent with my accountant. We are trying to negotiate a payment plan. A payment plan to pay off the 225 thousand dollars that is owed to the Gov. from the two failed restaurants. (just a hint in case you are ever in that position...crying doesn't get you out of it)
Okay, deal accepted. 5 thousand dollars a month till its paid. SURE, I can swing that! No problem

Across town to the Mass. Dept. of revenue to workout a payment plan. A payment plan to pay off the 50 thousand dollars owed to the State from the two failed restaurants. (again, no crying)
Okay, deal accepted. 15 hundred dollars till its paid. SURE, I can swing that!

Cut to me standing at the bar in my restaurant with statements in my hand from my food and booze companies saying that they will be accepting COD only. On the bar in front of me are the bills illustrating that the price of propane, heating oil AND electricity are going up. On the television above the bar there is a newscast. The announcer is saying that the chairman of the federal reserve has just announced that our country has been in a full on recession for months but no one wanted to admit it.

To be continued....