Throwaway to avoid being identified.
I work full-time as an analyst in finance ($300bn AUM). But as a side gig, I have partnered with experienced family members and we have several restaurants in NYC - both Manhattan and Brooklyn. I lurk all over r/investing and r/entrepreneur so I thought I would give some bottoms up view to the community. As of 2 weeks ago, for the safety of our employees, we opted to close all 6 restaurant locations in both boroughs. Being a full-time analyst and witnessing the "work-from-home" circulars, I knew the inevitable was fast approaching so when one of the chefs and staff members expressed concern about commuting to work, coming face to face with customers, and general exposure to COVID-19, we understood. We have a cash position which gives us runway for roughly 8 weeks - this includes fixed expenses like rent, and for the chefs and managers - salary. We have 6 weeks left. I know for certain from other industry peers and friends in the business, that our financial position is above average - restaurants survive on cash flow, and most will go broke with no cash flow for one month.
Some of our landlords, whom we've known for decades will accommodate - a mix of reduced rent for 3 months and one guy actually giving us a stay. However, 2 locations are not budging. My assumption is they are levered with some commercial mortgage and/or are trying to keep us in check. We will be closing those 2 locations immediately and letting go of 9 staff members. Seeing California's unemployment numbers earlier today, I am uncertain how small businesses like ourselves can see through this. I am fortunate enough to work both at a macro and micro level. And this being my first real challenge in both has been a surreal experience. I hope this sheds some light on the situation on the ground for small businesses. Please text your local taco, take-out, and even barber shop. And if you are lucky enough to have a few dollars to spare, see if it can help them through this seemingly impossible time.
Submitted March 25, 2020 at 08:19PM by throwawayyyyp https://ift.tt/2WFmADb
